S.B. No. 1126 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 disabled veterans 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 can inherit this exemption, provided they have not remarried and the property remains their residence homestead.

The bill also makes several amendments to existing sections of the Tax Code, including clarifying that exemptions under Section 11.136 will be effective from January 1 of the tax year in which the individual qualifies. It specifies that surviving spouses who qualify for the exemption can transfer it to a new residence if they have not remarried. Furthermore, the bill outlines the process for calculating taxes on properties owned by individuals who qualify for these exemptions and ensures that local governments account for the lost tax revenue due to these exemptions. The act is set to take effect on January 1, 2026, contingent upon voter approval of a related constitutional amendment.

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, Local Government Code 140, Tax Code 26, Tax Code 11)