The bill, H.B. No. 234, aims to make permanent the limitation on increases in the appraised value of certain real properties for ad valorem tax purposes. Specifically, it amends Section 25.19(o) of the Tax Code to remove the expiration date for the circuit breaker limitation, which previously restricted annual increases in appraised value to no more than 20 percent for properties other than residence homesteads. The language indicating that this limitation would expire on December 31, 2026, has been deleted, thereby allowing the limitation to continue indefinitely unless altered by future legislation.

Additionally, the bill repeals several provisions related to the temporary nature of the circuit breaker limitation, which were set to take effect on January 1, 2027. The bill stipulates that it will only apply to property appraisals for tax years beginning on or after January 1, 2027, and it will take effect on that date, contingent upon the approval of a constitutional amendment by voters that would authorize the legislature to make the limit on appraised values permanent. If the amendment is not approved, the bill will have no effect.

Statutes affected:
Introduced: Tax Code 25.19 (Tax Code 25)