House Bill No. 1898 amends the Texas Tax Code to refine the regulations surrounding 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, the repeal of a previous amendment set to take effect in 2027, and the redefinition of the heading of Section 23.23 to encompass "real property" rather than just "residence homestead." The bill introduces new subsections that specify conditions for increasing the appraised value of real property, particularly in cases of property transfers between spouses and ownership changes among multiple owners. Additionally, it defines "new improvement" to include enhancements that elevate market value while excluding ordinary maintenance.

The bill also repeals several sections of the Tax Code, indicating a significant shift in property appraisal practices, although the specific implications of these repeals are not detailed. The provisions of the bill will take effect for tax years beginning on or after January 1, 2026, contingent upon the approval of a constitutional amendment proposed by the 89th Legislature in 2025. This amendment aims to allow the legislature to limit the maximum appraised value of real property for ad valorem tax purposes to 105 percent or more of the previous year's appraised value. If the amendment is not approved by voters, the bill's provisions will not be enacted.

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