H.B. No. 202 seeks to amend the Texas Tax Code to provide a property tax exemption for the residence homesteads of partially disabled veterans and their surviving spouses. The bill introduces Section 11.137, which allows veterans with a disability rating of at least 10% but less than 100% to receive a tax exemption corresponding to their disability rating percentage. Surviving spouses of qualifying veterans, who have not remarried and maintain the property as their residence, are also entitled to the same exemption. The bill ensures that if a surviving spouse moves to a different property that qualifies as their residence homestead, they can retain the exemption amount previously granted.

Additionally, the bill amends various sections of the Tax Code to clarify the application process for these exemptions, including deadlines and conditions for validity. It expands eligibility for property tax exemptions to include disabled veterans and unmarried surviving spouses under specific sections of the Tax Code. The bill also modifies how local governments calculate lost ad valorem tax revenue by including the total appraised value of properties exempt under the new provisions. The effective date for these changes is set for January 1, 2027, contingent upon the approval of a constitutional amendment that would allow for such exemptions based on the veteran's disability rating. If the amendment is not approved, the provisions of the bill will not take effect.

Statutes affected:
Introduced: Tax Code 11.42, Tax Code 11.43, Tax Code 11.439, Tax Code 26.10, Tax Code 26.1127, Tax Code 31.031, Local Government Code 140.011 (Tax Code 31, Tax Code 11, Tax Code 26, Local Government Code 140)