H.B. No. 4321 proposes amendments to the Texas Tax Code regarding ad valorem tax exemptions for disabled veterans and their surviving spouses and children. The bill establishes specific percentages of assessed property value that disabled veterans can exempt based on their disability ratings, with new provisions stating that veterans with a disability rating of 10% to 30% can exempt 20%, and those with a 100% disability rating can exempt 100%. Additionally, it clarifies that a disabled veteran who does not have a 100% disability rating is entitled to an 80% exemption if they are 65 years or older, totally blind, or have lost the use of limbs.

The bill also addresses the exemptions available to surviving spouses and children of deceased disabled veterans. It stipulates that the surviving spouse is entitled to an exemption equal to the dollar amount of the veteran's exemption at the time of death, as long as they remain unmarried. If the spouse does not survive, each eligible child under 18 years of age will receive an exemption calculated by dividing the veteran's exemption amount by the number of eligible children. 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 11.22, Tax Code 11.42 (Tax Code 11)