The bill, H.B. No. 3235, proposes amendments to the Tax Code regarding the limitations on increases in the appraised value of residence homesteads for ad valorem tax purposes. Specifically, it modifies Section 23.23(a) to clarify that the appraised value of a residence homestead 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 specifies that these changes will only apply to appraisals for tax years beginning on or after January 1, 2026, which is the effective date of the Act. This legislative change aims to provide clearer guidelines for property appraisals and limit the potential for excessive increases in property taxes on residence homesteads.

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