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 determined by the lesser of the market value from the most recent tax year or a calculated sum that includes a 10 percent increase from the previous year's appraised value, the previous year's appraised value itself, and the market value of any new improvements made to the property. The previous language allowing appraisal offices to increase the appraised value has been deleted.

The bill is set to take effect on January 1, 2026, and will apply to appraisals for ad valorem tax purposes for residence homesteads starting in tax years that begin on or after this effective date. This change aims to provide clearer guidelines for property appraisals and limit the potential for significant increases in property taxes for homeowners.

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