Relating to a local option exemption from ad valorem taxation by a taxing unit of all or part of the appraised value of the residence homestead of a peace officer employed by the taxing unit.

HB 4060 creates a local tax exemption for peace officers employed by a taxing unit (like a city or county). It allows these officers to receive a percentage-based exemption from property taxes on their primary residence homestead, depending on their years of service: 20% for 5-10 years, 40% for 10-15 years, 60% for 15-20 years, 80% for 20-25 years, or 100% for 25+ years. The exemption requires the local governing body to formally adopt it, and it applies only to property within the taxing unit where the officer is employed. This policy directly affects peace officers working for local governments who meet the service requirements.