Bill > HB240

This bill modifies Texas property tax appraisal rules by expanding the existing limitation on appraised value increases from being specific to residence homesteads to applying more broadly to all real property, including manufactured homes. The key changes include reducing the maximum annual appraised value increase from 10% to 5%, modifying when and how the limitation applies to property ownership, and adjusting the circumstances under which the limitation expires. Specifically, the limitation will now take effect the January 1st following a property's first ownership, and it will expire when the owner stops owning the property, with special provisions for transfers between spouses. The bill also clarifies that for properties acquired before 2026, owners will be considered to have acquired the property on January 1, 2026. Importantly, the bill is contingent on voters approving a constitutional amendment in 2025 that would authorize the legislature to limit property appraisal increases, and if that amendment is not approved, the bill will have no effect. The bill is set to take effect on January 1, 2027, and will apply to property tax appraisals for tax years beginning on or after that date.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=891&Bill=HB240