H.B. No. 57 seeks to limit the ad valorem taxes that certain taxing units, excluding school districts, can impose on the residence homesteads of disabled or elderly individuals and their surviving spouses. The bill amends Section 11.261 of the Tax Code to clarify that the tax limitation specifically applies to these taxing units. It introduces new subsections detailing the conditions for the tax limitations, including provisions for individuals qualifying for exemptions under Section 11.13(c) and addressing how property improvements affect tax increases. The bill ensures that if the calculated tax exceeds the established limitation, the taxing unit can only impose the limited amount, and it provides protections for surviving spouses to retain tax benefits under certain conditions.

Additionally, the bill modifies definitions and calculations related to ad valorem taxes, ensuring that the total value for taxing units, excluding school districts, does not include the value of homesteads qualifying for tax limitations. It also updates the definitions of "last year's levy" and "last year's total value" to reflect these exclusions, promoting consistency across taxing units. H.B. No. 57 is set to take effect on January 1, 2026, contingent upon the approval of a constitutional amendment proposed by the 89th Legislature, which aims to limit the ad valorem taxes imposed on the homesteads of disabled or elderly individuals and their surviving spouses. If the amendment is not approved, the bill's provisions will not take effect.

Statutes affected:
Introduced: Tax Code 11.261, Tax Code 11.13, Tax Code 26.012 (Tax Code 26, Tax Code 11)