Texas House Bill HB301

Texas 2025 - 89th 1st C.S.

• Filed: 8/12/25

Caption

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly individuals and their surviving spouses.

Impact

The implications of HB301 are substantial, particularly in relation to state property tax laws. If enacted, this bill would effectively alter the taxation framework for elderly homeowners, potentially allowing them to retain their homes without the burden of property taxes once they reach the qualifying age and maintain the necessary residency status. This could ease financial pressures on senior citizens and enhance housing stability for the elderly population.

Summary

House Bill 301 proposes an exemption from ad valorem taxation for the total appraised value of the residence homesteads of certain elderly individuals and their surviving spouses. Specifically, the bill stipulates that individuals aged 65 or older who have maintained a residence homestead exemption for at least ten years will qualify for a complete tax exemption. Additionally, it extends this benefit to surviving spouses provided they meet certain age and residency conditions upon the death of their spouse.

Contention

However, the bill does bring forth points of contention, especially regarding its financial implications for local governments and educational funding institutions that rely on property tax revenues. Critiques may arise centered on whether this tax exemption would lead to increased financial strain on local entities, as they might face reduced revenue from property taxes, which could impact public services and school funding. Opponents may also express concerns about the long-term sustainability and fairness of extending such exemptions to certain demographics while potentially disadvantaging others.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: 13
  • Section: 42
  • Section: 43

• Chapter 26. Assessment
  • Section: 10
  • Section: 112

Education Code

• Chapter 46. Assistance With Instructional Facilities And Payment Of Existing Debt
  • Section: 071

• Chapter 48. Foundation School Program
  • Section: 2543

• Chapter 44. Fiscal Management
  • Section: New Section

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 302