| 1 | 1 | | 89R3590 DRS-F |
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| 2 | 2 | | By: Capriglione H.B. No. 3524 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to ad valorem tax protests and appeals on the ground of the |
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| 10 | 10 | | unequal appraisal of property. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 41.43, Tax Code, is amended by adding |
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| 13 | 13 | | Subsection (b-1) to read as follows: |
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| 14 | 14 | | (b-1) For the purpose of establishing whether a protest |
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| 15 | 15 | | shall be determined in favor of the protesting party under |
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| 16 | 16 | | Subsection (b)(3), the appraisal district may not present and the |
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| 17 | 17 | | appraisal review board may not consider evidence relating to the |
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| 18 | 18 | | market value of the property subject to the protest. |
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| 19 | 19 | | SECTION 2. Section 42.26, Tax Code, is amended by adding |
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| 20 | 20 | | Subsection (a-1) to read as follows: |
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| 21 | 21 | | (a-1) For the purpose of establishing whether a property |
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| 22 | 22 | | owner is entitled to relief under Subsection (a)(3), the appraisal |
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| 23 | 23 | | district may not present and the court may not consider evidence |
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| 24 | 24 | | relating to the market value of the property subject to the suit. |
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| 25 | 25 | | SECTION 3. Section 42.26(d), Tax Code, as effective until |
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| 26 | 26 | | January 1, 2027, is amended to read as follows: |
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| 27 | 27 | | (d) For purposes of this section and subject to Subsection |
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| 28 | 28 | | (a-1), the value of the property subject to the suit and the value |
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| 29 | 29 | | of a comparable property or sample property that is used for |
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| 30 | 30 | | comparison must be the market value determined by the appraisal |
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| 31 | 31 | | district when the property is subject to the limitation on |
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| 32 | 32 | | appraised value imposed by Section 23.23 or 23.231. |
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| 33 | 33 | | SECTION 4. Section 42.26(d), Tax Code, as effective January |
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| 34 | 34 | | 1, 2027, is amended to read as follows: |
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| 35 | 35 | | (d) For purposes of this section and subject to Subsection |
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| 36 | 36 | | (a-1), the value of the property subject to the suit and the value |
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| 37 | 37 | | of a comparable property or sample property that is used for |
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| 38 | 38 | | comparison must be the market value determined by the appraisal |
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| 39 | 39 | | district when the property is a residence homestead subject to the |
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| 40 | 40 | | limitation on appraised value imposed by Section 23.23. |
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| 41 | 41 | | SECTION 5. Section 41.43(b-1), Tax Code, as added by this |
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| 42 | 42 | | Act, applies only to a protest under Chapter 41, Tax Code, for which |
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| 43 | 43 | | a notice of protest is filed on or after the effective date of this |
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| 44 | 44 | | Act. A protest under Chapter 41, Tax Code, for which a notice of |
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| 45 | 45 | | protest was filed before the effective date of this Act is governed |
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| 46 | 46 | | by the law in effect when the notice of protest was filed, and the |
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| 47 | 47 | | former law is continued in effect for that purpose. |
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| 48 | 48 | | SECTION 6. Section 42.26(a-1), Tax Code, as added by this |
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| 49 | 49 | | Act, applies only to an appeal filed under Chapter 42, Tax Code, on |
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| 50 | 50 | | or after the effective date of this Act. An appeal filed under |
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| 51 | 51 | | Chapter 42, Tax Code, before the effective date of this Act is |
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| 52 | 52 | | governed by the law in effect when the appeal was filed, and the |
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| 53 | 53 | | former law is continued in effect for that purpose. |
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| 54 | 54 | | SECTION 7. This Act takes effect January 1, 2026. |
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