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 an exemption 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. The bill stipulates that the minimum amount of the exemption cannot be less than $5,000 and that individuals can receive this exemption in addition to any other exemptions available under the law.

Additionally, the bill modifies existing provisions in the Education Code and Government Code to incorporate the new exemption (n-2) alongside the previously established exemptions. It specifies that the governing bodies of school districts can set the amount of the exemption before adopting their tax rate for the year, and it outlines how these exemptions will be factored into the calculation of taxable value for school funding purposes. The bill is set to take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters.

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