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

HB 157 limits annual increases in the property tax value for Texas primary residences (homesteads) to no more than 5% of the previous year's appraised value, plus the value of new improvements. It directly affects homeowners who live in their primary residence, capping how much their property tax bill can rise each year. The bill amends Texas Tax Code Section 23.23(a) to establish this cap, replacing a previous 10% limit. The law would take effect January 1, 2027, but only if voters approve a related constitutional amendment in 2025.