| 1 | 1 | | 89R16288 CS-F |
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| 2 | 2 | | By: Middleton S.B. No. 2535 |
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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 appraisal of property for ad valorem tax purposes, |
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| 10 | 10 | | including protests, arbitrations, and appeals regarding |
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| 11 | 11 | | appraisals. |
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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 23.01(e), Tax Code, is amended to read as |
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| 14 | 14 | | follows: |
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| 15 | 15 | | (e) Notwithstanding any provision of this subchapter to the |
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| 16 | 16 | | contrary, if the appraised value of property in a tax year is |
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| 17 | 17 | | lowered under Subtitle F, the appraised value of the property as |
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| 18 | 18 | | finally determined under that subtitle is considered to be the |
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| 19 | 19 | | appraised value of the property for that tax year. In the next tax |
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| 20 | 20 | | year in which the property is appraised, the appraisal district |
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| 21 | 21 | | [chief appraiser] may not increase the appraised value of the |
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| 22 | 22 | | property unless the increase by the appraisal district [chief |
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| 23 | 23 | | appraiser] is reasonably supported by clear and convincing evidence |
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| 24 | 24 | | when all of the reliable and probative evidence in the record is |
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| 25 | 25 | | considered as a whole. If the appraised value is finally determined |
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| 26 | 26 | | in a protest under Section 41.41(a)(2) or an appeal under Section |
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| 27 | 27 | | 42.26, the appraisal district [chief appraiser] may satisfy the |
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| 28 | 28 | | requirement to reasonably support by clear and convincing evidence |
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| 29 | 29 | | an increase in the appraised value of the property in the next tax |
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| 30 | 30 | | year in which the property is appraised by presenting evidence |
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| 31 | 31 | | showing that the inequality in the appraisal of property has been |
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| 32 | 32 | | corrected with regard to the properties that were considered in |
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| 33 | 33 | | determining the value of the subject property. The burden of proof |
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| 34 | 34 | | is on the appraisal district [chief appraiser] to support an |
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| 35 | 35 | | increase in the appraised value of property under the circumstances |
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| 36 | 36 | | described by this subsection. |
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| 37 | 37 | | SECTION 2. Section 41A.015(k), Tax Code, is amended to read |
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| 38 | 38 | | as follows: |
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| 39 | 39 | | (k) If the arbitrator determines that the appraisal review |
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| 40 | 40 | | board or chief appraiser failed to comply with the procedural |
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| 41 | 41 | | requirement that was the subject of the limited binding |
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| 42 | 42 | | arbitration: |
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| 43 | 43 | | (1) the comptroller, on receipt of a copy of the award, |
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| 44 | 44 | | shall refund the property owner's arbitration deposit, less the |
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| 45 | 45 | | amount retained by the comptroller under Section 41A.05(b); and |
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| 46 | 46 | | (2) the appraisal district shall pay: |
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| 47 | 47 | | (A) the arbitrator's fee; and |
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| 48 | 48 | | (B) the property owner's reasonable attorney's |
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| 49 | 49 | | fees and costs in the amounts determined by the arbitrator. |
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| 50 | 50 | | SECTION 3. Section 42.23, Tax Code, is amended by adding |
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| 51 | 51 | | Subsection (b-1) to read as follows: |
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| 52 | 52 | | (b-1) The appraisal district has the burden of establishing |
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| 53 | 53 | | the value of the property by clear and convincing evidence if the |
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| 54 | 54 | | appraised value of the property was lowered under this subtitle in |
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| 55 | 55 | | the preceding year in an appeal under Section 42.01(a)(1)(A). |
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| 56 | 56 | | SECTION 4. This Act takes effect September 1, 2025. |
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