He January 1, 2026 came into force Texas a new tax system that changes the way real estate is located the border with Mexico. The measure results from the approval of the Proposal 17 and its implementing law, which HB 247approved by voters in November 2025.
During the State election on November 4, 2025The citizens of Texas approved a constitutional amendment introduces direct changes to the property tax system on the border strip. The initiative was accompanied by complementary legislation detailing its practical application.
This regulation responds to a recurring situation in border counties: owners whose properties were used to install security infrastructure increasingly faced increases in the assessed value of their properties, resulting in higher tax burdens. He new legal framework tries to avoid this effect.
With HB 247 taking effect on January 1, 2026, the Lone Star State will set rules for how much of a property’s value can be excluded from the ad valorem tax if the increase is related to security measures promoted by the local or federal government.
The central axis of the new law is the creation of a specific tax exemption. According to the official text, there will be authorized owners from 2026 You don’t have to pay taxes about the increase in value of your property This is a direct result of the construction or installation of Border security infrastructure.
In practical terms: The property valuation is divided into two components:
This last component is excluded the tax calculation.
The law makes this clear The exemption does not eliminate the tax on the entire propertybut only with an increase attributable to these specific safety-related improvements.
The advantage is not universally valid throughout Texas. The law sets a precise geographical criterion: only properties located in one of these areas the 14 counties that directly border Mexico.
These are:
Outside these jurisdictions the exemption is not applicable.
In addition to the location, The infrastructure must have been installed under a formal agreement with the State of Texas or the federal governmentor is located on land subject to an easement registered in favor of one of these entities.
The definition contained in HB 247 is broad and covers various types of works and devices. Border security infrastructure refers to all those improvements aimed at this Monitoring, controlling or preventing the movement of persons or objects outside official ports of entry.
This category includes:
The law does not distinguish between visible or underground infrastructure, provided it is attached to the ground and fulfills a function related to border security.
To claim the tax advantage, Property owners must contact the chief appraiser of the relevant appraisal district.
The regulations stipulate that the exemption will remain in force once approved without having to renew it year after yearas long as the conditions of participation do not change.
The privilege expires automatically if the security infrastructure is removed, no longer fulfills its function or if the property changes hands. In these cases, the full value of the property is subject to regular appraisal again.
The aim of this mechanism is to simplify the administration of the benefit and reduce bureaucratic burdens for both property owners and appraisal districts.
About The Author
