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 elderly individuals aged 65 and older, as well as their surviving spouses. It introduces provisions allowing individuals who have received a homestead exemption for at least the preceding ten years to qualify for this exemption. Additionally, the surviving spouse of a deceased individual who qualified for the exemption can also receive it if they meet certain conditions, including being at least 55 years old at the time of death and maintaining the property as their residence homestead. The bill also includes amendments that allow tax assessors to disregard certain exemptions when assessing taxes pledged for debt payment and clarifies the application process for exemptions.

Moreover, the bill introduces amendments to the Education Code and Government Code regarding 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 with previous years. The bill establishes new criteria for additional state aid to school districts starting in the 2027-2028 school year, particularly concerning the impact of residence homestead exemptions for elderly individuals. It specifies that districts may receive additional aid if their local revenue for debt service is less than what would have been available under previous laws, aiming to enhance transparency in property tax processes and support school districts affected by changes in tax exemptions for senior citizens.

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