H.B. No. 1829 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 reflect that these limitations apply specifically to taxing units other than school districts. It introduces new subsections that clarify the conditions for tax limitations, including provisions for individuals qualifying for exemptions under Section 11.13(c) and the treatment of surviving spouses. If the calculated tax exceeds the established limitation, the taxing unit can only impose the limited amount, and the bill ensures that the limitation remains in effect under certain conditions, such as when the owner qualifies for an exemption.

Additionally, the bill updates definitions and calculations related to ad valorem taxes, ensuring that the total value for taxing units, excluding school districts, does not include the value of homesteads qualifying for tax limitations. 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 apply to ad valorem taxes 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 take effect.

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