Relating to making permanent the limitation on increases in the appraised value of certain real property for ad valorem tax purposes.
If passed, HB234 will affect how properties are appraised for tax purposes starting in the 2027 tax year. By making the appraisal limitation permanent, the bill aims to stabilize tax assessments and potentially protect property owners from sharp increases in property tax dues. The goal of maintaining this limitation could assist in preserving housing affordability and providing predictability in budgeting for homeowners and real estate investors alike.
House Bill 234 aims to make permanent the limitation on increases in the appraised value of certain real property for ad valorem tax purposes. Currently, under the provisions set to expire, properties other than single-family residences may not experience an appraised value increase of more than 20% per year, with specific exceptions provided. This bill seeks to amend the relevant sections of the Tax Code to ensure that this limitation remains in effect beyond its current expiration date, which is provisionally set for December 31, 2026.
The discussion surrounding HB234 encompasses several notable points of contention. Proponents argue that the extension of appraisal limits will offer essential protections to taxpayers amid rising property values and historical trends of increasing property taxes across Texas. Critics, however, may raise concerns about the implications on local government revenues, suggesting that by restricting appraisal increases, local jurisdictions may face challenges in funding essential services that rely on property tax revenues.