Relating to a limitation on increases in the appraised value of certain commercial real property for ad valorem tax purposes.

HB 169 limits how much the appraised value of certain commercial properties can increase for property tax purposes. It applies to commercial real property (used for income generation) valued at $10 million or less, excluding properties under specific tax subchapters. The bill caps annual appraised value increases at 20% of the prior year’s appraised value plus the prior year’s value plus the market value of all new improvements (excluding routine repairs). This limitation takes effect January 1, 2027, for properties meeting the criteria. The bill directly affects small commercial property owners by capping their annual tax increases.