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 additional state aid to school districts that may experience revenue losses due to the increased exemption, ensuring that for the 2023-2024 and 2024-2025 school years, districts will receive state aid if their revenue for servicing debt falls below what would have been available under previous laws. Furthermore, the bill establishes that this state aid can only be used for paying the principal and interest on bonds related to the aid received.

In addition to the exemption increase, the bill amends various sections of the Education and Tax Codes to implement changes related to property tax assessments and school district operations for the 2025 tax year. It introduces new regulations for provisional appraisal rolls and tax calculations, requiring chief appraisers to deliver provisional appraisal rolls reflecting the anticipated changes. The bill also mandates the issuance of provisional tax bills to inform property owners of potential tax changes, with supplemental tax bills to be issued if the proposed constitutional amendment is not approved. These provisions are temporary and set to expire on December 31, 2026, with the act taking effect immediately upon a two-thirds vote or on 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 11, Education Code 46, Education Code 11, Education Code 49, Tax Code 25, Tax Code 26, Tax Code 31, Education Code 48)
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, Education Code 46, Education Code 11, Education Code 49, Tax Code 25, Tax Code 26, Tax Code 31, Education Code 48)
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, Education Code 46, Education Code 11, Education Code 49, Tax Code 25, Tax Code 26, Tax Code 31, Education Code 48)
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 11, Education Code 46, Education Code 11, Education Code 49, Tax Code 25, Tax Code 26, Tax Code 31, Education Code 48)
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 11, Education Code 46, Education Code 11, Education Code 49, Tax Code 25, Tax Code 26, Tax Code 31, Education Code 48)