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

HB 204 limits annual increases in the appraised value of property for property tax purposes in Texas. For primary homes (residence homesteads), the appraised value cannot rise by more than 2.5% of the previous year's value plus that full previous value plus new improvements, and cannot exceed the market value from the most recent year the property was appraised at market value. For other real property, the cap is 8% of the previous year's value plus the full previous value plus new improvements, with the same market value limit. This bill directly affects Texas homeowners and property owners whose properties are subject to these appraisal rules.