TITLE: Relating to the treatment for ad valorem tax purposes of the residence homestead of a totally disabled veteran.

SUMMARY: Relating to the treatment for ad valorem tax purposes of the residence homestead of a totally disabled veteran.

FULL TEXT:
AN ACT relating to the treatment for ad valorem tax purposes of the residence homestead of a totally disabled veteran. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 11.42(c) and (e), Tax Code, are amended to read as follows: (c) An exemption authorized by Section 11.13(c) or (d), 11.131, 11.132, 11.133, or 11.134 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. (e) A person who qualifies for an exemption under Section [11.131 or] 11.35 after January 1 of a tax year may receive the exemption for the applicable portion of that tax year immediately on qualification for the exemption. SECTION 2. 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), 11.131, 11.132, 11.133, or 11.134 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 3. Sections 26.112(a) and (b), Tax Code, are amended to read as follows: (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 11.13(c) or (d), 11.131, 11.133, or 11.134, 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 11.13(c) or (d), 11.131, 11.133, or 11.134 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 person in whose name the property is listed on the tax roll or to the person's authorized agent. If the tax on the property has been paid, the tax collector for the taxing unit shall refund to the person 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 4. The following provisions of the Tax Code are repealed: (1) Section 26.10(c); and (2) Section 26.1125. SECTION 5. This Act applies only to an ad valorem tax year that begins on or after the effective date of this Act. SECTION 6. This Act takes effect January 1, 2026.