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.

SB 1126 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 retain this exemption if they remain unmarried, live in the same home the veteran owned at death, and the home stays their primary residence. The exemption applies to the same property value amount as the veteran received, with a certificate from the appraisal district enabling transfers if the spouse moves to a new home. This policy directly affects eligible veterans and their spouses by reducing their local property tax burden.