H.B. No. 3239 proposes to amend the Tax Code to allow the governing body of a taxing unit to adopt an exemption from ad valorem taxation for a portion of the appraised value of an individual's residence homestead, specifically expressed as a dollar amount rather than a percentage. The bill stipulates that for the 2026 tax year, the exemption amount cannot exceed $100,000. Additionally, it establishes a mechanism for adjusting the exemption amount in subsequent years based on the inflation rate, which is defined as the percentage change in the Consumer Price Index for all Urban Consumers (CPI-U) published by the Bureau of Labor Statistics.

The bill also repeals Section 11.13(n-1) of the Tax Code and removes the previous stipulation that if the percentage set by the taxing unit resulted in an exemption of less than $5,000, the individual would still be entitled to a $5,000 exemption. The act is set to take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters during the 89th Legislature's Regular Session in 2025. If the amendment is not approved, the act will have no effect.

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