Relating to the amount of the exemption from ad valorem taxation to which certain disabled veterans are entitled.
Impact
The bill is expected to have significant implications for state tax policy, particularly as it pertains to local governments that rely on property tax revenue. If enacted, the changes could lead to a reduction in tax income for local authorities, which may necessitate adjustments in their budgeting and fiscal planning. Additionally, the effective date of the bill is slated for January 1, 2026, contingent upon voter approval of a constitutional amendment proposed during the 89th Legislature, which is intended to authorize the legislature to increase the exemption amounts. This indicates that there is an ongoing legislative effort to support disabled veterans while navigating potential impacts on local governmental funding.
Summary
Senate Bill 3060 aims to amend the Tax Code regarding property tax exemptions for disabled veterans. The proposed changes specifically increase the amount of the exemption based on the veteran's disability rating. Under the new provision, a veteran with a disability rating of 10% to 30% would receive a $30,000 exemption, while those with ratings of 30% to 50%, 50% to 70%, and 70% and above would receive $40,000, $50,000, and $100,000 respectively. This legislative adjustment reflects a growing recognition of the financial burdens faced by disabled veterans and seeks to alleviate some of those burdens through tax relief.
Contention
Notably, there may be points of contention surrounding this bill, particularly regarding the fiscal impact of increasing property tax exemptions. Supporters are likely to emphasize the moral imperative of assisting veterans who have served their country, arguing that such measures are warranted despite potential financial consequences. Conversely, opponents may express concerns about the sustainability of funding for local services that depend on property tax revenues, raising questions about whether the benefits for veterans justify the financial strain imposed on local government budgets.
Enabling for
Proposing a constitutional amendment authorizing the legislature to increase the amount of the exemption from ad valorem taxation of property owned by certain disabled veterans.
Relating to the exemption from ad valorem taxation of the total appraised value of the residence homestead of the surviving spouse of a 100 percent or totally disabled veteran.
Relating to an exemption from ad valorem taxation by certain taxing units of a portion of the appraised value of the residence homestead of the parent or guardian of a person who is disabled and who resides with the parent or guardian.
Relating to an exemption from ad valorem taxation by a school district of a dollar amount or a percentage, whichever is greater, of the appraised value of a residence homestead, an adjustment of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a person who is elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.
Relating to an exemption from ad valorem taxation by a school district of a dollar amount or a percentage, whichever is greater, of the appraised value of a residence homestead, an adjustment of the limitation on the total amount of ad valorem taxes that may be imposed by a school district on the homestead of a person who is elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.
Relating to the provision of state aid to certain local governments to offset the cost of the exemption from ad valorem taxation of the residence homestead of a 100 percent or totally disabled veteran.
Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amount, and the protection of school districts against the resulting loss in local revenue.