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HB 184

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

89th Legislature, 2nd Called Session (2025) Introduced by Cecil Bell

HB 184 caps annual property tax appraisal increases on residential real estate to limit homeowner tax bill growth in appreciating markets.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #propertyinterests--realproperty(i0595) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 184

Legislative bill overview

HB 184 proposes to limit how much the appraised value of residential real property can increase annually for property tax purposes in Texas. The bill restricts year-over-year value increases to a capped percentage, preventing sharp jumps in assessed valuations that directly drive property tax bills upward.

Why is this important

Property tax bills are a major concern for homeowners, particularly in areas experiencing rapid appreciation where assessed values can spike dramatically in single years. This cap would provide predictability in tax obligations and could offer relief to property owners in hot real estate markets, though it may reduce revenue available to local taxing entities like schools and counties that depend on property tax revenue.

Potential points of contention

  • Revenue impact on local services: Schools, counties, and municipalities rely heavily on property tax revenue; limiting growth could reduce funding for public services unless offset by other revenue sources or spending cuts
  • Market timing disparities: A cap may benefit long-term owners while disadvantaging recent purchasers who buy at peak prices, creating inequitable tax treatment based on purchase timing
  • Interaction with existing homestead exemptions: Texas already has homestead property tax exemptions; unclear how this cap coordinates with existing protections or whether it duplicates/conflicts with current law

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

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