House Bill No. 1898 proposes amendments to the Texas Tax Code that focus on the appraisal of real property for ad valorem tax purposes. Key changes include the modification of Section 1.12(d) to clarify the appraisal ratio for properties under Section 23.23, while removing references to Section 23.231. The bill also repeals a previous amendment set to take effect in 2027 and changes the heading of Section 23.23 to apply to "real property" instead of just "residence homestead." New subsections are introduced to specify conditions under which the appraised value of real property can be increased, including provisions for property transfers between spouses and ownership changes among multiple owners. Additionally, the bill defines "new improvements" to include manufactured homes qualifying as residence homesteads and removes references to the "circuit breaker limitation" on appraised value.

The bill also repeals several sections, including Section 4.12 of Chapter 1 from the Acts of the 88th Legislature and Sections 23.23(c-1), 23.231, and 25.19(o) of the Tax Code. The changes will apply to tax years beginning on or after the effective date of the Act, which is set for January 1, 2026, contingent upon the approval of a constitutional amendment proposed by the 89th Legislature in 2025. This amendment aims to authorize the legislature to limit the maximum appraised value of real property for ad valorem tax purposes to 105 percent or more of the appraised value from the previous tax year. If the amendment is not approved by voters, the provisions of this Act will have no effect.

Statutes affected:
Introduced: Tax Code 1.12, Tax Code 23.23 (Tax Code 1, Tax Code 23)