H.B. No. 455 seeks to limit the total amount of 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 clarify that these limitations apply specifically to non-school district taxing units and introduces new subsections detailing the conditions for these limitations. Importantly, it stipulates that a taxing unit cannot increase the total annual ad valorem taxes on a qualifying individual's residence homestead beyond the amount imposed in the first tax year they qualified for the exemption.

Furthermore, the bill provides provisions for surviving spouses of individuals who qualified for the tax limitation, allowing them to maintain the same tax benefits under certain conditions. It also addresses tax implications related to improvements made to the residence homestead and ensures that the limitations on tax increases remain in effect under specific circumstances. The legislation aims to offer financial relief and stability for disabled and elderly homeowners in Texas. The bill is set to take effect on January 1, 2026, pending the approval of a constitutional amendment proposed by the 89th Legislature, which would establish similar tax limitations for political subdivisions. 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 11, Tax Code 26)