By: Schofield H.B. No. 55       A BILL TO BE ENTITLED   AN ACT   relating to the provision of funding under the public school   finance system on the basis of property values that take into   account optional homestead exemptions.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 7.062(c), Education Code, is amended to   read as follows:          (c)  Except as otherwise provided by this subsection, if the   commissioner certifies that the amount appropriated for a state   fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds   the amount to which school districts are entitled under those   subchapters for that year, the commissioner shall use the excess   funds, in an amount not to exceed $20 million in any state fiscal   year, for the purpose of making grants under this section.  The use   of excess funds under this subsection has priority over any   provision of Chapter 48 that permits or directs the use of excess   foundation school program funds, including Sections 48.258[,   48.259,] and 48.267.  The commissioner is required to use excess   funds as provided by this subsection only if the commissioner is not   required to reduce the total amount of state funds allocated to   school districts under Section 48.266(f).          SECTION 2.  Section 403.302(d), Government Code, as   effective until January 1, 2027, is amended to read as follows:          (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;                (2)  [one-half of] the total dollar amount of any   residence homestead exemptions granted under Section 11.13(n), Tax   Code, in the year that is the subject of the study for each school   district;                (3)  the total dollar amount of any exemptions granted   before May 31, 1993, within a reinvestment zone under agreements   authorized by Chapter 312, Tax Code;                (4)  subject to Subsection (e), the total dollar amount   of any captured appraised value of property that:                      (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;                      (B)  generates taxes paid into a tax increment   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                      (C)  is eligible for tax increment financing under   Chapter 311, Tax Code;                (5)  the total dollar amount of any captured appraised   value of property that:                      (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;                      (B)  generates school district taxes that are paid   into a tax increment fund created under Chapter 311, Tax Code; and                      (C)  is eligible for tax increment financing under   Chapter 311, Tax Code;                (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;                (9)  a portion of the market value of property not   otherwise fully taxable by the district at market value because of   action required by statute or the constitution of this state, other   than Section 11.311, Tax Code, that, if the tax rate adopted by the   district is applied to it, produces an amount equal to the   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;                (10)  the market value of all tangible personal   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 property   to which Section 23.23 or 23.231, Tax Code, applies exceeds the   appraised value of that property as calculated under Section 23.23   or 23.231, Tax Code, as applicable; and                (14)  the total dollar amount of any exemptions granted   under Section 11.35, Tax Code.          SECTION 3.  Section 403.302(d), Government Code, as   effective on January 1, 2027, is amended to read as follows:          (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;                (2)  [one-half of] the total dollar amount of any   residence homestead exemptions granted under Section 11.13(n), Tax   Code, in the year that is the subject of the study for each school   district;                (3)  the total dollar amount of any exemptions granted   before May 31, 1993, within a reinvestment zone under agreements   authorized by Chapter 312, Tax Code;                (4)  subject to Subsection (e), the total dollar amount   of any captured appraised value of property that:                      (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;                      (B)  generates taxes paid into a tax increment   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                      (C)  is eligible for tax increment financing under   Chapter 311, Tax Code;                (5)  the total dollar amount of any captured appraised   value of property that:                      (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;                      (B)  generates school district taxes that are paid   into a tax increment fund created under Chapter 311, Tax Code; and                      (C)  is eligible for tax increment financing under   Chapter 311, Tax Code;                (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;                (9)  a portion of the market value of property not   otherwise fully taxable by the district at market value because of   action required by statute or the constitution of this state, other   than Section 11.311, Tax Code, that, if the tax rate adopted by the   district is applied to it, produces an amount equal to the   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;                (10)  the market value of all tangible personal   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   that section; and                (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.          SECTION 6.  This Act takes effect September 1, 2025.