Proposing a constitutional amendment authorizing the legislature to provide that the appraised value of a residence homestead for ad valorem tax purposes for the first tax year that the owner of the property qualifies the property for a residence homestead exemption is the market value of the property and that, if the owner purchased the property, the purchase price of the property is considered to be the market value of the property for that tax year and to limit increases in the appraised value of the homestead for subsequent tax years based on the market value of all new improvements to the property.

This constitutional amendment proposal (SJR 15) would allow Texas lawmakers to establish that the initial property tax value for a homestead exemption is either the market value or the purchase price if the owner bought the property. For subsequent years, it would limit annual tax increases to only the value of new improvements made to the property, not overall market changes. It directly affects Texas homeowners who qualify for the homestead exemption, particularly new homeowners and those who recently purchased their homes. If passed, this would change how property tax assessments are calculated for qualifying residences under Texas law.