Texas 2025 - 89th Regular

Texas House Bill HB378

Filed

11/12/24

Out of House Committee

Voted on by House

Out of Senate Committee

Voted on by Senate

Governor Action

Bill Becomes Law

Caption

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.

Impact

The implementation of HB 378 is set for January 1, 2026, provided the necessary constitutional amendment passes. The bill introduces provisions for additional state aid to school districts to mitigate the impact of lost local revenue resulting from the increased homestead exemption. It allows districts to receive state aid if the local revenue designated for servicing educational debt declines due to the exemption increase, effectively creating a safety net for school funding amid anticipated financial shifts.

Summary

House Bill 378 proposes to increase the exemption amount of residence homesteads from ad valorem taxation by school districts in Texas, raising the exemption from $100,000 to $200,000. This bill aims to lessen the tax burden on homeowners and provide greater financial relief, particularly benefiting those living in areas with escalating property values. The increase is contingent upon the approval of a constitutional amendment by the voters, emphasizing the bill's alignment with broader fiscal policies aimed at homeownership support.

Contention

While HB 378 is largely framed as a positive legislative step towards aiding homeowners, it also raises notable points of contention regarding the fiscal stability of school districts. Critics may argue that increased exemptions will lead to significant revenue losses for local education systems, potentially undermining their ability to deliver quality public education. The bill seeks to address these concerns through state aid, but the reliance on state funding could lead to debates about long-term financial sustainability and equity in educational funding across different regions.

Texas Constitutional Statutes Affected

Tax Code

Chapter 11. Taxable Property And Exemptions
- Section: 13

Education Code

Chapter 46. Assistance With Instructional Facilities And Payment Of Existing Debt
- Section: 071

Latest TX HB378 Activity

View All Events: TX 2025 - 89th Regular HB378

Companion Bills

TX HJR55

Enabling for Proposing a constitutional amendment to increase the amount of the exemption of residence homesteads from ad valorem taxation by a school district.

Previously Filed As

TX HB5046

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.

TX HB3205

TX HB2467

TX HB2656

TX HB610

Relating to a temporary increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, a temporary reduction in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect the increased exemption amount, and a temporary protection of school districts against the resulting temporary loss in local revenue.

TX HB5042

Relating to an adjustment of the 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 the most recent 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.

TX SB1

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.

TX HB4029

Relating to an exemption from ad valorem taxation by a school district of a dollar amount or a percentage, whichever is greater, of the appraised value of a residence homestead, an adjustment of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a person who is elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.

TX HB58

TX HB2303

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, a reduction of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of an elderly or disabled person to reflect the increased exemption amount, and the protection of school districts against the resulting loss in local revenue.