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

SB 477 amends Texas property tax law to limit annual increases in the appraised value of a primary residence homestead (a home that qualifies for the homestead exemption) for property tax purposes. The bill caps annual increases at 10% of the prior year's appraised value plus that value, or the market value from the first year the homestead exemption was claimed - whichever is lower. New homeowners who purchased their home as a bona fide purchaser may have their property's appraised value set to the purchase price. Homeowners must apply with their local appraisal district to qualify for this limitation, which directly affects Texas residents claiming the homestead exemption.