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, and applicable to tax years starting January 1, 2025. It also includes provisions for additional state aid to school districts that may face revenue losses due to this increased exemption, establishing criteria to determine the aid based on the difference in local revenue available for debt service before and after the exemption increase. The bill aims to protect school districts from potential revenue losses while providing tax relief to homeowners.

In addition to the exemption increase, the bill introduces various amendments to the Education Code, including provisions for calculating maximum compressed rates and additional state aid for districts affected by tax rate compression. It mandates that school district appraisers prepare supplemental appraisal records and calculate taxable values as if prior legislative changes were in effect for the 2025 tax year, with specific expiration dates for these provisions. The bill also outlines the process for calculating and issuing provisional tax bills for the 2025 tax year, which will become final if the constitutional amendment is approved. The effective date of the bill is contingent on a two-thirds vote from both houses or will take effect on September 1, 2025, if 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 31, Education Code 11, Tax Code 11, Tax Code 26, Education Code 46, Education Code 49, Tax Code 25, Education Code 48)