By: Guillen H.B. No. 2432
A BILL TO BE ENTITLED
AN ACT
relating to ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1151.152, Occupations Code, is amended
by adding Subsections (a) and (b) to read as follows:
Sec. 1151.152. ELIGIBILITY FOR REGISTRATION. (a) Subject
to Subsection (b), to [To] be eligible for registration, an
applicant must:
(1) be at least 18 years of age;
(2) reside in this state;
(3) be of good moral character;
(4) be a graduate of an accredited high school or
establish high school graduation equivalency; and
(5) be actively engaged in appraisal, assessment, or
collection.
(b) An applicant who is a person described by Section
1151.151(1) or (2), other than a chief appraiser of an appraisal
district or a person who holds a license or certification as an
appraiser under Chapter 1103, must, in addition to the requirements
of Subsection (a), complete educational qualifications approved by
the department that are substantially similar to the educational
qualifications for licensing as an appraiser trainee under Chapter
1103.
SECTION 2. Section 403.302, Government Code, is amended by
amending Subsection (a) and adding Subsection (b-1) to read as
follows:
(a) The comptroller shall conduct a study using comparable
sales and generally accepted auditing and sampling techniques to
determine the total taxable value of all property in each school
district. The study shall determine the taxable value of all
property and of each category of property in the district and the
productivity value of all land that qualifies for appraisal on the
basis of its productive capacity and for which the owner has applied
for and received a productivity appraisal. In each study, the
comptroller shall determine the taxable value of every category of
property in the district. The comptroller may not decline to study
a category of property unless the district does not have any
property in that category. The comptroller shall make appropriate
adjustments in the study to account for actions taken under Chapter
49, Education Code.
(b-1) If the comptroller conducts a physical inspection of a
property in connection with a study, the appraisal district that
appraises property for the school district is entitled to have a
representative present during the inspection. The comptroller must
provide notice of the inspection to the appraisal district not
later than the 14th day before the date the inspection occurs.
SECTION 3. Section 1.111, Tax Code, is amended by amending
Subsection (d) and adding Subsection (d-1) to read as follows:
(d) Except as provided by Subsection (d-1), a [A] property
owner may not designate more than one agent to represent the
property owner in connection with an item of property. The
designation of an agent in connection with an item of property
revokes any previous designation of an agent in connection with
that item of property.
(d-1) A property owner may designate a different agent to
represent the property owner in connection with an item of property
in a different tax year without revoking any previous designation
of an agent in connection with the same item of property in a
previous tax year.
SECTION 4. Section 5.07, Tax Code, is amended by adding
Subsection (k) to read as follows:
(k) The comptroller shall prescribe the form that an
appraisal review board shall use to make a determination required
to be made by written order under this title. The form must require
an appraisal review board to include for the property subject to the
order the property owner's name, the property's identification
number, the property's legal description and physical address, and
any other information the comptroller determines necessary. The
comptroller shall post the form on the comptroller's Internet
website.
SECTION 5. Section 6.052, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) Notwithstanding the requirements of Subsection (a),
the chief appraiser of an appraisal district shall designate an
independent ombudsman to provide free assistance to property owners
who are 65 years of age or older in connection with motions to
correct an appraisal roll Section 25.25, or protests under
Subchapter C, Chapter 41.
SECTION 6. Section 11.161, Tax Code, is amended by adding
Subsections (c) and (d) to read as follows:
(c) For purposes of Subsection (a), farm or ranch products
may be produced by hydroponic farming.
(d) For purposes of Subsection (a), buildings and
greenhouses used for the growth or production of hydroponic farming
products at a hydroponic farm facility are considered to be
implements of husbandry.
SECTION 7. Section 11.24, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) For purposes of a structure or archeological site and
land subject to an exemption under this section, the property owner
may protest the appraised value of the structure or archeological
site and the appraised value of the land separately. A property
owner may protest the allocation of appraised value between the
structure or archeological site and the land.
SECTION 8. Section 11.43(i), Tax Code, is amended to read as
follows:
(i) If the chief appraiser discovers that an exemption that
is not required to be claimed annually has been erroneously allowed
in any one of the three [five] preceding years for real property, or
in either of the two preceding years for personal property, the
chief appraiser shall add the property or appraised value that was
erroneously exempted for each year to the appraisal roll as
provided by Section 25.21 of this code for other property that
escapes taxation. If an exemption that was erroneously allowed did
not apply to all taxing units in which the property was located, the
chief appraiser shall note on the appraisal records, for each prior
year, the taxing units that gave the exemption and are entitled to
impose taxes on the property or value that escaped taxation.
SECTION 9. Section 11.4391(b), Tax Code, is amended to read
as follows:
(b) If the application is approved, the property owner is
liable to each taxing unit allowing the exemption for a penalty in
an amount equal to 10 percent of the difference between the amount
of tax imposed by the taxing unit on the inventory or property, a
portion of which consists of freeport goods, and the amount that
would otherwise have been imposed up to a maximum penalty of 10
percent of the tax imposed with the exemption.
SECTION 10. Subchapter C, Chapter 11, Tax Code, is amended
by adding Section 11.4392 to read as follows:
Sec. 11.4392. LATE APPLICATION FOR PROPERTY EXEMPTED FROM
TAXATION BY AGREEMENT. The chief appraiser shall accept and
approve or deny an application for an exemption a person is entitled
to receive under Section 11.28 or an agreement entered into under
Chapter 312 after the deadline for filing it has passed if it is
filed on or before June 15.
SECTION 11. Section 21.10(b), Tax Code, is amended to read
as follows:
(b) If the application is approved, the property owner is
liable to each taxing unit for a penalty in an amount equal to 10
percent of the difference between the amount of tax imposed by the
taxing unit on the property without the allocation and the amount of
tax imposed on the property with the allocation up to a maximum
penalty of 10 percent of the tax imposed with the allocation.
SECTION 12. Section 22.27(a), Tax Code, is amended to read
as follows:
(a) Rendition statements, real and personal property
reports, attachments to those statements and reports, and other
information the owner of property provides to the appraisal office
in connection with the appraisal of the property, including income
and expense information related to a property filed with an
appraisal office and information voluntarily disclosed to an
appraisal office or the comptroller about real or personal property
sales prices [after a promise it will be held confidential], are
confidential and not open to public inspection. The statements and
reports and the information they contain about specific real or
personal property or a specific real or personal property owner and
information voluntarily disclosed to an appraisal office about real
or personal property sales prices [after a promise it will be held
confidential] may not be disclosed to anyone other than an employee
of the appraisal office who appraises property except as authorized
by Subsection (b) of this section.
SECTION 13. Section 22.28, Tax Code, is amended by amending
the title and Subsections (a) and (b) to read as follows:
Sec. 22.28 PENALTY FOR DELINQUENT RENDITION OR REPORT;
PENALTY COLLECTION PROCEDURES. (a) Except as otherwise provided
by Section 22.30, the chief appraiser shall impose a penalty on a
person who fails to timely file a rendition statement or property
report required by this chapter in an amount equal to five [10]
percent of the total amount of taxes imposed on the property for
that year by taxing units participating in the appraisal district.
The chief appraiser shall deliver by first class mail a notice of
the imposition of the penalty to the person. The notice may be
delivered with, but not included in, a notice of appraised value
provided under Section 25.19, if practicable.
(b) The chief appraiser shall certify to the assessor for
each taxing unit participating in the appraisal district that
imposes taxes on the property that a penalty imposed under this
chapter has become final. The assessor shall add the amount of the
penalty to the original amount of tax imposed on the property and
shall include the penalty as a separate line item entitled "PENALTY
FOR DELINQUENT RENDITION OR REPORT"that amount in the tax bill for
that year. The penalty becomes part of the tax on the property and
is secured by the tax lien that attaches to the property under
Section 32.01.
SECTION 14. Section 22.30, Tax Code, is amended by adding
Subsection (a-2) to read as follows:
(a-2) The chief appraiser shall waive the penalty imposed by
Section 22.28 if the property owner has not previously filed a
delinquent rendition statement or property report for that parcel
of property.
SECTION 15. Section 23.01, Tax Code, is amended by amending
Subsection (f) and adding Subsection (d-1) to read as follows:
(d-1) The market value of a residential property or vacant
lot that is adjacent only to other residential properties, or a
combination of residential properties and vacant lots, shall be
determined solely on the basis of the property's value as a
residential property, regardless of whether:
(1) the property could legally be used for another
purpose; or
(2) the residential use of the property is considered
to be the highest and best use of the property.
(f) The selection of comparable properties and the
application of appropriate adjustments for the determination of an
appraised value of property by any person under Section 41.43(b)(3)
or (4) or 42.26(a)(3) or (4) must be based on the application of
generally accepted appraisal methods and techniques. Adjustments
must be based on recognized methods and techniques that are
necessary to produce a credible opinion.
SECTION 16. Section 23.51(2), Tax Code, is amended to read
as follows:
(2) "Agricultural use" includes but is not limited to
the following activities: cultivating the soil, producing crops for
human food, animal feed, or planting seed or for the production of
fibers; floriculture, viticulture, and horticulture; raising or
keeping livestock; raising or keeping exotic animals for the
production of human food or of fiber, leather, pelts, or other
tangible products having a commercial value; planting cover crops
or leaving land idle for the purpose of participating in a
governmental program, provided the land is not used for residential
purposes or a purpose inconsistent with agricultural use; and
planting cover crops or leaving land idle in conjunction with
normal crop or livestock rotation procedure. The term also
includes the use of land to produce or harvest logs and posts for
the use in constructing or repairing fences, pens, barns, or other
agricultural improvements on adjacent qualified open-space land
having the same owner and devoted to a different agricultural use.
The term also includes the use of land for wildlife management. The
term also includes the use of land to raise or keep bees for
pollination or for the production of human food or other tangible
products having a commercial value, provided that the land used is
not less than 5 or more than 20 acres. The term also includes the
use of land for hydroponic farming.
SECTION 17. Section 23.52, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) The chief appraiser may appraise a portion of a parcel
of land according to this chapter if the portion qualifies for
appraisal under this subchapter but the remainder of the parcel
does not.
SECTION 18. Subchapter D, Chapter 23, Tax Code, is amended
by adding Section 23.527 to read as follows:
Sec. 23.527. ELIGIBILITY OF LAND PREVIOUSLY DEVOTED TO
SOLAR OR WIND POWER FACILITY. (a) In this section:
(1) "Solar power facility" has the meaning assigned by
Section 302.0001, Utilities Code.
(2) "Wind power facility" has the meaning assigned by
Section 301.0001, Utilities Code.
(b) This section applies only to land:
(1) that was previously appraised as qualified
open-space land as provided by this subchapter;
(2) that became ineligible for appraisal as provided
by this subchapter due to a change of use caused by the development
of a solar power facility or a wind power facility on the land;
(3) on which the solar power facility or wind power
facility described by Subdivision (2) is no longer in operation;
and
(4) that is currently devoted principally to
agricultural use to the degree of intensity generally accepted in
the area.
(c) Notwithstanding any other provision of this subchapter,
land described by Subsection (b) is qualified open-space land.
SECTION 19. Section 25.19(f), Tax Code, is amended to read
as follows:
(f) In the notice of appraised value for real property, the
chief appraiser shall list separately:
(1) the market value of the land; [and]
(2) the market value of each structure and other
improvement identified in the notice; and
(3) the total market value of the structures and other
improvements on the property.
SECTION 20. Section 25.25, Tax Code, is amended by adding
Subsection (q) to read as follows:
(q) An appraisal review board shall issue a written order
under this section using the form prescribed by the comptroller
under Section 5.07(k).
SECTION 21. Chapter 25, Tax Code, is amended by adding
Section 25.255 to read as follows:
Sec. 25.255. EXACT CORRECTION OF ROLL. A chief appraiser
that corrects the appraisal roll to include the appraised value of
property, including as determined by an appraisal review board
under Chapter 25.25 or Chapter 41, or a district court under Chapter
42, must correct the roll to show the exact dollar amount of the new
appraised value.
SECTION 22. Section 26.09, Tax Code, is amended by amending
Subsection (d) and adding Subsection (d-3) to read as follows:
(d) If a property is subject to taxation for a prior year in
which it escaped taxation, the assessor shall calculate the tax for
each year separately. In calculating the tax, the assessor shall
use the assessment ratio and tax rate in effect in the taxing unit
for the year for which back taxes are being imposed. Except as
provided by Subsections [Subsection] (d-1) and (d-3), the amount of
back taxes due incurs interest calculated at the rate provided by
Section 33.01(c) from the date the tax would have become delinquent
had the tax been imposed in the proper tax year.
(d-3) Back taxes assessed under Subsection (d) on property a
chief appraiser discovers was omitted from an appraisal roll under
Section 25.21 do not incur interest as required by Subsection (d).
SECTION 23. Section 26.17(b) and (e), Tax Code, are amended
to read as follows:
(b) The database must include, with respect to each property
listed on the appraisal roll for the appraisal district:
(1) the property's identification number;
(2) the property's market value;
(3) the market value of each structure and other
improvement located on the property that is identified in the
notice of appraised value under Section 25.19;
(4) the property's taxable value;
(5) [(4)] the name of each taxing unit in which the
property is located;
(6) [(5)] for each school district in which the
property is located:
(A) the no-new-revenue tax rate; and
(B) the voter-approval tax rate;
(7) [(6)] for each school district in which the
property is located:
(A) the tax rate that would maintain the same
amount of state and local revenue per student that the district
received in the school year beginning in the preceding tax year; and
(B) the voter-approval tax rate;
(8) [(7)] the tax rate proposed by the governing body
of each taxing unit in which the property is located;
(9) [(8)] for each taxing unit other than a school
district in which the property is located, the taxes that would be
imposed on the property if the taxing unit adopted a tax rate equal
to:
(A) the no-new revenue tax rate; and
(B) the proposed tax rate;
(10) [(9)] for each school district in which the
property is located, the taxes that would be imposed on the property
if the district adopted a tax rate equal to:
(A) the tax rate that would maintain the same
amount of state and local revenue per student that the district
received in the school year beginning in the preceding tax year; and
(B) the proposed tax rate;
(11) [(10)] for each taxing unit other than a school
district in which the property is located, the difference between
the amount calculated under Subdivision (9)(A) [(8)(A)] and the
amount calculated under Subdivision (9)(B) [(8)(B)];
(12) [(11)] for each school district in which the
property is located, the difference between the amount calculated
under Subdivision (10)(A) [(9)(A)] and the amount calculated under
Subdivision (10)(B) [(9)(B)];
(13) [(12)] the date, time, and location of the public
hearing, if applicable, on the proposed tax rate to be held by the
governing body of each taxing unit in which the property is located;
(14) [(13)] the date, time, and location of the public
meeting, if applicable, at which the tax rate will be adopted to be
held by the governing body of each taxing unit in which the property
is located; and
(15) [(14)] for each taxing unit in which the property
is located, an e-mail address at which the taxing unit is capable of
receiving written comments regarding the proposed tax rate of the
taxing unit.
(e) The officer or employee designated by the governing body
of each taxing unit in which the property is located to calculate
the no-new-revenue tax rate and the voter-approval tax rate for the
taxing unit must electronically incorporate into the database:
(1) the information described by Subsections (b)(6)
[(b)(5), (6)], (7), (8), [(12), and] (13), and (14), as applicable,
as the information becomes available; and
(2) the tax rate calculation forms prepared under
Section 26.04(d-1) at the same time the designated officer or
employee submits the tax rates to the governing body of the taxing
unit under Section 26.04(e).
SECTION 24. Section 31.01(c), Tax Code, is amended to read
as follows:
(c) The tax bill or a separate statement accompanying the
tax bill shall:
(1) identify the property subject to the tax;
(2) state the appraised value, assessed value, and
taxable value of the property, which must be exact and not rounded
numbers;
(3) if the property is land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, state the market value and the
taxable value for purposes of deferred or additional taxation as
provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
(4) state the assessment ratio for the unit;
(5) state the type and amount of any partial exemption
applicable to the property, indicating whether it applies to
appraised or assessed value;
(6) state the total tax rate for the unit;
(7) state the amount of tax due, the due date, and the
delinquency date;
(8) explain the payment option and discounts provided
by Sections 31.03 and 31.05, if available to the unit's taxpayers,
and state the date on which each of the discount periods provided by
Section 31.05 concludes, if the discounts are available;
(9) state the rates of penalty and interest imposed
for delinquent payment of the tax;
(10) include the name and telephone number of the
assessor for the unit and, if different, of the collector for the
unit;
(11) for real property, state for the current tax year
and each of the preceding five tax years:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the unit;
(C) the amount of taxes imposed on the property
by the unit; and
(D) the difference, expressed as a percent
increase or decrease, as applicable, in the amount of taxes imposed
on the property by the unit compared to the amount imposed for the
preceding tax year; [and]
(12) for real property, state the differences,
expressed as a percent increase or decrease, as applicable, in the
following for the current tax year as compared to the fifth tax year
before that tax year:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the unit; and
(C) the amount of taxes imposed on the property
by the unit; and
(13) include the appraisal district account number for
the property.
SECTION 25. Section 33.41, Tax Code, is amended by amending
Subsection (a) and adding Subsection (a-1) to read as follows:
Sec. 33.41. SUIT TO COLLECT DELINQUENT TAX. (a) Except as
provided by Subsection (a-1), at [At] any time after its tax on
property becomes delinquent, a taxing unit may file suit to
foreclose the lien securing payment of the tax, to enforce personal
liability for the tax, or both. The suit must be in a court of
competent jurisdiction for the county in which the tax was imposed.
(a-1) A taxing unit may not file suit under Subsection (a)
to collect a delinquent tax owed on a property that is the subject
of a pending motion filed under Section 25.25(c).
SECTION 26. Section 41.07(a), Tax Code, is amended to read
as follows:
(a) The appraisal review board shall determine each
challenge and make its decision by written order using the form
prescribed by the comptroller under Section 5.07(k). The appraisal
review board shall issue a written order to the property owner
immediately upon its determination of the property owner's
challenge.
SECTION 27. Section 41.43(b), Tax Code, is amended to read
as follows:
(b) A protest on the ground of unequal appraisal of property
shall be determined in favor of the protesting party unless the
appraisal district establishes that:
(1) the appraisal ratio of the property is equal to or
less than the median level of appraisal of a reasonable and
representative sample of other properties in the appraisal
district;
(2) the appraisal ratio of the property is equal to or
less than the median level of appraisal of a sample of properties in
the appraisal district consisting of a reasonable number of other
properties similarly situated to, or of the same general kind or
character as, the property subject to the protest; [or]
(3) the appraised value of the property is equal to or
less than the median appraised value of a reasonable number of
comparable properties, appropriately adjusted; or
(4) the appraised value of the property is equal to or
less than 110 percent of the appraised value of the comparable
property, appropriately adjusted, with the lowest appraised value.
SECTION 28. Section 41.45(b), Tax Code, is amended to read
as follows:
(b) A property owner initiating a protest is entitled to
appear in-person to offer evidence or argument, and may not be
denied a hearing at which the property owner and chief appraiser are
both present in-person. A property owner may offer evidence or
argument by affidavit without personally appearing and may appear
by telephone conference call or videoconference to offer argument.
A property owner who appears by telephone conference call or
videoconference must offer any evidence by affidavit. A property
owner must submit an affidavit described by this subsection to the
board hearing the protest before the board begins the hearing on the
protest. On receipt of an affidavit, the board shall notify the
chief appraiser. The chief appraiser may inspect the affidavit and
is entitled to a copy on request.
SECTION 29. Section 41.47(a), Tax Code, is amended to read
as follows:
(a) The appraisal review board hearing a protest shall
determine the protest and make its decision by written order using
the form prescribed by the comptroller under Section 5.07(k).
SECTION 30. Section 41.66(i), Tax Code, is amended to read
as follows:
(i) A hearing on a protest filed by a property owner or the
designated agent of the owner shall be set for a time and date
certain. If the hearing is not commenced within two hours of the
time set for the hearing, the appraisal review board shall postpone
the hearing on the request of the property owner or the designated
agent of the owner. If the property owner or the designated agent
of the owner does not request that the hearing be postponed, the
appraisal review board shall hold the hearing at the earliest
possible time but not later than 24 hours after the time for which
the hearing was originally set.
SECTION 31. Section 41.67, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) A property owner may submit evidence electronically at
any point before or during a hearing.
SECTION 32. Section 41A.09, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) The arbitrator may not determine the appraised value of
the property that is the subject of an arbitration to be an amount
greater than the appraised value of the property as shown in the
appraisal records submitted to the appraisal review board by the
chief appraiser under Section 25.22 or 25.23, except as requested
and agreed to by the property owner.
SECTION 33. Section 42.01, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) Notwithstanding Subsection (a), a person who owned
property at any time during a tax year but no longer owns the
property is entitled to file an appeal under this chapter as if the
person were the current owner of the property, regardless of
whether the person is the person subject to an order described by
that subsection.
SECTION 34. Section 42.21, Tax Code, is amended by amending
Subsections (a), (b), and (c) and adding Subsections (a-1) and
(a-2) to read as follows:
(a) A party who appeals as provided by this chapter must
file a petition for review with the district court not later than
the later of:
(1) the 60th day [within 60 days] after the date the
party receives [received] notice that a final order has been
entered from which the [an] appeal may be had; or
(2) September 1 of the year in which the final order is
entered [at any time after the hearing but before the 60-day
deadline].
(a-1) Subject to Subsection (a), a party may file a petition
for review under this section at any time after:
(1) the protest hearing, regardless of whether the
party has received notice that a final order has been entered;
(2) notifying the appraisal review board that the
chief appraiser and the party have agreed to a disposition of the
protest and requesting the board to issue an agreed order under
Section 41.47(g) or (g-1); or
(3) submitting an affidavit to the board hearing the
protest under Section 41.45(b).
(a-2) Failure to timely file a petition bars any appeal
under this chapter.
(b) [A petition for review brought under Section 42.02 must
be brought against the owner of the property involved in the
appeal.] A petition for review brought under Section 42.031 must be
brought against the appraisal district and against the owner of the
property involved in the appeal. A petition for review brought
under Section 42.01(a)(2) or 42.03 must be brought against the
comptroller. Any other petition for review under this chapter must
be brought against the appraisal district. A petition for review
may not be brought against the appraisal review board. An appraisal
district may hire an attorney that represents the district to
represent the appraisal review board established for the district
to file an answer and obtain a dismissal of a suit filed against the
appraisal review board in violation of this subsection.
(c) If an appeal under this chapter is pending when the
appraisal review board issues an order in a subsequent year under a
protest by the same property owner and that protest relates to the
same property that is involved in the pending appeal, the property
owner may appeal the subsequent appraisal review board order by
amending the original petition for the pending appeal to include
the grounds for appealing the subsequent order. The amended
petition must be filed with the court not later than the 90th day
after the date the property owner receives notice that a final order
has been entered from which an appeal may be had [in the period
provided by Subsection (a) for filing a petition for review of the
subsequent order]. A property owner may appeal the subsequent
appraisal review board order under this subsection or may appeal
the order independently of the pending appeal as otherwise provided
by this section, but may not do both. A property owner may change
the election of remedies provided by this subsection at any time
before the end of the period provided by Subsection (a) for filing a
petition for review.
SECTION 35. Section 42.225, Tax Code, is amended by
amending the title and adding subsection (g) to read as follows:
Sec. 42.225 PROPERTY OWNER'S RIGHT TO APPEAL THROUGH
ARBITRATION AND SOAH.
(g) If within one year of the filing of an appeal in district
court, the court dismisses the appeal on a basis other than a plea
to the jurisdiction or the court sets the case for trial and will
not grant a continuance for a period of at least four months, the
property owner may file an appeal at the State Office of
Administrative Hearings (SOAH) or file for Binding Arbitration
without regard to the jurisdiction limits.
SECTION 36. Section 42.226, Tax Code, is amended to read as
follows:
Sec. 42.226. MEDIATION. (a) On motion by a party to an
appeal under this chapter, the court shall enter an order requiring
the parties to attend mediation. The court may enter an order
requiring the parties to attend mediation on its own motion.
(b) The court may not order mediation to be completed more
than 45 days before the first day of trial.
(c) The court may not order the parties to attend more than
one mediation.
SECTION 37. Section 42.23, Tax Code, is amended by amending
Subsection (e) and adding Subsections (a-1), (a-2), (i), (j), (k),
(l), (m), and (n), to read as follows:
(a-1) A chief appraiser, appraisal district, or appraisal
review board may not bring a counterclaim in an appeal brought
under this chapter.
(a-2) An appraisal district may not seek affirmative relief
in an appeal brought under this chapter.
(e) For purposes of Subsection (d), a property owner may
designate a cause of action under Section 42.25 or 42.26 as the
basis for an appeal, but may not designate a cause of action under
both sections as the basis for the appeal. Discovery regarding a
cause of action that is not specifically designated by the property
owner under Subsection (d) shall be conducted as provided by the
Texas Rules of Civil Procedure. [A court may not enter an order,
including a protective order under Rule 192.6 of the Texas Rules of
Civil Procedure, that conflicts with Subsection (d).]
(i) An entity is not required to be registered to do
business in this state in order to file an appeal under this
chapter or to be considered a proper party to bring a petition. A
formal or informal request for information regarding an entity's
registration status:
(1) is outside the scope of permissible discovery in
an appeal under this chapter;
(2) may not be made a prerequisite to a settlement
discussion related to that appeal; and
(3) may be grounds for sanctions by the court on the
motion of a party.
(j) A court may not enter an order, including a protective
order under Rule 192.6 of the Texas Rules of Civil Procedure, that
conflicts with this section.
(k) The district court may not order discovery unless
discovery is requested by a party to the appeal and the court
determines there is good cause for discovery.
(l) Except as provided by Section 42.227 or by agreement of
the parties, the following deadlines apply to an appeal under this
chapter:
(1) the discovery period ends on the 30th day before
the date of trial;
(2) a party seeking affirmative relief must designate
testifying expert witnesses, other than rebuttal testifying expert
witnesses, and provide the information listed in Rule 195.5 of the
Texas Rules of Civil Procedure not later than the 90th day before
the date of trial; and
(3) any other party must designate testifying expert
witnesses, other than rebuttal testifying expert witnesses, and
provide the information listed in Rule 195.5 of the Texas Rules of
Civil Procedure not later than the 60th day before the date of
trial.
(m) A party to an appeal under this chapter may file an
objection to third-party discovery. The court shall grant
third-party discovery subject to the objection only if the
discovery:
(1) is necessary under generally accepted appraisal
methods and techniques to determine the value of the property that
is the subject of the appeal; and
(2) would be admissible at trial.
(n) A party to an appeal under Section 42.26 may file an
objection to a discovery request for a closing statement, a rent
roll, or an operating statement. The court shall grant the
discovery request subject to the objection only if the discovery:
(1) is necessary under generally accepted appraisal
methods and techniques to determine the value of the property that
is the subject of the appeal; and
(2) would be admissible at trial.
SECTION 38. Subchapter B, Chapter 42, Tax Code, is amended
by adding Sections 42.232 and 42.233 to read as follows:
Sec. 42.232. TRIAL DATE. (a) A district court may not set a
trial date on an appeal that is less than 12 months after the date
the appeal is filed, unless the parties agree to an earlier trial
date.
(b) On request of a party to an appeal, the district court
shall:
(1) grant a continuance if the party requesting the
continuance has not previously been granted a continuance;
(2) set a new trial date that is not less than six
months after the date for which the trial was set at the time the
request was made; and
(3) extend all litigation, expert witness
designation, and discovery deadlines consistent with section
42.23(l) or as agreed by the parties.
(c) The district court may grant additional trial
continuances at the court's discretion.
Sec. 42.233. TRANSFER OF APPEAL TO STATE OFFICE OF
ADMINISTRATIVE HEARINGS. On request of a property owner who is a
party to an appeal under this chapter and who was eligible to file
the appeal under Subchapter Z, Chapter 2003, Government Code, the
district court shall transfer the appeal to the State Office of
Administrative Hearings to determine the appeal under that
subchapter. The property owner must make the request not later than
the 30th day before the date on which the trial is originally set to
begin.
SECTION 39. Section 42.26, Tax Code, is amended by amending
Subsection (a) and adding Subsections (e) and (f) to read as
follows:
(a) The district court shall grant relief on the ground that
a property is appraised unequally if:
(1) the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of a reasonable and
representative sample of other properties in the appraisal
district;
(2) the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of a sample of
properties in the appraisal district consisting of a reasonable
number of other properties similarly situated to, or of the same
general kind or character as, the property subject to the appeal;
[or]
(3) the appraised value of the property exceeds the
median appraised value of a reasonable number of comparable
properties, appropriately adjusted; or
(4) the appraised value of the property exceeds by at
least 10 percent the appraised value of the comparable property,
appropriately adjusted, with the lowest appraised value.
(e) A district court may not determine the appraised value
of the property that is subject to an appeal under this section to
be an amount greater than the appraised value of the property as
shown in the appraisal records submitted to the board by the chief
appraiser under Section 25.22 or 25.23.
(f) If a claim that a property is appraised unequally is the
sole cause of action in an appeal, the appraisal district may not
request through discovery financial information related to the
property, including a rent roll or appraisal.
SECTION 40. Section 42.41(b), Tax Code, is amended to read
as follows:
(b) The assessor for each affected taxing unit shall correct
the tax roll and other appropriate records for which the assessor is
responsible. The assessor must correct the tax roll to indicate the
exact dollar amount of the corrected value.
SECTION 41. Sections 42.43(b-1), (f), and (g), Tax Code,
are amended to read as follows:
(b-1) A taxing unit may not send a refund made under this
section before the earlier of:
(1) the 60th [21st] day after the final determination
of the appeal; or
(2) the date the property owner files the form
prescribed by Subsection (i) with the taxing unit.
(f) The final judgment in an appeal under this chapter shall
[may] designate to whom and where a refund is to be sent if the
property owner or the property owner's agent designated under
Section 1.111 files the form required under Subsection (i).
(g) If a form prescribed by the comptroller under Subsection
(i) is filed with a taxing unit before the 60th [21st] day after the
final determination of an appeal that requires a refund be made, the
taxing unit shall send the refund to the person and address
designated on the form.
SECTION 42. Section 42.02, Tax Code, is repealed.
SECTION 43. As soon as practicable after the effective date
of this Act, the Texas Commission of Licensing and Regulation shall
adopt rules necessary to implement Section 1151.152, Occupations
Code, as amended by this Act.
SECTION 44. Section 1151.152, Occupations Code, as amended
by this Act, applies only to a person who submits an application to
register under Chapter 1151, Occupations Code, on or after the
effective date of this Act. A person who submits an application to
register under Chapter 1151, Occupations Code, before the effective
date of this Act is governed by the law in effect on the date the
application was submitted, and the former law is continued in
effect for that purpose.
SECTION 45. As soon as practicable but not later than the
effective date of this Act, the comptroller of public accounts
shall prescribe and post on the comptroller's Internet website the
form required by Section 5.07(k), Tax Code, as added by this Act.
SECTION 46. Sections 5.07, 25.25, 41.07, and 41.47, Tax
Code, as amended by this Act, apply only to an appraisal review
board order issued on or after the effective date of this Act. An
appraisal review board order issued before the effective date of
this Act is governed by the law in effect on the date the order was
issued, and the former law is continued in effect for that purpose.
SECTION 47. Sections 11.161 and 11.24, Tax Code, as amended
by this Act, apply only to ad valorem taxes imposed for an ad
valorem tax year that begins on or after the effective date of this
Act.
SECTION 48. Section 11.43(i), Tax Code, as amended by this
Act, applies only to an erroneously allowed exemption discovered on
or after the effective date of this Act. An erroneously allowed
exemption discovered before the effective date of this Act is
governed by the law in effect on the date the exemption was
discovered, and the former law is continued in effect for that
purpose.
SECTION 49. Section 11.4391, Tax Code, as amended by this
Act, are procedural and apply to an application for an exemption for
freeport goods under Section 11.251, Tax Code, filed during the
2025 tax year and to the preceding two tax years and to an
application for exemption filed on or after the effective date of
this Act.
SECTION 50. Section 11.4392, Tax Code, as added by this Act,
applies only to an application for an ad valorem tax exemption
submitted to a chief appraiser on or after the effective date of
this Act.
SECTION 51. Section 21.20, Tax Code, as amended by this Act,
are procedural in nature and apply to an application for an
allocation under Section 21.09, Tax Code, filed during the 2025 tax
year and to the preceding two tax years and to an application for
allocation filed on or after the effective date of this Act.
SECTION 52. Sections 22.28(a) and 22.30, Tax Code, as
amended by this Act, apply only to a rendition statement or property
report required to be filed on or after the effective date of this
Act. A rendition statement or property report required to be filed
before the effective date of this Act is governed by the law in
effect on the date the statement or report was required to be filed,
and the former law is continued in effect for that purpose.
SECTION 53. Section 23.01(d), Tax Code, as amended by this
Act, applies only for a tax year that begins on or after the
effective date of this Act.
SECTION 54. Section 25.19(f), Tax Code, as amended by this
Act, applies only to a notice of appraised value for an ad valorem
tax year that begins on or after the effective date of this Act.
SECTION 55. Section 23.52, Tax Code, as amended by this Act
and Section 23.527, Tax Code, as added by this Act, apply only to
the appraisal of land for ad valorem tax purposes for a tax year
that begins on or after the effective date of this Act.
SECTION 56. Section 26.09, Tax Code, as amended by this Act,
applies only to taxes assessed on property as provided by
Subsection (d) of that section on or after the effective date of
this Act. Taxes assessed on property before the effective date of
this Act are governed by the law in effect on the date the taxes were
assessed, and the former law is continued in effect for that
purpose.
SECTION 57. Section 41.43(b), Tax Code, as amended by this
Act, applies only to a protest under Chapter 41, Tax Code, for which
a notice of protest is filed on or after the effective date of this
Act.
SECTION 58. Section 41A.09(f), Tax Code, as added by this
Act, applies only to a determination of appraised value made by an
arbitrator under Chapter 41A, Tax Code, on or after the effective
date of this Act.
SECTION 59. Section 42.26(a), Tax Code, as amended by this
Act, applies only to an appeal under Chapter 42, Tax Code, for which
a petition for review is filed on or after the effective date of
this Act.
SECTION 60. Chapter 42, Tax Code, as amended by this Act,
applies only to an appeal under that chapter that is filed on or
after the effective date of this Act. An appeal filed before the
effective date of this Act is governed by the law in effect on the
date the appeal was filed, and the former law is continued in effect
for that purpose.
SECTION 61. This Act takes effect January 1, 2026