Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.

This bill (HB 151) limits annual increases in the property tax value for Texas primary residences (homesteads). It caps the appraised value increase for a tax year to the lesser of: (1) the property's most recent market value, or (2) 10% of the prior year's value plus the prior year's value plus the value of new improvements. The rule applies only to tax years starting January 1, 2027, but only if Texas voters approve a related constitutional amendment in 2025. It directly affects homeowners with homestead properties paying property taxes under Texas law.