By: Barry H.B. No. 1622
A BILL TO BE ENTITLED
AN ACT
relating to making permanent the limitation on increases in the
appraised value of certain real property for ad valorem tax
purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 25.19(o), Tax Code, is amended to read as
follows:
(o) A notice required under Subsection (a) or (g) to be
delivered to the owner of real property other than a single-family
residence that qualifies for an exemption under Section 11.13 must
include the following statement: "Under Section 23.231, Tax Code,
[for the 2024, 2025, and 2026 tax years,] the appraised value of
real property other than a residence homestead for ad valorem tax
purposes may not be increased by more than 20 percent each year,
with certain exceptions." [The circuit breaker limitation provided
under Section 23.231, Tax Code, expires December 31, 2026. Unless
this expiration date is extended by the Texas Legislature,
beginning in the 2027 tax year, the circuit breaker limitation
provided under Section 23.231, Tax Code, will no longer be in effect
and may result in an increase in ad valorem taxes imposed on real
property previously subject to the limitation." This subsection
expires December 31, 2027.]
SECTION 2. The following provisions are repealed:
(1) Section 23.231(k), Tax Code;
(2) Section 4.02, Chapter 1 (S.B. 2), Acts of the 88th
Legislature, 2nd Called Session, 2023, which amended Section
1.12(d), Tax Code, as effective January 1, 2027;
(3) Section 4.05, Chapter 1 (S.B. 2), Acts of the 88th
Legislature, 2nd Called Session, 2023, which amended Sections
25.19(b) and (g), Tax Code, as effective January 1, 2027;
(4) Section 4.08, Chapter 1 (S.B. 2), Acts of the 88th
Legislature, 2nd Called Session, 2023, which amended Section
41.41(a), Tax Code, as effective January 1, 2027;
(5) Section 4.10, Chapter 1 (S.B. 2), Acts of the 88th
Legislature, 2nd Called Session, 2023, which amended Section
42.26(d), Tax Code, as effective January 1, 2027; and
(6) Section 4.12, Chapter 1 (S.B. 2), Acts of the 88th
Legislature, 2nd Called Session, 2023, which amended Sections
403.302(d) and (i), Government Code, as effective January 1, 2027.
SECTION 3. This Act applies only to the appraisal of
property for ad valorem tax purposes for a tax year that begins on
or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, to authorize the legislature to make
permanent the limit on the maximum appraised value of real property
other than a residence homestead for ad valorem tax purposes is
approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.