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HB 3235

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

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Committee

Not yet assigned

Fiscal Note

Not available

What This Bill Does

Limits increases in the appraised value of residential homesteads for property tax purposes. Specifically, the appraised value cannot increase by more than 10% per year, helping protect homeowners from rapid property tax increases. The law will apply to tax years beginning on or after January 1, 2026, providing long-term protection for Texas homeowners against significant annual property value assessments.

Subject Areas

Property Interests--Homestead Taxation--Property-Exemptions Taxation--Property-Appraisals & Appraisal Districts

Bill Text

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
(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
(1)  the market value of the property for the most
recent tax year that the market value was determined by the
(A)  10 percent of the appraised value of the
property for the preceding tax year;
(B)  the appraised value of the property for the
(C)  the market value of all new improvements to
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.

Bill History

filed

Bill filed: AN ACT relating to the limitation on increases in the appraised value of a

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