Texas HB 235 Explained for 100% Disabled Veterans
Texas House Bill 235 (HB 235) has been shared online as a “new 2026 tax break” for totally disabled Veterans, but the operational reality is more nuanced. The introduced HB 235 text would create a Texas sales and use tax exemption on up to $25,000 in taxable purchases per calendar year for Veterans with a 100% VA disability rating, claimed at checkout with a Comptroller exemption certificate. However, the official Texas Legislature Online bill history for the 89th Legislature special sessions shows HB 235 was filed and did not advance beyond filing, so treat the exemption as proposed until you can verify enactment and implementation. This guide breaks down what the filed text says, what to verify, and how Central Texas homebuyers should plan either way.
What this guide covers
This guide explains the HB 235 proposal in plain English, confirms the bill status using official sources, and translates the impact into practical budgeting for San Antonio and Central Texas households.
- What the filed bill would change in Texas sales and use tax rules.
- Who would qualify, including authorized representatives who buy on a Veteran’s behalf.
- How the $25,000 annual cap would work in a calendar year.
- How to verify “passed vs filed” before changing your 2026 plan.
What HB 235 proposed (high level)
The introduced text would add a new Tax Code section to exempt certain taxable purchases from Texas sales and use tax when made by a qualified disabled Veteran.
- Eligibility: 100% disability rating per the bill definition.
- Cap: first $25,000 of taxable item purchases per calendar year.
- Process: present a signed exemption certificate at purchase.
- Effective date in the text: January 1, 2026 (if enacted and implemented).
Status check (what matters most)
Before you plan around a new exemption, confirm it actually became law and that the Texas Comptroller has issued the required certificate guidance for retailers.
- Official status source: Texas Legislature Online “History” page.
- What to look for: votes, passage, sent to Governor, signed, and effective date notes.
- Why it matters: retailers rely on Comptroller forms and rules to honor exemptions consistently.
Official resources and tools to use
Start with official sources, then translate the impact into your housing budget and move in plan using reliable calculators.
- Texas Legislature Online (bill history): verify the last action and whether the bill advanced (HB 235 history (89(2))).
- Texas Legislature Online (bill text): read the introduced language and defined cap (HB 235 introduced text).
- Texas Comptroller (property tax): confirm the existing 100% disabled Veteran homestead exemption rules (100% disabled Veteran homestead FAQ).
- LRG financing: align tax planning with a real mortgage strategy (Financing resources).
- LRG calculators: model payments with taxes and insurance included (Mortgage calculator, Affordability calculator).
Common questions this guide answers
Did HB 235 actually pass?
As of late 2025, the official Texas Legislature Online history pages for the special sessions show HB 235 was filed and did not advance. Always verify current status before acting on a headline.
If it were enacted, what is the $25,000 cap?
The introduced text applies the exemption only to the first $25,000 of taxable item purchases in a calendar year, not to unlimited purchases.
Does this replace Texas property tax exemptions for disabled Veterans?
No. The proposal is about sales and use tax on taxable purchases. Property tax exemptions are separate and are filed through your county appraisal district.
Key Takeaways
- HB 235’s introduced text proposed a sales and use tax exemption for totally disabled Veterans with a 100% VA disability rating, claimed at the point of purchase.
- Official Texas Legislature Online history pages for the 2025 special sessions show HB 235 was filed and did not advance, so do not treat it as enacted.
- If enacted later, the introduced language limits the exemption to the first $25,000 of taxable item purchases per calendar year, not unlimited annual spending.
- The filed proposal requires a Comptroller exemption certificate presented at checkout, which means implementation guidance matters as much as statutory language.
- For many Central Texas homeowners, existing property tax exemptions for qualifying disabled Veterans can create larger recurring savings than a sales tax proposal.
- For homebuyers, treat all tax benefits as a verification checklist item: confirm eligibility, confirm filing steps, and budget the purchase without assuming future programs.
HB 235, explained: what the filed bill proposed
This section explains what HB 235 proposed to change in Texas sales and use tax law. In the introduced text, HB 235 would add a new Tax Code section to exempt certain taxable purchases made by a qualified disabled Veteran. The key operational details are eligibility, the exemption certificate at checkout, and the annual purchase cap.
- New Tax Code section: The introduced text would add Section 151.3272 to create a targeted exemption for certain taxable purchases.
- Eligibility trigger: “Qualified disabled veteran” is defined as a disabled Veteran with a 100% disability rating.
- Point of sale process: The buyer would present a signed Comptroller exemption certificate at the time of purchase.
- Annual purchase cap: The exemption applies only to the first $25,000 of taxable item purchases per calendar year.
| Topic | What the introduced text describes | Planning takeaway |
|---|---|---|
| Who qualifies | Disabled Veteran with a 100% disability rating | Confirm your VA rating documentation before expecting any point of sale benefit |
| What is exempt | Sales and use tax on taxable items purchased by a qualified Veteran (or authorized purchaser) | This would target taxable goods; it is not a property tax rule |
| How to claim | Present a signed Comptroller exemption certificate at purchase | Retailers will typically require the correct form and documentation |
| Annual limit | First $25,000 of taxable item purchases per calendar year | Track purchases so you do not accidentally exceed the cap |
| Timing in text | Effective date language is January 1, 2026 (if enacted) | Do not budget as guaranteed until it is enacted and implemented |
Did HB 235 pass? Status and how to verify fast
This section is about verifying whether HB 235 became law, because social posts and third party bill trackers can be wrong. As of late 2025, the official Texas Legislature Online history pages for HB 235 in the special sessions show the bill was filed and did not advance. Use the official History and Actions pages as your baseline before changing a 2026 budget or purchase plan.
- Start with “Last Action”: If the last action is “Filed,” the bill did not pass during that session.
- Look for passage markers: Bills that become law show votes, “sent to the Governor,” and “signed” or effective date remarks.
- Confirm implementation: Even enacted laws require Comptroller forms and guidance so retailers can apply an exemption consistently.
- Avoid number confusion: Texas can reuse bill numbers across sessions, so confirm the caption matches the Veteran exemption topic.
| Checkpoint | Where to check | What you should see if it became law |
|---|---|---|
| Session and caption | Texas Legislature Online Bill History | Caption matches the exemption topic and the session is the one you are referencing |
| Bill movement | Actions / Votes | House and Senate votes recorded, plus final passage actions |
| Governor action | Actions list | “Sent to the Governor” and “Signed by the Governor” (or law without signature) |
| Comptroller rollout | Comptroller forms and guidance pages | A published certificate form and instructions that retailers can follow |
Who would qualify and how the exemption would be claimed
This section explains eligibility and the practical checkout process the introduced bill describes. The introduced language ties qualification to a 100% disability rating and allows an authorized person to make purchases on behalf of the qualified disabled Veteran. If a similar exemption is enacted later, execution will depend on correct documentation, correct forms, and clean annual tracking.
- Eligibility documentation: Maintain your VA decision letter or benefits proof showing a 100% rating, because that is the core qualifier.
- Authorized representative: The introduced text allows a designated purchaser to use the exemption when buying on your behalf.
- Certificate at purchase: The exemption is not automatic; the buyer presents a signed Comptroller certificate at checkout.
- Annual tracking discipline: Because the cap is calendar year based, keep receipts in one folder and track exempt totals to stay compliant.
Planning note: This article is informational only. For legal or tax advice, consult a qualified professional.
What this means for Central Texas homebuyers and homeowners
This section is about translating tax rules into a real homebuying and homeownership budget. Even if a sales tax exemption proposal becomes law later, it typically affects move in purchases, while property tax exemptions can affect monthly escrow and long term carrying cost. For many qualifying Veterans, the existing 100% disabled Veteran homestead exemption can be a major lever, so it should be handled correctly and on time.
- Move in budgeting: A sales tax exemption would mainly reduce taxes on appliances, furniture, and renovations, which helps most in the first year.
- Property tax impact: A qualifying 100% disabled Veteran homestead exemption can materially reduce annual property tax burden for homeowners.
- Escrow planning: Lenders escrow taxes and insurance, so verified exemptions can change monthly payments, but only after filing is approved.
- Do not over count savings: Build affordability using full PITI first, then treat any future sales tax program as optional upside.
| Benefit type | How it is usually claimed | Where it shows up financially | Why homebuyers should care |
|---|---|---|---|
| Sales and use tax exemption proposal (HB 235 introduced text) | Certificate presented at point of sale | Reduces taxes on qualifying taxable purchases | Can lower move in and renovation costs if enacted and implemented |
| 100% disabled Veteran homestead exemption (existing law) | Application through county appraisal district | Reduces property tax burden on a qualifying residence homestead | Can reduce long term carrying costs and escrowed monthly payment |
| General homestead exemption (existing law) | Application through county appraisal district | Reduces taxable value for property tax purposes | Impacts affordability and payment stability in high tax areas |
Your Next Steps with LRG Realty
This section is about executing a clean plan so tax assumptions do not derail your housing timeline. If you are buying in San Antonio, Austin, Killeen, or nearby Central Texas markets, we can help you map realistic monthly payment scenarios with taxes, insurance, and verified exemptions. We also coordinate with your lender and title team so deadlines, documentation, and occupancy timelines stay operationally tight, especially for Military and Veteran households.
- Payment baseline: Run your full PITI estimate and compare scenarios using LRG’s calculators before you tour homes seriously.
- Benefit verification: We will point you to official exemption resources so you can verify eligibility and filing steps without relying on social posts.
- Offer strategy: In balanced markets, we help you structure concessions and credits while keeping the deal clean for underwriting.
- Execution discipline: A tight document package and fast response cadence protects closing dates and reduces avoidable delays.
References Used
- Texas Legislature Online: HB 235 history (89(2))
- Texas Legislature Online: HB 235 history (89(1))
- Texas Legislature Online: HB 235 introduced bill text
- Texas Comptroller: 100% disabled Veteran homestead exemption FAQ
- Texas Comptroller: sales and use tax forms
- Texas Constitution and Statutes: Tax Code Chapter 11 (property tax exemptions)
AI can make mistakes. Always confirm current law and forms using official Texas sources and a qualified professional.
Frequently Asked Questions
Did Texas HB 235 pass?
As of late 2025, the official Texas Legislature Online history pages for HB 235 in the special sessions show the bill was filed and did not advance. Verify current status on the official History and Actions pages before you rely on any claimed effective date.
What does HB 235 propose to do?
The introduced HB 235 text proposes a sales and use tax exemption for taxable items purchased by a qualified disabled Veteran. The proposal includes a Comptroller certificate requirement at purchase and an annual cap on exempt purchases.
Who is a “qualified disabled veteran” under the introduced HB 235 text?
The introduced text defines a qualified disabled Veteran as a disabled Veteran with a 100% disability rating. That definition is tied to existing Texas Tax Code language referenced in the bill, so eligibility hinges on verified VA rating status.
What is the $25,000 cap in HB 235?
The introduced bill language limits the exemption to the first $25,000 of taxable item purchases in a calendar year. It is a cap on purchase totals that would be exempted, not a cap on the tax dollars saved.
How would someone claim the exemption if it were enacted?
The introduced text requires the qualified disabled Veteran or an authorized purchaser to complete, sign, and present a Comptroller exemption certificate form at the time of purchase. In practice, retailers typically require the correct form and supporting documentation.
Can a spouse or caregiver use the exemption?
The introduced bill language allows a person authorized to make purchases on behalf of a qualified disabled Veteran to use the exemption. If enacted, you should expect retailers to require documentation showing the authorization and the Veteran’s eligibility.
Would HB 235 apply to online purchases?
The introduced text focuses on presenting an exemption certificate at purchase, which implies a documented process whether buying in person or online. If enacted, the Comptroller’s implementation guidance would determine how major retailers handle online certificate submission.
Does HB 235 replace the 100% disabled Veteran property tax exemption?
No. HB 235 is about sales and use tax on taxable purchases. Texas property tax exemptions for disabled Veterans are separate, are filed through your county appraisal district, and can affect homeownership costs in a different and often larger way.
Where would the exemption certificate form come from?
The introduced text directs the Texas Comptroller to develop and post the exemption certificate form on the Comptroller website. If a similar exemption becomes law, always use the official Comptroller form rather than third party templates.
What if a retailer refuses to honor an exemption claim?
If an exemption is enacted and you have the correct certificate, ask the retailer for their tax exemption process and escalate to a manager who handles tax documentation. If the issue persists, consult the Comptroller’s guidance and consider professional tax advice.
