TX
Texas Senate Bill SB23

Texas 2025 - 89th Regular

Texas Senate Bill SB23

Filed
4/15/25  
Out of Senate Committee
4/22/25  
Voted on by Senate
4/23/25  
Out of House Committee
5/9/25  
Bill Becomes Law
 

Caption

Relating to an increase in the amount of the exemption from ad valorem taxation by a school district of the appraised value of the residence homestead of a person who is elderly or disabled and the protection of school districts against certain losses in local revenue.

Impact

The implementation of this bill would lead to a notable adjustment in state laws regarding property tax exemptions for elderly and disabled residents. It would require changes in the calculations of ad valorem taxes levied by school districts. The provision allows for additional state aid to school districts that may experience revenue losses due to these changes, helping to maintain their budgets and financial integrity. However, this is contingent upon the approval of a related constitutional amendment proposed in tandem with the bill, emphasizing the intertwined nature of state tax policy and local governance.

Summary

Senate Bill 23 (SB23) proposes an increase in the exemption amount from ad valorem taxation for the residence homestead of individuals who are elderly or disabled. Under the bill, the exemption amount increases from $10,000 to $60,000, thereby providing significant financial relief to these groups. This change aims to help alleviate the tax burden on some of the most vulnerable populations, offering them a more manageable cost of living. Additionally, the bill includes provisions to protect school districts from financial losses incurred due to the increased exemptions, ensuring that they remain funded adequately despite the exemptions extending to eligible individuals.

Sentiment

The sentiment around SB23 appears to be broadly supportive, especially among advocacy groups focused on aging and disability rights. Proponents argue that the increase in exemptions is a critical step toward providing economic relief and addressing the financial challenges faced by elderly and disabled individuals. Nonetheless, there are concerns raised by some lawmakers regarding the long-term financial implications for local school districts and how the state will sustain equitable funding in light of potential decreases in local revenue. This duality highlights ongoing debates surrounding tax policies and resource allocations in state government.

Contention

A notable point of contention revolves around the funding mechanisms set to offset the financial impact on school districts. Critics are concerned that while the bill offers immediate relief to individuals, it could place future burdens on state budgets or lead to inequities in educational funding. Additionally, since the efficacy of the bill is tied to the constitutional amendment's approval, the uncertainty regarding its enactment may foster skepticism among stakeholders interested in fiscal responsibility and the viability of public funding for education.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 11. Taxable Property And Exemptions
    • Section: 13
    • Section: 13
    • Section: 13
    • Section: 13
    • Section: 13
    • Section: 13
    • Section: 13
  • Chapter 26. Assessment
    • Section: 04
    • Section: 08
    • Section: 09
    • Section: 15
    • Section: 15
    • Section: 01
    • Section: 04
    • Section: 08
    • Section: 09
    • Section: 01
    • Section: 01
    • Section: 04
    • Section: 08
    • Section: 09
    • Section: 15
    • Section: 09
    • Section: 15
    • Section: 04
    • Section: 08
    • Section: 09
    • Section: 15
    • Section: 04
    • Section: 04
    • Section: 08
    • Section: 09
    • Section: 15
  • Chapter 31. Collections
    • Section: 01
    • Section: 01
    • Section: 02
    • Section: 01
    • Section: 01
    • Section: 01
    • Section: 01
    • Section: 01

Education Code

  • Chapter 46. Assistance With Instructional Facilities And Payment Of Existing Debt
    • Section: 071
    • Section: 071
    • Section: 071
    • Section: 071
    • Section: 071
    • Section: 071
  • Chapter 49. Options For Local Revenue Levels In Excess Of Entitlement
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
  • Chapter 48. Foundation School Program
    • Section: 2543
    • Section: 2543

Companion Bills

TX SJR85

Enabling for Proposing a constitutional amendment authorizing the legislature to increase the amount of the exemption from ad valorem taxation by a school district of the market value of the residence homestead of a person who is elderly or disabled.

Similar Bills

TX SB1

Relating to certain restrictions on the imposition of ad valorem taxes and to the duty of the state to reimburse certain political subdivisions for certain revenue loss; making conforming changes.

TX SB3

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.

TX HB2

Relating to providing property tax relief through the public school finance system and property tax appraisal and administration.

TX SB1328

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation in homestead values, 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 a disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX SB1391

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district and the increase of the exemption amount in subsequent years to reflect inflation in homestead values, 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 a disabled or elderly person to reflect the increased exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX HB3570

Relating to an exemption from ad valorem taxation by a school district of a percentage, rather than a dollar amount, of the appraised value of a residence homestead, 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 any increase in the exemption amount, 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 HB56

Relating to increasing the amount of the residence homestead exemption from ad valorem taxation by a school district from $15,000 to $45,000, providing for 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 protecting school districts against the resulting loss in local revenue.