H.B. No. 273 introduces a provision in the Texas Tax Code that allows specific taxing units, excluding school districts, counties, municipalities, and junior college districts, to impose a limitation on ad valorem taxes for the residence homesteads of low-income individuals who are disabled or elderly, as well as their surviving spouses. The bill defines "eligible individuals" as those with a household income not exceeding 200% of the federal poverty level and establishes criteria for qualifying taxing units. It mandates that if calculated taxes exceed the established limitation, the tax imposed will be capped at that limited amount, and it outlines conditions under which the taxing unit cannot increase the total annual amount of taxes on these homesteads.

Additionally, the bill amends existing sections of the Tax Code to clarify definitions and exclusions related to the taxable value of property for various taxing units. It specifies how corporations must apportion liability for reimbursing property taxes among stockholders based on the relative taxable values of their interests and revises the definitions of "current total value," "last year's levy," and "last year's total value" to include exclusions for homesteads qualifying for tax limitations. The bill is set to take effect on January 1, 2027, contingent upon the approval of a constitutional amendment proposed by the 89th Legislature that would authorize the tax limitation for eligible low-income individuals. If the amendment is not approved by voters, the provisions of this bill will not take effect.

Statutes affected:
Introduced: Tax Code 23.19, Tax Code 26.012 (Tax Code 26, Tax Code 23)