H.B. No. 4191 proposes amendments to Section 23.23(a) of the Texas Tax Code regarding the appraisal value adjustments for residence homesteads. The bill allows appraisal offices to adjust the appraised value of a residence homestead for a tax year, regardless of whether the property has been appraised for that year. The new provisions specify that the adjusted value cannot exceed the lesser of the market value from the most recent tax year or, if the market value has increased, a calculation based on a 3 percent increase of the previous year's appraised value, the previous year's appraised value, and the market value of any new improvements. Additionally, if the market value has decreased, the adjustment can be based on a reduction proportional to the decrease in market value, along with the market value of new improvements.

The bill replaces the previous maximum increase of 10 percent with a 3 percent cap and introduces a new formula for calculating adjustments in cases of decreased market value. This change aims to provide a more equitable approach to property tax assessments, ensuring that homeowners are not disproportionately affected by fluctuations in market value. The act is set to take effect on September 1, 2025.

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