TX SB320

Reduces the annual appraisal cap on residence homestead property values from 10% to 5% for ad valorem (property) tax purposes

Limits how much an appraisal office can increase a homestead's appraised value each year to the lesser of the market value or 5% plus the prior year's appraised value plus any new improvements

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

Applies only to residence homestead appraisals for tax years beginning on or after the effective date