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 Senate
2/13/25  
Out of House Committee
5/9/25  
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

If enacted, SB4 would alter the financial landscape for local schools and homeowners alike. By increasing the homestead exemption, the bill attempts to provide substantial tax relief to residents, particularly appealing to voters concerned about housing affordability. In practical terms, this translates to a substantial reduction in property tax revenue for schools, prompting a need for supplementary state funding to ensure districts can maintain their financial health. This dynamic establishes a collaborative approach between state mandates and local financial viability.

Summary

SB4 aims to increase the exemption amount for residence homesteads from ad valorem taxation imposed by school districts. The bill proposes raising the tax exemption limit from $100,000 to $140,000, which could significantly reduce tax liabilities for homeowners. Additionally, it provides mechanisms for ensuring that school districts receive sufficient state support in light of potential revenue losses that might result from this increased exemption. These efforts are framed within the context of constitutional changes referred to in a related proposed amendment (S.J.R. 2), which would need voter approval to fully implement the provisions of SB4.

Sentiment

The overall sentiment surrounding SB4 appears largely positive among its supporters, who advocate for its potential to ease the tax burden on middle-class homeowners. However, there remain concerns among some legislators about the implications for school funding and the equitable distribution of financial resources across districts. Advocates assert that the tax relief is essential for economic stability in the housing market, while critics may argue it poses risks to public education funding, creating a divisive debate around budget priorities.

Contention

A notable point of contention revolves around the necessity of the constitutional amendment linked to SB4's implementation. Opponents are wary that should the amendment not pass, the proposed homestead exemptions could inadvertently lead to budget deficits for educational institutions without necessary funding mechanisms in place. The current calculations for tax liabilities and the interplay between local revenue impacts and state funding obligations are central to the discussions, with concerns about maintaining adequate educational resources at the forefront of legislative debates.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 11. Taxable Property And Exemptions
    • Section: 13
    • Section: New Section
    • Section: 13
    • Section: New Section
    • Section: 13
    • Section: 13
    • Section: 13
  • 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
    • Section: 01
    • Section: 04
    • Section: 08
    • Section: 04
    • Section: 01
    • Section: 08
    • Section: 09
    • Section: 15
  • Chapter 31. Collections
    • Section: 02
    • Section: New Section
    • Section: New Section
    • Section: 01
    • Section: 01
    • Section: 02
    • Section: New Section
    • Section: 01
    • Section: 01
  • 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
    • 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
    • Section: 2543
    • Section: 2543
  • 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
    • Section: New Section
    • Section: 0121
    • Section: New Section
    • Section: 0121
    • Section: New Section
  • Chapter 1. General Provisions
    • Section: New Section
  • Chapter 26. Parental Rights And Responsibilities
    • Section: New Section
  • Chapter 31. Instructional Materials And Technology
    • Section: New Section

Companion Bills

TX HB2611

Same As 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 SB3

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

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 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 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 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.