Bill

Bill > SB4


TX SB4

TX SB4
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.


summary

Introduced
02/06/2025
In Committee
05/05/2025
Crossed Over
02/13/2025
Passed
06/16/2025
Dead
Signed/Enacted/Adopted
06/16/2025

Introduced Session

89th Legislature Regular Session

Bill Summary

AN ACT 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.

AI Summary

This bill increases the homestead exemption for school district property taxes from $100,000 to $140,000 and establishes mechanisms to protect school districts from potential revenue losses resulting from this increased exemption. The bill provides additional state aid to school districts for the 2023-2024, 2024-2025, and 2025-2026 school years to offset potential revenue reductions caused by the higher homestead exemption. The additional state aid would help districts maintain their ability to service existing debt and cover operational costs. The bill also includes detailed provisions for calculating and implementing these financial protections, such as comparing potential revenue with and without the exemption, and specifying how school districts can use the additional state aid. Importantly, the bill's implementation is contingent on voter approval of a related constitutional amendment, and it includes specific instructions for tax assessors and school districts on how to prepare and potentially adjust tax bills based on the potential constitutional amendment's outcome. The changes to the homestead exemption would take effect for ad valorem tax years beginning on or after January 1, 2025.

Committee Categories

Budget and Finance, Government Affairs

Sponsors (137)

Carol Alvarado (D)* Paul Bettencourt (R)* Brian Birdwell (R)* César Blanco (D)* Greg Bonnen (R)* Donna Campbell (R)* Molly Cook (D)* Brandon Creighton (R)* Sarah Eckhardt (D)* Pete Flores (R)* Roland Gutierrez (D)* Brent Hagenbuch (R)* Bob Hall (R)* Kelly Hancock (R)* Adam Hinojosa (R)* Chuy Hinojosa (D)* Joan Huffman (R)* Bryan Hughes (R)* Todd Hunter (R)* Phil King (R)* Lois Kolkhorst (R)* Trey Martinez Fischer (D)* José Menéndez (D)* Morgan Meyer (R)* Mayes Middleton (R)* Robert Nichols (R)* Tan Parker (R)* Angela Paxton (R)* Charles Perry (R)* Charles Schwertner (R)* Kevin Sparks (R)* Chris Turner (D)* Royce West (D)* Judith Zaffirini (D)* Daniel Alders (R),  Alma Allen (D),  Rafael Anchía (D),  Trent Ashby (R),  Jeffrey Barry (R),  Cecil Bell (R),  Keith Bell (R),  Salman Bhojani (D),  Rhetta Bowers (D),  Brad Buckley (R),  John Bucy (D),  Ben Bumgarner (R),  Angie Button (R),  Briscoe Cain (R),  Liz Campos (D),  Giovanni Capriglione (R),  David Cook (R),  Philip Cortez (D),  Charles Cunningham (R),  Pat Curry (R),  Drew Darby (R),  Aicha Davis (D),  Jay Dean (R),  Mano DeAyala (R),  Mark Dorazio (R),  Harold Dutton (D),  Paul Dyson (R),  Caroline Fairly (R),  Lulu Flores (D),  James Frank (R),  Erin Gámez (D),  Josey Garcia (D),  Linda Garcia (D),  Cassandra Garcia Hernandez (D),  Gary Gates (R),  Stan Gerdes (R),  Charlie Geren (R),  Barbara Gervin-Hawkins (D),  Vikki Goodwin (D),  Ryan Guillen (R),  Sam Harless (R),  Cody Harris (R),  Caroline Harris Davila (R),  Cole Hefner (R),  Hillary Hickland (R),  Donna Howard (D),  Lacey Hull (R),  Carrie Isaac (R),  Ann Johnson (D),  Helen Kerwin (R),  Ken King (R),  Stan Kitzman (R),  Suleman Lalani (D),  Stan Lambert (R),  Brooks Landgraf (R),  Jeff Leach (R),  Terri Leo-Wilson (R),  Janie Lopez (R),  Ray Lopez (D),  A.J. Louderback (R),  J.M. Lozano (R),  John Lujan (R),  Christian Manuel (D),  Mando Martinez (D),  Don McLaughlin (R),  John McQueeney (R),  Will Metcalf (R),  Terry Meza (D),  Borris Miles (D),  Eddie Morales (D),  Matt Morgan (R),  Sergio Muñoz (D),  Candy Noble (R),  Tom Oliverson (R),  Claudia Ordaz Perez (D),  Angelia Orr (R),  Jared Patterson (R),  Dennis Paul (R),  Mary Ann Perez (D),  Vincent Perez (D),  Dade Phelan (R),  Katrina Pierson (R),  Mihaela Plesa (D),  Richard Raymond (D),  Ron Reynolds (D),  Alan Schoolcraft (R),  Matt Shaheen (R),  Joanne Shofner (R),  Shelby Slawson (R),  John Smithee (R),  David Spiller (R),  Valoree Swanson (R),  Tony Tinderholt (R),  Steve Toth (R),  Ellen Troxclair (R),  Gary VanDeaver (R),  Cody Vasut (R),  Denise Villalobos (R),  Hubert Vo (D),  Charlene Ward Johnson (D),  Trey Wharton (R),  Terry Wilson (R),  Erin Zwiener (D), 

Last Action

See remarks for effective date (on 06/16/2025)

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Document Type Source Location
State Bill Page https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB4
Analysis (Enrolled) https://capitol.texas.gov/tlodocs/89R/analysis/html/SB00004F.htm
BillText https://capitol.texas.gov/tlodocs/89R/billtext/html/SB00004F.htm
Fiscal Note (Enrolled) https://capitol.texas.gov/tlodocs/89R/fiscalnotes/html/SB00004F.htm
Fiscal Note (Senate Amendments Printing) https://capitol.texas.gov/tlodocs/89R/fiscalnotes/html/SB00004A.htm
House Amendment (H 2) 2-Olcott https://capitol.texas.gov/tlodocs/89R/amendments/html/SB00004H22.HTM
House Amendment (H 2) 1-Meyer https://capitol.texas.gov/tlodocs/89R/amendments/html/SB00004H21.HTM
BillText https://capitol.texas.gov/tlodocs/89R/billtext/html/SB00004H.htm
Analysis (House Committee Report) https://capitol.texas.gov/tlodocs/89R/analysis/html/SB00004H.htm
Fiscal Note (Engrossed) https://capitol.texas.gov/tlodocs/89R/fiscalnotes/html/SB00004E.htm
BillText https://capitol.texas.gov/tlodocs/89R/billtext/html/SB00004E.htm
Senate Amendment (S 2) F2-Bettencourt https://capitol.texas.gov/tlodocs/89R/amendments/html/SB00004S2F2.HTM
Senate Amendment (S 2) F1-Bettencourt https://capitol.texas.gov/tlodocs/89R/amendments/html/SB00004S2F1.HTM
BillText https://capitol.texas.gov/tlodocs/89R/billtext/html/SB00004S.htm
Fiscal Note (Introduced) https://capitol.texas.gov/tlodocs/89R/fiscalnotes/html/SB00004I.htm
Analysis (Introduced) https://capitol.texas.gov/tlodocs/89R/analysis/html/SB00004I.htm
BillText https://capitol.texas.gov/tlodocs/89R/billtext/html/SB00004I.htm
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