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Bill > HB168


TX HB168

TX HB168
Relating to a limitation on increases in the appraised value of certain commercial real property for ad valorem tax purposes.


summary

Introduced
07/22/2025
In Committee
Crossed Over
Passed
Dead
08/15/2025

Introduced Session

89th Legislature 1st Special Session

Bill Summary

AN ACT relating to a limitation on increases in the appraised value of certain commercial real property for ad valorem tax purposes.

AI Summary

This bill establishes a new limitation on increases in the appraised value of commercial real property for tax purposes, applying only to commercial properties valued at $10 million or less. Under the new law, an appraisal office can increase the appraised value of a qualifying commercial property by no more than 10% each year, plus the market value of any new improvements to the property. The bill defines "commercial real property" as property used for income production and "new improvement" as a property upgrade that increases market value, excluding routine repairs or maintenance. The limitation takes effect on January 1st of the year following the first tax year the property meets the commercial property definition and expires if the property ownership changes or no longer qualifies as commercial property. The bill also makes related technical amendments to various sections of the tax code to integrate this new appraisal limitation, such as modifying property valuation notices and protest procedures. Notably, the bill is contingent on voter approval of a constitutional amendment and will only take effect on January 1, 2027, if that amendment passes, providing a mechanism to control commercial property tax increases while allowing for property value recognition of significant improvements.

Sponsors (1)

Last Action

Filed (on 07/22/2025)

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