The comptroller serves a critical role in Texas government, overseeing state accounting and revenue functions, certifying the state’s budget, administering numerous tax programs, and providing economic and fiscal analysis that helps inform policymakers and the public.

This research paper examines the circuit breaker limitation on appraised value (appraisal cap) for ad valorem property tax enacted by the Texas Legislature in 2023 as part of SB 2 (88th Leg., 2nd C.S.).

This report provides an in-depth summary of the key tax, school finance, and public education legislation passed—and those that did not pass—during the regular session of the 89th Texas Legislature.

Exempting BPP would also reduce the cost to government and taxpayers associated with administering the property tax. The valuation of BPP by appraisal districts each year requires a substantial amount of resources, and those costs are ultimately born by the taxpayers served by the appraisal district.

John W. Diamond, Edward A. and Hermena Hancock Kelly Senior Fellow in Public Finance, Director, Center for Public Finance, Baker Institute Rice University