Bill > HB273

This bill introduces a new limitation on the appraised value of commercial real property for tax purposes, specifically targeting properties with a market value of $10 million or less. The bill defines commercial real property as real estate held or used for income production and establishes a cap on annual appraisal value increases. Under the new provisions, an appraisal office may increase the appraised value of a qualifying commercial property by no more than 10 percent plus the market value of any new improvements. This limitation takes effect on January 1 of the tax year following the first year the owner owns the property and meets the commercial property definition, and it expires when the owner changes or the property no longer qualifies as commercial real estate. The bill also includes special provisions for replacement structures damaged by casualty or wind/water damage, ensuring that such replacements are not automatically considered new improvements in certain circumstances. Additionally, the bill makes conforming amendments to various sections of the Tax Code and Government Code to integrate this new limitation into existing property tax assessment processes. The bill is contingent on voter approval of a related constitutional amendment and would take effect on January 1, 2026, if that amendment passes.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB273