TX SB321

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

The appraised value increase limit applies to the sum of 5% of the previous year's appraised value plus the value of any new improvements to the property

Takes effect January 1, 2026, contingent upon voter approval of a related constitutional amendment proposed by the 89th Legislature

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

If the constitutional amendment is not approved by voters, the bill has no effect