The bill amends the Texas Tax Code to provide an exemption from ad valorem taxation for the total appraised value of residence homesteads owned by individuals aged 72 or older, as well as their surviving spouses. It introduces new subsections (s) and (t) to Section 11.13, which stipulate that individuals who are 72 years of age or older and have received a homestead exemption for at least the preceding ten years are entitled to this exemption. The surviving spouse of a qualifying individual can also receive the same exemption if they are at least 55 years old at the time of the spouse's death and continue to reside in the property. The bill also clarifies the application process for exemptions and outlines procedures for recalculating taxes due when exemptions are granted or canceled.

Additionally, the bill amends various sections of the Education Code and Government Code to enhance transparency and provide financial support for school districts, particularly regarding property tax rates and exemptions for elderly residents. It requires public meeting notices about budget discussions to include specific information on proposed tax rates and exemptions for residents aged 72 and older. The bill introduces new sections for additional state aid for school districts starting in the 2027-2028 school year, contingent upon the adoption of a constitutional amendment regarding property tax exemptions for certain elderly individuals. The effective date for these changes is set for January 1, 2027, pending voter approval of the related constitutional amendment.

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