H.B. No. 90 proposes an amendment to the Texas 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. This exclusion is intended to ensure a fair appraisal process for older homes, which may otherwise be negatively impacted by the presence of newer properties.

The bill specifies that the exclusion applies to appraisals for tax years beginning on or after the effective date of the Act, which is set for January 1, 2026. However, the implementation of this Act is contingent upon the approval of a constitutional amendment by voters, which would authorize the legislature to allow such exclusions in property appraisals. If the amendment is not approved, the provisions of this Act will not take effect.

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