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Bill

HB 442

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

89th Legislature (2025) Introduced by Cecil Bell

Limits annual appraised value increases for residential homesteads to reduce property tax bills for homeowners facing rapid home value appreciation.

Referred to s/c on Property Tax Appraisals by Speaker
#propertyinterests--homestead(i0616) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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WeVote Research Nonpartisan
Bill Summary · HB 442

Legislative bill overview

HB 442 would modify Texas property tax law by placing new limitations on how much the appraised value of a primary residence can increase annually for property tax purposes. The bill specifically addresses the "residence homestead" exemption, which already provides some tax relief for owner-occupied homes. The exact parameters of the limitation are not specified in the available information, but the bill targets the appraisal growth component of ad valorem (property-based) taxation.

Why is this important

Property tax appraisals directly determine what homeowners pay in taxes each year. In Texas markets experiencing rapid appreciation, appraisal increases can significantly raise tax bills even without rate changes, creating affordability challenges for long-term residents on fixed incomes. This bill seeks to address that issue by capping annual appraisal growth, which could provide tax relief but may also affect school funding, county services, and local government budgets that depend on property tax revenue.

Potential points of contention

  • Revenue impact: Capping appraisal increases reduces tax revenue for schools, counties, and municipalities, potentially requiring service cuts or alternative funding sources
  • Market fairness: Different homeowners would face different effective tax rates based on purchase dates, raising equity questions between newer and longtime residents
  • Implementation complexity: Determining appropriate caps and managing administrative systems to track differential appraisal limits adds bureaucratic overhead

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

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