2025S0074-1 02/05/25
By: Sparks S.B. No. 1201
A BILL TO BE ENTITLED
AN ACT
relating to adjustments in the appraised value of a residence
homestead.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.23(a), Tax Code, is amended to read as
follows:
(a) Notwithstanding the requirements of Section 25.18 and
regardless of whether the appraisal office has appraised the
property and determined the market value of the property for the tax
year, an appraisal office may adjust [increase] the appraised value
of a residence homestead for a tax year to an amount not to exceed
the lesser of:
(1) the market value of the property for the most
recent tax year that the market value was determined by the
appraisal office; [or]
(2) if the market value of the property has increased
from the most recent tax year, the sum of:
(A) 3 [10] percent of the appraised value of the
property for the preceding tax year;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property; or
(3) if the market value of the property has decreased
from the most recent tax year, the sum of:
(A) the appraised value of the property for the
preceding tax year minus the percentage of the appraised value of
the property proportionate to the percentage of the decreased
market value; and
(B) the market value of all new improvements to
the property.
SECTION 2. This Act takes effect September 1, 2025.