Bill > HB356

This bill modifies the Texas Tax Code's rules for how much the appraised value of a residential property can increase each year for tax purposes. Currently, the appraised value can increase up to 10 percent annually, but this bill reduces that cap to 5 percent. The change applies to residence homesteads (primary homes) and is designed to limit property tax increases for homeowners. Specifically, the new law would allow an appraisal office to increase a home's appraised value by the lesser of either the property's most recent market value or a calculation that includes a 5 percent increase (previously 10 percent) from the previous year's appraised value, plus the value of any new improvements. Importantly, this bill will only take effect on January 1, 2026, and only if voters approve a related constitutional amendment that authorizes the legislature to set a lower limit on residential property appraisal increases. If voters do not approve the constitutional amendment, the bill will have no effect, maintaining the current 10 percent annual appraisal increase cap.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB356