Bill > HB4321

This bill modifies the property tax exemption rules for disabled veterans in Texas by creating a more graduated and percentage-based system of property tax exemptions. Under the new provisions, disabled veterans would receive tax exemptions based on their disability rating: 20% for veterans with a 10-30% disability rating, 40% for those with 30-50%, 60% for those with 50-70%, 80% for those with 70-99%, and 100% for those with a full 100% disability rating. Additionally, disabled veterans who are 65 or older, totally blind, or have lost the use of a limb would be eligible for an 80% exemption. The bill also preserves existing provisions allowing surviving spouses and children (under 18 and unmarried) to receive a property tax exemption equivalent to the veteran's exemption at the time of death. The changes would apply to ad valorem (property) taxes for tax years beginning on or after the effective date, which is January 1, 2026, but only if a related constitutional amendment is approved by voters. The bill also ensures that property owners who qualify for the exemption mid-year can receive a prorated exemption.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4321