TX SB477

Freezes the appraised value of a residence homestead at the market value from the first tax year the owner qualified for a homestead exemption under Section 11.13, eliminating the current 10% annual cap on appraisal increases

Sets the appraised value at the actual purchase price for bona fide purchasers who buy property and qualify it for homestead exemption, requiring owners to apply for this limitation and disclose the purchase price

Exempts certain transactions from the purchase price limitation, including court-ordered sales, bankruptcy sales, purchases between co-owners, purchases from close family members (within second degree of lineal consanguinity), and purchases from governmental entities

Preserves the appraised value limitation when property transfers by inheritance or will, as long as the new owner qualifies for a homestead exemption

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