House Bill No. 338 proposes an amendment to Section 23.23(a) of the Texas Tax Code, specifically regarding the limitations on increases in the appraised value of residence homesteads for ad valorem taxation. The bill changes the allowable increase from a maximum of 10 percent to a maximum of five percent of the appraised value of the property for the preceding tax year. This adjustment aims to provide greater protection for homeowners against significant increases in property taxes.

The bill stipulates that it will only take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters during the 89th Legislature's Regular Session in 2025. If the amendment is not approved, the provisions of this bill will have no effect. This legislative change is intended to create a more favorable tax environment for homeowners by limiting the rate at which their property taxes can increase.

Statutes affected:
Introduced: Tax Code 23.23 (Tax Code 23)