Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.
Impact
If approved, SB3 will amend various sections of the Texas Tax Code, affecting both state aid for public education and local government revenues. The bill is expected to relieve some pressure from local districts by adjusting funding measures to account for the proposed increased exemptions. However, its successful implementation relies on the passage of a constitutional amendment proposed alongside the bill, as SB3 is contingent upon the voters' approval during an upcoming election. The implications of this legislation are significant, as it is intertwined with existing state aid calculations which could alter the financial landscape for Texas schools.
Summary
Senate Bill 3 (SB3) addresses property tax relief within the Texas public school finance system. The bill proposes a significant increase in the residential homestead exemption, raising it from $40,000 to $70,000 and tripling the exemption for seniors from $10,000 to $30,000. This legislation is designed to alleviate the financial burden on Texans concerning property taxes, particularly for homeowners and elderly individuals. The changes aim to support local school districts while ensuring that the tax reforms are beneficial to residents across Texas.
Sentiment
Overall, the sentiment surrounding SB3 appears to be largely positive among proponents who argue that it provides meaningful relief for homeowners. Various stakeholders, including the AARP and local government representatives, have publicly supported the bill, citing its potential to significantly lessen property tax expenses. However, some concerns have been raised regarding the long-term effects on local funding for education and potential complications that could arise from the associated amendments. Thus, while supporters view SB3 as a critical step towards fairer taxation, detractors highlight the complexities of ensuring sustainable funding for education.
Contention
Notable points of contention revolve around the financial viability of the amendments proposed within SB3, particularly concerning how the increased homestead exemption will impact property tax revenues and educational funding. Critics are concerned about whether the tax relief measures would result in a reduction of funds available for school districts, jeopardizing educational resources despite the immediate financial relief for property owners. The reliance on voter approval for accompanying constitutional amendments adds another layer of uncertainty, as the electorate's response to these complex financial changes remains unpredictable.
Texas Constitutional Statutes Affected
Tax Code
Chapter 26. Assessment
Section: 04
Section: 08
Section: 09
Section: 15
Section: 04
Section: 08
Section: 09
Section: 15
Section: 04
Section: 08
Section: 09
Section: 15
Chapter 31. Collections
Section: 01
Section: 02
Section: 01
Section: 02
Chapter 11. Taxable Property And Exemptions
Section: 13
Section: 13
Section: 26
Section: 13
Section: 26
Section: 13
Section: 26
Chapter 25. Local Appraisal
Section: 23
Section: 23
Education Code
Chapter 49. Options For Local Revenue Levels In Excess Of Entitlement
Section: New Section
Section: 0042
Section: 0121
Section: New Section
Section: 0042
Section: New Section
Section: 0121
Section: 0042
Chapter 48. Foundation School Program
Section: 2542
Section: 2543
Section: 2542
Section: 2543
Section: 2542
Section: 2543
Section: 2556
Chapter 11. School Districts
Section: New Section
Chapter 1. General Provisions
Section: New Section
Chapter 46. Assistance With Instructional Facilities And Payment Of Existing Debt
Identical
Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, 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 amount, and the protection of school districts against the resulting loss in local revenue.
Enabling for
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of real property for ad valorem tax purposes, to increase the amount of an 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 ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
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.
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.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.
Relating to elimination of certain property taxes for school district maintenance and operations and providing public education funding through an increase in the state sales and use tax rate.
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.
Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
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.
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.