The bill, 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. It 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 allows veterans with a disability rating below 100% to claim an 80% exemption if they are 65 years or older, totally blind, or have lost the use of limbs.

The bill also outlines provisions for surviving spouses and children of deceased veterans. 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 old will receive a portion of the exemption based on the number of eligible children. The bill will 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)