Bill > HB249

This bill modifies the way property values are appraised for tax purposes in Texas, primarily by reducing the annual cap on appraised value increases from 10% to 5% for most real property. The bill expands the existing property value limitation from just residence homesteads to all real property, including manufactured homes. Under the new law, the appraised value of a property can only increase by the lesser of its market value or 5% plus the previous year's appraised value, plus the value of any new improvements. The limitation takes effect the January 1st following the first year a property is owned, and expires when the owner sells or transfers ownership of more than 50% of the property. For properties owned by spouses, the limitation can continue if the property is transferred between spouses. The bill also removes references to a previous "circuit breaker" limitation and requires that the market value of the property still be calculated, even though the taxable value is limited. Importantly, this bill is contingent on a constitutional amendment being approved by voters in 2025 that would explicitly authorize this type of property value limitation.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB249