Texas 2025 - 89th Regular

Texas Senate Bill SB2644 Compare Versions

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

Old	New	Differences
1	1	89R2010 KJE-D
2	2	By: Middleton S.B. No. 2644
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the provision of funding under the public school
10	10	finance system on the basis of property values that take into
11	11	account optional homestead exemptions.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 7.062(c), Education Code, is amended to
14	14	read as follows:
15	15	(c) Except as otherwise provided by this subsection, if the
16	16	commissioner certifies that the amount appropriated for a state
17	17	fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
18	18	the amount to which school districts are entitled under those
19	19	subchapters for that year, the commissioner shall use the excess
20	20	funds, in an amount not to exceed $20 million in any state fiscal
21	21	year, for the purpose of making grants under this section. The use
22	22	of excess funds under this subsection has priority over any
23	23	provision of Chapter 48 that permits or directs the use of excess
24	24	foundation school program funds, including Sections 48.258[,
25	25	48.259,] and 48.267. The commissioner is required to use excess
26	26	funds as provided by this subsection only if the commissioner is not
27	27	required to reduce the total amount of state funds allocated to
28	28	school districts under Section 48.266(f).
29	29	SECTION 2. Section 403.302(d), Government Code, as
30	30	effective until January 1, 2027, is amended to read as follows:
31	31	(d) For the purposes of this section, "taxable value" means
32	32	the market value of all taxable property less:
33	33	(1) the total dollar amount of any residence homestead
34	34	exemptions lawfully granted under Section 11.13(b) or (c), Tax
35	35	Code, in the year that is the subject of the study for each school
36	36	district;
37	37	(2) [one-half of] the total dollar amount of any
38	38	residence homestead exemptions granted under Section 11.13(n), Tax
39	39	Code, in the year that is the subject of the study for each school
40	40	district;
41	41	(3) the total dollar amount of any exemptions granted
42	42	before May 31, 1993, within a reinvestment zone under agreements
43	43	authorized by Chapter 312, Tax Code;
44	44	(4) subject to Subsection (e), the total dollar amount
45	45	of any captured appraised value of property that:
46	46	(A) is within a reinvestment zone created on or
47	47	before May 31, 1999, or is proposed to be included within the
48	48	boundaries of a reinvestment zone as the boundaries of the zone and
49	49	the proposed portion of tax increment paid into the tax increment
50	50	fund by a school district are described in a written notification
51	51	provided by the municipality or the board of directors of the zone
52	52	to the governing bodies of the other taxing units in the manner
53	53	provided by former Section 311.003(e), Tax Code, before May 31,
54	54	1999, and within the boundaries of the zone as those boundaries
55	55	existed on September 1, 1999, including subsequent improvements to
56	56	the property regardless of when made;
57	57	(B) generates taxes paid into a tax increment
58	58	fund created under Chapter 311, Tax Code, under a reinvestment zone
59	59	financing plan approved under Section 311.011(d), Tax Code, on or
60	60	before September 1, 1999; and
61	61	(C) is eligible for tax increment financing under
62	62	Chapter 311, Tax Code;
63	63	(5) the total dollar amount of any captured appraised
64	64	value of property that:
65	65	(A) is within a reinvestment zone:
66	66	(i) created on or before December 31, 2008,
67	67	by a municipality with a population of less than 18,000; and
68	68	(ii) the project plan for which includes
69	69	the alteration, remodeling, repair, or reconstruction of a
70	70	structure that is included on the National Register of Historic
71	71	Places and requires that a portion of the tax increment of the zone
72	72	be used for the improvement or construction of related facilities
73	73	or for affordable housing;
74	74	(B) generates school district taxes that are paid
75	75	into a tax increment fund created under Chapter 311, Tax Code; and
76	76	(C) is eligible for tax increment financing under
77	77	Chapter 311, Tax Code;
78	78	(6) the total dollar amount of any exemptions granted
79	79	under Section 11.251 or 11.253, Tax Code;
80	80	(7) the difference between the comptroller's estimate
81	81	of the market value and the productivity value of land that
82	82	qualifies for appraisal on the basis of its productive capacity,
83	83	except that the productivity value estimated by the comptroller may
84	84	not exceed the fair market value of the land;
85	85	(8) the portion of the appraised value of residence
86	86	homesteads of individuals who receive a tax limitation under
87	87	Section 11.26, Tax Code, on which school district taxes are not
88	88	imposed in the year that is the subject of the study, calculated as
89	89	if the residence homesteads were appraised at the full value
90	90	required by law;
91	91	(9) a portion of the market value of property not
92	92	otherwise fully taxable by the district at market value because of
93	93	action required by statute or the constitution of this state, other
94	94	than Section 11.311, Tax Code, that, if the tax rate adopted by the
95	95	district is applied to it, produces an amount equal to the
96	96	difference between the tax that the district would have imposed on
97	97	the property if the property were fully taxable at market value and
98	98	the tax that the district is actually authorized to impose on the
99	99	property, if this subsection does not otherwise require that
100	100	portion to be deducted;
101	101	(10) the market value of all tangible personal
102	102	property, other than manufactured homes, owned by a family or
103	103	individual and not held or used for the production of income;
104	104	(11) the appraised value of property the collection of
105	105	delinquent taxes on which is deferred under Section 33.06, Tax
106	106	Code;
107	107	(12) the portion of the appraised value of property
108	108	the collection of delinquent taxes on which is deferred under
109	109	Section 33.065, Tax Code;
110	110	(13) the amount by which the market value of property
111	111	to which Section 23.23 or 23.231, Tax Code, applies exceeds the
112	112	appraised value of that property as calculated under Section 23.23
113	113	or 23.231, Tax Code, as applicable; and
114	114	(14) the total dollar amount of any exemptions granted
115	115	under Section 11.35, Tax Code.
116	116	SECTION 3. Section 403.302(d), Government Code, as
117	117	effective on January 1, 2027, is amended to read as follows:
118	118	(d) For the purposes of this section, "taxable value" means
119	119	the market value of all taxable property less:
120	120	(1) the total dollar amount of any residence homestead
121	121	exemptions lawfully granted under Section 11.13(b) or (c), Tax
122	122	Code, in the year that is the subject of the study for each school
123	123	district;
124	124	(2) [one-half of] the total dollar amount of any
125	125	residence homestead exemptions granted under Section 11.13(n), Tax
126	126	Code, in the year that is the subject of the study for each school
127	127	district;
128	128	(3) the total dollar amount of any exemptions granted
129	129	before May 31, 1993, within a reinvestment zone under agreements
130	130	authorized by Chapter 312, Tax Code;
131	131	(4) subject to Subsection (e), the total dollar amount
132	132	of any captured appraised value of property that:
133	133	(A) is within a reinvestment zone created on or
134	134	before May 31, 1999, or is proposed to be included within the
135	135	boundaries of a reinvestment zone as the boundaries of the zone and
136	136	the proposed portion of tax increment paid into the tax increment
137	137	fund by a school district are described in a written notification
138	138	provided by the municipality or the board of directors of the zone
139	139	to the governing bodies of the other taxing units in the manner
140	140	provided by former Section 311.003(e), Tax Code, before May 31,
141	141	1999, and within the boundaries of the zone as those boundaries
142	142	existed on September 1, 1999, including subsequent improvements to
143	143	the property regardless of when made;
144	144	(B) generates taxes paid into a tax increment
145	145	fund created under Chapter 311, Tax Code, under a reinvestment zone
146	146	financing plan approved under Section 311.011(d), Tax Code, on or
147	147	before September 1, 1999; and
148	148	(C) is eligible for tax increment financing under
149	149	Chapter 311, Tax Code;
150	150	(5) the total dollar amount of any captured appraised
151	151	value of property that:
152	152	(A) is within a reinvestment zone:
153	153	(i) created on or before December 31, 2008,
154	154	by a municipality with a population of less than 18,000; and
155	155	(ii) the project plan for which includes
156	156	the alteration, remodeling, repair, or reconstruction of a
157	157	structure that is included on the National Register of Historic
158	158	Places and requires that a portion of the tax increment of the zone
159	159	be used for the improvement or construction of related facilities
160	160	or for affordable housing;
161	161	(B) generates school district taxes that are paid
162	162	into a tax increment fund created under Chapter 311, Tax Code; and
163	163	(C) is eligible for tax increment financing under
164	164	Chapter 311, Tax Code;
165	165	(6) the total dollar amount of any exemptions granted
166	166	under Section 11.251 or 11.253, Tax Code;
167	167	(7) the difference between the comptroller's estimate
168	168	of the market value and the productivity value of land that
169	169	qualifies for appraisal on the basis of its productive capacity,
170	170	except that the productivity value estimated by the comptroller may
171	171	not exceed the fair market value of the land;
172	172	(8) the portion of the appraised value of residence
173	173	homesteads of individuals who receive a tax limitation under
174	174	Section 11.26, Tax Code, on which school district taxes are not
175	175	imposed in the year that is the subject of the study, calculated as
176	176	if the residence homesteads were appraised at the full value
177	177	required by law;
178	178	(9) a portion of the market value of property not
179	179	otherwise fully taxable by the district at market value because of
180	180	action required by statute or the constitution of this state, other
181	181	than Section 11.311, Tax Code, that, if the tax rate adopted by the
182	182	district is applied to it, produces an amount equal to the
183	183	difference between the tax that the district would have imposed on
184	184	the property if the property were fully taxable at market value and
185	185	the tax that the district is actually authorized to impose on the
186	186	property, if this subsection does not otherwise require that
187	187	portion to be deducted;
188	188	(10) the market value of all tangible personal
189	189	property, other than manufactured homes, owned by a family or
190	190	individual and not held or used for the production of income;
191	191	(11) the appraised value of property the collection of
192	192	delinquent taxes on which is deferred under Section 33.06, Tax
193	193	Code;
194	194	(12) the portion of the appraised value of property
195	195	the collection of delinquent taxes on which is deferred under
196	196	Section 33.065, Tax Code;
197	197	(13) the amount by which the market value of a
198	198	residence homestead to which Section 23.23, Tax Code, applies
199	199	exceeds the appraised value of that property as calculated under
200	200	that section; and
201	201	(14) the total dollar amount of any exemptions granted
202	202	under Section 11.35, Tax Code.
203	203	SECTION 4. Section 48.259, Education Code, is repealed.
204	204	SECTION 5. Section 403.302, Government Code, as amended by
205	205	this Act, applies only to a school district property value study
206	206	conducted for a tax year that begins on or after January 1, 2026.
207	207	SECTION 6. This Act takes effect September 1, 2025.