Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against certain losses in local revenue.

HB 2611 increases Texas homeowners' property tax exemption for primary residences (homesteads) from $100,000 to $140,000 per adult. This directly affects homeowners who qualify as primary residents and school districts that lose local tax revenue due to the exemption change. The bill requires the state to provide additional funding to school districts to offset revenue losses from the increased exemption, specifically for the 2023-2025 and 2025-2026 school years. It creates a mechanism where school districts receive state aid equal to the lost local tax revenue from the exemption increase, ensuring funding stability. The bill is pending in the Texas Legislature's Ways & Means Committee.