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Bill

SB 477

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

89th Legislature (2025) Introduced by Mayes Middleton

Texas bill capping annual homestead appraisal increases to reduce property tax burden on homeowners while reducing school and local government revenues.

Referred to Local Government
#propertyinterests--homestead(i0616) #propertyinterests--realproperty(i0595) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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WeVote Research Nonpartisan
Bill Summary · SB 477

Legislative bill overview

SB 477 proposes to limit how much the appraised value of a homeowner's primary residence can increase annually for property tax calculation purposes in Texas. The bill seeks to cap the year-over-year growth in assessed home values, which directly affects the ad valorem (property) taxes homeowners pay. This represents a modification to Texas's current property tax appraisal system.

Why is this important

Property taxes on homes are a major revenue source for schools, local governments, and special districts in Texas. When home values rise rapidly—as they have in recent years in many Texas communities—property tax bills increase significantly even without tax rate changes, putting pressure on homeowners' budgets. This bill attempts to provide tax relief by decoupling appraisal growth from actual market values, though it could reduce funding available to local services and schools.

Potential points of contention

  • Funding impact: Capping appraisal increases reduces property tax revenue for schools, fire departments, and other local services that depend on this funding without requiring corresponding budget cuts or alternative revenue sources
  • Market distortion: Artificially limiting assessed values creates divergence between what homes are actually worth and their taxable value, potentially creating unfair comparisons between similar properties
  • Long-term costs: While providing short-term tax relief, the gap between market values and appraised values would compound over time, creating larger disparities and potential future adjustment pressures

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

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