House Bill No. 361 amends Section 23.013 of the Texas Tax Code to establish specific criteria for the chief appraiser of certain appraisal districts when determining the market value of a residence homestead for ad valorem tax purposes. The new provision, added as Subsection (f), stipulates that in counties with populations exceeding 50,000, a property sale cannot be considered a comparable sale unless the seller was receiving a residence homestead exemption at the time of sale and the sold property is located in the same neighborhood as the property being appraised.

This amendment is set to take effect on January 1, 2026, and will apply to ad valorem tax years beginning on or after that date. The bill aims to ensure that property valuations for tax purposes are more accurately reflective of comparable sales within the same neighborhood, thereby potentially impacting tax assessments for homeowners receiving homestead exemptions.

Statutes affected:
Introduced: Tax Code 23.01 (Tax Code 23)
House Committee Report: Tax Code 23.013 (Tax Code 23)
Engrossed: Tax Code 23.013 (Tax Code 23)