H.B. No. 299 proposes amendments to the Tax Code regarding the appraisal value of residence homesteads for ad valorem tax purposes. The bill establishes that the appraised value for the first tax year a property owner qualifies for an exemption under Section 11.13 will be equal to the market value of the property. It introduces new subsections that clarify the conditions under which the appraised value can be limited in subsequent years, including provisions for bona fide purchasers and the treatment of inherited properties. Notably, the bill specifies that the limitation on appraised value does not expire if ownership changes due to inheritance, provided the new owner qualifies for the exemption.

Additionally, the bill outlines the application process for property owners seeking this limitation, ensuring that applications are confidential and detailing circumstances under which confidential information may be disclosed. 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.

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