The bill, S.B. No. 321, proposes to amend Section 23.23(a) of the Texas Tax Code, specifically regarding the limitations on increases in the appraised value of a residence homestead 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 change aims to provide greater protection for homeowners against significant increases in property taxes. The bill stipulates that it will only apply to the appraisal of residence homesteads for tax years beginning on or after its effective date of January 1, 2026. However, this implementation is contingent upon the approval of a constitutional amendment proposed by the 89th Legislature, which would authorize the legislature to set a lower limit on the maximum appraised value for ad valorem taxation. If the amendment is not approved by voters, the bill will have no effect.

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