Relating to an increase in the amount of the exemption from ad valorem taxation by a school district of the appraised value of the residence homestead of a person who is elderly or disabled and the protection of school districts against certain losses in local revenue.

Contracts

• Real Estate Purchase Agreements: For transactions closing in Q3/Q4 2025, addenda must explicitly define liability for potential "Supplemental Tax Bills" issued post-closing. Standard proration clauses are insufficient.
• Vendor Agreements (ISDs): Renegotiate printing and mailing contracts immediately to include a contingency clause for a "rush" second mailing in late November 2025 if the amendment fails.
• Software Licensing: Ensure tax software vendors contractually guarantee readiness for "Provisional Roll" logic by June 1, 2025.

Hiring/Training

• Escrow Officers & Servicers: Staff must be trained to handle borrower inquiries regarding the "Provisional" stamp on tax bills.
• Title Officers: Training is required to calculate closings based on the provisional lower rate while advising clients of the claw-back risk.

Reporting & Record-Keeping

• Mandatory Bill Language: You cannot use 2024 templates. The 2025 tax bills must contain the specific warning language from Section 2.12(d-2) regarding the contingent election.
• Dual Ledgers: Tax Assessors must maintain the capability to activate a "Supplemental Tax Roll" immediately upon the failure of S.J.R. 85.
• Delinquency Tracking: If a supplemental bill is issued, a separate delinquency clock starts, with a hard deadline of March 1, 2026.

Fees & Costs

• Mailing Budgets: School districts must budget for a potential 100% increase in postage and printing costs for the 2025 cycle to cover the conditional supplemental bill.
• Escrow Shortages: Mortgage servicers face a high risk of portfolio-wide escrow shortages in December 2025 if they collect based on the lower provisional rate and the amendment fails.