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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from ad valorem taxation of part of the |
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appraised value of the residence homestead of a partially disabled |
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veteran or the surviving spouse of such a veteran based on the |
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disability rating of the veteran. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by |
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adding Section 11.137 to read as follows: |
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Sec. 11.137. RESIDENCE HOMESTEAD OF CERTAIN PARTIALLY |
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DISABLED VETERANS. (a) In this section: |
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(1) "Disability rating" and "disabled veteran" have |
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the meanings assigned by Section 11.22. |
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(2) "Residence homestead" has the meaning assigned by |
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Section 11.13. |
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(3) "Surviving spouse" has the meaning assigned by |
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Section 11.131. |
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(b) A disabled veteran who has a disability rating of at |
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least 10 percent but less than 100 percent is entitled to an |
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exemption from taxation of a percentage of the appraised value of |
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the disabled veteran's residence homestead equal to the disabled |
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veteran's disability rating. |
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(c) The surviving spouse of a disabled veteran who qualified |
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for an exemption under Subsection (b) of a percentage of the |
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appraised value of the disabled veteran's residence homestead when |
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the disabled veteran died, or of a disabled veteran who would have |
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qualified for an exemption under that subsection if that subsection |
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had been in effect on the date the disabled veteran died, is |
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entitled to an exemption from taxation of the same percentage of the |
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appraised value of the same property to which the disabled |
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veteran's exemption applied, or to which the disabled veteran's |
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exemption would have applied if the exemption had been authorized |
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on the date the disabled veteran died, if: |
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(1) the surviving spouse has not remarried since the |
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death of the disabled veteran; and |
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(2) the property: |
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(A) was the residence homestead of the surviving |
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spouse when the disabled veteran died; and |
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(B) remains the residence homestead of the |
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surviving spouse. |
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(d) If a surviving spouse who qualifies for an exemption |
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under Subsection (c) subsequently qualifies a different property as |
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the surviving spouse's residence homestead, the surviving spouse is |
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entitled to an exemption from taxation of the subsequently |
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qualified residence homestead in an amount equal to the dollar |
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amount of the exemption from taxation of the former residence |
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homestead under Subsection (c) in the last year in which the |
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surviving spouse received an exemption under that subsection for |
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that residence homestead if the surviving spouse has not remarried |
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since the death of the disabled veteran. The surviving spouse is |
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entitled to receive from the chief appraiser of the appraisal |
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district in which the former residence homestead was located a |
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written certificate providing the information necessary to |
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determine the amount of the exemption to which the surviving spouse |
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is entitled on the subsequently qualified residence homestead. |
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SECTION 2. If the constitutional amendment proposed by |
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H.J.R. 133, 89th Legislature, Regular Session, 2025, is approved by |
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the voters, Section 11.42(c), Tax Code, as amended by H.B. 2508, |
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Acts of the 89th Legislature, Regular Session, 2025, and effective |
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January 1, 2026, is amended to read as follows: |
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(c) An exemption authorized by Section 11.13(c) or (d), |
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11.132, 11.133, 11.134, [or] 11.136, or 11.137 is effective as of |
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January 1 of the tax year in which the person qualifies for the |
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exemption and applies to the entire tax year. |
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SECTION 3. If the constitutional amendment proposed by |
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H.J.R. 133, 89th Legislature, Regular Session, 2025, is not |
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approved by the voters, Section 11.42(c), Tax Code, is amended to |
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read as follows: |
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(c) An exemption authorized by Section 11.13(c) or (d), |
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11.132, 11.133, [or] 11.134, or 11.137 is effective as of January 1 |
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of the tax year in which the person qualifies for the exemption and |
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applies to the entire tax year. |
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SECTION 4. If the constitutional amendment proposed by |
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H.J.R. 34, 89th Legislature, Regular Session, 2025, is approved by |
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the voters and the constitutional amendment proposed by H.J.R. 133, |
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89th Legislature, Regular Session, 2025, is not approved by the |
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voters, Section 11.43(c), Tax Code, as amended by H.B. 2730, Acts of |
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the 89th Legislature, Regular Session, 2025, by H.B. 1620, Acts of |
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the 89th Legislature, Regular Session, 2025, and effective |
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September 1, 2025, and by H.B. 247, Acts of the 89th Legislature, |
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Regular Session, 2025, and effective January 1, 2026, is reenacted |
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and amended to read as follows: |
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(c) An exemption provided by Section 11.13, 11.131, 11.132, |
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11.133, 11.134, 11.137, 11.17, 11.18, 11.182, 11.1827, 11.183, |
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11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), |
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11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35, |
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11.36, [or] 11.37, or 11.38, once allowed, need not be claimed in |
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subsequent years, and except as otherwise provided by Subsection |
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(e), the exemption applies to the property until it changes |
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ownership or the person's qualification for the exemption changes. |
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However, except as provided by Subsection (r), and subject to |
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Subsection (c-1), the chief appraiser may require a person allowed |
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one of the exemptions in a prior year to file a new application to |
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confirm the person's current qualification for the exemption by |
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delivering a written notice that a new application is required, |
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accompanied by an appropriate application form, to the person |
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previously allowed the exemption. If the person previously allowed |
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the exemption is 65 years of age or older, the chief appraiser may |
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not cancel the exemption due to the person's failure to file the new |
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application unless the chief appraiser complies with the |
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requirements of Subsection (q), if applicable. |
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SECTION 5. If the constitutional amendment proposed by |
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H.J.R. 133, 89th Legislature, Regular Session, 2025, is approved by |
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the voters and the constitutional amendment proposed by H.J.R. 34, |
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89th Legislature, Regular Session, 2025, is not approved by the |
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voters, Section 11.43(c), Tax Code, as amended by H.B. 2730, Acts of |
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the 89th Legislature, Regular Session, 2025, by H.B. 1620, Acts of |
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the 89th Legislature, Regular Session, 2025, and effective |
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September 1, 2025, and by H.B. 2508, Acts of the 89th Legislature, |
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Regular Session, 2025, and effective January 1, 2026, is reenacted |
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and amended to read as follows: |
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(c) An exemption provided by Section 11.13, 11.131, 11.132, |
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11.133, 11.134, 11.136, 11.137, 11.17, 11.18, 11.182, 11.1827, |
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11.183, 11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or |
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(m), 11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, |
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11.35, 11.36, or 11.37, once allowed, need not be claimed in |
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subsequent years, and except as otherwise provided by Subsection |
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(e), the exemption applies to the property until it changes |
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ownership or the person's qualification for the exemption changes. |
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However, except as provided by Subsection (r), and subject to |
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Subsection (c-1), the chief appraiser may require a person allowed |
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one of the exemptions in a prior year to file a new application to |
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confirm the person's current qualification for the exemption by |
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delivering a written notice that a new application is required, |
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accompanied by an appropriate application form, to the person |
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previously allowed the exemption. If the person previously |
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allowed the exemption is 65 years of age or older, the chief |
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appraiser may not cancel the exemption due to the person's failure |
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to file the new application unless the chief appraiser complies |
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with the requirements of Subsection (q), if applicable. |
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SECTION 6. If both the constitutional amendment proposed by |
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H.J.R. 34, 89th Legislature, Regular Session, 2025, and the |
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constitutional amendment proposed by H.J.R. 133, 89th Legislature, |
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Regular Session, 2025, are approved by the voters, Section |
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11.43(c), Tax Code, as amended by H.B. 2730, Acts of the 89th |
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Legislature, Regular Session, 2025, by H.B. 1620, Acts of the 89th |
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Legislature, Regular Session, 2025, and effective September 1, |
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2025, and by H.B. 247 and H.B. 2508, Acts of the 89th Legislature, |
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Regular Session, 2025, and effective January 1, 2026, is reenacted |
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and amended to read as follows: |
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(c) An exemption provided by Section 11.13, 11.131, 11.132, |
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11.133, 11.134, 11.136, 11.137, 11.17, 11.18, 11.182, 11.1827, |
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11.183, 11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or |
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(m), 11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, |
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11.35, 11.36, [or] 11.37, or 11.38, once allowed, need not be |
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claimed in subsequent years, and except as otherwise provided by |
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Subsection (e), the exemption applies to the property until it |
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changes ownership or the person's qualification for the exemption |
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changes. However, except as provided by Subsection (r), and |
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subject to Subsection (c-1), the chief appraiser may require a |
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person allowed one of the exemptions in a prior year to file a new |
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application to confirm the person's current qualification for the |
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exemption by delivering a written notice that a new application is |
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required, accompanied by an appropriate application form, to the |
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person previously allowed the exemption. If the person previously |
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allowed the exemption is 65 years of age or older, the chief |
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appraiser may not cancel the exemption due to the person's failure |
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to file the new application unless the chief appraiser complies |
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with the requirements of Subsection (q), if applicable. |
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SECTION 7. If neither the constitutional amendment proposed |
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by H.J.R. 34, 89th Legislature, Regular Session, 2025, nor the |
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constitutional amendment proposed by H.J.R. 133, 89th Legislature, |
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Regular Session, 2025, is approved by the voters, Section 11.43(c), |
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Tax Code, as amended by H.B. 2730, Acts of the 89th Legislature, |
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Regular Session, 2025, and by H.B. 1620, Acts of the 89th |
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Legislature, Regular Session, 2025, and effective September 1, |
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2025, is reenacted and amended to read as follows: |
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(c) An exemption provided by Section 11.13, 11.131, 11.132, |
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11.133, 11.134, 11.137, 11.17, 11.18, 11.182, 11.1827, 11.183, |
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11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), |
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11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35, |
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11.36, or 11.37, once allowed, need not be claimed in subsequent |
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years, and except as otherwise provided by Subsection (e), the |
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exemption applies to the property until it changes ownership or the |
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person's qualification for the exemption changes. However, except |
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as provided by Subsection (r), and subject to Subsection (c-1), the |
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chief appraiser may require a person allowed one of the exemptions |
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in a prior year to file a new application to confirm the person's |
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current qualification for the exemption by delivering a written |
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notice that a new application is required, accompanied by an |
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appropriate application form, to the person previously allowed the |
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exemption. If the person previously allowed the exemption is 65 |
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years of age or older, the chief appraiser may not cancel the |
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exemption due to the person's failure to file the new application |
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unless the chief appraiser complies with the requirements of |
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Subsection (q), if applicable. |
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SECTION 8. Section 11.43(k), Tax Code, is amended to read as |
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follows: |
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(k) A person who qualifies for an exemption authorized by |
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Section 11.13(c) or (d), [or] 11.132, or 11.137 must apply for the |
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exemption no later than the first anniversary of the date the person |
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qualified for the exemption. |
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SECTION 9. Section 11.439(a), Tax Code, is amended to read |
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as follows: |
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(a) The chief appraiser shall accept and approve or deny an |
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application for an exemption under Section 11.131, [or] 11.132, or |
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11.137 for the residence homestead of a disabled veteran but not the |
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surviving spouse of the disabled veteran or Section 11.22 after the |
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filing deadline provided by Section 11.43 if the application is |
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filed not later than five years after the delinquency date for the |
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taxes on the property. |
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SECTION 10. If the constitutional amendment proposed by |
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H.J.R. 133, 89th Legislature, Regular Session, 2025, is approved by |
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the voters, Section 26.10(b), Tax Code, as amended by H.B. 2508, |
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Acts of the 89th Legislature, Regular Session, 2025, and effective |
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January 1, 2026, is amended to read as follows: |
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(b) If the appraisal roll shows that a residence homestead |
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exemption under Section 11.13(c) or (d), 11.132, 11.133, 11.134, |
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[or] 11.136, or 11.137 applicable to a property on January 1 of a |
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year terminated during the year and if the owner of the property |
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qualifies a different property for one of those residence homestead |
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exemptions during the same year, the tax due against the former |
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residence homestead is calculated by: |
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(1) subtracting: |
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(A) the amount of the taxes that otherwise would |
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be imposed on the former residence homestead for the entire year had |
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the owner qualified for the residence homestead exemption for the |
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entire year; from |
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(B) the amount of the taxes that otherwise would |
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be imposed on the former residence homestead for the entire year had |
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the owner not qualified for the residence homestead exemption |
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during the year; |
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(2) multiplying the remainder determined under |
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Subdivision (1) by a fraction, the denominator of which is 365 and |
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the numerator of which is the number of days that elapsed after the |
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date the exemption terminated; and |
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(3) adding the product determined under Subdivision |
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(2) and the amount described by Subdivision (1)(A). |
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SECTION 11. If the constitutional amendment proposed by |
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H.J.R. 133, 89th Legislature, Regular Session, 2025, is not |
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approved by the voters, Section 26.10(b), Tax Code, is amended to |
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read as follows: |
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(b) If the appraisal roll shows that a residence homestead |
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exemption under Section 11.13(c) or (d), 11.132, 11.133, [or] |
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11.134, or 11.137 applicable to a property on January 1 of a year |
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terminated during the year and if the owner of the property |
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qualifies a different property for one of those residence homestead |
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exemptions during the same year, the tax due against the former |
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residence homestead is calculated by: |
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(1) subtracting: |
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(A) the amount of the taxes that otherwise would |
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be imposed on the former residence homestead for the entire year had |
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the owner qualified for the residence homestead exemption for the |
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entire year; from |
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(B) the amount of the taxes that otherwise would |
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be imposed on the former residence homestead for the entire year had |
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the owner not qualified for the residence homestead exemption |
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during the year; |
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(2) multiplying the remainder determined under |
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Subdivision (1) by a fraction, the denominator of which is 365 and |
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the numerator of which is the number of days that elapsed after the |
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date the exemption terminated; and |
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(3) adding the product determined under Subdivision |
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(2) and the amount described by Subdivision (1)(A). |
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SECTION 12. Section 26.1127, Tax Code, is amended to read as |
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follows: |
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Sec. 26.1127. CALCULATION OF TAXES ON [DONATED] RESIDENCE |
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HOMESTEAD OF CERTAIN DISABLED VETERANS [VETERAN] OR SURVIVING |
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SPOUSE OF CERTAIN DISABLED VETERANS [VETERAN]. (a) Except as |
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provided by Section 26.10(b), if at any time during a tax year |
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property is owned by an individual who qualifies for an exemption |
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under Section 11.132 or 11.137, the amount of the tax due on the |
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property for the tax year is calculated as if the individual |
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qualified for the exemption on January 1 and continued to qualify |
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for the exemption for the remainder of the tax year. |
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(b) If an individual qualifies for an exemption under |
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Section 11.132 or 11.137 with respect to the property after the |
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amount of the tax due on the property is calculated and the effect |
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of the qualification is to reduce the amount of the tax due on the |
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property, the assessor for each taxing unit shall recalculate the |
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amount of the tax due on the property and correct the tax roll. If |
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the tax bill has been mailed and the tax on the property has not been |
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paid, the assessor shall mail a corrected tax bill to the individual |
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in whose name the property is listed on the tax roll or to the |
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individual's authorized agent. If the tax on the property has been |
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paid, the tax collector for the taxing unit shall refund to the |
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individual who was the owner of the property on the date the tax was |
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paid the amount by which the payment exceeded the tax due. |
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SECTION 13. Section 31.031(a), Tax Code, is amended to read |
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as follows: |
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(a) This section applies only to: |
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(1) an individual who is: |
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(A) disabled or at least 65 years of age; and |
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(B) qualified for an exemption under Section |
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11.13(c); or |
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(2) an individual who is: |
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(A) a disabled veteran or the unmarried surviving |
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spouse of a disabled veteran; and |
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(B) qualified for an exemption under Section |
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11.132, 11.137, or 11.22. |
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SECTION 14. Section 140.011(c), Local Government Code, is |
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amended to read as follows: |
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(c) For the purposes of this section, the amount of a local |
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government's lost ad valorem tax revenue for a fiscal year is |
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calculated by multiplying the ad valorem tax rate adopted by the |
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local government under Section 26.05, Tax Code, for the tax year in |
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which the fiscal year begins by the sum of: |
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(1) the total appraised value of all property located |
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in the local government that is exempt [granted an exemption] from |
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taxation under Section 11.131, Tax Code, for that tax year; and |
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(2) the total dollar amount of the portion of the |
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appraised value of all property located in the local government |
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that is exempt from taxation under Section 11.137, Tax Code, for |
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that tax year. |
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SECTION 15. This Act applies only to ad valorem taxes |
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imposed for an ad valorem tax year that begins on or after the |
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effective date of this Act. |
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SECTION 16. This Act takes effect January 1, 2027, but only |
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if the constitutional amendment proposed by the 89th Legislature, |
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1st Called Session, 2025, authorizing the legislature to provide |
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for an exemption from ad valorem taxation of part of the market |
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value of the residence homestead of a partially disabled veteran or |
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the surviving spouse of such a veteran based on the disability |
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rating of the veteran is approved by the voters. If that amendment |
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is not approved by the voters, this Act has no effect. |