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

The bill amends the Tax Code to limit the increase in the appraised value of a residence homestead for ad valorem taxation. It allows an appraisal office to increase the appraised value to the lesser of the market value from the most recent tax year or a calculated sum involving the previous year's appraised value and market value of new improvements. This change applies to tax years beginning on or after the effective date of the Act, which is set for January 1, 2026, contingent on voter approval of a constitutional amendment.

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

The bill amends the Tax Code to limit the increase in the appraised value of a residence homestead for ad valorem taxation. It allows an appraisal office to increase the appraised value to the lesser of the market value from the most recent tax year or a calculated sum involving the previous year's appraised value and market value of new improvements. This change applies to tax years beginning on or after the effective date of the Act, which is set for January 1, 2026, contingent on voter approval of a constitutional amendment.