The bill, H.B. No. 356, proposes to amend 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 key change is the reduction of the allowable increase in appraised value from a maximum of 10 percent to a maximum of 5 percent of the appraised value from 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 bill will have no effect. This legislative change is intended to create a more favorable environment for homeowners by limiting the financial burden of rising property taxes.

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