Budget & Taxes (Property Tax) in Texas

in committee · Texas · House Aug 20, 2025

HB 239: Relating to the appraisal for ad valorem tax purposes of land subject to a quarantine established by the Texas Animal Health Commission for ticks or screwworms.

HB 239 modifies Texas property tax rules for land affected by animal health quarantines. It allows landowners to request a reappraisal of their property during active Texas Animal Health Commission quarantines (lasting 90+ days) for ticks or screwworms. The bill caps the reassessed value at half the original appraised value or the current market value, whichever is lower, to account for reduced land usability during the quarantine. This directly affects Texas agricultural landowners whose properties are under such quarantine orders, providing temporary tax relief while the quarantine remains in effect.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

introduced · Texas · House Aug 25, 2025

HB 294: Relating to an exemption from ad valorem taxation of the amount of the appraised value of certain residential real property that arises from the installation in the property of certain energy efficiency-related improvements.

HB 294 creates a property tax exemption for residential homeowners in Texas who install qualifying energy efficiency improvements after January 1, 2027. The exemption applies only to properties built before 2011 and covers the increased tax value resulting from improvements like high-efficiency HVAC systems, insulation, smart thermostats, or solar-ready windows. Homeowners must install these upgrades after 2027 to qualify, and the comptroller will develop guidelines to help local tax officials administer the exemption. This policy directly affects existing residential property owners seeking to reduce long-term tax burdens through energy-efficient home upgrades.

Topics ✓ Budget & Taxes ✓ Energy ✓ Environment

Sub-Topics Audits & Accountability Property Tax Tax Incentives Energy Efficiency Solar

introduced · Texas · House Aug 22, 2025

HJR 37: Proposing a constitutional amendment repealing the provisions that require that land be devoted to agricultural use for a specified period to be eligible for appraisal for ad valorem tax purposes on the basis of its productivity value and that subject land appraised on that basis to an additional tax when the land is diverted to a purpose other than agricultural use or sold.

HJR 37 proposes a constitutional amendment to repeal Texas law requiring land to remain in agricultural use for a specific period to qualify for lower property tax rates based on farming productivity. It would also eliminate the additional tax penalty currently applied if such land is diverted from agriculture or sold. This change would affect Texas landowners who currently use the agricultural appraisal method for property taxes. The repeal would take effect for tax years beginning January 1, 2027, and applies only to land subject to this appraisal method after that date. The amendment must be approved by voters in the May 2, 2026 election.

Topics ✗ Budget & Taxes

Sub-Topics Property Tax

introduced · Texas · House Aug 15, 2025

HB 131: Relating to the repeal of the Dementia Prevention and Research Institute of Texas.

HB 131 repeals the Dementia Prevention and Research Institute of Texas and transfers its funds to the Texas Education Agency. The transferred money would be used to reduce state property tax rates for homeowners. This bill only takes effect if voters approve a related constitutional amendment in 2025; otherwise, it has no legal impact. The legislation directly affects state funding allocations and property tax policy, with no changes to dementia research programs.

Topics ✓ Budget & Taxes ✗ Healthcare

Sub-Topics Property Tax

introduced · Texas · House Aug 19, 2025

HB 260: Relating to a limitation on increases in the appraised value of certain commercial real property for ad valorem tax purposes.

HB 260 limits annual increases in the appraised value used for property taxes on certain commercial real estate. It applies to commercial properties (defined as property held for income production) with a market value of $10 million or less, excluding properties covered under specific tax subchapters. The bill caps annual value increases at the lesser of: (1) the prior year's market value, or (2) 10% of the prior year's appraised value plus the prior year's appraised value plus the value of new improvements. This limitation takes effect for tax years beginning January 1, 2027, and requires appraisers to separately record both the market value and the capped value.

Topics ✗ Budget & Taxes

Sub-Topics Property Tax

in committee · Texas · House Aug 20, 2025

HJR 25: Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation a percentage of the assessed value of property owned by certain disabled veterans.

HJR 25 proposes a constitutional amendment to allow Texas to create property tax exemptions for disabled veterans based on their disability rating. It would authorize exemptions ranging from 20% to 100% of a property's assessed value, depending on the veteran's disability rating (e.g., 10-30% rating = 20% exemption). Special provisions include 80% exemptions for veterans over 65 or with specific disabilities (like limb loss or blindness), and exemptions for surviving spouses/children of disabled veterans or those who died on active duty. The amendment requires voter approval in the November 2025 election. If passed, it would replace current constitutional language governing these exemptions.

Topics ✓ Budget & Taxes ✓ Veterans

Sub-Topics Property Tax

in committee · Texas · House Aug 20, 2025

HB 202: Relating to the exemption from ad valorem taxation of part of the appraised value of the residence homestead of a partially disabled veteran or the surviving spouse of such a veteran based on the disability rating of the veteran.

HB 202 creates a property tax exemption for partially disabled veterans and their surviving spouses in Texas. It allows veterans with a disability rating of 10% to 99% to exempt a percentage of their home’s appraised value equal to their disability rating (e.g., a 40% rating exempts 40% of the tax). Surviving spouses who haven’t remarried and continued living in the veteran’s homestead are eligible for the same exemption amount if the veteran qualified before death. The bill amends the Tax Code to implement this change, requiring documentation for eligibility and transferring the exemption amount if a surviving spouse moves to a new primary residence.

Topics ✓ Budget & Taxes ✓ Veterans

Sub-Topics Property Tax Tax Incentives

in committee · Texas · House Aug 20, 2025

HJR 9: Proposing a constitutional amendment to authorize the legislature to set lower limits on the maximum appraised value of residence homesteads and of real property other than a residence homestead for ad valorem tax purposes and to make permanent the limit on the maximum appraised value of real property other than a residence homestead.

This bill proposes a constitutional amendment to allow the Texas legislature to set lower limits on the appraised value used for property taxes on both primary homes (residence homesteads) and other real property. Currently, homesteads have a 102.5% limit and other property has a 108% limit; this amendment would let the legislature establish lower percentages for both. If approved by voters in 2026, it would also make the 108% limit for non-homestead property permanent. The change would directly affect homeowners and property owners by potentially reducing their taxable value for local property tax calculations.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

introduced · Texas · House Aug 25, 2025

HJR 39: 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.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

introduced · Texas · Senate Aug 28, 2025

SB 58: Relating to the treatment of a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty, a natural disaster, or wind or water damage as a new improvement for ad valorem tax purposes.

SB 58 (Texas) changes how property taxes are calculated for rebuilt structures after disasters. It states that replacing a damaged home or building (due to storms, fires, or natural disasters) does **not** count as a new "improvement" for tax purposes if the replacement matches the original size and exterior materials. However, it would count as a new improvement only if the new structure has more square footage or uses higher-quality exterior materials than the original. The bill also includes an exception if original materials are unavailable, allowing comparable materials without triggering higher taxes. It takes effect for 2026 tax years.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

All budget & taxes bills