The bill proposes an exemption from ad valorem taxation for a portion of the appraised value of properties that serve as the primary residence of adults with intellectual or developmental disabilities, provided that these individuals are related to the property owner or trustee within the third degree of consanguinity. The new legal language added to the Tax Code includes definitions for "developmental disability" and "intellectual disability," as well as the specific conditions under which the exemption applies. Notably, the bill clarifies that this exemption does not apply to properties already qualifying for a residence homestead exemption under Section 11.13.

Additionally, the bill amends Section 11.43(c) of the Tax Code to include the new exemption under Section 11.38, ensuring that once granted, the exemption does not need to be claimed in subsequent years unless ownership changes or the individual's qualification for the exemption changes. The bill is set to take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters in the 89th Legislature. If the amendment is not approved, the bill will have no effect.

Statutes affected:
Introduced: Tax Code 11.43 (Tax Code 11)
House Committee Report: Tax Code 11.43 (Tax Code 11)
Engrossed: Tax Code 11.43 (Tax Code 11)