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Bill

HB 490

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

89th Legislature (2025) Introduced by Cecil Bell

HB 490 caps annual property tax assessment increases in Texas, limiting how much appraised values can rise yearly regardless of actual market appreciation.

Referred to s/c on Property Tax Appraisals by Speaker
#housing--manufacturedhousing(i0408) #propertyinterests--homestead(i0616) #propertyinterests--realproperty(i0595) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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WeVote Research Nonpartisan
Bill Summary · HB 490

Legislative bill overview

HB 490 proposes to cap the annual increase in appraised property values used for ad valorem (property) tax calculations in Texas. The bill limits how much a property's assessed value can rise year-over-year for tax purposes, even if market value increases more substantially. This would create a gap between actual market value and the taxable assessed value for many properties.

Why is this important

Property tax bills directly affect homeowners, renters (through passed-on costs), and local government revenues that fund schools, infrastructure, and services. Capping assessment increases could provide tax relief to property owners in appreciating markets but would reduce funding available to local taxing entities, potentially requiring service cuts, higher tax rates on non-capped properties, or other revenue sources to maintain budgets.

Potential points of contention

  • Horizontal equity concerns: Properties with identical market values could be taxed at different rates based on when they were last purchased, creating fairness questions
  • Local revenue impact: Schools, counties, and municipalities depend on property tax revenue; lower collections could force difficult budget decisions or shift tax burdens
  • Implementation complexity: Tracking multiple assessment rates per property and managing the growing gap between market and appraised value creates administrative challenges and potential litigation

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

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