TX HB375

Expands the annual property tax appraisal cap from residence homesteads only to all real property in Texas, limiting annual appraised value increases to 3.5% (reduced from the current 10% cap for homesteads)

The appraisal limitation takes effect on January 1 of the tax year following the first year the owner owns the property, and expires when the owner sells or transfers the property

For non-homestead property owned by multiple persons, the limitation expires when at least a 50% ownership interest is sold or transferred

Property acquired before the 2025 tax year (except existing homesteads) is treated as if acquired on January 1, 2025 for purposes of applying the new limitation

Takes effect January 1, 2026, contingent on voter approval of a corresponding constitutional amendment authorizing the legislature to limit appraised value increases to 103.5% or more of the prior year's value