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

HB 442 limits annual increases in the appraised value of Texas residence homesteads for property tax purposes. It caps yearly increases at either 5% of the prior year's appraised value plus the base value, or the most recent market value determined by the appraisal office - whichever is lower. The bill directly affects Texas homeowners with homestead properties, preventing steep tax hikes on primary residences. It requires voter approval of a constitutional amendment (proposed by the 89th Legislature) to take effect on January 1, 2026, otherwise the bill has no impact.