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SB 322

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

89th Legislature (2025) Introduced by Lois Kolkhorst

Texas bill caps annual increases in property appraisals for ad valorem taxes, reducing homeowner tax growth but potentially cutting local government revenue for schools and services.

Co-author authorized
#mines&mineralresources(i0536) #propertyinterests--realproperty(i0595) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · SB 322

Legislative bill overview

SB 322 proposes to limit how much the appraised value of certain real property can increase annually for property tax calculation purposes in Texas. The bill restricts the growth rate of assessed property values, which directly affects how much property owners owe in ad valorem (property) taxes each year. This is a tax relief measure targeting homeowners or specific property categories by capping assessment increases.

Why is this important

Property tax bills have risen substantially in many Texas counties due to rapid property value appreciation, straining homeowners and creating affordability challenges. By limiting annual appraised value increases, this bill could reduce tax burden growth, though it may simultaneously reduce revenue available to local governments for schools, services, and infrastructure. The outcome depends entirely on which property types are covered and what cap rate is established.

Potential points of contention

  • Revenue impact on local services: Limiting property tax appraisals reduces funding for schools, roads, emergency services, and other local government functions that depend on property tax revenue
  • Equity concerns: Capping increases may create disparities where similar properties pay different taxes based on purchase timing or location, disadvantaging newer homeowners
  • Scope ambiguity: The bill's reference to "certain real property" leaves unclear which property types qualify, potentially creating complex eligibility disputes and administrative burdens

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

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