H.B. No. 3239 proposes amendments to the Texas Tax Code regarding ad valorem taxation exemptions 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 each subsequent tax year, 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). The comptroller is tasked with calculating and publishing the maximum exemption amount annually by March 15.

The bill also repeals Section 11.13(n-1) of the Tax Code, which previously contained provisions related to percentage-based exemptions. The changes will only take effect on January 1, 2026, contingent upon the approval of a constitutional amendment by voters that would authorize these new exemption provisions. If the amendment is not approved, the bill will have no effect.

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