Relating to the authority of the chief appraiser of certain appraisal districts to consider a property to be a comparable property when using the market data comparison method of appraisal to determine the market value of a residence homestead for ad valorem tax purposes.

HB 361 amends Texas Tax Code to change how property appraisers determine the value of homesteads (tax-exempt homes) for property tax purposes. It requires chief appraisers to only compare a homestead’s value to other similar homesteads within the same neighborhood, excluding non-exempt properties like commercial buildings. This directly affects homeowners who qualify for homestead tax exemptions under Section 11.13 of the Tax Code. The law takes effect January 1, 2026, and applies to tax years beginning after that date.