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Texas Legislature· SB 2520Effective on 1/1/26

Relating to the calculation of the limitation on the total amount of ad valorem taxes imposed by a school district on the residence homestead of an individual who is elderly or disabled, the official text

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S.B. No. 2520

AN ACT

relating to the calculation of the limitation on the total amount of

ad valorem taxes imposed by a school district on the residence

homestead of an individual who is elderly or disabled.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 11.26, Tax Code, is amended by adding

Subsection (a-11) to read as follows:

(a-11) This subsection applies only in the tax year

immediately following the first tax year an individual qualifies a

residence homestead for an exemption under Section 11.13(c) after

the beginning of that first tax year, provided that the homestead

remains eligible for that same exemption in that following tax

year. Notwithstanding Subsection (a-10), the amount of the

limitation provided by this section on an individual's residence

homestead for the tax year to which this section applies is equal to

the lesser of:

(1) the amount of the limitation as computed under

Subsection (a-10) for that tax year; or

(2) the amount of tax imposed by the school district on

that residence homestead, calculated without regard to the

limitation on tax increases provided by this section, in that tax

year.

SECTION 2. This Act applies only to ad valorem taxes imposed

for a tax year beginning on or after the effective date of this Act.

SECTION 3. This Act takes effect January 1, 2026.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 2520 passed the Senate on

May 9, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2520 passed the House on

May 28, 2025, by the following vote: Yeas 136, Nays 5, two

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor
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