H.B. No. 273 seeks to amend the Texas Tax Code by introducing a new section, 11.262, which allows specific taxing units—excluding school districts, counties, municipalities, and junior college districts—to impose limitations 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 these units cannot increase the total annual ad valorem taxes on the homesteads of eligible individuals beyond the amount imposed in the first tax year they qualified for the exemption.

Furthermore, the bill clarifies definitions and exclusions related to the taxable value of property for various taxing units, specifying how corporations must apportion liability for reimbursing property taxes among stockholders based on the taxable values of their interests. It revises the definition of "current total value" to include exclusions for school districts, counties, municipalities, and junior college districts concerning homesteads qualifying for tax limitations under Sections 11.26, 11.261, and 11.262. 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 limitations 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 23, Tax Code 26)