HB 219 would lower the annual cap on how much the appraised value of a residence homestead can increase for ad valorem tax purposes. Under current law, a homestead’s appraised value generally may not rise by more than 10 percent per year, excluding the value of new improvements. This bill changes that limit to 2 percent, while still allowing the appraisal district to add the market value of any new improvements to the property.
The bill applies only to residence homesteads and only to tax years beginning on or after its effective date. It is also contingent on voter approval of a related constitutional amendment authorizing the Legislature to set a lower maximum appraised-value limit for homesteads. If that amendment is not approved, HB 219 would not take effect.
Impact
HB 219 would amend Section 23.23 of the Texas Tax Code to substantially reduce the annual appraisal-growth cap for residence homesteads from 10 percent to 2 percent. This would limit how quickly taxable appraised values can rise for homeowners, potentially slowing increases in property tax bills tied to appraisal growth, while preserving the ability of appraisal districts to account for new improvements. The bill would affect appraisal offices, local taxing units, and homeowners with residence homestead exemptions, but only if the accompanying constitutional amendment is approved and the act becomes effective January 1, 2027.
Sentiment
Based on the bill text and the absence of recorded committee discussion or votes in the provided materials, the apparent sentiment is supportive of property tax relief for homeowners. The bill’s structure suggests an intent to provide stronger protection against rapid appraisal increases on homesteads, which is typically viewed favorably by homeowner and taxpayer advocates. No contrary positions are documented in the supplied record.
Contention
The main point of contention is likely the tradeoff between homeowner tax relief and local government revenue stability. Supporters would favor the lower 2 percent cap as a stronger limit on appraisal growth for homestead owners, while local taxing authorities, school districts, and appraisal-related stakeholders may be concerned that the tighter cap could constrain the tax base and shift pressure elsewhere. A second issue is the bill’s dependency on a constitutional amendment, meaning its practical effect hinges on voter approval rather than legislation alone.