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 residence homesteads 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 apply to appraisals for tax years beginning on or after its effective date, which is set for January 1, 2026. However, this implementation is contingent upon the approval of a constitutional amendment proposed by the 89th Legislature, Regular Session, 2025, which would allow the legislature to set a lower limit on the maximum appraised value for residence homesteads. If the amendment is not approved by voters, the bill will have no effect.

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