| 1 | 1 | | By: Cook H.B. No. 102 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to a restriction on the authority of an appraisal district |
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| 7 | 7 | | to increase the appraised value of a residence homestead for ad |
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| 8 | 8 | | valorem tax purposes for the tax year following a tax year in which |
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| 9 | 9 | | the appraised value of the property is lowered as a result of an |
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| 10 | 10 | | agreement, protest, or appeal. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 23.01, Tax Code, is amended by amending |
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| 13 | 13 | | Subsection (e) and adding Subsections (e-1) and (e-2) to read as |
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| 14 | 14 | | follows: |
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| 15 | 15 | | (e) Notwithstanding any provision of this subchapter to the |
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| 16 | 16 | | contrary, if the appraised value of property other than a residence |
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| 17 | 17 | | homestead in a tax year is lowered under Subtitle F, the appraised |
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| 18 | 18 | | value of the property as finally determined under that subtitle is |
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| 19 | 19 | | considered to be the appraised value of the property for that tax |
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| 20 | 20 | | year. In the next tax year in which the property is appraised, the |
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| 21 | 21 | | chief appraiser may not increase the appraised value of the |
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| 22 | 22 | | property unless the increase by the chief appraiser is reasonably |
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| 23 | 23 | | supported by clear and convincing evidence when all of the reliable |
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| 24 | 24 | | and probative evidence in the record is considered as a whole. If |
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| 25 | 25 | | the appraised value is finally determined in a protest under |
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| 26 | 26 | | Section 41.41(a)(2) or an appeal under Section 42.26, the chief |
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| 27 | 27 | | appraiser may satisfy the requirement to reasonably support by |
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| 28 | 28 | | clear and convincing evidence an increase in the appraised value of |
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| 29 | 29 | | the property in the next tax year in which the property is appraised |
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| 30 | 30 | | by presenting evidence showing that the inequality in the appraisal |
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| 31 | 31 | | of property has been corrected with regard to the properties that |
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| 32 | 32 | | were considered in determining the value of the subject property. |
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| 33 | 33 | | The burden of proof is on the chief appraiser to support an increase |
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| 34 | 34 | | in the appraised value of property under the circumstances |
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| 35 | 35 | | described by this subsection. |
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| 36 | 36 | | (e-1) Notwithstanding any provision of this subchapter or |
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| 37 | 37 | | Section 23.23 to the contrary, if the appraised value of a residence |
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| 38 | 38 | | homestead in a tax year is lowered as a result of an agreement |
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| 39 | 39 | | between the property owner and the appraisal district or as a result |
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| 40 | 40 | | of a protest or appeal under Subtitle F, the appraised value of the |
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| 41 | 41 | | property as specified in the agreement or as finally determined |
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| 42 | 42 | | under that subtitle is considered to be the appraised value of the |
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| 43 | 43 | | property for that tax year. If the appraised value of a residence |
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| 44 | 44 | | homestead in a tax year is lowered under the circumstances |
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| 45 | 45 | | described by this subsection, the chief appraiser may not increase |
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| 46 | 46 | | the appraised value of the property in the following tax year to an |
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| 47 | 47 | | amount that exceeds the lesser of: |
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| 48 | 48 | | (1) the market value of the property for the tax year; |
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| 49 | 49 | | or |
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| 50 | 50 | | (2) the sum of: |
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| 51 | 51 | | (A) the appraised value of the property for the |
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| 52 | 52 | | tax year in which the value is lowered; and |
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| 53 | 53 | | (B) the market value of all new improvements to |
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| 54 | 54 | | the property. |
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| 55 | 55 | | (e-2) The limitation on an increase in the appraised value |
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| 56 | 56 | | of a residence homestead prescribed by Subsection (e-1) of this |
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| 57 | 57 | | section expires if the limitation on appraised value under Section |
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| 58 | 58 | | 23.23 applicable to the property when the limitation prescribed by |
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| 59 | 59 | | Subsection (e-1) took effect expires. |
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| 60 | 60 | | SECTION 2. The changes in law made by this Act apply only to |
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| 61 | 61 | | the appraisal of property for a tax year that begins on or after the |
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| 62 | 62 | | effective date of this Act. |
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| 63 | 63 | | SECTION 3. This Act takes effect January 1, 2022. |
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