TexasSB 2389th Legislature Regular SessionSenateWALLET

Relating to an increase in the amount of the exemption from ad valorem taxation by a school district of the appraised value of the residence homestead of a person who is elderly or disabled and the protection of school districts against certain losses in local revenue.

Sponsored By: Diego M. Bernal, Paul Bettencourt (Republican), Greg Bonnen, Todd Hunter, Trey Martinez Fischer, Morgan Meyer

Signed by Governor

AgingDisabilities, Persons withEducation--Primary & Secondary--FinanceGovernorProperty Interests--HomesteadTaxation--Property-Appraisals & Appraisal DistrictsTaxation--Property-ExemptionsTaxation--School DistrictCOUNTY TAX ASSESSOR-COLLECTORSEDUCATION AGENCY, TEXASEDUCATION, COMMISSIONER OFLEGISLATIVE BUDGET BOARD

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Bigger school tax break for older homeowners

The law raises the school tax homestead exemption for adults age 65 or older or disabled from $10,000 to $60,000. This exemption is in addition to other homestead exemptions. The increase requires voter approval of the S.J.R. 85 constitutional amendment; without approval, it has no effect. With approval, it applies to tax years beginning January 1, 2025. Your savings depend on your school district's tax rate.

State aid protects school debt payments

The state provides school districts additional aid for specified losses in money used to pay eligible debt. Aid for 2023–2024 and 2024–2025 covers losses tied to the 2023 constitutional changes. Beginning in 2025–2026, aid also covers losses from the larger exemption for older or disabled homeowners, using a January 1, 2025 baseline without that amendment. Covered local revenue is limited to payments on debt eligible as of September 1, 2025, including refinanced debt. Aid is reduced for amounts above debt-payment needs, but cannot fall below the amount calculated under the new baseline rule.

State aid replaces lost school operating money

Beginning in 2025–2026, school districts receive extra state aid for school funding losses caused by the larger older-or-disabled homestead exemption. Aid replaces shortfalls under the state's school funding and revenue-sharing programs compared with their rules on September 1, 2024. The calculation uses each district's 2024 tax-year maintenance and operations tax rate. The law sets no fixed payment for each district or household.

Provisional homeowner bills may require extra taxes

For 2025, school districts must initially apply the larger exemption when it lowers a homestead's taxes and mark the bill provisional. Approval of S.J.R. 85 at the November 4, 2025 election makes that bill final. Rejection requires a supplemental bill for the difference by December 1, 2025, or as soon as practical. Supplemental taxes are due on receipt and become delinquent if unpaid before March 1, 2026. These billing and payment rules expire December 31, 2026.

School election delays carry district boundary risks

Districts that have never held a Chapter 49 revenue-sharing election can request a delay by agreeing to reduce excess local revenue for 2025–2026. The education commissioner must approve when the district stays within its allowed revenue assuming approval of the constitutional amendment. The commissioner sets the election deadline. If the election is not held or voters reject the district proposal, the commissioner must order needed boundary transfers or mergers by 2026–2027. This rule expires September 1, 2027.

Sponsors & Cosponsors

Sponsors

  • Diego M. Bernal

    House

  • Paul Bettencourt

    Republican • Senate

  • Greg Bonnen

    House

  • Todd Hunter

    House

  • Trey Martinez Fischer

    House

  • Morgan Meyer

    House

Cosponsors

  • Daniel Alders

    House

  • Alma A. Allen

    House

  • Carol Alvarado

    Democratic • Senate

  • Rafael Anchía

    House

  • Trent Ashby

    House

  • Jeff Barry

    House

  • Cecil Bell Jr.

    House

  • Keith Bell

    House

  • Salman Bhojani

    House

  • Brian Birdwell

    Republican • Senate

  • César Blanco

    Democratic • Senate

  • Rhetta Andrews Bowers

    House

  • Brad Buckley

    House

  • John H. Bucy lll

    House

  • Benjamin Bumgarner

    House

  • Angie Chen Button

    House

  • Briscoe Cain

    House

  • Donna Campbell

    Republican • Senate

  • Elizabeth "Liz" Campos

    House

  • Giovanni Capriglione

    House

  • Molly Cook

    Democratic • Senate

  • Philip Cortez

    House

  • Creighton

    Affiliation unavailable

  • Charles Cunningham

    House

  • Pat Curry

    House

  • Drew Darby

    House

  • Aicha Davis

    House

  • Mano DeAyala

    House

  • Jay Dean

    House

  • Mark Dorazio

    House

  • Harold V. Dutton Jr.

    House

  • Paul Dyson

    House

  • Caroline Fairly

    House

  • Pete Flores

    Republican • Senate

  • James Frank

    House

  • Cassandra Garcia Hernandez

    House

  • Josey Garcia

    House

  • Linda Garcia

    House

  • Gary Gates

    House

  • Stan Gerdes

    House

  • Charlie Geren

    House

  • Barbara Gervin-Hawkins

    House

  • Vikki Goodwin

    House

  • Ryan Guillen

    House

  • Roland Gutierrez

    Democratic • Senate

  • Erin Gámez

    House

  • Brent Hagenbuch

    Republican • Senate

  • Bob Hall

    Republican • Senate

  • Hancock

    Affiliation unavailable

  • Sam Harless

    House

  • Cody Harris

    House

  • Caroline Harris Davila

    House

  • Cole Hefner

    House

  • Hillary Hickland

    House

  • Adam Hinojosa

    Republican • Senate

  • Juan "Chuy" Hinojosa

    Democratic • Senate

  • Donna Howard

    House

  • Joan Huffman

    Republican • Senate

  • Bryan Hughes

    Republican • Senate

  • Lacey Hull

    House

  • Carrie Isaac

    House

  • Ann Johnson

    House

  • Helen Kerwin

    House

  • Phil King

    Republican • Senate

  • Stan Kitzman

    House

  • Lois Kolkhorst

    Republican • Senate

  • Suleman Lalani

    House

  • Stan Lambert

    House

  • Brooks Landgraf

    House

  • Jeff Leach

    House

  • Terri Leo Wilson

    House

  • Janie Lopez

    House

  • Ray Lopez

    House

  • AJ Louderback

    House

  • J. M. Lozano

    House

  • John Lujan

    House

  • Christian Manuel

    House

  • Armando "Mando" Martinez

    House

  • Don McLaughlin

    House

  • John McQueeney

    House

  • José Menéndez

    Democratic • Senate

  • Will Metcalf

    House

  • Terry Meza

    House

  • Mayes Middleton

    Republican • Senate

  • Borris L. Miles

    Democratic • Senate

  • Eddie Morales

    House

  • Matt Morgan

    House

  • Sergio Muñoz Jr.

    House

  • Robert Nichols

    Republican • Senate

  • Candy Noble

    House

  • Tom Oliverson

    House

  • Claudia Ordaz

    House

  • Angelia Orr

    House

  • Tan Parker

    Republican • Senate

  • Jared Patterson

    House

  • Dennis Paul

    House

  • Angela Paxton

    Republican • Senate

  • Mary Ann Perez

    House

  • Vincent Perez

    House

  • Charles Perry

    Republican • Senate

  • Dade Phelan

    House

  • Katrina Pierson

    House

  • Mihaela Plesa

    House

  • Richard Peña Raymond

    House

  • Ron Reynolds

    House

  • Alan Schoolcraft

    House

  • Charles Schwertner

    Republican • Senate

  • Matt Shaheen

    House

  • Joanne Shofner

    House

  • Shelby Slawson

    House

  • John T. Smithee

    House

  • Kevin Sparks

    Republican • Senate

  • Valoree Swanson

    House

  • Tony Tinderholt

    House

  • Steve Toth

    House

  • Ellen Troxclair

    House

  • VanDeaver

    Affiliation unavailable

  • Cody Vasut

    House

  • Denise Villalobos

    House

  • Hubert Vo

    House

  • Charlene Ward Johnson

    House

  • Royce West

    Democratic • Senate

  • Trey Wharton

    House

  • Terry M. Wilson

    House

  • Judith Zaffirini

    Democratic • Senate

  • Erin Zwiener

    House

Roll Call Votes

All Roll Calls

Yes: 471 • No: 1

Senate vote • 5/29/2025

Record vote

Yes: 30 • No: 1

House vote • 5/21/2025

Record vote

Yes: 141 • No: 0

House vote • 5/20/2025

Record vote

Yes: 139 • No: 0

House vote • 5/20/2025

Record vote

Yes: 142 • No: 0

Senate vote • 4/23/2025

Record vote

Yes: 0 • No: 0

Senate vote • 4/23/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Ways & Means

Yes: 12 • No: 0

Senate vote • Unknown

Committee vote: Local Government

Yes: 7 • No: 0

Actions Timeline

  1. See remarks for effective date

    6/16/2025House
  2. Signed by the Governor

    6/16/2025House
  3. Sent to the Governor

    6/1/2025House
  4. Signed in the House

    6/1/2025House
  5. Signed in the Senate

    5/31/2025Senate
  6. Reported enrolled

    5/30/2025Senate
  7. Senate concurs in House amendment(s)-reported

    5/29/2025House
  8. Record vote

    5/29/2025Senate
  9. Senate concurs in House amendment(s)

    5/29/2025Senate
  10. Read

    5/29/2025Senate
  11. House amendment(s) laid before the Senate

    5/29/2025Senate
  12. House passage as amended reported

    5/21/2025Senate
  13. Statement(s) of vote recorded in Journal

    5/21/2025House
  14. Record vote (RV#3117)

    5/21/2025House
  15. Passed

    5/21/2025House
  16. Read 3rd time

    5/21/2025House
  17. Additional sponsor(s) authorized

    5/21/2025House
  18. Rules suspended

    5/21/2025House
  19. Additional sponsor(s) authorized

    5/20/2025House
  20. Rules suspended

    5/20/2025House
  21. Record vote (RV#3058)

    5/20/2025House
  22. Passed to 3rd reading as amended

    5/20/2025House
  23. Record vote (RV#3057)

    5/20/2025House
  24. Amended (1-Meyer)

    5/20/2025House
  25. Read 2nd time

    5/20/2025House

Bill Text

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