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HB 151

Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem taxation.

89th Legislature, 1st Called Session (2025) Introduced by Mitch Little

HB 151 limits annual property tax assessment increases on primary residences to control homeowner tax bills amid rising property values.

Filed
#propertyinterests--homestead(i0616) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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WeVote Research Nonpartisan
Bill Summary · HB 151

Legislative bill overview

HB 151 proposes to limit how much the appraised value of a homeowner's primary residence can increase annually for property tax purposes in Texas. The bill would cap year-over-year value increases, preventing sharp jumps in assessed property taxes even when market values rise significantly. This builds on Texas's existing homestead exemption protections.

Why is this important

Property tax bills directly affect homeowners' affordability and ability to stay in their homes, particularly in rapidly appreciating markets. Texas has seen significant property value increases in recent years, leading to higher tax bills for homeowners on fixed incomes or in gentrifying neighborhoods. A value cap could provide tax stability but may also affect school funding and local government revenues that depend on property tax collections.

Potential points of contention

  • School and local government funding: Property taxes fund schools and municipal services; capping valuations could reduce available revenue without identifying replacement funding sources
  • Market fairness concerns: Value caps may create disparities where neighbors pay different taxes based on purchase timing, potentially favoring long-term residents over new buyers
  • Implementation complexity: Determining appropriate cap percentages and exemptions requires balancing taxpayer relief against fiscal impacts on public services

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

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