89R3658 MLH-D
By: Middleton S.B. No. 419
A BILL TO BE ENTITLED
AN ACT
relating to the determination of the market value of solar energy
property for ad valorem tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.26(d), Tax Code, is amended to read as
follows:
(d) To determine the market value of solar energy property
using the cost method of appraisal, the chief appraiser shall:
(1) use cost data obtained from generally accepted
sources;
(2) make any appropriate adjustment for physical,
functional, or economic obsolescence and any other justifiable
factor; and
(3) calculate the depreciated value of the property by
using a useful life of not less than 35 [that does not exceed 10]
years.
SECTION 2. Section 23.26(d), Tax Code, as amended by this
Act, applies only to the appraisal for ad valorem tax purposes of
solar energy property for a tax year that begins on or after the
effective date of this Act.
SECTION 3. This Act takes effect January 1, 2026.