H.B. No. 297 proposes amendments to the Texas Tax Code to establish a property tax exemption for the residence homesteads of partially disabled veterans and their surviving spouses. The bill introduces Section 11.137, which allows veterans with a disability rating of at least 10% but less than 100% to receive a tax exemption corresponding to their disability rating percentage on the appraised value of their homestead. Surviving spouses of qualifying veterans, provided they have not remarried and continue to occupy the property as their residence, are also entitled to the same exemption. The bill ensures that if a surviving spouse moves to a different property, they can retain the exemption, maintaining the same dollar amount as previously granted.

Additionally, the bill amends various sections of the Tax Code and Local Government Code to expand eligibility for property tax exemptions to include disabled veterans and unmarried surviving spouses. It modifies the calculation of local governments' lost ad valorem tax revenue to include properties exempt under the new Section 11.137, while deleting previous language that referred to properties simply as "granted an exemption." The bill is set to take effect on January 1, 2027, contingent upon the approval of a constitutional amendment that would allow for the proposed tax exemption. If the amendment is not approved by voters, the provisions of the bill will not take effect.

Statutes affected:
Introduced: Tax Code 11.42, Tax Code 11.43, Tax Code 11.439, Tax Code 26.10, Tax Code 26.1127, Tax Code 31.031, Local Government Code 140.011 (Local Government Code 140, Tax Code 31, Tax Code 26, Tax Code 11)