Bell Bill Fully Exempts Homesteads Of Texans 72 And Older

The text as introduced · 4,162 words

89R1257 MLH/MM-D

By: Bell of Montgomery
H.B. No. 382

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation of the total

appraised value of the residence homesteads of certain elderly

persons and their surviving spouses.

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

SECTION 1. Section 11.13, Tax Code, is amended by amending

Subsection (i) and adding Subsections (s) and (t) to read as

follows:

(i) The assessor and collector for a taxing unit may

disregard the exemptions authorized by Subsection (b), (c), (d),

[ or ] (n) , (s), or (t) [ of this section ] and assess and collect a tax

pledged for payment of debt without deducting the amount of the

exemption if:

(1) prior to adoption of the exemption, the taxing

unit pledged the taxes for the payment of a debt; and

(2) granting the exemption would impair the obligation

of the contract creating the debt.

(s) In addition to any other exemptions provided by this

section, an individual is entitled to an exemption from taxation of

the total appraised value of the individual's residence homestead

if:

(1) the individual is 72 years of age or older; and

(2) the individual has received an exemption under

this section for the residence homestead for at least the preceding

10 years.

(t) The surviving spouse of an individual who qualified for

an exemption under Subsection (s) is entitled to an exemption from

taxation of the total appraised value of the same property to which

the deceased spouse's exemption applied if:

(1) the deceased spouse died in a year in which the

deceased spouse qualified for the exemption;

(2) the surviving spouse was 55 years of age or older

when the deceased spouse died; and

(3) the property was the residence homestead of the

surviving spouse when the deceased spouse died and remains the

residence homestead of the surviving spouse.

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),

or (s), 11.132, 11.133, or 11.134 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(k), (l), (m), (m-2), and (q), Tax

Code, are amended to read as follows:

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

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

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

qualified for the exemption.

(l) The form for an application under Section 11.13 must

include a space for the applicant to state the applicant's date of

birth and, if applicable, the date of birth of the applicant's

spouse. Failure to provide the applicant's date of birth does not

affect the applicant's eligibility for an exemption under that

section, other than an exemption under Section 11.13(c) or (d) for

an individual 65 years of age or older or an exemption under Section

11.13(s) for an individual 72 years of age or older . Failure to

provide the date of birth of the applicant's spouse does not affect

the applicant's eligibility for an exemption under Section 11.13 or

the applicant's spouse's eligibility for an exemption under that

section, other than an exemption under Section 11.13(q) for the

surviving spouse of an individual 65 years of age or older or an

exemption under Section 11.13(t) for the surviving spouse of an

individual 72 years of age or older .

(m) Notwithstanding Subsections (a) and (k), if a person who

receives an exemption under Section 11.13, other than an exemption

under Section 11.13(c) or (d) for an individual 65 years of age or

older or an exemption under Section 11.13(s) for an individual 72

years of age or older , in a tax year becomes 65 or 72 years of age in

the next tax year, as applicable, the person is entitled to receive

and the chief appraiser shall allow an exemption under Section

11.13(c) or (d) for an individual 65 years of age or older or an

exemption under Section 11.13(s) for an individual 72 years of age

or older, as applicable, in that next tax year on the same property

without requiring the person to apply for or otherwise request the

exemption if the person's age is shown by:

(1) information in the records of the appraisal

district that was provided to the appraisal district by the

individual in an application for an exemption under Section 11.13

on the property or in correspondence relating to the property; or

(2) the information provided by the Texas Department

of Public Safety to the appraisal district under Section 521.049,

Transportation Code.

(m-2) Notwithstanding Subsection (a), if a person who

receives an exemption under Section 11.13(d) for an individual 65

years of age or older or an exemption under Section 11.13(s) for an

individual 72 years of age or older dies in a tax year, that

person's surviving spouse is entitled to receive an exemption under

Section 11.13(q) or (t), as applicable, in the next tax year on the

same property without applying for the exemption if:

(1) the appraisal district learns of the person's

death from any source, including the death records maintained by

the vital statistics unit of the Department of State Health

Services or a local registration official; and

(2) the surviving spouse is otherwise eligible to

receive the exemption as shown by:

(A) information in the records of the appraisal

district that was provided to the appraisal district in an

application for an exemption under Section 11.13 on the property or

in correspondence relating to the property; or

(B) information provided by the Texas Department

of Public Safety to the appraisal district under Section 521.049,

Transportation Code.

(q) A chief appraiser may not cancel an exemption under

Section 11.13 that is received by an individual who is 65 years of

age or older without first providing written notice of the

cancellation to the individual receiving the exemption. The notice

must include a form on which the individual may indicate whether the

individual is qualified to receive the exemption and a

self-addressed postage prepaid envelope with instructions for

returning the form to the chief appraiser. The chief appraiser

shall consider the individual's response on the form in determining

whether to continue to allow the exemption. If the chief appraiser

does not receive a response on or before the 60th day after the date

the notice is mailed, the chief appraiser may cancel the exemption

on or after the 30th day after the expiration of the 60-day period,

but only after making a reasonable effort to locate the individual

and determine whether the individual is qualified to receive the

exemption. For purposes of this subsection, sending an additional

notice of cancellation that includes, in bold font equal to or

greater in size than the surrounding text, the date on which the

chief appraiser is authorized to cancel the exemption to the

individual receiving the exemption immediately after the

expiration of the 60-day period by first class mail in an envelope

on which is written, in all capital letters, "RETURN SERVICE

REQUESTED," or another appropriate statement directing the United

States Postal Service to return the notice if it is not deliverable

as addressed, or providing the additional notice in another manner

that the chief appraiser determines is appropriate, constitutes a

reasonable effort on the part of the chief appraiser. This

subsection does not apply to an exemption under Section 11.13(c) or

(d) for an individual 65 years of age or older or an exemption under

Section 11.13(s) for an individual 72 years of age or older that is

canceled because the chief appraiser determines that the individual

receiving the exemption no longer owns the property subject to the

exemption.

SECTION 4. 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), or (s), 11.132, 11.133,

or 11.134 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 5. Section 26.112, Tax Code, is amended to read as

follows:

Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD OF

CERTAIN PERSONS. (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 11.13(c) , [ or ] (d), or

(s), 11.133, or 11.134, 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 11.13(c) , [ or ] (d), or (s), 11.133, or 11.134 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 person in whose name the property is listed on the

tax roll or to the person's authorized agent. If the tax on the

property has been paid, the tax collector for the taxing unit shall

refund to the person 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 6. Section 33.01(d), Tax Code, is amended to read as

follows:

(d) In lieu of the penalty imposed under Subsection (a), a

delinquent tax incurs a penalty of 50 percent of the amount of the

tax without regard to the number of months the tax has been

delinquent if the tax is delinquent because the property owner

received an exemption under:

(1) Section 11.13 and the chief appraiser subsequently

cancels the exemption because the residence was not the principal

residence of the property owner and the property owner received an

exemption for two or more additional residence homesteads for the

tax year in which the tax was imposed;

(2) Section 11.13(c) or (d) for a person who is 65

years of age or older and the chief appraiser subsequently cancels

the exemption because the property owner was younger than 65 years

of age; [ or ]

(3) Section 11.13(s) for a person who is 72 years of

age or older and the chief appraiser subsequently cancels the

exemption because the property owner was younger than 72 years of

age; or

(4) Section 11.13(q) or (t) and the chief appraiser

subsequently cancels the exemption because the property owner was

younger than 55 years of age when the property owner's spouse died.

SECTION 7. Section 44.004(c), Education Code, is amended to

read as follows:

(c) The notice of public meeting to discuss and adopt the

budget and the proposed tax rate may not be smaller than one-quarter

page of a standard-size or a tabloid-size newspaper, and the

headline on the notice must be in 18-point or larger type. Subject

to Subsection (d), the notice must:

(1) contain a statement in the following form:

"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE

"The (name of school district) will hold a public meeting at

(time, date, year) in (name of room, building, physical location,

city, state). The purpose of this meeting is to discuss the school

district's budget that will determine the tax rate that will be

adopted. Public participation in the discussion is invited." The

statement of the purpose of the meeting must be in bold type. In

reduced type, the notice must state: "The tax rate that is

ultimately adopted at this meeting or at a separate meeting at a

later date may not exceed the proposed rate shown below unless the

district publishes a revised notice containing the same information

and comparisons set out below and holds another public meeting to

discuss the revised notice." In addition, in reduced type, the

notice must state: "Visit Texas.gov/PropertyTaxes to find a link to

your local property tax database on which you can easily access

information regarding your property taxes, including information

about proposed tax rates and scheduled public hearings of each

entity that taxes your property.";

(2) contain a section entitled "Comparison of Proposed

Budget with Last Year's Budget," which must show the difference,

expressed as a percent increase or decrease, as applicable, in the

amounts budgeted for the preceding fiscal year and the amount

budgeted for the fiscal year that begins in the current tax year for

each of the following:

(A) maintenance and operations;

(B) debt service; and

(C) total expenditures;

(3) contain a section entitled "Total Appraised Value

and Total Taxable Value," which must show the total appraised value

and the total taxable value of all property and the total appraised

value and the total taxable value of new property taxable by the

district in the preceding tax year and the current tax year as

calculated under Section 26.04, Tax Code;

(4) contain a statement of the total amount of the

outstanding and unpaid bonded indebtedness of the school district;

(5) contain a section entitled "Comparison of Proposed

Rates with Last Year's Rates," which must:

(A) show in rows the tax rates described by

Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of

property, for columns entitled "Maintenance & Operations,"

"Interest & Sinking Fund," and "Total," which is the sum of

"Maintenance & Operations" and "Interest & Sinking Fund":

(i) the school district's "Last Year's

Rate";

(ii) the "Rate to Maintain Same Level of

Maintenance & Operations Revenue & Pay Debt Service," which:

(a) in the case of "Maintenance &

Operations," is the tax rate that, when applied to the current

taxable value for the district, as certified by the chief appraiser

under Section 26.01, Tax Code, and as adjusted to reflect changes

made by the chief appraiser as of the time the notice is prepared,

would impose taxes in an amount that, when added to state funds to

be distributed to the district under Chapter 48, would provide the

same amount of maintenance and operations taxes and state funds

distributed under Chapter 48 per student in average daily

attendance for the applicable school year that was available to the

district in the preceding school year; and

(b) in the case of "Interest & Sinking

Fund," is the tax rate that, when applied to the current taxable

value for the district, as certified by the chief appraiser under

Section 26.01, Tax Code, and as adjusted to reflect changes made by

the chief appraiser as of the time the notice is prepared, and when

multiplied by the district's anticipated collection rate, would

impose taxes in an amount that, when added to state funds to be

distributed to the district under Chapter 46 and any excess taxes

collected to service the district's debt during the preceding tax

year but not used for that purpose during that year, would provide

the amount required to service the district's debt; and

(iii) the "Proposed Rate";

(B) contain fourth and fifth columns aligned with

the columns required by Paragraph (A) that show, for each row

required by Paragraph (A):

(i) the "Local Revenue per Student," which

is computed by multiplying the district's total taxable value of

property, as certified by the chief appraiser for the applicable

school year under Section 26.01, Tax Code, and as adjusted to

reflect changes made by the chief appraiser as of the time the

notice is prepared, by the total tax rate, and dividing the product

by the number of students in average daily attendance in the

district for the applicable school year; and

(ii) the "State Revenue per Student," which

is computed by determining the amount of state aid received or to be

received by the district under Chapters 43, 46, and 48 and dividing

that amount by the number of students in average daily attendance in

the district for the applicable school year; and

(C) contain an asterisk after each calculation

for "Interest & Sinking Fund" and a footnote to the section that, in

reduced type, states "The Interest & Sinking Fund tax revenue is

used to pay for bonded indebtedness on construction, equipment, or

both. The bonds, and the tax rate necessary to pay those bonds, were

approved by the voters of this district.";

(6) contain a section entitled "Comparison of Proposed

Levy with Last Year's Levy on Average Residence," which must:

(A) show in rows the information described by

Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns

entitled "Last Year" and "This Year":

(i) "Average Market Value of Residences,"

determined using the same group of residences for each year;

(ii) "Average Taxable Value of Residences,"

determined after taking into account the limitation on the

appraised value of residences under Section 23.23, Tax Code, and

after subtracting all homestead exemptions applicable in each year,

other than exemptions available only to disabled persons , [ or ]

persons 65 years of age or older or their surviving spouses, or

persons 72 years of age or older or their surviving spouses, and

using the same group of residences for each year;

(iii) "Last Year's Rate Versus Proposed

Rate per $100 Value"; and

(iv) "Taxes Due on Average Residence,"

determined using the same group of residences for each year; and

(B) contain the following information: "Increase

(Decrease) in Taxes" expressed in dollars and cents, which is

computed by subtracting the "Taxes Due on Average Residence" for

the preceding tax year from the "Taxes Due on Average Residence" for

the current tax year;

(7) contain the following statement in bold print:

"Under state law, the dollar amount of school taxes imposed on the

residence of a person 65 years of age or older or of the surviving

spouse of such a person, if the surviving spouse was 55 years of age

or older when the person died, may not be increased above the amount

paid in the first year after the person turned 65, regardless of

changes in tax rate or property value.";

(8) contain the following statement in bold print:

"Notice of Voter-Approval Rate: The highest tax rate the district

can adopt before requiring voter approval at an election is (the

school district voter-approval rate determined under Section

26.08, Tax Code). This election will be automatically held if the

district adopts a rate in excess of the voter-approval rate of (the

school district voter-approval rate)."; [ and ]

(9) contain a section entitled "Fund Balances," which

must include the estimated amount of interest and sinking fund

balances and the estimated amount of maintenance and operation or

general fund balances remaining at the end of the current fiscal

year that are not encumbered with or by corresponding debt

obligation, less estimated funds necessary for the operation of the

district before the receipt of the first payment under Chapter 48 in

the succeeding school year ; and

(10) contain the following statement in bold print:

"Under state law, the residence of a person 72 years of age or older

or of the surviving spouse of such a person, if the surviving spouse

was 55 years of age or older when the person died, is exempt from

taxes . "

SECTION 8. Section 46.071, Education Code, is amended by

adding Subsection (a-3) and amending Subsections (b-2) and (c-2) to

read as follows:

(a-3) Beginning with the 2026-2027 school year, in addition

to state aid a school district is entitled to under Subsection

(a-2), a school district is also entitled to additional state aid

under this subchapter to the extent that state and local revenue

used to service debt eligible under this chapter is less than the

state and local revenue that would have been available to the

district under this chapter as it existed on September 1, 2025, if

the residence homestead exemption for a person 72 years of age or

older or the person's surviving spouse under Section 1-b(q),

Article VIII, Texas Constitution, as proposed by the 89th

Legislature, Regular Session, 2025, had not been adopted.

(b-2) Subject to Subsections (c-2), (d), and (e),

additional state aid under this section beginning with the

2023-2024 school year is equal to the amount by which the loss of

local interest and sinking revenue for debt service attributable to

any increase in a residence homestead exemption under Section

1-b(c), Article VIII, Texas Constitution, and any additional

limitation on tax increases under Section 1-b(d) of that article as

proposed by the 88th Legislature, 2nd Called Session, 2023, and the

residence homestead exemption under Section 1-b(q), Article VIII,

Texas Constitution, as proposed by the 89th Legislature, Regular

Session, 2025, is not offset by a gain in state aid under this

chapter.

(c-2) For the purpose of determining state aid under

Subsection [ Subsections ] (a-2) or (a-3) [ and (b-2) ], local interest

and sinking revenue for debt service is limited to revenue required

to service debt eligible under this chapter as of September 1, 2023,

or as of September 1, 2025, respectively, or authorized by the

voters but not yet issued as of September 1, 2023, or as of

September 1, 2025, respectively, that later becomes eligible under

this chapter, including refunding of the applicable [ that ] debt,

subject to Section 46.061. The limitation imposed by Section

46.034(a) does not apply for the purpose of determining state aid

under Subsection (a-2) or (a-3) [ this section ].

SECTION 9. Section 48.2543, Education Code, is amended by

adding Subsection (a-2) and amending Subsection (b) to read as

follows:

(a-2) Beginning with the 2026-2027 school year, in addition

to state aid a school district is entitled to under Subsection

(a-1), a school district is entitled to additional state aid to the

extent that state and local revenue under this chapter and Chapter

49 is less than the state and local revenue that would have been

available to the district under this chapter and Chapter 49 as those

chapters existed on September 1, 2025, if the residence homestead

exemption for a person 72 years of age or older or the person's

surviving spouse under Section 1-b(q), Article VIII, Texas

Constitution, as proposed by the joint resolution to add that

subsection adopted by the 89th Legislature, Regular Session, 2025,

had not been adopted.

(b) The lesser of the school district's currently adopted

maintenance and operations tax rate or the adopted maintenance and

operations tax rate for:

(1) the 2021 tax year is used for the purpose of

determining additional state aid under Subsection (a); [ and ]

(2) the 2022 tax year is used for the purpose of

determining additional state aid under Subsection (a-1) ; and

(3) the 2025 tax year is used for the purpose of

determining additional state aid under Subsection (a-2) .

SECTION 10. Section 403.302(d-1), Government Code, is

amended to read as follows:

(d-1) For purposes of Subsection (d), a residence homestead

that receives an exemption under Section 11.13(s) or (t), 11.131,

11.133, or 11.134, Tax Code, in the year that is the subject of the

study is not considered to be taxable property.

SECTION 11. The exemptions from ad valorem taxation of a

residence homestead authorized by Sections 11.13(s) and (t), Tax

Code, as added by this Act, apply only to taxes imposed beginning

with the 2026 tax year.

SECTION 12. This Act takes effect January 1, 2026, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, to exempt from ad valorem taxation the total

market value of the residence homesteads of certain elderly persons

and their surviving spouses is approved by the voters. If that

amendment is not approved by the voters, this Act has no effect.