The bill, S.B. No. 652, seeks to grant the commissioners court of a county the authority to adopt an exemption from ad valorem taxation on a portion of the appraised value of an individual's residence homestead, specifically expressed as a dollar amount. The proposed legal language includes the addition of Subsection (s) to Section 11.13 of the Tax Code, which states that individuals are entitled to this exemption if it is adopted by the commissioners court before July 1, with a maximum exemption amount not exceeding $100,000. Additionally, the bill amends Subsection (i) to allow tax assessors to disregard certain exemptions when assessing taxes pledged for debt payment, provided that granting the exemption would impair the obligation of the contract creating the debt.

Furthermore, the bill modifies Section 25.23(a) to include property that qualifies for the new exemption under Subsection (s) in the supplemental appraisal records prepared by the chief appraiser. The act is set to take effect on January 1, 2026, contingent upon the approval of a constitutional amendment by voters that would authorize the commissioners court to adopt such an exemption. If the amendment is not approved, the act will have no effect.

Statutes affected:
Introduced: Tax Code 11.13, Tax Code 25.23 (Tax Code 25, Tax Code 11)