Bill > SB322

This bill modifies Texas property tax regulations by reducing the maximum annual increase in appraised value for non-residential properties from 20% to 10%, extending the existing "circuit breaker" tax limitation from 2026 to 2031. The bill excludes residence homesteads, properties with specific agricultural or special-use appraisals, and mineral interests from this limitation. Specifically, the law limits how much the appraised value of real property can increase each year, calculated as either the property's most recent market value or the sum of 10% of the previous year's appraised value plus the previous year's value and the market value of any new improvements. The bill also updates notice requirements for property owners, informing them about the new percentage cap and its potential expiration. Importantly, the bill's implementation is contingent on voter approval of a related constitutional amendment during the 2025 legislative session that would authorize these changes. If the constitutional amendment is not approved, the proposed changes will have no effect, maintaining the current 20% cap and 2026 expiration date.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB322