H.B. No. 202 aims to make permanent the limitation on increases in the appraised value of certain real properties for ad valorem tax purposes. The bill amends Section 25.19(o) of the Tax Code to remove the expiration date for the circuit breaker limitation, which previously restricted annual increases in appraised value to no more than 20 percent for properties other than residence homesteads. The language indicating that this limitation would expire on December 31, 2026, has been deleted, thereby ensuring that the limitation remains in effect indefinitely unless altered by future legislation.

Additionally, the bill repeals several provisions from the 88th Legislature's Acts that were set to take effect on January 1, 2027, which included amendments to various sections of the Tax Code and Government Code. The act will only apply to property appraisals for tax years beginning on or after its effective date of January 1, 2026, contingent upon the approval of a constitutional amendment by voters that would authorize the legislature to make this limitation permanent. If the amendment is not approved, the act will have no effect.

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