Bill > HB1430

This bill introduces a new limitation on the appraised value of commercial real property for tax purposes, applying to properties with a market value of $10 million or less. The key provisions include defining commercial real property as property held or used for income production, and creating a cap on annual property value increases. Specifically, the bill allows appraisal offices to increase the appraised value of such properties by no more than the lesser of: the most recent market value determined, or 20% of the previous year's appraised value plus the previous year's appraised value and the market value of any new improvements. The limitation takes effect when a property owner first owns the property as commercial real estate and expires when the ownership changes or the property no longer qualifies as commercial. The bill includes special provisions for replacement structures damaged by casualties, ensuring that certain improvements related to disaster recovery programs are not considered new improvements that would trigger full value reassessment. The legislation is contingent on voter approval of a related constitutional amendment and would take effect on January 1, 2026, with the goal of providing predictability and potential tax relief for smaller commercial property owners by limiting rapid increases in assessed property values.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1430