The bill, S.B. No. 320, 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 adjustment of the maximum allowable increase in appraised value from "10 percent" to "five percent" of the appraised value from the preceding tax year. This amendment aims to provide greater protection for homeowners by limiting the rate at which their property taxes can increase. 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 take effect. This legislative change reflects an effort to address concerns regarding rising property taxes and their impact on homeowners in Texas.

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