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HB 2032

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.

89th Legislature (2025) Introduced by Liz Campos and 1 co-sponsor

Expands Texas property tax exemptions for disabled veterans' primary homes by allowing partial exemptions based on VA disability rating percentages rather than total disability requirement.

Left pending in committee
#disabilities #personswith(i0380) #military&veterans(i0535) #propertyinterests--homestead(i0616) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 2032

Legislative bill overview

HB 2032 proposes to expand Texas property tax exemptions for partially disabled veterans and surviving spouses by allowing exemptions based on disability rating percentage rather than requiring total disability. Currently, Texas law provides homestead exemptions primarily to totally disabled veterans; this bill would create a graduated system where partially disabled veterans receive proportional tax relief on their primary residence based on their VA disability rating.

Why is this important

Property taxes represent a significant ongoing cost for homeowners, and veterans with service-connected disabilities often have reduced earning capacity. This change would provide meaningful financial relief to a broader population of disabled veterans (estimated hundreds of thousands nationally have partial disabilities) and their surviving spouses, reducing their annual tax burden in proportion to their disability level.

Potential points of contention

  • Revenue impact: School districts and local governments would lose property tax revenue; the bill's fiscal note would clarify whether this creates a significant shortfall requiring compensating tax increases elsewhere
  • Definition of "partially disabled": The specific disability rating thresholds that qualify for exemptions and how much exemption each rating level receives could affect who benefits and by how much
  • Administrative burden: Tax assessors must verify VA disability ratings and recalculate exemptions, adding complexity to property tax administration
  • Equity questions: Whether non-veteran disabled individuals receiving similar income reductions should receive comparable tax relief

Compiled from official sources — confirm details with the bill’s official record.

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