disabled veteran tax break becomes a percentage

The text as introduced · 669 words

89R16119 RDS-F

By: Cook
H.B. No. 4321

A BILL TO BE ENTITLED

AN ACT

relating to the exemption from ad valorem taxation of a percentage

of the assessed value of a property owned by certain disabled

veterans and the amount of the exemption for the surviving spouses

and children of certain disabled veterans.

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

SECTION 1. Sections 11.22(a), (b), and (c), Tax Code, are

amended to read as follows:

(a) A disabled veteran is entitled to an exemption from

taxation of the following applicable percentage [ a portion ] of the

assessed value of a property the veteran owns and designates as

provided by Subsection (f) [ in accordance with the following

schedule ]:

(1) 20 percent for a veteran having a disability

rating of at least 10 percent but less than 30 percent;

(2) 40 percent for a veteran having a disability

rating of at least 30 percent but less than 50 percent;

(3) 60 percent for a veteran having a disability

rating of at least 50 percent but less than 70 percent;

(4) 80 percent for a veteran having a disability

rating of at least 70 percent but less than 100 percent; or

(5) 100 percent for a veteran having a disability

rating of 100 percent.

[ an exemption of

for a disability rating of

up to:

at least:

but less than:

$5,000 of the

10%

30%

assessed value

7,500

30

50

10,000

50

70

12,000

70 and over ]

(b) A disabled veteran who does not have a disability rating

of 100 percent is entitled to an exemption from taxation of 80

percent [ $12,000 ] of the assessed value of a property the veteran

owns and designates as provided by Subsection (f) [ of this section ]

if the veteran:

(1) is 65 years of age or older and has a disability

rating of at least 10 percent;

(2) is totally blind in one or both eyes; or

(3) has lost the use of one or more limbs.

(c) If a disabled veteran who is entitled to an exemption by

Subsection (a) or (b) [ of this section ] dies, the veteran's

surviving spouse is entitled to an exemption from taxation of a

portion of the assessed value of a property the spouse owns and

designates as provided by Subsection (f) [ of this section ]. The

amount of the exemption is the dollar amount of the veteran's

exemption at time of death. The spouse is entitled to an exemption

by this subsection only for as long as the spouse remains unmarried.

If the spouse does not survive the veteran, each of the veteran's

surviving children who is younger than 18 years of age and unmarried

is entitled to an exemption from taxation of a portion of the

assessed value of a property the child owns and designates as

provided by Subsection (f) [ of this section ]. The amount of

exemption for each eligible child is computed by dividing the

dollar amount of the veteran's exemption at time of death by the

number of eligible children.

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

follows:

(d) A person who acquires property after January 1 of a tax

year may receive an exemption authorized by Section 11.17, 11.18,

11.19, 11.20, 11.21, 11.22, 11.23, 11.231, 11.30, or 11.36 for the

applicable portion of that tax year immediately on qualification

for the exemption.

SECTION 3. This Act applies only to ad valorem taxes imposed

for a tax year that begins on or after the effective date of this

Act.

SECTION 4. 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 exempt from

ad valorem taxation a percentage of the assessed value of property

owned by certain disabled veterans is approved by the voters. If

that constitutional amendment is not approved by the voters, this

Act has no effect.