The bill amends Section 23.23(a) of the Texas Tax Code to modify the limitations on increases in the appraised value of a residence homestead for ad valorem taxation. Specifically, it changes the allowable increase from a maximum of 10 percent to a maximum of 2 percent of the appraised value of the property for the preceding tax year. This adjustment aims to provide greater protection for homeowners against significant increases in property taxes due to rising market values.

The bill will only take effect on January 1, 2027, contingent upon the approval of a constitutional amendment proposed by the 89th Legislature, 2nd Called Session, 2025. If voters do not approve this amendment, the bill will have no effect. This legislative change is intended to ensure that homeowners are not disproportionately burdened by rising property taxes while still allowing for some increase in appraised values to account for improvements and market conditions.

Statutes affected:
Introduced: Tax Code 23.23 (Tax Code 23)