H.B. No. 382 proposes amendments to the Texas Tax Code, specifically introducing new subsections (s) and (t) to Section 11.13, which 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. To qualify for this exemption, individuals must have received a homestead exemption for at least the preceding ten years, and surviving spouses must be at least 55 years old at the time of the spouse's death and maintain the property as their residence homestead. The bill also clarifies that these exemptions will be effective from January 1 of the tax year in which the individual qualifies and outlines the application process and conditions for cancellation.

In addition to the tax exemptions, the bill amends the Education Code and Government Code to establish a new exemption from ad valorem taxation for the total market value of residence homesteads owned by persons aged 72 years or older, effective from the 2026 tax year, pending voter approval of a related constitutional amendment. It also modifies tax rate comparison requirements and the calculation of taxes due on average residences, ensuring that the average taxable value considers the new exemptions. Furthermore, the bill provides for additional state aid to school districts starting in the 2026-2027 school year, contingent on revenue conditions, and includes statements for tax notices to protect elderly taxpayers. Overall, the legislation aims to alleviate the financial burden on elderly homeowners while ensuring adequate funding for school districts.

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 11, Education Code 46, Tax Code 26, Education Code 44, Education Code 48, Tax Code 33)