A. Section 23.23 of the Texas Property
Tax Code (added by SB 841, 75th Tex. Leg., 1997, eff. January
1, 1998) establishes limitations on appraised value of residence
homestead as follows:
(a) The appraised value of a residence homestead for a tax year
may not exceed the lesser of:
(1) the market value of the property; or
(2) the sum of:
(A) 10 percent of the appraised value of
the property for the last year in which the property was appraised
for taxation times the number of years since the property was
(B) the appraised value of the property for the last year
in which the property was appraised; 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;
(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.
(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 that is made after the appraisal of the
property for the preceding year and that increases the market
value of the property. The term does not include ordinary maintenance
of an existing structure or the grounds or another feature of