Texas House Bill HB202

Texas 2025 - 89th 2nd C.S.

• Filed: 8/18/25

Impact

If passed, this bill would amend the Texas Tax Code, specifically by adding Section 11.137 to establish these exemptions. The intent is to lessen the property tax burden on veterans who have incurred disabilities while serving, acknowledging their sacrifices and aiming to support their reintegration into civilian life. The survival spouses' inclusion in the bill is particularly significant, ensuring continued financial relief even after the veteran's passing, which can alleviate some financial strains during a challenging time.

Summary

House Bill 202 aims to provide an ad valorem tax exemption for the residence homestead of partially disabled veterans, as well as their surviving spouses, based on the veteran's disability rating. Specifically, the bill proposes that veterans with a disability rating of at least 10% but less than 100% will receive a tax exemption equivalent to their disability rating percentage on the appraised value of their residence homestead. Furthermore, surviving spouses who have not remarried would be entitled to the same exemption percentage applicable to the property during the veteran's lifetime, provided certain conditions are met.

Contention

While the bill is expected to garner strong support among legislators and veterans' advocacy groups, there may be concerns raised about the potential fiscal impact on the local governments. Critics might argue that the loss of tax revenue could hinder essential services funded by property taxes, prompting discussions about who bears the cost of these exemptions. The need for a constitutional amendment to authorize the exemptions could also be a point of contention, as it places the onus on voters to approve it during an election, shaping the bill's journey through legislative processes.