H.B. No. 1430 introduces a limitation on the increases in the appraised value of certain commercial real properties for ad valorem tax purposes in Texas. The bill amends the Tax Code to include new provisions under Section 23.232, defining "commercial real property" and establishing criteria for appraising such properties. It allows appraisal offices to increase the appraised value of commercial real property to an amount not exceeding the lesser of the market value determined in the most recent tax year or a calculated sum based on the previous year's appraised value and any new improvements made to the property. This limitation applies only to properties with a market value of $10 million or less and excludes properties appraised under specific subchapters of the Tax Code.

The bill also modifies existing sections of the Tax Code to clarify the appraisal process and incorporates references to the new limitation. It includes provisions for notifying property owners about their eligibility for the limitation and outlines their rights to protest appraisal decisions. Key changes specify that the market value determined by the appraisal district must be used for properties subject to limitations under Sections 23.23, 23.231, or 23.232, while removing references to "residence homestead" to broaden the applicability of valuation criteria. The bill defines "taxable value," details deductions applicable to the market value of taxable properties, and establishes that the comptroller will assess the validity of the market value determined by the appraisal district. The bill is set to take effect on January 1, 2026, pending voter approval of a related constitutional amendment.

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