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A BILL TO BE ENTITLED
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AN ACT
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relating to the provision of funding under the public school |
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finance system on the basis of property values that take into |
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account optional homestead exemptions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 7.062(c), Education Code, is amended to |
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read as follows: |
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(c) Except as otherwise provided by this subsection, if the |
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commissioner certifies that the amount appropriated for a state |
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fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds |
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the amount to which school districts are entitled under those |
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subchapters for that year, the commissioner shall use the excess |
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funds, in an amount not to exceed $20 million in any state fiscal |
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year, for the purpose of making grants under this section. The use |
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of excess funds under this subsection has priority over any |
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provision of Chapter 48 that permits or directs the use of excess |
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foundation school program funds, including Sections 48.258[, |
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48.259,] and 48.267. The commissioner is required to use excess |
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funds as provided by this subsection only if the commissioner is not |
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required to reduce the total amount of state funds allocated to |
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school districts under Section 48.266(f). |
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SECTION 2. Section 403.302(d), Government Code, as |
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effective until January 1, 2027, is amended to read as follows: |
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(d) For the purposes of this section, "taxable value" means |
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the market value of all taxable property less: |
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(1) the total dollar amount of any residence homestead |
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exemptions lawfully granted under Section 11.13(b) or (c), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(2) [one-half of] the total dollar amount of any |
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residence homestead exemptions granted under Section 11.13(n), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(3) the total dollar amount of any exemptions granted |
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before May 31, 1993, within a reinvestment zone under agreements |
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authorized by Chapter 312, Tax Code; |
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(4) subject to Subsection (e), the total dollar amount |
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of any captured appraised value of property that: |
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(A) is within a reinvestment zone created on or |
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before May 31, 1999, or is proposed to be included within the |
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boundaries of a reinvestment zone as the boundaries of the zone and |
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the proposed portion of tax increment paid into the tax increment |
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fund by a school district are described in a written notification |
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provided by the municipality or the board of directors of the zone |
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to the governing bodies of the other taxing units in the manner |
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provided by former Section 311.003(e), Tax Code, before May 31, |
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1999, and within the boundaries of the zone as those boundaries |
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existed on September 1, 1999, including subsequent improvements to |
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the property regardless of when made; |
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(B) generates taxes paid into a tax increment |
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fund created under Chapter 311, Tax Code, under a reinvestment zone |
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financing plan approved under Section 311.011(d), Tax Code, on or |
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before September 1, 1999; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(5) the total dollar amount of any captured appraised |
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value of property that: |
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(A) is within a reinvestment zone: |
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(i) created on or before December 31, 2008, |
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by a municipality with a population of less than 18,000; and |
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(ii) the project plan for which includes |
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the alteration, remodeling, repair, or reconstruction of a |
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structure that is included on the National Register of Historic |
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Places and requires that a portion of the tax increment of the zone |
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be used for the improvement or construction of related facilities |
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or for affordable housing; |
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(B) generates school district taxes that are paid |
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into a tax increment fund created under Chapter 311, Tax Code; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(6) the total dollar amount of any exemptions granted |
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under Section 11.251 or 11.253, Tax Code; |
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(7) the difference between the comptroller's estimate |
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of the market value and the productivity value of land that |
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qualifies for appraisal on the basis of its productive capacity, |
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except that the productivity value estimated by the comptroller may |
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not exceed the fair market value of the land; |
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(8) the portion of the appraised value of residence |
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homesteads of individuals who receive a tax limitation under |
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Section 11.26, Tax Code, on which school district taxes are not |
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imposed in the year that is the subject of the study, calculated as |
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if the residence homesteads were appraised at the full value |
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required by law; |
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(9) a portion of the market value of property not |
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otherwise fully taxable by the district at market value because of |
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action required by statute or the constitution of this state, other |
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than Section 11.311, Tax Code, that, if the tax rate adopted by the |
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district is applied to it, produces an amount equal to the |
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difference between the tax that the district would have imposed on |
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the property if the property were fully taxable at market value and |
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the tax that the district is actually authorized to impose on the |
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property, if this subsection does not otherwise require that |
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portion to be deducted; |
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(10) the market value of all tangible personal |
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property, other than manufactured homes, owned by a family or |
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individual and not held or used for the production of income; |
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(11) the appraised value of property the collection of |
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delinquent taxes on which is deferred under Section 33.06, Tax |
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Code; |
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(12) the portion of the appraised value of property |
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the collection of delinquent taxes on which is deferred under |
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Section 33.065, Tax Code; |
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(13) the amount by which the market value of property |
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to which Section 23.23 or 23.231, Tax Code, applies exceeds the |
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appraised value of that property as calculated under Section 23.23 |
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or 23.231, Tax Code, as applicable; and |
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(14) the total dollar amount of any exemptions granted |
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under Section 11.35, Tax Code. |
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SECTION 3. Section 403.302(d), Government Code, as |
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effective on January 1, 2027, is amended to read as follows: |
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|
(d) For the purposes of this section, "taxable value" means |
|
|
the market value of all taxable property less: |
|
|
(1) the total dollar amount of any residence homestead |
|
|
exemptions lawfully granted under Section 11.13(b) or (c), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
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|
(2) [one-half of] the total dollar amount of any |
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|
residence homestead exemptions granted under Section 11.13(n), Tax |
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|
Code, in the year that is the subject of the study for each school |
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|
district; |
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|
(3) the total dollar amount of any exemptions granted |
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|
before May 31, 1993, within a reinvestment zone under agreements |
|
|
authorized by Chapter 312, Tax Code; |
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|
(4) subject to Subsection (e), the total dollar amount |
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|
of any captured appraised value of property that: |
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|
(A) is within a reinvestment zone created on or |
|
|
before May 31, 1999, or is proposed to be included within the |
|
|
boundaries of a reinvestment zone as the boundaries of the zone and |
|
|
the proposed portion of tax increment paid into the tax increment |
|
|
fund by a school district are described in a written notification |
|
|
provided by the municipality or the board of directors of the zone |
|
|
to the governing bodies of the other taxing units in the manner |
|
|
provided by former Section 311.003(e), Tax Code, before May 31, |
|
|
1999, and within the boundaries of the zone as those boundaries |
|
|
existed on September 1, 1999, including subsequent improvements to |
|
|
the property regardless of when made; |
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|
(B) generates taxes paid into a tax increment |
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|
fund created under Chapter 311, Tax Code, under a reinvestment zone |
|
|
financing plan approved under Section 311.011(d), Tax Code, on or |
|
|
before September 1, 1999; and |
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|
(C) is eligible for tax increment financing under |
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|
Chapter 311, Tax Code; |
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|
(5) the total dollar amount of any captured appraised |
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|
value of property that: |
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(A) is within a reinvestment zone: |
|
|
(i) created on or before December 31, 2008, |
|
|
by a municipality with a population of less than 18,000; and |
|
|
(ii) the project plan for which includes |
|
|
the alteration, remodeling, repair, or reconstruction of a |
|
|
structure that is included on the National Register of Historic |
|
|
Places and requires that a portion of the tax increment of the zone |
|
|
be used for the improvement or construction of related facilities |
|
|
or for affordable housing; |
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|
(B) generates school district taxes that are paid |
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|
into a tax increment fund created under Chapter 311, Tax Code; and |
|
|
(C) is eligible for tax increment financing under |
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|
Chapter 311, Tax Code; |
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|
(6) the total dollar amount of any exemptions granted |
|
|
under Section 11.251 or 11.253, Tax Code; |
|
|
(7) the difference between the comptroller's estimate |
|
|
of the market value and the productivity value of land that |
|
|
qualifies for appraisal on the basis of its productive capacity, |
|
|
except that the productivity value estimated by the comptroller may |
|
|
not exceed the fair market value of the land; |
|
|
(8) the portion of the appraised value of residence |
|
|
homesteads of individuals who receive a tax limitation under |
|
|
Section 11.26, Tax Code, on which school district taxes are not |
|
|
imposed in the year that is the subject of the study, calculated as |
|
|
if the residence homesteads were appraised at the full value |
|
|
required by law; |
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|
(9) a portion of the market value of property not |
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|
otherwise fully taxable by the district at market value because of |
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|
action required by statute or the constitution of this state, other |
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|
than Section 11.311, Tax Code, that, if the tax rate adopted by the |
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|
district is applied to it, produces an amount equal to the |
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|
difference between the tax that the district would have imposed on |
|
|
the property if the property were fully taxable at market value and |
|
|
the tax that the district is actually authorized to impose on the |
|
|
property, if this subsection does not otherwise require that |
|
|
portion to be deducted; |
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|
(10) the market value of all tangible personal |
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|
property, other than manufactured homes, owned by a family or |
|
|
individual and not held or used for the production of income; |
|
|
(11) the appraised value of property the collection of |
|
|
delinquent taxes on which is deferred under Section 33.06, Tax |
|
|
Code; |
|
|
(12) the portion of the appraised value of property |
|
|
the collection of delinquent taxes on which is deferred under |
|
|
Section 33.065, Tax Code; |
|
|
(13) the amount by which the market value of a |
|
|
residence homestead to which Section 23.23, Tax Code, applies |
|
|
exceeds the appraised value of that property as calculated under |
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that section; and |
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(14) the total dollar amount of any exemptions granted |
|
|
under Section 11.35, Tax Code. |
|
|
SECTION 4. Section 48.259, Education Code, is repealed. |
|
|
SECTION 5. Section 403.302, Government Code, as amended by |
|
|
this Act, applies only to a school district property value study |
|
|
conducted for a tax year that begins on or after January 1, 2026. |
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SECTION 6. This Act takes effect September 1, 2025. |