Budget & Taxes (Business Taxes)

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.

HJR 28 proposes a constitutional amendment allowing Texas lawmakers to cap the taxable value of certain commercial properties. It would let the legislature limit a property’s appraised value for property taxes to 120% (or a higher percentage set by law) of its prior year’s value, but only for properties meeting specific definitions and market value thresholds. This cap would apply only to commercial real estate owners who qualify under future laws defining "commercial property" and meeting eligibility rules. The amendment requires voter approval in 2026 and would expire if a property changes ownership or no longer qualifies as commercial.