H.B. No. 90 proposes an amendment to the Tax Code regarding the ad valorem tax appraisal of older residence homesteads situated in or near tax increment financing reinvestment zones. The bill introduces a new provision that allows the chief appraiser of the appraisal district to exclude the value of new or substantially remodeled residential properties in the same neighborhood when determining the market value of a residence homestead that is over 30 years old and located within a designated reinvestment zone or within two miles of its boundaries. This exclusion aims to ensure a fair appraisal process for older homes by mitigating the impact of newer developments on their assessed value.

The bill specifies that it will only apply to appraisals for tax years beginning on or after its effective date of January 1, 2026. However, this implementation is contingent upon the approval of a constitutional amendment that grants the legislature the authority to allow such exclusions in property appraisals. If the amendment is not approved by voters, the provisions of this bill will have no effect.

Statutes affected:
Introduced: Tax Code 23.013 (Tax Code 23)