Relating to providing for a reduction of the appraised value of a residence homestead for ad valorem tax purposes for the first tax year in which the owner qualifies the property for a residence homestead exemption based on the amount by which the limitation on increases in the appraised value of a residence homestead reduced the appraised value of the owner's former residence homestead for the last tax year in which the owner qualified the former residence homestead for a residence homestead exemption.

HB 3212 provides property tax relief for Texas homeowners who move to a new primary residence. It allows a reduction in the assessed value of the new home for the first tax year it qualifies for a homestead exemption, equal to the tax savings they previously received on their old home (capped at $500,000). This applies only to homeowners who moved to a new property qualifying for a homestead exemption starting in 2026. The bill requires the previous home’s tax break amount to be calculated and certified by the county appraiser. The policy change takes effect January 1, 2026, contingent on voter approval of a related constitutional amendment.