TX HB273

Caps annual appraised value increases at 10% for commercial real property with a market value of $10 million or less, plus the value of any new improvements made to the property

Defines "commercial real property" as real property held or used for the production of income, excluding residence homesteads and property appraised under special agricultural or other subchapters

Limitation takes effect January 1 of the tax year following the owner's first year of ownership, and expires when ownership changes or the property no longer qualifies as commercial real property

Property owners who acquired commercial real property before 2025 are treated as having acquired it on January 1, 2025, for purposes of the limitation

Replacement structures for buildings destroyed by casualty, wind, or water damage are not counted as "new improvements" unless they exceed the original square footage or have higher quality exterior construction

Takes effect January 1, 2026, contingent on voter approval of a related constitutional amendment proposed by the 89th Legislature