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 these tax limitations, including provisions for individuals qualifying for exemptions under Section 11.13(c) and the treatment of tax increases resulting from property improvements. If the calculated tax exceeds the established limitation, the taxing unit can only impose the limited amount, and the bill outlines circumstances under which the limitation expires, such as when none of the owners qualify for the exemption.

Additionally, the bill modifies definitions and calculations related to ad valorem taxes, ensuring that the current total value for taxing units, excluding school districts, does not include the total value of homesteads qualifying for tax limitations. It also updates the definitions of "last year's levy" and "last year's total value" to reflect similar exclusions. The legislation aims to protect vulnerable populations from significant tax increases on their homesteads and is set to take effect on 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 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 26, Tax Code 11)