S.B. No. 1
AN ACT
relating to an increase in the amount of the exemption of residence
homesteads from ad valorem taxation by a school district and the
protection of school districts against the resulting loss in local
revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.13(b), Tax Code, is amended to read as
follows:
(b) An adult is entitled to exemption from taxation by a
school district of $40,000 [$25,000] of the appraised value of the
adult's residence homestead, except that only $5,000 of the
exemption applies to an entity operating under former Chapter 17,
18, 25, 26, 27, or 28, Education Code, as those chapters existed on
May 1, 1995, as permitted by Section 11.301, Education Code.
SECTION 2. Section 46.071, Education Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsections
(a-1), (b-1), and (c-1) to read as follows:
(a) Beginning with the 2015-2016 school year and continuing
through the 2021-2022 school year, a school district is entitled to
additional state aid under this subchapter to the extent that state
and local revenue used to service debt eligible under this chapter
is less than the state and local revenue that would have been
available to the district under this chapter as it existed on
September 1, 2015, if the increase in the residence homestead
exemption under Section 1-b(c), Article VIII, Texas Constitution,
and the additional limitation on tax increases under Section 1-b(d)
of that article as proposed by S.J.R. 1, 84th Legislature, Regular
Session, 2015, had not occurred.
(a-1) Beginning with the 2022-2023 school year, a school
district is entitled to additional state aid under this subchapter
to the extent that state and local revenue used to service debt
eligible under this chapter is less than the state and local revenue
that would have been available to the district under this chapter as
it existed on September 1, 2021, if any increase in the residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, as proposed by the 87th Legislature, 3rd Called
Session, 2021, had not occurred.
(b) Subject to Subsections (c), (d), and (e) [(c)-(e)],
additional state aid under this section through the 2021-2022
school year is equal to the amount by which the loss of local
interest and sinking revenue for debt service attributable to the
increase in the residence homestead exemption under Section 1-b(c),
Article VIII, Texas Constitution, and the additional limitation on
tax increases under Section 1-b(d) of that article as proposed by
S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
a gain in state aid under this chapter.
(b-1) Subject to Subsections (c-1), (d), and (e),
additional state aid under this section beginning with the
2022-2023 school year is equal to the amount by which the loss of
local interest and sinking revenue for debt service attributable to
any increase in the residence homestead exemption under Section
1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
Legislature, 3rd Called Session, 2021, is not offset by a gain in
state aid under this chapter.
(c) For the purpose of determining state aid under
Subsections (a) and (b) [this section], local interest and sinking
revenue for debt service is limited to revenue required to service
debt eligible under this chapter as of September 1, 2015, including
refunding of that debt, subject to Section 46.061. The limitation
imposed by Section 46.034(a) does not apply for the purpose of
determining state aid under this section.
(c-1) For the purpose of determining state aid under
Subsections (a-1) and (b-1), local interest and sinking revenue for
debt service is limited to revenue required to service debt
eligible under this chapter as of September 1, 2021, including
refunding of that debt, subject to Section 46.061. The limitation
imposed by Section 46.034(a) does not apply for the purpose of
determining state aid under this section.
SECTION 3. Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.2543 to read as follows:
Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
(a) Beginning with the 2022-2023 school year, a school district is
entitled to additional state aid to the extent that state and local
revenue under this chapter and Chapter 49 is less than the state and
local revenue that would have been available to the district under
this chapter and Chapter 49 as those chapters existed on September
1, 2021, if any increase in the residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, as proposed by
the 87th Legislature, 3rd Called Session, 2021, had not occurred.
(b) The lesser of the school district's currently adopted
maintenance and operations tax rate or the adopted maintenance and
operations tax rate for the 2021 tax year is used for the purpose of
determining additional state aid under Subsection (a).
SECTION 4. The comptroller of public accounts may adopt
rules for the purpose of implementing and administering the changes
in law made by this Act, including rules relating to the form of
certain information required to be provided by tax officials and
the date on which the information must be provided.
SECTION 5. Section 11.13, Tax Code, as amended by this Act,
applies beginning with the 2022 tax year.
SECTION 6. (a) Except as provided by Subsection (b) of this
section:
(1) this Act takes effect on the date on which the
constitutional amendment proposed by the 87th Legislature, 3rd
Called Session, 2021, increasing the amount of the residence
homestead exemption from ad valorem taxation for public school
purposes is approved by the voters; and
(2) if that amendment is not approved by the voters,
this Act has no effect.
(b) Section 4 of this Act takes effect immediately if this
Act receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, Section 4 of this Act takes effect on the 91st day after the
last day of the legislative session.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1 passed the Senate on
September 22, 2021, by the following vote: Yeas 30, Nays 1;
October 15, 2021, Senate refused to concur in House amendments and
requested appointment of Conference Committee; October 15, 2021,
House granted request of the Senate; October 18, 2021, Senate
adopted Conference Committee Report by the following
vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1 passed the House, with
amendments, on October 15, 2021, by the following vote: Yeas 140,
Nays 4, one present not voting; October 15, 2021, House granted
request of the Senate for appointment of Conference Committee;
October 18, 2021, House adopted Conference Committee Report by the
following vote: Yeas 146, Nays 0, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor