H.B. No. 299 proposes amendments to the Tax Code regarding the appraisal of residence homesteads for ad valorem tax purposes. The bill establishes that the appraised value of a residence homestead for the first tax year the owner qualifies for an exemption is equal to the market value of the property. It introduces new provisions that allow the purchase price of the property to be considered the market value for the first tax year if the owner acquired the property as a bona fide purchaser. Additionally, the bill outlines the process for property owners to apply for a limitation on appraised value, which must be filed with the chief appraiser, and ensures that such applications remain confidential.

The bill also clarifies that the limitation on appraised value does not expire if the property changes ownership through inheritance or a will, provided the new owner qualifies for an exemption. The changes will take effect on January 1, 2027, contingent upon the approval of a related constitutional amendment by voters. If the amendment is not approved, the bill will have no effect. Overall, the legislation aims to provide more stability and predictability in property tax assessments for homeowners.

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