Tex.
Educ. Code Section 48.259
Adjustment for Optional Homestead Exemption
(a)
In any school year, the commissioner may not provide funding under this chapter or Chapter 46 (Assistance with Instructional Facilities and Payment of Existing Debt) based on a school district’s taxable value of property computed in accordance with Section 403.302 (Determination of School District Property Values)(d)(2), Government Code, unless:(1)
funds are specifically appropriated for purposes of this section; or(2)
the commissioner determines that the total amount of state funds appropriated for purposes of the Foundation School Program for the school year exceeds the amount of state funds distributed to school districts in accordance with Section 48.266 (Distribution of Foundation School Fund) based on the taxable values of property in school districts computed in accordance with Section 403.302 (Determination of School District Property Values)(d), Government Code, without any deduction for residence homestead exemptions granted under Section 11.13 (Residence Homestead)(n), Tax Code.(b)
In making a determination under Subsection (a)(2), the commissioner shall:(1)
notwithstanding Section 48.266 (Distribution of Foundation School Fund)(b), reduce the entitlement under this chapter of a school district whose final taxable value of property is higher than the estimate under Section 48.269 (Estimates Required) and make payments to school districts accordingly; and(2)
give priority to school districts that, due to factors beyond the control of the board of trustees, experience a rapid decline in the tax base used in calculating taxable values in excess of four percent of the tax base used in the preceding year.(c)
In the first year of a state fiscal biennium, before providing funding as provided by Subsection (a)(2), the commissioner shall ensure that sufficient appropriated funds for purposes of the Foundation School Program are available for the second year of the biennium, including funds to be used for purposes of Section 48.258 (Adjustment for Rapid Decline in Taxable Value of Property).(d)
If the commissioner determines that the amount of funds available under Subsection (a)(1) or (2) does not at least equal the total amount of state funding to which districts would be entitled if state funding under this chapter were based on the taxable values of property in school districts computed in accordance with Section 403.302 (Determination of School District Property Values)(d)(2), Government Code, the commissioner may, to the extent necessary, provide state funding based on a uniform lesser fraction of the deduction under Section 403.302 (Determination of School District Property Values)(d)(2), Government Code.(e)
The commissioner shall notify school districts as soon as practicable as to the availability of funds under this section. For purposes of computing a voter-approval tax rate under Section 26.08 (Automatic Election to Approve Tax Rate of School District), Tax Code, a district shall adjust the district’s tax rate limit to reflect assistance received under this section.
Source:
Section 48.259 — Adjustment for Optional Homestead Exemption, https://statutes.capitol.texas.gov/Docs/ED/htm/ED.48.htm#48.259 (accessed Jun. 5, 2024).
