Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.

HB 3235 would limit annual increases in the appraised value of Texas homestead properties used for property tax calculations. It caps yearly increases at the lesser of: (1) the property's most recently determined market value, or (2) 10% of last year's appraised value plus last year's value plus new improvements. This directly affects Texas homeowners with primary residences (homesteads) whose property values rise, potentially slowing annual tax bill increases. The bill would take effect January 1, 2026, if enacted.