Veterans Keep Property Tax Exemption On Homes Held In Trust

The text as introduced · 367 words

90R1972 CS-D

By: Leo Wilson
H.B. No. 106

A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of property to receive an ad valorem tax

exemption for property of a disabled veteran, the surviving spouse

or minor children of a disabled veteran, or the surviving spouse and

minor children of a member of the armed forces who dies while on

active duty if the property is owned by a qualifying trust.

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

SECTION 1. Section 11.22, Tax Code, is amended by adding

Subsection (d-1) to read as follows:

(d-1) For purposes of this section, an individual is

considered to own a property if the individual owns the property

directly or through a beneficial interest in a qualifying trust.

SECTION 2. Section 11.22(h), Tax Code, is amended by adding

Subdivision (3-a) to read as follows:

(3-a) "Qualifying trust" means a trust:

(A) in which the agreement, will, or court order

creating the trust, an instrument transferring property to the

trust, or any other agreement that is binding on the trustee

provides that the trustor of the trust or a beneficiary of the trust

has the right to use and occupy the property rent free and without

charge except for taxes and other costs and expenses specified in

the instrument or court order:

(i) for life;

(ii) for the lesser of life or a term of

years; or

(iii) until the date the trust is revoked or

terminated by an instrument or court order that describes the

property with sufficient certainty to identify the property and is

recorded in the real property records of the county in which the

property is located; and

(B) that acquires the property in an instrument

of title or under a court order that:

(i) describes the property with sufficient

certainty to identify the property and the interest acquired; and

(ii) is recorded in the real property

records of the county in which the property is located.

SECTION 3. The change in law made by this Act applies only

to an ad valorem tax year that begins on or after January 1, 2028.

SECTION 4. This Act takes effect January 1, 2028.