TX HB490

Expands the annual property appraisal cap from residence homesteads only to all real property, limiting yearly appraised value increases to 5% (reduced from the current 10% cap for homesteads) plus the value of any new improvements

The appraisal limitation takes effect on January 1 of the tax year following the first year the owner owns the property and expires when ownership changes

For property owned by multiple persons (other than homesteads), the limitation expires when at least a 50% ownership interest is sold or transferred

Owners who acquired non-homestead real property before 2025 are treated as having acquired the property on January 1, 2025, for purposes of the new limitation

Manufactured homes qualifying as residence homesteads are included in the definition of "real property" eligible for the appraisal cap

Takes effect January 1, 2026, contingent on voter approval of a related constitutional amendment authorizing the legislature to limit appraised value increases to 105% or more of the prior year's value