TX HB642

Creates a new school district tax limitation for homeowners who have owned and occupied their residence homestead for at least 15 consecutive years and experienced a 120% or greater increase in school taxes during that period

Caps school district taxes at the amount imposed in the 15th year of homestead ownership once the 120% increase threshold is triggered, excluding taxes on improvements made during that period

Allows surviving spouses to continue receiving the tax limitation if the property remains their residence homestead after the qualifying owner's death

Permits school districts to increase taxes on limited properties only when improvements are made, calculated by applying the current tax rate to the added value of the improvement (repairs, government-required modifications, and casualty replacements are excluded)

Takes effect January 1, 2026, contingent on voter approval of a related constitutional amendment proposed by the 89th Legislature; tax limitation calculations cannot be based on increases occurring before the 2012 tax year