Patterson Bill Cuts Homestead Appraisal Cap From 10 To 3 Percent

The text as introduced · 275 words

90R3063 RDS-D

By: Patterson
H.B. No. 563

A BILL TO BE ENTITLED

AN ACT

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

residence homestead for ad valorem taxation.

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 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) three [ 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 taxation 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, 2028, but only

if the constitutional amendment proposed by the 90th Legislature,

Regular Session, 2027, to authorize the legislature to set a lower

limit on the maximum appraised value of a residence homestead for ad

valorem taxation is approved by the voters. If that amendment is

not approved by the voters, this Act has no effect.