TX HB3235

Modifies the homestead appraisal cap so that the appraised value of a residence homestead must equal (rather than "may not exceed") the lesser of the market value or the capped amount

Maintains the existing 10% annual cap on appraised value increases for residence homesteads, calculated as the prior year's appraised value plus 10% of that value, plus any new improvements

Clarifies that the cap applies regardless of whether the appraisal office has determined the property's market value for the current tax year

Applies only to residence homestead appraisals for tax years beginning on or after the effective date

Takes effect January 1, 2026