The bill, H.B. No. 1153, aims to modify the public school finance system in Texas by adjusting the calculation of property values to account for optional homestead exemptions. Specifically, it amends Section 403.302(d) of the Government Code to redefine "taxable value" by removing the provision that previously deducted one-half of the total dollar amount of certain residence homestead exemptions. Additionally, it repeals Section 48.259 of the Education Code, which may have previously governed aspects of school funding related to property values.

The bill also establishes that the changes will only apply to school district property value studies conducted for tax years beginning on or after January 1, 2026, and it sets an effective date of September 1, 2025, for the new provisions. This legislative change is intended to ensure that the funding allocated to school districts more accurately reflects the financial impact of homestead exemptions on property values, thereby potentially improving the equity of school funding across districts.

Statutes affected:
Introduced: Education Code 7.062, Education Code 11.35 (Education Code 11, Education Code 7)