Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a parcel of single-family residential real property for ad valorem tax purposes for the first tax year in which the owner owns the property on January 1 is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the property for subsequent tax years based on the inflation and population growth rates.

This bill proposes a constitutional amendment to allow Texas lawmakers to set the initial property tax value for new single-family home owners at either the market value or purchase price on January 1 of their first ownership year. For subsequent years, tax appraisals would increase only by the combined rate of Texas's inflation and population growth, not by market value changes. It directly affects new single-family homeowners who purchase or acquire property on or before January 1. The rule would expire after five years or upon ownership transfer, with exceptions for inheritances and surviving spouses.