Relating to a limitation on increases in the appraised value of real property for ad valorem tax purposes.

HB 240 proposes a limit on how much the appraised value of a primary residence (homestead) can increase for property tax purposes in Texas. It would cap annual increases at either 5% of the previous year's appraised value plus that value plus new improvements, or the previous year's market value - whichever is lower. This rule applies to homeowners who own their primary residence as of January 1 of the tax year. The bill modifies Texas Tax Code Section 23.23 to implement this limitation, affecting residential property owners seeking to avoid rapid tax increases.