Guillen Bill Treats Hydroponic Greenhouses As Exempt Farm Implements

The text as introduced · 7,485 words

By: Guillen
H.B. No. 2432

A BILL TO BE ENTITLED

AN ACT

relating to ad valorem taxation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1151.152, Occupations Code, is amended

by adding Subsections (a) and (b) to read as follows:

Sec. 1151.152. ELIGIBILITY FOR REGISTRATION. (a) Subject

to Subsection (b), to [ To ] be eligible for registration, an

applicant must:

(1) be at least 18 years of age;

(2) reside in this state;

(3) be of good moral character;

(4) be a graduate of an accredited high school or

establish high school graduation equivalency; and

(5) be actively engaged in appraisal, assessment, or

collection.

(b) An applicant who is a person described by Section

1151.151(1) or (2), other than a chief appraiser of an appraisal

district or a person who holds a license or certification as an

appraiser under Chapter 1103, must, in addition to the requirements

of Subsection (a), complete educational qualifications approved by

the department that are substantially similar to the educational

qualifications for licensing as an appraiser trainee under Chapter

1103.

SECTION 2. Section 403.302, Government Code, is amended by

amending Subsection (a) and adding Subsection (b-1) to read as

follows:

(a) The comptroller shall conduct a study using comparable

sales and generally accepted auditing and sampling techniques to

determine the total taxable value of all property in each school

district. The study shall determine the taxable value of all

property and of each category of property in the district and the

productivity value of all land that qualifies for appraisal on the

basis of its productive capacity and for which the owner has applied

for and received a productivity appraisal. In each study, the

comptroller shall determine the taxable value of every category of

property in the district. The comptroller may not decline to study

a category of property unless the district does not have any

property in that category. The comptroller shall make appropriate

adjustments in the study to account for actions taken under Chapter

49, Education Code.

(b-1) If the comptroller conducts a physical inspection of a

property in connection with a study, the appraisal district that

appraises property for the school district is entitled to have a

representative present during the inspection. The comptroller must

provide notice of the inspection to the appraisal district not

later than the 14th day before the date the inspection occurs.

SECTION 3. Section 1.111, Tax Code, is amended by amending

Subsection (d) and adding Subsection (d-1) to read as follows:

(d) Except as provided by Subsection (d-1), a [ A ] property

owner may not designate more than one agent to represent the

property owner in connection with an item of property. The

designation of an agent in connection with an item of property

revokes any previous designation of an agent in connection with

that item of property.

(d-1) A property owner may designate a different agent to

represent the property owner in connection with an item of property

in a different tax year without revoking any previous designation

of an agent in connection with the same item of property in a

previous tax year.

SECTION 4. Section 5.07, Tax Code, is amended by adding

Subsection (k) to read as follows:

(k) The comptroller shall prescribe the form that an

appraisal review board shall use to make a determination required

to be made by written order under this title. The form must require

an appraisal review board to include for the property subject to the

order the property owner's name, the property's identification

number, the property's legal description and physical address, and

any other information the comptroller determines necessary. The

comptroller shall post the form on the comptroller's Internet

website.

SECTION 5. Section 6.052, Tax Code, is amended by adding

Subsection (a-1) to read as follows:

(a-1) Notwithstanding the requirements of Subsection (a),

the chief appraiser of an appraisal district shall designate an

independent ombudsman to provide free assistance to property owners

who are 65 years of age or older in connection with motions to

correct an appraisal roll Section 25.25, or protests under

Subchapter C, Chapter 41.

SECTION 6. Section 11.161, Tax Code, is amended by adding

Subsections (c) and (d) to read as follows:

(c) For purposes of Subsection (a), farm or ranch products

may be produced by hydroponic farming.

(d) For purposes of Subsection (a), buildings and

greenhouses used for the growth or production of hydroponic farming

products at a hydroponic farm facility are considered to be

implements of husbandry.

SECTION 7. Section 11.24, Tax Code, is amended by adding

Subsection (c) to read as follows:

(c) For purposes of a structure or archeological site and

land subject to an exemption under this section, the property owner

may protest the appraised value of the structure or archeological

site and the appraised value of the land separately. A property

owner may protest the allocation of appraised value between the

structure or archeological site and the land.

SECTION 8. Section 11.43(i), Tax Code, is amended to read as

follows:

(i) If the chief appraiser discovers that an exemption that

is not required to be claimed annually has been erroneously allowed

in any one of the three [ five ] preceding years for real property, or

in either of the two preceding years for personal property , the

chief appraiser shall add the property or appraised value that was

erroneously exempted for each year to the appraisal roll as

provided by Section 25.21 of this code for other property that

escapes taxation. If an exemption that was erroneously allowed did

not apply to all taxing units in which the property was located, the

chief appraiser shall note on the appraisal records, for each prior

year, the taxing units that gave the exemption and are entitled to

impose taxes on the property or value that escaped taxation.

SECTION 9. Section 11.4391(b), Tax Code, is amended to read

as follows:

(b) If the application is approved, the property owner is

liable to each taxing unit allowing the exemption for a penalty in

an amount equal to 10 percent of the difference between the amount

of tax imposed by the taxing unit on the inventory or property, a

portion of which consists of freeport goods, and the amount that

would otherwise have been imposed up to a maximum penalty of 10

percent of the tax imposed with the exemption .

SECTION 10. Subchapter C, Chapter 11, Tax Code, is amended

by adding Section 11.4392 to read as follows:

Sec. 11.4392. LATE APPLICATION FOR PROPERTY EXEMPTED FROM

TAXATION BY AGREEMENT. The chief appraiser shall accept and

approve or deny an application for an exemption a person is entitled

to receive under Section 11.28 or an agreement entered into under

Chapter 312 after the deadline for filing it has passed if it is

filed on or before June 15.

SECTION 11. Section 21.10(b), Tax Code, is amended to read

as follows:

(b) If the application is approved, the property owner is

liable to each taxing unit for a penalty in an amount equal to 10

percent of the difference between the amount of tax imposed by the

taxing unit on the property without the allocation and the amount of

tax imposed on the property with the allocation up to a maximum

penalty of 10 percent of the tax imposed with the allocation .

SECTION 12. Section 22.27(a), Tax Code, is amended to read

as follows:

(a) Rendition statements, real and personal property

reports, attachments to those statements and reports, and other

information the owner of property provides to the appraisal office

in connection with the appraisal of the property, including income

and expense information related to a property filed with an

appraisal office and information voluntarily disclosed to an

appraisal office or the comptroller about real or personal property

sales prices [ after a promise it will be held confidential ], are

confidential and not open to public inspection. The statements and

reports and the information they contain about specific real or

personal property or a specific real or personal property owner and

information voluntarily disclosed to an appraisal office about real

or personal property sales prices [ after a promise it will be held

confidential ] may not be disclosed to anyone other than an employee

of the appraisal office who appraises property except as authorized

by Subsection (b) of this section.

SECTION 13. Section 22.28, Tax Code, is amended by amending

the title and Subsections (a) and (b) to read as follows:

Sec. 22.28 PENALTY FOR DELINQUENT RENDITION OR REPORT;

PENALTY COLLECTION PROCEDURES. (a) Except as otherwise provided

by Section 22.30, the chief appraiser shall impose a penalty on a

person who fails to timely file a rendition statement or property

report required by this chapter in an amount equal to five [ 10 ]

percent of the total amount of taxes imposed on the property for

that year by taxing units participating in the appraisal district.

The chief appraiser shall deliver by first class mail a notice of

the imposition of the penalty to the person. The notice may be

delivered with , but not included in, a notice of appraised value

provided under Section 25.19, if practicable.

(b) The chief appraiser shall certify to the assessor for

each taxing unit participating in the appraisal district that

imposes taxes on the property that a penalty imposed under this

chapter has become final. The assessor shall add the amount of the

penalty to the original amount of tax imposed on the property and

shall include the penalty as a separate line item entitled "PENALTY

FOR DELINQUENT RENDITION OR REPORT" that amount in the tax bill for

that year. The penalty becomes part of the tax on the property and

is secured by the tax lien that attaches to the property under

Section 32.01.

SECTION 14. Section 22.30, Tax Code, is amended by adding

Subsection (a-2) to read as follows:

(a-2) The chief appraiser shall waive the penalty imposed by

Section 22.28 if the property owner has not previously filed a

delinquent rendition statement or property report for that parcel

of property.

SECTION 15. Section 23.01, Tax Code, is amended by amending

Subsection (f) and adding Subsection (d-1) to read as follows:

( d-1) The market value of a residential property or vacant

lot that is adjacent only to other residential properties, or a

combination of residential properties and vacant lots, shall be

determined solely on the basis of the property's value as a

residential property, regardless of whether:

(1) the property could legally be used for another

purpose; or

(2) the residential use of the property is considered

to be the highest and best use of the property.

(f) The selection of comparable properties and the

application of appropriate adjustments for the determination of an

appraised value of property by any person under Section 41.43(b)(3)

or (4) or 42.26(a)(3) or (4) must be based on the application of

generally accepted appraisal methods and techniques. Adjustments

must be based on recognized methods and techniques that are

necessary to produce a credible opinion.

SECTION 16. Section 23.51(2), Tax Code, is amended to read

as follows:

(2) "Agricultural use" includes but is not limited to

the following activities: cultivating the soil, producing crops for

human food, animal feed, or planting seed or for the production of

fibers; floriculture, viticulture, and horticulture; raising or

keeping livestock; raising or keeping exotic animals for the

production of human food or of fiber, leather, pelts, or other

tangible products having a commercial value; planting cover crops

or leaving land idle for the purpose of participating in a

governmental program, provided the land is not used for residential

purposes or a purpose inconsistent with agricultural use; and

planting cover crops or leaving land idle in conjunction with

normal crop or livestock rotation procedure. The term also

includes the use of land to produce or harvest logs and posts for

the use in constructing or repairing fences, pens, barns, or other

agricultural improvements on adjacent qualified open-space land

having the same owner and devoted to a different agricultural use.

The term also includes the use of land for wildlife management. The

term also includes the use of land to raise or keep bees for

pollination or for the production of human food or other tangible

products having a commercial value, provided that the land used is

not less than 5 or more than 20 acres. The term also includes the

use of land for hydroponic farming.

SECTION 17. Section 23.52, Tax Code, is amended by adding

Subsection (h) to read as follows:

(h) The chief appraiser may appraise a portion of a parcel

of land according to this chapter if the portion qualifies for

appraisal under this subchapter but the remainder of the parcel

does not.

SECTION 18. Subchapter D, Chapter 23, Tax Code, is amended

by adding Section 23.527 to read as follows:

Sec. 23.527. ELIGIBILITY OF LAND PREVIOUSLY DEVOTED TO

SOLAR OR WIND POWER FACILITY. (a) In this section:

(1) "Solar power facility" has the meaning assigned by

Section 302.0001, Utilities Code.

(2) "Wind power facility" has the meaning assigned by

Section 301.0001, Utilities Code.

(b) This section applies only to land:

(1) that was previously appraised as qualified

open-space land as provided by this subchapter;

(2) that became ineligible for appraisal as provided

by this subchapter due to a change of use caused by the development

of a solar power facility or a wind power facility on the land;

(3) on which the solar power facility or wind power

facility described by Subdivision (2) is no longer in operation;

and

(4) that is currently devoted principally to

agricultural use to the degree of intensity generally accepted in

the area.

(c) Notwithstanding any other provision of this subchapter,

land described by Subsection (b) is qualified open-space land.

SECTION 19. Section 25.19(f), Tax Code, is amended to read

as follows:

(f) In the notice of appraised value for real property, the

chief appraiser shall list separately:

(1) the market value of the land; [ and ]

(2) the market value of each structure and other

improvement identified in the notice; and

(3) the total market value of the structures and other

improvements on the property.

SECTION 20. Section 25.25, Tax Code, is amended by adding

Subsection (q) to read as follows:

(q) An appraisal review board shall issue a written order

under this section using the form prescribed by the comptroller

under Section 5.07(k).

SECTION 21. Chapter 25, Tax Code, is amended by adding

Section 25.255 to read as follows:

Sec. 25.255. EXACT CORRECTION OF ROLL. A chief appraiser

that corrects the appraisal roll to include the appraised value of

property, including as determined by an appraisal review board

under Chapter 25.25 or Chapter 41, or a district court under Chapter

42, must correct the roll to show the exact dollar amount of the new

appraised value.

SECTION 22. Section 26.09, Tax Code, is amended by amending

Subsection (d) and adding Subsection (d-3) to read as follows:

(d) If a property is subject to taxation for a prior year in

which it escaped taxation, the assessor shall calculate the tax for

each year separately. In calculating the tax, the assessor shall

use the assessment ratio and tax rate in effect in the taxing unit

for the year for which back taxes are being imposed. Except as

provided by Subsections [ Subsection ] (d-1) and (d-3) , the amount of

back taxes due incurs interest calculated at the rate provided by

Section 33.01(c) from the date the tax would have become delinquent

had the tax been imposed in the proper tax year.

(d-3) Back taxes assessed under Subsection (d) on property a

chief appraiser discovers was omitted from an appraisal roll under

Section 25.21 do not incur interest as required by Subsection (d).

SECTION 23. Section 26.17(b) and (e), Tax Code, are amended

to read as follows:

(b) The database must include, with respect to each property

listed on the appraisal roll for the appraisal district:

(1) the property's identification number;

(2) the property's market value;

(3) the market value of each structure and other

improvement located on the property that is identified in the

notice of appraised value under Section 25.19;

(4) the property's taxable value;

(5) [ (4) ] the name of each taxing unit in which the

property is located;

(6) [ (5) ] for each school district in which the

property is located:

(A) the no-new-revenue tax rate; and

(B) the voter-approval tax rate;

(7) [ (6) ] for each school district in which the

property is located:

(A) the tax rate that would maintain the same

amount of state and local revenue per student that the district

received in the school year beginning in the preceding tax year; and

(B) the voter-approval tax rate;

(8) [ (7) ] the tax rate proposed by the governing body

of each taxing unit in which the property is located;

(9) [ (8) ] for each taxing unit other than a school

district in which the property is located, the taxes that would be

imposed on the property if the taxing unit adopted a tax rate equal

to:

(A) the no-new revenue tax rate; and

(B) the proposed tax rate;

(10) [ (9) ] for each school district in which the

property is located, the taxes that would be imposed on the property

if the district adopted a tax rate equal to:

(A) the tax rate that would maintain the same

amount of state and local revenue per student that the district

received in the school year beginning in the preceding tax year; and

(B) the proposed tax rate;

(11) [ (10) ] for each taxing unit other than a school

district in which the property is located, the difference between

the amount calculated under Subdivision (9)(A) [ (8)(A) ] and the

amount calculated under Subdivision (9)(B) [ (8)(B) ];

(12) [ (11) ] for each school district in which the

property is located, the difference between the amount calculated

under Subdivision (10)(A) [ (9)(A) ] and the amount calculated under

Subdivision (10)(B) [ (9)(B) ];

(13) [ (12) ] the date, time, and location of the public

hearing, if applicable, on the proposed tax rate to be held by the

governing body of each taxing unit in which the property is located;

(14) [ (13) ] the date, time, and location of the public

meeting, if applicable, at which the tax rate will be adopted to be

held by the governing body of each taxing unit in which the property

is located; and

(15) [ (14) ] for each taxing unit in which the property

is located, an e-mail address at which the taxing unit is capable of

receiving written comments regarding the proposed tax rate of the

taxing unit.

(e) The officer or employee designated by the governing body

of each taxing unit in which the property is located to calculate

the no-new-revenue tax rate and the voter-approval tax rate for the

taxing unit must electronically incorporate into the database:

(1) the information described by Subsections (b)(6)

[ (b)(5), (6) ], (7), (8), [ (12), and ] (13), and (14), as applicable,

as the information becomes available; and

(2) the tax rate calculation forms prepared under

Section 26.04(d-1) at the same time the designated officer or

employee submits the tax rates to the governing body of the taxing

unit under Section 26.04(e).

SECTION 24. Section 31.01(c), Tax Code, is amended to read

as follows:

(c) The tax bill or a separate statement accompanying the

tax bill shall:

(1) identify the property subject to the tax;

(2) state the appraised value, assessed value, and

taxable value of the property, which must be exact and not rounded

numbers ;

(3) if the property is land appraised as provided by

Subchapter C, D, E, or H, Chapter 23, state the market value and the

taxable value for purposes of deferred or additional taxation as

provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;

(4) state the assessment ratio for the unit;

(5) state the type and amount of any partial exemption

applicable to the property, indicating whether it applies to

appraised or assessed value;

(6) state the total tax rate for the unit;

(7) state the amount of tax due, the due date, and the

delinquency date;

(8) explain the payment option and discounts provided

by Sections 31.03 and 31.05, if available to the unit's taxpayers,

and state the date on which each of the discount periods provided by

Section 31.05 concludes, if the discounts are available;

(9) state the rates of penalty and interest imposed

for delinquent payment of the tax;

(10) include the name and telephone number of the

assessor for the unit and, if different, of the collector for the

unit;

(11) for real property, state for the current tax year

and each of the preceding five tax years:

(A) the appraised value and taxable value of the

property;

(B) the total tax rate for the unit;

(C) the amount of taxes imposed on the property

by the unit; and

(D) the difference, expressed as a percent

increase or decrease, as applicable, in the amount of taxes imposed

on the property by the unit compared to the amount imposed for the

preceding tax year; [ and ]

(12) for real property, state the differences,

expressed as a percent increase or decrease, as applicable, in the

following for the current tax year as compared to the fifth tax year

before that tax year:

(A) the appraised value and taxable value of the

property;

(B) the total tax rate for the unit; and

(C) the amount of taxes imposed on the property

by the unit ; and

(13) include the appraisal district account number for

the property .

SECTION 25. Section 33.41, Tax Code, is amended by amending

Subsection (a) and adding Subsection (a-1) to read as follows:

Sec. 33.41. SUIT TO COLLECT DELINQUENT TAX. (a) Except as

provided by Subsection (a-1), at [ At ] any time after its tax on

property becomes delinquent, a taxing unit may file suit to

foreclose the lien securing payment of the tax, to enforce personal

liability for the tax, or both. The suit must be in a court of

competent jurisdiction for the county in which the tax was imposed.

(a-1) A taxing unit may not file suit under Subsection (a)

to collect a delinquent tax owed on a property that is the subject

of a pending motion filed under Section 25.25(c).

SECTION 26. Section 41.07(a), Tax Code, is amended to read

as follows:

(a) The appraisal review board shall determine each

challenge and make its decision by written order using the form

prescribed by the comptroller under Section 5.07(k) . The appraisal

review board shall issue a written order to the property owner

immediately upon its determination of the property owner's

challenge.

SECTION 27. Section 41.43(b), Tax Code, is amended to read

as follows:

(b) A protest on the ground of unequal appraisal of property

shall be determined in favor of the protesting party unless the

appraisal district establishes that:

(1) the appraisal ratio of the property is equal to or

less than the median level of appraisal of a reasonable and

representative sample of other properties in the appraisal

district;

(2) the appraisal ratio of the property is equal to or

less than the median level of appraisal of a sample of properties in

the appraisal district consisting of a reasonable number of other

properties similarly situated to, or of the same general kind or

character as, the property subject to the protest; [ or ]

(3) the appraised value of the property is equal to or

less than the median appraised value of a reasonable number of

comparable properties, appropriately adjusted ; or

(4) the appraised value of the property is equal to or

less than 110 percent of the appraised value of the comparable

property, appropriately adjusted, with the lowest appraised value.

SECTION 28. Section 41.45(b), Tax Code, is amended to read

as follows:

(b) A property owner initiating a protest is entitled to

appear in-person to offer evidence or argument , and may not be

denied a hearing at which the property owner and chief appraiser are

both present in-person . A property owner may offer evidence or

argument by affidavit without personally appearing and may appear

by telephone conference call or videoconference to offer argument.

A property owner who appears by telephone conference call or

videoconference must offer any evidence by affidavit. A property

owner must submit an affidavit described by this subsection to the

board hearing the protest before the board begins the hearing on the

protest. On receipt of an affidavit, the board shall notify the

chief appraiser. The chief appraiser may inspect the affidavit and

is entitled to a copy on request.

SECTION 29. Section 41.47(a), Tax Code, is amended to read

as follows:

(a) The appraisal review board hearing a protest shall

determine the protest and make its decision by written order using

the form prescribed by the comptroller under Section 5.07(k) .

SECTION 30. Section 41.66(i), Tax Code, is amended to read

as follows:

(i) A hearing on a protest filed by a property owner or the

designated agent of the owner shall be set for a time and date

certain. If the hearing is not commenced within two hours of the

time set for the hearing, the appraisal review board shall postpone

the hearing on the request of the property owner or the designated

agent of the owner. If the property owner or the designated agent

of the owner does not request that the hearing be postponed, the

appraisal review board shall hold the hearing at the earliest

possible time but not later than 24 hours after the time for which

the hearing was originally set.

SECTION 31. Section 41.67, Tax Code, is amended by adding

Subsection (f) to read as follows:

(f) A property owner may submit evidence electronically at

any point before or during a hearing.

SECTION 32. Section 41A.09, Tax Code, is amended by adding

Subsection (f) to read as follows:

(f) The arbitrator may not determine the appraised value of

the property that is the subject of an arbitration to be an amount

greater than the appraised value of the property as shown in the

appraisal records submitted to the appraisal review board by the

chief appraiser under Section 25.22 or 25.23, except as requested

and agreed to by the property owner.

SECTION 33. Section 42.01, Tax Code, is amended by adding

Subsection (d) to read as follows:

(d) Notwithstanding Subsection (a), a person who owned

property at any time during a tax year but no longer owns the

property is entitled to file an appeal under this chapter as if the

person were the current owner of the property, regardless of

whether the person is the person subject to an order described by

that subsection.

SECTION 34. Section 42.21, Tax Code, is amended by amending

Subsections (a), (b), and (c) and adding Subsections (a-1) and

(a-2) to read as follows:

(a) A party who appeals as provided by this chapter must

file a petition for review with the district court not later than

the later of:

(1) the 60th day [ within 60 days ] after the date the

party receives [ received ] notice that a final order has been

entered from which the [ an ] appeal may be had ; or

(2) September 1 of the year in which the final order is

entered [ at any time after the hearing but before the 60-day

deadline ].

(a-1) Subject to Subsection (a), a party may file a petition

for review under this section at any time after:

(1) the protest hearing, regardless of whether the

party has received notice that a final order has been entered;

(2) notifying the appraisal review board that the

chief appraiser and the party have agreed to a disposition of the

protest and requesting the board to issue an agreed order under

Section 41.47(g) or (g-1); or

(3) submitting an affidavit to the board hearing the

protest under Section 41.45(b).

(a-2) Failure to timely file a petition bars any appeal

under this chapter.

(b) [ A petition for review brought under Section 42.02 must

be brought against the owner of the property involved in the

appeal. ] A petition for review brought under Section 42.031 must be

brought against the appraisal district and against the owner of the

property involved in the appeal. A petition for review brought

under Section 42.01(a)(2) or 42.03 must be brought against the

comptroller. Any other petition for review under this chapter must

be brought against the appraisal district. A petition for review

may not be brought against the appraisal review board. An appraisal

district may hire an attorney that represents the district to

represent the appraisal review board established for the district

to file an answer and obtain a dismissal of a suit filed against the

appraisal review board in violation of this subsection.

(c) If an appeal under this chapter is pending when the

appraisal review board issues an order in a subsequent year under a

protest by the same property owner and that protest relates to the

same property that is involved in the pending appeal, the property

owner may appeal the subsequent appraisal review board order by

amending the original petition for the pending appeal to include

the grounds for appealing the subsequent order. The amended

petition must be filed with the court not later than the 90th day

after the date the property owner receives notice that a final order

has been entered from which an appeal may be had [ in the period

provided by Subsection (a) for filing a petition for review of the

subsequent order ]. A property owner may appeal the subsequent

appraisal review board order under this subsection or may appeal

the order independently of the pending appeal as otherwise provided

by this section, but may not do both. A property owner may change

the election of remedies provided by this subsection at any time

before the end of the period provided by Subsection (a) for filing a

petition for review.

SECTION 35. Section 42.225, Tax Code, is amended by

amending the title and adding subsection (g) to read as follows:

Sec. 42.225 PROPERTY OWNER'S RIGHT TO APPEAL THROUGH

ARBITRATION AND SOAH .

(g) If within one year of the filing of an appeal in district

court, the court dismisses the appeal on a basis other than a plea

to the jurisdiction or the court sets the case for trial and will

not grant a continuance for a period of at least four months, the

property owner may file an appeal at the State Office of

Administrative Hearings (SOAH) or file for Binding Arbitration

without regard to the jurisdiction limits.

SECTION 36. Section 42.226, Tax Code, is amended to read as

follows:

Sec. 42.226. MEDIATION. (a) On motion by a party to an

appeal under this chapter, the court shall enter an order requiring

the parties to attend mediation. The court may enter an order

requiring the parties to attend mediation on its own motion.

(b) The court may not order mediation to be completed more

than 45 days before the first day of trial.

(c) The court may not order the parties to attend more than

one mediation.

SECTION 37. Section 42.23, Tax Code, is amended by amending

Subsection (e) and adding Subsections (a-1), (a-2), (i), (j), (k),

(l), (m), and (n), to read as follows:

(a-1) A chief appraiser, appraisal district, or appraisal

review board may not bring a counterclaim in an appeal brought

under this chapter.

(a-2) An appraisal district may not seek affirmative relief

in an appeal brought under this chapter.

(e) For purposes of Subsection (d), a property owner may

designate a cause of action under Section 42.25 or 42.26 as the

basis for an appeal, but may not designate a cause of action under

both sections as the basis for the appeal. Discovery regarding a

cause of action that is not specifically designated by the property

owner under Subsection (d) shall be conducted as provided by the

Texas Rules of Civil Procedure. [ A court may not enter an order,

including a protective order under Rule 192.6 of the Texas Rules of

Civil Procedure, that conflicts with Subsection (d). ]

(i) An entity is not required to be registered to do

business in this state in order to file an appeal under this

chapter or to be considered a proper party to bring a petition. A

formal or informal request for information regarding an entity's

registration status:

(1) is outside the scope of permissible discovery in

an appeal under this chapter;

(2) may not be made a prerequisite to a settlement

discussion related to that appeal; and

(3) may be grounds for sanctions by the court on the

motion of a party.

(j) A court may not enter an order, including a protective

order under Rule 192.6 of the Texas Rules of Civil Procedure, that

conflicts with this section.

(k) The district court may not order discovery unless

discovery is requested by a party to the appeal and the court

determines there is good cause for discovery.

(l) Except as provided by Section 42.227 or by agreement of

the parties, the following deadlines apply to an appeal under this

chapter:

(1) the discovery period ends on the 30th day before

the date of trial;

(2) a party seeking affirmative relief must designate

testifying expert witnesses, other than rebuttal testifying expert

witnesses, and provide the information listed in Rule 195.5 of the

Texas Rules of Civil Procedure not later than the 90th day before

the date of trial; and

(3) any other party must designate testifying expert

witnesses, other than rebuttal testifying expert witnesses, and

provide the information listed in Rule 195.5 of the Texas Rules of

Civil Procedure not later than the 60th day before the date of

trial.

(m) A party to an appeal under this chapter may file an

objection to third-party discovery. The court shall grant

third-party discovery subject to the objection only if the

discovery:

(1) is necessary under generally accepted appraisal

methods and techniques to determine the value of the property that

is the subject of the appeal; and

(2) would be admissible at trial.

(n) A party to an appeal under Section 42.26 may file an

objection to a discovery request for a closing statement, a rent

roll, or an operating statement. The court shall grant the

discovery request subject to the objection only if the discovery:

(1) is necessary under generally accepted appraisal

methods and techniques to determine the value of the property that

is the subject of the appeal; and

(2) would be admissible at trial.

SECTION 38. Subchapter B, Chapter 42, Tax Code, is amended

by adding Sections 42.232 and 42.233 to read as follows:

Sec. 42.232. TRIAL DATE. (a) A district court may not set a

trial date on an appeal that is less than 12 months after the date

the appeal is filed, unless the parties agree to an earlier trial

date.

(b) On request of a party to an appeal, the district court

shall:

(1) grant a continuance if the party requesting the

continuance has not previously been granted a continuance;

(2) set a new trial date that is not less than six

months after the date for which the trial was set at the time the

request was made; and

(3) extend all litigation, expert witness

designation, and discovery deadlines consistent with section

42.23(l) or as agreed by the parties.

(c) The district court may grant additional trial

continuances at the court's discretion.

Sec. 42.233. TRANSFER OF APPEAL TO STATE OFFICE OF

ADMINISTRATIVE HEARINGS. On request of a property owner who is a

party to an appeal under this chapter and who was eligible to file

the appeal under Subchapter Z, Chapter 2003, Government Code, the

district court shall transfer the appeal to the State Office of

Administrative Hearings to determine the appeal under that

subchapter. The property owner must make the request not later than

the 30th day before the date on which the trial is originally set to

begin.

SECTION 39. Section 42.26, Tax Code, is amended by amending

Subsection (a) and adding Subsections (e) and (f) to read as

follows:

(a) The district court shall grant relief on the ground that

a property is appraised unequally if:

(1) the appraisal ratio of the property exceeds by at

least 10 percent the median level of appraisal of a reasonable and

representative sample of other properties in the appraisal

district;

(2) the appraisal ratio of the property exceeds by at

least 10 percent the median level of appraisal of a sample of

properties in the appraisal district consisting of a reasonable

number of other properties similarly situated to, or of the same

general kind or character as, the property subject to the appeal;

[ or ]

(3) the appraised value of the property exceeds the

median appraised value of a reasonable number of comparable

properties, appropriately adjusted ; or

(4) the appraised value of the property exceeds by at

least 10 percent the appraised value of the comparable property,

appropriately adjusted, with the lowest appraised value.

(e) A district court may not determine the appraised value

of the property that is subject to an appeal under this section to

be an amount greater than the appraised value of the property as

shown in the appraisal records submitted to the board by the chief

appraiser under Section 25.22 or 25.23.

(f) If a claim that a property is appraised unequally is the

sole cause of action in an appeal, the appraisal district may not

request through discovery financial information related to the

property, including a rent roll or appraisal.

SECTION 40. Section 42.41(b), Tax Code, is amended to read

as follows:

(b) The assessor for each affected taxing unit shall correct

the tax roll and other appropriate records for which the assessor is

responsible. The assessor must correct the tax roll to indicate the

exact dollar amount of the corrected value.

SECTION 41. Sections 42.43(b-1), (f), and (g), Tax Code,

are amended to read as follows:

(b-1) A taxing unit may not send a refund made under this

section before the earlier of:

(1) the 60th [ 21st ] day after the final determination

of the appeal; or

(2) the date the property owner files the form

prescribed by Subsection (i) with the taxing unit.

(f) The final judgment in an appeal under this chapter shall

[ may ] designate to whom and where a refund is to be sent if the

property owner or the property owner's agent designated under

Section 1.111 files the form required under Subsection (i) .

(g) If a form prescribed by the comptroller under Subsection

(i) is filed with a taxing unit before the 60th [ 21st ] day after the

final determination of an appeal that requires a refund be made, the

taxing unit shall send the refund to the person and address

designated on the form.

SECTION 42. Section 42.02, Tax Code, is repealed.

SECTION 43. As soon as practicable after the effective date

of this Act, the Texas Commission of Licensing and Regulation shall

adopt rules necessary to implement Section 1151.152, Occupations

Code, as amended by this Act.

SECTION 44. Section 1151.152, Occupations Code, as amended

by this Act, applies only to a person who submits an application to

register under Chapter 1151, Occupations Code, on or after the

effective date of this Act. A person who submits an application to

register under Chapter 1151, Occupations Code, before the effective

date of this Act is governed by the law in effect on the date the

application was submitted, and the former law is continued in

effect for that purpose.

SECTION 45. As soon as practicable but not later than the

effective date of this Act, the comptroller of public accounts

shall prescribe and post on the comptroller's Internet website the

form required by Section 5.07(k), Tax Code, as added by this Act.

SECTION 46. Sections 5.07, 25.25, 41.07, and 41.47, Tax

Code, as amended by this Act, apply only to an appraisal review

board order issued on or after the effective date of this Act. An

appraisal review board order issued before the effective date of

this Act is governed by the law in effect on the date the order was

issued, and the former law is continued in effect for that purpose.

SECTION 47. Sections 11.161 and 11.24, Tax Code, as amended

by this Act, apply only to ad valorem taxes imposed for an ad

valorem tax year that begins on or after the effective date of this

Act.

SECTION 48. Section 11.43(i), Tax Code, as amended by this

Act, applies only to an erroneously allowed exemption discovered on

or after the effective date of this Act. An erroneously allowed

exemption discovered before the effective date of this Act is

governed by the law in effect on the date the exemption was

discovered, and the former law is continued in effect for that

purpose.

SECTION 49. Section 11.4391, Tax Code, as amended by this

Act, are procedural and apply to an application for an exemption for

freeport goods under Section 11.251, Tax Code, filed during the

2025 tax year and to the preceding two tax years and to an

application for exemption filed on or after the effective date of

this Act.

SECTION 50. Section 11.4392, Tax Code, as added by this Act,

applies only to an application for an ad valorem tax exemption

submitted to a chief appraiser on or after the effective date of

this Act.

SECTION 51. Section 21.20, Tax Code, as amended by this Act,

are procedural in nature and apply to an application for an

allocation under Section 21.09, Tax Code, filed during the 2025 tax

year and to the preceding two tax years and to an application for

allocation filed on or after the effective date of this Act.

SECTION 52. Sections 22.28(a) and 22.30, Tax Code, as

amended by this Act, apply only to a rendition statement or property

report required to be filed on or after the effective date of this

Act. A rendition statement or property report required to be filed

before the effective date of this Act is governed by the law in

effect on the date the statement or report was required to be filed,

and the former law is continued in effect for that purpose.

SECTION 53. Section 23.01(d), Tax Code, as amended by this

Act, applies only for a tax year that begins on or after the

effective date of this Act.

SECTION 54. Section 25.19(f), Tax Code, as amended by this

Act, applies only to a notice of appraised value for an ad valorem

tax year that begins on or after the effective date of this Act.

SECTION 55. Section 23.52, Tax Code, as amended by this Act

and Section 23.527, Tax Code, as added by this Act, apply only to

the appraisal of land for ad valorem tax purposes for a tax year

that begins on or after the effective date of this Act.

SECTION 56. Section 26.09, Tax Code, as amended by this Act,

applies only to taxes assessed on property as provided by

Subsection (d) of that section on or after the effective date of

this Act. Taxes assessed on property before the effective date of

this Act are governed by the law in effect on the date the taxes were

assessed, and the former law is continued in effect for that

purpose.

SECTION 57. Section 41.43(b), Tax Code, as amended by this

Act, applies only to a protest under Chapter 41, Tax Code, for which

a notice of protest is filed on or after the effective date of this

Act.

SECTION 58. Section 41A.09(f), Tax Code, as added by this

Act, applies only to a determination of appraised value made by an

arbitrator under Chapter 41A, Tax Code, on or after the effective

date of this Act.

SECTION 59. Section 42.26(a), Tax Code, as amended by this

Act, applies only to an appeal under Chapter 42, Tax Code, for which

a petition for review is filed on or after the effective date of

this Act.

SECTION 60. Chapter 42, Tax Code, as amended by this Act,

applies only to an appeal under that chapter that is filed on or

after the effective date of this Act. An appeal filed before the

effective date of this Act is governed by the law in effect on the

date the appeal was filed, and the former law is continued in effect

for that purpose.

SECTION 61. This Act takes effect January 1, 2026