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

HB 356 would limit annual increases in property taxes for Texas homeowners with homestead exemptions (primary residences). It sets a new cap of 10% on how much a home's taxable value can rise each year, calculated as 10% of last year's value plus last year's value plus any new improvements. This change would apply only to tax years beginning on or after January 1, 2026, but only if voters approve a related constitutional amendment in 2025. The bill directly affects homeowners with homestead exemptions by restricting annual tax increases tied to property value.