Relating to the provision of funding under the public school finance system on the basis of property values that take into account optional homestead exemptions.

HB 39 amends Texas law to adjust how school districts calculate property values for state funding. It directs that taxable value for school finance purposes must exclude certain homestead exemptions, including those under Tax Code Sections 11.13(b), (c), and (n), as well as captured appraised value in designated reinvestment zones. This change directly affects Texas public school districts by altering the property value base used to determine state funding allocations. The bill modifies Education Code Section 7.062(c) and Government Code Section 403.302(d) to implement this adjustment in funding calculations.