Bill > HB261

This bill introduces a new limitation on the annual increase of appraised value for commercial real property valued at $10 million or less. Specifically, the bill allows appraisal offices to increase the appraised value of such commercial properties by no more than the lesser of: the most recent market value determined by the appraisal office, or 20 percent of the previous year's appraised value plus the previous year's appraised value and the market value of any new improvements. The bill defines "commercial real property" as property held or used for income production and "new improvements" as improvements that increase market value, excluding routine repairs or maintenance. The limitation takes effect on January 1 of the tax year following the first year the property meets the commercial real property definition and expires when the property's ownership changes or it no longer qualifies as commercial property. The bill also includes special provisions for replacement structures damaged by casualties, ensuring that certain improvements related to disaster recovery programs are not automatically considered new improvements. Additionally, the bill requires appraisal notices to indicate whether a property qualifies for this new valuation limitation and allows property owners to protest the determination. The bill is set to take effect on January 1, 2027, but only if a corresponding constitutional amendment is approved by voters.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB261