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. To support school districts that may experience revenue losses due to this increase, the bill outlines provisions for additional state aid during the 2023-2024 and 2024-2025 school years. This aid will be available if a district's local revenue for servicing debt falls below what would have been generated under previous laws. The bill also establishes a framework for calculating this aid and includes future provisions to ensure ongoing support for districts starting from the 2025-2026 school year.

Additionally, the bill introduces new regulations regarding the use of the additional state aid, specifying that it can only be allocated for paying the principal and interest on bonds. It amends the Education and Tax Codes to include new subsections that mandate property detachments and annexations following a vote on a related constitutional amendment, with certain provisions expiring on September 1, 2026. The bill also requires the chief appraiser to deliver a provisional appraisal roll for the 2025 tax year and outlines how school districts should calculate taxable values and tax rates, ensuring transparency in tax bills regarding their provisional status. The bill's effective date is contingent upon a two-thirds vote from both houses or will take effect on September 1, 2025, with specific provisions becoming void if the proposed constitutional amendment is not approved.

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, Tax Code 25, Education Code 48, Tax Code 26, Education Code 46, Education Code 49, Education Code 11, Tax Code 31)
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 11, Tax Code 25, Education Code 48, Tax Code 26, Education Code 46, Education Code 49, Education Code 11, Tax Code 31)
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 11, Tax Code 25, Education Code 48, Tax Code 26, Education Code 46, Education Code 49, Education Code 11, Tax Code 31)