Bill > HB4082

This bill proposes significant changes to how real property is appraised for tax purposes in Texas, primarily by modifying the existing limitations on property value increases. The bill establishes that for the first tax year an owner owns a property, the appraised value will be equal to the market value. In subsequent years, the property's appraised value can only be increased by a percentage determined annually by the comptroller based on changes in consumer purchasing power. If a property is purchased, the purchase price will be considered the market value for the first tax year, but the owner must apply for this limitation. The bill removes references to a previous "circuit breaker" limitation and expands the scope of property value limitations beyond just residence homesteads to all real property. The limitation continues even when property is transferred to a spouse, but expires if more than 50% of the property is sold or transferred. The bill also makes various technical changes to related sections of the tax code, such as how property values are reported and how tax protests are handled. Importantly, the bill will only take effect if a corresponding constitutional amendment is approved by voters in 2025, which would explicitly authorize these property tax appraisal changes.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4082