By: Bettencourt, et al. S.B. No. 2
(Meyer, Metcalf, Burrows, Raymond, Thierry, et al.)
A BILL TO BE ENTITLED
AN ACT
relating to providing property tax relief through the public school
finance system, exemptions, limitations on appraisals and taxes,
and property tax administration; authorizing the imposition of a
fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. SHORT TITLE
SECTION 1.01. This Act may be cited as the Property Tax
Relief Act.
ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION
SECTION 2.01. Subchapter F, Chapter 48, Education Code, is
amended by adding Sections 48.2555 and 48.283 to read as follows:
Sec. 48.2555. MAXIMUM COMPRESSED TAX RATE FOR 2023-2024
SCHOOL YEAR. (a) Notwithstanding any other provision of this
title or Chapter 26, Tax Code, for the 2023-2024 school year, the
commissioner shall calculate the value of a school district's
maximum compressed tax rate by determining the district's maximum
compressed rate under Section 48.2551 or 48.2552(b), if applicable,
and reducing the tax rate determined under the applicable section
by $0.107.
(b) If a school district's maximum compressed tax rate as
calculated under Subsection (a) would be less than 90 percent of
another school district's maximum compressed tax rate under
Subsection (a), the district's maximum compressed tax rate is the
value at which the district's maximum compressed tax rate would be
equal to 90 percent of the other district's maximum compressed tax
rate.
(c) Notwithstanding any other provision of this title or
Chapter 26, Tax Code, for purposes of determining funding for
school districts for the 2023-2024 school year, a reference in any
of the following provisions of law to a school district's maximum
compressed tax rate or maximum compressed rate as determined under
Section 48.2551 means the maximum compressed tax rate determined
for the district under this section:
(1) Section 13.054(f);
(2) Section 45.003(d);
(3) Section 45.0032(a);
(4) Section 48.051(a);
(5) Sections 48.2553(a) and (e);
(6) Section 48.2556; and
(7) Section 26.08(n), Tax Code.
(d) For purposes of Section 30.003(f-1), a reference in that
section to Section 48.2551 includes this section.
(e) Notwithstanding any other provision of this title, for
purposes of determining a school district's maximum compressed tax
rate under Section 48.2551 for the 2024-2025 school year, the value
of the district's "PYMCR" is the maximum compressed tax rate
determined for the district under this section for the preceding
school year.
(f) This section expires September 1, 2025.
Sec. 48.283. ADDITIONAL STATE AID FOR CERTAIN DISTRICTS
IMPACTED BY COMPRESSION. A school district that received an
adjustment under Section 48.257(b) for the 2022-2023 school year is
entitled to additional state aid for each school year in an amount
equal to the amount of that adjustment for the 2022-2023 school year
less the difference, if the difference is greater than zero,
between:
(1) the amount to which the district is entitled under
this chapter for the current school year; and
(2) the amount to which the district would be entitled
under this chapter for the current school year if the district's
maximum compressed tax rate had not been reduced under Section
48.2555, as added by S.B. 2, Acts of the 88th Legislature, 2nd
Called Session, 2023.
ARTICLE 3. SCHOOL DISTRICT RESIDENCE HOMESTEAD EXEMPTION
SECTION 3.01. Section 11.13, Tax Code, is amended by
amending Subsection (b) and adding Subsection (n-1) to read as
follows:
(b) An adult is entitled to exemption from taxation by a
school district of $100,000 [$40,000] of the appraised value of the
adult's residence homestead, except that only $5,000 of the
exemption applies to an entity operating under former Chapter 17,
18, 25, 26, 27, or 28, Education Code, as those chapters existed on
May 1, 1995, as permitted by Section 11.301, Education Code.
(n-1) The governing body of a school district,
municipality, or county that adopted an exemption under Subsection
(n) for the 2022 tax year may not reduce the amount of or repeal the
exemption. This subsection expires December 31, 2027.
SECTION 3.02. Section 11.26, Tax Code, is amended by
amending Subsections (a), (a-10), and (o) and adding Subsections
(a-11) and (a-12) to read as follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual 65 years of
age or older or on the residence homestead of an individual who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is 65 years of age or older
or is disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). [If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older or disabled was a tax year before the 2015 tax year, the
amount of the limitation provided by this section is the amount of
tax the school district imposed for the 2014 tax year less an amount
equal to the amount determined by multiplying $10,000 times the tax
rate of the school district for the 2015 tax year, plus any 2015 tax
attributable to improvements made in 2014, other than improvements
made to comply with governmental regulations or repairs.]
(a-10) Notwithstanding the other provisions of this
section, if in the 2024 or a subsequent tax year an individual
qualifies for a limitation on tax increases provided by this
section on the individual's residence homestead, the amount of the
limitation provided by this section on the homestead is equal to the
amount computed by:
(1) multiplying the taxable value of the homestead in
the preceding tax year by a tax rate equal to the difference between
the school district's maximum compressed rate for the preceding tax
year and the district's maximum compressed rate for the current tax
year;
(2) subtracting the amount computed under Subdivision
(1) from the amount of tax the district imposed on the homestead in
the preceding tax year; [and]
(3) adding any tax imposed in the current tax year
attributable to improvements made in the preceding tax year as
provided by Subsection (b) to the amount computed under Subdivision
(2);
(4) multiplying the amount of any increase in the
current tax year as compared to the preceding tax year in the
aggregate amount of the exemptions to which the individual is
entitled under Sections 11.13(b) and (c) by the school district's
tax rate for the current tax year; and
(5) subtracting the amount computed under Subdivision
(4) from the amount computed under Subdivision (3).
(a-11) This subsection applies only to an individual who in
the 2023 tax year qualifies for a limitation under this section and
for whom the 2022 tax year or an earlier tax year was the first tax
year the individual or the individual's spouse qualified for an
exemption under Section 11.13(c). The amount of the limitation
provided by this section on the residence homestead of an
individual to which this subsection applies for the 2023 tax year is
the amount of the limitation as computed under Subsection (a-5),
(a-6), (a-7), (a-8), or (a-9) of this section, as applicable, less
an amount equal to the product of $60,000 and the tax rate of the
school district for the 2023 tax year. This subsection expires
January 1, 2025.
(a-12) This subsection applies only to an individual who in
the 2023 tax year qualifies for a limitation under this section and
for whom the 2021 tax year or an earlier tax year was the first tax
year the individual or the individual's spouse qualified for an
exemption under Section 11.13(c). The amount of the limitation
provided by this section on the residence homestead of an
individual to which this subsection applies for the 2023 tax year is
the amount of the limitation as computed under Subsection (a-11) of
this section less an amount equal to the product of $15,000 and the
tax rate of the school district for the 2022 tax year. This
subsection expires January 1, 2025.
(o) Notwithstanding Subsections (a)[, (a-3),] and (b), an
improvement to property that would otherwise constitute an
improvement under Subsection (b) is not treated as an improvement
under that subsection if the improvement is a replacement structure
for a structure that was rendered uninhabitable or unusable by a
casualty or by wind or water damage. For purposes of appraising the
property in the tax year in which the structure would have
constituted an improvement under Subsection (b), the replacement
structure is considered to be an improvement under that subsection
only if:
(1) the square footage of the replacement structure
exceeds that of the replaced structure as that structure existed
before the casualty or damage occurred; or
(2) the exterior of the replacement structure is of
higher quality construction and composition than that of the
replaced structure.
SECTION 3.03. Section 46.071, Education Code, is amended by
amending Subsections (a-1) and (b-1) and adding Subsections (a-2),
(b-2), and (c-2) to read as follows:
(a-1) For [Beginning with] the 2022-2023 school year, a
school district is entitled to additional state aid under this
subchapter to the extent that state and local revenue used to
service debt eligible under this chapter is less than the state and
local revenue that would have been available to the district under
this chapter as it existed on September 1, 2021, if any increase in
the residence homestead exemption under Section 1-b(c), Article
VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd
Called Session, 2021, had not occurred.
(a-2) Beginning with the 2023-2024 school year, a school
district is entitled to additional state aid under this subchapter
to the extent that state and local revenue used to service debt
eligible under this chapter is less than the state and local revenue
that would have been available to the district under this chapter as
it existed on September 1, 2022, if any increase in a residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, and any additional limitation on tax increases under
Section 1-b(d) of that article as proposed by the 88th Legislature,
2nd Called Session, 2023, had not occurred.
(b-1) Subject to Subsections (c-1), (d), and (e),
additional state aid under this section for [beginning with] the
2022-2023 school year is equal to the amount by which the loss of
local interest and sinking revenue for debt service attributable to
any increase in the residence homestead exemption under Section
1-b(c), Article VIII, Texas Constitution, as proposed by the 87th
Legislature, 3rd Called Session, 2021, is not offset by a gain in
state aid under this chapter.
(b-2) Subject to Subsections (c-2), (d), and (e),
additional state aid under this section beginning with the
2023-2024 school year is equal to the amount by which the loss of
local interest and sinking revenue for debt service attributable to
any increase in a residence homestead exemption under Section
1-b(c), Article VIII, Texas Constitution, and any additional
limitation on tax increases under Section 1-b(d) of that article as
proposed by the 88th Legislature, 2nd Called Session, 2023, is not
offset by a gain in state aid under this chapter.
(c-2) For the purpose of determining state aid under
Subsections (a-2) and (b-2), local interest and sinking revenue for
debt service is limited to revenue required to service debt
eligible under this chapter as of September 1, 2023, or authorized
by the voters but not yet issued as of September 1, 2023, that later
becomes eligible under this chapter, including refunding of that
debt, subject to Section 46.061. The limitation imposed by Section
46.034(a) does not apply for the purpose of determining state aid
under this section.
SECTION 3.04. Section 48.2542, Education Code, is amended
to read as follows:
Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
Notwithstanding any other provision of this chapter, if a school
district is not fully compensated through state aid or the
calculation of excess local revenue under this chapter based on the
determination of the district's taxable value of property under
Subchapter M, Chapter 403, Government Code, the district is
entitled to additional state aid in the amount necessary to fully
compensate the district for the amount of ad valorem tax revenue
lost due to a reduction of the amount of the limitation on tax
increases provided by Sections 11.26(a-4), (a-5), (a-6), (a-7),
(a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code, as
applicable.
SECTION 3.05. Effective January 1, 2025, Section 48.2542,
Education Code, is amended to read as follows:
Sec. 48.2542. ADDITIONAL STATE AID FOR ADJUSTMENT OF
LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED.
Notwithstanding any other provision of this chapter, if a school
district is not fully compensated through state aid or the
calculation of excess local revenue under this chapter based on the
determination of the district's taxable value of property under
Subchapter M, Chapter 403, Government Code, the district is
entitled to additional state aid in the amount necessary to fully
compensate the district for the amount of ad valorem tax revenue
lost due to a reduction of the amount of the limitation on tax
increases provided by Section 11.26(a-10) [Sections 11.26(a-4),
(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as
applicable].
SECTION 3.06. Section 48.2543, Education Code, is amended
to read as follows:
Sec. 48.2543. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
(a) For [Beginning with] the 2022-2023 school year, a school
district is entitled to additional state aid to the extent that
state and local revenue under this chapter and Chapter 49 is less
than the state and local revenue that would have been available to
the district under this chapter and Chapter 49 as those chapters
existed on September 1, 2021, if any increase in the residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, as proposed by the 87th Legislature, 3rd Called
Session, 2021, had not occurred.
(a-1) Beginning with the 2023-2024 school year, a school
district is entitled to additional state aid to the extent that
state and local revenue under this chapter and Chapter 49 is less
than the state and local revenue that would have been available to
the district under this chapter and Chapter 49 as those chapters
existed on September 1, 2022, if any increase in a residence
homestead exemption under Section 1-b(c), Article VIII, Texas
Constitution, and any additional limitation on tax increases under
Section 1-b(d) of that article as proposed by the 88th Legislature,
2nd Called Session, 2023, had not occurred.
(b) The lesser of the school district's currently adopted
maintenance and operations tax rate or the adopted maintenance and
operations tax rate for:
(1) the 2021 tax year is used for the purpose of
determining additional state aid under Subsection (a); and
(2) the 2022 tax year is used for the purpose of
determining additional state aid under Subsection (a-1).
SECTION 3.07. Section 48.2556(a), Education Code, is
amended to read as follows:
(a) The agency shall post the following information on the
agency's Internet website for purposes of allowing the chief
appraiser of each appraisal district and the assessor for each
school district to make the calculations required by Sections
11.26(a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and
(a-12), Tax Code:
(1) each school district's maximum compressed rate, as
determined under Section 48.2551, for each tax year beginning with
the 2019 tax year; and
(2) each school district's tier one maintenance and
operations tax rate, as provided by Section 45.0032(a), for the
2018 tax year.
SECTION 3.08. Effective January 1, 2025, Section
48.2556(a), Education Code, is amended to read as follows:
(a) For purposes of allowing the chief appraiser of each
appraisal district and the assessor for each school district to
make the calculations required by Section 11.26(a-10), Tax Code,
the [The] agency shall post [the following information] on the
agency's Internet website [for purposes of allowing the chief
appraiser of each appraisal district and the assessor for each
school district to make the calculations required by Sections
11.26(a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code:
[(1)] each school district's maximum compressed rate,
as determined under Section 48.2551, for the current [each] tax
year and the preceding [beginning with the 2019] tax year[; and
[(2) each school district's tier one maintenance and
operations tax rate, as provided by Section 45.0032(a), for the
2018 tax year].
SECTION 3.09. Section 49.004, Education Code, is amended by
adding Subsections (a-1), (b-1), and (c-1) to read as follows:
(a-1) This subsection applies only if the constitutional
amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called
Session, 2023, is approved by the voters in an election held for
that purpose. As soon as practicable after receiving revised
property values that reflect adoption of the constitutional
amendment, the commissioner shall review the local revenue level of
districts in the state and revise as necessary the notifications
provided under Subsection (a) for the 2023-2024 school year. This
subsection expires September 1, 2024.
(b-1) This subsection applies only to a district that has
not previously held an election under this chapter. Notwithstanding
Subsection (b), a district that enters into an agreement to
exercise an option to reduce the district's local revenue level in
excess of entitlement under Section 49.002(3), (4), or (5) for the
2023-2024 school year may request and, as provided by Section
49.0042(a), receive approval from the commissioner to delay the
date of the election otherwise required to be ordered before
September 1. This subsection expires September 1, 2024.
(c-1) Notwithstanding Subsection (c), a district that
receives approval from the commissioner to delay an election as
provided by Subsection (b-1) may adopt a tax rate for the 2023 tax
year before the commissioner certifies that the district has
reduced its local revenue level to the level established by Section
48.257. This subsection expires September 1, 2024.
SECTION 3.10. Subchapter A, Chapter 49, Education Code, is
amended by adding Section 49.0042 to read as follows:
Sec. 49.0042. TRANSITIONAL PROVISIONS: INCREASED HOMESTEAD
EXEMPTION AND LIMITATION ON TAX INCREASES. (a) The commissioner
shall approve a district's request under Section 49.004(b-1) to
delay the date of an election required under this chapter if the
commissioner determines that the district would not have a local
revenue level in excess of entitlement if the constitutional
amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called
Session, 2023, were approved by the voters.
(b) The commissioner shall set a date by which each district
that receives approval under this section must order the election.
(c) Not later than the 2024-2025 school year, the
commissioner shall order detachment and annexation of property
under Subchapter G or consolidation under Subchapter H as necessary
to reduce the district's local revenue level to the level
established by Section 48.257 for a district that receives approval
under this section and subsequently:
(1) fails to hold the election; or
(2) does not receive voter approval at the election.
(d) This section expires September 1, 2025.
SECTION 3.11. Subchapter A, Chapter 49, Education Code, is
amended by adding Section 49.0121 to read as follows:
Sec. 49.0121. TRANSITIONAL ELECTION DATES. (a) This
section applies only to an election under this chapter that occurs
during the 2023-2024 school year.
(b) Section 49.012 does not apply to a district that
receives approval of a request under Section 49.0042. The district
shall hold the election on a Tuesday or Saturday on or before a date
specified by the commissioner. Section 41.001, Election Code, does
not apply to the election.
(c) This section expires September 1, 2024.
SECTION 3.12. Section 49.154, Education Code, is amended by
adding Subsections (a-2) and (a-3) to read as follows:
(a-2) Notwithstanding Subsections (a) and (a-1), a district
that receives approval of a request under Section 49.0042 shall pay
for credit purchased:
(1) in equal monthly payments as determined by the
commissioner beginning March 15, 2024, and ending August 15, 2024;
or
(2) in the manner provided by Subsection (a)(2),
provided that the district notifies the commissioner of the
district's election to pay in that manner not later than March 15,
2024.
(a-3) Subsection (a-2) and this subsection expire September
1, 2024.
SECTION 3.13. Section 49.308, Education Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Notwithstanding Subsection (a), for the 2023-2024
school year, the commissioner shall order any detachments and
annexations of property under this subchapter as soon as
practicable after the canvass of the votes on the constitutional
amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called
Session, 2023. This subsection expires September 1, 2024.
SECTION 3.14. Section 403.302, Government Code, is amended
by amending Subsection (j-1) and adding Subsection (j-2) to read as
follows:
(j-1) In the final certification of the study under
Subsection (j), the comptroller shall separately identify the final
taxable value for each school district as adjusted to account for
the reduction of the amount of the limitation on tax increases
provided by Section 11.26(a-10) [Sections 11.26(a-4), (a-5),
(a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable].
(j-2) In the final certification of the study under
Subsection (j), the comptroller shall separately identify the final
taxable value for each school district as adjusted to account for
the reduction of the amount of the limitation on tax increases
provided by Sections 11.26(a-5), (a-6), (a-7), (a-8), (a-9),
(a-10), (a-11), and (a-12), Tax Code. This subsection expires
January 1, 2025.
SECTION 3.15. (a) Sections 11.26(a-1), (a-2), and (a-3),
Tax Code, are repealed.
(b) Effective January 1, 2025, Sections 11.26(a-5), (a-6),
(a-7), (a-8), and (a-9), Tax Code, are repealed.
SECTION 3.16. Sections 11.13 and 11.26, Tax Code, as
amended by this article, apply only to an ad valorem tax year that
begins on or after January 1, 2023.
ARTICLE 4. CIRCUIT BREAKER LIMITATION ON INCREASES IN VALUE OF REAL
PROPERTY OTHER THAN RESIDENCE HOMESTEAD
SECTION 4.01. Section 1.12(d), Tax Code, is amended to read
as follows:
(d) For purposes of this section, the appraisal ratio of
property [a homestead] to which Section 23.23 or 23.231 applies is
the ratio of the property's market value as determined by the
appraisal district or appraisal review board, as applicable, to the
market value of the property according to law. The appraisal ratio
is not calculated according to the appraised value of the property
as limited by Section 23.23 or 23.231.
SECTION 4.02. Effective January 1, 2027, Section 1.12(d),
Tax Code, is amended to read as follows:
(d) For purposes of this section, the appraisal ratio of a
homestead to which Section 23.23 applies is the ratio of the
property's market value as determined by the appraisal district or
appraisal review board, as applicable, to the market value of the
property according to law. The appraisal ratio is not calculated
according to the appraised value of the property as limited by
Section 23.23.
SECTION 4.03. Subchapter B, Chapter 23, Tax Code, is
amended by adding Section 23.231 to read as follows:
Sec. 23.231. CIRCUIT BREAKER LIMITATION ON APPRAISED VALUE
OF REAL PROPERTY OTHER THAN RESIDENCE HOMESTEAD. (a) In this
section:
(1) "Consumer price index" means the average over a
state fiscal year of the Consumer Price Index for All Urban
Consumers (CPI-U), U.S. City Average, published monthly by the
United States Bureau of Labor Statistics, or its successor in
function.
(2) "Disaster recovery program" means a disaster
recovery program funded with community development block grant
disaster recovery money authorized by federal law.
(3) "New improvement" means an improvement to real
property made after the most recent appraisal of the property that
increases the market value of the property and the value of which is
not included in the appraised value of the property for the
preceding tax year. The term does not include repairs to or
ordinary maintenance of an existing structure or the grounds or
another feature of the property.
(b) This section applies only to real property with an
appraised value of not more than the amount determined under
Subsection (j) for the tax year in which the property first
qualifies for the circuit breaker limitation authorized by this
section.
(c) This section does not apply to:
(1) a residence homestead that qualifies for an
exemption under Section 11.13; or
(2) property appraised under Subchapter C, D, E, F, G,
or H.
(d) Notwithstanding the requirements of Section 25.18 and
regardless of whether the appraisal office has appraised the
property and determined the market value of the property for the tax
year, an appraisal office may increase the appraised value of real
property to which this section applies for a tax year to an amount
not to exceed the lesser of:
(1) the market value of the property for the most
recent tax year that the market value was determined by the
appraisal office; or
(2) the sum of:
(A) 20 percent of the appraised value of the
property for the preceding tax year;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property.
(e) When appraising real property to which this section
applies, the chief appraiser shall:
(1) appraise the property at its market value; and
(2) include in the appraisal records both the market
value of the property and the amount computed under Subsection
(d)(2).
(f) The circuit breaker limitation provided by Subsection
(d) takes effect as to a parcel of real property on January 1 of the
tax year following the first tax year in which the owner owns the
property on January 1. The circuit breaker limitation expires on
January 1 of the tax year following the tax year in which the owner
of the property ceases to own the property.
(g) For purposes of Subsection (f), a person who acquired
real property to which this section applies before the 2023 tax year
is considered to have acquired the property on January 1, 2023.
(h) Notwithstanding Subsections (a) and (d) and except as
provided by Subdivision (2) of this subsection, an improvement to
real property that would otherwise constitute a new improvement is
not treated as a new improvement if the improvement is a replacement
structure for a structure that was rendered uninhabitable or
unusable by a casualty or by wind or water damage. For purposes of
appraising the property under Subsection (d) in the tax year in
which the structure would have constituted a new improvement:
(1) the appraised value the property would have had in
the preceding tax year if the casualty or damage had not occurred is
considered to be the appraised value of the property for that year,
regardless of whether that appraised value exceeds the actual
appraised value of the property for that year as limited by
Subsection (d); and
(2) the replacement structure is considered to be a
new improvement only if:
(A) the square footage of the replacement
structure exceeds that of the replaced structure as that structure
existed before the casualty or damage occurred; or
(B) the exterior of the replacement structure is
of higher quality construction and composition than that of the
replaced structure.
(i) Notwithstanding Subsection (h)(2), and only to the
extent necessary to satisfy the requirements of a disaster recovery
program, a replacement structure described by that subdivision is
not considered to be a new improvement if to satisfy the
requirements of the disaster recovery program it was necessary
that:
(1) the square footage of the replacement structure
exceed that of the replaced structure as that structure existed
before the casualty or damage occurred; or
(2) the exterior of the replacement structure be of
higher quality construction and composition than that of the
replaced structure.
(j) For the purpose of Subsection (b), for the 2024 tax
year, the amount is $5 million. For the 2025 tax year, the
comptroller shall determine the amount for purposes of Subsection
(b) by increasing or decreasing, as applicable, the amount in
effect for the 2024 tax year by an amount equal to $5 million
multiplied by the percentage increase or decrease during the
preceding state fiscal year in the consumer price index. For each
subsequent tax year, the comptroller shall determine the amount for
purposes of Subsection (b) by increasing or decreasing, as
applicable, the amount in effect for the preceding tax year by an
amount equal to that amount multiplied by the percentage increase
or decrease during the preceding state fiscal year in the consumer
price index, rounded to the nearest $10,000. The comptroller shall
publish the amount in effect for a tax year under this subsection as
soon as practicable after January 1 of the tax year.
(k) This section expires December 31, 2026.
SECTION 4.04. Sections 25.19(b) and (g), Tax Code, are
amended to read as follows:
(b) The chief appraiser shall separate real from personal
property and include in the notice for each:
(1) a list of the taxing units in which the property is
taxable;
(2) the appraised value of the property in the
preceding year;
(3) the taxable value of the property in the preceding
year for each taxing unit taxing the property;
(4) the appraised value of the property for the
current year, the kind and amount of each exemption and partial
exemption, if any, approved for the property for the current year
and for the preceding year, and, if an exemption or partial
exemption that was approved for the preceding year was canceled or
reduced for the current year, the amount of the exemption or partial
exemption canceled or reduced;
(4-a) a statement of whether the property qualifies
for the circuit breaker limitation on appraised value provided by
Section 23.231;
(5) in italic typeface, the following statement: "The
Texas Legislature does not set the amount of your local taxes. Your
property tax burden is decided by your locally elected officials,
and all inquiries concerning your taxes should be directed to those
officials";
(6) a detailed explanation of the time and procedure
for protesting the value;
(7) the date and place the appraisal review board will
begin hearing protests;
(8) an explanation of the availability and purpose of
an informal conference with the appraisal office before a hearing
on a protest; and
(9) a brief explanation that the governing body of
each taxing unit decides whether or not taxes on the property will
increase and the appraisal district only determines the value of
the property.
(g) By April 1 or as soon thereafter as practicable if the
property is a single-family residence that qualifies for an
exemption under Section 11.13, or by May 1 or as soon thereafter as
practicable in connection with any other property, the chief
appraiser shall deliver a written notice to the owner of each
property not included in a notice required to be delivered under
Subsection (a), if the property was reappraised in the current tax
year, if the ownership of the property changed during the preceding
year, or if the property owner or the agent of a property owner
authorized under Section 1.111 makes a written request for the
notice. The chief appraiser shall separate real from personal
property and include in the notice for each property:
(1) the appraised value of the property in the
preceding year;
(2) the appraised value of the property for the
current year and the kind of each partial exemption, if any,
approved for the current year;
(2-a) a statement of whether the property qualifies
for the circuit breaker limitation on appraised value provided by
Section 23.231;
(3) a detailed explanation of the time and procedure
for protesting the value; and
(4) the date and place the appraisal review board will
begin hearing protests.
SECTION 4.05. Effective January 1, 2027, Sections 25.19(b)
and (g), Tax Code, are amended to read as follows:
(b) The chief appraiser shall separate real from personal
property and include in the notice for each:
(1) a list of the taxing units in which the property is
taxable;
(2) the appraised value of the property in the
preceding year;
(3) the taxable value of the property in the preceding
year for each taxing unit taxing the property;
(4) the appraised value of the property for the
current year, the kind and amount of each exemption and partial
exemption, if any, approved for the property for the current year
and for the preceding year, and, if an exemption or partial
exemption that was approved for the preceding year was canceled or
reduced for the current year, the amount of the exemption or partial
exemption canceled or reduced;
(5) in italic typeface, the following statement: "The
Texas Legislature does not set the amount of your local taxes. Your
property tax burden is decided by your locally elected officials,
and all inquiries concerning your taxes should be directed to those
officials";
(6) a detailed explanation of the time and procedure
for protesting the value;
(7) the date and place the appraisal review board will
begin hearing protests;
(8) an explanation of the availability and purpose of
an informal conference with the appraisal office before a hearing
on a protest; and
(9) a brief explanation that the governing body of
each taxing unit decides whether or not taxes on the property will
increase and the appraisal district only determines the value of
the property.
(g) By April 1 or as soon thereafter as practicable if the
property is a single-family residence that qualifies for an
exemption under Section 11.13, or by May 1 or as soon thereafter as
practicable in connection with any other property, the chief
appraiser shall deliver a written notice to the owner of each
property not included in a notice required to be delivered under
Subsection (a), if the property was reappraised in the current tax
year, if the ownership of the property changed during the preceding
year, or if the property owner or the agent of a property owner
authorized under Section 1.111 makes a written request for the
notice. The chief appraiser shall separate real from personal
property and include in the notice for each property:
(1) the appraised value of the property in the
preceding year;
(2) the appraised value of the property for the
current year and the kind of each partial exemption, if any,
approved for the current year;
(3) a detailed explanation of the time and procedure
for protesting the value; and
(4) the date and place the appraisal review board will
begin hearing protests.
SECTION 4.06. Section 25.19, Tax Code, is amended by adding
Subsection (o) to read as follows:
(o) A notice required under Subsection (a) or (g) to be
delivered to the owner of real property other than a single-family
residence that qualifies for an exemption under Section 11.13 must
include the following statement: "Under Section 23.231, Tax Code,
for the 2024, 2025, and 2026 tax years, the appraised value of real
property other than a residence homestead for ad valorem tax
purposes may not be increased by more than 20 percent each year,
with certain exceptions. The circuit breaker limitation provided
under Section 23.231, Tax Code, expires December 31, 2026. Unless
this expiration date is extended by the Texas Legislature,
beginning in the 2027 tax year, the circuit breaker limitation
provided under Section 23.231, Tax Code, will no longer be in effect
and may result in an increase in ad valorem taxes imposed on real
property previously subject to the limitation." This subsection
expires December 31, 2027.
SECTION 4.07. Section 41.41(a), Tax Code, is amended to
read as follows:
(a) A property owner is entitled to protest before the
appraisal review board the following actions:
(1) determination of the appraised value of the
owner's property or, in the case of land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, determination of its appraised
or market value;
(2) unequal appraisal of the owner's property;
(3) inclusion of the owner's property on the appraisal
records;
(4) denial to the property owner in whole or in part of
a partial exemption;
(4-a) determination that the owner's property does not
qualify for the circuit breaker limitation on appraised value
provided by Section 23.231;
(5) determination that the owner's land does not
qualify for appraisal as provided by Subchapter C, D, E, or H,
Chapter 23;
(6) identification of the taxing units in which the
owner's property is taxable in the case of the appraisal district's
appraisal roll;
(7) determination that the property owner is the owner
of property;
(8) a determination that a change in use of land
appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
or
(9) any other action of the chief appraiser, appraisal
district, or appraisal review board that applies to and adversely
affects the property owner.
SECTION 4.08. Effective January 1, 2027, Section 41.41(a),
Tax Code, is amended to read as follows:
(a) A property owner is entitled to protest before the
appraisal review board the following actions:
(1) determination of the appraised value of the
owner's property or, in the case of land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, determination of its appraised
or market value;
(2) unequal appraisal of the owner's property;
(3) inclusion of the owner's property on the appraisal
records;
(4) denial to the property owner in whole or in part of
a partial exemption;
(5) determination that the owner's land does not
qualify for appraisal as provided by Subchapter C, D, E, or H,
Chapter 23;
(6) identification of the taxing units in which the
owner's property is taxable in the case of the appraisal district's
appraisal roll;
(7) determination that the property owner is the owner
of property;
(8) a determination that a change in use of land
appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
or
(9) any other action of the chief appraiser, appraisal
district, or appraisal review board that applies to and adversely
affects the property owner.
SECTION 4.09. Section 42.26(d), Tax Code, is amended to
read as follows:
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or sample
property that is used for comparison must be the market value
determined by the appraisal district when the property is [a
residence homestead] subject to the limitation on appraised value
imposed by Section 23.23 or 23.231.
SECTION 4.10. Effective January 1, 2027, Section 42.26(d),
Tax Code, is amended to read as follows:
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or sample
property that is used for comparison must be the market value
determined by the appraisal district when the property is a
residence homestead subject to the limitation on appraised value
imposed by Section 23.23.
SECTION 4.11. Sections 403.302(d) and (i), Government Code,
are amended to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by former Section 311.003(e), Tax Code, before May 31,
1999, and within the boundaries of the zone as those boundaries
existed on September 1, 1999, including subsequent improvements to
the property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(7) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(8) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(9) a portion of the market value of property not
otherwise fully taxable by the district at market value because of
action required by statute or the constitution of this state, other
than Section 11.311, Tax Code, that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted;
(10) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(12) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code;
(13) the amount by which the market value of property
[a residence homestead] to which Section 23.23 or 23.231, Tax Code,
applies exceeds the appraised value of that property as calculated
under Section 23.23 or 23.231, Tax Code, as applicable [that
section]; and
(14) the total dollar amount of any exemptions granted
under Section 11.35, Tax Code.
(i) If the comptroller determines in the study that the
market value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is valid, the comptroller,
in determining the taxable value of property in the school district
under Subsection (d), shall for purposes of Subsection (d)(13)
subtract from the market value as determined by the appraisal
district of properties [residence homesteads] to which Section
23.23 or 23.231, Tax Code, applies the amount by which that amount
exceeds the appraised value of those properties as calculated by
the appraisal district under Section 23.23 or 23.231, Tax Code, as
applicable. If the comptroller determines in the study that the
market value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is not valid, the
comptroller, in determining the taxable value of property in the
school district under Subsection (d), shall for purposes of
Subsection (d)(13) subtract from the market value as estimated by
the comptroller of properties [residence homesteads] to which
Section 23.23 or 23.231, Tax Code, applies the amount by which that
amount exceeds the appraised value of those properties as
calculated by the appraisal district under Section 23.23 or 23.231,
Tax Code, as applicable.
SECTION 4.12. Effective January 1, 2027, Sections
403.302(d) and (i), Government Code, are amended to read as
follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by former Section 311.003(e), Tax Code, before May 31,
1999, and within the boundaries of the zone as those boundaries
existed on September 1, 1999, including subsequent improvements to
the property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(7) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(8) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(9) a portion of the market value of property not
otherwise fully taxable by the district at market value because of
action required by statute or the constitution of this state, other
than Section 11.311, Tax Code, that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted;
(10) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(12) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code;
(13) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section; and
(14) the total dollar amount of any exemptions granted
under Section 11.35, Tax Code.
(i) If the comptroller determines in the study that the
market value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is valid, the comptroller,
in determining the taxable value of property in the school district
under Subsection (d), shall for purposes of Subsection (d)(13)
subtract from the market value as determined by the appraisal
district of residence homesteads to which Section 23.23, Tax Code,
applies the amount by which that amount exceeds the appraised value
of those properties as calculated by the appraisal district under
Section 23.23, Tax Code. If the comptroller determines in the
study that the market value of property in a school district as
determined by the appraisal district that appraises property for
the school district, less the total of the amounts and values listed
in Subsection (d) as determined by that appraisal district, is not
valid, the comptroller, in determining the taxable value of
property in the school district under Subsection (d), shall for
purposes of Subsection (d)(13) subtract from the market value as
estimated by the comptroller of residence homesteads to which
Section 23.23, Tax Code, applies the amount by which that amount
exceeds the appraised value of those properties as calculated by
the appraisal district under Section 23.23, Tax Code.
SECTION 4.13. Section 23.231, Tax Code, as added by this
article, applies only to the appraisal of real property other than a
residence homestead for ad valorem tax purposes for a tax year that
begins on or after the effective date of this article.
ARTICLE 5. BOARDS OF DIRECTORS OF APPRAISAL DISTRICTS
SECTION 5.01. The heading to Section 6.03, Tax Code, is
amended to read as follows:
Sec. 6.03. BOARD OF DIRECTORS IN LESS POPULOUS COUNTIES.
SECTION 5.02. Section 6.03, Tax Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) This section applies only to an appraisal district
established in a county with a population of less than 75,000.
(a-1) The appraisal district is governed by a board of
directors. Five directors are appointed by the taxing units that
participate in the district as provided by this section. If the
county assessor-collector is not appointed to the board, the county
assessor-collector serves as a nonvoting director. The county
assessor-collector is ineligible to serve if the board enters into
a contract under Section 6.05(b) or if the commissioners court of
the county enters into a contract under Section 6.24(b). To be
eligible to serve on the board of directors, an individual other
than a county assessor-collector serving as a nonvoting director
must be a resident of the district and must have resided in the
district for at least two years immediately preceding the date the
individual takes office. An individual who is otherwise eligible
to serve on the board is not ineligible because of membership on the
governing body of a taxing unit. An employee of a taxing unit that
participates in the district is not eligible to serve on the board
unless the individual is also a member of the governing body or an
elected official of a taxing unit that participates in the
district.
SECTION 5.03. Subchapter A, Chapter 6, Tax Code, is amended
by adding Section 6.0301 to read as follows:
Sec. 6.0301. BOARD OF DIRECTORS IN POPULOUS COUNTIES.
(a) This section applies only to an appraisal district established
in a county with a population of 75,000 or more.
(b) Sections 6.031, 6.034, and 6.10 do not apply to an
appraisal district to which this section applies.
(c) The appraisal district is governed by a board of nine
directors. Five directors are appointed by the taxing units that
participate in the district in the manner prescribed by Section
6.03. Three directors are elected by majority vote at the general
election for state and county officers by the voters of the county
in which the district is established. The county
assessor-collector serves as an ex officio director.
(d) To be eligible to serve on the board of directors, an
individual other than the county assessor-collector must be a
resident of the district and must have resided in the district for
at least two years immediately preceding the date the individual
takes office. An individual who is otherwise eligible to serve on
the board is not ineligible because of membership on the governing
body of a taxing unit. An employee of a taxing unit that
participates in the district is not eligible to serve on the board
unless the individual is also a member of the governing body or an
elected official of a taxing unit that participates in the
district.
(e) Members of the board of directors appointed by the
taxing units participating in the district serve staggered
four-year terms beginning on January 1 of every other even-numbered
year. Elected members of the board of directors serve staggered
four-year terms beginning on January 1 of every other odd-numbered
year.
(f) If a vacancy occurs in an appointive position on the
board of directors, each taxing unit that is entitled to vote under
Section 6.03 may nominate by resolution adopted by its governing
body a candidate to fill the vacancy. The taxing unit shall submit
the name of its nominee to the chief appraiser within 45 days after
notification from the board of directors of the existence of the
vacancy, and the chief appraiser shall prepare and deliver to the
board of directors within the next five days a list of the nominees.
The board of directors shall appoint by majority vote of its members
one of the nominees to fill the vacancy.
(g) If a vacancy occurs in an elective position on the board
of directors, the board of directors shall appoint by majority vote
of its members a person to fill the vacancy. A person appointed to
fill a vacancy in an elective position must have the qualifications
required of a director elected at a general election.
SECTION 5.04. Subchapter A, Chapter 6, Tax Code, is amended
by adding Section 6.032 to read as follows:
Sec. 6.032. BALLOT PROCEDURES FOR ELECTED DIRECTORS; FILING
FEE OR PETITION. (a) Except as provided by this section, Chapter
144, Election Code, applies to a candidate for an elective position
on an appraisal district board of directors.
(b) An application for a place on the ballot must be filed
with the county judge of the county in which the appraisal district
is established and be accompanied by a filing fee prescribed by
Subsection (c) of this section or a petition in lieu of the filing
fee that satisfies the requirements prescribed by Section 141.062,
Election Code, and Subsection (d) of this section.
(c) The filing fee for a place on the ballot is:
(1) $400 for a county with a population of 200,000 or
more; or
(2) $200 for a county with a population of less than
200,000.
(d) The minimum number of signatures that must appear on the
petition authorized by Subsection (b) is the lesser of:
(1) 500; or
(2) two percent of the total vote received in the
county by all the candidates for governor in the most recent
gubernatorial general election, unless that number is less than 50,
in which case the required number of signatures is the lesser of:
(A) 50; or
(B) 20 percent of that total vote.
(e) A filing fee received under this section shall be
deposited in the county treasury to the credit of the county general
fund.
(f) The secretary of state shall adopt rules as necessary to
implement this section.
SECTION 5.05. The heading to Section 6.033, Tax Code, is
amended to read as follows:
Sec. 6.033. RECALL OF APPOINTED DIRECTOR.
SECTION 5.06. Section 6.033(a), Tax Code, is amended to
read as follows:
(a) The governing body of a taxing unit may call for the
recall of an appointed [a] member of the board of directors of an
appraisal district [appointed under Section 6.03 of this code] for
whom the taxing unit cast any of its votes in the appointment of the
board. The call must be in the form of a resolution, be filed with
the chief appraiser of the appraisal district, and state that the
taxing unit is calling for the recall of the member. If a
resolution calling for the recall of a board member is filed under
this subsection, the chief appraiser, not later than the 10th day
after the date of filing, shall deliver a written notice of the
filing of the resolution and the date of its filing to the presiding
officer of the governing body of each taxing unit entitled to vote
in the appointment of board members.
SECTION 5.07. Section 6.036(a), Tax Code, is amended to
read as follows:
(a) An individual is not eligible to be a candidate for, to
be appointed to, or to serve on the board of directors of an
appraisal district if the individual or a business entity in which
the individual has a substantial interest is a party to a contract
with:
(1) the appraisal district; or
(2) a taxing unit that participates in the appraisal
district, if the contract relates to the performance of an activity
governed by this title.
SECTION 5.08. Section 6.052(f), Tax Code, as effective
January 1, 2024, is amended to read as follows:
(f) The taxpayer liaison officer is responsible for
providing clerical assistance to the applicable appointing
authority prescribed by Section 6.41(d) [local administrative
district judge] in the selection of appraisal review board members
and for publicizing the availability of positions on the appraisal
review board. The officer shall deliver to the applicable
appointing authority [local administrative district judge] any
applications to serve on the board that are submitted to the officer
and shall perform other duties as requested by the applicable
appointing authority [local administrative district judge]. The
officer may not influence the process for selecting appraisal
review board members.
SECTION 5.09. Section 6.41, Tax Code, is amended by
amending Subsections (d), (d-1), (d-2), (d-3), (d-5), (d-9),
(d-10), (e), (g), (i), and (j) and adding Subsection (d-2-1) to read
as follows:
(d) Members of the board are appointed by the applicable
appointing authority. For an appraisal district to which Section
6.03 applies, the appointing authority is the local administrative
district judge under Subchapter D, Chapter 74, Government Code, in
the county in which the appraisal district is established. For an
appraisal district to which Section 6.0301 applies, the appointing
authority is the board of directors of the district. A vacancy on
the board is filled in the same manner for the unexpired portion of
the term.
(d-1) All applications submitted to the appraisal district
or to the appraisal review board from persons seeking appointment
as a member of the appraisal review board shall be delivered to the
applicable appointing authority [local administrative district
judge]. The appraisal district may provide the appointing
authority [local administrative district judge] with information
regarding whether an applicant for appointment to or a member of the
board owes any delinquent ad valorem taxes to a taxing unit
participating in the appraisal district.
(d-2) A local administrative district judge acting as an
appointing authority may make appointments to the board directly or
may, by written order, appoint from three to five persons to perform
the duties of appraisal review board commissioner. If the local
administrative district judge chooses to appoint appraisal review
board commissioners, each commissioner shall possess the same
qualifications as those required of an appraisal review board
member.
(d-2-1) A board of directors acting as an appointing
authority must make appointments to the appraisal review board by
majority vote, with at least two members of the majority being
elected members of the board of directors.
(d-3) The applicable appointing authority [local
administrative judge] shall cause the proper officer to notify
appointees to the board of their appointment, and when and where
they are to appear.
(d-5) The appraisal district of the county shall provide to
the applicable appointing authority [local administrative district
judge], or to the appraisal review board commissioners, as the case
may be, the number of appraisal review board positions that require
appointment and shall provide whatever reasonable assistance is
requested by the applicable appointing authority [local
administrative district judge] or the commissioners.
(d-9) In selecting individuals who are to serve as members
of the appraisal review board for an appraisal district described
by Subsection (b-2), the board of directors of the district [local
administrative district judge] shall select an adequate number of
qualified individuals to permit the chairman of the appraisal
review board to fill the positions on each special panel
established under Section 6.425.
(d-10) Upon selection of the individuals who are to serve as
members of the appraisal review board, the applicable appointing
authority [local administrative district judge] shall enter an
appropriate order designating such members and setting each
member's respective term of office, as provided elsewhere in this
section.
(e) Members of the board hold office for terms of two years
beginning January 1. The appraisal district board of directors by
resolution shall provide for staggered terms, so that the terms of
as close to one-half of the members as possible expire each
year. In making the initial or subsequent appointments, the
applicable appointing authority, or the local administrative
district [judge or the] judge's designee if the appointing
authority is the judge, shall designate those members who serve
terms of one year as needed to comply with this subsection.
(g) Subsection (a) does not preclude the boards of directors
of two or more adjoining appraisal districts from providing for the
operation of a consolidated appraisal review board by interlocal
contract. Members of a consolidated appraisal review board are
appointed jointly by the applicable appointing authorities [local
administrative district judges] in the counties in which the
appraisal districts that are parties to the contract are
established.
(i) A chief appraiser or another employee or agent of the
appraisal district, a member of the appraisal review board for the
appraisal district, a member of the board of directors of the
appraisal district if the board is established for a district to
which Section 6.03 applies, a property tax consultant, or an agent
of a property owner commits an offense if the person communicates
with the applicable appointing authority [local administrative
district judge] regarding the appointment of appraisal review board
members. This subsection does not apply to:
(1) a communication between a member of the appraisal
review board and the applicable appointing authority [local
administrative district judge] regarding the member's
reappointment to the board;
(2) a communication between the taxpayer liaison
officer for the appraisal district and the applicable appointing
authority [local administrative district judge] in the course of
the performance of the officer's clerical duties so long as the
officer does not offer an opinion or comment regarding the
appointment of appraisal review board members;
(3) a communication between a chief appraiser or
another employee or agent of the appraisal district, a member of the
appraisal review board for the appraisal district, or a member of
the board of directors of the appraisal district if the board is
established for a district to which Section 6.03 applies and the
applicable appointing authority [local administrative district
judge] regarding information relating to or described by Subsection
(d-1), (d-5), or (f) of this section or Section 411.1296,
Government Code;
(4) a communication between a property tax consultant
or a property owner or an agent of the property owner and the
taxpayer liaison officer for the appraisal district regarding
information relating to or described by Subsection (f). The
taxpayer liaison officer for the appraisal district shall report
the contents of the communication relating to or described by
Subsection (f) to the applicable appointing authority [local
administrative district judge]; or
(5) a communication between a property tax consultant
or a property owner or an agent of the property owner and the
applicable appointing authority [local administrative district
judge] regarding information relating to or described by Subsection
(f).
(j) A chief appraiser or another employee or agent of an
appraisal district commits an offense if the person communicates
with a member of the appraisal review board for the appraisal
district, a member of the board of directors of the appraisal
district, or the local administrative district judge, if the judge
is the appointing authority for the district, regarding a ranking,
scoring, or reporting of the percentage by which the appraisal
review board or a panel of the board reduces the appraised value of
property.
SECTION 5.10. Section 6.41(f), Tax Code, as amended by
Chapters 354 (H.B. 2941) and 533 (S.B. 63), Acts of the 87th
Legislature, Regular Session, 2021, is reenacted and amended to
read as follows:
(f) A member of the appraisal review board may be removed
from the board by the applicable appointing authority, or the local
administrative district [judge or the] judge's designee if the
appointing authority is the judge. Not later than the 90th day
after the date the board of directors, local administrative
district judge, or judge's designee that appointed a member of the
appraisal review board learns of a potential ground for removal of
the member, the board of directors, local administrative district
judge, or judge's designee, as applicable, shall remove the member
or find by official action that the member's removal is not
warranted. Grounds for removal are:
(1) a violation of Section 6.412, 6.413, 41.66(f), or
41.69;
(2) good cause relating to the attendance of members
at called meetings of the board as established by written policy
adopted by a majority of the appraisal district board of directors;
or
(3) evidence of repeated bias or misconduct.
SECTION 5.11. Section 6.42(a), Tax Code, is amended to read
as follows:
(a) A majority of the appraisal review board constitutes a
quorum. The applicable appointing authority prescribed by Section
6.41(d) [local administrative district judge under Subchapter D,
Chapter 74, Government Code,] in the county in which the appraisal
district is established shall select a chairman and a secretary
from among the members of the appraisal review board. The
applicable appointing authority [judge] is encouraged to select as
chairman a member of the appraisal review board, if any, who has a
background in law and property appraisal.
SECTION 5.12. Section 6.425(e), Tax Code, is amended to
read as follows:
(e) Notwithstanding Subsection (d), the chairman of the
appraisal review board may appoint to a special panel described by
this section a member of the appraisal review board who does not
meet the qualifications prescribed by that subsection if:
(1) the number of persons appointed to the board [by
the local administrative district judge] who meet those
qualifications is not sufficient to fill the positions on each
special panel; and
(2) the board member being appointed to the panel
holds a bachelor's degree in any field.
SECTION 5.13. (a) Appraisal district directors shall be
elected to the elective positions as provided by Section 6.0301,
Tax Code, as added by this article, beginning with the election
conducted on the uniform election date in May 2024. The directors
then elected take office on July 1, 2024, and serve a term that
expires on December 31, 2026.
(b) Following the election of the initial elected directors
of an appraisal district as provided by Subsection (a) of this
section, directors shall be elected as provided by Section 6.0301,
Tax Code, as added by this article, beginning with the general
election conducted in November 2026. Directors then elected take
office January 1, 2027.
(c) At the first meeting of the board of directors of an
appraisal district described by Section 6.0301, Tax Code, as added
by this article, that follows the November 2026 general election of
directors under that section, the three elected directors shall
draw lots to determine which director shall serve a term of two
years and which two directors shall serve a term of four years.
Thereafter, all elected directors serve four-year terms.
(d) The term of an appraisal district director serving on
December 31, 2024, on the board of directors of an appraisal
district described by Section 6.0301, Tax Code, as added by this
article, expires on January 1, 2025. Not later than December 31,
2024, the taxing units participating in the appraisal district that
are entitled to appoint directors shall appoint five directors to
serve terms that begin on January 1, 2025. Two directors shall be
appointed to serve a term of one year, and three directors shall be
appointed to serve a term of three years. Thereafter, all appointed
directors serve four-year terms.
ARTICLE 6. TRANSITIONAL TAX YEAR PROVISIONS
SECTION 6.01. Section 25.23, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) This subsection applies only to the appraisal records
for the 2023 tax year. The chief appraiser shall prepare
supplemental appraisal records to account for the changes in law
made by S.B. 2, Acts of the 88th Legislature, 2nd Called Session,
2023. This subsection expires December 31, 2024.
SECTION 6.02. Section 26.04, Tax Code, is amended by adding
Subsections (a-1) and (c-1) to read as follows:
(a-1) On receipt of the appraisal roll for the 2023 tax
year, the assessor for a taxing unit shall determine the total
taxable value of property taxable by the taxing unit and the taxable
value of new property as if the changes in law made by S.B. 2, Acts
of the 88th Legislature, 2nd Called Session, 2023, were in effect
for that tax year. This subsection expires December 31, 2024.
(c-1) An officer or employee designated by the governing
body of a taxing unit shall calculate the no-new-revenue tax rate
and the voter-approval tax rate of the taxing unit for the 2023 tax
year as if the changes in law made by S.B. 2, Acts of the 88th
Legislature, 2nd Called Session, 2023, were in effect for that tax
year. This subsection expires December 31, 2024.
SECTION 6.03. Chapter 26, Tax Code, is amended by adding
Section 26.0401 to read as follows:
Sec. 26.0401. CALCULATION OF CERTAIN TAX RATES FOR 2023 TAX
YEAR. (a) For the purposes of calculating the no-new-revenue tax
rate, the voter-approval tax rate, and any related tax rate for the
2023 tax year, a taxing unit that calculates those rates under a
provision of law other than Section 26.04 or 26.08 shall calculate
those rates as if the changes in law made by S.B. 2, Acts of the 88th
Legislature, 2nd Called Session, 2023, were in effect for that tax
year.
(b) This section expires December 31, 2024.
SECTION 6.04. Section 26.08, Tax Code, is amended by adding
Subsection (q) to read as follows:
(q) For purposes of this section, the voter-approval tax
rate of a school district for the 2023 tax year shall be calculated
as if the changes in law made by S.B. 2, Acts of the 88th
Legislature, 2nd Called Session, 2023, were in effect for that tax
year. This subsection expires December 31, 2024.
SECTION 6.05. Section 26.09, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) The assessor for a taxing unit shall calculate the
amount of tax imposed by the taxing unit on property for the 2023
tax year as if the changes in law made by S.B. 2, Acts of the 88th
Legislature, 2nd Called Session, 2023, were in effect for that tax
year and also as if the changes in law made by that Act were not in
effect for that tax year. This subsection expires December 31,
2024.
SECTION 6.06. Section 26.15, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) The assessor for a taxing unit shall correct the tax
roll for the taxing unit for the 2023 tax year to reflect the
results of the election to approve the constitutional amendment
proposed by H.J.R. 2, 88th Legislature, 2nd Called Session, 2023.
This subsection expires December 31, 2024.
SECTION 6.07. Section 31.01, Tax Code, is amended by adding
Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
(d-2) This subsection and Subsections (d-3) and (d-4) apply
only to taxes imposed by a taxing unit on property for the 2023 tax
year and only if the changes in law made by S.B. 2, Acts of the 88th
Legislature, 2nd Called Session, 2023, would lower the taxes
imposed by the taxing unit on the property for that tax year. The
assessor for the taxing unit shall compute the amount of taxes
imposed and the other information required by this section as if the
changes in law made by S.B. 2, Acts of the 88th Legislature, 2nd
Called Session, 2023, were in effect for that tax year. The tax
bill or the separate statement must indicate that the bill is a
provisional tax bill and include a statement in substantially the
following form:
"If the Texas Legislature had not enacted property tax relief
legislation during the 2023 legislative session, your tax bill
would have been $____ (insert amount of tax bill if the changes in
law made by S.B. 2, Acts of the 88th Legislature, 2nd Called
Session, 2023, were not in effect for that tax year). Because of
action by the Texas Legislature, your tax bill has been lowered by
$____ (insert difference between amount of tax bill if the changes
in law made by S.B. 2, Acts of the 88th Legislature, 2nd Called
Session, 2023, were not in effect for that tax year and amount of
tax bill if that Act were in effect for that tax year), resulting in
a lower tax bill of $____ (insert amount of tax bill if the changes
in law made by S.B. 2, Acts of the 88th Legislature, 2nd Called
Session, 2023, were in effect for that tax year), contingent on the
approval by the voters at an election to be held November 7, 2023,
of the constitutional amendment proposed by H.J.R. 2, 88th
Legislature, 2nd Called Session, 2023. If that constitutional
amendment is not approved by the voters at the election, a
supplemental tax bill in the amount of $____ (insert difference
between amount of tax bill if the changes in law made by S.B. 2,
Acts of the 88th Legislature, 2nd Called Session, 2023, were not in
effect for that tax year and amount of tax bill if that Act were in
effect for that tax year) will be mailed to you."
(d-3) A tax bill prepared by the assessor for a taxing unit
as provided by Subsection (d-2) and mailed as provided by
Subsection (a) is considered to be a provisional tax bill until the
canvass of the votes on the constitutional amendment proposed by
H.J.R. 2, 88th Legislature, 2nd Called Session, 2023. If the
constitutional amendment is approved by the voters, the tax bill is
considered to be a final tax bill for the taxes imposed on the
property for the 2023 tax year, and no additional tax bill is
required to be mailed unless another provision of this title
requires the mailing of a corrected tax bill. If the constitutional
amendment is not approved by the voters:
(1) a tax bill prepared by the assessor as provided by
Subsection (d-2) is considered to be a final tax bill but only as to
the portion of the taxes imposed on the property for the 2023 tax
year that are included in the bill;
(2) the amount of taxes imposed by each taxing unit on
property for the 2023 tax year is calculated as if the changes in
law made by S.B. 2, Acts of the 88th Legislature, 2nd Called
Session, 2023, were not in effect for that tax year; and
(3) except as provided by Subsections (f), (i-1), and
(k), the assessor for each taxing unit shall prepare and mail a
supplemental tax bill, by December 1 or as soon thereafter as
practicable, in an amount equal to the difference between the
amount of the tax bill if the changes in law made by S.B. 2, Acts of
the 88th Legislature, 2nd Called Session, 2023, were not in effect
for that tax year and the amount of the tax bill if that Act were in
effect for that tax year.
(d-4) Except as otherwise provided by Subsection (d-3), the
provisions of this section other than Subsection (d-2) apply to a
supplemental tax bill mailed under Subsection (d-3).
(d-5) This subsection and Subsections (d-2), (d-3), and
(d-4) expire December 31, 2024.
SECTION 6.08. Section 31.02, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) Except as provided by Subsection (b) of this section
and Sections 31.03 and 31.04, taxes for which a supplemental tax
bill is mailed under Section 31.01(d-3) are due on receipt of the
tax bill and are delinquent if not paid before March 1 of the year
following the year in which imposed. This subsection expires
December 31, 2024.
ARTICLE 7. CONTINGENT ON PASSAGE OF FRANCHISE TAX REFORM
LEGISLATION
SECTION 7.01. This Act takes effect only if S.B. 3 or
similar legislation of the 88th Legislature, 2nd Called Session,
2023, relating to the amount of the total revenue exemption for the
franchise tax and the exclusion of certain taxable entities from
the requirement to file a franchise tax report becomes law in a
manner described by Section 2001.006(a)(2), Government Code. If
legislation described by this section does not become law in a
manner described by Section 2001.006(a)(2), Government Code, this
Act has no effect.
ARTICLE 8. EFFECTIVE DATES
SECTION 8.01. Except as provided by Article 7 of this Act,
this Act takes effect as provided by this article.
SECTION 8.02. Except as otherwise provided by this article,
this Act takes effect on the 91st day after the last day of the
legislative session.
SECTION 8.03. Article 2 of this Act takes effect on the date
on which the constitutional amendment proposed by H.J.R. 2, 88th
Legislature, 2nd Called Session, 2023, is approved by the voters.
If that amendment is not approved by the voters, Article 2 of this
Act has no effect.
SECTION 8.04. (a) Except as provided by Subsection (b) of
this section or as otherwise provided by Article 3 of this Act:
(1) Article 3 of this Act takes effect on the date on
which the constitutional amendment proposed by H.J.R. 2, 88th
Legislature, 2nd Called Session, 2023, takes effect; and
(2) if that amendment is not approved by the voters,
Article 3 of this Act has no effect.
(b) Sections 49.004(a-1), (b-1), and (c-1), 49.0042,
49.0121, 49.154(a-2) and (a-3), and 49.308(a-1), Education Code, as
added by Article 3 of this Act, take effect immediately if this Act
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for those sections
to have immediate effect, those sections take effect on the 91st day
after the last day of the legislative session.
SECTION 8.05. Article 4 of this Act takes effect January 1,
2024, but only if the constitutional amendment proposed by
H.J.R. 2, 88th Legislature, 2nd Called Session, 2023, is approved
by the voters. If that amendment is not approved by the voters,
Article 4 of this Act has no effect.
SECTION 8.06. (a) Article 5 of this Act takes effect as
provided by Subsections (b) and (c) of this section, but only if the
constitutional amendment proposed by H.J.R. 2, 88th Legislature,
2nd Called Session, 2023, is approved by the voters. If that
amendment is not approved by the voters, Article 5 of this Act has
no effect.
(b) Except as provided by Subsection (c) of this section,
Article 5 of this Act takes effect July 1, 2024.
(c) Sections 5.04 and 5.13 of this Act take effect on the
91st day after the last day of the legislative session.
SECTION 8.07. Article 6 of this Act takes effect
immediately if this Act receives a vote of two-thirds of all the
members elected to each house, as provided by Section 39, Article
III, Texas Constitution. If this Act does not receive the vote
necessary for that article to have immediate effect, Article 6 of
this Act takes effect on the 91st day after the last day of the
legislative session.