Texas 2025 - 89th Regular

Texas House Bill HB378 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R2444 LHC/MM-D
2	2	By: Morales of Harris H.B. No. 378
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to an increase in the amount of the exemption of residence
10	10	homesteads from ad valorem taxation by a school district and the
11	11	protection of school districts against the resulting loss in local
12	12	revenue.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 11.13(b), Tax Code, is amended to read as
15	15	follows:
16	16	(b) An adult is entitled to exemption from taxation by a
17	17	school district of $200,000 [$100,000] of the appraised value of
18	18	the adult's residence homestead, except that only $5,000 of the
19	19	exemption applies to an entity operating under former Chapter 17,
20	20	18, 25, 26, 27, or 28, Education Code, as those chapters existed on
21	21	May 1, 1995, as permitted by Section 11.301, Education Code.
22	22	SECTION 2. Section 46.071, Education Code, is amended by
23	23	adding Subsection (a-3) and amending Subsections (b-2) and (c-2) to
24	24	read as follows:
25	25	(a-3) Beginning with the 2026-2027 school year, in addition
26	26	to state aid a school district is entitled to under Subsection
27	27	(a-2), a school district is also entitled to additional state aid
28	28	under this subchapter to the extent that state and local revenue
29	29	used to service debt eligible under this chapter is less than the
30	30	state and local revenue that would have been available to the
31	31	district under this chapter as it existed on September 1, 2025, if
32	32	any increase in the residence homestead exemption under Section
33	33	1-b(c), Article VIII, Texas Constitution, as proposed by the 89th
34	34	Legislature, Regular Session, 2025, had not occurred.
35	35	(b-2) Subject to Subsections (c-2), (d), and (e),
36	36	additional state aid under this section beginning with the
37	37	2023-2024 school year is equal to the amount by which the loss of
38	38	local interest and sinking revenue for debt service attributable to
39	39	any increase in a residence homestead exemption under Section
40	40	1-b(c), Article VIII, Texas Constitution, and any additional
41	41	limitation on tax increases under Section 1-b(d) of that article as
42	42	proposed by the 88th Legislature, 2nd Called Session, 2023, and any
43	43	increase in the residence homestead exemption under Section 1-b(c),
44	44	Article VIII, Texas Constitution, as proposed by the 89th
45	45	Legislature, Regular Session, 2025, is not offset by a gain in state
46	46	aid under this chapter.
47	47	(c-2) For the purpose of determining state aid under
48	48	Subsection [Subsections] (a-2) or (a-3) [and (b-2)], local interest
49	49	and sinking revenue for debt service is limited to revenue required
50	50	to service debt eligible under this chapter as of September 1, 2023,
51	51	or as of September 1, 2025, respectively, or authorized by the
52	52	voters but not yet issued as of September 1, 2023, or as of
53	53	September 1, 2025, respectively, that later becomes eligible under
54	54	this chapter, including refunding of the applicable [that] debt,
55	55	subject to Section 46.061. The limitation imposed by Section
56	56	46.034(a) does not apply for the purpose of determining state aid
57	57	under Subsection (a-2) or (a-3) [this section].
58	58	SECTION 3. Section 48.2543, Education Code, is amended by
59	59	adding Subsection (a-2) and amending Subsection (b) to read as
60	60	follows:
61	61	(a-2) Beginning with the 2026-2027 school year, in addition
62	62	to state aid a school district is entitled to under Subsection
63	63	(a-1), a school district is entitled to additional state aid to the
64	64	extent that state and local revenue under this chapter and Chapter
65	65	49 is less than the state and local revenue that would have been
66	66	available to the district under this chapter and Chapter 49 as those
67	67	chapters existed on September 1, 2025, if any increase in the
68	68	residence homestead exemption under Section 1-b(c), Article VIII,
69	69	Texas Constitution, as proposed by the 89th Legislature, Regular
70	70	Session, 2025, had not occurred.
71	71	(b) The lesser of the school district's currently adopted
72	72	maintenance and operations tax rate or the adopted maintenance and
73	73	operations tax rate for:
74	74	(1) the 2021 tax year is used for the purpose of
75	75	determining additional state aid under Subsection (a); [and]
76	76	(2) the 2022 tax year is used for the purpose of
77	77	determining additional state aid under Subsection (a-1); and
78	78	(3) the 2025 tax year is used for the purpose of
79	79	determining additional state aid under Subsection (a-2).
80	80	SECTION 4. Section 11.13, Tax Code, as amended by this Act,
81	81	applies only to an ad valorem tax year that begins on or after
82	82	January 1, 2026.
83	83	SECTION 5. This Act takes effect January 1, 2026, but only
84	84	if the constitutional amendment proposed by the 89th Legislature,
85	85	Regular Session, 2025, to increase the amount of the exemption of
86	86	residence homesteads from ad valorem taxation by a school district
87	87	is approved by the voters. If that amendment is not approved by the
88	88	voters, this Act has no effect.