Monitoring the Session

HB 3235

10 percent homestead cap goes from ceiling to formula

Died in committee

Verdict: No flags

No flagsInitial review
Rep. Chris TurnerDHouse 101

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.

Caption from analyzed text · version I.

Summary

Appraisal offices lose the room to set a value below it.

The bill rewrites the 10 percent yearly cap on homestead appraisals so that a home's taxable value is set equal to the lesser of its market value or last year's value plus 10 percent plus new improvements. Under current law the appraisal office may raise the value up to that limit. This change affects every Texas homeowner with a residence homestead and every appraisal office. On the ground, the cap becomes an automatic formula rather than a ceiling, which removes the office's room to set a value below the cap, starting with tax years that begin on or after January 1, 2026.

Labels

Labels: ACROSS THE AISLE. Joint authors: 1 Republican, 1 Democrat. Party as the Legislative Reference Library lists it for the 89th Legislature.PENDING FOREVER. Heard by the House Ways & Means subcommittee on Property Tax Appraisals on Apr 3, 2025 and left pending. Never voted out. The bill died.

Receipt

The receipt

89R-HB3235 · 2025-02-24

SOLD BY

Rep. Chris TurnerDHouse 101 Rep. Charlie GerenRHouse 99

ITEM

relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.

WHAT IT DOES

Appraisal offices lose the room to set a value below it.

The bill rewrites the 10 percent yearly cap on homestead appraisals so that a home's taxable value is set equal to the lesser of its market value or last year's value plus 10 percent plus new improvements. Under current law the appraisal office may raise the value up to that limit. This change affects every Texas homeowner with a residence homestead and every appraisal office. On the ground, the cap becomes an automatic formula rather than a ceiling, which removes the office's room to set a value below the cap, starting with tax years that begin on or after January 1, 2026.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 2, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to s/c on Property Tax Appraisals by Speaker
  4. Scheduled for public hearing in s/c on . . .
  5. Considered by s/c in public hearing
  6. Committee substitute considered in s/c
  7. Testimony taken/registration(s) recorded in subcommittee
  8. Left pending in subcommittee
  9. Considered by s/c in formal meeting
  10. Committee substitute considered in s/c
  11. Reported from s/c favorably with substitute
FILED UNDER

PROPERTY TAX RELIEF THAT ISN'T

THE TEXT

…“residence homestead for a tax year is equal to [ an amount not to”…

Bill text, introduced version (I)

The bill strikes the 'not to exceed' ceiling language and makes the capped amount the required homestead value, so a value set below the cap is no longer allowed.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Chris Turner

Donors

Texas Trial Lawyers Association PAC$108KTexas REALTORS Political Action Committee$100KTexas Sands PAC$84K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 27, 2024 to Jun 1, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Trial Lawyers Association PAC$107,500.00

Texas Trial Lawyers Association PAC

$107,500.00

Cash
$107,500.00
Paid by others
$0.00
Total
$107,500.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 6, 2024 to Feb 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985193, 101006969, 101027154, 101035221, 101040103.

Texas REALTORS Political Action Committee$100,389.10

Texas REALTORS Political Action Committee

$100,389.10

Cash
$70,000.00
Paid by others
$30,389.10
Total
$100,389.10
mail $25,664.64text $3,089.24event $1,125.00Other filed descriptions $260.22advertising $250.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 4, 2024 to Mar 3, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985193, 101006969, 101027154, 101040103, 101064980.

Texas Sands PAC$84,000.00

Texas Sands PAC

$84,000.00

Cash
$84,000.00
Paid by others
$0.00
Total
$84,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 6, 2024 to Feb 6, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985193, 101040103.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Trial Lawyers Association PAC

$107,500.00

Cash
$107,500.00
Paid by others
$0.00
Total
$107,500.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 6, 2024 to Feb 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985193, 101006969, 101027154, 101035221, 101040103.

×

Texas REALTORS Political Action Committee

$100,389.10

Cash
$70,000.00
Paid by others
$30,389.10
Total
$100,389.10
mail $25,664.64text $3,089.24event $1,125.00Other filed descriptions $260.22advertising $250.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 4, 2024 to Mar 3, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985193, 101006969, 101027154, 101040103, 101064980.

×

Texas Sands PAC

$84,000.00

Cash
$84,000.00
Paid by others
$0.00
Total
$84,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 6, 2024 to Feb 6, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100985193, 101040103.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 2, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Feb 24, 2025

04/08/2025 H Reported from s/c favorably with substitute

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Final status: Died in committee

Subjects

Property Interests--Homestead

Taxation--Property-Appraisals & Appraisal Districts

Taxation--Property-Exemptions

Text

The text as introduced · 225 words

89R5610 MLH-D

By: Turner
H.B. No. 3235

A BILL TO BE ENTITLED

AN ACT

relating to the limitation on increases in the appraised value of a

residence homestead for ad valorem tax purposes.

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

SECTION 1. Section 23.23(a), Tax Code, is amended to read as

follows:

(a) Notwithstanding the requirements of Section 25.18 and

regardless of whether the appraisal office has appraised the

property and determined the market value of the property for the tax

year, [ an appraisal office may increase ] the appraised value of a

residence homestead for a tax year is equal to [ an amount not to

exceed ] the lesser of:

(1) the market value of the property for the most

recent tax year that the market value was determined by the

appraisal office; or

(2) the sum of:

(A) 10 percent of the appraised value of the

property for the preceding tax year;

(B) the appraised value of the property for the

preceding tax year; and

(C) the market value of all new improvements to

the property.

SECTION 2. This Act applies only to the appraisal for ad

valorem tax purposes of residence homesteads for a tax year that

begins on or after the effective date of this Act.

SECTION 3. This Act takes effect January 1, 2026.