H.B. No. 378 proposes an increase in the exemption amount for residence homesteads from ad valorem taxation by school districts, raising the exemption from $100,000 to $200,000. This change is intended to provide greater financial relief to homeowners. Additionally, the bill includes provisions to protect school districts from revenue losses resulting from this increased exemption. Specifically, it establishes that beginning with the 2026-2027 school year, school districts will receive additional state aid if their local revenue for servicing debt falls below the levels that would have been available prior to the exemption increase.

The bill also amends various sections of the Tax Code and Education Code to ensure that school districts are compensated for any loss in local interest and sinking revenue due to the increased exemption. It specifies that the additional state aid will be calculated based on the difference between current revenue and what would have been available under previous laws. The provisions of this act will only take effect if the proposed constitutional amendment to increase the exemption is approved by voters, with the effective date set for January 1, 2026.

Statutes affected:
Introduced: Tax Code 11.13, Education Code 11.301, Education Code 48.2543 (Education Code 48, Education Code 11, Tax Code 11)