The bill proposes an exemption from ad valorem taxation for the total appraised value of residence homesteads owned by elderly 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 aged 65 or older who have received an exemption for at least the preceding ten years are entitled to this exemption. Subsection (t) allows the surviving spouse of a qualifying individual to also receive the exemption, provided they are at least 55 years old at the time of the deceased spouse's death and 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 are not penalized for failing to provide certain information.

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 public meeting notices on tax rates include specific information in bold and reduced type, such as potential tax rates, links to local property tax databases, and comparisons of proposed budgets and tax rates with the previous year. The bill also establishes provisions for additional state aid to school districts starting in the 2027-2028 school year, contingent upon the approval of a constitutional amendment, to offset losses in local revenue due to new homestead exemptions for elderly residents. The effectiveness of certain sections of the bill is tied to the approval of a constitutional amendment proposed by H.J.R. 133 during the 89th Legislature, Regular Session, 2025.

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 26, Tax Code 33, Tax Code 11)