Texas Statutes
Subchapter B. Special Appraisal Provisions
Section 23.23. Limitation on Appraised Value of Residence Homestead

Sec. 23.23. LIMITATION ON APPRAISED VALUE OF RESIDENCE HOMESTEAD. (a) Notwithstanding the requirements of Section 25.18 and regardless of whether the appraisal office has appraised the property and determined the market value of the property for the tax year, an appraisal office may increase the appraised value of a residence homestead for a tax year to an amount not to exceed the lesser of:
(1) the market value of the property for the most recent tax year that the market value was determined by the appraisal office; or
(2) the sum of:
(A) 10 percent of the appraised value of the property for the preceding tax year;
(B) the appraised value of the property for the preceding tax year; and
(C) the market value of all new improvements to the property.
(b) When appraising a residence homestead, the chief appraiser shall:
(1) appraise the property at its market value; and
(2) include in the appraisal records both the market value of the property and the amount computed under Subsection (a)(2).
(c) The limitation provided by Subsection (a) takes effect as to a residence homestead on January 1 of the tax year following the first tax year the owner qualifies the property for an exemption under Section 11.13. The limitation expires on January 1 of the first tax year that neither the owner of the property when the limitation took effect nor the owner's spouse or surviving spouse qualifies for an exemption under Section 11.13.
(c-1) For purposes of Subsection (c), an owner who receives an exemption as provided by Section 11.42(f) is considered to have qualified the property for the exemption as of January 1 of the tax year following the tax year in which the owner acquired the property.
(d) This section does not apply to property appraised under Subchapter C, D, E, F, or G.
(e) In this section, "new improvement" means an improvement to a residence homestead made after the most recent appraisal of the property that increases the market value of the property and the value of which is not included in the appraised value of the property for the preceding tax year. The term does not include repairs to or ordinary maintenance of an existing structure or the grounds or another feature of the property.
(f) Notwithstanding Subsections (a) and (e) and except as provided by Subdivision (2), an improvement to property that would otherwise constitute a new improvement is not treated as a new improvement if the improvement is a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage. For purposes of appraising the property under Subsection (a) in the tax year in which the structure would have constituted a new improvement:
(1) the appraised value the property would have had in the preceding tax year if the casualty or damage had not occurred is considered to be the appraised value of the property for that year, regardless of whether that appraised value exceeds the actual appraised value of the property for that year as limited by Subsection (a); and
(2) the replacement structure is considered to be a new improvement only if:
(A) the square footage of the replacement structure exceeds that of the replaced structure as that structure existed before the casualty or damage occurred; or
(B) the exterior of the replacement structure is of higher quality construction and composition than that of the replaced structure.
(g) In this subsection, "disaster recovery program" means the disaster recovery program administered by the General Land Office or by a political subdivision of this state that is funded with community development block grant disaster recovery money authorized by federal law. Notwithstanding Subsection (f)(2), and only to the extent necessary to satisfy the requirements of the disaster recovery program, a replacement structure described by that subdivision is not considered to be a new improvement if to satisfy the requirements of the disaster recovery program it was necessary that:
(1) the square footage of the replacement structure exceed that of the replaced structure as that structure existed before the casualty or damage occurred; or
(2) the exterior of the replacement structure be of higher quality construction and composition than that of the replaced structure.
Added by Acts 1997, 75th Leg., ch. 1039, Sec. 47, eff. Jan. 1, 1998. Amended by Acts 2003, 78th Leg., ch. 1173, Sec. 9, eff. Jan. 1, 2004.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1355 (H.B. 438), Sec. 1, eff. January 1, 2008.
Acts 2009, 81st Leg., R.S., Ch. 359 (H.B. 1257), Sec. 1(d), eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1417 (H.B. 770), Sec. 8, eff. January 1, 2010.
Acts 2013, 83rd Leg., R.S., Ch. 1259 (H.B. 585), Sec. 15, eff. January 1, 2014.
Acts 2019, 86th Leg., R.S., Ch. 24 (S.B. 812), Sec. 1, eff. May 7, 2019.
Acts 2021, 87th Leg., 2nd C.S., Ch. 12 (S.B. 8), Sec. 3, eff. January 1, 2022.

Structure Texas Statutes

Texas Statutes

Tax Code

Title 1 - Property Tax Code

Subtitle D - Appraisal and Assessment

Chapter 23 - Appraisal Methods and Procedures

Subchapter B. Special Appraisal Provisions

Section 23.11. Governmental Action That Constitutes Taking

Section 23.12. Inventory

Section 23.121. Dealer's Motor Vehicle Inventory; Value

Section 23.1211. Temporary Production Aircraft; Value

Section 23.122. Prepayment of Taxes by Certain Taxpayers

Section 23.123. Declarations and Statements Confidential

Section 23.124. Dealer's Vessel and Outboard Motor Inventory; Value

Section 23.1241. Dealer's Heavy Equipment Inventory; Value

Section 23.1242. Prepayment of Taxes by Heavy Equipment Dealers

Section 23.1243. Refund of Prepayment of Taxes on Fleet Transaction

Section 23.125. Prepayment of Taxes by Certain Taxpayers

Section 23.126. Declarations and Statements Confidential

Section 23.127. Retail Manufactured Housing Inventory; Value

Section 23.128. Prepayment of Taxes by Manufactured Housing Retailers

Section 23.129. Waiver of Certain Penalties

Section 23.13. Taxable Leaseholds

Section 23.135. License to Occupy Dwelling Unit in Tax-Exempt Retirement Community

Section 23.14. Appraisal of Property Subject to Environmental Response Requirement

Section 23.15. Intangibles of an Insurance Company

Section 23.16. Intangibles of a Savings and Loan Association

Section 23.17. Mineral Interest Not Being Produced

Section 23.175. Oil or Gas Interest

Section 23.18. Property Owned by a Nonprofit Homeowners' Organization for the Benefit of Its Members

Section 23.19. Property Occupied by Stockholders of Corporation Incorporated Under Cooperative Association Act

Section 23.20. Waiver of Special Appraisal

Section 23.21. Property Used to Provide Affordable Housing

Section 23.215. Appraisal of Certain Nonexempt Property Used for Low-Income or Moderate-Income Housing

Section 23.22. Land Use of Which Is Restricted by Governmental Entity

Section 23.23. Limitation on Appraised Value of Residence Homestead

Section 23.24. Furniture, Fixtures, and Equipment

Section 23.25. Appraisal of Land Used for Single-Family Residential Purposes That Is Contiguous to Agricultural or Open-Space Land With Common Ownership

Section 23.26. Solar Energy Property