S.B. No. 2520 amends the Tax Code to establish a new limitation on the total amount of ad valorem taxes that can be imposed by a school district on the residence homestead of individuals who are elderly or disabled. The bill introduces a new subsection, (a-11), which specifies that this limitation applies only in the tax year immediately following the first year an individual qualifies for a homestead exemption under Section 11.13(c). The limitation for that tax year will be the lesser of the amount calculated under the previous subsection (a-10) or the actual tax imposed by the school district on the residence homestead, without considering the limitation on tax increases. The provisions of this Act will only apply to ad valorem taxes for tax years beginning on or after its effective date, which is set for January 1, 2026. This legislative change aims to provide additional financial relief to elderly and disabled individuals by ensuring that their tax liabilities do not exceed a certain threshold in the year following their qualification for the homestead exemption.

Statutes affected:
Introduced: Tax Code 11.26 (Tax Code 11)
Senate Committee Report: Tax Code 11.26 (Tax Code 11)
Engrossed: Tax Code 11.26 (Tax Code 11)
House Committee Report: Tax Code 11.26 (Tax Code 11)
Enrolled: Tax Code 11.26 (Tax Code 11)