H.B. No. 247 introduces a new exemption from ad valorem taxation for real property located in counties bordering the United Mexican States, specifically for the appraised value that arises from the installation or construction of border security infrastructure. This infrastructure includes various improvements such as walls, barriers, and roads designed to surveil or impede movement across the Texas-Mexico border. The bill defines "qualified border security infrastructure agreement" as a written agreement between a property owner and state or federal entities for the installation of such infrastructure. Property owners can receive tax exemptions for improvements made under these agreements or on land subject to recorded easements granted for border security purposes.

Additionally, the bill amends existing tax code provisions to ensure that the price paid by the state or federal government for purchasing property or easements for border security infrastructure is not considered when appraising other real property. The changes will take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters. The bill also clarifies that once an exemption is granted, it does not need to be claimed in subsequent years unless ownership changes or the property owner's qualification for the exemption changes.

Statutes affected:
Introduced: Tax Code 11.43 (Tax Code 11)
House Committee Report: Tax Code 11.43, Tax Code 23.013 (Tax Code 11, Tax Code 23)
Engrossed: Tax Code 11.43, Tax Code 23.013 (Tax Code 11, Tax Code 23)
Senate Committee Report: Tax Code 11.43, Tax Code 23.013 (Tax Code 11, Tax Code 23)
Enrolled: Tax Code 11.43, Tax Code 23.013 (Tax Code 11, Tax Code 23)