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.

Contracts

• Software Vendors: School districts and counties must amend Master Services Agreements (MSAs) with tax software vendors to mandate delivery of "dual-calculation" patches by September 1, 2025.
• Collection Agreements: Contracts between school districts and tax assessor-collectors must be updated to authorize and fund a potential second mailing (Supplemental Bill) in December 2025, should the amendment fail.

Hiring/Training

• Mortgage Servicing: Customer support staff must be trained on the "Provisional Tax Bill" concept to handle borrower inquiries regarding escrow adjustments and potential shortages.
• Tax Office Staffing: Tax Assessors require contingency staffing plans to manage the potential surge in processing Supplemental Bills in December 2025 and January 2026.

Reporting & Record-Keeping

• Mandatory Notice: Tax bills mailed in Fall 2025 must include the specific statutory disclaimer mandated by Section 2.14 (*"If the Texas Legislature had not enacted..."*).
• Dual Liability Tracking: Systems must track two distinct liabilities per account: Scenario A (Amendment Passes) and Scenario B (Amendment Fails) to generate accurate Supplemental Bills if necessary.

Fees & Costs

• Administrative Costs: Districts face doubled postage and printing costs if the amendment fails and a second billing is required.
• Escrow Liquidity: Mortgage servicers face significant liquidity risks regarding escrow shortages if they collect based on the lower tax rate and the amendment fails, requiring immediate payment of the Supplemental Bill.