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 bill stipulates that in counties with populations exceeding 50,000, a property sale cannot be considered a comparable sale unless the owner of the sold property had 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 new provision aims to ensure that only relevant and comparable sales are used in the appraisal process, potentially leading to fairer property valuations for homeowners receiving homestead exemptions. The changes will take effect on January 1, 2026, and will apply to ad valorem tax years beginning on or after that date.

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)