Bell Appraisal Bill Makes Buyers Report Sales Prices In 10 Days

The text as introduced · 1,842 words

89R4511 DRS-D

By: Bell of Montgomery
H.B. No. 291

A BILL TO BE ENTITLED

AN ACT

relating to the appraisal of real property for ad valorem tax

purposes.

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

SECTION 1. The heading to Subchapter C, Chapter 22, Tax

Code, is amended to read as follows:

SUBCHAPTER C. [ OTHER ] REPORTS OF POLITICAL SUBDIVISION ACTIONS

SECTION 2. Chapter 22, Tax Code, is amended by adding

Subchapter D to read as follows:

SUBCHAPTER D. REPORT OF SALES PRICE

Sec. 22.61. SALES PRICE DISCLOSURE REPORT. (a) Except as

provided by Subsection (b), not later than the 10th day after the

date the deed is recorded in the county real property records, the

purchaser or grantee of real property under a recorded deed

conveying an interest in the real property shall file a sales price

disclosure report with the chief appraiser of the appraisal

district established for the county in which the property is

located.

(b) This section does not apply to a sale or other transfer

of real property if the sale or other transfer is made:

(1) pursuant to a court order;

(2) to or from a trustee in bankruptcy;

(3) pursuant to a power of sale under a deed of trust

or other encumbrance secured by the property;

(4) by a deed in lieu of foreclosure;

(5) by one co-owner to one or more other co-owners;

(6) to a spouse or to a person or persons in the first

degree of lineal consanguinity of one or more of the sellers or

grantors;

(7) of an interest less than a full fee simple

interest; or

(8) to an entity having the power to acquire the

property by eminent domain.

(c) A sales price disclosure report must be signed by the

purchaser or grantee of the real property described in the report.

Sec. 22.62. REPORT FORM. (a) A sales price disclosure

report filed under this subchapter must read as follows, with the

appropriate information included in the blanks:

SALES PRICE DISCLOSURE REPORT

Section 22.61, Tax Code, requires a purchaser or grantee

under a deed to prepare this report, sign it, and file it with the

chief appraiser of the appraisal district established for the

county in which the property is located not later than the third day

after the date the deed is recorded. This report is not required to

be filed if the sale or transfer is made: (1) under a court order;

(2) to or from a trustee in bankruptcy; (3) under a deed of trust or

other encumbrance secured by the property; (4) by a deed in lieu of

foreclosure; (5) between co-owners; or (6) between spouses or

between family members in the first degree of lineal consanguinity.

Knowingly making a false statement on this form is grounds for

prosecution of a Class A misdemeanor or a state jail felony under

Section 37.10, Penal Code. The chief appraiser may not use the

information in this form as the sole basis on which to increase the

market value of the property.

Seller's or grantor's name: ___________________

Purchaser's or grantee's name: ________________

Purchaser's or grantee's address: _____________

Property description (as stated in deed): _____

Sales price or other consideration paid for the property:

________

The method used to finance the sales price or consideration

was: □ none (cash sale) □ cash and third-party financing □ cash

and seller financing □ exchange of other property □ other,

describe: ______________________________________________________

Describe any unusual or extraordinary terms of the sale or

transfer that affected the amount of the sales price or

consideration: _____________________________

Describe any other facts or circumstances that affected the

amount of the sales price or consideration: ______________________

To the best of my knowledge, this statement is true and

accurate.

Purchaser's or grantee's signature: _______________

Date: ____________

Return this form to: ______________________________.

(b) The appraisal district shall include at the end of the

form instructions for the filing of the form by mail, hand delivery,

or, if permitted by the chief appraiser, e-mail or other electronic

means.

(c) Each appraisal district shall prepare and make

available sales price disclosure report forms that conform to the

requirements of this section. Except for instructions for the

filing of the form, no additional information may be required to be

included in a sales price disclosure report form.

(d) Each county clerk's or combined county and district

clerk's office shall provide at no charge a sales price disclosure

report form to each grantee or agent of a grantee who appears in

person and tenders a deed to real property for recording. The sales

price disclosure form must be the form that is prepared and made

available by the appraisal district established for the county in

which the property is located.

(e) At the end of a calendar month in which a deed to real

property has been recorded in the deed records of the county, the

county clerk or the combined county and district clerk shall

provide the appraisal district established for the county with a

copy of the grantee index or a report or list of deeds to real

property filed for recording in that month.

Sec. 22.63. FILING AND RECEIPT OF REPORT. (a) A purchaser

or grantee may file a sales price disclosure report with a chief

appraiser by mail, hand delivery, or e-mail or other electronic

means.

(b) On receipt of the completed sales price disclosure

report, the chief appraiser shall provide to the purchaser or

grantee a written acknowledgement that the report has been

received. If the acknowledgement of receipt is mailed, the chief

appraiser shall mail it to the purchaser or grantee at the address

provided in the report.

Sec. 22.64. PREPARATION OF REPORT; IMMUNITY FROM LIABILITY.

(a) A sales price disclosure report must be prepared by the

purchaser or grantee of the property described in the report or by a

title insurance company, lender, real estate agent, or attorney.

(b) A title insurance company, lender, real estate agent, or

attorney who prepares a sales price disclosure report is not liable

to any person for preparing the report or for any unintentional

errors or omissions in the report.

(c) The applicable title insurance company, lender, real

estate agent, or attorney shall provide a sales price disclosure

report form and filing instructions to each purchaser or grantee of

real property unless the insurance company, lender, real estate

agent, or attorney prepares the disclosure report or has confirmed

that another person described by Subsection (a), other than the

purchaser or grantee, will prepare and file the disclosure report.

Sec. 22.65. ACTION TO COMPEL COMPLIANCE. The chief

appraiser may bring an action for an injunction to compel a person

to comply with the requirements of this subchapter. If the court

finds that this subchapter applies and that the person has failed to

fully comply with its requirements, the court:

(1) shall order the person to comply; and

(2) may assess costs and reasonable attorney's fees

against the person.

SECTION 3. Section 23.013, Tax Code, is amended by adding

Subsection (f) to read as follows:

(f) The chief appraiser may use information contained in a

sales price disclosure report filed under Subchapter D, Chapter 22,

in determining the market value of real property but may not

increase the market value of the real property described in the

report solely on the basis of the information contained in the

report.

SECTION 4. Section 41.43, Tax Code, is amended by amending

Subsections (a) and (a-2) and adding Subsection (a-6) to read as

follows:

(a) Except as provided by Subsections (a-1), (a-3), (a-6),

and (d), in a protest authorized by Section 41.41(a)(1) or (2), the

appraisal district has the burden of establishing the value of the

property by a preponderance of the evidence presented at the

hearing. If the appraisal district fails to meet that standard, the

protest shall be determined in favor of the property owner.

(a-2) To be valid, an appraisal filed under Subsection (a-1)

or (a-6) must be attested to before an officer authorized to

administer oaths and include:

(1) the name and business address of the certified

appraiser;

(2) a description of the property that was the subject

of the appraisal;

(3) a statement that the appraised or market value of

the property:

(A) was, as applicable, the appraised or market

value of the property as of January 1 of the current tax year; and

(B) was determined using a method of appraisal

authorized or required by Chapter 23; and

(4) a statement that the appraisal was performed in

accordance with the Uniform Standards of Professional Appraisal

Practice.

(a-6) Notwithstanding Subsection (a-1), if in the protest

relating to a parcel of residential real property the property

owner files with the appraisal review board and, not later than the

14th day before the date of the first day of the hearing, delivers

to the chief appraiser a copy of an appraisal of the property

performed not later than the 180th day before the date of the first

day of the hearing by an appraiser certified under Chapter 1103,

Occupations Code, that supports the appraised or market value of

the property asserted by the property owner, the appraisal review

board shall:

(1) determine the protest in favor of the property

owner; and

(2) issue an order changing the property's appraised

or market value in the appraisal records to the value determined by

the appraisal of the property filed by the property owner.

SECTION 5. Section 37.10(c)(4), Penal Code, is amended to

read as follows:

(4) An offense under this section is a Class B

misdemeanor if it is shown on the trial of the offense that the

governmental record is a written appraisal filed with an appraisal

review board under Section 41.43(a-1) or (a-6) , Tax Code, that was

performed by a person who had a contingency interest in the outcome

of the appraisal review board hearing.

SECTION 6. (a) As soon as practicable after September 1,

2025, but not later than January 1, 2026, each appraisal district

shall prepare and make available sales price disclosure report

forms as provided by Section 22.62, Tax Code, as added by this Act.

(b) Subchapter D, Chapter 22, Tax Code, as added by this

Act, applies only to a sale of real property that occurs on or after

January 1, 2026.

(c) Section 23.013(f), Tax Code, as added by this Act,

applies only to an ad valorem tax year that begins on or after

January 1, 2026.

(d) Section 41.43, Tax Code, and Section 37.10(c)(4), Penal

Code, as amended by this Act, apply only to a protest under Chapter

41, Tax Code, for which a notice of protest is filed on or after

September 1, 2025.

SECTION 7. (a) Except as provided by Subsection (b) of this

section, this Act takes effect September 1, 2025.

(b) The heading to Subchapter C, Chapter 22, Tax Code, as

amended by this Act, and Subchapter D, Chapter 22, and Section

23.013(f), Tax Code, as added by this Act, take effect January 1,

2026.