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 allowable increase from a maximum of 10 percent to a maximum of five percent of the appraised value of the property for 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 take effect on January 1, 2026, contingent upon the approval of a constitutional amendment by voters during the 89th Legislature's Regular Session in 2025. If the amendment is not approved, the bill will have no effect. This legislative action reflects an effort to address concerns about rising property taxes and their impact on homeowners in Texas.

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