Bill > HB442

This bill modifies the rules for how much the appraised value of a residential property can increase each year for property tax purposes. Currently, the appraisal value can increase up to 10 percent annually, but this bill would reduce that maximum increase to 5 percent. The change applies to residence homesteads (primary homes) and would take effect on January 1, 2026, but only if voters approve a related constitutional amendment that allows the legislature to set a lower limit on property value increases. The bill specifically limits how much an appraisal office can raise the value of a home, ensuring that the increase cannot exceed either the property's most recent market value or a calculation that includes a 5 percent increase from the previous year's appraised value, plus the market value of any new improvements made to the property. If the constitutional amendment is not approved by voters, this bill will have no effect, making it contingent on voter support for implementing the new 5 percent cap on annual property value increases.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB442