Bill > SB634

This bill provides new authority for the governing body of a taxing unit to adopt an additional property tax exemption for residential homesteads, specifically allowing them to exempt a dollar amount (rather than a percentage) from the appraised value of a homestead. Under the new provision, the exemption must be at least $5,000 and must be adopted by July 1 of the tax year in which it will apply. The bill modifies several sections of the Texas Tax Code and Education Code to integrate this new exemption type, ensuring it can be used in various contexts such as school district tax calculations and property value assessments. Importantly, this new exemption is intended to be additional to existing homestead exemptions, giving local taxing units more flexibility in providing property tax relief. The bill is contingent on a constitutional amendment being approved by voters in 2025, and if passed, would take effect on January 1, 2026, applying to ad valorem taxes for tax years beginning on or after that date.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB634