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TX HB260

TX HB260
Relating to a limitation on increases in the appraised value of certain commercial real property for ad valorem tax purposes.


summary

Introduced
08/19/2025
In Committee
Crossed Over
Passed
Dead
09/03/2025

Introduced Session

89th Legislature 2nd 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 introduces a new limitation on the annual increase of appraised value for commercial real property valued at $10 million or less, designed to provide tax relief for smaller commercial property owners. Under the proposed legislation, an appraisal office can increase the appraised value of a qualifying commercial property by no more than 10% per year, plus the market value of any new improvements to the property, while still appraising the property at its full market value. The bill defines "commercial real property" as property held or used for income production and establishes specific rules for when the limitation takes effect and expires. It also includes special provisions for replacement structures damaged by casualty or wind/water damage, ensuring that property owners who are rebuilding after a disaster are not unfairly penalized. The bill amends various sections of the Texas Tax Code to implement these changes and includes a provision that the law will only take effect on January 1, 2027, contingent upon voter approval of a related constitutional amendment. The goal appears to be providing predictability and some protection against rapid property value increases for smaller commercial property owners.

Sponsors (1)

Last Action

Filed (on 08/19/2025)

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