Texas homeowners would see a bigger school-tax break under a measure now headed to voters

Texas homeowners would shave another chunk off the school-tax portion of their property bill under a constitutional amendment lawmakers sent to voters this spring. The proposal (SB 4) raises the residence homestead exemption from school district ad valorem taxation and adds a hold-harmless clause meant to keep school districts from losing local revenue when the bigger break kicks in.

Sen. Bettencourt, who carried the bill in the upper chamber, paired it with companion legislation that adjusts state aid formulas so districts are reimbursed for the foregone collections. The Senate passed the measure on February 12, and the House cleared it on May 20 after adopting a set of conforming amendments.

Gov. Greg Abbott signed the package on June 15, but the exemption increase only takes effect if voters ratify the underlying constitutional amendment. The question goes on the November ballot, where Texans will decide whether to lock the bigger homestead break into the state constitution.