S.B. No. 23 proposes a significant increase in the ad valorem tax exemption for the residence homestead of elderly or disabled individuals, raising the exemption from $10,000 to $60,000, contingent upon a constitutional amendment. This change is designed to provide enhanced financial relief to these vulnerable groups. To mitigate potential revenue losses for school districts resulting from this increased exemption, the bill includes provisions for additional state aid to ensure that local revenue shortfalls do not adversely affect school funding.

The bill also introduces amendments to the Tax Code and Education Code, detailing the calculation of state aid for the upcoming school years and establishing procedures for the appraisal and taxation processes in light of the new exemption. Key provisions require the chief appraiser to deliver a provisional appraisal roll to school district assessors, which will incorporate the new legal changes. Additionally, the bill outlines the process for calculating and issuing tax bills for the 2025 tax year, including provisions for provisional tax bills that will be finalized based on the approval of the constitutional amendment. The act is set to take effect immediately upon a two-thirds vote or on September 1, 2025, if not passed.

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