TX
Texas Senate Bill SB4

Texas 2025 - 89th Regular

Texas Senate Bill SB4

Filed
2/6/25  
Out of Senate Committee
2/11/25  
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against certain losses in local revenue.

Impact

The implications of SB4 are significant in terms of state law concerning property tax assessments and public school funding structures. By increasing the homestead exemption, it directly impacts the amount of revenue that school districts can generate through local property taxes. To counterbalance these reductions, the state will allocate additional funds to affected districts, ensuring that budgetary constraints do not hinder educational services. This change aims to enhance fiscal stability for school districts while offering financial relief to homeowners.

Summary

Senate Bill 4 (SB4) seeks to reform the way residence homesteads are taxed by school districts in Texas. Specifically, the bill proposes an increase in the exemption amount from $100,000 to $140,000, thereby reducing the taxable value of homesteads. This legislation is not just about tax relief; it is also designed to safeguard school districts from potential revenue loss associated with this increased exemption by providing additional state aid. The bill illustrates a substantial shift in how Texas approaches funding public education through property taxes.

Sentiment

The sentiment surrounding SB4 appears mixed. Supporters in the education community view the bill positively, arguing it provides essential funding stability that will benefit local schools while also offering taxpayers relief. Conversely, some critics express concern that the bill may lead to inadequate funding for districts that rely heavily on local property taxes. This dichotomy underscores tensions related to fiscal policy and the sustainability of school funding in a changing legislative landscape.

Contention

A notable point of contention regarding SB4 revolves around the proposed phase-in period for the new exemption levels and the reliance on state aid to bridge the gap left by reduced local tax collections. While proponents advocate for the benefits of increased homeowner exemptions and necessary school funding, detractors argue that this approach may inadvertently create disparities among districts, particularly those less able to adapt to changes in state support. The balance between local autonomy in financial matters and statewide funding responsibilities continues to be a focal point of debate.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 11. Taxable Property And Exemptions
    • Section: 13
    • Section: New Section
    • Section: 13
    • Section: New Section
  • Chapter 26. Assessment
    • Section: New Section
    • Section: 04
    • Section: 08
    • Section: 15
    • Section: 09
    • Section: New Section
    • Section: 01
    • Section: 04
    • Section: 08
    • Section: 09
    • Section: 15
    • Section: 08
    • Section: 04
    • Section: 09
  • Chapter 31. Collections
    • Section: 02
    • Section: New Section
    • Section: New Section
    • Section: 01
    • Section: 01
    • Section: 02
    • Section: New Section
  • Chapter 25. Local Appraisal
    • Section: New Section
    • Section: New Section
  • Chapter 1. General Provisions
    • Section: New Section

Education Code

  • Chapter 46. Assistance With Instructional Facilities And Payment Of Existing Debt
    • Section: 071
    • Section: New Section
    • Section: 071
    • Section: 071
    • Section: 071
  • Chapter 48. Foundation School Program
    • Section: 2543
    • Section: 283
    • Section: 2551
    • Section: 2551
    • Section: 283
    • Section: 2543
    • Section: 283
  • Chapter 49. Options For Local Revenue Levels In Excess Of Entitlement
    • Section: New Section
    • Section: 0121
    • Section: New Section
    • Section: New Section
    • Section: 0121
    • Section: New Section
  • Chapter 1. General Provisions
    • Section: New Section

Latest SB4 Activity

Companion Bills

TX HB2611

Identical Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against certain losses in local revenue.

TX SJR2

Enabling for Proposing a constitutional amendment to increase the amount of the exemption of residence homesteads from ad valorem taxation by a school district.

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 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 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.

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 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 HB732

Relating to increasing the amount of the residence homestead exemption from ad valorem taxation by a school district from $15,000 to $30,000, 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.

TX HB52

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.

TX HB982

Relating to an increase in the amount of the residence homestead exemption from ad valorem taxation by a school district, 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 the protection of school districts against the resulting loss in local revenue.