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Senate Bill 1 |
Senate Author: Nelson et al. |
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Effective: See below |
House Sponsor: Bonnen, Dennis et al. |
Senate Bill 1 amends the Tax Code, Education Code, and Government Code to increase the amount of the residence homestead exemption from property taxation by a school district from $15,000 to $25,000; to provide for a reduction of the limitation on the total amount of school district property taxes that may be imposed on the homestead of an elderly or disabled person to reflect the increased exemption amount; and to prohibit the governing body of a school district, municipality, or county that has adopted an optional residence homestead property tax exemption from reducing the amount of or repealing the exemption for a period expiring December 31, 2019.
Senate Bill 1 holds school districts harmless for the loss of tax revenue resulting from the increased homestead exemption amount by entitling the districts to additional state aid to the extent that revenue under existing funding formulas does not provide full reimbursement. The bill's effectiveness is contingent on voter approval of the constitutional amendment proposed by Senate Joint Resolution 1 and the bill takes effect on the date that constitutional amendment takes effect, except for certain bill provisions relating to implementation of the homestead exemption increase for the 2015 tax year and the 2015-2016 school year, which take effect June 15, 2015, and the provisions of the bill entitling school districts to additional state aid to offset lost revenue relating to the increased homestead exemption amount for the 2017-2018 school year and beyond, which take effect September 1, 2017.