The Texas Constitution and Matters of Money

Texans who claim that they don’t vote in constitutional amendment elections because the proposed amendments are hard to understand may have a legitimate complaint when they go to the polls on November 6.

Proposition 3 of the 16 that are proposed reads: “The constitutional amendment authorizing the legislature to provide that the maximum appraised value of a residence homestead for ad valorem taxation is limited to the lesser of the most recent market value of the residence homestead as determined by the appraisal entity of 110 percent or a greater percentage of the appraised value of the residence homestead for the preceding tax year.”

Currently the Texas Tax Code requires each appraisal office to create a plan for appraising property at least once every three years.  If three years elapse between appraisals then the maximum increase in appraised value for a residence homestead for ad valorem taxation is 30 percent 10 percent per year since the last appraisal.

Proposition 3 would authorize the Legislature to limit the maximum appraised value of a resident homestead for ad valorem tax purposes to the lesser of the most recent market value of the homestead or 110 percent or a greater percentage of the appraised value of the homestead for the preceding tax year.

Supporters say Proposition 3 would align the constitution with the intent of the 1997 Legislature which approved the 10 percent cap on increases in homestead property appraisal valuations thereby preventing sticker shock regardless of the time that had elapsed between appraisals.

Opponents claim the amendment is unnecessary because most of the large districts where property values increase more than 10 percent annually conduct yearly appraisals and the proposition would force smaller appraisal districts to reappraise property more often.  Others argue that Proposition 3 does not go far enough in protecting homeowners from large tax increases.

Proposition 4 would authorize the issuance of up to $1 billion in bonds payable from the general state revenues for maintenance improvement repair and construction projects and for the purchase of equipment for the Texas Building and Procurement Commission; Texas Parks and Wildlife;  Department of Health Services; Department of Aging and Disability Services;  School for the Blind and for the Deaf; Texas Youth Commission; Texas Historical Commission; Texas Department of Criminal Justice and the Department of Public Safety.         

Those in favor say that the bonds would be an appropriate way to stretch state dollars to pay for long-term projects.  Opponents say that Proposition 4 would give the Legislature a blank check to issue bonds for new state buildings without voters having a say on how the bonds were allocated.

More information about Propositions 3 and 4 is available on the Texas Legislative Council Web site:  http://www.capitol.state.tx.uswww.tlc.state.tx.us.  Click on “Publication” and then on “Constitutional Amendments.”  Another analysis is available on the House of Representatives Web site: www.house.state.tx.us.  Click on “Constitutional Amendments Proposed for November 2007 Ballot.”

This is the second in a series on the 16 constitutional amendments.  In order to be on the November ballot each of the 16 proposed amendments was adopted by at least a two-thirds vote of both the Texas Senate and the Texas House of Representatives.  I encourage you to access the Web sites for a complete analysis of each proposition.