Texas 2025 - 89th Regular

Texas Senate Bill SB1052 Compare Versions

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

Old	New	Differences
1	1	89R2850 RDS-F
2	2	By: Hinojosa of Hidalgo S.B. No. 1052
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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), (1-c), (2-a), and (20) to read as
38	38	follows:
39	39	(1-a) "Affected taxing unit" means a taxing unit that
40	40	is wholly or partly located in a county that:
41	41	(A) has a population of less than 500,000; and
42	42	(B) is located on the Gulf of Mexico.
43	43	(1-b) "Anticipated substantial litigation" means one
44	44	or more appeals filed or intended to be filed under Chapter 42 for a
45	45	tax year by a single property owner or by one or more associated
46	46	business entities of a single property owner of one or more orders
47	47	of an appraisal review board determining one or more protests by the
48	48	owner or entities of the taxable value of one or more parcels of
49	49	property located in an affected taxing unit, if any of the
50	50	properties had a taxable value in the preceding tax year that was
51	51	one of the 10 highest in the affected taxing unit.
52	52	(1-c) "Associated business entity" means a subsidiary
53	53	or other associated business entity of a property owner.
54	54	(2-a) "Contested taxable value" means for a tax year
55	55	the difference between:
56	56	(A) the taxable value of a property stated in or
57	57	determined from:
58	58	(i) an order issued by the appraisal review
59	59	board hearing a protest pertaining to the property for the tax year
60	60	under Chapter 41; or
61	61	(ii) if the appraisal review board has not
62	62	issued an order determining the protest, the notice of appraised
63	63	value for the property delivered under Section 25.19 for the most
64	64	recent tax year; and
65	65	(B) the:
66	66	(i) taxable value of the property asserted
67	67	by the owner of the property in an appeal of the appraisal review
68	68	board order under Chapter 42; or
69	69	(ii) if the owner has not filed an appeal, a
70	70	good faith determination of the taxable value the owner will assert
71	71	in the appeal.
72	72	(20) "Uncontested taxable value" means the portion of
73	73	the taxable value of a property that is not contested taxable value.
74	74	SECTION 3. Section 26.012(6), Tax Code, is amended to read
75	75	as follows:
76	76	(6) "Current total value" means the total taxable
77	77	value of property listed on the appraisal roll for the current year,
78	78	including all appraisal roll supplements and corrections as of the
79	79	date of the calculation, less the taxable value of property
80	80	exempted for the current tax year for the first time under Section
81	81	11.31 or 11.315, except that:
82	82	(A) the current total value for a school district
83	83	excludes:
84	84	(i) the total value of homesteads that
85	85	qualify for a tax limitation as provided by Section 11.26;
86	86	(ii) new property value of property that is
87	87	subject to an agreement entered into under former Subchapter B or C,
88	88	Chapter 313; and
89	89	(iii) new property value of property that
90	90	is subject to an agreement entered into under Subchapter T, Chapter
91	91	403, Government Code; [and]
92	92	(B) the current total value for a county,
93	93	municipality, or junior college district excludes the total value
94	94	of homesteads that qualify for a tax limitation provided by Section
95	95	11.261; and
96	96	(C) the current total value for an affected
97	97	taxing unit excludes the portion of the aggregate taxable value of
98	98	all of the property located in the taxing unit that is included as
99	99	part of anticipated substantial litigation that consists of
100	100	contested taxable value.
101	101	SECTION 4. Section 26.04(d-3), Tax Code, is amended to read
102	102	as follows:
103	103	(d-3) As soon as practicable after the designated officer or
104	104	employee calculates the no-new-revenue tax rate and the
105	105	voter-approval tax rate of the taxing unit, the designated officer
106	106	or employee shall submit the tax rate calculation forms used in
107	107	calculating the rates to the county assessor-collector for each
108	108	county in which all or part of the territory of the taxing unit is
109	109	located. If an amount described by Section 26.012(6)(C) is
110	110	excluded from the current total value of an affected taxing unit for
111	111	a tax year, the designated officer or employee for the taxing unit
112	112	shall include as an addendum to the tax rate calculation forms for
113	113	that tax year:
114	114	(1) documentation that supports the exclusion; and
115	115	(2) each statement submitted to the designated officer
116	116	or employee under Section 41.48(c)(2) for that tax year.
117	117	SECTION 5. Section 26.16(d-1), Tax Code, is amended to read
118	118	as follows:
119	119	(d-1) In addition to posting the information described by
120	120	Subsection (a), the county assessor-collector shall post on the
121	121	Internet website of the county for each taxing unit all or part of
122	122	the territory of which is located in the county:
123	123	(1) the tax rate calculation forms used by the
124	124	designated officer or employee of each taxing unit to calculate the
125	125	no-new-revenue and voter-approval tax rates of the taxing unit for
126	126	the most recent five tax years beginning with the 2020 tax year, as
127	127	certified by the designated officer or employee under Section
128	128	26.04(d-2), along with the addendum to those forms required by
129	129	Section 26.04(d-3), if applicable; and
130	130	(2) the name and official contact information for each
131	131	member of the governing body of the taxing unit.
132	132	SECTION 6. Sections 26.17(e) and (f), Tax Code, are amended
133	133	to read as follows:
134	134	(e) The officer or employee designated by the governing body
135	135	of each taxing unit in which the property is located to calculate
136	136	the no-new-revenue tax rate and the voter-approval tax rate for the
137	137	taxing unit must electronically incorporate into the database:
138	138	(1) the information described by Subsections (b)(5),
139	139	(6), (7), (12), and (13), as applicable, as the information becomes
140	140	available; and
141	141	(2) the tax rate calculation forms prepared under
142	142	Section 26.04(d-1), along with the addendum to those forms required
143	143	by Section 26.04(d-3), if applicable, at the same time the
144	144	designated officer or employee submits the tax rates to the
145	145	governing body of the taxing unit under Section 26.04(e).
146	146	(f) The chief appraiser shall make the information
147	147	described by Subsection (e)(1) and the tax rate calculation forms,
148	148	along with the addendum to those forms required by Section
149	149	26.04(d-3), if applicable, described by Subsection (e)(2)
150	150	available to the public not later than the third business day after
151	151	the date the information and forms are incorporated into the
152	152	database.
153	153	SECTION 7. Subchapter C, Chapter 41, Tax Code, is amended by
154	154	adding Section 41.48 to read as follows:
155	155	Sec. 41.48. NOTICE OF CERTAIN APPEALS; SUBMISSIONS BY
156	156	PROPERTY OWNER. (a) In this section, "affected taxing unit,"
157	157	"anticipated substantial litigation," "associated business
158	158	entity," and "uncontested taxable value" have the meanings assigned
159	159	by Section 26.012.
160	160	(b) Not later than July 1, the officer or employee
161	161	designated by the governing body of each affected taxing unit under
162	162	Section 26.04(c) shall notify each property owner in the taxing
163	163	unit who owns a property that had a taxable value in the preceding
164	164	tax year that was one of the 10 highest in the taxing unit that the
165	165	owner may have to comply with the requirements of this section.
166	166	(c) A property owner or associated business entity of the
167	167	owner that intends to file an appeal under Chapter 42 that is part
168	168	of anticipated substantial litigation shall submit to the officer
169	169	or employee described by Subsection (b) of each affected taxing
170	170	unit in which the property included in the litigation is located:
171	171	(1) the total amount of uncontested taxable value of
172	172	all property located in the taxing unit that may be the subject of
173	173	an appeal by the property owner or entity and that is part of the
174	174	litigation; and
175	175	(2) a written statement providing that the property
176	176	owner or entity intends to pay the tax due on the amount of the
177	177	uncontested taxable value.
178	178	(d) A property owner or associated business entity of the
179	179	property owner must submit the information required to be submitted
180	180	under this section not later than the earlier of August 7 or the
181	181	21st day after the date the first hearing regarding a protest of the
182	182	value of any property included in the anticipated substantial
183	183	litigation is conducted under this chapter.
184	184	(e) Notwithstanding any other provision of this section,
185	185	the amount of uncontested taxable value submitted to a designated
186	186	officer or employee under this section may be used by the designated
187	187	officer or employee only for the purpose of calculating a tax rate
188	188	under Section 26.04 and may not be construed as an amount of value
189	189	of a property that is not in dispute for purposes of a proceeding
190	190	under Chapter 42.
191	191	SECTION 8. (a) Except as provided by Subsection (b) of this
192	192	section, the changes in law made by this Act apply to an ad valorem
193	193	tax year that begins on or after January 1, 2026.
194	194	(b) If this Act receives the vote necessary to have
195	195	immediate effect, the changes in law made by this Act apply to an ad
196	196	valorem tax year that begins on or after January 1, 2025.
197	197	SECTION 9. This Act takes effect immediately if it receives
198	198	a vote of two-thirds of all the members elected to each house, as
199	199	provided by Section 39, Article III, Texas Constitution. If this
200	200	Act does not receive the vote necessary for immediate effect, this
201	201	Act takes effect September 1, 2025.