The bill aims to make permanent the limitation on increases in the appraised value of certain real properties for ad valorem tax purposes. Specifically, it amends Section 25.19(o) of the Tax Code to remove the expiration date for the 20 percent cap on annual increases in appraised value for properties other than single-family residences. The previous language indicated that this limitation would expire on December 31, 2026, unless extended by the Texas Legislature. The bill also repeals several provisions related to the temporary nature of this limitation, effectively ensuring that the cap remains in place indefinitely.

The bill will take effect on January 1, 2026, contingent upon the approval of a constitutional amendment proposed by the 89th Legislature, Regular Session, 2025, which seeks to authorize the legislature to make this limit permanent. If the amendment is not approved by voters, the bill will have no effect. This legislative change is intended to provide stability and predictability for property owners regarding ad valorem tax assessments.

Statutes affected:
Introduced: Tax Code 25.19 (Tax Code 25)