House Bill No. 3239 proposes amendments to the Texas Tax Code regarding exemptions from ad valorem taxation for residence homesteads. The bill allows the governing body of a taxing unit to adopt an exemption expressed as a dollar amount, rather than a percentage, of the appraised value of an individual's residence homestead. Specifically, for the 2026 tax year, the maximum exemption amount is set at $100,000. Additionally, the bill mandates that for subsequent tax years, the maximum exemption amount will be adjusted based on the inflation rate, which is defined as the percentage change in the Consumer Price Index for all Urban Consumers (CPI-U) from the previous year.

The bill also repeals Section 11.13(n-1) of the Tax Code, which previously contained provisions related to the percentage of exemption that could be adopted by taxing units. The changes will take effect on January 1, 2026, contingent upon the approval of a constitutional amendment by voters that authorizes these modifications. If the amendment is not approved, the bill will have no effect.

Statutes affected:
Introduced: Tax Code 11.13 (Tax Code 11)