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). Subsection (s) grants the exemption to individuals who are 65 years or older and have received an exemption for at least the preceding ten years, while 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 details about exemptions for residents aged 65 and older. 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. The bill outlines conditions for this additional aid, particularly in relation to the residence homestead exemption for elderly individuals, and specifies that the aid amount cannot be reduced below a certain threshold. The effectiveness of the bill is contingent upon the approval of related constitutional amendments by voters, with an intended effective date of January 1, 2027, if those amendments are approved.

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