Texas 2025 - 89th Regular

Texas Senate Bill SB1051 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R3984 RDS-F
2	2	By: Hinojosa of Hidalgo S.B. No. 1051
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the calculation of certain ad valorem tax rates of a
10	10	taxing unit for a year in which a property owner provides notice
11	11	that the owner intends to appeal an order of an appraisal review
12	12	board determining a protest by the owner regarding the appraisal of
13	13	the owner's property.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 5.07(g), Tax Code, is amended to read as
16	16	follows:
17	17	(g) The forms described by Subsection (f) must be in an
18	18	electronic format and:
19	19	(1) have blanks that can be filled in electronically;
20	20	(2) be capable of being certified by the designated
21	21	officer or employee after completion as accurately calculating the
22	22	applicable tax rates and using values that are the same as the
23	23	values shown in, as applicable:
24	24	(A) the taxing unit's certified appraisal roll;
25	25	or
26	26	(B) the certified estimate of taxable value of
27	27	property in the taxing unit prepared under Section 26.01(a-1);
28	28	[and]
29	29	(3) be capable of being electronically incorporated
30	30	into the property tax database maintained by each appraisal
31	31	district under Section 26.17 and submitted electronically to the
32	32	county assessor-collector of each county in which all or part of the
33	33	territory of the taxing unit is located; and
34	34	(4) be capable of including the addendum to the forms
35	35	required by Section 26.04(d-3), if applicable.
36	36	SECTION 2. Section 26.012, Tax Code, is amended by adding
37	37	Subdivisions (1-a), (1-b), (2-a), and (20) to read as follows:
38	38	(1-a) "Anticipated substantial litigation" means one
39	39	or more appeals filed or intended to be filed under Chapter 42 for a
40	40	tax year by a single property owner or by one or more associated
41	41	business entities of a single property owner of one or more orders
42	42	of an appraisal review board determining one or more protests by the
43	43	owner or entities of the taxable value of one or more parcels of
44	44	property located in an appraisal district, if any of the properties
45	45	had a taxable value in the preceding tax year that was one of the 20
46	46	highest in the appraisal district.
47	47	(1-b) "Associated business entity" means a subsidiary
48	48	or other associated business entity of a property owner.
49	49	(2-a) "Contested taxable value" means for a tax year
50	50	the difference between:
51	51	(A) the taxable value of a property stated in or
52	52	determined from:
53	53	(i) an order issued by the appraisal review
54	54	board hearing a protest pertaining to the property for the tax year
55	55	under Chapter 41; or
56	56	(ii) if the appraisal review board has not
57	57	issued an order determining the protest, the notice of appraised
58	58	value for the property delivered under Section 25.19 for the most
59	59	recent tax year; and
60	60	(B) the:
61	61	(i) taxable value of the property asserted
62	62	by the owner of the property in an appeal of the appraisal review
63	63	board order under Chapter 42; or
64	64	(ii) if the owner has not filed an appeal, a
65	65	good faith determination of the taxable value the owner will assert
66	66	in the appeal.
67	67	(20) "Uncontested taxable value" means the portion of
68	68	the taxable value of a property that is not contested taxable value.
69	69	SECTION 3. Section 26.012(6), Tax Code, is amended to read
70	70	as follows:
71	71	(6) "Current total value" means the total taxable
72	72	value of property listed on the appraisal roll for the current year,
73	73	including all appraisal roll supplements and corrections as of the
74	74	date of the calculation, less the taxable value of property
75	75	exempted for the current tax year for the first time under Section
76	76	11.31 or 11.315, except that:
77	77	(A) the current total value for a school district
78	78	excludes:
79	79	(i) the total value of homesteads that
80	80	qualify for a tax limitation as provided by Section 11.26;
81	81	(ii) new property value of property that is
82	82	subject to an agreement entered into under former Subchapter B or C,
83	83	Chapter 313; and
84	84	(iii) new property value of property that
85	85	is subject to an agreement entered into under Subchapter T, Chapter
86	86	403, Government Code; [and]
87	87	(B) the current total value for a county,
88	88	municipality, or junior college district excludes the total value
89	89	of homesteads that qualify for a tax limitation provided by Section
90	90	11.261; and
91	91	(C) the current total value for a taxing unit
92	92	excludes the portion of the aggregate taxable value of all of the
93	93	property located in the taxing unit that is included as part of
94	94	anticipated substantial litigation that consists of contested
95	95	taxable value.
96	96	SECTION 4. Section 26.04(d-3), Tax Code, is amended to read
97	97	as follows:
98	98	(d-3) As soon as practicable after the designated officer or
99	99	employee calculates the no-new-revenue tax rate and the
100	100	voter-approval tax rate of the taxing unit, the designated officer
101	101	or employee shall submit the tax rate calculation forms used in
102	102	calculating the rates to the county assessor-collector for each
103	103	county in which all or part of the territory of the taxing unit is
104	104	located. If an amount described by Section 26.012(6)(C) is
105	105	excluded from the current total value of a taxing unit for a tax
106	106	year, the designated officer or employee for the taxing unit shall
107	107	include as an addendum to the tax rate calculation forms for that
108	108	tax year:
109	109	(1) documentation that supports the exclusion; and
110	110	(2) each statement submitted to the designated officer
111	111	or employee under Section 41.48(c)(2) for that tax year.
112	112	SECTION 5. Section 26.16(d-1), Tax Code, is amended to read
113	113	as follows:
114	114	(d-1) In addition to posting the information described by
115	115	Subsection (a), the county assessor-collector shall post on the
116	116	Internet website of the county for each taxing unit all or part of
117	117	the territory of which is located in the county:
118	118	(1) the tax rate calculation forms used by the
119	119	designated officer or employee of each taxing unit to calculate the
120	120	no-new-revenue and voter-approval tax rates of the taxing unit for
121	121	the most recent five tax years beginning with the 2020 tax year, as
122	122	certified by the designated officer or employee under Section
123	123	26.04(d-2), along with the addendum to those forms required by
124	124	Section 26.04(d-3), if applicable; and
125	125	(2) the name and official contact information for each
126	126	member of the governing body of the taxing unit.
127	127	SECTION 6. Sections 26.17(e) and (f), Tax Code, are amended
128	128	to read as follows:
129	129	(e) The officer or employee designated by the governing body
130	130	of each taxing unit in which the property is located to calculate
131	131	the no-new-revenue tax rate and the voter-approval tax rate for the
132	132	taxing unit must electronically incorporate into the database:
133	133	(1) the information described by Subsections (b)(5),
134	134	(6), (7), (12), and (13), as applicable, as the information becomes
135	135	available; and
136	136	(2) the tax rate calculation forms prepared under
137	137	Section 26.04(d-1), along with the addendum to those forms required
138	138	by Section 26.04(d-3), if applicable, at the same time the
139	139	designated officer or employee submits the tax rates to the
140	140	governing body of the taxing unit under Section 26.04(e).
141	141	(f) The chief appraiser shall make the information
142	142	described by Subsection (e)(1) and the tax rate calculation forms,
143	143	along with the addendum to those forms required by Section
144	144	26.04(d-3), if applicable, described by Subsection (e)(2)
145	145	available to the public not later than the third business day after
146	146	the date the information and forms are incorporated into the
147	147	database.
148	148	SECTION 7. Subchapter C, Chapter 41, Tax Code, is amended by
149	149	adding Section 41.48 to read as follows:
150	150	Sec. 41.48. NOTICE OF CERTAIN APPEALS; SUBMISSIONS BY
151	151	PROPERTY OWNER. (a) In this section, "anticipated substantial
152	152	litigation," "associated business entity," and "uncontested
153	153	taxable value" have the meanings assigned by Section 26.012.
154	154	(b) Not later than July 1, the chief appraiser of each
155	155	appraisal district shall notify:
156	156	(1) each owner of property located in the appraisal
157	157	district that had a taxable value in the preceding tax year that was
158	158	one of the 20 highest in the appraisal district that the owner may
159	159	have to comply with the requirements of this section; and
160	160	(2) each taxing unit wholly or partly located in the
161	161	appraisal district of the name of each owner described by
162	162	Subdivision (1) who owns property located in the taxing unit.
163	163	(c) A property owner or associated business entity of the
164	164	owner that intends to file an appeal under Chapter 42 that is part
165	165	of anticipated substantial litigation shall submit to the officer
166	166	or employee designated under Section 26.04(c) by the governing body
167	167	of each taxing unit in which the property included in the litigation
168	168	is located:
169	169	(1) the total amount of uncontested taxable value of
170	170	all property located in the taxing unit that may be the subject of
171	171	an appeal by the property owner or entity and that is part of the
172	172	litigation; and
173	173	(2) a written statement providing that the property
174	174	owner or entity intends to pay the tax due on the amount of the
175	175	uncontested taxable value.
176	176	(d) A property owner or associated business entity of the
177	177	property owner must submit the information required to be submitted
178	178	under this section not later than the earlier of August 7 or the
179	179	21st day after the date the first hearing regarding a protest of the
180	180	value of any property included in the anticipated substantial
181	181	litigation is conducted under this chapter.
182	182	(e) Notwithstanding any other provision of this section,
183	183	the amount of uncontested taxable value submitted to a designated
184	184	officer or employee under this section may be used by the designated
185	185	officer or employee only for the purpose of calculating a tax rate
186	186	under Section 26.04 and may not be construed as an amount of value
187	187	of a property that is not in dispute for purposes of a proceeding
188	188	under Chapter 42.
189	189	SECTION 8. (a) Except as provided by Subsection (b) of this
190	190	section, the changes in law made by this Act apply to an ad valorem
191	191	tax year that begins on or after January 1, 2026.
192	192	(b) If this Act receives the vote necessary to have
193	193	immediate effect, the changes in law made by this Act apply to an ad
194	194	valorem tax year that begins on or after January 1, 2025.
195	195	SECTION 9. This Act takes effect immediately if it receives
196	196	a vote of two-thirds of all the members elected to each house, as
197	197	provided by Section 39, Article III, Texas Constitution. If this
198	198	Act does not receive the vote necessary for immediate effect, this
199	199	Act takes effect September 1, 2025.