Can a Texas navigation district adopt an over-65 or disabled homestead tax freeze?

TX AG Opinion GA-0539: Can a navigation district freeze property taxes for seniors?

Plain-English summary

The Texas Constitution generally requires that taxes be equal and uniform and that property be taxed in proportion to its value. One narrow exception, article VIII, section 1-b(h), lets certain governments cap, or "freeze," the total property tax on the homesteads of people who are disabled or are 65 or older. The Calhoun County Navigation District had considered adopting a resolution to put such a tax freeze in place for property it taxes, and the county's criminal district attorney asked the Attorney General whether the district had the authority to do that under section 1-b(h).

The Attorney General said no, and the reasoning was short. Courts reading the state constitution rely heavily on its literal text and give effect to its plain language. By its terms, section 1-b(h) grants the tax-freeze power only to "a county, a city or town, or a junior college district." A navigation district is a different kind of governmental entity. It is a conservation and reclamation district created under article XVI, section 59 of the constitution, not a county, a city or town, or a junior college district, each of which has its own separate constitutional basis. Because a navigation district falls outside the specific list of entities authorized to act under section 1-b(h), that provision does not give a navigation district authority to adopt a property tax freeze for disabled or elderly homesteaders.

Currency note

This opinion was issued in 2007. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

The constitutional tax-freeze provision and the list of entities it covers may have been amended since 2007. Anyone evaluating a special district's taxing powers today should confirm the current text of article VIII, section 1-b before relying on this analysis.

Who this opinion affected (as of 2007)

Navigation districts and similar special districts: The opinion told them they could not use article VIII, section 1-b(h) to freeze property taxes for disabled or elderly homesteaders, because that provision lists only counties, cities or towns, and junior college districts.

The Calhoun County Navigation District board: The opinion answered the specific question by concluding the district lacked authority to adopt the tax-freeze resolution it had been considering under section 1-b(h).

Disabled and elderly property owners in navigation districts: The opinion meant that, as to a navigation district's own taxes, the section 1-b(h) freeze was not an available form of relief, even though it could apply to the county or city taxes on the same homestead.

Common questions

Can a Texas navigation district freeze property taxes for seniors and people with disabilities?
No, based on this opinion. The Attorney General concluded article VIII, section 1-b(h) gives that power only to counties, cities or towns, and junior college districts, and a navigation district is none of those.

Why doesn't the tax freeze apply to a navigation district?
The opinion explained that section 1-b(h) lists the specific entities that may adopt the freeze, and a navigation district, created under article XVI, section 59, is a different kind of governmental body that is not on that list.

Does this mean elderly homeowners get no tax freeze at all?
The opinion addressed only the navigation district's own authority. A county, city or town, or junior college district that taxes the same property may still adopt a freeze under section 1-b(h) for its taxes.

Background and statutory framework

Article VIII, section 1 generally requires taxation to be equal and uniform and property to be taxed in proportion to value (Tex. Const. art. VIII, § 1(a)-(b)). Article VIII, section 1-b(h) authorizes certain entities that impose an ad valorem tax to limit increases in the total tax on the homesteads of persons with disabilities or persons 65 or older, a limitation colloquially called a "tax freeze" (Tex. Const. art. VIII, § 1-b(h)). Courts interpreting the constitution rely heavily on its literal text and give effect to its plain language (Doody v. Ameriquest Mortgage Co., 49 S.W.3d 342, 344 (Tex. 2001)).

By its terms, section 1-b(h) grants the tax-freeze authority only to "a county, a city or town, or a junior college district." The Calhoun County Navigation District was created under article XVI, section 59, the conservation and reclamation district provision, by a 1953 special act with taxing authority (Tex. Const. art. XVI, § 59; Act of May 5, 1953, 53d Leg., R.S., ch. 195, §§ 1-3, 1953 Tex. Gen. Laws 535). A navigation district is not a county, a city or town, or a junior college district, each of which has its own separate constitutional foundation (Tex. Const. art. VII, § 3-b (junior college districts); art. IX, § 1 (counties); art. XI, § 4 (general law cities and towns); art. XI, § 5 (home-rule cities)). The opinion therefore concluded that section 1-b(h) does not authorize a navigation district to adopt a property tax freeze for disabled or elderly homesteaders.

Citations

Constitution:

• Tex. Const. art. VIII, § 1(a)-(b)
• Tex. Const. art. VIII, § 1-b(h)
• Tex. Const. art. XVI, § 59
• Tex. Const. art. VII, § 3-b
• Tex. Const. art. IX, § 1
• Tex. Const. art. XI, §§ 4, 5

Cases:

• Doody v. Ameriquest Mortgage Co., 49 S.W.3d 342, 344 (Tex. 2001)

Source

• Landing page: https://www.texasattorneygeneral.gov/opinions/greg-abbott/ga-0539
• Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2007/ga0539.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain - the linked PDF is authoritative.

GREG ABBOTT

April 17, 2007

The Honorable Dan W. Heard
Calhoun County Criminal District Attorney
Post Office Box 1001
Port Lavaca, Texas 77979

Opinion No. GA-0539

Re: Whether the Calhoun County Navigation District may enact a tax limitation under article VIII, section 1-b(h) of the Texas Constitution (RQ-0544-GA)

Dear Mr. Heard:

You ask whether the Calhoun County Navigation District (the "District") may enact a tax limitation under article VIII, section 1-b(h) of the Texas Constitution.

Generally, the Texas Constitution requires that taxation be "equal and uniform," and that property be "taxed in proportion to its value." TEX. CONST. art. VIII, § 1(a)-(b). Article VIII, section 1-b(h) of the Texas Constitution, however, authorizes certain governmental entities that impose an ad valorem tax to limit increases of the total amount of the tax on the homesteads of persons with disabilities or persons sixty-five years of age or older. See id. art. VIII, § 1-b(h). The limitation under that section is known colloquially as a "tax freeze." You relate that the District has considered adopting a resolution to establish a tax freeze for property taxed by the District. Brief, supra note 1, at 1.

Courts interpreting the state constitution "rely heavily on its literal text and must give effect to its plain language." Doody v. Ameriquest Mortgage Co., 49 S.W.3d 342, 344 (Tex. 2001). By its terms, article VIII, section 1-b(h) grants authority to establish a tax freeze only to "a county, a city or town, or a junior college district." See TEX. CONST. art. VIII, § 1-b(h). The District was created under article XVI, section 59 of the Texas Constitution concerning conservation and reclamation districts. See id. art. XVI, § 59; Act of May 5, 1953, 53d Leg., R.S., ch. 195, §§ 1-3, 1953 Tex. Gen. Laws 535, 535-39 (establishing Calhoun County Navigation District with taxing authority). A navigation district is not a county, city or town, or junior college district under the constitution. See TEX. CONST. art. VII, § 3-b (independent school districts and junior college districts); id. art. IX, § 1 (counties); id. art. XI, § 4 (general law cities and towns); id. art. XI, § 5 (home-rule cities). Consequently, article VIII, section 1-b(h) of the Texas Constitution does not authorize a navigation district to adopt a property tax freeze under that section for persons with disabilities or persons sixty-five years of age or older.

SUMMARY

Article VIII, section 1-b(h) of the Texas Constitution does not authorize a navigation district to adopt a property tax freeze under that section for persons with disabilities or persons sixty-five years of age or older.

Very truly yours,

GREG ABBOTT
Attorney General of Texas

KENT C. SULLIVAN
First Assistant Attorney General

ELLEN L. WITT
Deputy Attorney General for Legal Counsel

NANCY S. FULLER
Chair, Opinion Committee

William A. Hill
Assistant Attorney General, Opinion Committee