Bill > HB878

This bill relates to a limitation on increases in the appraised value of real property for ad valorem (property) tax purposes. The key provisions are: 1) The bill amends the Tax Code to limit the annual increase in the appraised value of real property (including but not limited to residence homesteads) to 5% of the previous year's appraised value, plus the market value of any new improvements. This limitation applies beginning in the first tax year after the property is acquired, or in the first tax year after the owner qualifies the property as a residence homestead. 2) The bill also includes special provisions for properties owned by multiple individuals, and a transition rule for applying the new limitation starting in 2020. 3) The bill takes effect on January 1, 2020, but only if the voters approve a related constitutional amendment authorizing the legislature to implement this limitation on appraised value increases.