| 1 | 1 | | 88R4233 DRS-D |
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| 2 | 2 | | By: Raymond H.B. No. 4860 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to ad valorem tax protests and appeals on the ground of the |
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| 8 | 8 | | unequal appraisal of property. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 25.25, Tax Code, is amended by amending |
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| 11 | 11 | | Subsection (d-1) and adding Subsection (d-2) to read as follows: |
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| 12 | 12 | | (d-1) A property owner may file a motion under Subsection |
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| 13 | 13 | | (d) on the ground of unequal appraisal of property. |
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| 14 | 14 | | (d-2) If the appraisal roll is changed under Subsection (d), |
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| 15 | 15 | | the property owner must pay to each affected taxing unit a |
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| 16 | 16 | | late-correction penalty equal to 10 percent of the amount of taxes |
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| 17 | 17 | | as calculated on the basis of the corrected appraised value. |
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| 18 | 18 | | Payment of the late-correction penalty is secured by the lien that |
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| 19 | 19 | | attaches to the property under Section 32.01 and is subject to |
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| 20 | 20 | | enforced collection under Chapter 33. The roll may not be changed |
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| 21 | 21 | | under Subsection (d) if: |
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| 22 | 22 | | (1) the property was the subject of a protest brought |
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| 23 | 23 | | by the property owner under Chapter 41, a hearing on the protest was |
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| 24 | 24 | | conducted in which the property owner offered evidence or argument, |
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| 25 | 25 | | and the appraisal review board made a determination of the protest |
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| 26 | 26 | | on the merits; or |
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| 27 | 27 | | (2) the appraised value of the property was |
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| 28 | 28 | | established as a result of a written agreement between the property |
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| 29 | 29 | | owner or the owner's agent and the appraisal district. |
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| 30 | 30 | | SECTION 2. Section 41.43, Tax Code, is amended by adding |
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| 31 | 31 | | Subsections (e) and (f) to read as follows: |
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| 32 | 32 | | (e) In a protest authorized by Sections 41.41(a)(1) and (2) |
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| 33 | 33 | | in which the property owner submits evidence to support the |
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| 34 | 34 | | property owner's protest on the ground of determination of |
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| 35 | 35 | | appraised value and on the ground of unequal appraisal, the |
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| 36 | 36 | | appraisal review board shall determine: |
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| 37 | 37 | | (1) the value of the property; and |
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| 38 | 38 | | (2) whether the property owner is entitled to relief |
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| 39 | 39 | | on the ground of unequal appraisal under Subsection (b). |
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| 40 | 40 | | (f) If the appraisal review board determines under |
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| 41 | 41 | | Subsection (e) that the value of the property for purposes of the |
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| 42 | 42 | | protest authorized under Section 41.41(a)(1) is different from the |
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| 43 | 43 | | value of the property established to determine whether the property |
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| 44 | 44 | | was appraised equally for purposes of the protest authorized under |
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| 45 | 45 | | Section 41.41(a)(2), the appraisal review board shall order the |
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| 46 | 46 | | property's appraised value changed to the value that results in the |
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| 47 | 47 | | lower appraised value. |
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| 48 | 48 | | SECTION 3. Section 42.26, Tax Code, is amended by adding |
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| 49 | 49 | | Subsection (c-1) and amending Subsection (d) to read as follows: |
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| 50 | 50 | | (c-1) The court may admit evidence of the market value of |
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| 51 | 51 | | the property subject to the suit only for purposes of establishing |
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| 52 | 52 | | the appraisal ratio of the property to determine whether the |
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| 53 | 53 | | property owner is entitled to relief as provided by Subsection (a). |
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| 54 | 54 | | (d) For purposes of this section and subject to Subsection |
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| 55 | 55 | | (c-1), the value of the property subject to the suit and the value |
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| 56 | 56 | | of a comparable property or sample property that is used for |
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| 57 | 57 | | comparison must be the market value determined by the appraisal |
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| 58 | 58 | | district when the property is a residence homestead subject to the |
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| 59 | 59 | | limitation on appraised value imposed by Section 23.23. |
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| 60 | 60 | | SECTION 4. Section 25.25(d-1), Tax Code, as amended by this |
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| 61 | 61 | | Act, applies only to a motion to correct an appraisal roll filed |
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| 62 | 62 | | under Section 25.25, Tax Code, on or after the effective date of |
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| 63 | 63 | | this Act. |
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| 64 | 64 | | SECTION 5. Sections 41.43(e) and (f), Tax Code, as added by |
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| 65 | 65 | | this Act, apply only to a protest under Chapter 41, Tax Code, for |
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| 66 | 66 | | which a notice of protest is filed on or after the effective date of |
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| 67 | 67 | | this Act. |
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| 68 | 68 | | SECTION 6. Section 42.26(c-1), Tax Code, as added by this |
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| 69 | 69 | | Act, applies only to an appeal filed under Chapter 42, Tax Code, on |
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| 70 | 70 | | or after the effective date of this Act. An appeal filed under |
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| 71 | 71 | | Chapter 42, Tax Code, before the effective date of this Act is |
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| 72 | 72 | | governed by the law in effect when the appeal was filed, and the |
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| 73 | 73 | | former law is continued in effect for that purpose. |
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| 74 | 74 | | SECTION 7. This Act takes effect January 1, 2024. |
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