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 single-family residences. The language indicating that this limitation would expire on December 31, 2026, has been deleted, and the bill now states that this limitation will continue indefinitely, subject to certain exceptions.

Additionally, the bill repeals several provisions from previous legislation that were set to take effect on January 1, 2027, which included amendments to various sections of the Tax Code. The act will apply to property appraisals for tax years beginning on or after January 1, 2027, and will take effect on that date, contingent upon the approval of a constitutional amendment by voters that authorizes 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)