S.B. No. 1
 
 
 
 
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 the resulting loss in local
  revenue.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.13(b), Tax Code, is amended to read as
  follows:
         (b)  An adult is entitled to exemption from taxation by a
  school district of $40,000 [$25,000] of the appraised value of the
  adult's residence homestead, except that only $5,000 of the
  exemption applies to an entity operating under former Chapter 17,
  18, 25, 26, 27, or 28, Education Code, as those chapters existed on
  May 1, 1995, as permitted by Section 11.301, Education Code.
         SECTION 2.  Section 46.071, Education Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsections
  (a-1), (b-1), and (c-1) to read as follows:
         (a)  Beginning with the 2015-2016 school year and continuing
  through the 2021-2022 school year, a school district is entitled to
  additional state aid under this subchapter to the extent that state
  and local revenue used to service debt eligible under this chapter
  is less than the state and local revenue that would have been
  available to the district under this chapter as it existed on
  September 1, 2015, if the increase in the residence homestead
  exemption under Section 1-b(c), Article VIII, Texas Constitution,
  and the additional limitation on tax increases under Section 1-b(d)
  of that article as proposed by S.J.R. 1, 84th Legislature, Regular
  Session, 2015, had not occurred.
         (a-1)  Beginning with the 2022-2023 school year, a school
  district is entitled to additional state aid under this subchapter
  to the extent that state and local revenue used to service debt
  eligible under this chapter is less than the state and local revenue
  that would have been available to the district under this chapter as
  it existed on September 1, 2021, if any increase in the residence
  homestead exemption under Section 1-b(c), Article VIII, Texas
  Constitution, as proposed by the 87th Legislature, 3rd Called
  Session, 2021, had not occurred.
         (b)  Subject to Subsections (c), (d), and (e) [(c)-(e)],
  additional state aid under this section through the 2021-2022
  school year is equal to the amount by which the loss of local
  interest and sinking revenue for debt service attributable to the
  increase in the residence homestead exemption under Section 1-b(c),
  Article VIII, Texas Constitution, and the additional limitation on
  tax increases under Section 1-b(d) of that article as proposed by
  S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by
  a gain in state aid under this chapter.
         (b-1)  Subject to Subsections (c-1), (d), and (e),
  additional state aid under this section beginning with the
  2022-2023 school year is equal to the amount by which the loss of
  local interest and sinking revenue for debt service attributable to
  any increase in the residence homestead exemption under Section
  1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
  Legislature, 3rd Called Session, 2021, is not offset by a gain in
  state aid under this chapter.
         (c)  For the purpose of determining state aid under
  Subsections (a) and (b) [this section], local interest and sinking
  revenue for debt service is limited to revenue required to service
  debt eligible under this chapter as of September 1, 2015, including
  refunding of that debt, subject to Section 46.061. The limitation
  imposed by Section 46.034(a) does not apply for the purpose of
  determining state aid under this section.
         (c-1)  For the purpose of determining state aid under
  Subsections (a-1) and (b-1), local interest and sinking revenue for
  debt service is limited to revenue required to service debt
  eligible under this chapter as of September 1, 2021, including
  refunding of that debt, subject to Section 46.061. The limitation
  imposed by Section 46.034(a) does not apply for the purpose of
  determining state aid under this section.
         SECTION 3.  Subchapter F, Chapter 48, Education Code, is
  amended by adding Section 48.2543 to read as follows:
         Sec. 48.2543.  ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
  (a) Beginning with the 2022-2023 school year, a school district is
  entitled to additional state aid to the extent that state and local
  revenue under this chapter and Chapter 49 is less than the state and
  local revenue that would have been available to the district under
  this chapter and Chapter 49 as those chapters existed on September
  1, 2021, if any increase in the residence homestead exemption under
  Section 1-b(c), Article VIII, Texas Constitution, as proposed by
  the 87th Legislature, 3rd Called Session, 2021, had not occurred.
         (b)  The lesser of the school district's currently adopted
  maintenance and operations tax rate or the adopted maintenance and
  operations tax rate for the 2021 tax year is used for the purpose of
  determining additional state aid under Subsection (a).
         SECTION 4.  The comptroller of public accounts may adopt
  rules for the purpose of implementing and administering the changes
  in law made by this Act, including rules relating to the form of
  certain information required to be provided by tax officials and
  the date on which the information must be provided.   
         SECTION 5.  Section 11.13, Tax Code, as amended by this Act,
  applies beginning with the 2022 tax year.
         SECTION 6.  (a) Except as provided by Subsection (b) of this
  section:
               (1)  this Act takes effect on the date on which the
  constitutional amendment proposed by the 87th Legislature, 3rd
  Called Session, 2021, increasing the amount of the residence
  homestead exemption from ad valorem taxation for public school
  purposes is approved by the voters; and
               (2)  if that amendment is not approved by the voters,
  this Act has no effect.
         (b)  Section 4 of this Act takes effect immediately if this
  Act receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.
  If this Act does not receive the vote necessary for immediate
  effect, Section 4 of this Act takes effect on the 91st day after the
  last day of the legislative session.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1 passed the Senate on
  September 22, 2021, by the following vote:  Yeas 30, Nays 1;
  October 15, 2021, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; October 15, 2021,
  House granted request of the Senate; October 18, 2021, Senate
  adopted Conference Committee Report by the following
  vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1 passed the House, with
  amendments, on October 15, 2021, by the following vote:  Yeas 140,
  Nays 4, one present not voting; October 15, 2021, House granted
  request of the Senate for appointment of Conference Committee;
  October 18, 2021, House adopted Conference Committee Report by the
  following vote:  Yeas 146, Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor