Proposing a constitutional amendment to authorize the legislature to set a lower limit on the maximum appraised value of a residence homestead for ad valorem taxation.

This bill proposes a constitutional amendment allowing the Texas legislature to set a lower maximum appraised value for homestead property taxes. It would authorize the legislature to limit the taxable value of a primary residence to the lesser of its most recent market value or 105% of its previous year's appraised value. This change would directly affect homeowners who qualify for homestead exemptions, as the tax limit would take effect after they qualify for the exemption and expire if they or their spouse no longer qualify. The amendment requires voter approval, with a proposed election date of May 2, 2026. If approved, it would modify Article VIII of the Texas Constitution to create this new tax limitation mechanism.