Bill > HB4494

This bill amends the Tax Code to limit the appraised value of a residence homestead for ad valorem (property) tax purposes. The key provisions are: 1. The appraised value of a residence homestead is equal to the market value of the property for the first year the owner qualified for a homestead exemption, or the purchase price if the owner acquired the property as a bona fide purchaser for value. 2. If the homestead was first qualified before 2020, the 2019 appraised value is used for these purposes. 3. There are exceptions where the purchase price limitation does not apply, such as for certain court-ordered or related-party transfers. 4. The bill requires the owner to apply for the purchase price limitation, and provides for confidentiality of the application information. 5. The limitation does not expire as long as the property continues to qualify for the homestead exemption, even if ownership changes through inheritance or a will. The bill is contingent on voter approval of a related constitutional amendment.