The bill amends Section 23.23 of the Texas Tax Code to establish new limitations on the increases in the appraised value of a residence homestead for ad valorem tax purposes. It specifies that the appraised value for the first tax year that a property owner qualifies for an exemption under Section 11.13 will be equal to the market value of the property. Subsequent appraisals will be limited to the lesser of the market value or a calculated amount based on the previous year's appraised value and any new improvements. Additionally, the bill introduces several new subsections that outline the conditions under which property owners can qualify for these limitations, including provisions for bona fide purchasers and confidentiality of application information.

Furthermore, the bill clarifies that the limitation on appraised value will not expire if the property is inherited by someone who qualifies for the exemption. It also establishes that the changes will take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters. If the amendment is not approved, the bill will have no effect. The bill aims to provide more stability and predictability for homeowners regarding their property taxes.

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