Texas 2025 - 89th Regular

Texas House Bill HB1648 Compare Versions

Only one version of the bill is available at this time.

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1	1	89R6361 MLH-F
2	2	By: Button H.B. No. 1648
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment of a limitation on the total amount of
10	10	ad valorem taxes that a county may impose on the residence
11	11	homesteads of individuals who are disabled or elderly and their
12	12	surviving spouses.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. The heading to Section 11.261, Tax Code, is
15	15	amended to read as follows:
16	16	Sec. 11.261. LIMITATION OF [COUNTY,] MUNICIPAL[,] OR JUNIOR
17	17	COLLEGE DISTRICT TAX ON HOMESTEADS OF INDIVIDUALS WHO ARE DISABLED
18	18	OR [AND] ELDERLY.
19	19	SECTION 2. Sections 11.261(a), (b), (c), (d), (e), (g),
20	20	(h), (i), (j), (k), and (l), Tax Code, are amended to read as
21	21	follows:
22	22	(a) This section applies only to a [county,]
23	23	municipality[,] or junior college district that has established a
24	24	limitation on the total amount of taxes that may be imposed by the
25	25	[county,] municipality[,] or junior college district on the
26	26	residence homestead of an individual who is [a] disabled
27	27	[individual] or is [an individual] 65 years of age or older under
28	28	Section 1-b(h), Article VIII, Texas Constitution.
29	29	(b) The tax officials shall appraise the property to which
30	30	this section [the limitation] applies and calculate taxes as on
31	31	other property, but if the tax so calculated exceeds the limitation
32	32	provided by this section, the tax imposed is the amount of the tax
33	33	as limited by this section, except as otherwise provided by this
34	34	section. The [county,] municipality[,] or junior college district
35	35	may not increase the total annual amount of ad valorem taxes the
36	36	[county,] municipality[,] or junior college district imposes on the
37	37	residence homestead of an individual who is [a] disabled
38	38	[individual] or is [an individual] 65 years of age or older above
39	39	the amount of the taxes the [county,] municipality[,] or junior
40	40	college district imposed on the residence homestead in the first
41	41	tax year, other than a tax year preceding the tax year in which the
42	42	[county,] municipality[,] or junior college district established
43	43	the limitation described by Subsection (a), in which the individual
44	44	qualified that residence homestead for the exemption provided by
45	45	Section 11.13(c) for an individual who is [a] disabled [individual]
46	46	or is [an individual] 65 years of age or older. If the individual
47	47	qualified that residence homestead for the exemption after the
48	48	beginning of that first year and the residence homestead remains
49	49	eligible for the exemption for the next year, and if the [county,]
50	50	municipal[,] or junior college district taxes imposed on the
51	51	residence homestead in the next year are less than the amount of
52	52	taxes imposed in that first year, a [county,] municipality[,] or
53	53	junior college district may not subsequently increase the total
54	54	annual amount of ad valorem taxes it imposes on the residence
55	55	homestead above the amount it imposed on the residence homestead in
56	56	the year immediately following the first year, other than a tax year
57	57	preceding the tax year in which the [county,] municipality[,] or
58	58	junior college district established the limitation described by
59	59	Subsection (a), for which the individual qualified that residence
60	60	homestead for the exemption.
61	61	(c) If an individual makes improvements to the individual's
62	62	residence homestead, other than repairs and other than improvements
63	63	required to comply with governmental requirements, the [county,]
64	64	municipality[,] or junior college district may increase the amount
65	65	of taxes on the homestead in the first year the value of the
66	66	homestead is increased on the appraisal roll because of the
67	67	enhancement of value by the improvements. The amount of the tax
68	68	increase is determined by applying the current tax rate to the
69	69	difference between the appraised value of the homestead with the
70	70	improvements and the appraised value the homestead [it] would have
71	71	had without the improvements. The [A] limitation provided by this
72	72	section then applies to the increased amount of [county,]
73	73	municipal[,] or junior college district taxes on the residence
74	74	homestead until more improvements, if any, are made.
75	75	(d) A limitation on [county,] municipal[,] or junior
76	76	college district tax increases provided by this section expires if
77	77	on January 1:
78	78	(1) none of the owners of the structure who qualify for
79	79	the exemption provided by Section 11.13(c) for an individual who is
80	80	[a] disabled [individual] or is [an individual] 65 years of age or
81	81	older and who owned the structure when the limitation [provided by
82	82	this section] first took effect is using the structure as a
83	83	residence homestead; or
84	84	(2) none of the owners of the structure qualifies for
85	85	the exemption provided by Section 11.13(c) for an individual who is
86	86	[a] disabled [individual] or is [an individual] 65 years of age or
87	87	older.
88	88	(e) If the appraisal roll provides for taxation of appraised
89	89	value for a prior year because a residence homestead exemption for
90	90	an individual who is disabled [individuals] or is [individuals] 65
91	91	years of age or older was erroneously allowed, the tax assessor for
92	92	the applicable [county,] municipality[,] or junior college
93	93	district shall add, as back taxes due as provided by Section
94	94	26.09(d), the positive difference, if any, between the tax that
95	95	should have been imposed for that year and the tax that was imposed
96	96	under [because of] the provisions of this section.
97	97	(g) Except as provided by Subsection (c), if an individual
98	98	who receives a limitation on [county,] municipal[,] or junior
99	99	college district tax increases provided by this section
100	100	subsequently qualifies a different residence homestead in the same
101	101	[county,] municipality[,] or junior college district for an
102	102	exemption under Section 11.13, the [county,] municipality[,] or
103	103	junior college district may not impose ad valorem taxes on the
104	104	subsequently qualified homestead in a year in an amount that
105	105	exceeds the amount of taxes the [county,] municipality[,] or junior
106	106	college district would have imposed on the subsequently qualified
107	107	homestead in the first year in which the individual receives that
108	108	exemption for the subsequently qualified homestead had the
109	109	limitation on tax increases provided by this section not been in
110	110	effect, multiplied by a fraction the numerator of which is the total
111	111	amount of taxes the [county,] municipality[,] or junior college
112	112	district imposed on the former homestead in the last year in which
113	113	the individual received that exemption for the former homestead and
114	114	the denominator of which is the total amount of taxes the [county,]
115	115	municipality[,] or junior college district would have imposed on
116	116	the former homestead in the last year in which the individual
117	117	received that exemption for the former homestead had the limitation
118	118	on tax increases provided by this section not been in effect.
119	119	(h) An individual who receives a limitation on [county,]
120	120	municipal[,] or junior college district tax increases under this
121	121	section and who subsequently qualifies a different residence
122	122	homestead in the same [county,] municipality[,] or junior college
123	123	district for an exemption under Section 11.13, or an agent of the
124	124	individual, is entitled to receive from the chief appraiser of the
125	125	appraisal district in which the former homestead was located a
126	126	written certificate providing the information necessary to
127	127	determine whether the individual may qualify for a limitation on
128	128	the subsequently qualified homestead under Subsection (g) and to
129	129	calculate the amount of taxes the [county,] municipality[,] or
130	130	junior college district may impose on the subsequently qualified
131	131	homestead.
132	132	(i) If an individual who qualifies for a limitation on
133	133	[county,] municipal[,] or junior college district tax increases
134	134	under this section dies, the surviving spouse of the individual is
135	135	entitled to the limitation on taxes imposed by the [county,]
136	136	municipality[,] or junior college district on the residence
137	137	homestead of the individual if:
138	138	(1) the surviving spouse is disabled or is 55 years of
139	139	age or older when the individual dies; and
140	140	(2) the residence homestead of the individual:
141	141	(A) is the residence homestead of the surviving
142	142	spouse on the date that the individual dies; and
143	143	(B) remains the residence homestead of the
144	144	surviving spouse.
145	145	(j) If an individual who is 65 years of age or older and
146	146	qualifies for a limitation on [county,] municipal[,] or junior
147	147	college district tax increases for the elderly under this section
148	148	dies in the first year in which the individual qualified for the
149	149	limitation and the individual first qualified for the limitation
150	150	after the beginning of that year, except as provided by Subsection
151	151	(k), the amount to which the surviving spouse's [county,]
152	152	municipal[,] or junior college district taxes are limited under
153	153	Subsection (i) is the amount of taxes imposed by the [county,]
154	154	municipality[,] or junior college district, as applicable, on the
155	155	residence homestead in that year determined as if the individual
156	156	qualifying for the exemption had lived for the entire year.
157	157	(k) If in the first tax year after the year in which an
158	158	individual who is 65 years of age or older dies under the
159	159	circumstances described by Subsection (j) the amount of taxes
160	160	imposed by a [county,] municipality[,] or junior college district
161	161	on the residence homestead of the surviving spouse is less than the
162	162	amount of taxes imposed by the [county,] municipality[,] or junior
163	163	college district in the preceding year as limited by Subsection
164	164	(j), in a subsequent tax year the surviving spouse's taxes imposed
165	165	by the [county,] municipality[,] or junior college district on that
166	166	residence homestead are limited to the amount of taxes imposed by
167	167	the [county,] municipality[,] or junior college district in that
168	168	first tax year after the year in which the individual dies.
169	169	(l) Notwithstanding Subsection (d), a limitation on
170	170	[county,] municipal[,] or junior college district tax increases
171	171	provided by this section does not expire if the owner of the
172	172	structure qualifies for an exemption under Section 11.13 under the
173	173	circumstances described by Section 11.135(a).
174	174	SECTION 3. Subchapter B, Chapter 11, Tax Code, is amended by
175	175	adding Section 11.262 to read as follows:
176	176	Sec. 11.262. LIMITATION OF COUNTY TAX ON HOMESTEADS OF
177	177	INDIVIDUALS WHO ARE DISABLED OR ELDERLY. (a) The tax officials
178	178	shall appraise the property to which this section applies and
179	179	calculate taxes as on other property, but if the tax so calculated
180	180	exceeds the limitation required by this section, the tax imposed is
181	181	the amount of the tax as limited by this section, except as
182	182	otherwise provided by this section.
183	183	(b) A county may not increase the total annual amount of ad
184	184	valorem taxes the county imposes on the residence homestead of an
185	185	individual who is disabled or is 65 years of age or older above the
186	186	amount of the taxes the county imposed on the residence homestead in
187	187	the first tax year in which the individual qualified that residence
188	188	homestead for the exemption provided by Section 11.13(c) for an
189	189	individual who is disabled or is 65 years of age or older. If the
190	190	individual qualified that residence homestead for the exemption
191	191	after the beginning of that first year and the residence homestead
192	192	remains eligible for the exemption for the next year, and if the
193	193	taxes imposed by the county on the residence homestead in the next
194	194	year are less than the amount of those taxes imposed in that first
195	195	year, the county may not subsequently increase the total annual
196	196	amount of ad valorem taxes it imposes on the residence homestead
197	197	above the amount it imposed on the residence homestead in the year
198	198	immediately following the first year for which the individual
199	199	qualified that residence homestead for the exemption.
200	200	(c) If the first tax year the individual qualified the
201	201	residence homestead for the exemption provided by Section 11.13(c)
202	202	for individuals who are disabled or are 65 years of age or older was
203	203	a tax year before the 2026 tax year and the homestead qualified for
204	204	a limitation on county taxes under Section 11.261, as that section
205	205	existed on January 1, 2025, for the 2026 tax year, the amount of the
206	206	limitation on county taxes required by this section is the amount of
207	207	the tax imposed by the county for the 2025 tax year, plus any 2026
208	208	tax attributable to improvements made in 2025, other than
209	209	improvements made to comply with governmental regulations or
210	210	repairs.
211	211	(d) Except as provided by Subsection (c), for the purpose of
212	212	calculating a limitation on tax increases by a county under this
213	213	section, an individual who qualified a residence homestead before
214	214	January 1, 2026, for an exemption under Section 11.13(c) for
215	215	individuals who are disabled or are 65 years of age or older is
216	216	considered to have qualified the homestead for that exemption on
217	217	January 1, 2026.
218	218	(e) If an individual makes improvements to the individual's
219	219	residence homestead, other than repairs and other than improvements
220	220	required to comply with governmental requirements, the county may
221	221	increase the amount of taxes on the homestead in the first year the
222	222	value of the homestead is increased on the appraisal roll because of
223	223	the enhancement of value by the improvements. The amount of the tax
224	224	increase is determined by applying the current tax rate of the
225	225	county to the difference between the appraised value of the
226	226	homestead with the improvements and the appraised value the
227	227	homestead would have had without the improvements. The limitation
228	228	provided by this section then applies to the increased amount of
229	229	county taxes on the residence homestead until more improvements, if
230	230	any, are made.
231	231	(f) A limitation on county tax increases required by this
232	232	section expires if on January 1:
233	233	(1) none of the owners of the structure who qualify for
234	234	the exemption provided by Section 11.13(c) for an individual who is
235	235	disabled or is 65 years of age or older and who owned the structure
236	236	when the limitation first took effect is using the structure as a
237	237	residence homestead; or
238	238	(2) none of the owners of the structure qualifies for
239	239	the exemption provided by Section 11.13(c) for an individual who is
240	240	disabled or is 65 years of age or older.
241	241	(g) If the appraisal roll provides for taxation of appraised
242	242	value for a prior year because a residence homestead exemption for
243	243	an individual who is disabled or is 65 years of age or older was
244	244	erroneously allowed, the tax assessor for the applicable county
245	245	shall add, as back taxes due as provided by Section 26.09(d), the
246	246	positive difference, if any, between the tax that should have been
247	247	imposed for that year and the tax that was imposed under the
248	248	requirements of this section.
249	249	(h) A limitation on county tax increases required by this
250	250	section does not expire because the owner of an interest in the
251	251	structure conveys the interest to a qualifying trust as defined by
252	252	Section 11.13(j) if the owner or the owner's spouse is a trustor of
253	253	the trust and is entitled to occupy the structure.
254	254	(i) Except as provided by Subsection (e), if an individual
255	255	who receives a limitation on county tax increases required by this
256	256	section, including a surviving spouse who receives a limitation
257	257	under Subsection (k), subsequently qualifies a different residence
258	258	homestead for an exemption under Section 11.13, a county may not
259	259	impose ad valorem taxes on the subsequently qualified homestead in
260	260	a year in an amount that exceeds the amount of taxes the county
261	261	would have imposed on the subsequently qualified homestead in the
262	262	first year in which the individual receives that exemption for the
263	263	subsequently qualified homestead had the limitation on tax
264	264	increases required by this section not been in effect, multiplied
265	265	by a fraction the numerator of which is the total amount of county
266	266	taxes imposed on the former homestead in the last year in which the
267	267	individual received that exemption for the former homestead and the
268	268	denominator of which is the total amount of county taxes that would
269	269	have been imposed on the former homestead in the last year in which
270	270	the individual received that exemption for the former homestead had
271	271	the limitation on tax increases required by this section not been in
272	272	effect.
273	273	(j) An individual who receives a limitation on county tax
274	274	increases under this section, including a surviving spouse who
275	275	receives a limitation under Subsection (k), and who subsequently
276	276	qualifies a different residence homestead for an exemption under
277	277	Section 11.13, or an agent of the individual, is entitled to receive
278	278	from the chief appraiser of the appraisal district in which the
279	279	former homestead was located a written certificate providing the
280	280	information necessary to determine whether the individual may
281	281	qualify for a limitation on the subsequently qualified homestead
282	282	under Subsection (i) and to calculate the amount of taxes the county
283	283	may impose on the subsequently qualified homestead.
284	284	(k) If an individual who qualifies for a limitation on
285	285	county tax increases under this section dies, the surviving spouse
286	286	of the individual is entitled to the limitation on taxes imposed by
287	287	the county on the residence homestead of the individual if:
288	288	(1) the surviving spouse is disabled or is 55 years of
289	289	age or older when the individual dies; and
290	290	(2) the residence homestead of the individual:
291	291	(A) is the residence homestead of the surviving
292	292	spouse on the date that the individual dies; and
293	293	(B) remains the residence homestead of the
294	294	surviving spouse.
295	295	(l) If an individual who is 65 years of age or older and
296	296	qualifies for a limitation on county tax increases for the elderly
297	297	under this section dies in the first year in which the individual
298	298	qualified for the limitation and the individual first qualified for
299	299	the limitation after the beginning of that year, except as provided
300	300	by Subsection (m), the amount to which the surviving spouse's
301	301	county taxes are limited under Subsection (k) is the amount of taxes
302	302	imposed by the county on the residence homestead in that year
303	303	determined as if the individual qualifying for the exemption had
304	304	lived for the entire year.
305	305	(m) If in the first tax year after the year in which an
306	306	individual who is 65 years of age or older dies under the
307	307	circumstances described by Subsection (l) the amount of taxes
308	308	imposed by a county on the residence homestead of the surviving
309	309	spouse is less than the amount of taxes imposed by the county in the
310	310	preceding year as limited by Subsection (l), in a subsequent tax
311	311	year the surviving spouse's taxes imposed by the county on that
312	312	residence homestead are limited to the amount of taxes imposed by
313	313	the county in that first tax year after the year in which the
314	314	individual dies.
315	315	(n) Notwithstanding Subsection (f), a limitation on county
316	316	tax increases required by this section does not expire if the owner
317	317	of the structure qualifies for an exemption under Section 11.13
318	318	under the circumstances described by Section 11.135(a).
319	319	(o) Notwithstanding Subsections (a) and (e), an improvement
320	320	to property that would otherwise constitute an improvement under
321	321	Subsection (e) is not treated as an improvement under that
322	322	subsection if the improvement is a replacement structure for a
323	323	structure that was rendered uninhabitable or unusable by a casualty
324	324	or by wind or water damage. For purposes of appraising the property
325	325	in the tax year in which the structure would have constituted an
326	326	improvement under Subsection (e), the replacement structure is
327	327	considered to be an improvement under that subsection only if:
328	328	(1) the square footage of the replacement structure
329	329	exceeds that of the replaced structure as that structure existed
330	330	before the casualty or damage occurred; or
331	331	(2) the exterior of the replacement structure is of
332	332	higher quality construction and composition than that of the
333	333	replaced structure.
334	334	(p) An heir property owner who qualifies heir property as
335	335	the owner's residence homestead under this chapter is considered
336	336	the sole owner of the property for the purposes of this section.
337	337	SECTION 4. Sections 23.19(b) and (g), Tax Code, are amended
338	338	to read as follows:
339	339	(b) If an appraisal district receives a written request for
340	340	the appraisal of real property and improvements of a cooperative
341	341	housing corporation according to the separate interests of the
342	342	corporation's stockholders, the chief appraiser shall separately
343	343	appraise the interests described by Subsection (d) if the
344	344	conditions required by Subsections (e) and (f) have been
345	345	met. Separate appraisal under this section is for the purposes of
346	346	administration of tax exemptions, determination of applicable
347	347	limitations of taxes under Section 11.26, [or] 11.261, or 11.262,
348	348	and apportionment by a cooperative housing corporation of property
349	349	taxes among its stockholders but is not the basis for determining
350	350	value on which a tax is imposed under this title. A stockholder
351	351	whose interest is separately appraised under this section may
352	352	protest and appeal the appraised value in the manner provided by
353	353	this title for protest and appeal of the appraised value of other
354	354	property.
355	355	(g) A tax bill or a separate statement accompanying the tax
356	356	bill to a cooperative housing corporation for which interests of
357	357	stockholders are separately appraised under this section must
358	358	state, in addition to the information required by Section 31.01,
359	359	the appraised value and taxable value of each interest separately
360	360	appraised. Each exemption claimed as provided by this title by a
361	361	person entitled to the exemption shall also be deducted from the
362	362	total appraised value of the property of the corporation. The
363	363	total tax imposed by a school district, [county,] municipality,
364	364	[or] junior college district, or county shall be reduced by any
365	365	amount that represents an increase in taxes attributable to
366	366	separately appraised interests of the real property and
367	367	improvements that are subject to the limitation of taxes prescribed
368	368	by Section 11.26, [or] 11.261, or 11.262. The corporation shall
369	369	apportion among its stockholders liability for reimbursing the
370	370	corporation for property taxes according to the relative taxable
371	371	values of their interests.
372	372	SECTION 5. Sections 26.012(6), (13), and (14), Tax Code,
373	373	are amended to read as follows:
374	374	(6) "Current total value" means the total taxable
375	375	value of property listed on the appraisal roll for the current year,
376	376	including all appraisal roll supplements and corrections as of the
377	377	date of the calculation, less the taxable value of property
378	378	exempted for the current tax year for the first time under Section
379	379	11.31 or 11.315, except that:
380	380	(A) the current total value for a school district
381	381	excludes:
382	382	(i) the total value of homesteads that
383	383	qualify for a tax limitation as provided by Section 11.26;
384	384	(ii) new property value of property that is
385	385	subject to an agreement entered into under former Subchapter B or C,
386	386	Chapter 313; and
387	387	(iii) new property value of property that
388	388	is subject to an agreement entered into under Subchapter T, Chapter
389	389	403, Government Code; [and]
390	390	(B) the current total value for a [county,]
391	391	municipality[,] or junior college district excludes the total value
392	392	of homesteads that qualify for a tax limitation as provided by
393	393	Section 11.261; and
394	394	(C) the current total value for a county excludes
395	395	the total value of homesteads that qualify for a tax limitation as
396	396	provided by Section 11.262.
397	397	(13) "Last year's levy" means the total of:
398	398	(A) the amount of taxes that would be generated
399	399	by multiplying the total tax rate adopted by the governing body in
400	400	the preceding year by the total taxable value of property on the
401	401	appraisal roll for the preceding year, including:
402	402	(i) taxable value that was reduced in an
403	403	appeal under Chapter 42;
404	404	(ii) all appraisal roll supplements and
405	405	corrections other than corrections made pursuant to Section
406	406	25.25(d), as of the date of the calculation, except that:
407	407	(a) last year's taxable value for a
408	408	school district excludes the total value of homesteads that
409	409	qualified for a tax limitation as provided by Section 11.26;
410	410	(b) [and] last year's taxable value
411	411	for a [county,] municipality[,] or junior college district excludes
412	412	the total value of homesteads that qualified for a tax limitation as
413	413	provided by Section 11.261; and
414	414	(c) last year's taxable value for a
415	415	county excludes the total value of homesteads that qualified for a
416	416	tax limitation as provided by Section 11.261; and
417	417	(iii) the portion of taxable value of
418	418	property that is the subject of an appeal under Chapter 42 on July
419	419	25 that is not in dispute; and
420	420	(B) the amount of taxes refunded by the taxing
421	421	unit in the preceding year for tax years before that year.
422	422	(14) "Last year's total value" means the total taxable
423	423	value of property listed on the appraisal roll for the preceding
424	424	year, including all appraisal roll supplements and corrections,
425	425	other than corrections made pursuant to Section 25.25(d), as of the
426	426	date of the calculation, except that:
427	427	(A) last year's taxable value for a school
428	428	district excludes the total value of homesteads that qualified for
429	429	a tax limitation as provided by Section 11.26; [and]
430	430	(B) last year's taxable value for a [county,]
431	431	municipality[,] or junior college district excludes the total value
432	432	of homesteads that qualified for a tax limitation as provided by
433	433	Section 11.261; and
434	434	(C) last year's taxable value for a county
435	435	excludes the total value of homesteads that qualified for a tax
436	436	limitation as provided by Section 11.262.
437	437	SECTION 6. This Act applies only to ad valorem taxes imposed
438	438	for a tax year beginning on or after the effective date of this Act.
439	439	SECTION 7. This Act takes effect January 1, 2026, but only
440	440	if the constitutional amendment proposed by the 89th Legislature,
441	441	Regular Session, 2025, establishing a limitation on the total
442	442	amount of ad valorem taxes that a county may impose on the residence
443	443	homesteads of persons who are disabled or elderly and their
444	444	surviving spouses is approved by the voters. If that amendment is
445	445	not approved by the voters, this Act has no effect.