Regular Session
Government Affairs & Regulatory Compliance Analysis
SB23 mandates a provisional tax billing system for the 2025 Tax Year, contingent on the November 4, 2025, constitutional amendment election. While the law increases the elderly/disabled homestead exemption from $10,000 to $60,000, its primary operational impact is the creation of a "dual-scenario" tax cycle that forces mortgage servicers, title companies, and school districts to manage provisional calculations and potential supplemental billings.
Sen. Paul Bettencourt·Senate Bill·Regular Session
Central Appraisal Districts • County Tax Assessor-Collectors • Texas Education Agency (TEA)
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about SB23
SB23 mandates a provisional tax billing system for the 2025 Tax Year, contingent on the November 4, 2025, constitutional amendment election. While the law increases the elderly/disabled homestead exemption from $10,000 to $60,000, its primary operational impact is the creation of a "dual-scenario" tax cycle that forces mortgage servicers, title companies, and school districts to manage provisional calculations and potential supplemental billings.
SB23 was authored by Texas Senator Paul Bettencourt during the Regular Session.
SB23 was signed into law by Governor Greg Abbott on June 16, 2025.
SB23 is enforced by Central Appraisal Districts, County Tax Assessor-Collectors and Texas Education Agency (TEA).
The regulatory priority for SB23 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB23 is estimated as "low". This may vary based on industry and implementation requirements.
SB23 addresses topics including aging, disabilities, persons with, education, education--primary & secondary and education--primary & secondary--finance.
Key dates for SB23: Effective date is 2025-09-01. Rulemaking: Calculate and publish maximum compressed tax rates for 2025-2026 school year assuming the exemption increase takes effect (approximate date based on 'as soon as practicable'). (2025-10-01); Determine equal monthly payment schedule for recapture (credit purchased) for districts delaying elections. (2026-03-15). Consult with legal counsel
SB23 establishes the following penalties: civil penalty of Standard delinquency penalties/interest for Failure to pay supplemental tax bill (if amendment fails) by March 1, 2026.. Consult with legal counsel for specific applicability to your situation.
SB23 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
