The bill, H.B. No. 4191, proposes amendments to Section 23.23(a) of the Texas Tax Code regarding the appraisal value adjustments for residence homesteads. It 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 formula that accounts for the decrease in market value and includes the market value of new improvements.

The bill also includes specific deletions and insertions to clarify the conditions under which these adjustments can be made. Notably, it replaces the previous maximum increase of 10 percent with a new limit of 3 percent and introduces a detailed method for calculating adjustments in cases of both increases and decreases in market value. The bill is set to take effect on September 1, 2025.

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