Bill > HB1898

This bill modifies Texas property tax appraisal rules by changing the limitation on how much the appraised value of real property can increase each year. Currently, the appraised value of a residence homestead could increase up to 10% annually, but this bill reduces that cap to 5% for all real property, not just residential homesteads. The bill expands the scope of the limitation to cover more types of property, including manufactured homes. It also changes when the limitation takes effect, now applying from the first January 1st after a property is acquired, and provides new rules for how the limitation continues or expires when property is transferred between spouses or when multiple owners sell their interest. The bill removes references to a previous "circuit breaker" limitation and adjusts various related sections of the tax code to reflect these changes. Importantly, the bill will only take effect if voters approve a constitutional amendment in 2025 that explicitly authorizes the legislature to limit property value increases to 105% or more of the previous year's value. The changes are set to begin on January 1, 2026, and are designed to provide property owners with more predictable and potentially lower property tax assessments.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1898