Proposing a constitutional amendment to authorize the legislature to provide for a reduction of the appraised value of a residence homestead for ad valorem tax purposes for the first tax year in which the owner qualifies the property for a residence homestead exemption based on the amount by which the limitation on increases in the appraised value of a residence homestead reduced the appraised value of the owner's former residence homestead for the last tax year in which the owner qualified the former residence homestead for a residence homestead exemption.

This bill proposes a constitutional amendment to allow Texas lawmakers to create a property tax benefit for homeowners who move. It would let people reduce the taxable value of their *new* home in the first year they qualify for homestead exemption, based on how much their *old* home's value was limited under current rules. Specifically, the reduction would equal the difference between the old home's capped value (due to Texas's existing homestead value cap) and its actual value in the previous tax year. This applies only to the first tax year after moving to a new residence homestead. The amendment requires voter approval in the November 2025 election.