Texas Senate Bill SB1126

Texas 2025 - 89th Regular

• Filed: 2/6/25

Caption

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.

Impact

If enacted, SB1126 would modify existing provisions in the Texas Tax Code that govern tax exemptions for disabled veterans and their spouses. The bill aims to provide significant financial relief to veterans and their families, acknowledging their service and sacrifices. It also illustrates a commitment by the state to support disabled veterans, reflecting broader societal values regarding veterans' welfare. However, the implementation of this exemption could impact local government revenues, as a portion of property taxes may be foregone.

Summary

Senate Bill 1126 aims to amend Texas property tax laws by providing a specific exemption from ad valorem taxation for a portion of the appraised value of the residence homestead belonging to partially disabled veterans and their surviving spouses. The bill stipulates that veterans with a disability rating between 10% and 100% will receive a tax exemption equal to their disability rating. Furthermore, the surviving spouse of a veteran who was eligible for such an exemption can also benefit from similar tax relief, provided certain conditions are met, such as not having remarried and maintaining the property as their residence homestead.

Contention

While the bill supports a noble cause, it may bring about discussions regarding the potential fiscal implications for local governments that might rely on property tax revenues. Critics might argue that such exemptions could strain local budgets and lead to increased tax burdens on other property owners. There's a delicate balance between providing necessary support to veterans and ensuring that local services funded by property taxes remain adequately supported. The requirement for surviving spouses to retain specific property qualifications may also raise questions about fairness and accessibility for those affected.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: New Section
  • Section: 42
  • Section: 439

• Chapter 26. Assessment
  • Section: 10
  • Section: 1127

• Chapter 31. Collections
  • Section: New Section

Local Government Code

• Chapter 140. Miscellaneous Financial Provisions Affecting Municipalities, Counties, And Other Local Governments
  • Section: New Section