H.B. No. 3235 amends Section 23.23(a) of the Texas Tax Code to establish a limitation on the increases in the appraised value of a residence homestead for ad valorem tax purposes. The bill specifies that the appraised value for a tax year is equal to the lesser of the market value determined by the appraisal office for the most recent tax year or a calculated sum that includes 10 percent of the appraised value from the preceding year, the appraised value from the preceding year, and the market value of any new improvements made to the property.

The bill also clarifies that these changes apply only to appraisals for tax years beginning on or after January 1, 2026. This legislation aims to provide more predictable and manageable increases in property taxes for homeowners by capping the annual increase in appraised value.

Statutes affected:
Introduced: Tax Code 23.23 (Tax Code 23)