H.B. No. 1688 proposes a local option exemption from ad valorem taxation for the residence homesteads of certain eligible peace officers in Texas. The bill amends Section 11.13 of the Tax Code to include new definitions and provisions regarding this exemption. Specifically, it defines "eligible peace officer" as individuals employed full-time as peace officers by the state or its political subdivisions, and it allows taxing units to adopt an exemption for all or part of the appraised value of these officers' homesteads. The governing body of a taxing unit can specify the exemption as either a dollar amount or a percentage of the appraised value.

Additionally, the bill modifies existing language in the Tax Code, allowing assessors to disregard certain exemptions when assessing taxes pledged for debt payment. It also clarifies that the new exemption will only apply to ad valorem taxes imposed for tax years beginning on or after January 1, 2026, contingent upon the approval of a related constitutional amendment by voters. If the amendment is not approved, the provisions of this Act will have no effect.

Statutes affected:
Introduced: Tax Code 11.13, Government Code 403.302 (Government Code 403, Tax Code 11)