89R9218 JBD-D
By: Middleton S.B. No. 1126
A BILL TO BE ENTITLED
AN ACT
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.
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 CERTAIN PARTIALLY
DISABLED VETERANS. (a) In this section:
(1) "Disability rating" and "disabled veteran" have
the meanings assigned by Section 11.22.
(2) "Residence homestead" has the meaning assigned by
Section 11.13.
(3) "Surviving spouse" has the meaning assigned by
Section 11.131.
(b) A disabled veteran who has a disability rating of at
least 10 percent but less than 100 percent is entitled to an
exemption from taxation of a percentage of the appraised value of
the disabled veteran's residence homestead equal to the disabled
veteran's disability rating.
(c) The surviving spouse of a disabled veteran who qualified
for an exemption under Subsection (b) of a percentage of the
appraised value of the disabled veteran's residence homestead when
the disabled veteran died, or of a disabled veteran who would have
qualified for an exemption under that subsection if that subsection
had been in effect on the date the disabled veteran died, is
entitled to an exemption from taxation of the same percentage of the
appraised value of the same property to which the disabled
veteran's exemption applied, or to which the disabled veteran's
exemption would have applied if the exemption had been authorized
on the date the disabled veteran died, if:
(1) the surviving spouse has not remarried since the
death of the disabled veteran; and
(2) the property:
(A) was the residence homestead of the surviving
spouse when the disabled veteran died; and
(B) remains the residence homestead of the
surviving spouse.
(d) If a surviving spouse who qualifies for an exemption
under Subsection (c) subsequently qualifies a different property as
the surviving spouse's residence homestead, the surviving spouse is
entitled to an exemption from taxation of the subsequently
qualified residence homestead in an amount equal to the dollar
amount of the exemption from taxation of the former residence
homestead under Subsection (c) in the last year in which the
surviving spouse received an exemption under that subsection for
that residence homestead if the surviving spouse has not remarried
since the death of the disabled veteran. The surviving spouse is
entitled to receive from the chief appraiser of the appraisal
district in which the former residence homestead was located a
written certificate providing the information necessary to
determine the amount of the exemption to which the surviving spouse
is entitled on the subsequently qualified residence homestead.
SECTION 2. Section 11.42(c), Tax Code, is amended to read as
follows:
(c) An exemption authorized by Section 11.13(c) or (d),
11.132, 11.133, [or] 11.134, or 11.136 is effective as of January 1
of the tax year in which the person qualifies for the exemption and
applies to the entire tax year.
SECTION 3. Sections 11.43(c) and (k), Tax Code, are 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, 11.35,
or 11.36, 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.
(k) A person who qualifies for an exemption authorized by
Section 11.13(c) or (d), [or] 11.132, or 11.136 must apply for the
exemption no later than the first anniversary of the date the person
qualified for the exemption.
SECTION 4. Section 11.439(a), Tax Code, is amended to read
as follows:
(a) The chief appraiser shall accept and approve or deny an
application for an exemption under Section 11.131, [or] 11.132, or
11.136 for the residence homestead of a disabled veteran but not the
surviving spouse of the disabled veteran or Section 11.22 after the
filing deadline provided by Section 11.43 if the application is
filed not later than five years after the delinquency date for the
taxes on the property.
SECTION 5. Section 26.10(b), Tax Code, is amended to read as
follows:
(b) If the appraisal roll shows that a residence homestead
exemption under Section 11.13(c) or (d), 11.132, 11.133, [or]
11.134, or 11.136 applicable to a property on January 1 of a year
terminated during the year and if the owner of the property
qualifies a different property for one of those residence homestead
exemptions during the same year, the tax due against the former
residence homestead is calculated by:
(1) subtracting:
(A) the amount of the taxes that otherwise would
be imposed on the former residence homestead for the entire year had
the owner qualified for the residence homestead exemption for the
entire year; from
(B) the amount of the taxes that otherwise would
be imposed on the former residence homestead for the entire year had
the owner not qualified for the residence homestead exemption
during the year;
(2) multiplying the remainder determined under
Subdivision (1) 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; and
(3) adding the product determined under Subdivision
(2) and the amount described by Subdivision (1)(A).
SECTION 6. Section 26.1127, Tax Code, is amended to read as
follows:
Sec. 26.1127. CALCULATION OF TAXES ON [DONATED] RESIDENCE
HOMESTEAD OF CERTAIN DISABLED VETERANS [VETERAN] OR SURVIVING
SPOUSE OF CERTAIN DISABLED VETERANS [VETERAN]. (a) Except as
provided by Section 26.10(b), if at any time during a tax year
property is owned by an individual who qualifies for an exemption
under Section 11.132 or 11.136, the amount of the tax due on the
property for the tax year is calculated as if the individual
qualified for the exemption on January 1 and continued to qualify
for the exemption for the remainder of the tax year.
(b) If an individual qualifies for an exemption under
Section 11.132 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 individual
in whose name the property is listed on the tax roll or to the
individual's authorized agent. If the tax on the property has been
paid, the tax collector for the taxing unit shall refund to the
individual 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 7. Section 31.031(a), Tax Code, is amended to read
as follows:
(a) This section applies only to:
(1) an individual who is:
(A) disabled or at least 65 years of age; and
(B) qualified for an exemption under Section
11.13(c); or
(2) an individual who is:
(A) a disabled veteran or the unmarried surviving
spouse of a disabled veteran; and
(B) qualified for an exemption under Section
11.132, 11.136, or 11.22.
SECTION 8. Section 140.011(c), Local Government Code, is
amended to read as follows:
(c) For the purposes of this section, the amount of a local
government's lost ad valorem tax revenue for a fiscal year is
calculated by multiplying the ad valorem tax rate adopted by the
local government under Section 26.05, Tax Code, for the tax year in
which the fiscal year begins by the sum of:
(1) the total appraised value of all property located
in the local government that is exempt [granted an exemption] from
taxation under Section 11.131, Tax Code, for that tax year; and
(2) the total dollar amount of the portion of the
appraised value of all property located in the local government
that is exempt from taxation under Section 11.136, Tax Code, for
that tax year.
SECTION 9. This Act applies only to ad valorem taxes imposed
for an ad valorem tax year that begins on or after the effective
date of this Act.
SECTION 10. It is the intent of the 89th Legislature,
Regular Session, 2025, that the amendments made by this Act be
harmonized with another Act of the 89th Legislature, Regular
Session, 2025, relating to nonsubstantive additions to and
corrections in enacted codes.
SECTION 11. 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 provide for
an exemption from ad valorem taxation of part of the market 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 is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.