| 1 | 1 | | 89R16125 CJC-F |
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| 2 | 2 | | By: Phelan H.B. No. 4399 |
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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 the authority of an appraisal review board to direct |
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| 10 | 10 | | changes in the appraisal roll and related appraisal records if a |
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| 11 | 11 | | residence homestead is sold for less than the appraised value. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 25.25, Tax Code, is amended by adding |
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| 14 | 14 | | Subsection (c-2) and amending Subsections (e), (l), and (m) to read |
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| 15 | 15 | | as follows: |
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| 16 | 16 | | (c-2) The appraisal review board, on motion of the chief |
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| 17 | 17 | | appraiser or of a property owner, may direct by written order |
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| 18 | 18 | | changes in the appraisal roll or related records as provided by this |
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| 19 | 19 | | subsection. The board may order the appraised value of the owner's |
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| 20 | 20 | | property in the current tax year and either of the two preceding tax |
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| 21 | 21 | | years to be changed to the sales price of the property in the |
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| 22 | 22 | | current tax year if, for each tax year for which the change is to be |
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| 23 | 23 | | made: |
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| 24 | 24 | | (1) the property qualifies as that owner's residence |
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| 25 | 25 | | homestead; |
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| 26 | 26 | | (2) the sales price of the property is at least 10 |
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| 27 | 27 | | percent less than the appraised value of the property; and |
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| 28 | 28 | | (3) the board makes a finding that the sales price |
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| 29 | 29 | | reflects the market value of the property. |
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| 30 | 30 | | (e) If the chief appraiser and the property owner do not |
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| 31 | 31 | | agree to the correction before the 15th day after the date the |
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| 32 | 32 | | motion is filed, a party bringing a motion under Subsection (c), |
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| 33 | 33 | | (c-1), (c-2), or (d) is entitled on request to a hearing on and a |
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| 34 | 34 | | determination of the motion by the appraisal review board. A party |
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| 35 | 35 | | bringing a motion under this section must describe the error or |
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| 36 | 36 | | errors or other matter that the motion is seeking to correct. If a |
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| 37 | 37 | | request for hearing is made on or after January 1 but before |
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| 38 | 38 | | September 1, the appraisal review board shall schedule the hearing |
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| 39 | 39 | | to be held as soon as practicable but not later than the 90th day |
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| 40 | 40 | | after the date the board approves the appraisal records as provided |
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| 41 | 41 | | by Section 41.12. If a request for hearing is made on or after |
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| 42 | 42 | | September 1 but before January 1 of the following tax year, the |
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| 43 | 43 | | appraisal review board shall schedule the hearing to be held as soon |
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| 44 | 44 | | as practicable but not later than the 90th day after the date the |
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| 45 | 45 | | request for the hearing is made. Not later than 15 days before the |
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| 46 | 46 | | date of the hearing, the board shall deliver written notice of the |
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| 47 | 47 | | date, time, and place of the hearing to the chief appraiser, the |
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| 48 | 48 | | property owner, and the presiding officer of the governing body of |
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| 49 | 49 | | each taxing unit in which the property is located. The chief |
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| 50 | 50 | | appraiser, the property owner, and each taxing unit are entitled to |
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| 51 | 51 | | present evidence and argument at the hearing and to receive written |
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| 52 | 52 | | notice of the board's determination of the motion. The property |
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| 53 | 53 | | owner is entitled to elect to present the owner's evidence and |
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| 54 | 54 | | argument before, after, or between the cases presented by the chief |
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| 55 | 55 | | appraiser and each taxing unit. A property owner who files the |
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| 56 | 56 | | motion must comply with the payment requirements of Section 25.26 |
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| 57 | 57 | | or forfeit the right to a final determination of the motion. |
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| 58 | 58 | | (l) A motion may be filed under Subsection (c) or (c-2) |
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| 59 | 59 | | regardless of whether, for a tax year to which the motion relates, |
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| 60 | 60 | | the owner of the property protested under Chapter 41 an action |
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| 61 | 61 | | relating to the value of the property that is the subject of the |
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| 62 | 62 | | motion. |
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| 63 | 63 | | (m) The hearing on a motion under Subsection (c), (c-1), |
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| 64 | 64 | | (c-2), or (d) shall be conducted in the manner provided by |
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| 65 | 65 | | Subchapter C, Chapter 41. |
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| 66 | 66 | | SECTION 2. The changes in law made by this Act apply only to |
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| 67 | 67 | | a motion to correct an appraisal roll filed on or after the |
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| 68 | 68 | | effective date of this Act. A motion to correct an appraisal roll |
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| 69 | 69 | | filed before the effective date of this Act is governed by the law |
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| 70 | 70 | | in effect on the date the motion was filed, and the former law is |
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| 71 | 71 | | continued in effect for that purpose. |
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| 72 | 72 | | SECTION 3. This Act takes effect immediately if it receives |
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| 73 | 73 | | a vote of two-thirds of all the members elected to each house, as |
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| 74 | 74 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 75 | 75 | | Act does not receive the vote necessary for immediate effect, this |
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| 76 | 76 | | Act takes effect September 1, 2025. |
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