Bill > HB2611

This bill proposes several changes to property tax and school district funding in Texas, primarily focused on increasing the homestead exemption and protecting school districts from potential revenue losses. Specifically, the bill increases the school district homestead exemption from $100,000 to $140,000, effective for tax years beginning on or after January 1, 2025. To mitigate potential financial impacts on school districts, the bill provides mechanisms for additional state aid to compensate for potential revenue losses resulting from the increased homestead exemption. The bill includes complex provisions for calculating and providing state aid to school districts for the 2023-2024, 2024-2025, and 2025-2026 school years, taking into account various potential changes in property tax laws and exemptions. It also establishes transitional rules for school district elections, tax rate calculations, and tax bill preparations, with many of these provisions set to expire by September 1, 2026 or December 31, 2026. The bill's full implementation is contingent on voter approval of a related constitutional amendment, and it will take effect either immediately (with a two-thirds legislative vote) or on September 1, 2025.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2611