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A BILL TO BE ENTITLED
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AN ACT
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relating to making permanent the limitation on increases in the |
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appraised value of certain real property for ad valorem tax |
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purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 25.19(o), Tax Code, is amended to read as |
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follows: |
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(o) A notice required under Subsection (a) or (g) to be |
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delivered to the owner of real property other than a single-family |
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residence that qualifies for an exemption under Section 11.13 must |
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include the following statement: "Under Section 23.231, Tax Code, |
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[for the 2024, 2025, and 2026 tax years,] the appraised value of |
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real property other than a residence homestead for ad valorem tax |
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purposes may not be increased by more than 20 percent each year, |
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with certain exceptions." [The circuit breaker limitation provided |
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under Section 23.231, Tax Code, expires December 31, 2026. Unless |
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this expiration date is extended by the Texas Legislature, |
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beginning in the 2027 tax year, the circuit breaker limitation |
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provided under Section 23.231, Tax Code, will no longer be in effect |
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and may result in an increase in ad valorem taxes imposed on real |
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property previously subject to the limitation." This subsection |
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expires December 31, 2027.] |
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SECTION 2. The following provisions are repealed: |
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(1) Section 23.231(k), Tax Code; |
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(2) Section 4.02, Chapter 1 (S.B. 2), Acts of the 88th |
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Legislature, 2nd Called Session, 2023, which amended Section |
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1.12(d), Tax Code, as effective January 1, 2027; |
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(3) Section 4.05, Chapter 1 (S.B. 2), Acts of the 88th |
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Legislature, 2nd Called Session, 2023, which amended Sections |
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25.19(b) and (g), Tax Code, as effective January 1, 2027; |
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(4) Section 4.08, Chapter 1 (S.B. 2), Acts of the 88th |
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Legislature, 2nd Called Session, 2023, which amended Section |
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41.41(a), Tax Code, as effective January 1, 2027; |
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(5) Section 4.10, Chapter 1 (S.B. 2), Acts of the 88th |
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Legislature, 2nd Called Session, 2023, which amended Section |
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42.26(d), Tax Code, as effective January 1, 2027; |
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(6) Section 4.12, Chapter 1 (S.B. 2), Acts of the 88th |
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Legislature, 2nd Called Session, 2023, which amended Sections |
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403.302(d) and (i), Government Code, as effective January 1, 2027; |
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and |
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(7) Section 3, Chapter 467 (H.B. 4809), Acts of the |
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89th Legislature, Regular Session, 2025, which amended Section |
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41.41(a), Tax Code, as effective January 1, 2027. |
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SECTION 3. This Act applies only to the appraisal of |
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property for ad valorem tax purposes for a tax year that begins on |
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or after January 1, 2027. |
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SECTION 4. (a) Except as otherwise provided by Subsections |
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(b) and (c) of this section, this Act takes effect January 1, 2027. |
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(b) Section 2 of this Act takes effect on the date on which |
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the constitutional amendment described by Subsection (c) of this |
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section takes effect. |
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(c) This Act takes effect only if the constitutional |
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amendment proposed by the 89th Legislature, 1st Called Session, |
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2025, to authorize the legislature to make permanent the limit on |
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the maximum appraised value of real property other than a residence |
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homestead for ad valorem tax purposes is approved by the voters. If |
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that amendment is not approved by the voters, this Act has no |
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effect. |