Bill > HB338

This bill reduces the maximum annual increase in appraised value for residential homestead properties from 10% to 5% for property tax purposes. Currently, the law allows appraisal offices to increase the appraised value of a residence homestead by up to 10% per year, but this bill would lower that cap to 5%. The change applies to tax years beginning on or after the effective date, which is January 1, 2026, but only if a related constitutional amendment is approved by voters during the 2025 legislative session. The amendment would specifically authorize the legislature to set a lower limit on residence homestead property tax appraisals. By reducing the potential annual increase, the bill aims to provide homeowners with greater protection against rapidly rising property tax assessments, which could help make housing more affordable and prevent homeowners from being priced out of their properties due to escalating tax burdens.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB338