87R3667 LHC-D
By: Larson H.B. No. 798
A BILL TO BE ENTITLED
AN ACT
relating to the authority of an appraisal district to increase the
appraised value of property for ad valorem tax purposes in the next
tax year in which the property is appraised after a year in which
the appraised value of the property is lowered as a result of an
agreement, protest, or appeal.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.01, Tax Code, is amended by amending
Subsection (e) and adding Subsection (e-1) to read as follows:
(e) Notwithstanding any provision of this subchapter to the
contrary, if the appraised value of property in a tax year is
lowered as a result of an agreement between the property owner and
the appraisal district or as a result of a protest or appeal under
Subtitle F, the appraised value of the property as specified in the
agreement or as finally determined under that subtitle is
considered to be the appraised value of the property for that tax
year. In the next tax year in which the property is appraised, the
chief appraiser may not increase the appraised value of the
property unless the increase by the chief appraiser is reasonably
supported by clear and convincing evidence when all of the reliable
and probative evidence in the record is considered as a whole. If
the appraised value is finally determined in a protest under
Section 41.41(a)(2) or an appeal under Section 42.26, the chief
appraiser may satisfy the requirement to reasonably support by
clear and convincing evidence an increase in the appraised value of
the property in the next tax year in which the property is appraised
by presenting evidence showing that the inequality in the appraisal
of property has been corrected with regard to the properties that
were considered in determining the value of the subject
property. The burden of proof is on the chief appraiser to support
an increase in the appraised value of property under the
circumstances described by this subsection.
(e-1) Notwithstanding Subsection (e) of this section and
Section 23.23, if the appraised value of property in a tax year is
lowered under the circumstances described by Subsection (e), the
chief appraiser may not increase the appraised value of the
property in the next tax year in which the property is appraised by
an amount that exceeds the sum of five percent of the appraised
value of the property in the tax year in which the appraised value
of the property is lowered and the market value of all new
improvements to the property. This subsection does not apply to an
increase in the appraised value of property as a result of:
(1) the property no longer being eligible for
appraisal under Subchapter C, D, E, F, G, or H; or
(2) the expiration of a limitation on appraised value
under Section 23.23(a) applicable to the property.
SECTION 2. This Act applies only to the appraisal of
property for a tax year that begins on or after the effective date
of this Act.
SECTION 3. This Act takes effect January 1, 2022, but only
if the constitutional amendment proposed by the 87th Legislature,
Regular Session, 2021, to authorize the legislature to provide that
if in a tax year the owner of property disputes the appraisal of the
property and the appraised value is lowered as a result, the
appraisal entity may not increase the appraised value of the
property in the next tax year in which the property is appraised by
more than a specified percentage is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.