H.B. No. 382 amends the Texas Tax Code to provide an exemption from ad valorem taxation for the total appraised value of residence homesteads owned by individuals aged 72 or older, as well as their surviving spouses. The bill introduces new subsections (s) and (t) to Section 11.13, which specify that individuals who are 72 years of age or older and have held a homestead exemption for at least the preceding ten years are eligible for this exemption. Surviving spouses can also qualify if they are at least 55 years old at the time of the deceased spouse's passing and continue to use the property as their residence homestead. The exemptions will be effective from January 1 of the tax year in which the individual qualifies, and those who qualify will automatically receive the exemption in subsequent years without needing to reapply.

Additionally, the bill makes amendments to the Education Code and Government Code to enhance transparency and support for elderly individuals regarding property tax exemptions. It mandates that school districts provide detailed comparisons of tax levies for average residences, including the impact of these exemptions on tax rates. The bill also ensures that school districts will receive additional state aid starting in the 2026-2027 school year if local revenue for debt service falls short of previous levels due to the new homestead exemption. Furthermore, it stipulates that school taxes for individuals aged 65 and older cannot increase beyond the amount paid in the first year after they turned 65. The bill is set to take effect on January 1, 2026, pending the approval of a constitutional amendment proposed by the 89th Legislature.

Statutes affected:
Introduced: Tax Code 11.13, Tax Code 11.42, Tax Code 11.43, Tax Code 26.10, Tax Code 26.112, Tax Code 33.01, Education Code 44.004, Education Code 46.071, Education Code 48.2543 (Tax Code 26, Education Code 46, Education Code 48, Tax Code 33, Education Code 44, Tax Code 11)