89R8680 MLH-F
By: Turner H.B. No. 2786
A BILL TO BE ENTITLED
AN ACT
relating to the frequency with which an appraisal district is
required to reappraise property for ad valorem tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 6.05(i), Tax Code, is amended to read as
follows:
(i) To ensure adherence with generally accepted appraisal
practices, the board of directors of an appraisal district shall
develop biennially a written plan for the annual [periodic]
reappraisal of all property within the boundaries of the district
according to the requirements of Section 25.18 and shall hold a
public hearing to consider the proposed plan. Not later than the
10th day before the date of the hearing, the secretary of the board
shall deliver to the presiding officer of the governing body of each
taxing unit participating in the district a written notice of the
date, time, and place for the hearing. Not later than September 15
of each even-numbered year, the board shall complete its hearings,
make any amendments, and by resolution finally approve the plan.
Copies of the approved plan shall be distributed to the presiding
officer of the governing body of each taxing unit participating in
the district and to the comptroller within 60 days of the approval
date.
SECTION 2. Section 11.35(k), Tax Code, is amended to read as
follows:
(k) The exemption authorized by this section expires as to
an item of qualified property on January 1 of the [first] tax year
following the tax year in which the person who owns the property
qualifies for the exemption authorized by this section [in which
the property is reappraised under Section 25.18].
SECTION 3. Section 23.23(a), Tax Code, is amended to read as
follows:
(a) An [Notwithstanding the requirements of Section 25.18
and regardless of whether the appraisal office has appraised the
property and determined the market value of the property for the tax
year, an] appraisal office may increase the appraised value of a
residence homestead for a tax year to an amount not to exceed the
lesser of:
(1) the market value of the property [for the most
recent tax year that the market value was determined by the
appraisal office]; or
(2) the sum of:
(A) 10 percent of the appraised value of the
property for the preceding tax year;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property.
SECTION 4. Section 23.231(d), Tax Code, is amended to read
as follows:
(d) An [Notwithstanding the requirements of Section 25.18
and regardless of whether the appraisal office has appraised the
property and determined the market value of the property for the tax
year, an] appraisal office may increase the appraised value of real
property to which this section applies for a tax year to an amount
not to exceed the lesser of:
(1) the market value of the property [for the most
recent tax year that the market value was determined by the
appraisal office]; or
(2) the sum of:
(A) 20 percent of the appraised value of the
property for the preceding tax year;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property.
SECTION 5. The heading to Section 25.18, Tax Code, is
amended to read as follows:
Sec. 25.18. ANNUAL [PERIODIC] REAPPRAISALS.
SECTION 6. Section 25.18, Tax Code, is amended by amending
Subsection (a) and adding Subsection (a-1) to read as follows:
(a) Each appraisal office shall implement the plan for the
annual [periodic] reappraisal of property approved by the board of
directors under Section 6.05(i).
(a-1) The plan shall provide for the reappraisal of all real
and personal property by the chief appraiser each year. The chief
appraiser shall use the most recent information obtained through
the reappraisal activities described by Subsection (b) when
performing a reappraisal.
SECTION 7. Sections 11.35(k), 23.23(a), and 23.231(d), Tax
Code, as amended by this Act, apply only to an ad valorem tax year
that begins on or after the effective date of this Act.
SECTION 8. This Act takes effect January 1, 2026.