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 the following tiers: 20% for a rating of 10-29%, 40% for 30-49%, 60% for 50-69%, 80% for 70-99%, and 100% for a rating of 100%. Additionally, it provides an 80% exemption for veterans aged 65 or older with a disability rating of at least 10%, those who are totally blind, or those who have lost the use of limbs.

For surviving spouses, the bill stipulates that they are 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 veteran's spouse does not survive, the exemption can be divided among eligible children under 18 years of age. The bill also clarifies that individuals acquiring property after January 1 of a tax year may receive exemptions for that year upon qualification. 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)