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Bill

HB 2786

Relating to the frequency with which certain appraisal districts are required to reappraise property for ad valorem tax purposes and to a limitation on the authority of an appraisal district to increase the appraised value of property.

89th Legislature (2025) Introduced by Charlie Geren and 1 co-sponsor

HB 2786 reduces property reappraisal frequency and caps annual value increases in Texas appraisal districts, lowering property tax burdens but reducing government revenues.

Received from the House
#taxation--property-appraisals&appraisaldistricts(i0792)
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Bill Summary · HB 2786

Legislative bill overview

HB 2786 modifies Texas property appraisal requirements by changing how frequently certain appraisal districts must reappraise properties and establishes limitations on how much an appraisal district can increase a property's appraised value in a single year. The bill applies these changes to appraisal districts serving larger counties, potentially affecting millions of Texas property owners and local tax bases.

Why is this important

Property appraisals directly determine ad valorem (property) tax bills for homeowners and businesses. Changes to reappraisal frequency and value increase caps can significantly impact annual tax liability, government revenue, and property owner budgets. This bill represents a substantive shift in how Texas determines property values for taxation purposes, affecting both individual taxpayers and school districts, cities, and counties that depend on property tax revenue.

Potential points of contention

  • Revenue impact: Limiting annual value increases and reducing reappraisal frequency may decrease tax revenues for schools, cities, and counties, potentially requiring service cuts or alternative funding sources
  • Market distortion: Less frequent reappraisals could create situations where appraised values significantly lag actual market values, creating inequities between properties and affecting fairness in tax burden distribution
  • Property tax relief vs. fiscal stability: Homeowners benefit from slower reappraisal cycles and capped increases, but local governments may struggle with reduced predictable revenue, particularly during rapid appreciation periods

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

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