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 and is designed to support school districts during the 2023-2024, 2024-2025, and 2025-2026 school years and beyond.

Furthermore, the bill includes amendments to the Education Code that establish criteria for determining state aid based on local revenue levels and the impact of the increased homestead exemption. It outlines the process for calculating maximum compressed rates for school districts and includes transitional provisions for districts needing to adjust their local revenue levels. The legislation also mandates the chief appraiser to deliver a provisional appraisal roll to the school district assessor, ensuring that the appraisal and taxation processes reflect the new legal framework. Provisional tax bills will inform taxpayers of potential tax changes, and various provisions will expire on December 31, 2026, with the act taking effect immediately upon a two-thirds vote or on September 1, 2025, if not.

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