Campos Bill Matches Veterans’ Home Tax Exemption To Disability Rating

The text as introduced · 1,690 words

89R9218 JBD-D

By: Campos
H.B. No. 2032

A BILL TO BE ENTITLED

AN ACT

relating to the exemption from ad valorem taxation of part of the

appraised value of the residence homestead of a partially disabled

veteran or the surviving spouse of such a veteran based on the

disability rating of the veteran.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by

adding Section 11.136 to read as follows:

Sec. 11.136. RESIDENCE HOMESTEAD OF CERTAIN PARTIALLY

DISABLED VETERANS. (a) In this section:

(1) "Disability rating" and "disabled veteran" have

the meanings assigned by Section 11.22.

(2) "Residence homestead" has the meaning assigned by

Section 11.13.

(3) "Surviving spouse" has the meaning assigned by

Section 11.131.

(b) A disabled veteran who has a disability rating of at

least 10 percent but less than 100 percent is entitled to an

exemption from taxation of a percentage of the appraised value of

the disabled veteran's residence homestead equal to the disabled

veteran's disability rating.

(c) The surviving spouse of a disabled veteran who qualified

for an exemption under Subsection (b) of a percentage of the

appraised value of the disabled veteran's residence homestead when

the disabled veteran died, or of a disabled veteran who would have

qualified for an exemption under that subsection if that subsection

had been in effect on the date the disabled veteran died, is

entitled to an exemption from taxation of the same percentage of the

appraised value of the same property to which the disabled

veteran's exemption applied, or to which the disabled veteran's

exemption would have applied if the exemption had been authorized

on the date the disabled veteran died, if:

(1) the surviving spouse has not remarried since the

death of the disabled veteran; and

(2) the property:

(A) was the residence homestead of the surviving

spouse when the disabled veteran died; and

(B) remains the residence homestead of the

surviving spouse.

(d) If a surviving spouse who qualifies for an exemption

under Subsection (c) subsequently qualifies a different property as

the surviving spouse's residence homestead, the surviving spouse is

entitled to an exemption from taxation of the subsequently

qualified residence homestead in an amount equal to the dollar

amount of the exemption from taxation of the former residence

homestead under Subsection (c) in the last year in which the

surviving spouse received an exemption under that subsection for

that residence homestead if the surviving spouse has not remarried

since the death of the disabled veteran. The surviving spouse is

entitled to receive from the chief appraiser of the appraisal

district in which the former residence homestead was located a

written certificate providing the information necessary to

determine the amount of the exemption to which the surviving spouse

is entitled on the subsequently qualified residence homestead.

SECTION 2. Section 11.42(c), Tax Code, is amended to read as

follows:

(c) An exemption authorized by Section 11.13(c) or (d),

11.132, 11.133, [ or ] 11.134 , or 11.136 is effective as of January 1

of the tax year in which the person qualifies for the exemption and

applies to the entire tax year.

SECTION 3. Sections 11.43(c) and (k), Tax Code, are amended

to read as follows:

(c) An exemption provided by Section 11.13, 11.131, 11.132,

11.133, 11.134, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183,

11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),

11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35,

or 11.36, once allowed, need not be claimed in subsequent years, and

except as otherwise provided by Subsection (e), the exemption

applies to the property until it changes ownership or the person's

qualification for the exemption changes. However, except as

provided by Subsection (r), the chief appraiser may require a

person allowed one of the exemptions in a prior year to file a new

application to confirm the person's current qualification for the

exemption by delivering a written notice that a new application is

required, accompanied by an appropriate application form, to the

person previously allowed the exemption. If the person previously

allowed the exemption is 65 years of age or older, the chief

appraiser may not cancel the exemption due to the person's failure

to file the new application unless the chief appraiser complies

with the requirements of Subsection (q), if applicable.

(k) A person who qualifies for an exemption authorized by

Section 11.13(c) or (d) , [ or ] 11.132 , or 11.136 must apply for the

exemption no later than the first anniversary of the date the person

qualified for the exemption.

SECTION 4. Section 11.439(a), Tax Code, is amended to read

as follows:

(a) The chief appraiser shall accept and approve or deny an

application for an exemption under Section 11.131 , [ or ] 11.132 , or

11.136 for the residence homestead of a disabled veteran but not the

surviving spouse of the disabled veteran or Section 11.22 after the

filing deadline provided by Section 11.43 if the application is

filed not later than five years after the delinquency date for the

taxes on the property.

SECTION 5. Section 26.10(b), Tax Code, is amended to read as

follows:

(b) If the appraisal roll shows that a residence homestead

exemption under Section 11.13(c) or (d), 11.132, 11.133, [ or ]

11.134 , or 11.136 applicable to a property on January 1 of a year

terminated during the year and if the owner of the property

qualifies a different property for one of those residence homestead

exemptions during the same year, the tax due against the former

residence homestead is calculated by:

(1) subtracting:

(A) the amount of the taxes that otherwise would

be imposed on the former residence homestead for the entire year had

the owner qualified for the residence homestead exemption for the

entire year; from

(B) the amount of the taxes that otherwise would

be imposed on the former residence homestead for the entire year had

the owner not qualified for the residence homestead exemption

during the year;

(2) multiplying the remainder determined under

Subdivision (1) by a fraction, the denominator of which is 365 and

the numerator of which is the number of days that elapsed after the

date the exemption terminated; and

(3) adding the product determined under Subdivision

(2) and the amount described by Subdivision (1)(A).

SECTION 6. Section 26.1127, Tax Code, is amended to read as

follows:

Sec. 26.1127. CALCULATION OF TAXES ON [ DONATED ] RESIDENCE

HOMESTEAD OF CERTAIN DISABLED VETERANS [ VETERAN ] OR SURVIVING

SPOUSE OF CERTAIN DISABLED VETERANS [ VETERAN ]. (a) Except as

provided by Section 26.10(b), if at any time during a tax year

property is owned by an individual who qualifies for an exemption

under Section 11.132 or 11.136 , the amount of the tax due on the

property for the tax year is calculated as if the individual

qualified for the exemption on January 1 and continued to qualify

for the exemption for the remainder of the tax year.

(b) If an individual qualifies for an exemption under

Section 11.132 or 11.136 with respect to the property after the

amount of the tax due on the property is calculated and the effect

of the qualification is to reduce the amount of the tax due on the

property, the assessor for each taxing unit shall recalculate the

amount of the tax due on the property and correct the tax roll. If

the tax bill has been mailed and the tax on the property has not been

paid, the assessor shall mail a corrected tax bill to the individual

in whose name the property is listed on the tax roll or to the

individual's authorized agent. If the tax on the property has been

paid, the tax collector for the taxing unit shall refund to the

individual who was the owner of the property on the date the tax was

paid the amount by which the payment exceeded the tax due.

SECTION 7. Section 31.031(a), Tax Code, is amended to read

as follows:

(a) This section applies only to:

(1) an individual who is:

(A) disabled or at least 65 years of age; and

(B) qualified for an exemption under Section

11.13(c); or

(2) an individual who is:

(A) a disabled veteran or the unmarried surviving

spouse of a disabled veteran; and

(B) qualified for an exemption under Section

11.132 , 11.136, or 11.22.

SECTION 8. Section 140.011(c), Local Government Code, is

amended to read as follows:

(c) For the purposes of this section, the amount of a local

government's lost ad valorem tax revenue for a fiscal year is

calculated by multiplying the ad valorem tax rate adopted by the

local government under Section 26.05, Tax Code, for the tax year in

which the fiscal year begins by the sum of:

(1) the total appraised value of all property located

in the local government that is exempt [ granted an exemption ] from

taxation under Section 11.131, Tax Code, for that tax year ; and

(2) the total dollar amount of the portion of the

appraised value of all property located in the local government

that is exempt from taxation under Section 11.136, Tax Code, for

that tax year .

SECTION 9. This Act applies only to ad valorem taxes imposed

for an ad valorem tax year that begins on or after the effective

date of this Act.

SECTION 10. It is the intent of the 89th Legislature,

Regular Session, 2025, that the amendments made by this Act be

harmonized with another Act of the 89th Legislature, Regular

Session, 2025, relating to nonsubstantive additions to and

corrections in enacted codes.

SECTION 11. This Act takes effect January 1, 2026, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, authorizing the legislature to provide for

an exemption from ad valorem taxation of part of the market value of

the residence homestead of a partially disabled veteran or the

surviving spouse of such a veteran based on the disability rating of

the veteran is approved by the voters. If that amendment is not

approved by the voters, this Act has no effect.