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 legislation outlines provisions for this state aid for the 2023-2024, 2024-2025, and 2025-2026 school years, ensuring that districts are compensated for any local revenue shortfalls resulting from the increased homestead exemption. Additionally, the bill includes amendments to the Education Code, introducing new subsections that clarify the conditions for receiving this aid and establishing transitional provisions for affected districts.

Moreover, the bill introduces amendments to the Education and Tax Codes, focusing on property tax assessments and school district operations for the 2025 tax year. It requires the commissioner to manage property detachments and annexations promptly following the vote on the proposed constitutional amendment, with an expiration date of September 1, 2026. The bill also mandates that school district assessors calculate taxable values and tax rates as if the changes from S.B. 4 were in effect for the 2025 tax year, expiring on December 31, 2026. It outlines the process for issuing provisional tax bills based on the potential approval of the constitutional amendment and specifies that if the amendment is not approved, supplemental tax bills will be issued. The bill's effective date depends on a two-thirds vote from both houses or will take effect 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 (Education Code 46, Education Code 48, Tax Code 26, Tax Code 31, Tax Code 25, Tax Code 11, Education Code 49, Education Code 11)