bill zeroing out homestead tax for unpaid Medicaid caregivers

The text as introduced · 1,121 words

By: Bernal
H.B. No. 511

A BILL TO BE ENTITLED

AN ACT

relating to an exemption from ad valorem taxation of the total

appraised value of the residence homestead of an unpaid caregiver

of an individual who is eligible to receive long-term services and

supports under the Medicaid program while the individual is on a

waiting list for the services and supports.

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 UNPAID CAREGIVER. (a)

In this section:

(1) "Qualifying caregiver" means a person who:

(A) is the parent, grandparent, or other legal

guardian of a qualifying individual; and

(B) provides care to the qualifying individual

without cost to the individual.

(2) "Qualifying individual" means a person who:

(A) is eligible to receive long-term services and

supports under the Medicaid program; and

(B) resides with a qualifying caregiver.

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

Section 11.13.

(4) "Section 1915(c) waiver program" has the meaning

assigned by Section 531.001, Government Code.

(b) A qualifying caregiver is entitled to an exemption from

taxation of the total appraised value of the qualifying caregiver's

residence homestead for the period prescribed by Subsection (c).

(c) A qualifying caregiver is eligible to receive an

exemption under this section only for the period during which the

qualifying individual for whom the qualifying caregiver provides

care is on an interest list for long-term services and supports

under the Medicaid program, including services and supports

provided under a Section 1915(c) waiver program, the STAR Kids

managed care program, or the STAR+PLUS home and community-based

services and supports program.

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

follows:

(e) A person who qualifies for an exemption under Section

11.131 , 11.136, or 11.35 after January 1 of a tax year may receive

the exemption for the applicable portion of that tax year

immediately on qualification for the exemption.

SECTION 3. Section 11.43(c), Tax Code, is 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, or

11.35, 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.

SECTION 4. Section 26.10(c), Tax Code, is amended to read as

follows:

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

exemption under Section 11.131 or 11.136 applicable to a property

on January 1 of a year terminated during the year, the tax due

against the residence homestead is calculated by multiplying the

amount of the taxes that otherwise would be imposed on the residence

homestead for the entire year had the individual not qualified for

the residence homestead exemption [ under Section 11.131 ] during the

year 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.

SECTION 5. Section 26.1125, Tax Code, is amended to read as

follows:

Sec. 26.1125. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD

OF 100 PERCENT OR TOTALLY DISABLED VETERAN OR UNPAID CAREGIVER . (a)

If a person qualifies for an exemption under Section 11.131 or

11.136 after the beginning of a tax year, the amount of the taxes on

the residence homestead of the person for the tax year is calculated

by multiplying the amount of the taxes that otherwise would be

imposed on the residence homestead for the entire year had the

person not qualified for the applicable exemption [ under Section

11.131 ] by a fraction, the denominator of which is 365 and the

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

date the person qualified for the applicable exemption [ under

Section 11.131 ].

(b) If a person qualifies for an exemption under Section

11.131 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 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 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 11.131, 11.133, [ or ]

11.134, or 11.136, Tax Code, in the year that is the subject of the

study is not considered to be taxable property.

SECTION 7. Section 11.136, Tax Code, as added by this Act,

applies only to ad valorem taxes imposed for a tax year beginning on

or after the effective date of this Act.

SECTION 8. 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 the total assessed value of the residence

homestead of an unpaid caregiver of an individual who is eligible to

receive long-term services and supports under the Medicaid program

while the individual is on a waiting list for the services and

supports is approved by the voters. If that constitutional

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