The bill, H.B. No. 356, 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 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 tax increases.

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 not be enacted. This legislative change reflects an effort to enhance affordability for homeowners by limiting the growth of property taxes associated with residence homesteads.

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