H.B. No. 1898 proposes amendments to the Texas Tax Code that focus on the appraisal of real property for ad valorem tax purposes. The bill modifies Section 1.12(d) to clarify the appraisal ratio for properties under Section 23.23, while removing references to Section 23.231. It also changes the heading of Section 23.23 from "Residence Homestead" to "Real Property," thereby expanding the scope of properties affected by appraisal limitations. The bill introduces provisions allowing appraisal offices to increase the appraised value of real property by a maximum of five percent of the previous year's value, in addition to the market value of any new improvements, and establishes conditions under which these limitations may expire.

Furthermore, the bill defines "new improvement" and clarifies the treatment of manufactured homes as real property for tax purposes. It repeals previous amendments set to take effect on January 1, 2027, maintaining the current framework until that date. The new appraisal regulations will apply to tax years beginning on or after the effective date of the Act, which is contingent upon the approval of a constitutional amendment proposed by the 89th Legislature in 2025. This amendment seeks 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 not take effect.

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