Bill > HB3239

This bill modifies the Texas Tax Code to allow local taxing units to provide a new type of property tax homestead exemption, shifting from a percentage-based exemption to a fixed dollar amount exemption. Starting in the 2026 tax year, the maximum exemption would be $100,000, with an annual adjustment for inflation based on the Consumer Price Index for all Urban Consumers (CPI-U). The comptroller is required to calculate and publish the maximum exemption amount each year by March 15, using a formula that multiplies the previous year's exemption by the inflation rate and adding that amount to the previous year's exemption. The bill is contingent on voters approving a corresponding constitutional amendment during the 89th Legislature's 2025 regular session, which would authorize local governments to implement this new type of homestead property tax exemption. If the constitutional amendment is not approved by voters, this bill will have no effect. The changes would apply only to property taxes imposed for tax years beginning on or after the bill's effective date of January 1, 2026.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3239