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Bill

HB 375

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

89th Legislature (2025) Introduced by Lacey Hull and 4 co-sponsors

HB 375 caps annual property tax appraisal increases in Texas, potentially reducing homeowner tax bills but risking local government revenue shortfalls.

Referred to s/c on Property Tax Appraisals by Speaker
#comptrollerofpublicaccounts(v2608) #propertyinterests--realproperty(i0595) #taxation--property-appealoftaxdecisions(i0796) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 375

Legislative bill overview

HB 375 proposes to cap the annual increase in appraised property values for property tax purposes in Texas. The bill would limit how much a property's assessed value can rise year-over-year, potentially reducing the rate at which homeowners' property tax bills increase even as market values climb.

Why is this important

Property tax bills directly affect homeowners' affordability and housing costs. In rapidly appreciating real estate markets, property tax assessments can increase significantly, pushing long-term residents out of their homes through rising tax burdens. This bill addresses a growing concern in Texas communities experiencing substantial property value growth.

Potential points of contention

  • Revenue impact on local governments: Cities, counties, and school districts depend on property tax revenue for budgets. Capping appraisal increases could reduce funding for schools, emergency services, and infrastructure without offsetting revenue sources.
  • Fairness and burden shifting: Caps may create situations where similar properties pay different tax amounts based on purchase timing, potentially transferring tax obligations to newer homeowners or businesses.
  • Market distortion effects: Artificial constraints on assessed values may discourage property improvements and maintenance, as owners wouldn't see corresponding tax increases for upgrades.

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

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