Limits increases in appraised value for residence homesteads for ad valorem taxation in Texas.

This bill amends the Tax Code to limit the increase in appraised value for residence homesteads for ad valorem taxation. If the constitutional amendment to authorize this limit is approved by voters, the appraised value of a residence homestead for a tax year can only increase to the lesser of the market value from the previous year or the sum of two percent of the previous year's appraised value, the previous year's appraised value, and the market value of new improvements. This applies to appraisals for tax years beginning on or after January 1, 2027.

Limits increases in appraised value for residence homesteads for ad valorem taxation in Texas.

This bill amends the Tax Code to limit the increase in appraised value for residence homesteads for ad valorem taxation. If the constitutional amendment to authorize this limit is approved by voters, the appraised value of a residence homestead for a tax year can only increase to the lesser of the market value from the previous year or the sum of two percent of the previous year's appraised value, the previous year's appraised value, and the market value of new improvements. This applies to appraisals for tax years beginning on or after January 1, 2027.