Bill > HB4060

This bill provides a new local option tax exemption specifically for peace officers (as defined by the Code of Criminal Procedure) who are employed by a local taxing unit, allowing those taxing units to provide property tax exemptions for peace officers' residential homesteads based on their years of service. The exemption increases incrementally with longer employment: 20% for 5-10 years of service, 40% for 10-15 years, 60% for 15-20 years, 80% for 20-25 years, and 100% for 25 years or more of service. To implement this exemption, the governing body of the taxing unit must officially adopt it through the required legal process. The bill also makes technical amendments to related tax code sections to accommodate this new exemption, such as updating definitions and adjusting how taxable property values are calculated. Importantly, this bill is contingent upon a constitutional amendment being approved by voters in 2025, and if that amendment is not approved, the bill will have no effect. The new tax exemption would apply to ad valorem (property) taxes for tax years beginning on or after the effective date of January 1, 2026.