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

This bill (SB 321) limits how much a primary residence homestead's taxable value can increase each year for property tax purposes in Texas. It restricts annual increases to the lesser of: (1) the most recent appraised market value, or (2) 5% of the previous year's value plus the previous year's value plus the value of new home improvements. It directly affects Texas homeowners with homestead properties who pay property taxes. The bill only takes effect on January 1, 2026, if voters approve a related constitutional amendment in 2025; otherwise, it has no effect.