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), which establish eligibility criteria for the exemption. Subsection (s) specifies that individuals aged 65 or older who have received a homestead exemption for at least the preceding ten years qualify for this exemption. Subsection (t) extends the same exemption to the surviving spouse of a deceased individual who qualified, provided the spouse is at least 55 years old at the time of 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 do not need to reapply under certain 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 public meeting notices on tax rates include specific information in bold and reduced type, such as proposed tax rates and comparisons with previous years, particularly focusing on exemptions for residents aged 65 and older. The bill also stipulates that starting with the 2027-2028 school year, school districts will receive additional state aid if their local revenue for debt service falls below previous levels. Furthermore, it outlines the calculation of local interest and sinking revenue for debt service and emphasizes the need for transparency in tax rate changes, aiming to provide financial support to school districts affected by these exemptions. Certain provisions will only take effect if related constitutional amendments are approved by voters.

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