Relating to the frequency with which certain appraisal districts are required to reappraise property for ad valorem tax purposes and to a limitation on the authority of an appraisal district to increase the appraised value of property.
HB 2786 changes how Texas property taxes are calculated by requiring appraisal districts to update property values every two years instead of annually. It limits annual increases to 10% for primary residences (homesteads) and 20% for other property, capping growth at either the previous year's value plus a percentage or the most recent market value. This directly affects homeowners and property owners by preventing sudden large tax hikes during reappraisal cycles. The bill, which passed in May 2025, aims to provide more stability in property tax assessments while maintaining appraisal district requirements.
Bill status
passed
3 of 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
Governor
Introduced Mar 19, 2025
Last action May 14, 2025
Maddy AI version diff · 1 comparison
What changed between versions
Introduced
→
Engrossed
·
6 edits
·
May 14, 2025
MODERATE
This bill updates Texas appraisal district procedures to require annual reappraisals of all property instead of biennial reappraisals, and strengthens protections against arbitrary value increases by requiring clear and convincing evidence for any value increases in subsequent tax years. The changes aim to improve fairness and consistency in property tax assessments across the state.
Scope change
The bill expands the scope of reappraisal requirements from biennial to annual for all property within appraisal districts, and adds new protections for property owners against value increases without substantial evidence.
REQUIREMENT
Changed reappraisal frequency from biennial to annual for all property within appraisal district boundaries
Added requirement that appraisal districts must provide annual reappraisal plans for districts where Section 6.0301 applies
ENFORCEMENT
Added new provision requiring clear and convincing evidence to support any increase in appraised value in the next tax year after a value reduction
DEFINITION
Changed heading from 'ANNUAL REAPPRAISALS' to 'ANNUAL [PERIODIC] REAPPRAISALS' to reflect updated language
ADDED
Added burden of proof requirement placing responsibility on chief appraisers to justify value increases
TIMELINE
Maintained effective date of January 1, 2026 for the new appraisal requirements
Floor votes · House May 14, 2025
How they voted
83–50
Passed · 12 other
Total votes 145
May 14, 2025
D
Democratic60
90% Yea
R
Republican85
56% Nay
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
33
Key actions
9
Committee
7
Amendments
4
May 14, 2025
Introduced
Received from the House
upper
May 14, 2025
Lower · Passed
Passed
lower
May 13, 2025
Lower · Passed
Passed to engrossment as amended
lower
May 13, 2025
Amended
Amendment withdrawn
lower
May 13, 2025
Introduced
Amendment(s) offered
lower
May 13, 2025
Lower · Passed
Amended
lower
May 6, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 5, 2025
Lower · Passed
Committee report distributed
lower
Apr 24, 2025
Lower · Passed
Reported favorably as substituted
lower
Apr 8, 2025
Lower · Passed
Reported from s/c favorably with substitute
lower
Apr 3, 2025
Lower · Passed
Left pending in subcommittee
lower
Apr 3, 2025
Lower · Passed
Testimony taken/registration(s) recorded in subcommittee
lower
Mar 19, 2025
Committee
Referred to s/c on Property Tax Appraisals by Speaker
lower
Mar 19, 2025
Introduced
Read first time
lower
2 primary · 0 co-sponsors
Sponsors
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