TX HB5210

Property owners may prepay ad valorem taxes on real property by submitting an enrollment form and payment to the comptroller, who will issue a certificate of prepayment granting a permanent tax exemption on that property

The prepayment amount equals the property's appraised value multiplied by an ad valorem tax prepayment rate determined annually by the comptroller and published in the Texas Register

The exemption does not expire even if the property is sold or ownership changes, but does not cover new improvements unless the owner pays a supplemental prepayment amount for the increased value

Prepayments are deposited into a prepaid property tax trust fund, from which taxing units may request annual disbursements equal to the exempt property value multiplied by their no-new-revenue tax rate

The act takes effect January 1, 2026, contingent on voter approval of a related constitutional amendment establishing the prepaid property tax trust fund