TX
Texas House Bill HB3823

Texas 2025 - 89th Regular

Texas House Bill HB3823

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the determination of the appraised value of a residence homestead for ad valorem tax purposes.

Impact

If enacted, HB 3823 could result in significant changes to local property tax policies and practices. The proposed amendment would allow local governments to implement a cap on the appraised value of homesteads, which might give homeowners more stability regarding their property tax assessments. This could potentially prevent sudden spikes in property taxes that can occur as a result of rapid increases in property market values. The bill emphasizes a balance between state regulations and local control over property assessments, allowing residents to influence taxation through elections.

Summary

House Bill 3823 aims to amend how the appraised value of residence homesteads is determined for ad valorem tax purposes. The bill modifies existing law concerning annual tax appraisals, specifically the limits on how much a residence’s appraised value can increase in a given year. It introduces provisions for electing a percentage limitation on the maximum appraised value by local voters, allowing counties to establish their own cap on property taxes related to homesteads, subject to certain criteria.

Contention

Notable points of contention may arise surrounding the provisions for voter elections to set appraised value limits. Critics could argue that this approach might lead to inconsistencies and inequalities in tax assessments across different counties. Additionally, there are concerns that frequent local voting on tax limits may politicize what is typically a technical assessment process, potentially undermining the objectiveness of residential tax appraisals. As a result, while some view it as empowering local governance, others fear it may create disparities in tax burdens among residents.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 23. Appraisal Methods And Procedures
    • Section: 23
  • Chapter 25. Local Appraisal
    • Section: 18
  • Chapter 42. Judicial Review
    • Section: 26

Companion Bills

TX HJR167

Enabling for Proposing a constitutional amendment authorizing the legislature to limit the maximum appraised value of a residence homestead for ad valorem tax purposes to the lesser of the most recent market value of the residence homestead or 115 percent, or a greater percentage, of the appraised value of the residence homestead for the last year in which the residence homestead was appraised for ad valorem tax purposes, to limit the frequency of the reappraisal of a residence homestead for those purposes, and to permit the voters of a county to establish a higher limitation on the maximum appraised value of a residence homestead for those purposes.

Previously Filed As

TX HB794

Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.

TX HB32

Relating to limitations on increases in the appraised value for ad valorem tax purposes of residence homesteads and single-family residences other than residence homesteads.

TX SB178

Relating to a limitation on increases in the appraised value of real property other than a residence homestead for ad valorem tax purposes.

TX SB1019

Relating to a limitation on increases in the appraised value of real property other than a residence homestead for ad valorem tax purposes.

TX HB295

Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.

TX SB1065

Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.

TX SB547

Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.

TX HB3564

Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.

TX HB4261

Relating to a limitation on increases in the appraised value for ad valorem tax purposes of the residence homesteads of military veterans, individuals who are disabled or 65 years of age or older, and their surviving spouses.

TX HB1189

Relating to limitations on the appraised value of certain real property in specified areas for ad valorem tax purposes.

Similar Bills

TX HB157

Relating to the ad valorem taxation of residential real property.

TX HB132

Relating to the ad valorem taxation of residential real property.

TX HB1566

Relating to the ad valorem taxation of residential real property.

TX HB982

Relating to the authority of a taxing unit other than a school district, county, municipality, or junior college district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of certain low-income individuals who are disabled or elderly and their surviving spouses.

TX HB3757

Relating to the authority of a taxing unit other than a school district, county, municipality, or junior college district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses and to the information required to be included in a tax bill.

TX HB273

Relating to the authority of a taxing unit other than a school district, county, municipality, or junior college district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of certain low-income individuals who are disabled or elderly and their surviving spouses.

TX HB1648

Relating to the establishment of a limitation on the total amount of ad valorem taxes that a county may impose on the residence homesteads of individuals who are disabled or elderly and their surviving spouses.

TX HB4261

Relating to a limitation on increases in the appraised value for ad valorem tax purposes of the residence homesteads of military veterans, individuals who are disabled or 65 years of age or older, and their surviving spouses.