The bill, H.B. No. 152, 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 is related to the allocation of excess funds for school districts. The bill also establishes that the new provisions will apply to property value studies conducted for tax years beginning on or after January 1, 2026.

Furthermore, the bill stipulates that if the commissioner of education certifies that the appropriated funds exceed the amount entitled to school districts, up to $20 million of the excess can be used for grants, prioritizing this use over other provisions in Chapter 48. The changes are set to take effect on September 1, 2025, allowing for a transition period before the new funding calculations are implemented.

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