The bill, S.B. No. 634, seeks to amend the Texas Tax Code to grant the governing bodies of taxing units the authority to adopt exemptions from ad valorem taxation for a specified dollar amount of the appraised value of an individual's residence homestead. The new subsection (n-2) allows these governing bodies to implement such exemptions, which must be adopted before July 1 of the tax year in which they apply, and mandates that the exemption amount cannot be less than $5,000. Additionally, individuals can receive this exemption alongside any other exemptions provided under the same section. The bill also modifies existing provisions to include this new exemption in various contexts, such as school district tax rates and funding calculations.

Furthermore, the bill includes several amendments to the Education Code and Government Code, specifically addressing how residence homestead exemptions are factored into taxable values and funding for school districts. It clarifies that exemptions under the new subsection (n-2) will be treated similarly to existing exemptions in terms of their impact on taxable property values. The bill 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 bill will have no effect.

Statutes affected:
Introduced: Tax Code 11.13, Education Code 45.006, Education Code 48.259, Tax Code 11.35 (Education Code 48, Tax Code 11, Education Code 45)