Proposing a constitutional amendment to set homestead property tax value at market value for first year of exemption.

The bill proposes a constitutional amendment to allow the Texas legislature to set the appraised value of a residence homestead for ad valorem tax purposes at the market value for the first tax year the owner qualifies for a homestead exemption. If the owner purchased the property, the purchase price is considered the market value for that year. The amendment also limits increases in appraised value for subsequent years based on the market value of new improvements. The amendment will be submitted to voters in the November 4, 2025 election.

Proposing a constitutional amendment to set homestead property tax value at market value for first year of exemption.

The bill proposes a constitutional amendment to allow the Texas legislature to set the appraised value of a residence homestead for ad valorem tax purposes at the market value for the first tax year the owner qualifies for a homestead exemption. If the owner purchased the property, the purchase price is considered the market value for that year. The amendment also limits increases in appraised value for subsequent years based on the market value of new improvements. The amendment will be submitted to voters in the November 4, 2025 election.