TX HB338

Reduces the annual cap on residence homestead appraised value increases from 10% to 5% for property tax purposes

The appraised value cannot exceed the lesser of the property's market value or the sum of 5% of the previous year's appraised value, plus the previous year's appraised value, plus the market value of any new improvements

Applies only to tax years beginning on or after the effective date of the Act

Takes effect January 1, 2026, contingent upon voter approval of a related constitutional amendment proposed by the 89th Legislature authorizing the legislature to set a lower appraisal cap

If the constitutional amendment is not approved by voters, this Act has no effect