By: Cook H.B. No. 102
A BILL TO BE ENTITLED
AN ACT
relating to a restriction on the authority of an appraisal district
to increase the appraised value of a residence homestead for ad
valorem tax purposes for the tax year following a tax 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 Subsections (e-1) and (e-2) to read as
follows:
(e) Notwithstanding any provision of this subchapter to the
contrary, if the appraised value of property other than a residence
homestead in a tax year is lowered under Subtitle F, the appraised
value of the property 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 any provision of this subchapter or
Section 23.23 to the contrary, if the appraised value of a residence
homestead 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. If the appraised value of a residence
homestead in a tax year is lowered under the circumstances
described by this subsection, the chief appraiser may not increase
the appraised value of the property in the following tax year to an
amount that exceeds the lesser of:
(1) the market value of the property for the tax year;
or
(2) the sum of:
(A) the appraised value of the property for the
tax year in which the value is lowered; and
(B) the market value of all new improvements to
the property.
(e-2) The limitation on an increase in the appraised value
of a residence homestead prescribed by Subsection (e-1) of this
section expires if the limitation on appraised value under Section
23.23 applicable to the property when the limitation prescribed by
Subsection (e-1) took effect expires.
SECTION 2. The changes in law made by this Act apply 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.