The bill, H.B. No. 442, proposes an amendment to Section 23.23(a) of the Texas Tax Code, specifically addressing the limitations on increases in the appraised value of residence homesteads for ad valorem taxation. The key change is the adjustment of the allowable increase from a maximum of 10 percent to a maximum of 5 percent of the appraised value of the property for the preceding tax year. This change 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 bill will have no effect. This legislative effort reflects a broader initiative to manage property tax burdens on residents by limiting the rate at which appraised values can increase.

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