H.B. No. 84 amends the Texas Tax Code to establish new limitations on increases in the appraised value of certain properties for ad valorem tax purposes. Specifically, the bill allows appraisal offices to increase the appraised value of a residence homestead by a maximum of 2.5 percent of the appraised value from the previous year, as opposed to the previous limit of 10 percent. For other real properties, the increase is capped at eight percent instead of the previous 20 percent. The bill also clarifies definitions related to property appraisal, including the term "new improvement," which refers to enhancements made after the last appraisal that increase the property's market value.
Additionally, the bill repeals several provisions related to property appraisal and establishes that these changes will take effect only for tax years beginning on or after January 1, 2027. The implementation of this act is contingent upon the approval of a constitutional amendment that would allow the legislature to set lower limits on the maximum appraised value of properties for tax purposes. If the amendment is not approved by voters, the act will have no effect.
Statutes affected: Introduced: Tax Code 23.23, Tax Code 23.231, Tax Code 25.19 (Tax Code 25, Tax Code 23)