The bill proposes an exemption from ad valorem taxation for the total appraised value of residence homesteads owned by individuals aged 65 and older, as well as their surviving spouses. It amends Section 11.13 of the Tax Code by adding new subsections (s) and (t). Subsection (s) stipulates that individuals who are 65 years or older and have received an exemption for at least the preceding ten years are eligible for this exemption. Subsection (t) extends the same exemption to the surviving spouse of a qualifying individual, provided certain conditions are met, including the age of the surviving spouse at the time of the deceased spouse's death and the requirement that the property remains their residence homestead. The bill also includes amendments to existing provisions regarding the application and cancellation of exemptions, ensuring that qualifying individuals do not need to reapply under specific circumstances.

Additionally, the bill introduces amendments to the Education Code and Government Code concerning property tax notices and state aid for school districts. It mandates that school districts provide detailed notices about tax rates, budget comparisons, and appraised values to enhance transparency for taxpayers. The bill also establishes new criteria for additional state aid to school districts starting in the 2027-2028 school year, particularly in relation to the impact of residence homestead exemptions for elderly individuals. These provisions are contingent upon the approval of related constitutional amendments, ensuring that the changes will take effect only if voters approve them.

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