HB3235 - Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.

  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.