The bill amends the Texas Tax Code to establish an exemption from ad valorem taxation for 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. Additionally, the surviving spouse of a deceased individual who qualified for this exemption can also receive it, provided they meet certain conditions, including being at least 55 years old at the time of the spouse's death and maintaining the property as their residence homestead. The bill also includes amendments that allow the chief appraiser to disregard certain exemptions when assessing taxes for debt payments and clarifies the application process for exemptions.

Moreover, 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, mandating that notices be at least one-quarter page in size with specific formatting. It introduces a new exemption for individuals aged 72 and older, which is reflected in the notice requirements and tax calculations. The bill also establishes additional state aid for school districts starting in the 2027-2028 school year, particularly in relation to the impact of new homestead exemptions for elderly residents, contingent upon local revenue for debt service being less than what would have been available under previous laws. Overall, the bill aims to improve transparency in school district budgeting while providing financial support to districts affected by the new tax exemptions for senior citizens.

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 (Education Code 48, Education Code 46, Tax Code 11, Tax Code 26, Tax Code 33)