school employees get a new homestead tax break

The text as introduced · 551 words

89R16782 CS-D

By: Martinez Fischer
H.B. No. 5445

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation of a portion of

the appraised value of the residence homestead of a school district

employee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by

adding Section 11.136 to read as follows:

Sec. 11.136. RESIDENCE HOMESTEAD OF SCHOOL DISTRICT

EMPLOYEE. (a) In this section:

(1) "School district" has the meaning assigned by

Section 11.13.

(2) "School district employee" means a person who

receives compensation for service performed, other than as an

independent contractor, for a school district. The term does not

include a school district administrator.

(b) A full-time school district employee who is employed by

the district on January 1 and who has worked for the district since

the preceding September 1 or who is employed under a contract for

the full current school year is entitled to an exemption from

taxation by a taxing unit of a portion, determined as provided by

Subsection (c), of the appraised value of the person's residence

homestead.

(c) The amount of an exemption to which a person is entitled

under this section is equal to the total amount of the exemptions

the property owner is entitled to receive under Section 11.13.

(d) A person who applies for an exemption under this section

must show proof of employment by a school district in the manner

required by the chief appraiser. The comptroller may adopt rules

and forms for use in the administration of this section.

(e) A school district employee who qualifies for an

exemption from ad valorem taxation on the person's residence

homestead under this section and under Section 11.13 is entitled to

receive both exemptions.

SECTION 2. Section 11.43(c), Tax Code, is amended to read as

follows:

(c) An exemption provided by Section 11.13, 11.131, 11.132,

11.133, 11.134, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183,

11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),

11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35,

[ or ] 11.36, or 11.37, once allowed, need not be claimed in

subsequent years, and except as otherwise provided by Subsection

(e), the exemption applies to the property until it changes

ownership or the person's qualification for the exemption changes.

However, except as provided by Subsection (r), the chief appraiser

may require a person allowed one of the exemptions in a prior year

to file a new application to confirm the person's current

qualification for the exemption by delivering a written notice that

a new application is required, accompanied by an appropriate

application form, to the person previously allowed the exemption.

If the person previously allowed the exemption is 65 years of age or

older, the chief appraiser may not cancel the exemption due to the

person's failure to file the new application unless the chief

appraiser complies with the requirements of Subsection (q), if

applicable.

SECTION 3. To the extent of any conflict, this Act prevails

over another Act of the 89th Legislature, Regular Session, 2025,

relating to nonsubstantive additions to and corrections in enacted

codes.

SECTION 4. This Act takes effect January 1, 2026, and

applies only to taxes imposed for a tax year beginning on or after

that date.