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.

HJR 39 proposes a constitutional amendment to change how Texas homestead property taxes are calculated. It would allow the legislature to set the first tax year's value for a homestead at either the property's market value or its purchase price (if bought), rather than the standard appraisal. For subsequent years, it would limit annual tax increases to only the value of new improvements made to the property, instead of full market value changes. This would directly affect homeowners who qualify for the homestead exemption, potentially reducing their tax burden in the first year and capping future increases.