Texas 2025 - 89th Regular

Texas Senate Bill SB23 Compare Versions

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

Old	New	Differences
1	1	89R24457 LHC/KJE-D
2	2	By: Bettencourt S.B. No. 23
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to an increase in the amount of the exemption from ad
10	10	valorem taxation by a school district of the appraised value of the
11	11	residence homestead of a person who is elderly or disabled and the
12	12	protection of school districts against certain losses in local
13	13	revenue.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	ARTICLE 1. PROVISIONS CONTINGENT ON CONSTITUTIONAL AMENDMENT
16	16	SECTION 1.01. Section 11.13(c), Tax Code, is amended to
17	17	read as follows:
18	18	(c) In addition to the exemption provided by Subsection (b)
19	19	[of this section], an adult who is disabled or is 65 or older is
20	20	entitled to an exemption from taxation by a school district of
21	21	$60,000 [$10,000] of the appraised value of the person's [his]
22	22	residence homestead.
23	23	SECTION 1.02. Section 46.071, Education Code, is amended by
24	24	amending Subsections (a-2) and (b-2) and adding Subsections (a-4),
25	25	(b-4), (c-4), (d-1), and (d-2) to read as follows:
26	26	(a-2) For [Beginning with] the 2023-2024 and 2024-2025
27	27	school years [year], a school district is entitled to additional
28	28	state aid under this subchapter to the extent that state and local
29	29	revenue used to service debt eligible under this chapter is less
30	30	than the state and local revenue that would have been available to
31	31	the district under this chapter as it existed on September 1, 2022,
32	32	if any increase in a residence homestead exemption under Section
33	33	1-b(c), Article VIII, Texas Constitution, and any additional
34	34	limitation on tax increases under Section 1-b(d) of that article as
35	35	proposed by the 88th Legislature, 2nd Called Session, 2023, had not
36	36	occurred.
37	37	(a-4) Beginning with the 2025-2026 school year, a school
38	38	district is entitled to additional state aid under this subchapter
39	39	to the extent that state and local revenue used to service debt
40	40	eligible under this chapter is less than the state and local revenue
41	41	that would have been available to the district under this chapter as
42	42	it existed on January 1, 2025, if any increase in the residence
43	43	homestead exemption for a person who is elderly or disabled under
44	44	Section 1-b(c), Article VIII, Texas Constitution, as proposed by
45	45	the 89th Legislature, Regular Session, 2025, had not occurred.
46	46	(b-2) Subject to Subsections (c-2), (d), and (e),
47	47	additional state aid under this section for [beginning with] the
48	48	2023-2024 and 2024-2025 school years [year] is equal to the amount
49	49	by which the loss of local interest and sinking revenue for debt
50	50	service attributable to any increase in a residence homestead
51	51	exemption under Section 1-b(c), Article VIII, Texas Constitution,
52	52	and any additional limitation on tax increases under Section 1-b(d)
53	53	of that article as proposed by the 88th Legislature, 2nd Called
54	54	Session, 2023, is not offset by a gain in state aid under this
55	55	chapter.
56	56	(b-4) Subject to Subsections (c-4), (d), and (e),
57	57	additional state aid under this section beginning with the
58	58	2025-2026 school year is equal to the amount by which the loss of
59	59	local interest and sinking revenue for debt service attributable to
60	60	any increase in a residence homestead exemption for a person who is
61	61	elderly or disabled under Section 1-b(c), Article VIII, Texas
62	62	Constitution, as proposed by the 89th Legislature, Regular Session,
63	63	2025, is not offset by a gain in state aid under this chapter.
64	64	(c-4) For the purpose of determining state aid under
65	65	Subsections (a-4) and (b-4), local interest and sinking revenue for
66	66	debt service is limited to revenue required to service debt
67	67	eligible under this chapter as of January 1, 2025, including
68	68	refunding of that debt, subject to Section 46.061. The limitation
69	69	imposed by Section 46.034(a) does not apply for the purpose of
70	70	determining state aid under this section.
71	71	(d-1) If the amount required to pay debt service on bonds
72	72	issued under Subchapter A, Chapter 45, is less than the sum of state
73	73	assistance provided under this chapter, including the amount of
74	74	additional state aid provided under this section, and the revenue
75	75	from the district's interest and sinking tax for a school year, the
76	76	commissioner shall, except as provided by Subsection (d-2), reduce
77	77	the amount of additional state aid provided under this section by
78	78	the difference between:
79	79	(1) the sum of state assistance provided under this
80	80	chapter, including the amount of additional state aid provided
81	81	under this section, and the revenue from the district's interest
82	82	and sinking tax for the school year; and
83	83	(2) the amount required to pay debt service on bonds
84	84	described by this subsection for the school year.
85	85	(d-2) The amount of additional state aid provided under this
86	86	section may not be reduced under Subsection (d-1) to an amount below
87	87	the additional state aid provided under Subsection (a-4).
88	88	SECTION 1.03. Section 48.2543, Education Code, is amended
89	89	by amending Subsections (a-1) and (b) and adding Subsection (a-3)
90	90	to read as follows:
91	91	(a-1) For [Beginning with] the 2023-2024 and 2024-2025
92	92	school years [year], a school district is entitled to additional
93	93	state aid to the extent that state and local revenue under this
94	94	chapter and Chapter 49 is less than the state and local revenue that
95	95	would have been available to the district under this chapter and
96	96	Chapter 49 as those chapters existed on September 1, 2022, if any
97	97	increase in a residence homestead exemption under Section 1-b(c),
98	98	Article VIII, Texas Constitution, and any additional limitation on
99	99	tax increases under Section 1-b(d) of that article as proposed by
100	100	the 88th Legislature, 2nd Called Session, 2023, had not occurred.
101	101	(a-3) Beginning with the 2025-2026 school year, a school
102	102	district is entitled to additional state aid to the extent that
103	103	state and local revenue under this chapter and Chapter 49 is less
104	104	than the state and local revenue that would have been available to
105	105	the district under this chapter and Chapter 49 as those chapters
106	106	existed on September 1, 2024, if any increase in a residence
107	107	homestead exemption for a person who is elderly or disabled under
108	108	Section 1-b(c), Article VIII, Texas Constitution, as proposed by
109	109	the 89th Legislature, Regular Session, 2025, had not occurred.
110	110	(b) The lesser of the school district's currently adopted
111	111	maintenance and operations tax rate or the adopted maintenance and
112	112	operations tax rate for:
113	113	(1) the 2021 tax year is used for the purpose of
114	114	determining additional state aid under Subsection (a); [and]
115	115	(2) the 2022 tax year is used for the purpose of
116	116	determining additional state aid under Subsection (a-1); and
117	117	(3) the 2024 tax year is used for the purpose of
118	118	determining additional state aid under Subsection (a-3).
119	119	SECTION 1.04. Section 11.13, Tax Code, as amended by this
120	120	article, applies only to an ad valorem tax year that begins on or
121	121	after January 1, 2025.
122	122	ARTICLE 2. PROVISIONS NOT CONTINGENT ON CONSTITUTIONAL AMENDMENT
123	123	SECTION 2.01. Section 48.2551, Education Code, is amended
124	124	by adding Subsections (d-5) and (d-6) to read as follows:
125	125	(d-5) In calculating and making available school districts'
126	126	maximum compressed rates under this section for the 2025-2026
127	127	school year, the agency shall calculate and make available the
128	128	rates as if the increase in the residence homestead exemption for a
129	129	person who is elderly or disabled under Section 1-b(c), Article
130	130	VIII, Texas Constitution, as proposed by the 89th Legislature,
131	131	Regular Session, 2025, took effect. This subsection expires
132	132	September 1, 2026.
133	133	(d-6) If the increase in the residence homestead exemption
134	134	for a person who is elderly or disabled under Section 1-b(c),
135	135	Article VIII, Texas Constitution, as proposed by the 89th
136	136	Legislature, Regular Session, 2025, does not take effect, the
137	137	commissioner may adjust school districts' maximum compressed rates
138	138	under this section for the 2025-2026 school year accordingly.
139	139	Before making an adjustment under this subsection, the commissioner
140	140	shall notify and must receive approval from the Legislative Budget
141	141	Board and the office of the governor. This subsection expires
142	142	September 1, 2029.
143	143	SECTION 2.02. Section 49.004, Education Code, is amended by
144	144	adding Subsections (a-2), (b-1), and (c-1) to read as follows:
145	145	(a-2) This subsection applies only if the constitutional
146	146	amendment proposed by S.J.R. 85, 89th Legislature, Regular Session,
147	147	2025, is approved by the voters in an election held for that
148	148	purpose. As soon as practicable after receiving revised property
149	149	values that reflect adoption of the constitutional amendment, the
150	150	commissioner shall review the local revenue level of districts in
151	151	the state and revise as necessary the notifications provided under
152	152	Subsection (a) for the 2025-2026 school year. This subsection
153	153	expires September 1, 2026.
154	154	(b-1) This subsection applies only to a district that has
155	155	not previously held an election under this chapter.
156	156	Notwithstanding Subsection (b), a district that enters into an
157	157	agreement to exercise an option to reduce the district's local
158	158	revenue level in excess of entitlement under Section 49.002(3),
159	159	(4), or (5) for the 2025-2026 school year may request and, as
160	160	provided by Section 49.0044(a), receive approval from the
161	161	commissioner to delay the date of the election otherwise required
162	162	to be ordered before September 1. This subsection expires
163	163	September 1, 2026.
164	164	(c-1) Notwithstanding Subsection (c), a district that
165	165	receives approval from the commissioner to delay an election as
166	166	provided by Subsection (b-1) may adopt a tax rate for the 2025 tax
167	167	year before the commissioner certifies that the district has
168	168	reduced its local revenue level to the level established by Section
169	169	48.257. This subsection expires September 1, 2026.
170	170	SECTION 2.03. Subchapter A, Chapter 49, Education Code, is
171	171	amended by adding Section 49.0044 to read as follows:
172	172	Sec. 49.0044. TRANSITIONAL PROVISIONS: INCREASED
173	173	HOMESTEAD EXEMPTIONS FOR ELDERLY OR DISABLED PERSONS. (a) The
174	174	commissioner shall approve a district's request under Section
175	175	49.004(b-1) to delay the date of an election required under this
176	176	chapter if the commissioner determines that the district would not
177	177	have a local revenue level in excess of entitlement if the
178	178	constitutional amendment proposed by S.J.R. 85, 89th Legislature,
179	179	Regular Session, 2025, were approved by the voters.
180	180	(b) The commissioner shall set a date by which each district
181	181	that receives approval under this section must order the election.
182	182	(c) Not later than the 2026-2027 school year, the
183	183	commissioner shall order detachment and annexation of property
184	184	under Subchapter G or consolidation under Subchapter H as necessary
185	185	to reduce the district's local revenue level to the level
186	186	established by Section 48.257 for a district that receives approval
187	187	under this section and subsequently:
188	188	(1) fails to hold the election; or
189	189	(2) does not receive voter approval at the election.
190	190	(d) This section expires September 1, 2027.
191	191	SECTION 2.04. Subchapter A, Chapter 49, Education Code, is
192	192	amended by adding Section 49.0122 to read as follows:
193	193	Sec. 49.0122. TRANSITIONAL ELECTION DATES: INCREASED
194	194	HOMESTEAD EXEMPTIONS FOR ELDERLY OR DISABLED PERSONS. (a) This
195	195	section applies only to an election under this chapter that occurs
196	196	during the 2025-2026 school year.
197	197	(b) Section 49.012 does not apply to a district that
198	198	receives approval of a request under Section 49.0044. The district
199	199	shall hold the election on a Tuesday or Saturday on or before a date
200	200	specified by the commissioner. Section 41.001, Election Code, does
201	201	not apply to the election.
202	202	(c) This section expires September 1, 2026.
203	203	SECTION 2.05. Section 49.154, Education Code, is amended by
204	204	adding Subsections (a-4) and (a-5) to read as follows:
205	205	(a-4) Notwithstanding Subsections (a) and (a-1), a district
206	206	that receives approval of a request under Section 49.0044 shall pay
207	207	for credit purchased:
208	208	(1) in equal monthly payments as determined by the
209	209	commissioner beginning March 15, 2026, and ending August 15, 2026;
210	210	or
211	211	(2) in the manner provided by Subsection (a)(2),
212	212	provided that the district notifies the commissioner of the
213	213	district's election to pay in that manner not later than March 15,
214	214	2026.
215	215	(a-5) Subsection (a-4) and this subsection expire September
216	216	1, 2026.
217	217	SECTION 2.06. Section 49.308, Education Code, is amended by
218	218	adding Subsection (a-2) to read as follows:
219	219	(a-2) Notwithstanding Subsection (a), for the 2025-2026
220	220	school year, the commissioner shall order any detachments and
221	221	annexations of property under this subchapter as soon as
222	222	practicable after the canvass of the votes on the constitutional
223	223	amendment proposed by S.J.R. 85, 89th Legislature, Regular Session,
224	224	2025. This subsection expires September 1, 2026.
225	225	SECTION 2.07. Section 26.01, Tax Code, is amended by adding
226	226	Subsections (a-2) and (a-3) to read as follows:
227	227	(a-2) This subsection applies only to the appraisal roll for
228	228	a school district for the 2025 tax year. When the chief appraiser
229	229	delivers the appraisal roll to the assessor for the school
230	230	district, the chief appraiser shall include a provisional appraisal
231	231	roll to account for the changes in law made by S.B. 23, Acts of the
232	232	89th Legislature, Regular Session, 2025. If the chief appraiser
233	233	delivers a supplemental appraisal roll or correction to the
234	234	appraisal roll to the assessor for the school district before the
235	235	effective date of Article 1 of that Act, the chief appraiser shall
236	236	include provisional appraisal roll entries to account for the
237	237	changes in law made by that article. If Article 1 of that Act takes
238	238	effect:
239	239	(1) on the effective date of that article, the
240	240	provisional appraisal roll, as supplemented and corrected, becomes
241	241	the appraisal roll for the school district; and
242	242	(2) as soon as practicable after the effective date of
243	243	that article, the chief appraiser shall correct the school
244	244	district's appraisal roll as necessary to finally account for the
245	245	changes in law made by that article.
246	246	(a-3) This subsection and Subsection (a-2) expire December
247	247	31, 2026.
248	248	SECTION 2.08. Section 26.04, Tax Code, is amended by adding
249	249	Subsections (a-1) and (c-1) to read as follows:
250	250	(a-1) On receipt of the appraisal roll for the 2025 tax
251	251	year, the assessor for a school district shall determine the total
252	252	taxable value of property taxable by the district and the taxable
253	253	value of new property as if the changes in law made by S.B. 23, Acts
254	254	of the 89th Legislature, Regular Session, 2025, were in effect for
255	255	that tax year. This subsection expires December 31, 2026.
256	256	(c-1) An officer or employee designated by the governing
257	257	body of a school district shall calculate the no-new-revenue tax
258	258	rate and the voter-approval tax rate of the district for the 2025
259	259	tax year as if the changes in law made by S.B. 23, Acts of the 89th
260	260	Legislature, Regular Session, 2025, were in effect for that tax
261	261	year. This subsection expires December 31, 2026.
262	262	SECTION 2.09. Section 26.08, Tax Code, is amended by adding
263	263	Subsection (q) to read as follows:
264	264	(q) For purposes of this section, the voter-approval tax
265	265	rate of a school district for the 2025 tax year shall be calculated
266	266	as if the changes in law made by S.B. 23, Acts of the 89th
267	267	Legislature, Regular Session, 2025, were in effect for that tax
268	268	year. This subsection expires December 31, 2026.
269	269	SECTION 2.10. Section 26.09, Tax Code, is amended by adding
270	270	Subsection (c-1) to read as follows:
271	271	(c-1) The assessor for a school district shall calculate the
272	272	amount of tax imposed by the school district on a residence
273	273	homestead for the 2025 tax year as if the changes in law made by S.B.
274	274	23, Acts of the 89th Legislature, Regular Session, 2025, were in
275	275	effect for that tax year and also as if the changes in law made by
276	276	that Act were not in effect for that tax year. This subsection
277	277	expires December 31, 2026.
278	278	SECTION 2.11. Section 26.15, Tax Code, is amended by adding
279	279	Subsection (h) to read as follows:
280	280	(h) The assessor for a school district shall correct the tax
281	281	roll for the district for the 2025 tax year to reflect the results
282	282	of the election to approve the constitutional amendment proposed by
283	283	S.J.R. 85, 89th Legislature, Regular Session, 2025. This
284	284	subsection expires December 31, 2026.
285	285	SECTION 2.12. Section 31.01, Tax Code, is amended by adding
286	286	Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
287	287	(d-2) This subsection and Subsections (d-3) and (d-4) apply
288	288	only to taxes imposed by a school district on a residence homestead
289	289	for the 2025 tax year and only if the changes in law made by S.B. 23,
290	290	Acts of the 89th Legislature, Regular Session, 2025, would lower
291	291	the taxes imposed by the district on the property for that tax year.
292	292	The assessor for the district shall compute the amount of taxes
293	293	imposed and the other information required by this section as if the
294	294	changes in law made by S.B. 23, Acts of the 89th Legislature,
295	295	Regular Session, 2025, were in effect for that tax year. The tax
296	296	bill or the separate statement must indicate that the bill is a
297	297	provisional tax bill and include a statement in substantially the
298	298	following form:
299	299	"If the Texas Legislature had not enacted property tax relief
300	300	legislation during the 2025 legislative session, your tax bill
301	301	would have been $____ (insert amount of tax bill if the changes in
302	302	law made by S.B. 23, Acts of the 89th Legislature, Regular Session,
303	303	2025, were not in effect for that tax year). Because of action by
304	304	the Texas Legislature, your tax bill has been lowered by $____
305	305	(insert difference between amount of tax bill if the changes in law
306	306	made by S.B. 23, Acts of the 89th Legislature, Regular Session,
307	307	2025, were not in effect for that tax year and amount of tax bill if
308	308	that Act were in effect for that tax year), resulting in a lower tax
309	309	bill of $____ (insert amount of tax bill if the changes in law made
310	310	by S.B. 23, Acts of the 89th Legislature, Regular Session, 2025,
311	311	were in effect for that tax year), contingent on the approval by the
312	312	voters at an election to be held November 4, 2025, of the
313	313	constitutional amendment proposed by S.J.R. 85, 89th Legislature,
314	314	Regular Session, 2025. If that constitutional amendment is not
315	315	approved by the voters at the election, a supplemental tax bill in
316	316	the amount of $____ (insert difference between amount of tax bill if
317	317	the changes in law made by S.B. 23, Acts of the 89th Legislature,
318	318	Regular Session, 2025, were not in effect for that tax year and
319	319	amount of tax bill if that Act were in effect for that tax year) will
320	320	be mailed to you."
321	321	(d-3) A tax bill prepared by the assessor for a school
322	322	district as provided by Subsection (d-2) and mailed as provided by
323	323	Subsection (a) is considered to be a provisional tax bill until the
324	324	canvass of the votes on the constitutional amendment proposed by
325	325	S.J.R. 85, 89th Legislature, Regular Session, 2025. If the
326	326	constitutional amendment is approved by the voters, the tax bill is
327	327	considered to be a final tax bill for the taxes imposed on the
328	328	property for the 2025 tax year, and no additional tax bill is
329	329	required to be mailed unless another provision of this title
330	330	requires the mailing of a corrected tax bill. If the constitutional
331	331	amendment is not approved by the voters:
332	332	(1) a tax bill prepared by the assessor as provided by
333	333	Subsection (d-2) is considered to be a final tax bill but only as to
334	334	the portion of the taxes imposed on the property for the 2025 tax
335	335	year that are included in the bill;
336	336	(2) the amount of taxes imposed by each school
337	337	district on a residence homestead for the 2025 tax year is
338	338	calculated as if the changes in law made by S.B. 23, Acts of the 89th
339	339	Legislature, Regular Session, 2025, were not in effect for that tax
340	340	year; and
341	341	(3) except as provided by Subsections (f), (i-1), and
342	342	(k), the assessor for each school district shall prepare and mail a
343	343	supplemental tax bill, by December 1 or as soon thereafter as
344	344	practicable, in an amount equal to the difference between the
345	345	amount of the tax bill if the changes in law made by S.B. 23, Acts of
346	346	the 89th Legislature, Regular Session, 2025, were not in effect for
347	347	that tax year and the amount of the tax bill if that Act were in
348	348	effect for that tax year.
349	349	(d-4) Except as otherwise provided by Subsection (d-3), the
350	350	provisions of this section other than Subsection (d-2) apply to a
351	351	supplemental tax bill mailed under Subsection (d-3).
352	352	(d-5) This subsection and Subsections (d-2), (d-3), and
353	353	(d-4) expire December 31, 2026.
354	354	SECTION 2.13. Section 31.02, Tax Code, is amended by adding
355	355	Subsection (a-1) to read as follows:
356	356	(a-1) Except as provided by Subsection (b) of this section
357	357	and Sections 31.03 and 31.04, taxes for which a supplemental tax
358	358	bill is mailed under Section 31.01(d-3) are due on receipt of the
359	359	tax bill and are delinquent if not paid before March 1 of the year
360	360	following the year in which imposed. This subsection expires
361	361	December 31, 2026.
362	362	ARTICLE 3. EFFECTIVE DATES
363	363	SECTION 3.01. Except as otherwise provided by this article:
364	364	(1) this Act takes effect immediately if this Act
365	365	receives a vote of two-thirds of all the members elected to each
366	366	house, as provided by Section 39, Article III, Texas Constitution;
367	367	and
368	368	(2) if this Act does not receive the vote necessary for
369	369	immediate effect, this Act takes effect September 1, 2025.
370	370	SECTION 3.02. Article 1 of this Act takes effect on the date
371	371	on which the constitutional amendment proposed by S.J.R. 85, 89th
372	372	Legislature, Regular Session, 2025, takes effect. If that
373	373	amendment is not approved by the voters, Article 1 of this Act has
374	374	no effect.