S.B. No. 4 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 change will take effect for ad valorem tax years beginning on or after January 1, 2025. The bill also provides for additional state aid to school districts that may experience revenue losses due to this increased exemption, specifically for the 2023-2024 and 2024-2025 school years. Districts will receive state aid if their local revenue for servicing debt falls below what would have been available under previous laws. The additional state aid is designated for paying the principal and interest on bonds.

Furthermore, the bill amends various sections of the Education and Tax Codes to implement these changes, including requiring the chief appraiser to deliver a provisional appraisal roll for the 2025 tax year. Tax bills for that year will be provisional until the constitutional amendment vote results are confirmed. Several provisions, including those related to the provisional appraisal roll and tax rate calculations, will expire on December 31, 2026. If the constitutional amendment is not approved, supplemental tax bills will be issued to reflect the differences in tax amounts. The bill's effective date depends on a two-thirds vote from both houses or will default to September 1, 2025, if that threshold is not met.

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 26, Education Code 46, Tax Code 31, Tax Code 11, Education Code 48, Education Code 49, Education Code 11, Tax Code 25)
Senate Committee Report: 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 26, Education Code 46, Tax Code 31, Tax Code 11, Education Code 48, Education Code 49, Education Code 11, Tax Code 25)
Engrossed: Tax Code 11.13, Education Code 11.301, Education Code 48.2543, 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 26.01, 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 26, Education Code 46, Tax Code 31, Tax Code 11, Education Code 48, Education Code 49, Education Code 11, Tax Code 25)
House Committee Report: Tax Code 11.13, Education Code 11.301, Education Code 48.2543, 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 26.01, 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 26, Education Code 46, Tax Code 31, Tax Code 11, Education Code 48, Education Code 49, Education Code 11, Tax Code 25)
Enrolled: Tax Code 11.13, Education Code 11.301, Education Code 48.2543, 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 26.01, 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 26, Education Code 46, Tax Code 31, Tax Code 11, Education Code 48, Education Code 49, Education Code 11, Tax Code 25)