H.B. No. 3130 introduces a limitation on the increases in appraised values for ad valorem tax purposes specifically for residential real property leased to elderly individuals aged 65 and older. The bill adds a new section, 23.232, to the Tax Code, defining terms such as "fair market rent" and "new improvement." It specifies that the limitation applies to single-family residential properties rented to eligible elderly tenants at rents not exceeding fair market rent, and it outlines conditions under which appraisal offices can increase the appraised value, ensuring that such increases do not surpass certain limits based on previous appraised values and any new improvements made. The bill also includes provisions for property owners to apply for this limitation annually and clarifies the treatment of improvements made to damaged properties.

Additionally, the bill amends Sections 403.302(d) and (i) of the Government Code, refining the definition of "taxable value" for school districts by incorporating the new Section 23.232 into the calculations while removing references to Section 23.231. It specifies exemptions and deductions applicable to taxable value, including residence homestead exemptions and captured appraised values within reinvestment zones. The comptroller is tasked with assessing the validity of market values determined by appraisal districts and adjusting taxable values accordingly. The bill is set to take effect on January 1, 2026, contingent upon voter approval of a related constitutional amendment during the 89th Legislature's Regular Session in 2025.

Statutes affected:
Introduced: Subchapter B, Chapter , Tax Code 23.23 (Subchapter B, Chapter , Tax Code 23)