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 clarify that the tax limitation applies specifically to these taxing units and introduces new subsections detailing the conditions for the tax limitations, including provisions for individuals qualifying for exemptions under Section 11.13(c) and the treatment of tax increases due to property improvements. It also allows surviving spouses to inherit the tax limitation if they meet specific criteria, such as being disabled or at least 55 years old at the time of the individual's death.

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. The definitions of "last year's levy" and "last year's total value" are also revised to reflect these exclusions. The changes will apply to ad valorem taxes for tax years beginning on or after January 1, 2026, but the implementation of the Act is contingent upon the approval of a constitutional amendment proposed by the 89th Legislature. If the amendment is not approved by voters, the Act will have no effect.

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