The bill amends the Texas Tax Code to establish an exemption from ad valorem taxation for the total appraised value of residence homesteads owned by individuals aged 72 or older, as well as their surviving spouses. It introduces new subsections (s) and (t) to Section 11.13, which specify that individuals who are 72 years of age or older and have held a homestead exemption for at least the preceding ten years are eligible for this exemption. Surviving spouses of deceased individuals who qualified for this exemption can also benefit, provided they meet certain conditions, including being at least 55 years old at the time of the deceased's passing. The bill also deletes references to previous subsections (b), (c), (d), and (n) related to exemptions.

In addition to the tax exemption provisions, the bill amends various sections of the Education Code and Government Code to enhance public meeting notice requirements for school district budgets and tax rates. It mandates that notices be at least one-quarter page in size, include bold statements about the meeting's purpose, and provide detailed comparisons of proposed budgets and tax rates with previous years. The bill also outlines conditions for school districts to receive additional state aid starting in the 2027-2028 school year, particularly in relation to revenue losses due to the new homestead exemptions, while ensuring that the amount of additional state aid cannot fall below certain thresholds. The implementation of these changes is contingent upon the approval of related constitutional amendments by voters, with an effective date of January 1, 2027, if those amendments are approved.

Statutes affected:
Introduced: Tax Code 11.13, Tax Code 11.42, Tax Code 11.43, Tax Code 26.10, Tax Code 26.112, Tax Code 33.01, Education Code 46.071, Education Code 48.2543 (Tax Code 26, Education Code 46, Tax Code 33, Tax Code 11, Education Code 48)