H.B. No. 3130 aims to provide financial relief to elderly individuals aged 65 and older by limiting the increases in the appraised value of residential real property they lease. The bill introduces a new section, 23.232, to the Tax Code, which specifies that eligible properties must be single-family residences leased at or below the fair market rent set by the U.S. Department of Housing and Urban Development. The appraisal office is restricted from increasing the appraised value beyond the lesser of the current market value or a calculated sum based on the previous year's appraised value plus any new improvements. Property owners are required to apply annually for this limitation, with provisions for late applications and updated protest rights regarding appraisal office determinations.

Additionally, the bill amends existing sections of the Tax Code and the Government Code, specifically inserting "or 23.232" to expand the applicability of certain property appraisal and tax calculation provisions. It outlines various deductions from the market value of taxable property, including exemptions for residence homesteads and captured appraised values within reinvestment zones. 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. If the amendment is not approved by voters, the provisions of this bill will not take effect.

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