Texas HB558 amends the public school finance system to account for optional homestead exemptions in property values.

Texas HB558 modifies the public school finance system by adjusting how property values are calculated for funding purposes. It specifies that certain exemptions, such as those for residence homesteads and deferred tax collection, should be deducted from the taxable value of property. The bill also repeals Section 48.259 of the Education Code and amends Section 403.302 of the Government Code, effective from January 1, 2026, and January 1, 2027, respectively. The changes take effect on September 1, 2025.

Texas HB558 amends the public school finance system to account for optional homestead exemptions in property values.

Texas HB558 modifies the public school finance system by adjusting how property values are calculated for funding purposes. It specifies that certain exemptions, such as those for residence homesteads and deferred tax collection, should be deducted from the taxable value of property. The bill also repeals Section 48.259 of the Education Code and amends Section 403.302 of the Government Code, effective from January 1, 2026, and January 1, 2027, respectively. The changes take effect on September 1, 2025.