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. 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 will be handled. Notably, the bill specifies that the total annual ad valorem taxes cannot exceed the amount imposed in the first tax year the individual qualified for the exemption, while also allowing for adjustments based on property improvements.

Additionally, the bill updates definitions and calculations related to ad valorem taxes, ensuring that the total value of homesteads qualifying for tax limitations is excluded from the total value for taxing units other than school districts. It also revises the definitions of "last year's levy" and "last year's total value" to maintain consistency across taxing units. The provisions of this bill will take effect for tax years beginning on or after January 1, 2026, contingent upon the approval of a constitutional amendment proposed by the 89th Legislature. If the amendment is not approved by voters, the bill's provisions will not be enacted.

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