In Texas, the homestead exemption for school district taxes is:

A ($15,000) is incorrect as it represents the homestead exemption for county taxes, not school district taxes. This option tests whether students confuse the exemption amounts for different taxing authorities.

B ($25,000) is incorrect as it doesn't correspond to any standard homestead exemption amount in Texas. This option may trap students who are guessing without specific knowledge of the exemption amounts.

C ($40,000) is incorrect as it represents the general homestead exemption in Texas, which applies to all taxing authorities except school districts. This option tests whether students know the difference between the general exemption and the school district exemption.