H.B. No. 361 amends the Texas Tax Code to change the method by which the market value of a residence homestead is determined for ad valorem tax purposes. The bill introduces a new provision stating that when assessing the value of a residence homestead, the chief appraiser is required to consider only the values of other residence homesteads located within the same neighborhood. Additionally, it specifies that real property that does not qualify for an exemption under Section 11.13 cannot be included in the valuation process for properties that do have such an exemption.

This legislation is set to take effect on January 1, 2026, and will apply to ad valorem taxes imposed for tax years beginning on or after that date. The changes aim to ensure a more equitable appraisal process for residence homesteads by limiting the factors that appraisers can consider, thereby potentially reducing the tax burden on homeowners.

Statutes affected:
Introduced: Tax Code 23.01 (Tax Code 23)