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TX HB168
TX HB168Relating to a limitation on increases in the appraised value of certain commercial real property for ad valorem tax purposes.
summary
Introduced
07/22/2025
07/22/2025
In Committee
Crossed Over
Passed
Dead
08/15/2025
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)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://capitol.texas.gov/BillLookup/History.aspx?LegSess=891&Bill=HB168 |
BillText | https://capitol.texas.gov/tlodocs/891/billtext/html/HB00168I.htm |
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