Bill > HB202

This bill makes permanent a limitation on increases in the appraised value of real property (other than residential homesteads) for ad valorem (property) tax purposes. Specifically, the bill removes the previous time-limited language that restricted the "circuit breaker limitation" to tax years 2024-2026, effectively making the 20% annual cap on property value increases a permanent feature. The bill also repeals several sections of previous legislation that were set to take effect in 2027, which would have changed or expired the current tax assessment rules. Notably, the bill's implementation is contingent upon voter approval of a constitutional amendment in 2025 that would authorize the legislature to permanently implement this property value assessment limitation. If the constitutional amendment is not approved by voters, the bill will have no effect. The changes would apply to property tax assessments for tax years beginning on or after the bill's effective date of January 1, 2026.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB202