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

HB 261 limits annual increases in the tax assessment value for commercial properties under $10 million in market value. It restricts how much a property's appraised value can rise each year to either the prior year's market value or a formula (20% of last year's appraised value plus last year's value plus new improvements). This applies to properties held for income production and takes effect January 1, 2027, for tax years following that date. The bill excludes properties appraised under specific subchapters of the tax code.