HB 294 creates a property tax exemption for residential homeowners in Texas who install qualifying energy efficiency improvements after January 1, 2027. The exemption applies only to properties built before 2011 and covers the increased tax value resulting from improvements like high-efficiency HVAC systems, insulation, smart thermostats, or solar-ready windows. Homeowners must install these upgrades after 2027 to qualify, and the comptroller will develop guidelines to help local tax officials administer the exemption. This policy directly affects existing residential property owners seeking to reduce long-term tax burdens through energy-efficient home upgrades.
HB 131 repeals the Dementia Prevention and Research Institute of Texas and transfers its funds to the Texas Education Agency. The transferred money would be used to reduce state property tax rates for homeowners. This bill only takes effect if voters approve a related constitutional amendment in 2025; otherwise, it has no legal impact. The legislation directly affects state funding allocations and property tax policy, with no changes to dementia research programs.
HJR 25 proposes a constitutional amendment to allow Texas to create property tax exemptions for disabled veterans based on their disability rating. It would authorize exemptions ranging from 20% to 100% of a property's assessed value, depending on the veteran's disability rating (e.g., 10-30% rating = 20% exemption). Special provisions include 80% exemptions for veterans over 65 or with specific disabilities (like limb loss or blindness), and exemptions for surviving spouses/children of disabled veterans or those who died on active duty. The amendment requires voter approval in the November 2025 election. If passed, it would replace current constitutional language governing these exemptions.
HB 202 creates a property tax exemption for partially disabled veterans and their surviving spouses in Texas. It allows veterans with a disability rating of 10% to 99% to exempt a percentage of their home’s appraised value equal to their disability rating (e.g., a 40% rating exempts 40% of the tax). Surviving spouses who haven’t remarried and continued living in the veteran’s homestead are eligible for the same exemption amount if the veteran qualified before death. The bill amends the Tax Code to implement this change, requiring documentation for eligibility and transferring the exemption amount if a surviving spouse moves to a new primary residence.
This bill proposes a constitutional amendment to allow the Texas legislature to set lower limits on the appraised value used for property taxes on both primary homes (residence homesteads) and other real property. Currently, homesteads have a 102.5% limit and other property has a 108% limit; this amendment would let the legislature establish lower percentages for both. If approved by voters in 2026, it would also make the 108% limit for non-homestead property permanent. The change would directly affect homeowners and property owners by potentially reducing their taxable value for local property tax calculations.
HJR 39 proposes a constitutional amendment to change how Texas homestead property taxes are calculated. It would allow the legislature to set the first tax year's value for a homestead at either the property's market value or its purchase price (if bought), rather than the standard appraisal. For subsequent years, it would limit annual tax increases to only the value of new improvements made to the property, instead of full market value changes. This would directly affect homeowners who qualify for the homestead exemption, potentially reducing their tax burden in the first year and capping future increases.
SB 58 (Texas) changes how property taxes are calculated for rebuilt structures after disasters. It states that replacing a damaged home or building (due to storms, fires, or natural disasters) does **not** count as a new "improvement" for tax purposes if the replacement matches the original size and exterior materials. However, it would count as a new improvement only if the new structure has more square footage or uses higher-quality exterior materials than the original. The bill also includes an exception if original materials are unavailable, allowing comparable materials without triggering higher taxes. It takes effect for 2026 tax years.
HB 39 amends Texas law to adjust how school districts calculate property values for state funding. It directs that taxable value for school finance purposes must exclude certain homestead exemptions, including those under Tax Code Sections 11.13(b), (c), and (n), as well as captured appraised value in designated reinvestment zones. This change directly affects Texas public school districts by altering the property value base used to determine state funding allocations. The bill modifies Education Code Section 7.062(c) and Government Code Section 403.302(d) to implement this adjustment in funding calculations.
SB 40 would exempt property owned by qualifying nonprofits in Texas counties with 3.3 million+ residents from property taxes. The exemption applies to nonprofits using land for agriculture promotion, youth programs, and community education - specifically those organized exclusively for charitable, educational, or scientific purposes under state law. It covers both real and personal property but excludes for-profit leaseholders of such property. The law takes effect January 1, 2026, applying only to tax years beginning after that date.
HB 21 modifies Texas property tax penalties and interest rates for late payments. It reduces the initial penalty from 6% to 3% for the first month a payment is late, then 0.5% per month (down from 1%) for each additional month. For taxes delinquent on July 1, the total penalty drops from 12% to 6%. The bill also halves the interest rate to 0.5% per month and applies only to penalties accruing after its effective date.
