bill making the 20 percent appraisal cap permanent

The text as introduced · 463 words

By: Barry
H.B. No. 1622

A BILL TO BE ENTITLED

AN ACT

relating to making permanent the limitation on increases in the

appraised value of certain real property for ad valorem tax

purposes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 25.19(o), Tax Code, is amended to read as

follows:

(o) A notice required under Subsection (a) or (g) to be

delivered to the owner of real property other than a single-family

residence that qualifies for an exemption under Section 11.13 must

include the following statement: "Under Section 23.231, Tax Code,

[ for the 2024, 2025, and 2026 tax years, ] the appraised value of

real property other than a residence homestead for ad valorem tax

purposes may not be increased by more than 20 percent each year,

with certain exceptions. " [ The circuit breaker limitation provided

under Section 23.231, Tax Code, expires December 31, 2026. Unless

this expiration date is extended by the Texas Legislature,

beginning in the 2027 tax year, the circuit breaker limitation

provided under Section 23.231, Tax Code, will no longer be in effect

and may result in an increase in ad valorem taxes imposed on real

property previously subject to the limitation." This subsection

expires December 31, 2027. ]

SECTION 2. The following provisions are repealed:

(1) Section 23.231(k), Tax Code;

(2) Section 4.02, Chapter 1 (S.B. 2), Acts of the 88th

Legislature, 2nd Called Session, 2023, which amended Section

1.12(d), Tax Code, as effective January 1, 2027;

(3) Section 4.05, Chapter 1 (S.B. 2), Acts of the 88th

Legislature, 2nd Called Session, 2023, which amended Sections

25.19(b) and (g), Tax Code, as effective January 1, 2027;

(4) Section 4.08, Chapter 1 (S.B. 2), Acts of the 88th

Legislature, 2nd Called Session, 2023, which amended Section

41.41(a), Tax Code, as effective January 1, 2027;

(5) Section 4.10, Chapter 1 (S.B. 2), Acts of the 88th

Legislature, 2nd Called Session, 2023, which amended Section

42.26(d), Tax Code, as effective January 1, 2027; and

(6) Section 4.12, Chapter 1 (S.B. 2), Acts of the 88th

Legislature, 2nd Called Session, 2023, which amended Sections

403.302(d) and (i), Government Code, as effective January 1, 2027.

SECTION 3. This Act applies only to the appraisal of

property for ad valorem tax purposes for a tax year that begins on

or after the effective date of this Act.

SECTION 4. This Act takes effect January 1, 2026, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, to authorize the legislature to make

permanent the limit on the maximum appraised value of real property

other than a residence homestead for ad valorem tax purposes is

approved by the voters. If that amendment is not approved by the

voters, this Act has no effect.