Bill > HB455

This bill modifies the Texas Tax Code to expand and clarify tax limitations for disabled and elderly homeowners, focusing on how much tax certain taxing units (excluding school districts) can impose on their residence homesteads. The bill specifically updates provisions to standardize how tax increases are calculated and limited for homeowners who are 65 years or older or disabled, including their surviving spouses. Key changes include establishing new rules for how tax limitations will be determined for homesteads qualified before 2026, ensuring that homeowners who previously received tax exemptions will have their limitations calculated based on 2025 tax levels, and providing specific guidelines for how tax increases can be applied when homeowners make improvements to their property or move to a new residence. The bill also adjusts how tax values are calculated for appraisal and reporting purposes, ensuring consistency in how these tax limitations are applied. Importantly, the bill is contingent on a constitutional amendment being approved by voters in 2025, and if approved, will take effect on January 1, 2026, applying only to ad valorem taxes imposed in tax years beginning on or after that date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB455