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Senate Bill 2 (2nd C.S.) |
Senate Author: Bettencourt et al. |
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Effective: See below |
House Sponsor: Meyer et al. |
Senate Bill 2, the Property Tax Relief Act, amends the Education Code, Government Code, and Tax Code to provide for a $0.107 reduction in a public school district's maximum compressed tax rate for the 2023‑2024 school year, increase the amount of the general school district residence homestead property tax exemption from $40,000 to $100,000, and provide for a temporary circuit breaker limitation of 20 percent on the annual appraised‑value increase for non‑homestead property valued at not more than $5 million. Among other provisions, the bill also does the following:
· prohibits the governing body of a school district, municipality, or county that adopted a local option general residence homestead exemption for the 2022 tax year from reducing the amount of or repealing the exemption;
· revises certain calculations for the ceiling on the school district taxes that may be imposed on the residence homestead of an elderly or disabled individual;
· revises the information required to be posted online by the Texas Education Agency for purposes of calculating the amount of the elderly and disabled tax ceiling;
· provides additional state aid for school districts beginning with the 2023‑2024 school year to account for funding reductions attributable to property tax changes made by the bill;
· makes temporary adjustments to the recapture process for school districts with local revenue in excess of entitlement to account for the election that will be held on the bill's corresponding constitutional amendment and its effects on local revenue levels for the 2023‑2024 school year if approved, including by providing for the delay of an election held by certain districts to approve an option to reduce local revenue levels;
· for counties with a population of 75,000 or more, increases the membership of the appraisal district's board of directors by three members, to be elected in nonpartisan elections, and provides for the appointment of members of the appraisal review board by the appraisal district's board of directors; and
· sets out transitional tax year provisions.
Except as otherwise provided by the bill, the bill takes effect October 12, 2023.