Bill > SB320

This bill modifies the Texas Tax Code to reduce the annual cap on increases in the appraised value of residential homesteads for property tax purposes from 10 percent to 5 percent. Under the current law, the appraised value of a residential homestead can increase by up to 10 percent each year, regardless of market conditions. The proposed change would limit this increase to 5 percent, potentially providing homeowners with greater protection against rapid property tax escalation. The bill will only take effect on January 1, 2026, and is contingent upon voters approving a related constitutional amendment during the 89th Legislature's Regular Session in 2025. If the constitutional amendment is not approved by voters, this bill will have no effect. The legislation applies to property tax appraisals for tax years beginning on or after its effective date, meaning homeowners could see lower potential property value increases starting in the specified tax year.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB320