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Texas Bill HB 240 Caps Annual Real Property Appraised Value Increases at Five Percent

Original title: Relating to a limitation on increases in the appraised value of real property for ad valorem tax purposes.

Last action · July 31, 2025: FiledSponsor: Cecil Bell

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

House Bill 240 limits annual appraisal value increases for real property to five percent starting January 1, 2027, conditioned upon voter approval of a constitutional amendment. The measure expands appraisal caps beyond residence homesteads to cover general real property and manufactured homes meeting homestead standards.

Why it matters

Property owners face modified appraisal increase limits and altered expiration rules upon ownership transfer, directly shifting how local tax appraisal districts calculate taxable values for real estate.

Background
  • Property tax appraisals in Texas are conducted by local appraisal districts governed by the state Tax Code. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

real property owners

Property owners are subject to a five percent cap on annual appraisal value increases and new rules regarding limitation expirations upon property transfer.

Directly affected

appraisal districts

Appraisal districts must calculate market values and appraisal ratios according to the revised Section 23.23 standards.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the new percentage cap on annual real property appraisal increases?
The bill restricts annual appraisal value increases to five percent of the property's for the preceding tax year, plus s.
Does this bill apply immediately?
No, the Act takes effect January 1, 2027, but only if voters approve the constitutional amendment proposed by the 89th Legislature during the 1st Called Session of 2025.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · introduced in the House.

Procedural history

1 action
  1. Jul 31, 2025HouseIntroduced
    Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Expansion of Appraisal Caps

The bill broadens the application of appraisal value limitations from residence homesteads to encompass general real property and qualifying manufactured homes.

Connected Entities

Government Code, Tax Code, Cecil Bell and 1 more
OrganizationGovernment Code“Statutory code amended by Section 5”Map →
OrganizationTax Code“Statutory code amended by the bill”Map →
PersonCecil Bell“Bill author from Montgomery”Map →
OrganizationOccupations Code“Statutory code referenced regarding manufactured homes”Map →

Sources

Open source document

capitol.texas.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 80)
  • Controversy50
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz45
    Current news / social attention level

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