Texas 2025 - 89th Regular

Texas House Bill HB2432 Compare Versions

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1	1	By: Guillen H.B. No. 2432
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to ad valorem taxation.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 1151.152, Occupations Code, is amended
11	11	by adding Subsections (a) and (b) to read as follows:
12	12	Sec. 1151.152. ELIGIBILITY FOR REGISTRATION. (a) Subject
13	13	to Subsection (b), to [To] be eligible for registration, an
14	14	applicant must:
15	15	(1) be at least 18 years of age;
16	16	(2) reside in this state;
17	17	(3) be of good moral character;
18	18	(4) be a graduate of an accredited high school or
19	19	establish high school graduation equivalency; and
20	20	(5) be actively engaged in appraisal, assessment, or
21	21	collection.
22	22	(b) An applicant who is a person described by Section
23	23	1151.151(1) or (2), other than a chief appraiser of an appraisal
24	24	district or a person who holds a license or certification as an
25	25	appraiser under Chapter 1103, must, in addition to the requirements
26	26	of Subsection (a), complete educational qualifications approved by
27	27	the department that are substantially similar to the educational
28	28	qualifications for licensing as an appraiser trainee under Chapter
29	29	1103.
30	30	SECTION 2. Section 403.302, Government Code, is amended by
31	31	amending Subsection (a) and adding Subsection (b-1) to read as
32	32	follows:
33	33	(a) The comptroller shall conduct a study using comparable
34	34	sales and generally accepted auditing and sampling techniques to
35	35	determine the total taxable value of all property in each school
36	36	district. The study shall determine the taxable value of all
37	37	property and of each category of property in the district and the
38	38	productivity value of all land that qualifies for appraisal on the
39	39	basis of its productive capacity and for which the owner has applied
40	40	for and received a productivity appraisal. In each study, the
41	41	comptroller shall determine the taxable value of every category of
42	42	property in the district. The comptroller may not decline to study
43	43	a category of property unless the district does not have any
44	44	property in that category. The comptroller shall make appropriate
45	45	adjustments in the study to account for actions taken under Chapter
46	46	49, Education Code.
47	47	(b-1) If the comptroller conducts a physical inspection of a
48	48	property in connection with a study, the appraisal district that
49	49	appraises property for the school district is entitled to have a
50	50	representative present during the inspection. The comptroller must
51	51	provide notice of the inspection to the appraisal district not
52	52	later than the 14th day before the date the inspection occurs.
53	53	SECTION 3. Section 1.111, Tax Code, is amended by amending
54	54	Subsection (d) and adding Subsection (d-1) to read as follows:
55	55	(d) Except as provided by Subsection (d-1), a [A] property
56	56	owner may not designate more than one agent to represent the
57	57	property owner in connection with an item of property. The
58	58	designation of an agent in connection with an item of property
59	59	revokes any previous designation of an agent in connection with
60	60	that item of property.
61	61	(d-1) A property owner may designate a different agent to
62	62	represent the property owner in connection with an item of property
63	63	in a different tax year without revoking any previous designation
64	64	of an agent in connection with the same item of property in a
65	65	previous tax year.
66	66	SECTION 4. Section 5.07, Tax Code, is amended by adding
67	67	Subsection (k) to read as follows:
68	68	(k) The comptroller shall prescribe the form that an
69	69	appraisal review board shall use to make a determination required
70	70	to be made by written order under this title. The form must require
71	71	an appraisal review board to include for the property subject to the
72	72	order the property owner's name, the property's identification
73	73	number, the property's legal description and physical address, and
74	74	any other information the comptroller determines necessary. The
75	75	comptroller shall post the form on the comptroller's Internet
76	76	website.
77	77	SECTION 5. Section 6.052, Tax Code, is amended by adding
78	78	Subsection (a-1) to read as follows:
79	79	(a-1) Notwithstanding the requirements of Subsection (a),
80	80	the chief appraiser of an appraisal district shall designate an
81	81	independent ombudsman to provide free assistance to property owners
82	82	who are 65 years of age or older in connection with motions to
83	83	correct an appraisal roll Section 25.25, or protests under
84	84	Subchapter C, Chapter 41.
85	85	SECTION 6. Section 11.161, Tax Code, is amended by adding
86	86	Subsections (c) and (d) to read as follows:
87	87	(c) For purposes of Subsection (a), farm or ranch products
88	88	may be produced by hydroponic farming.
89	89	(d) For purposes of Subsection (a), buildings and
90	90	greenhouses used for the growth or production of hydroponic farming
91	91	products at a hydroponic farm facility are considered to be
92	92	implements of husbandry.
93	93	SECTION 7. Section 11.24, Tax Code, is amended by adding
94	94	Subsection (c) to read as follows:
95	95	(c) For purposes of a structure or archeological site and
96	96	land subject to an exemption under this section, the property owner
97	97	may protest the appraised value of the structure or archeological
98	98	site and the appraised value of the land separately. A property
99	99	owner may protest the allocation of appraised value between the
100	100	structure or archeological site and the land.
101	101	SECTION 8. Section 11.43(i), Tax Code, is amended to read as
102	102	follows:
103	103	(i) If the chief appraiser discovers that an exemption that
104	104	is not required to be claimed annually has been erroneously allowed
105	105	in any one of the three [five] preceding years for real property, or
106	106	in either of the two preceding years for personal property, the
107	107	chief appraiser shall add the property or appraised value that was
108	108	erroneously exempted for each year to the appraisal roll as
109	109	provided by Section 25.21 of this code for other property that
110	110	escapes taxation. If an exemption that was erroneously allowed did
111	111	not apply to all taxing units in which the property was located, the
112	112	chief appraiser shall note on the appraisal records, for each prior
113	113	year, the taxing units that gave the exemption and are entitled to
114	114	impose taxes on the property or value that escaped taxation.
115	115	SECTION 9. Section 11.4391(b), Tax Code, is amended to read
116	116	as follows:
117	117	(b) If the application is approved, the property owner is
118	118	liable to each taxing unit allowing the exemption for a penalty in
119	119	an amount equal to 10 percent of the difference between the amount
120	120	of tax imposed by the taxing unit on the inventory or property, a
121	121	portion of which consists of freeport goods, and the amount that
122	122	would otherwise have been imposed up to a maximum penalty of 10
123	123	percent of the tax imposed with the exemption.
124	124	SECTION 10. Subchapter C, Chapter 11, Tax Code, is amended
125	125	by adding Section 11.4392 to read as follows:
126	126	Sec. 11.4392. LATE APPLICATION FOR PROPERTY EXEMPTED FROM
127	127	TAXATION BY AGREEMENT. The chief appraiser shall accept and
128	128	approve or deny an application for an exemption a person is entitled
129	129	to receive under Section 11.28 or an agreement entered into under
130	130	Chapter 312 after the deadline for filing it has passed if it is
131	131	filed on or before June 15.
132	132	SECTION 11. Section 21.10(b), Tax Code, is amended to read
133	133	as follows:
134	134	(b) If the application is approved, the property owner is
135	135	liable to each taxing unit for a penalty in an amount equal to 10
136	136	percent of the difference between the amount of tax imposed by the
137	137	taxing unit on the property without the allocation and the amount of
138	138	tax imposed on the property with the allocation up to a maximum
139	139	penalty of 10 percent of the tax imposed with the allocation.
140	140	SECTION 12. Section 22.27(a), Tax Code, is amended to read
141	141	as follows:
142	142	(a) Rendition statements, real and personal property
143	143	reports, attachments to those statements and reports, and other
144	144	information the owner of property provides to the appraisal office
145	145	in connection with the appraisal of the property, including income
146	146	and expense information related to a property filed with an
147	147	appraisal office and information voluntarily disclosed to an
148	148	appraisal office or the comptroller about real or personal property
149	149	sales prices [after a promise it will be held confidential], are
150	150	confidential and not open to public inspection. The statements and
151	151	reports and the information they contain about specific real or
152	152	personal property or a specific real or personal property owner and
153	153	information voluntarily disclosed to an appraisal office about real
154	154	or personal property sales prices [after a promise it will be held
155	155	confidential] may not be disclosed to anyone other than an employee
156	156	of the appraisal office who appraises property except as authorized
157	157	by Subsection (b) of this section.
158	158	SECTION 13. Section 22.28, Tax Code, is amended by amending
159	159	the title and Subsections (a) and (b) to read as follows:
160	160	Sec. 22.28 PENALTY FOR DELINQUENT RENDITION OR REPORT;
161	161	PENALTY COLLECTION PROCEDURES. (a) Except as otherwise provided
162	162	by Section 22.30, the chief appraiser shall impose a penalty on a
163	163	person who fails to timely file a rendition statement or property
164	164	report required by this chapter in an amount equal to five [10]
165	165	percent of the total amount of taxes imposed on the property for
166	166	that year by taxing units participating in the appraisal district.
167	167	The chief appraiser shall deliver by first class mail a notice of
168	168	the imposition of the penalty to the person. The notice may be
169	169	delivered with, but not included in, a notice of appraised value
170	170	provided under Section 25.19, if practicable.
171	171	(b) The chief appraiser shall certify to the assessor for
172	172	each taxing unit participating in the appraisal district that
173	173	imposes taxes on the property that a penalty imposed under this
174	174	chapter has become final. The assessor shall add the amount of the
175	175	penalty to the original amount of tax imposed on the property and
176	176	shall include the penalty as a separate line item entitled "PENALTY
177	177	FOR DELINQUENT RENDITION OR REPORT"that amount in the tax bill for
178	178	that year. The penalty becomes part of the tax on the property and
179	179	is secured by the tax lien that attaches to the property under
180	180	Section 32.01.
181	181	SECTION 14. Section 22.30, Tax Code, is amended by adding
182	182	Subsection (a-2) to read as follows:
183	183	(a-2) The chief appraiser shall waive the penalty imposed by
184	184	Section 22.28 if the property owner has not previously filed a
185	185	delinquent rendition statement or property report for that parcel
186	186	of property.
187	187	SECTION 15. Section 23.01, Tax Code, is amended by amending
188	188	Subsection (f) and adding Subsection (d-1) to read as follows:
189	189	(d-1) The market value of a residential property or vacant
190	190	lot that is adjacent only to other residential properties, or a
191	191	combination of residential properties and vacant lots, shall be
192	192	determined solely on the basis of the property's value as a
193	193	residential property, regardless of whether:
194	194	(1) the property could legally be used for another
195	195	purpose; or
196	196	(2) the residential use of the property is considered
197	197	to be the highest and best use of the property.
198	198	(f) The selection of comparable properties and the
199	199	application of appropriate adjustments for the determination of an
200	200	appraised value of property by any person under Section 41.43(b)(3)
201	201	or (4) or 42.26(a)(3) or (4) must be based on the application of
202	202	generally accepted appraisal methods and techniques. Adjustments
203	203	must be based on recognized methods and techniques that are
204	204	necessary to produce a credible opinion.
205	205	SECTION 16. Section 23.51(2), Tax Code, is amended to read
206	206	as follows:
207	207	(2) "Agricultural use" includes but is not limited to
208	208	the following activities: cultivating the soil, producing crops for
209	209	human food, animal feed, or planting seed or for the production of
210	210	fibers; floriculture, viticulture, and horticulture; raising or
211	211	keeping livestock; raising or keeping exotic animals for the
212	212	production of human food or of fiber, leather, pelts, or other
213	213	tangible products having a commercial value; planting cover crops
214	214	or leaving land idle for the purpose of participating in a
215	215	governmental program, provided the land is not used for residential
216	216	purposes or a purpose inconsistent with agricultural use; and
217	217	planting cover crops or leaving land idle in conjunction with
218	218	normal crop or livestock rotation procedure. The term also
219	219	includes the use of land to produce or harvest logs and posts for
220	220	the use in constructing or repairing fences, pens, barns, or other
221	221	agricultural improvements on adjacent qualified open-space land
222	222	having the same owner and devoted to a different agricultural use.
223	223	The term also includes the use of land for wildlife management. The
224	224	term also includes the use of land to raise or keep bees for
225	225	pollination or for the production of human food or other tangible
226	226	products having a commercial value, provided that the land used is
227	227	not less than 5 or more than 20 acres. The term also includes the
228	228	use of land for hydroponic farming.
229	229	SECTION 17. Section 23.52, Tax Code, is amended by adding
230	230	Subsection (h) to read as follows:
231	231	(h) The chief appraiser may appraise a portion of a parcel
232	232	of land according to this chapter if the portion qualifies for
233	233	appraisal under this subchapter but the remainder of the parcel
234	234	does not.
235	235	SECTION 18. Subchapter D, Chapter 23, Tax Code, is amended
236	236	by adding Section 23.527 to read as follows:
237	237	Sec. 23.527. ELIGIBILITY OF LAND PREVIOUSLY DEVOTED TO
238	238	SOLAR OR WIND POWER FACILITY. (a) In this section:
239	239	(1) "Solar power facility" has the meaning assigned by
240	240	Section 302.0001, Utilities Code.
241	241	(2) "Wind power facility" has the meaning assigned by
242	242	Section 301.0001, Utilities Code.
243	243	(b) This section applies only to land:
244	244	(1) that was previously appraised as qualified
245	245	open-space land as provided by this subchapter;
246	246	(2) that became ineligible for appraisal as provided
247	247	by this subchapter due to a change of use caused by the development
248	248	of a solar power facility or a wind power facility on the land;
249	249	(3) on which the solar power facility or wind power
250	250	facility described by Subdivision (2) is no longer in operation;
251	251	and
252	252	(4) that is currently devoted principally to
253	253	agricultural use to the degree of intensity generally accepted in
254	254	the area.
255	255	(c) Notwithstanding any other provision of this subchapter,
256	256	land described by Subsection (b) is qualified open-space land.
257	257	SECTION 19. Section 25.19(f), Tax Code, is amended to read
258	258	as follows:
259	259	(f) In the notice of appraised value for real property, the
260	260	chief appraiser shall list separately:
261	261	(1) the market value of the land; [and]
262	262	(2) the market value of each structure and other
263	263	improvement identified in the notice; and
264	264	(3) the total market value of the structures and other
265	265	improvements on the property.
266	266	SECTION 20. Section 25.25, Tax Code, is amended by adding
267	267	Subsection (q) to read as follows:
268	268	(q) An appraisal review board shall issue a written order
269	269	under this section using the form prescribed by the comptroller
270	270	under Section 5.07(k).
271	271	SECTION 21. Chapter 25, Tax Code, is amended by adding
272	272	Section 25.255 to read as follows:
273	273	Sec. 25.255. EXACT CORRECTION OF ROLL. A chief appraiser
274	274	that corrects the appraisal roll to include the appraised value of
275	275	property, including as determined by an appraisal review board
276	276	under Chapter 25.25 or Chapter 41, or a district court under Chapter
277	277	42, must correct the roll to show the exact dollar amount of the new
278	278	appraised value.
279	279	SECTION 22. Section 26.09, Tax Code, is amended by amending
280	280	Subsection (d) and adding Subsection (d-3) to read as follows:
281	281	(d) If a property is subject to taxation for a prior year in
282	282	which it escaped taxation, the assessor shall calculate the tax for
283	283	each year separately. In calculating the tax, the assessor shall
284	284	use the assessment ratio and tax rate in effect in the taxing unit
285	285	for the year for which back taxes are being imposed. Except as
286	286	provided by Subsections [Subsection] (d-1) and (d-3), the amount of
287	287	back taxes due incurs interest calculated at the rate provided by
288	288	Section 33.01(c) from the date the tax would have become delinquent
289	289	had the tax been imposed in the proper tax year.
290	290	(d-3) Back taxes assessed under Subsection (d) on property a
291	291	chief appraiser discovers was omitted from an appraisal roll under
292	292	Section 25.21 do not incur interest as required by Subsection (d).
293	293	SECTION 23. Section 26.17(b) and (e), Tax Code, are amended
294	294	to read as follows:
295	295	(b) The database must include, with respect to each property
296	296	listed on the appraisal roll for the appraisal district:
297	297	(1) the property's identification number;
298	298	(2) the property's market value;
299	299	(3) the market value of each structure and other
300	300	improvement located on the property that is identified in the
301	301	notice of appraised value under Section 25.19;
302	302	(4) the property's taxable value;
303	303	(5) [(4)] the name of each taxing unit in which the
304	304	property is located;
305	305	(6) [(5)] for each school district in which the
306	306	property is located:
307	307	(A) the no-new-revenue tax rate; and
308	308	(B) the voter-approval tax rate;
309	309	(7) [(6)] for each school district in which the
310	310	property is located:
311	311	(A) the tax rate that would maintain the same
312	312	amount of state and local revenue per student that the district
313	313	received in the school year beginning in the preceding tax year; and
314	314	(B) the voter-approval tax rate;
315	315	(8) [(7)] the tax rate proposed by the governing body
316	316	of each taxing unit in which the property is located;
317	317	(9) [(8)] for each taxing unit other than a school
318	318	district in which the property is located, the taxes that would be
319	319	imposed on the property if the taxing unit adopted a tax rate equal
320	320	to:
321	321	(A) the no-new revenue tax rate; and
322	322	(B) the proposed tax rate;
323	323	(10) [(9)] for each school district in which the
324	324	property is located, the taxes that would be imposed on the property
325	325	if the district adopted a tax rate equal to:
326	326	(A) the tax rate that would maintain the same
327	327	amount of state and local revenue per student that the district
328	328	received in the school year beginning in the preceding tax year; and
329	329	(B) the proposed tax rate;
330	330	(11) [(10)] for each taxing unit other than a school
331	331	district in which the property is located, the difference between
332	332	the amount calculated under Subdivision (9)(A) [(8)(A)] and the
333	333	amount calculated under Subdivision (9)(B) [(8)(B)];
334	334	(12) [(11)] for each school district in which the
335	335	property is located, the difference between the amount calculated
336	336	under Subdivision (10)(A) [(9)(A)] and the amount calculated under
337	337	Subdivision (10)(B) [(9)(B)];
338	338	(13) [(12)] the date, time, and location of the public
339	339	hearing, if applicable, on the proposed tax rate to be held by the
340	340	governing body of each taxing unit in which the property is located;
341	341	(14) [(13)] the date, time, and location of the public
342	342	meeting, if applicable, at which the tax rate will be adopted to be
343	343	held by the governing body of each taxing unit in which the property
344	344	is located; and
345	345	(15) [(14)] for each taxing unit in which the property
346	346	is located, an e-mail address at which the taxing unit is capable of
347	347	receiving written comments regarding the proposed tax rate of the
348	348	taxing unit.
349	349	(e) The officer or employee designated by the governing body
350	350	of each taxing unit in which the property is located to calculate
351	351	the no-new-revenue tax rate and the voter-approval tax rate for the
352	352	taxing unit must electronically incorporate into the database:
353	353	(1) the information described by Subsections (b)(6)
354	354	[(b)(5), (6)], (7), (8), [(12), and] (13), and (14), as applicable,
355	355	as the information becomes available; and
356	356	(2) the tax rate calculation forms prepared under
357	357	Section 26.04(d-1) at the same time the designated officer or
358	358	employee submits the tax rates to the governing body of the taxing
359	359	unit under Section 26.04(e).
360	360	SECTION 24. Section 31.01(c), Tax Code, is amended to read
361	361	as follows:
362	362	(c) The tax bill or a separate statement accompanying the
363	363	tax bill shall:
364	364	(1) identify the property subject to the tax;
365	365	(2) state the appraised value, assessed value, and
366	366	taxable value of the property, which must be exact and not rounded
367	367	numbers;
368	368	(3) if the property is land appraised as provided by
369	369	Subchapter C, D, E, or H, Chapter 23, state the market value and the
370	370	taxable value for purposes of deferred or additional taxation as
371	371	provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
372	372	(4) state the assessment ratio for the unit;
373	373	(5) state the type and amount of any partial exemption
374	374	applicable to the property, indicating whether it applies to
375	375	appraised or assessed value;
376	376	(6) state the total tax rate for the unit;
377	377	(7) state the amount of tax due, the due date, and the
378	378	delinquency date;
379	379	(8) explain the payment option and discounts provided
380	380	by Sections 31.03 and 31.05, if available to the unit's taxpayers,
381	381	and state the date on which each of the discount periods provided by
382	382	Section 31.05 concludes, if the discounts are available;
383	383	(9) state the rates of penalty and interest imposed
384	384	for delinquent payment of the tax;
385	385	(10) include the name and telephone number of the
386	386	assessor for the unit and, if different, of the collector for the
387	387	unit;
388	388	(11) for real property, state for the current tax year
389	389	and each of the preceding five tax years:
390	390	(A) the appraised value and taxable value of the
391	391	property;
392	392	(B) the total tax rate for the unit;
393	393	(C) the amount of taxes imposed on the property
394	394	by the unit; and
395	395	(D) the difference, expressed as a percent
396	396	increase or decrease, as applicable, in the amount of taxes imposed
397	397	on the property by the unit compared to the amount imposed for the
398	398	preceding tax year; [and]
399	399	(12) for real property, state the differences,
400	400	expressed as a percent increase or decrease, as applicable, in the
401	401	following for the current tax year as compared to the fifth tax year
402	402	before that tax year:
403	403	(A) the appraised value and taxable value of the
404	404	property;
405	405	(B) the total tax rate for the unit; and
406	406	(C) the amount of taxes imposed on the property
407	407	by the unit; and
408	408	(13) include the appraisal district account number for
409	409	the property.
410	410	SECTION 25. Section 33.41, Tax Code, is amended by amending
411	411	Subsection (a) and adding Subsection (a-1) to read as follows:
412	412	Sec. 33.41. SUIT TO COLLECT DELINQUENT TAX. (a) Except as
413	413	provided by Subsection (a-1), at [At] any time after its tax on
414	414	property becomes delinquent, a taxing unit may file suit to
415	415	foreclose the lien securing payment of the tax, to enforce personal
416	416	liability for the tax, or both. The suit must be in a court of
417	417	competent jurisdiction for the county in which the tax was imposed.
418	418	(a-1) A taxing unit may not file suit under Subsection (a)
419	419	to collect a delinquent tax owed on a property that is the subject
420	420	of a pending motion filed under Section 25.25(c).
421	421	SECTION 26. Section 41.07(a), Tax Code, is amended to read
422	422	as follows:
423	423	(a) The appraisal review board shall determine each
424	424	challenge and make its decision by written order using the form
425	425	prescribed by the comptroller under Section 5.07(k). The appraisal
426	426	review board shall issue a written order to the property owner
427	427	immediately upon its determination of the property owner's
428	428	challenge.
429	429	SECTION 27. Section 41.43(b), Tax Code, is amended to read
430	430	as follows:
431	431	(b) A protest on the ground of unequal appraisal of property
432	432	shall be determined in favor of the protesting party unless the
433	433	appraisal district establishes that:
434	434	(1) the appraisal ratio of the property is equal to or
435	435	less than the median level of appraisal of a reasonable and
436	436	representative sample of other properties in the appraisal
437	437	district;
438	438	(2) the appraisal ratio of the property is equal to or
439	439	less than the median level of appraisal of a sample of properties in
440	440	the appraisal district consisting of a reasonable number of other
441	441	properties similarly situated to, or of the same general kind or
442	442	character as, the property subject to the protest; [or]
443	443	(3) the appraised value of the property is equal to or
444	444	less than the median appraised value of a reasonable number of
445	445	comparable properties, appropriately adjusted; or
446	446	(4) the appraised value of the property is equal to or
447	447	less than 110 percent of the appraised value of the comparable
448	448	property, appropriately adjusted, with the lowest appraised value.
449	449	SECTION 28. Section 41.45(b), Tax Code, is amended to read
450	450	as follows:
451	451	(b) A property owner initiating a protest is entitled to
452	452	appear in-person to offer evidence or argument, and may not be
453	453	denied a hearing at which the property owner and chief appraiser are
454	454	both present in-person. A property owner may offer evidence or
455	455	argument by affidavit without personally appearing and may appear
456	456	by telephone conference call or videoconference to offer argument.
457	457	A property owner who appears by telephone conference call or
458	458	videoconference must offer any evidence by affidavit. A property
459	459	owner must submit an affidavit described by this subsection to the
460	460	board hearing the protest before the board begins the hearing on the
461	461	protest. On receipt of an affidavit, the board shall notify the
462	462	chief appraiser. The chief appraiser may inspect the affidavit and
463	463	is entitled to a copy on request.
464	464	SECTION 29. Section 41.47(a), Tax Code, is amended to read
465	465	as follows:
466	466	(a) The appraisal review board hearing a protest shall
467	467	determine the protest and make its decision by written order using
468	468	the form prescribed by the comptroller under Section 5.07(k).
469	469	SECTION 30. Section 41.66(i), Tax Code, is amended to read
470	470	as follows:
471	471	(i) A hearing on a protest filed by a property owner or the
472	472	designated agent of the owner shall be set for a time and date
473	473	certain. If the hearing is not commenced within two hours of the
474	474	time set for the hearing, the appraisal review board shall postpone
475	475	the hearing on the request of the property owner or the designated
476	476	agent of the owner. If the property owner or the designated agent
477	477	of the owner does not request that the hearing be postponed, the
478	478	appraisal review board shall hold the hearing at the earliest
479	479	possible time but not later than 24 hours after the time for which
480	480	the hearing was originally set.
481	481	SECTION 31. Section 41.67, Tax Code, is amended by adding
482	482	Subsection (f) to read as follows:
483	483	(f) A property owner may submit evidence electronically at
484	484	any point before or during a hearing.
485	485	SECTION 32. Section 41A.09, Tax Code, is amended by adding
486	486	Subsection (f) to read as follows:
487	487	(f) The arbitrator may not determine the appraised value of
488	488	the property that is the subject of an arbitration to be an amount
489	489	greater than the appraised value of the property as shown in the
490	490	appraisal records submitted to the appraisal review board by the
491	491	chief appraiser under Section 25.22 or 25.23, except as requested
492	492	and agreed to by the property owner.
493	493	SECTION 33. Section 42.01, Tax Code, is amended by adding
494	494	Subsection (d) to read as follows:
495	495	(d) Notwithstanding Subsection (a), a person who owned
496	496	property at any time during a tax year but no longer owns the
497	497	property is entitled to file an appeal under this chapter as if the
498	498	person were the current owner of the property, regardless of
499	499	whether the person is the person subject to an order described by
500	500	that subsection.
501	501	SECTION 34. Section 42.21, Tax Code, is amended by amending
502	502	Subsections (a), (b), and (c) and adding Subsections (a-1) and
503	503	(a-2) to read as follows:
504	504	(a) A party who appeals as provided by this chapter must
505	505	file a petition for review with the district court not later than
506	506	the later of:
507	507	(1) the 60th day [within 60 days] after the date the
508	508	party receives [received] notice that a final order has been
509	509	entered from which the [an] appeal may be had; or
510	510	(2) September 1 of the year in which the final order is
511	511	entered [at any time after the hearing but before the 60-day
512	512	deadline].
513	513	(a-1) Subject to Subsection (a), a party may file a petition
514	514	for review under this section at any time after:
515	515	(1) the protest hearing, regardless of whether the
516	516	party has received notice that a final order has been entered;
517	517	(2) notifying the appraisal review board that the
518	518	chief appraiser and the party have agreed to a disposition of the
519	519	protest and requesting the board to issue an agreed order under
520	520	Section 41.47(g) or (g-1); or
521	521	(3) submitting an affidavit to the board hearing the
522	522	protest under Section 41.45(b).
523	523	(a-2) Failure to timely file a petition bars any appeal
524	524	under this chapter.
525	525	(b) [A petition for review brought under Section 42.02 must
526	526	be brought against the owner of the property involved in the
527	527	appeal.] A petition for review brought under Section 42.031 must be
528	528	brought against the appraisal district and against the owner of the
529	529	property involved in the appeal. A petition for review brought
530	530	under Section 42.01(a)(2) or 42.03 must be brought against the
531	531	comptroller. Any other petition for review under this chapter must
532	532	be brought against the appraisal district. A petition for review
533	533	may not be brought against the appraisal review board. An appraisal
534	534	district may hire an attorney that represents the district to
535	535	represent the appraisal review board established for the district
536	536	to file an answer and obtain a dismissal of a suit filed against the
537	537	appraisal review board in violation of this subsection.
538	538	(c) If an appeal under this chapter is pending when the
539	539	appraisal review board issues an order in a subsequent year under a
540	540	protest by the same property owner and that protest relates to the
541	541	same property that is involved in the pending appeal, the property
542	542	owner may appeal the subsequent appraisal review board order by
543	543	amending the original petition for the pending appeal to include
544	544	the grounds for appealing the subsequent order. The amended
545	545	petition must be filed with the court not later than the 90th day
546	546	after the date the property owner receives notice that a final order
547	547	has been entered from which an appeal may be had [in the period
548	548	provided by Subsection (a) for filing a petition for review of the
549	549	subsequent order]. A property owner may appeal the subsequent
550	550	appraisal review board order under this subsection or may appeal
551	551	the order independently of the pending appeal as otherwise provided
552	552	by this section, but may not do both. A property owner may change
553	553	the election of remedies provided by this subsection at any time
554	554	before the end of the period provided by Subsection (a) for filing a
555	555	petition for review.
556	556	SECTION 35. Section 42.225, Tax Code, is amended by
557	557	amending the title and adding subsection (g) to read as follows:
558	558	Sec. 42.225 PROPERTY OWNER'S RIGHT TO APPEAL THROUGH
559	559	ARBITRATION AND SOAH.
560	560	(g) If within one year of the filing of an appeal in district
561	561	court, the court dismisses the appeal on a basis other than a plea
562	562	to the jurisdiction or the court sets the case for trial and will
563	563	not grant a continuance for a period of at least four months, the
564	564	property owner may file an appeal at the State Office of
565	565	Administrative Hearings (SOAH) or file for Binding Arbitration
566	566	without regard to the jurisdiction limits.
567	567	SECTION 36. Section 42.226, Tax Code, is amended to read as
568	568	follows:
569	569	Sec. 42.226. MEDIATION. (a) On motion by a party to an
570	570	appeal under this chapter, the court shall enter an order requiring
571	571	the parties to attend mediation. The court may enter an order
572	572	requiring the parties to attend mediation on its own motion.
573	573	(b) The court may not order mediation to be completed more
574	574	than 45 days before the first day of trial.
575	575	(c) The court may not order the parties to attend more than
576	576	one mediation.
577	577	SECTION 37. Section 42.23, Tax Code, is amended by amending
578	578	Subsection (e) and adding Subsections (a-1), (a-2), (i), (j), (k),
579	579	(l), (m), and (n), to read as follows:
580	580	(a-1) A chief appraiser, appraisal district, or appraisal
581	581	review board may not bring a counterclaim in an appeal brought
582	582	under this chapter.
583	583	(a-2) An appraisal district may not seek affirmative relief
584	584	in an appeal brought under this chapter.
585	585	(e) For purposes of Subsection (d), a property owner may
586	586	designate a cause of action under Section 42.25 or 42.26 as the
587	587	basis for an appeal, but may not designate a cause of action under
588	588	both sections as the basis for the appeal. Discovery regarding a
589	589	cause of action that is not specifically designated by the property
590	590	owner under Subsection (d) shall be conducted as provided by the
591	591	Texas Rules of Civil Procedure. [A court may not enter an order,
592	592	including a protective order under Rule 192.6 of the Texas Rules of
593	593	Civil Procedure, that conflicts with Subsection (d).]
594	594	(i) An entity is not required to be registered to do
595	595	business in this state in order to file an appeal under this
596	596	chapter or to be considered a proper party to bring a petition. A
597	597	formal or informal request for information regarding an entity's
598	598	registration status:
599	599	(1) is outside the scope of permissible discovery in
600	600	an appeal under this chapter;
601	601	(2) may not be made a prerequisite to a settlement
602	602	discussion related to that appeal; and
603	603	(3) may be grounds for sanctions by the court on the
604	604	motion of a party.
605	605	(j) A court may not enter an order, including a protective
606	606	order under Rule 192.6 of the Texas Rules of Civil Procedure, that
607	607	conflicts with this section.
608	608	(k) The district court may not order discovery unless
609	609	discovery is requested by a party to the appeal and the court
610	610	determines there is good cause for discovery.
611	611	(l) Except as provided by Section 42.227 or by agreement of
612	612	the parties, the following deadlines apply to an appeal under this
613	613	chapter:
614	614	(1) the discovery period ends on the 30th day before
615	615	the date of trial;
616	616	(2) a party seeking affirmative relief must designate
617	617	testifying expert witnesses, other than rebuttal testifying expert
618	618	witnesses, and provide the information listed in Rule 195.5 of the
619	619	Texas Rules of Civil Procedure not later than the 90th day before
620	620	the date of trial; and
621	621	(3) any other party must designate testifying expert
622	622	witnesses, other than rebuttal testifying expert witnesses, and
623	623	provide the information listed in Rule 195.5 of the Texas Rules of
624	624	Civil Procedure not later than the 60th day before the date of
625	625	trial.
626	626	(m) A party to an appeal under this chapter may file an
627	627	objection to third-party discovery. The court shall grant
628	628	third-party discovery subject to the objection only if the
629	629	discovery:
630	630	(1) is necessary under generally accepted appraisal
631	631	methods and techniques to determine the value of the property that
632	632	is the subject of the appeal; and
633	633	(2) would be admissible at trial.
634	634	(n) A party to an appeal under Section 42.26 may file an
635	635	objection to a discovery request for a closing statement, a rent
636	636	roll, or an operating statement. The court shall grant the
637	637	discovery request subject to the objection only if the discovery:
638	638	(1) is necessary under generally accepted appraisal
639	639	methods and techniques to determine the value of the property that
640	640	is the subject of the appeal; and
641	641	(2) would be admissible at trial.
642	642	SECTION 38. Subchapter B, Chapter 42, Tax Code, is amended
643	643	by adding Sections 42.232 and 42.233 to read as follows:
644	644	Sec. 42.232. TRIAL DATE. (a) A district court may not set a
645	645	trial date on an appeal that is less than 12 months after the date
646	646	the appeal is filed, unless the parties agree to an earlier trial
647	647	date.
648	648	(b) On request of a party to an appeal, the district court
649	649	shall:
650	650	(1) grant a continuance if the party requesting the
651	651	continuance has not previously been granted a continuance;
652	652	(2) set a new trial date that is not less than six
653	653	months after the date for which the trial was set at the time the
654	654	request was made; and
655	655	(3) extend all litigation, expert witness
656	656	designation, and discovery deadlines consistent with section
657	657	42.23(l) or as agreed by the parties.
658	658	(c) The district court may grant additional trial
659	659	continuances at the court's discretion.
660	660	Sec. 42.233. TRANSFER OF APPEAL TO STATE OFFICE OF
661	661	ADMINISTRATIVE HEARINGS. On request of a property owner who is a
662	662	party to an appeal under this chapter and who was eligible to file
663	663	the appeal under Subchapter Z, Chapter 2003, Government Code, the
664	664	district court shall transfer the appeal to the State Office of
665	665	Administrative Hearings to determine the appeal under that
666	666	subchapter. The property owner must make the request not later than
667	667	the 30th day before the date on which the trial is originally set to
668	668	begin.
669	669	SECTION 39. Section 42.26, Tax Code, is amended by amending
670	670	Subsection (a) and adding Subsections (e) and (f) to read as
671	671	follows:
672	672	(a) The district court shall grant relief on the ground that
673	673	a property is appraised unequally if:
674	674	(1) the appraisal ratio of the property exceeds by at
675	675	least 10 percent the median level of appraisal of a reasonable and
676	676	representative sample of other properties in the appraisal
677	677	district;
678	678	(2) the appraisal ratio of the property exceeds by at
679	679	least 10 percent the median level of appraisal of a sample of
680	680	properties in the appraisal district consisting of a reasonable
681	681	number of other properties similarly situated to, or of the same
682	682	general kind or character as, the property subject to the appeal;
683	683	[or]
684	684	(3) the appraised value of the property exceeds the
685	685	median appraised value of a reasonable number of comparable
686	686	properties, appropriately adjusted; or
687	687	(4) the appraised value of the property exceeds by at
688	688	least 10 percent the appraised value of the comparable property,
689	689	appropriately adjusted, with the lowest appraised value.
690	690	(e) A district court may not determine the appraised value
691	691	of the property that is subject to an appeal under this section to
692	692	be an amount greater than the appraised value of the property as
693	693	shown in the appraisal records submitted to the board by the chief
694	694	appraiser under Section 25.22 or 25.23.
695	695	(f) If a claim that a property is appraised unequally is the
696	696	sole cause of action in an appeal, the appraisal district may not
697	697	request through discovery financial information related to the
698	698	property, including a rent roll or appraisal.
699	699	SECTION 40. Section 42.41(b), Tax Code, is amended to read
700	700	as follows:
701	701	(b) The assessor for each affected taxing unit shall correct
702	702	the tax roll and other appropriate records for which the assessor is
703	703	responsible. The assessor must correct the tax roll to indicate the
704	704	exact dollar amount of the corrected value.
705	705	SECTION 41. Sections 42.43(b-1), (f), and (g), Tax Code,
706	706	are amended to read as follows:
707	707	(b-1) A taxing unit may not send a refund made under this
708	708	section before the earlier of:
709	709	(1) the 60th [21st] day after the final determination
710	710	of the appeal; or
711	711	(2) the date the property owner files the form
712	712	prescribed by Subsection (i) with the taxing unit.
713	713	(f) The final judgment in an appeal under this chapter shall
714	714	[may] designate to whom and where a refund is to be sent if the
715	715	property owner or the property owner's agent designated under
716	716	Section 1.111 files the form required under Subsection (i).
717	717	(g) If a form prescribed by the comptroller under Subsection
718	718	(i) is filed with a taxing unit before the 60th [21st] day after the
719	719	final determination of an appeal that requires a refund be made, the
720	720	taxing unit shall send the refund to the person and address
721	721	designated on the form.
722	722	SECTION 42. Section 42.02, Tax Code, is repealed.
723	723	SECTION 43. As soon as practicable after the effective date
724	724	of this Act, the Texas Commission of Licensing and Regulation shall
725	725	adopt rules necessary to implement Section 1151.152, Occupations
726	726	Code, as amended by this Act.
727	727	SECTION 44. Section 1151.152, Occupations Code, as amended
728	728	by this Act, applies only to a person who submits an application to
729	729	register under Chapter 1151, Occupations Code, on or after the
730	730	effective date of this Act. A person who submits an application to
731	731	register under Chapter 1151, Occupations Code, before the effective
732	732	date of this Act is governed by the law in effect on the date the
733	733	application was submitted, and the former law is continued in
734	734	effect for that purpose.
735	735	SECTION 45. As soon as practicable but not later than the
736	736	effective date of this Act, the comptroller of public accounts
737	737	shall prescribe and post on the comptroller's Internet website the
738	738	form required by Section 5.07(k), Tax Code, as added by this Act.
739	739	SECTION 46. Sections 5.07, 25.25, 41.07, and 41.47, Tax
740	740	Code, as amended by this Act, apply only to an appraisal review
741	741	board order issued on or after the effective date of this Act. An
742	742	appraisal review board order issued before the effective date of
743	743	this Act is governed by the law in effect on the date the order was
744	744	issued, and the former law is continued in effect for that purpose.
745	745	SECTION 47. Sections 11.161 and 11.24, Tax Code, as amended
746	746	by this Act, apply only to ad valorem taxes imposed for an ad
747	747	valorem tax year that begins on or after the effective date of this
748	748	Act.
749	749	SECTION 48. Section 11.43(i), Tax Code, as amended by this
750	750	Act, applies only to an erroneously allowed exemption discovered on
751	751	or after the effective date of this Act. An erroneously allowed
752	752	exemption discovered before the effective date of this Act is
753	753	governed by the law in effect on the date the exemption was
754	754	discovered, and the former law is continued in effect for that
755	755	purpose.
756	756	SECTION 49. Section 11.4391, Tax Code, as amended by this
757	757	Act, are procedural and apply to an application for an exemption for
758	758	freeport goods under Section 11.251, Tax Code, filed during the
759	759	2025 tax year and to the preceding two tax years and to an
760	760	application for exemption filed on or after the effective date of
761	761	this Act.
762	762	SECTION 50. Section 11.4392, Tax Code, as added by this Act,
763	763	applies only to an application for an ad valorem tax exemption
764	764	submitted to a chief appraiser on or after the effective date of
765	765	this Act.
766	766	SECTION 51. Section 21.20, Tax Code, as amended by this Act,
767	767	are procedural in nature and apply to an application for an
768	768	allocation under Section 21.09, Tax Code, filed during the 2025 tax
769	769	year and to the preceding two tax years and to an application for
770	770	allocation filed on or after the effective date of this Act.
771	771	SECTION 52. Sections 22.28(a) and 22.30, Tax Code, as
772	772	amended by this Act, apply only to a rendition statement or property
773	773	report required to be filed on or after the effective date of this
774	774	Act. A rendition statement or property report required to be filed
775	775	before the effective date of this Act is governed by the law in
776	776	effect on the date the statement or report was required to be filed,
777	777	and the former law is continued in effect for that purpose.
778	778	SECTION 53. Section 23.01(d), Tax Code, as amended by this
779	779	Act, applies only for a tax year that begins on or after the
780	780	effective date of this Act.
781	781	SECTION 54. Section 25.19(f), Tax Code, as amended by this
782	782	Act, applies only to a notice of appraised value for an ad valorem
783	783	tax year that begins on or after the effective date of this Act.
784	784	SECTION 55. Section 23.52, Tax Code, as amended by this Act
785	785	and Section 23.527, Tax Code, as added by this Act, apply only to
786	786	the appraisal of land for ad valorem tax purposes for a tax year
787	787	that begins on or after the effective date of this Act.
788	788	SECTION 56. Section 26.09, Tax Code, as amended by this Act,
789	789	applies only to taxes assessed on property as provided by
790	790	Subsection (d) of that section on or after the effective date of
791	791	this Act. Taxes assessed on property before the effective date of
792	792	this Act are governed by the law in effect on the date the taxes were
793	793	assessed, and the former law is continued in effect for that
794	794	purpose.
795	795	SECTION 57. Section 41.43(b), Tax Code, as amended by this
796	796	Act, applies only to a protest under Chapter 41, Tax Code, for which
797	797	a notice of protest is filed on or after the effective date of this
798	798	Act.
799	799	SECTION 58. Section 41A.09(f), Tax Code, as added by this
800	800	Act, applies only to a determination of appraised value made by an
801	801	arbitrator under Chapter 41A, Tax Code, on or after the effective
802	802	date of this Act.
803	803	SECTION 59. Section 42.26(a), Tax Code, as amended by this
804	804	Act, applies only to an appeal under Chapter 42, Tax Code, for which
805	805	a petition for review is filed on or after the effective date of
806	806	this Act.
807	807	SECTION 60. Chapter 42, Tax Code, as amended by this Act,
808	808	applies only to an appeal under that chapter that is filed on or
809	809	after the effective date of this Act. An appeal filed before the
810	810	effective date of this Act is governed by the law in effect on the
811	811	date the appeal was filed, and the former law is continued in effect
812	812	for that purpose.
813	813	SECTION 61. This Act takes effect January 1, 2026