Relating to the authority of the governing body of a taxing unit to adopt an exemption from ad valorem taxation of a portion, expressed as a dollar amount, of the appraised value of an individual's residence homestead and to the adjustment of the exemption amount in subsequent years to reflect inflation.

HB 3239 allows Texas taxing units (like cities or counties) to set a fixed dollar amount exemption for homeowners' primary residences instead of a percentage-based exemption. For the 2026 tax year, this exemption cannot exceed $100,000, and future amounts will automatically adjust annually using the Consumer Price Index (CPI-U) inflation rate to maintain value. The bill requires the exemption to be adopted by the taxing unit before July 1 each year, with the comptroller publishing the updated maximum amount by March 15. This law only takes effect if a related constitutional amendment passes voter approval in 2025; otherwise, it has no impact.