H.B. No. 1829 seeks to limit the total amount of ad valorem taxes that certain taxing units 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, changing the heading to indicate that the limitation applies to taxing units other than school districts. It introduces new subsections that clarify the conditions for these tax limitations, including provisions for individuals qualifying for exemptions under Section 11.13(c) and the treatment of surviving spouses. Key amendments specify that the tax limitation applies to taxing units other than counties, municipalities, or junior college districts, and outline criteria for calculating tax increases based on the first year an individual qualifies for the exemption.

Additionally, the bill ensures that surviving spouses can retain the tax limitation under certain conditions if the qualifying individual dies. It addresses how property improvements affect tax calculations and stipulates that limitations do not expire under specific circumstances, providing ongoing protection for eligible individuals. The bill also updates the calculation of total taxable value for taxing units, excluding the total value of homesteads qualifying for tax limitations. The bill is set to take effect on January 1, 2026, contingent upon the approval of a constitutional amendment proposed by the 89th Legislature, which aims to establish a similar limitation on ad valorem taxes for the specified groups. If the amendment is not approved by voters, the provisions of this bill 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)