TX
Texas Senate Bill SB1129

Texas 2025 - 89th Regular

Texas Senate Bill SB1129

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to a credit against required recapture payments for school districts for the cost of optional residence homestead exemptions under the public school finance system.

Impact

If implemented, SB1129 would effectively reduce the financial burden on school districts that provide residential property tax exemptions. The bill establishes that the amount a district must pay under the existing recapture framework will be lowered by the value of the exemptions granted during any given school year. This adjustment aims to align the financial responsibilities of districts with their choices regarding local property tax policy, potentially encouraging more districts to consider offering homestead exemptions without fearing significant penalties.

Summary

Senate Bill 1129 aims to amend the Education Code in Texas, specifically by introducing a credit for school districts against required recapture payments. This credit specifically pertains to the costs incurred by districts when offering optional residence homestead exemptions. The intention behind this legislation is to mitigate the financial impact of such exemptions on school funding and ensure that school districts are not overly penalized in their recapture obligations when they choose to support their local populations through property tax relief.

Conclusion

In summary, SB1129 presents a crucial adjustment to the Texas school finance system, with a focus on encouraging the provision of homestead exemptions by alleviating the associated financial penalties through recapture adjustments. The bill is scheduled to take effect on September 1, 2025, potentially setting a new precedent for how school districts manage their funding and tax policies in the future.

Contention

Notably, the legislation is likely to spark discussions around the equity of funding in public education, as adjustments to recapture payments might have varying effects based on local property values and the extent of homestead exemptions granted. Concerns may arise regarding whether the benefits of such credits sufficiently address disparities between districts that are able to offer more generous exemptions compared to those with limited revenue options. Stakeholders may debate the implications this bill has on the overall public school finance system and how it may influence local decisions about tax policies.

Texas Constitutional Statutes Affected

Education Code

  • Chapter 49. Options For Local Revenue Levels In Excess Of Entitlement
    • Section: New Section

Tax Code

  • Chapter 11. Taxable Property And Exemptions
    • Section: 13

Companion Bills

No companion bills found.

Previously Filed As

TX HB2994

Relating to a credit against required recapture payments for certain school districts with excess facilities costs under the public school finance system.

TX SB1456

Relating to a credit against required recapture payments for certain school districts with excess facilities costs under the public school finance system.

TX SB8

Relating to a credit against required recapture payments for certain school districts with excess facilities costs under the public school finance system.

TX SB25

Relating to a credit against required recapture payments for certain school districts with excess facilities costs under the public school finance system.

TX HB116

Relating to the basic allotment and guaranteed yield under the public school finance system, certain allotments under the Foundation School Program, determination of a school district's assets to liabilities ratio under the public school financial accountability rating system, and credit for prepayment of the amount required to be paid by a school district for the purchase of attendance credit under the public school finance system.

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

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 HB2467

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 HB2656

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 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.

Similar Bills

No similar bills found.