S.B. No. 23 proposes a significant increase in the exemption from ad valorem taxation for school districts on the appraised value of the residence homestead for elderly or disabled individuals, raising the exemption amount from $10,000 to $60,000. The bill amends Section 11.13(c) of the Tax Code and introduces provisions for additional state aid to school districts that may face revenue losses due to this increased exemption. This aid is contingent upon the approval of a constitutional amendment proposed by the 89th Legislature. Furthermore, the bill outlines amendments to the Education Code to ensure that state aid calculations consider local revenue levels and the impact of the new homestead exemption, providing a framework for compensation for the 2023-2024, 2024-2025, and 2025-2026 school years.

Additionally, the bill includes amendments to the Tax Code that address the appraisal and taxation processes for school districts in light of the changes enacted by S.B. 23. It requires the chief appraiser to deliver a provisional appraisal roll to the school district assessor, reflecting the new legal changes, and mandates that any supplemental appraisal rolls or corrections made before the effective date of Article 1 of S.B. 23 must include these provisional entries. The bill also specifies that the school district assessor must calculate the total taxable value of property and the no-new-revenue tax rate for the 2025 tax year as if the changes were already in effect. Tax bills for that year will be provisional until the outcome of the related constitutional amendment election, with provisions set to expire on December 31, 2026, unless otherwise specified.

Statutes affected:
Introduced: Tax Code 11.13, Education Code 46.071, Education Code 48.2543, Education Code 48.2551, 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 (Education Code 46, Tax Code 31, Tax Code 26, Education Code 49, Tax Code 11, Education Code 48)
Senate Committee Report: Tax Code 11.13, Education Code 46.071, Education Code 48.2543, Education Code 48.2551, 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 (Education Code 46, Tax Code 31, Tax Code 26, Education Code 49, Tax Code 11, Education Code 48)
Engrossed: Tax Code 11.13, Education Code 46.071, Education Code 48.2543, Education Code 48.2551, 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 (Education Code 46, Tax Code 31, Tax Code 26, Education Code 49, Tax Code 11, Education Code 48)
House Committee Report: Tax Code 11.13, Education Code 46.071, Education Code 48.2543, Education Code 48.2551, 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 (Education Code 46, Tax Code 31, Tax Code 26, Education Code 49, Tax Code 11, Education Code 48)
Enrolled: Tax Code 11.13, Education Code 46.071, Education Code 48.2543, Education Code 48.2551, 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 (Education Code 46, Tax Code 31, Tax Code 26, Education Code 49, Tax Code 11, Education Code 48)