Texas HB398 modifies the limitations on increases in the appraised value of property for ad valorem tax purposes.

Texas HB398 amends the Tax Code to change how the appraised value of property is determined for ad valorem tax purposes. It allows appraisal offices to increase the appraised value of a residence homestead for a tax year to the lesser of the market value for the most recent tax year or a sum that includes the appraised value of the property for the preceding tax year and the market value of all new improvements. The bill also modifies the definition of "new improvement" and repeals certain sections of the Tax Code.

Texas HB398 modifies the limitations on increases in the appraised value of property for ad valorem tax purposes.

Texas HB398 amends the Tax Code to change how the appraised value of property is determined for ad valorem tax purposes. It allows appraisal offices to increase the appraised value of a residence homestead for a tax year to the lesser of the market value for the most recent tax year or a sum that includes the appraised value of the property for the preceding tax year and the market value of all new improvements. The bill also modifies the definition of "new improvement" and repeals certain sections of the Tax Code.