| 1 | 1 | | 2025S0074-1 02/05/25 |
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| 2 | 2 | | By: Hickland H.B. No. 4191 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to adjustments in the appraised value of a residence |
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| 10 | 10 | | homestead. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 23.23(a), Tax Code, is amended to read as |
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| 13 | 13 | | follows: |
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| 14 | 14 | | (a) Notwithstanding the requirements of Section 25.18 and |
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| 15 | 15 | | regardless of whether the appraisal office has appraised the |
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| 16 | 16 | | property and determined the market value of the property for the tax |
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| 17 | 17 | | year, an appraisal office may adjust [increase] the appraised value |
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| 18 | 18 | | of a residence homestead for a tax year to an amount not to exceed |
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| 19 | 19 | | the lesser of: |
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| 20 | 20 | | (1) the market value of the property for the most |
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| 21 | 21 | | recent tax year that the market value was determined by the |
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| 22 | 22 | | appraisal office; [or] |
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| 23 | 23 | | (2) if the market value of the property has increased |
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| 24 | 24 | | from the most recent tax year, the sum of: |
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| 25 | 25 | | (A) 3 [10] percent of the appraised value of the |
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| 26 | 26 | | property for the preceding tax year; |
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| 27 | 27 | | (B) the appraised value of the property for the |
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| 28 | 28 | | preceding tax year; and |
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| 29 | 29 | | (C) the market value of all new improvements to |
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| 30 | 30 | | the property; or |
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| 31 | 31 | | (3) if the market value of the property has decreased |
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| 32 | 32 | | from the most recent tax year, the sum of: |
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| 33 | 33 | | (A) the appraised value of the property for the |
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| 34 | 34 | | preceding tax year minus the percentage of the appraised value of |
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| 35 | 35 | | the property proportionate to the percentage of the decreased |
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| 36 | 36 | | market value; and |
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| 37 | 37 | | (B) the market value of all new improvements to |
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| 38 | 38 | | the property. |
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| 39 | 39 | | SECTION 2. This Act takes effect September 1, 2025. |
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