H.B. No. 2032 proposes an amendment to the Texas Tax Code to provide an exemption from ad valorem taxation for the residence homestead of partially disabled veterans and their surviving spouses. Specifically, the bill introduces Section 11.136, which allows a disabled veteran with a disability rating of at least 10% but less than 100% to receive a tax exemption equal to their disability rating percentage on the appraised value of their residence homestead. Additionally, the surviving spouse of a qualifying disabled veteran is entitled to the same exemption percentage if they have not remarried and the property remains their residence homestead.

The bill also includes various amendments to existing sections of the Tax Code, such as Section 11.42, which clarifies that exemptions under the new section will be effective from January 1 of the tax year in which the individual qualifies. Other sections, including 11.43 and 26.10, are amended to incorporate the new exemption and outline the application process and tax calculations related to the exemptions. The act is set to take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters.

Statutes affected:
Introduced: Tax Code 11.42, Tax Code 11.43, Tax Code 11.439, Tax Code 26.10, Tax Code 26.1127, Tax Code 31.031, Local Government Code 140.011 (Tax Code 31, Tax Code 26, Tax Code 11, Local Government Code 140)