Bill Text: TX HB2032 | 2025-2026 | 89th Legislature | Introduced


Bill Title: Relating to the exemption from ad valorem taxation of part of the appraised value of the residence homestead of a partially disabled veteran or the surviving spouse of such a veteran based on the disability rating of the veteran.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-01-23 - Filed [HB2032 Detail]

Download: Texas-2025-HB2032-Introduced.html
  89R9218 JBD-D
 
  By: Campos H.B. No. 2032
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from ad valorem taxation of part of the
  appraised value of the residence homestead of a partially disabled
  veteran or the surviving spouse of such a veteran based on the
  disability rating of the veteran.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.136 to read as follows:
         Sec. 11.136.  RESIDENCE HOMESTEAD OF CERTAIN PARTIALLY
  DISABLED VETERANS. (a) In this section:
               (1)  "Disability rating" and "disabled veteran" have
  the meanings assigned by Section 11.22.
               (2)  "Residence homestead" has the meaning assigned by
  Section 11.13.
               (3)  "Surviving spouse" has the meaning assigned by
  Section 11.131.
         (b)  A disabled veteran who has a disability rating of at
  least 10 percent but less than 100 percent is entitled to an
  exemption from taxation of a percentage of the appraised value of
  the disabled veteran's residence homestead equal to the disabled
  veteran's disability rating.
         (c)  The surviving spouse of a disabled veteran who qualified
  for an exemption under Subsection (b) of a percentage of the
  appraised value of the disabled veteran's residence homestead when
  the disabled veteran died, or of a disabled veteran who would have
  qualified for an exemption under that subsection if that subsection
  had been in effect on the date the disabled veteran died, is
  entitled to an exemption from taxation of the same percentage of the
  appraised value of the same property to which the disabled
  veteran's exemption applied, or to which the disabled veteran's
  exemption would have applied if the exemption had been authorized
  on the date the disabled veteran died, if:
               (1)  the surviving spouse has not remarried since the
  death of the disabled veteran; and
               (2)  the property:
                     (A)  was the residence homestead of the surviving
  spouse when the disabled veteran died; and
                     (B)  remains the residence homestead of the
  surviving spouse.
         (d)  If a surviving spouse who qualifies for an exemption
  under Subsection (c) subsequently qualifies a different property as
  the surviving spouse's residence homestead, the surviving spouse is
  entitled to an exemption from taxation of the subsequently
  qualified residence homestead in an amount equal to the dollar
  amount of the exemption from taxation of the former residence
  homestead under Subsection (c) in the last year in which the
  surviving spouse received an exemption under that subsection for
  that residence homestead if the surviving spouse has not remarried
  since the death of the disabled veteran. The surviving spouse is
  entitled to receive from the chief appraiser of the appraisal
  district in which the former residence homestead was located a
  written certificate providing the information necessary to
  determine the amount of the exemption to which the surviving spouse
  is entitled on the subsequently qualified residence homestead.
         SECTION 2.  Section 11.42(c), Tax Code, is amended to read as
  follows:
         (c)  An exemption authorized by Section 11.13(c) or (d),
  11.132, 11.133, [or] 11.134, or 11.136 is effective as of January 1
  of the tax year in which the person qualifies for the exemption and
  applies to the entire tax year.
         SECTION 3.  Sections 11.43(c) and (k), Tax Code, are amended
  to read as follows:
         (c)  An exemption provided by Section 11.13, 11.131, 11.132,
  11.133, 11.134, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183,
  11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),
  11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35,
  or 11.36, once allowed, need not be claimed in subsequent years, and
  except as otherwise provided by Subsection (e), the exemption
  applies to the property until it changes ownership or the person's
  qualification for the exemption changes. However, except as
  provided by Subsection (r), the chief appraiser may require a
  person allowed one of the exemptions in a prior year to file a new
  application to confirm the person's current qualification for the
  exemption by delivering a written notice that a new application is
  required, accompanied by an appropriate application form, to the
  person previously allowed the exemption. If the person previously
  allowed the exemption is 65 years of age or older, the chief
  appraiser may not cancel the exemption due to the person's failure
  to file the new application unless the chief appraiser complies
  with the requirements of Subsection (q), if applicable.
         (k)  A person who qualifies for an exemption authorized by
  Section 11.13(c) or (d), [or] 11.132, or 11.136 must apply for the
  exemption no later than the first anniversary of the date the person
  qualified for the exemption.
         SECTION 4.  Section 11.439(a), Tax Code, is amended to read
  as follows:
         (a)  The chief appraiser shall accept and approve or deny an
  application for an exemption under Section 11.131, [or] 11.132, or
  11.136 for the residence homestead of a disabled veteran but not the
  surviving spouse of the disabled veteran or Section 11.22 after the
  filing deadline provided by Section 11.43 if the application is
  filed not later than five years after the delinquency date for the
  taxes on the property.
         SECTION 5.  Section 26.10(b), Tax Code, is amended to read as
  follows:
         (b)  If the appraisal roll shows that a residence homestead
  exemption under Section 11.13(c) or (d), 11.132, 11.133, [or]
  11.134, or 11.136 applicable to a property on January 1 of a year
  terminated during the year and if the owner of the property
  qualifies a different property for one of those residence homestead
  exemptions during the same year, the tax due against the former
  residence homestead is calculated by:
               (1)  subtracting:
                     (A)  the amount of the taxes that otherwise would
  be imposed on the former residence homestead for the entire year had
  the owner qualified for the residence homestead exemption for the
  entire year; from
                     (B)  the amount of the taxes that otherwise would
  be imposed on the former residence homestead for the entire year had
  the owner not qualified for the residence homestead exemption
  during the year;
               (2)  multiplying the remainder determined under
  Subdivision (1) by a fraction, the denominator of which is 365 and
  the numerator of which is the number of days that elapsed after the
  date the exemption terminated; and
               (3)  adding the product determined under Subdivision
  (2) and the amount described by Subdivision (1)(A).
         SECTION 6.  Section 26.1127, Tax Code, is amended to read as
  follows:
         Sec. 26.1127.  CALCULATION OF TAXES ON [DONATED] RESIDENCE
  HOMESTEAD OF CERTAIN DISABLED VETERANS [VETERAN] OR SURVIVING
  SPOUSE OF CERTAIN DISABLED VETERANS [VETERAN]. (a)  Except as
  provided by Section 26.10(b), if at any time during a tax year
  property is owned by an individual who qualifies for an exemption
  under Section 11.132 or 11.136, the amount of the tax due on the
  property for the tax year is calculated as if the individual
  qualified for the exemption on January 1 and continued to qualify
  for the exemption for the remainder of the tax year.
         (b)  If an individual qualifies for an exemption under
  Section 11.132 or 11.136 with respect to the property after the
  amount of the tax due on the property is calculated and the effect
  of the qualification is to reduce the amount of the tax due on the
  property, the assessor for each taxing unit shall recalculate the
  amount of the tax due on the property and correct the tax roll. If
  the tax bill has been mailed and the tax on the property has not been
  paid, the assessor shall mail a corrected tax bill to the individual
  in whose name the property is listed on the tax roll or to the
  individual's authorized agent. If the tax on the property has been
  paid, the tax collector for the taxing unit shall refund to the
  individual who was the owner of the property on the date the tax was
  paid the amount by which the payment exceeded the tax due.
         SECTION 7.  Section 31.031(a), Tax Code, is amended to read
  as follows:
         (a)  This section applies only to:
               (1)  an individual who is:
                     (A)  disabled or at least 65 years of age; and
                     (B)  qualified for an exemption under Section
  11.13(c); or
               (2)  an individual who is:
                     (A)  a disabled veteran or the unmarried surviving
  spouse of a disabled veteran; and
                     (B)  qualified for an exemption under Section
  11.132, 11.136, or 11.22.
         SECTION 8.  Section 140.011(c), Local Government Code, is
  amended to read as follows:
         (c)  For the purposes of this section, the amount of a local
  government's lost ad valorem tax revenue for a fiscal year is
  calculated by multiplying the ad valorem tax rate adopted by the
  local government under Section 26.05, Tax Code, for the tax year in
  which the fiscal year begins by the sum of:
               (1)  the total appraised value of all property located
  in the local government that is exempt [granted an exemption] from
  taxation under Section 11.131, Tax Code, for that tax year; and
               (2)  the total dollar amount of the portion of the
  appraised value of all property located in the local government
  that is exempt from taxation under Section 11.136, Tax Code, for
  that tax year.
         SECTION 9.  This Act applies only to ad valorem taxes imposed
  for an ad valorem tax year that begins on or after the effective
  date of this Act.
         SECTION 10.  It is the intent of the 89th Legislature,
  Regular Session, 2025, that the amendments made by this Act be
  harmonized with another Act of the 89th Legislature, Regular
  Session, 2025, relating to nonsubstantive additions to and
  corrections in enacted codes.
         SECTION 11.  This Act takes effect January 1, 2026, but only
  if the constitutional amendment proposed by the 89th Legislature,
  Regular Session, 2025, authorizing the legislature to provide for
  an exemption from ad valorem taxation of part of the market value of
  the residence homestead of a partially disabled veteran or the
  surviving spouse of such a veteran based on the disability rating of
  the veteran is approved by the voters. If that amendment is not
  approved by the voters, this Act has no effect.
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