Bill > SB321

This bill modifies the Texas Tax Code to reduce the maximum annual increase in the appraised value of a residence homestead (a primary home that qualifies for a property tax exemption) from 10 percent to 5 percent. Under the current law, the appraisal office can increase a home's appraised value by up to 10 percent each year, or to the property's market value, whichever is less. The proposed change would limit that increase to 5 percent annually, while still allowing the addition of the market value of any new improvements to the property. The bill is contingent on voters approving a constitutional amendment in 2025 that would authorize the legislature to set a lower limit on residential property appraisal increases. If the constitutional amendment passes, the new 5 percent cap would apply to property tax appraisals for tax years beginning on or after January 1, 2026, potentially providing homeowners with some protection against rapid property tax increases.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB321