HB 266 amends Section 11.13 of the Texas Tax Code to authorize a local option exemption from ad valorem taxation by a school district on part or all of the appraised value of a residence homestead owned by certain school district employees. Specifically, this exemption applies to full-time classroom teachers, school counselors, librarians, and nurses employed by the district. The governing body of the district may set the exemption as a percentage of the appraised value, with a minimum threshold of 20%. This exemption would be additive to other existing exemptions. The Act’s implementation depends on voter approval of a related constitutional amendment, with the effective date of January 1, 2026​.