Relating to a limitation on increases in the appraised value of certain commercial real property for ad valorem tax purposes.

HB 260 limits annual increases in the appraised value used for property taxes on certain commercial real estate. It applies to commercial properties (defined as property held for income production) with a market value of $10 million or less, excluding properties covered under specific tax subchapters. The bill caps annual value increases at the lesser of: (1) the prior year's market value, or (2) 10% of the prior year's appraised value plus the prior year's appraised value plus the value of new improvements. This limitation takes effect for tax years beginning January 1, 2027, and requires appraisers to separately record both the market value and the capped value.