HB2032 - Relating to the exemption from ad valorem taxation of part of the appraised value of the residence homestead of a partially disabled veteran or the surviving spouse of such a veteran based on the disability rating of the veteran.

  89R9218 JBD-D     By: Campos H.B. No. 2032       A BILL TO BE ENTITLED   AN ACT   relating to the exemption from ad valorem taxation of part of the   appraised value of the residence homestead of a partially disabled   veteran or the surviving spouse of such a veteran based on the   disability rating of the veteran.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by   adding Section 11.136 to read as follows:           Sec.   11.136.     RESIDENCE HOMESTEAD OF CERTAIN PARTIALLY   DISABLED VETERANS. (a) In this section:                 (1)     "Disability rating" and "disabled veteran" have   the meanings assigned by Section 11.22.                 (2)     "Residence homestead" has the meaning assigned by   Section 11.13.                 (3)     "Surviving spouse" has the meaning assigned by   Section 11.131.           (b)     A disabled veteran who has a disability rating of at   least 10 percent but less than 100 percent is entitled to an   exemption from taxation of a percentage of the appraised value of   the disabled veteran's residence homestead equal to the disabled   veteran's disability rating.           (c)     The surviving spouse of a disabled veteran who qualified   for an exemption under Subsection (b) of a percentage of the   appraised value of the disabled veteran's residence homestead when   the disabled veteran died, or of a disabled veteran who would have   qualified for an exemption under that subsection if that subsection   had been in effect on the date the disabled veteran died, is   entitled to an exemption from taxation of the same percentage of the   appraised value of the same property to which the disabled   veteran's exemption applied, or to which the disabled veteran's   exemption would have applied if the exemption had been authorized   on the date the disabled veteran died, if:                 (1)     the surviving spouse has not remarried since the   death of the disabled veteran; and                 (2)  the property:                       (A)     was the residence homestead of the surviving   spouse when the disabled veteran died; and                       (B)     remains the residence homestead of the   surviving spouse.           (d)     If a surviving spouse who qualifies for an exemption   under Subsection (c) subsequently qualifies a different property as   the surviving spouse's residence homestead, the surviving spouse is   entitled to an exemption from taxation of the subsequently   qualified residence homestead in an amount equal to the dollar   amount of the exemption from taxation of the former residence   homestead under Subsection (c) in the last year in which the   surviving spouse received an exemption under that subsection for   that residence homestead if the surviving spouse has not remarried   since the death of the disabled veteran. The surviving spouse is   entitled to receive from the chief appraiser of the appraisal   district in which the former residence homestead was located a   written certificate providing the information necessary to   determine the amount of the exemption to which the surviving spouse   is entitled on the subsequently qualified residence homestead.          SECTION 2.  Section 11.42(c), Tax Code, is amended to read as   follows:          (c)  An exemption authorized by Section 11.13(c) or (d),   11.132, 11.133, [ or ] 11.134 , or 11.136 is effective as of January 1   of the tax year in which the person qualifies for the exemption and   applies to the entire tax year.          SECTION 3.  Sections 11.43(c) and (k), Tax Code, are amended   to read as follows:          (c)  An exemption provided by Section 11.13, 11.131, 11.132,   11.133, 11.134, 11.136, 11.17, 11.18, 11.182, 11.1827, 11.183,   11.19, 11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m),   11.231, 11.254, 11.27, 11.271, 11.29, 11.30, 11.31, 11.315, 11.35,   or 11.36, once allowed, need not be claimed in subsequent years, and   except as otherwise provided by Subsection (e), the exemption   applies to the property until it changes ownership or the person's   qualification for the exemption changes. However, except as   provided by Subsection (r), the chief appraiser may require a   person allowed one of the exemptions in a prior year to file a new   application to confirm the person's current qualification for the   exemption by delivering a written notice that a new application is   required, accompanied by an appropriate application form, to the   person previously allowed the exemption. If the person previously   allowed the exemption is 65 years of age or older, the chief   appraiser may not cancel the exemption due to the person's failure   to file the new application unless the chief appraiser complies   with the requirements of Subsection (q), if applicable.          (k)  A person who qualifies for an exemption authorized by   Section 11.13(c) or (d) , [ or ] 11.132 , or 11.136 must apply for the   exemption no later than the first anniversary of the date the person   qualified for the exemption.          SECTION 4.  Section 11.439(a), Tax Code, is amended to read   as follows:          (a)  The chief appraiser shall accept and approve or deny an   application for an exemption under Section 11.131 , [ or ] 11.132 , or   11.136 for the residence homestead of a disabled veteran but not the   surviving spouse of the disabled veteran or Section 11.22 after the   filing deadline provided by Section 11.43 if the application is   filed not later than five years after the delinquency date for the   taxes on the property.          SECTION 5.  Section 26.10(b), Tax Code, is amended to read as   follows:          (b)  If the appraisal roll shows that a residence homestead   exemption under Section 11.13(c) or (d), 11.132, 11.133, [ or ]   11.134 , or 11.136 applicable to a property on January 1 of a year   terminated during the year and if the owner of the property   qualifies a different property for one of those residence homestead   exemptions during the same year, the tax due against the former   residence homestead is calculated by:                (1)  subtracting:                      (A)  the amount of the taxes that otherwise would   be imposed on the former residence homestead for the entire year had   the owner qualified for the residence homestead exemption for the   entire year; from                      (B)  the amount of the taxes that otherwise would   be imposed on the former residence homestead for the entire year had   the owner not qualified for the residence homestead exemption   during the year;                (2)  multiplying the remainder determined under   Subdivision (1) by a fraction, the denominator of which is 365 and   the numerator of which is the number of days that elapsed after the   date the exemption terminated; and                (3)  adding the product determined under Subdivision   (2) and the amount described by Subdivision (1)(A).          SECTION 6.  Section 26.1127, Tax Code, is amended to read as   follows:          Sec. 26.1127.  CALCULATION OF TAXES ON [ DONATED ] RESIDENCE   HOMESTEAD OF CERTAIN DISABLED VETERANS [ VETERAN ] OR SURVIVING   SPOUSE OF CERTAIN DISABLED VETERANS [ VETERAN ]. (a)  Except as   provided by Section 26.10(b), if at any time during a tax year   property is owned by an individual who qualifies for an exemption   under Section 11.132 or 11.136 , the amount of the tax due on the   property for the tax year is calculated as if the individual   qualified for the exemption on January 1 and continued to qualify   for the exemption for the remainder of the tax year.          (b)  If an individual qualifies for an exemption under   Section 11.132 or 11.136 with respect to the property after the   amount of the tax due on the property is calculated and the effect   of the qualification is to reduce the amount of the tax due on the   property, the assessor for each taxing unit shall recalculate the   amount of the tax due on the property and correct the tax roll. If   the tax bill has been mailed and the tax on the property has not been   paid, the assessor shall mail a corrected tax bill to the individual   in whose name the property is listed on the tax roll or to the   individual's authorized agent. If the tax on the property has been   paid, the tax collector for the taxing unit shall refund to the   individual who was the owner of the property on the date the tax was   paid the amount by which the payment exceeded the tax due.          SECTION 7.  Section 31.031(a), Tax Code, is amended to read   as follows:          (a)  This section applies only to:                (1)  an individual who is:                      (A)  disabled or at least 65 years of age; and                      (B)  qualified for an exemption under Section   11.13(c); or                (2)  an individual who is:                      (A)  a disabled veteran or the unmarried surviving   spouse of a disabled veteran; and                      (B)  qualified for an exemption under Section   11.132 , 11.136, or 11.22.          SECTION 8.  Section 140.011(c), Local Government Code, is   amended to read as follows:          (c)  For the purposes of this section, the amount of a local   government's lost ad valorem tax revenue for a fiscal year is   calculated by multiplying the ad valorem tax rate adopted by the   local government under Section 26.05, Tax Code, for the tax year in   which the fiscal year begins by the sum of:                 (1)   the total appraised value of all property located   in the local government that is exempt [ granted an exemption ] from   taxation under Section 11.131, Tax Code, for that tax year ; and                 (2)     the total dollar amount of the portion of the   appraised value of all property located in the local government   that is exempt from taxation under Section 11.136, Tax Code, for   that tax year .          SECTION 9.  This Act applies only to ad valorem taxes imposed   for an ad valorem tax year that begins on or after the effective   date of this Act.          SECTION 10.  It is the intent of the 89th Legislature,   Regular Session, 2025, that the amendments made by this Act be   harmonized with another Act of the 89th Legislature, Regular   Session, 2025, relating to nonsubstantive additions to and   corrections in enacted codes.          SECTION 11.  This Act takes effect January 1, 2026, but only   if the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, authorizing the legislature to provide for   an exemption from ad valorem taxation of part of the market value of   the residence homestead of a partially disabled veteran or the   surviving spouse of such a veteran based on the disability rating of   the veteran is approved by the voters. If that amendment is not   approved by the voters, this Act has no effect.