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 a new 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 at the same dollar amount previously granted.

Additionally, the bill amends existing sections of the Tax Code to clarify the application process for these exemptions and expands eligibility to include unmarried surviving spouses of disabled veterans. It also modifies how local governments calculate lost ad valorem tax revenue by including the total appraised value of properties exempt under the new and existing sections. The bill is set to take effect on January 1, 2027, contingent upon the approval of a constitutional amendment that would allow for such exemptions based on the veteran's disability rating. If the amendment is not approved, the bill will have no 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 (Tax Code 26, Local Government Code 140, Tax Code 11, Tax Code 31)