H.B. No. 2508 proposes an exemption from ad valorem taxation for the residence homestead of the surviving spouse of a veteran who died due to a qualifying condition or disease. The bill introduces Section 11.136 to the Tax Code, defining key terms such as "qualifying condition or disease," "qualifying veteran," "residence homestead," and "surviving spouse." It stipulates that a surviving spouse is entitled to an exemption from taxation on the total appraised value of their residence homestead, provided they have not remarried since the veteran's death. The exemption applies regardless of the date of the veteran's death, and surviving spouses can also receive an exemption for subsequent properties that qualify as their residence homestead.

Additionally, the bill amends various sections of the Tax Code to include the new exemption under Section 11.136, ensuring that it is effective from January 1 of the tax year in which the person qualifies for the exemption. The bill also clarifies that the exemption does not require annual reapplication and remains in effect until ownership changes or the individual's qualification status changes. 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 26.10, Tax Code 26.112 (Tax Code 26, Tax Code 11)