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  89R18111 CJC-F     By: Phelan H.J.R. No. 202       A JOINT RESOLUTION   proposing a constitutional amendment to provide for an exemption   from ad valorem taxation of the total market value of real property   on which the ad valorem taxes have been prepaid and to establish the   prepaid property tax trust fund to provide annual distributions to   political subdivisions affected by the exemption.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Article III, Texas Constitution, is amended by   adding Section 49-s to read as follows:           Sec.   49-s.     (a) The prepaid property tax trust fund is   established as a trust fund outside the state treasury to be held   and administered by the comptroller of public accounts as trustee   for eligible political subdivisions.           (b)     The fund consists of prepayments of ad valorem taxes on   real property received by the comptroller for the purpose of   exempting the real property from ad valorem taxation under a   general law authorized by Section 1-z, Article VIII, of this   constitution.           (c)     The comptroller shall make annual disbursements from   the fund to eligible political subdivisions. A political   subdivision is eligible for a disbursement from the fund in any year   in which real property subject to ad valorem taxation by the   political subdivision receives an exemption under a general law   authorized by Section 1-z, Article VIII, of this constitution.           (d)     The comptroller shall determine the amount available   for distribution from the fund each year in accordance with a   distribution policy adopted by the comptroller that is designed to   provide as nearly as practicable an annual distribution from the   fund to each eligible political subdivision in an amount equal to a   reimbursement amount determined by the comptroller in the manner   provided by general law. The comptroller may proportionally reduce   the distributions made from the fund in any year to prevent the fund   from becoming insolvent.           (e)     In managing the assets of the fund the comptroller may   acquire, exchange, sell, supervise, manage, or retain any kind of   investment that a prudent investor, exercising reasonable care,   skill, and caution, would acquire or retain in light of the   purposes, terms, distribution requirements, and other   circumstances of the fund then prevailing, taking into   consideration the investment of all the assets of the fund rather   than a single investment.          SECTION 2.  Article VIII, Texas Constitution, is amended by   adding Section 1-z to read as follows:           Sec.   1-z.     The legislature by general law may exempt from ad   valorem taxation by a political subdivision the total market value   of real property for which the property owner prepays an estimate of   the property's future ad valorem tax liability, as determined   pursuant to a formula adopted by the comptroller of public   accounts. The general law may require additional prepayments to   exempt any portion of the value of the property attributable to   improvements made after the initial prepayment of taxes on the   property. A general law adopted under this section may provide   additional eligibility requirements for the exemption.          SECTION 3.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 4, 2025.     The ballot shall be printed to permit voting for or against the   proposition: "The constitutional amendment to provide for an   exemption from ad valorem taxation of the total market value of real   property on which the ad valorem taxes have been prepaid and to   establish the prepaid property tax trust fund to provide annual   distributions to political subdivisions affected by the   exemption."