Denton Central Appraisal District

In 1997, the Texas Legislator, with the approval of the voting population, enacted Section 23.23 of the Texas Property Tax Code.

Section 23.23 provides that the appraised value of a residence homestead for a tax year will be limited to the lesser of either its market value or the sum of the market value of any new improvements and 110 percent of the appraised value for the preceding year. If an appraisal district reappraises each year, then each year the property could be subject to the 10 percent limitation. If the district reappraise every 2 years then the increase would be as much as 20 percent, and every 3 years it would be 30 percent. The Denton Central Appraisal District reappraises every year. In an increasing market this procedure can and will compound.

The limitation takes effect the year following the first year that the residential homestead was granted. The limitation expires on January 1^st of the first year that neither the owner of the property when the limitation took effect nor the owner’s spouse or surviving spouse qualifies for the homestead exemption.