HB 442 proposes an amendment to Section 23.23(a) of the Tax Code to reduce the cap on annual increases in the appraised value of residence homesteads for ad valorem taxation purposes. The current cap of 10% would be lowered to 5%. This adjustment would apply to the appraisal of residence homesteads beginning with the tax year that starts on or after January 1, 2026. The enactment of this bill is contingent upon voter approval of a constitutional amendment proposed by the 89th Legislature to authorize a lower limit on appraised value increases.