Bill > HB204

This bill modifies Texas property tax appraisal value limitations by reducing the maximum annual increase for residential homesteads from 10% to 2.5% and for other real property from 20% to 8%. The changes are contingent on voter approval of a constitutional amendment in 2025 that would allow the legislature to set these lower limits permanently. The bill clarifies how properties acquired before certain tax years will be assessed, updates notice requirements for property owners, and repeals several previously enacted provisions related to property tax appraisals. Specifically, for residential homesteads, the appraised value can now only increase by up to 2.5% annually (plus the value of new improvements), and for other real properties, the increase is limited to 8% annually. The bill is set to take effect on January 1, 2027, but only if the related constitutional amendment passes, with the goal of providing more predictable and controlled property tax assessments for Texas property owners.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=891&Bill=HB204