Bill > HB490

This bill modifies the Texas Tax Code to broaden and adjust property tax appraisal value limitations, primarily changing the existing rules for how much a property's appraised value can increase annually. The key changes include reducing the maximum annual appraisal value increase from 10% to 5% for most real properties, expanding the limitation beyond just residence homesteads to include all real property (including manufactured homes), and establishing new rules for how the limitation applies when property ownership changes. The bill introduces nuanced provisions such as continuing the value limitation when property transfers between spouses, expiring the limitation if over 50% of property ownership is transferred, and retroactively considering property acquired before 2025 as having been acquired on January 1, 2025, for the purposes of applying these new limits. The bill is contingent on voters approving a related constitutional amendment in 2025 that would authorize the legislature to implement these property value appraisal restrictions, and if that amendment is not approved, the bill will have no effect. The legislation aims to provide more predictable and potentially lower property tax assessments for property owners by constraining annual appraisal value increases.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB490