The bill proposes to increase the exemption amount for residence homesteads from ad valorem taxation by school districts from $100,000 to $140,000, contingent upon a constitutional amendment. This increase aims to provide additional state aid to school districts that may experience revenue losses due to the exemption. The bill outlines provisions for state aid for the 2023-2024, 2024-2025, and 2025-2026 school years, ensuring that districts receive support if their local revenue for debt service falls below specified thresholds. It also includes transitional measures related to the new exemption, such as adjustments in the calculation of maximum compressed rates and election timing for affected districts.

Additionally, the bill introduces amendments to the Education and Tax Codes, focusing on property tax assessments for the 2025 tax year. It mandates the commissioner to manage property detachments and annexations following the vote on the constitutional amendment and requires the chief appraiser to prepare supplemental appraisal records reflecting the changes. The bill outlines the process for provisional tax bills for the 2025 tax year, which will become final if the constitutional amendment is approved. The effective date of the bill depends on a two-thirds vote from both houses, with a fallback date of September 1, 2025, if necessary. Overall, the legislation aims to streamline property tax processes while providing clarity on the implications of the proposed changes.

Statutes affected:
Introduced: Tax Code 11.13, Education Code 11.301, Education Code 48.2543, Education Code 48.2542, Education Code 46.071, Education Code 48.2551, Education Code 48.283, Education Code 49.004, Education Code 49.154, Education Code 49.308, Tax Code 25.23, Tax Code 26.04, Tax Code 26.08, Tax Code 26.09, Tax Code 26.15, Tax Code 31.01, Tax Code 31.02 (Tax Code 11, Education Code 48, Education Code 11, Tax Code 26, Tax Code 25, Education Code 46, Education Code 49, Tax Code 31)