Bill > SB2520

This bill modifies the Texas Tax Code to adjust how property tax limitations are calculated for elderly or disabled homeowners. Specifically, the bill introduces a new provision that applies in the tax year immediately following the first year an individual qualifies for a homestead exemption under Section 11.13(c). In this scenario, the tax limitation for the homestead will be the lesser of two amounts: either the standard limitation computed under existing rules, or the actual tax amount imposed by the school district without any previous tax increase limitations. This means that in the year after first qualifying for an exemption, homeowners who are elderly or disabled might have a different method of calculating their property tax cap. The bill will apply to ad valorem (property) taxes for tax years beginning on or after January 1, 2026, which provides a clear timeline for implementation. The goal appears to be providing a more nuanced approach to property tax calculations for vulnerable homeowners during their initial years of receiving a homestead exemption.

Budget and Finance, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2520