TX
Texas Senate Bill SB1

Texas 2023 - 88th 1st C.S.

Texas Senate Bill SB1

Filed
5/30/23  
Out of Senate Committee
5/30/23  
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression, an increase in the amount of certain exemptions from ad valorem taxation by a school district applicable to residence homesteads, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amounts, and the protection of school districts against the resulting loss in local revenue.

Impact

The enactment of SB1 is poised to have substantial implications for property taxation within Texas. By lowering the maximum compressed tax rate, it allows for diminished tax burdens on homeowners while ensuring that school districts receive additional state aid to mitigate revenue losses stemming from these reforms. Such a structure aims to maintain the financial viability of school districts even as tax burdens are reduced. Additionally, the bill introduces adjustments to existing laws that safeguard the elderly and disabled, allowing for tax limitations that specifically address their needs.

Summary

Senate Bill 1, introduced by Senator Bettencourt, focuses on providing property tax relief by adjusting the taxation framework for school districts. The bill specifically aims to reduce the maximum compressed tax rate for school districts and provide additional state aid to those districts impacted by this tax compression. Furthermore, it proposes an increase in exemptions from ad valorem taxation applicable to residence homesteads and creates safeguards for school districts to compensate for potential losses in local revenue due to these tax reductions. The expectation set forth by the bill indicates a significant anticipated savings of $17.6 billion for Texas taxpayers on property tax bills.

Sentiment

The sentiment surrounding SB1 appears to be largely positive among its supporters, which include many legislators and stakeholders advocating for taxpayer relief. The bill's supporters view it as a proactive step towards alleviating financial pressures on homeowners while ensuring continued support for public education funding. Conversely, skepticism may arise among opponents who might view the potential reductions in local revenue as harmful to the adequate funding of school systems, particularly in lower-income districts that may rely heavily on property taxes.

Contention

While SB1 enjoys broad support, concerns may arise regarding its impact on local governance and the capacity of school districts to meet funding needs in light of reduced property tax revenues. Opponents may argue that state guarantees of financial stability for school districts may not fully compensate for loss of local revenues, creating disparities in educational funding across different regions. The debate on whether the tax relief outweighs potential long-term impacts on school district finances will likely be a point of contention as the bill progresses.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 31. Collections
    • Section: 02
    • Section: 01
    • Section: 02
  • Chapter 11. Taxable Property And Exemptions
    • Section: 26
    • Section: 13
    • Section: 26
  • Chapter 26. Assessment
    • Section: 06
    • Section: 09
    • Section: 04
    • Section: 08
    • Section: 09
    • Section: 15

Education Code

  • Chapter 48. Foundation School Program
    • Section: 2555
    • Section: 283
    • Section: 2555
  • Chapter 49. Options For Local Revenue Levels In Excess Of Entitlement
    • Section: 0121
    • Section: New Section
    • Section: 0042
    • Section: 0121
    • Section: New Section
  • Chapter 26. Parental Rights And Responsibilities
    • Section: New Section
  • Chapter 25. Admission, Transfer, And Attendance
    • Section: New Section

Government Code

  • Chapter 403. Comptroller Of Public Accounts
    • Section: 302
    • Section: 302

Latest SB1 Activity

Companion Bills

TX SJR1

Enabling for Proposing a constitutional amendment to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads, to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts, and to except certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.

TX SJR1

Enabling for Proposing a constitutional amendment to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads, to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts, and to except certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.

Similar Bills

TX SB1

Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.

TX SB26

Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.

TX HB62

Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.

TX SB3

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.

TX SB12

Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate.

TX SB12

Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate and to the protection of school districts against the resulting loss in local revenue.

TX HB11

Relating to the reduction of the amount of a limitation on the total amount of ad valorem taxes that may be imposed by a school district on the residence homestead of an individual who is elderly or disabled to reflect any reduction from the preceding tax year in the district's maximum compressed rate and to the protection of school districts against the resulting loss in local revenue.

TX SB2

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.