Texas 2025 - 89th 2nd C.S.

Texas House Bill HB155

Filed
8/18/25  
Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Summary

HB 155 creates a new property tax exemption for certain elderly homeowners by exempting the total appraised value of a residence homestead for an individual who is at least 72 years old and has already received a homestead exemption for at least the prior 10 years. It also extends that full exemption to a qualifying surviving spouse if the deceased spouse died while eligible, the surviving spouse was at least 55 when the spouse died, and the property remains the surviving spouse’s residence homestead. The bill is structured to work alongside a proposed constitutional amendment and includes multiple contingent provisions depending on whether that amendment is approved by voters. The bill also updates Tax Code administration rules so the new exemption is effective for the full tax year once a person qualifies, sets application deadlines, and allows certain exemptions to be granted or continued automatically when age or death eligibility can be verified from existing appraisal district or DPS records. It adds notice and cancellation procedures for exemptions, including special protections before a chief appraiser may cancel an exemption, and it revises delinquent-tax penalty rules for improperly claimed age-based or surviving-spouse exemptions. In addition, it adjusts school finance and state property-value study provisions so school districts and the state account for the revenue impact of the new exemption, with additional state aid formulas intended to offset lost local revenue. HB 155 would change several sections of the Tax Code, Education Code, and Government Code, and it would apply beginning with the 2027 tax year if the related constitutional amendment is approved. The bill specifically amends homestead exemption provisions, tax calculation rules for moved homesteads, school district tax notice requirements, state aid formulas for school debt and maintenance-and-operations funding, and the comptroller’s property value study rules. Its practical effect would be to reduce property tax liability for a narrow group of long-term elderly homeowners and their surviving spouses, while shifting some of the fiscal impact to school finance formulas and state aid. The overall sentiment reflected by the bill text is strongly supportive of property tax relief for elderly Texans, with the measure framed as a targeted exemption for long-term homeowners and surviving spouses. Because there were no committee transcripts or recorded votes provided, there is no direct evidence of debate or opposition in the supplied materials. The bill’s structure, however, suggests an effort to balance taxpayer relief with administrative safeguards and school finance backfill provisions. The main point of contention implied by the bill is fiscal impact: the exemption would reduce local tax bases, especially for school districts, and the bill therefore includes multiple contingent state-aid adjustments and tax-rate calculation changes to offset lost revenue. Another likely issue is eligibility design, since the exemption is limited to homeowners age 72 or older who have already benefited from a homestead exemption for at least 10 years, and surviving spouses must meet age and occupancy requirements. The bill also depends on voter approval of a related constitutional amendment, making the policy contingent on a separate statewide vote.

Impact

HB 155 amends Texas property tax law to add a new residence homestead exemption for certain elderly homeowners age 72 or older and for qualifying surviving spouses, and it updates related Tax Code provisions governing application timing, automatic continuation, cancellation, and proration of homestead taxes. It also revises Education Code and Government Code provisions to account for the resulting loss of taxable value in school finance and the state property-value study, including additional state aid formulas intended to offset revenue losses for school districts. The bill’s exemptions apply beginning with the 2027 tax year and are contingent on approval of the related constitutional amendment.

Sentiment

The bill appears generally favorable toward property tax relief for elderly homeowners and surviving spouses, with the text emphasizing automatic eligibility handling and protections against unnecessary administrative burdens. No committee discussion or vote data were provided, so there is no recorded opposition or support to characterize beyond the bill’s own policy design. The presence of state-aid offsets and contingent effective dates suggests an attempt to make the measure fiscally workable while preserving the relief objective.

Contention

The likely area of contention is the fiscal effect on local governments and school districts, because exempting the full appraised value of qualifying homesteads reduces taxable property values and can affect debt service and maintenance-and-operations revenue. A second issue is eligibility scope: the exemption is limited to homeowners 72 or older with at least 10 years of prior homestead exemption use, and surviving spouses must meet age, occupancy, and timing requirements. The bill also depends on voter approval of a related constitutional amendment, so implementation is contingent and could be debated as part of the broader constitutional tax-relief package.

Companion Bills

TX HJR15

Enabling for

Previously Filed As

TX HB382

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HB301

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly individuals and their surviving spouses.

TX HB252

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HJR31

Proposing a constitutional amendment to exempt from ad valorem taxation the total market value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HJR39

Proposing a constitutional amendment to exempt from ad valorem taxation the total market value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HB1548

Relating to an exemption from ad valorem taxation by certain taxing units of a portion of the appraised value of the residence homestead of the parent or guardian of a person who is disabled and who resides with the parent or guardian.

TX HJR43

Proposing a constitutional amendment to exempt from ad valorem taxation the total market value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HJR179

Proposing a constitutional amendment to exempt from ad valorem taxation the total market value of the residence homesteads of certain elderly persons and their surviving spouses.

TX 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.

TX SB1126

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.

Similar Bills

CA SB277

Criminal procedure: search of persons.

CA AB1464

Housing preferences.

CA AB2161

Medi-Cal: redeterminations and work or community engagement.

CA AB2066

Triggering event: pregnancy.

CA SB257

PARENT Act.

IA HF2731

A bill for an act establishing the percentage of income payment plan program to be administered by the department of health and human services.

HI HB286

Relating To The Individual Housing Account Program.

HI HB286

Relating To The Individual Housing Account Program.