The bill, 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 new language 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.

This legislation is set to take effect on January 1, 2026, and will apply to the appraisal of residence homesteads for tax years beginning on or after that date. The bill aims to provide clarity and stability in the appraisal process, ensuring that increases in property values are capped to prevent excessive tax burdens on homeowners.

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