H.B. No. 1430 seeks to amend the Texas Tax Code by establishing limitations on the increases in appraised value for certain commercial real properties, specifically those with a market value of $10 million or less. The bill introduces a new section, 23.232, which defines "commercial real property" and sets criteria for limiting appraised value increases to the lesser of the market value determined by the appraisal office or a calculated sum based on the previous year's appraised value plus any new improvements. It also clarifies that certain improvements related to disaster recovery programs may not be considered new improvements under specific conditions.

In addition to the new section, the bill amends existing sections of the Tax Code and Government Code to incorporate references to these limitations and clarify the appraisal process for commercial properties. It updates Section 42.26(d) to include the new sections alongside existing ones for determining market value in legal suits and modifies the definition of "taxable value" in Sections 403.302(d) and (i). The bill will take effect for tax years beginning on or after January 1, 2026, contingent upon the approval of a constitutional amendment by voters that would authorize the legislature to limit the maximum appraised value of certain commercial properties. If the amendment is not approved, the provisions of the bill will not take effect.

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