The limitations on increases in the appraised value of certain property for ad valorem tax purposes

Texas House Bill 398 aims to limit how much the appraised value of certain properties can increase each year for property tax purposes. This could potentially stabilize property taxes by preventing large spikes in property valuations annually.

Supporters of HB398 argue that it provides much-needed relief to property owners by capping the rate at which property taxes can increase. This bill is seen as a way to protect homeowners from sudden, unaffordable tax hikes, promoting financial stability and predictability.

Critics of the bill suggest that limiting appraisal increases could reduce revenue for essential public services funded by property taxes, such as schools and infrastructure. They argue that it might disproportionately benefit wealthier property owners while putting a strain on local government budgets.