WeVote
Log In

Bill

Bill

HB 249

Relating to a limitation on increases in the appraised value of real property for ad valorem tax purposes.

89th Legislature, 2nd Called Session (2025)

Texas HB 249 limits annual increases in property appraisals for tax purposes, reducing property tax growth but potentially cutting local government and school district revenues.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #propertyinterests--realproperty(i0595) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
0
WeVote Research Nonpartisan
Bill Summary · HB 249

Legislative bill overview

HB 249 proposes to limit how much the appraised value of real property can increase annually for property tax purposes in Texas. The bill restricts the growth rate at which county appraisers can raise property valuations year-over-year, effectively capping property tax increases tied to assessment growth. This would modify Texas's current property valuation system, which allows assessments to increase to current market value.

Why is this important

Property tax bills are directly tied to appraised values, so limiting appraisal increases would reduce property tax growth for homeowners and property owners. However, this also affects local government revenues—schools, counties, and municipalities depend on property tax income to fund services. The real-world impact depends heavily on the specific cap percentage chosen and how it interacts with Texas's existing homestead exemption and valuation cap systems.

Potential points of contention

  • Revenue impact on schools and local governments: Capping appraisal growth could significantly reduce funding available to school districts and municipalities, potentially requiring service cuts or alternative revenue sources
  • Market distortion and inequity: A hard cap on appraisals could create situations where similar properties have vastly different assessed values based on purchase timing, disadvantaging newer homeowners
  • Implementation complexity: The bill's specific limitations aren't detailed in the summary, leaving questions about exemptions, phase-in periods, and interaction with existing property tax law

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.