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

SB 320 would limit annual increases in the taxable value of Texas homeowners' primary residences (homesteads) for property tax purposes. It sets a new cap on how much a home's appraised value can rise each year, capping it at either the previous year's market value or the sum of 5% of last year's value plus last year's value plus new improvements. The bill applies only to tax years beginning January 1, 2026, but only if Texas voters approve a related constitutional amendment in 2025; if not approved, the bill has no effect. This directly affects homeowners with homestead properties by restricting how quickly their property taxes can increase annually.