The bill proposes a local option exemption from ad valorem taxation for school districts, allowing them to exempt all or part of the appraised value of residence homesteads for certain full-time employees, including classroom teachers, school counselors, librarians, and school nurses. The governing body of a school district must adopt this exemption through official action, and it must be set at a minimum of 20 percent of the appraised value. This exemption is in addition to any other exemptions already provided under current law.

To implement this change, the bill amends Section 11.13 of the Tax Code by adding Subsection (s), which outlines the conditions for the exemption, and modifies Subsection (i) to include the new exemption in the list of exemptions that can be disregarded when assessing taxes pledged for debt payment. Additionally, the bill updates Section 403.302(d) of the Government Code to include the new exemption in the definition of "taxable value." The act is set to take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters. If the amendment is not approved, the act will have no effect.

Statutes affected:
Introduced: Tax Code 11.13 (Tax Code 11)