H.B. No. 455 seeks to limit the ad valorem taxes that certain taxing units, excluding school districts, can impose on the residence homesteads of disabled or elderly individuals and their surviving spouses. The bill amends Section 11.261 of the Tax Code to specify that these limitations apply only to taxing units other than school districts. It introduces new subsections that outline the conditions for these tax limitations, including provisions for individuals qualifying for exemptions under Section 11.13(c) and how tax increases due to property improvements are treated. A key provision states that a taxing unit cannot increase the total annual ad valorem taxes on a qualifying individual's homestead beyond the amount imposed in the first tax year they qualified for the exemption.

Additionally, the bill clarifies the definitions and calculations related to ad valorem taxes, ensuring that the total value for taxing units, excluding school districts, does not include the value of homesteads qualifying for tax limitations. It modifies the definitions of "last year's levy" and "last year's total value" to reflect these exclusions, promoting consistency across taxing units. The bill is set to take effect on January 1, 2026, contingent upon the approval of a constitutional amendment proposed by the 89th Legislature, which aims to limit the ad valorem taxes imposed on the homesteads of disabled or elderly individuals and their surviving spouses. If the amendment is not approved by voters, the bill's provisions will not take effect.

Statutes affected:
Introduced: Tax Code 11.261, Tax Code 11.13, Tax Code 26.012 (Tax Code 26, Tax Code 11)