Education Code § 46.071

Sec. 46.071. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION AND LIMITATION ON TAX INCREASES. (a) Beginning with the 2015-2016 school year and continuing through the 2021-2022 school year, a school district is entitled to additional state aid under this subchapter to the extent that state and local revenue used to service debt eligible under this chapter is less than the state and local revenue that would have been available to the district under this chapter as it existed on September 1, 2015, if the increase in the residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, and the additional limitation on tax increases under Section 1-b(d) of that article as proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015, had not occurred. (a-1) For the 2022-2023 school year, a school district is entitled to additional state aid under this subchapter to the extent that state and local revenue used to service debt eligible under this chapter is less than the state and local revenue that would have been available to the district under this chapter as it existed on September 1, 2021, if any increase in the residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd Called Session, 2021, had not occurred. (a-2) For the 2023-2024 and 2024-2025 school years, a school district is entitled to additional state aid under this subchapter to the extent that state and local revenue used to service debt eligible under this chapter is less than the state and local revenue that would have been available to the district under this chapter as it existed on September 1, 2022, if any increase in a residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, and any additional limitation on tax increases under Section 1-b(d) of that article as proposed by the 88th Legislature, 2nd Called Session, 2023, had not occurred. (a-3) Beginning with the 2025-2026 school year, a school district is entitled to additional state aid under this subchapter to the extent that state and local revenue used to service debt eligible under this chapter is less than the state and local revenue that would have been available to the district under this chapter as it existed on January 1, 2025, if any increase in the residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, as proposed by the 89th Legislature, Regular Session, 2025, had not occurred. (a-4) Beginning with the 2025-2026 school year, a school district is entitled to additional state aid under this subchapter to the extent that state and local revenue used to service debt eligible under this chapter is less than the state and local revenue that would have been available to the district under this chapter as it existed on January 1, 2025, if any increase in the residence homestead exemption for a person who is elderly or disabled under Section 1-b(c), Article VIII, Texas Constitution, as proposed by the 89th Legislature, Regular Session, 2025, had not occurred. (b) Subject to Subsections (c), (d), and (e), additional state aid under this section through the 2021-2022 school year is equal to the amount by which the loss of local interest and sinking revenue for debt service attributable to the increase in the residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, and the additional limitation on tax increases under Section 1-b(d) of that article as proposed by S.J.R. 1, 84th Legislature, Regular Session, 2015, is not offset by a gain in state aid under this chapter. (b-1) Subject to Subsections (c-1), (d), and (e), additional state aid under this section for the 2022-2023 school year is equal to the amount by which the loss of local interest and sinking revenue for debt service attributable to any increase in the residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd Called Session, 2021, is not offset by a gain in state aid under this chapter. (b-2) Subject to Subsections (c-2), (d), and (e), additional state aid under this section for the 2023-2024 and 2024-2025 school years is equal to the amount by which the loss of local interest and sinking revenue for debt service attributable to any increase in a residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, and any additional limitation on tax increases under Section 1-b(d) of that article as proposed by the 88th Legislature, 2nd Called Session, 2023, is not offset by a gain in state aid under this chapter. (b-3) Subject to Subsections (c-3), (d), and (e), additional state aid under this section beginning with the 2025-2026 school year is equal to the amount by which the loss of local interest and sinking revenue for debt service attributable to any increase in a residence homestead exemption under Section 1-b(c), Article VIII, Texas Constitution, as proposed by the 89th Legislature, Regular Session, 2025, is not offset by a gain in state aid under this chapter. (b-4) Subject to Subsections (c-4), (d), and (e), additional state aid under this section beginning with the 2025-2026 school year is equal to the amount by which the loss of local interest and sinking revenue for debt service attributable to any increase in a residence homestead exemption for a person who is elderly or disabled under Section 1-b(c), Article VIII, Texas Constitution, as proposed by the 89th Legislature, Regular Session, 2025, is not offset by a gain in state aid under this chapter. (c) For the purpose of determining state aid under Subsections (a) and (b), local interest and sinking revenue for debt service is limited to revenue required to service debt eligible under this chapter as of September 1, 2015, including refunding of that debt, subject to Section 46.061. The limitation imposed by Section 46.034(a) does not apply for the purpose of determining state aid under this section. (c-1) For the purpose of determining state aid under Subsections (a-1) and (b-1), local interest and sinking revenue for debt service is limited to revenue required to service debt eligible under this chapter as of September 1, 2021, including refunding of that debt, subject to Section 46.061. The limitation imposed by Section 46.034(a) does not apply for the purpose of determining state aid under this section. (c-2) For the purpose of determining state aid under Subsections (a-2) and (b-2), local interest and sinking revenue for debt service is limited to revenue required to service debt eligible under this chapter as of September 1, 2023, or authorized by the voters but not yet issued as of September 1, 2023, that later becomes eligible under this chapter, including refunding of that debt, subject to Section 46.061. The limitation imposed by Section 46.034(a) does not apply for the purpose of determining state aid under this section. (c-3) For the purpose of determining state aid under Subsections (a-3) and (b-3), local interest and sinking revenue for debt service is limited to revenue required to service debt eligible under this chapter as of September 1, 2025, including refunding of that debt, subject to Section 46.061. The limitation imposed by Section 46.034(a) does not apply for the purpose of determining state aid under this section. (c-4) For the purpose of determining state aid under Subsections (a-4) and (b-4), local interest and sinking revenue for debt service is limited to revenue required to service debt eligible under this chapter as of September 1, 2025, including refunding of that debt, subject to Section 46.061. The limitation imposed by Section 46.034(a) does not apply for the purpose of determining state aid under this section. (d) If the amount required to pay debt service eligible under this section is less than the sum of state and local assistance provided under this chapter, including the amount of additional aid provided under this section, the district may not receive aid under this section in excess of the amount that, when added to the district's local interest and sinking revenue for debt service for the school year, as defined by this section, and state aid under Subchapters A and B, equals the amount required to pay the eligible debt service. (d-1) If the amount required to pay debt service on bonds issued under Subchapter A, Chapter 45, is less than the sum of state assistance provided under this chapter, including the amount of additional state aid provided under this section, and the revenue from the district's interest and sinking tax for a school year, the commissioner shall, except as provided by Subsection (d-2), reduce the amount of additional state aid provided under this section by the difference between: (1) the sum of state assistance provided under this chapter, including the amount of additional state aid provided under this section, and the revenue from the district's interest and sinking tax for the school year; and (2) the amount required to pay debt service on bonds described by this subsection for the school year. Text of subsection as added by Acts 2025, 89th Leg., R.S., Ch. 338 (S.B. 4), Sec. 1.02 (d-2) The amount of additional state aid provided under this section may not be reduced under Subsection (d-1) to an amount below the additional state aid provided under Subsection (a-3). Text of subsection as added by Acts 2025, 89th Leg., R.S., Ch. 340 (S.B. 23), Sec. 1.02 (d-2) The amount of additional state aid provided under this section may not be reduced under Subsection (d-1) to an amount below the additional state aid provided under Subsection (a-4). (e) The commissioner, using information provided by the comptroller and other information as necessary, shall compute the amount of additional state aid to which a district is entitled under this section. A determination by the commissioner under this section is final and may not be appealed. (f) A school district may use additional state aid received under this section only to pay the principal of and interest on the bonds for which the district received the aid. Added by Acts 2015, 84th Leg., R.S., Ch. 465 (S.B. 1), Sec. 23, eff. November 3, 2015. Amended by: Acts 2021, 87th Leg., 3rd C.S., Ch. 4 (S.B. 1), Sec. 2, eff. May 7, 2022. Acts 2023, 88th Leg., 2nd C.S., Ch. 1 (S.B. 2), Sec. 3.03, eff. November 7, 2023. Acts 2025, 89th Leg., R.S., Ch. 338 (S.B. 4), Sec. 1.02, eff. November 4, 2025. Acts 2025, 89th Leg., R.S., Ch. 338 (S.B. 4), Sec. 2.01, eff. June 16, 2025. Acts 2025, 89th Leg., R.S., Ch. 340 (S.B. 23), Sec. 1.02, eff. November 4, 2025.