House Bill No. 266 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 bill amends Section 11.13 of the Tax Code by adding a new subsection (s), which stipulates that if a school district's governing body adopts this exemption, it must be at least 20% of the appraised value and is in addition to any other exemptions already provided. Additionally, the bill modifies Subsection (i) to include this new exemption among those that can be disregarded when assessing taxes pledged for debt payment.

The bill also updates Section 403.302(d) of the Government Code to include the new exemption in the definition of "taxable value," ensuring that the total dollar amount of exemptions granted under this new subsection is accounted for in the calculation of taxable property. The act is set to take effect on January 1, 2026, contingent upon the approval of a constitutional amendment by voters that authorizes this local option exemption. If the amendment is not approved, the bill will have no effect.

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