Villalobos Tax Bill Drops Disputed Value, Rates Come Out Higher

The text as introduced · 1,719 words

89R3984 RDS-F

By: Villalobos
H.B. No. 3094

A BILL TO BE ENTITLED

AN ACT

relating to the calculation of certain ad valorem tax rates of a

taxing unit for a year in which a property owner provides notice

that the owner intends to appeal an order of an appraisal review

board determining a protest by the owner regarding the appraisal of

the owner's property.

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

SECTION 1. Section 5.07(g), Tax Code, is amended to read as

follows:

(g) The forms described by Subsection (f) must be in an

electronic format and:

(1) have blanks that can be filled in electronically;

(2) be capable of being certified by the designated

officer or employee after completion as accurately calculating the

applicable tax rates and using values that are the same as the

values shown in, as applicable:

(A) the taxing unit's certified appraisal roll;

or

(B) the certified estimate of taxable value of

property in the taxing unit prepared under Section 26.01(a-1);

[ and ]

(3) be capable of being electronically incorporated

into the property tax database maintained by each appraisal

district under Section 26.17 and submitted electronically to the

county assessor-collector of each county in which all or part of the

territory of the taxing unit is located ; and

(4) be capable of including the addendum to the forms

required by Section 26.04(d-3), if applicable .

SECTION 2. Section 26.012, Tax Code, is amended by adding

Subdivisions (1-a), (1-b), (2-a), and (20) to read as follows:

(1-a) "Anticipated substantial litigation" means one

or more appeals filed or intended to be filed under Chapter 42 for a

tax year by a single property owner or by one or more associated

business entities of a single property owner of one or more orders

of an appraisal review board determining one or more protests by the

owner or entities of the taxable value of one or more parcels of

property located in an appraisal district, if any of the properties

had a taxable value in the preceding tax year that was one of the 20

highest in the appraisal district.

(1-b) "Associated business entity" means a subsidiary

or other associated business entity of a property owner.

(2-a) "Contested taxable value" means for a tax year

the difference between:

(A) the taxable value of a property stated in or

determined from:

(i) an order issued by the appraisal review

board hearing a protest pertaining to the property for the tax year

under Chapter 41; or

(ii) if the appraisal review board has not

issued an order determining the protest, the notice of appraised

value for the property delivered under Section 25.19 for the most

recent tax year; and

(B) the:

(i) taxable value of the property asserted

by the owner of the property in an appeal of the appraisal review

board order under Chapter 42; or

(ii) if the owner has not filed an appeal, a

good faith determination of the taxable value the owner will assert

in the appeal.

(20) "Uncontested taxable value" means the portion of

the taxable value of a property that is not contested taxable value.

SECTION 3. Section 26.012(6), Tax Code, is amended to read

as follows:

(6) "Current total value" means the total taxable

value of property listed on the appraisal roll for the current year,

including all appraisal roll supplements and corrections as of the

date of the calculation, less the taxable value of property

exempted for the current tax year for the first time under Section

11.31 or 11.315, except that:

(A) the current total value for a school district

excludes:

(i) the total value of homesteads that

qualify for a tax limitation as provided by Section 11.26;

(ii) new property value of property that is

subject to an agreement entered into under former Subchapter B or C,

Chapter 313; and

(iii) new property value of property that

is subject to an agreement entered into under Subchapter T, Chapter

403, Government Code; [ and ]

(B) the current total value for a county,

municipality, or junior college district excludes the total value

of homesteads that qualify for a tax limitation provided by Section

11.261 ; and

(C) the current total value for a taxing unit

excludes the portion of the aggregate taxable value of all of the

property located in the taxing unit that is included as part of

anticipated substantial litigation that consists of contested

taxable value .

SECTION 4. Section 26.04(d-3), Tax Code, is amended to read

as follows:

(d-3) As soon as practicable after the designated officer or

employee calculates the no-new-revenue tax rate and the

voter-approval tax rate of the taxing unit, the designated officer

or employee shall submit the tax rate calculation forms used in

calculating the rates to the county assessor-collector for each

county in which all or part of the territory of the taxing unit is

located. If an amount described by Section 26.012(6)(C) is

excluded from the current total value of a taxing unit for a tax

year, the designated officer or employee for the taxing unit shall

include as an addendum to the tax rate calculation forms for that

tax year:

(1) documentation that supports the exclusion; and

(2) each statement submitted to the designated officer

or employee under Section 41.48(c)(2) for that tax year.

SECTION 5. Section 26.16(d-1), Tax Code, is amended to read

as follows:

(d-1) In addition to posting the information described by

Subsection (a), the county assessor-collector shall post on the

Internet website of the county for each taxing unit all or part of

the territory of which is located in the county:

(1) the tax rate calculation forms used by the

designated officer or employee of each taxing unit to calculate the

no-new-revenue and voter-approval tax rates of the taxing unit for

the most recent five tax years beginning with the 2020 tax year, as

certified by the designated officer or employee under Section

26.04(d-2) , along with the addendum to those forms required by

Section 26.04(d-3), if applicable ; and

(2) the name and official contact information for each

member of the governing body of the taxing unit.

SECTION 6. Sections 26.17(e) and (f), Tax Code, are amended

to read as follows:

(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)(5),

(6), (7), (12), and (13), as applicable, as the information becomes

available; and

(2) the tax rate calculation forms prepared under

Section 26.04(d-1) , along with the addendum to those forms required

by Section 26.04(d-3), if applicable, 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).

(f) The chief appraiser shall make the information

described by Subsection (e)(1) and the tax rate calculation forms ,

along with the addendum to those forms required by Section

26.04(d-3), if applicable, described by Subsection (e)(2)

available to the public not later than the third business day after

the date the information and forms are incorporated into the

database.

SECTION 7. Subchapter C, Chapter 41, Tax Code, is amended by

adding Section 41.48 to read as follows:

Sec. 41.48. NOTICE OF CERTAIN APPEALS; SUBMISSIONS BY

PROPERTY OWNER. (a) In this section, "anticipated substantial

litigation," "associated business entity," and "uncontested

taxable value" have the meanings assigned by Section 26.012.

(b) Not later than July 1, the chief appraiser of each

appraisal district shall notify:

(1) each owner of property located in the appraisal

district that had a taxable value in the preceding tax year that was

one of the 20 highest in the appraisal district that the owner may

have to comply with the requirements of this section; and

(2) each taxing unit wholly or partly located in the

appraisal district of the name of each owner described by

Subdivision (1) who owns property located in the taxing unit.

(c) A property owner or associated business entity of the

owner that intends to file an appeal under Chapter 42 that is part

of anticipated substantial litigation shall submit to the officer

or employee designated under Section 26.04(c) by the governing body

of each taxing unit in which the property included in the litigation

is located:

(1) the total amount of uncontested taxable value of

all property located in the taxing unit that may be the subject of

an appeal by the property owner or entity and that is part of the

litigation; and

(2) a written statement providing that the property

owner or entity intends to pay the tax due on the amount of the

uncontested taxable value.

(d) A property owner or associated business entity of the

property owner must submit the information required to be submitted

under this section not later than the earlier of August 7 or the

21st day after the date the first hearing regarding a protest of the

value of any property included in the anticipated substantial

litigation is conducted under this chapter.

(e) Notwithstanding any other provision of this section,

the amount of uncontested taxable value submitted to a designated

officer or employee under this section may be used by the designated

officer or employee only for the purpose of calculating a tax rate

under Section 26.04 and may not be construed as an amount of value

of a property that is not in dispute for purposes of a proceeding

under Chapter 42.

SECTION 8. (a) Except as provided by Subsection (b) of this

section, the changes in law made by this Act apply to an ad valorem

tax year that begins on or after January 1, 2026.

(b) If this Act receives the vote necessary to have

immediate effect, the changes in law made by this Act apply to an ad

valorem tax year that begins on or after January 1, 2025.

SECTION 9. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.