Bill > HB375

This bill modifies the Texas Property Tax Code to change how the appraised value of real property is calculated for tax purposes, reducing the annual maximum increase in appraised value from 10% to 3.5% for most types of real property. The bill expands the limitation on appraised value increases from just residence homesteads to all real property, with some nuanced provisions for property ownership transfers. Specifically, the limitation takes effect when a property is first acquired and expires when the owner sells or transfers ownership, with special rules for transfers between spouses. The bill also clarifies that the limitation applies to manufactured homes used as primary residences. Importantly, the bill is contingent on voter approval of a constitutional amendment in 2025 that would explicitly authorize the legislature to limit property appraisal value increases to 103.5% or more of the previous year's value. If the constitutional amendment is not approved, this bill will have no effect. The changes are set to take effect on January 1, 2026, and will apply to property tax appraisals for tax years beginning on or after that date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB375