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HB 1898

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

89th Legislature (2025) Introduced by A.J. Louderback

HB 1898 caps annual appraised value increases for residential property tax purposes, limiting homeowner tax bill growth but potentially reducing local government revenues.

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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Bill Summary · HB 1898

Legislative bill overview

HB 1898 proposes to cap how much the appraised value of residential real property can increase annually for property tax purposes in Texas. The bill would limit year-to-year appraisal increases, potentially protecting homeowners from sharp jumps in their property tax bills despite market volatility. This appears designed to provide tax stability for property owners in a state experiencing significant real estate appreciation.

Why is this important

Property tax bills directly correlate with appraised home values, and rapid appreciation in hot real estate markets can dramatically increase taxes even when homeowners haven't made improvements. Texas has experienced substantial population growth and property value increases in recent years, making this issue relevant to millions of homeowners concerned about affordability and tax burden. The outcome affects local government revenues that fund schools, infrastructure, and services that depend on property tax income.

Potential points of contention

  • Revenue impact on local government: Capped appraisals could significantly reduce school district, county, and municipal funding, potentially requiring service cuts or alternative revenue sources
  • Fairness and market distortion: Property value caps may create inequities where similar homes pay vastly different taxes based on purchase timing, and may discourage property improvements
  • Defining the cap level: The specific percentage limit matters enormously—too restrictive harms public services, too generous provides minimal relief for homeowners

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

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