Bill > SB244

This bill modifies Texas property tax appraisal rules for residential homesteads, introducing several key changes to how home values are assessed for tax purposes. The legislation establishes that when a homeowner first qualifies for a homestead exemption, the property's appraised value will be equal to its market value. For subsequent years, the appraised value can only increase by a base amount plus the market value of any new improvements. The bill creates a special provision for homeowners who purchase a property as a "bona fide purchaser for value", allowing them to use their purchase price as the initial market value for tax assessment. Homeowners must apply for this valuation limitation, and their application will be kept confidential. The limitation on value increases will remain in effect even if the original homeowner dies and the property is inherited by a qualifying family member who continues to use it as a primary residence. The bill is contingent on voter approval of a related constitutional amendment and will take effect on January 1, 2026, applying only to ad valorem taxes (property taxes) for tax years beginning on or after that date. This legislation aims to provide more predictability and potential tax relief for homeowners by constraining how quickly their property's taxable value can increase.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB244