HB 106 — The eligibility of property to receive an ad valorem tax
This bill covers the eligibility of property to receive an ad valorem tax exemption for property of a disabled veteran, the surviving spouse or minor children of a disabled veteran, or the surviving spouse and minor children of a member of the armed forces who dies while on active duty if the property is owned by a qualifying trust.
This bill covers the eligibility of property to receive an ad valorem tax exemption for property of a disabled veteran, the surviving spouse or minor children of a disabled veteran, or the surviving spouse and minor children of a member of the armed forces who dies while on active duty if the property is owned by a qualifying trust.
Author: Leo Wilson. Filed: 11/09/2026 (H Filed). Caption: “Relating to the eligibility of property to receive an ad valorem tax exemption for property of a disabled veteran, the surviving spouse or minor children of a disabled veteran, or the surviving spouse and minor children of a member of the armed forces who dies while on active duty if the property is owned by a qualifying trust.”
Subjects: Disabilities, Persons with (I0380), Military & Veterans (I0535), Property Interests--Trusts (I0008), Taxation--Property-Appraisals & Appraisal Districts (I0792), Taxation--Property-Exemptions (I0793), TRUSTS (S1018). Council document: see the Legislature history page.
Full bill text (Introduced)
Official text from the Texas Legislature. Bill history for HB 106 · Bill text (HTML).
90R1972 CS-D By: Leo Wilson H.B. No. 106 relating to the eligibility of property to receive an ad valorem tax exemption for property of a disabled veteran, the surviving spouse or minor children of a disabled veteran, or the surviving spouse and minor children of a member of the armed forces who dies while on active duty if the property is owned by a qualifying trust.
SECTION 1. Section 11.22, Tax Code, is amended by adding Subsection (d-1) to read as follows: (d-1) For purposes of this section, an individual is considered to own a property if the individual owns the property directly or through a beneficial interest in a qualifying trust.
SECTION 2. Section 11.22(h), Tax Code, is amended by adding Subdivision (3-a) to read as follows: (3-a) "Qualifying trust" means a trust: (A) in which the agreement, will, or court order creating the trust, an instrument transferring property to the trust, or any other agreement that is binding on the trustee provides that the trustor of the trust or a beneficiary of the trust has the right to use and occupy the property rent free and without charge except for taxes and other costs and expenses specified in the instrument or court order: (i) for life; (ii) for the lesser of life or a term of years; or (iii) until the date the trust is revoked or terminated by an instrument or court order that describes the property with sufficient certainty to identify the property and is recorded in the real property records of the county in which the property is located; and (B) that acquires the property in an instrument of title or under a court order that: (i) describes the property with sufficient certainty to identify the property and the interest acquired; and (ii) is recorded in the real property records of the county in which the property is located.
SECTION 3. The change in law made by this Act applies only to an ad valorem tax year that begins on or after January 1, 2028.
SECTION 4. This Act takes effect January 1, 2028.
Sources: Texas Legislature, Today's Filed Bills in the House (11/09/2026), HB 106; 90th Legislature BillLookup history and Introduced bill text.