bill requiring appraisal districts to reappraise every year

The text as introduced · 722 words

89R8680 MLH-F

By: Turner
H.B. No. 2786

A BILL TO BE ENTITLED

AN ACT

relating to the frequency with which an appraisal district is

required to reappraise property for ad valorem tax purposes.

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

SECTION 1. Section 6.05(i), Tax Code, is amended to read as

follows:

(i) To ensure adherence with generally accepted appraisal

practices, the board of directors of an appraisal district shall

develop biennially a written plan for the annual [ periodic ]

reappraisal of all property within the boundaries of the district

according to the requirements of Section 25.18 and shall hold a

public hearing to consider the proposed plan. Not later than the

10th day before the date of the hearing, the secretary of the board

shall deliver to the presiding officer of the governing body of each

taxing unit participating in the district a written notice of the

date, time, and place for the hearing. Not later than September 15

of each even-numbered year, the board shall complete its hearings,

make any amendments, and by resolution finally approve the plan.

Copies of the approved plan shall be distributed to the presiding

officer of the governing body of each taxing unit participating in

the district and to the comptroller within 60 days of the approval

date.

SECTION 2. Section 11.35(k), Tax Code, is amended to read as

follows:

(k) The exemption authorized by this section expires as to

an item of qualified property on January 1 of the [ first ] tax year

following the tax year in which the person who owns the property

qualifies for the exemption authorized by this section [ in which

the property is reappraised under Section 25.18 ].

SECTION 3. Section 23.23(a), Tax Code, is amended to read as

follows:

(a) An [ Notwithstanding the requirements of Section 25.18

and regardless of whether the appraisal office has appraised the

property and determined the market value of the property for the tax

year, an ] appraisal office may increase the appraised value of a

residence homestead for a tax year to an amount not to exceed the

lesser of:

(1) the market value of the property [ for the most

recent tax year that the market value was determined by the

appraisal office ]; or

(2) the sum of:

(A) 10 percent of the appraised value of the

property for the preceding tax year;

(B) the appraised value of the property for the

preceding tax year; and

(C) the market value of all new improvements to

the property.

SECTION 4. Section 23.231(d), Tax Code, is amended to read

as follows:

(d) An [ Notwithstanding the requirements of Section 25.18

and regardless of whether the appraisal office has appraised the

property and determined the market value of the property for the tax

year, an ] appraisal office may increase the appraised value of real

property to which this section applies for a tax year to an amount

not to exceed the lesser of:

(1) the market value of the property [ for the most

recent tax year that the market value was determined by the

appraisal office ]; or

(2) the sum of:

(A) 20 percent of the appraised value of the

property for the preceding tax year;

(B) the appraised value of the property for the

preceding tax year; and

(C) the market value of all new improvements to

the property.

SECTION 5. The heading to Section 25.18, Tax Code, is

amended to read as follows:

Sec. 25.18. ANNUAL [ PERIODIC ] REAPPRAISALS.

SECTION 6. Section 25.18, Tax Code, is amended by amending

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

(a) Each appraisal office shall implement the plan for the

annual [ periodic ] reappraisal of property approved by the board of

directors under Section 6.05(i).

(a-1) The plan shall provide for the reappraisal of all real

and personal property by the chief appraiser each year. The chief

appraiser shall use the most recent information obtained through

the reappraisal activities described by Subsection (b) when

performing a reappraisal.

SECTION 7. Sections 11.35(k), 23.23(a), and 23.231(d), Tax

Code, as amended by this Act, apply only to an ad valorem tax year

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

SECTION 8. This Act takes effect January 1, 2026.