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) grants a full exemption to individuals who are 65 years or older and have received an exemption for at least the preceding ten years. Subsection (t) extends this full exemption to the surviving spouse of a qualifying individual, provided that the deceased spouse was qualifying for the exemption at the time of death and that the surviving spouse was at least 55 years old at that time. The bill also includes amendments to streamline the application and cancellation process for these exemptions.

Additionally, the bill introduces changes 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 for residents aged 65 and older. The bill also establishes provisions for additional state aid to school districts starting in the 2027-2028 school year, contingent upon the adoption of a constitutional amendment related to residence homestead exemptions for elderly individuals. The exemptions will apply only to taxes imposed beginning with the 2027 tax year, and the bill is set to take effect on January 1, 2027, pending voter approval of the 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 48, Tax Code 11, Tax Code 33, Education Code 46, Tax Code 26)