Bill > HB378

This bill proposes to increase the homestead exemption for school district property taxes from $100,000 to $200,000, effective January 1, 2026, and provides a mechanism to protect school districts from potential revenue losses resulting from this increased exemption. The bill establishes additional state aid provisions to ensure that school districts will receive the same level of state and local revenue they would have received before the exemption increase. Specifically, for the 2026-2027 school year and beyond, school districts will be entitled to supplemental state funding that makes up the difference between their expected revenue under the new exemption and what they would have received under the previous tax structure. The bill is contingent on voter approval of a constitutional amendment proposing the homestead exemption increase, and if such an amendment is not approved, the bill will have no effect. The homestead exemption applies to the appraised value of a primary residence, with a small caveat that only $5,000 of the exemption applies to certain specific school district entities operating under older education code chapters.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB378