TX SB244

Freezes the appraised value of residence homesteads for property tax purposes, limiting future increases to only the value of new improvements added to the property, effectively eliminating the current 10% annual cap in favor of a complete freeze on appreciation

Sets the initial market value for homestead appraisal limitation purposes at the purchase price paid by a bona fide purchaser, or at the 2025 appraised value for existing homeowners who qualified before 2026

Excludes certain property transfers from the purchase price provision, including court-ordered sales, bankruptcy trustee sales, purchases between co-owners, purchases from close family members (spouse or first/second degree relatives), and purchases from governmental entities

Requires homeowners to file a confidential application with the chief appraiser to receive the limitation based on purchase price, with the comptroller prescribing the application form

Prevents the appraisal limitation from expiring when property is transferred through inheritance or under a will, as long as the new owner qualifies for the homestead exemption

Takes effect January 1, 2026, contingent on voter approval of an accompanying constitutional amendment proposed by the 89th Legislature