HB 963 modifies the appraisal process for residence homesteads, establishing that the market value or purchase price (for new homeowners) serves as the appraised value for tax purposes in the first year of ownership. Subsequent increases in appraised value are tied to inflation rates as determined by the state comptroller. It also introduces measures for confidentiality of application information and specifies cases where appraisal limits do not apply. The law depends on the approval of a constitutional amendment and, if approved, takes effect on January 1, 2026​.