yearly reappraisal of all property, plus board training

The text as introduced · 1,883 words

89R8134 MLH-F

By: Turner
H.B. No. 5055

A BILL TO BE ENTITLED

AN ACT

relating to the system for appraising property for ad valorem tax

purposes; authorizing a fee.

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

SECTION 1. Chapter 5, Tax Code, is amended by adding Section

5.044 to read as follows:

Sec. 5.044. TRAINING OF APPRAISAL DISTRICT BOARD OF

DIRECTORS MEMBERS. (a) The comptroller shall:

(1) approve curricula and provide materials for use in

training and educating members of an appraisal district board of

directors;

(2) supervise a comprehensive course for training and

education of members of an appraisal district board of directors;

(3) issue certificates indicating completion of the

course; and

(4) make all materials for use in training and

educating members of an appraisal district board of directors

freely available online.

(b) The course established under Subsection (a):

(1) must:

(A) include information on the duties and

responsibilities of a member of an appraisal district board of

directors; and

(B) be at least four hours in length; and

(2) may:

(A) be provided online; and

(B) include a summary of the requirements of

Chapters 551 and 552, Government Code, but may not fully duplicate

training provided by the attorney general on the requirements of

those chapters.

(c) A member of an appraisal district board of directors

must complete the course established under Subsection (a) before

the beginning of each term the member serves on the board. A member

of an appraisal district board of directors may not vote,

deliberate, or be counted as a member in attendance at a meeting of

the board unless the person has completed the course established

under Subsection (a) and received a certificate of course

completion.

(d) The comptroller may contract with service providers to

assist with the duties imposed under Subsection (a), but the course

required may not be provided by an appraisal district, the chief

appraiser or another employee of an appraisal district, a member of

the board of directors of an appraisal district, a member of an

appraisal review board, or a taxing unit.

(e) The comptroller may assess a fee to recover a portion of

the costs incurred for the course established under Subsection (a),

but the fee may not exceed $50 for each person trained. If the

training is provided to an individual other than a member of an

appraisal district board of directors, the comptroller may assess a

fee not to exceed $50 for each person trained.

(f) The course material for the course required under

Subsection (a) is the comptroller's Appraisal District Director's

Manual.

SECTION 2. Subchapter A, Chapter 6, Tax Code, is amended by

adding Section 6.0302 to read as follows:

Sec. 6.0302. ACKNOWLEDGMENT OF DIRECTOR'S DUTIES. (a) An

individual may not be appointed to an appointive position on the

board of directors of an appraisal district unless the individual

has:

(1) signed the acknowledgment described by this

section; and

(2) submitted the signed acknowledgment to the chief

appraiser of the appraisal district.

(b) An individual may not file an application for a place on

the ballot for an elective position on the board of directors of an

appraisal district under Section 6.032 unless the individual has:

(1) signed the acknowledgment described by this

section; and

(2) submitted the signed acknowledgment to the chief

appraiser of the appraisal district.

(c) Each candidate for an appointive or elective position on

the board of directors of an appraisal district must sign a

statement in the following form:

"ACKNOWLEDGMENT OF DUTIES OF MEMBER OF APPRAISAL DISTRICT BOARD OF

DIRECTORS

"I hereby acknowledge that I have read and understand the

duties of a member of the board of directors of an appraisal

district. I understand that the statutory responsibilities

include:

"(1) establishing the appraisal district office;

"(2) hiring a chief appraiser;

"(3) adopting the appraisal district's annual operating

budget after filing notice and holding a public hearing;

"(4) adopting a new budget if voting taxing units

disapprove of the initial budget;

"(5) determining whether to remove members of the

appraisal review board if the board of directors of the appraisal

district is the appointing authority and potential grounds for

removal arise;

"(6) notifying voting taxing units of any vacancy in an

appointive position on the board and electing a replacement from

submitted nominees;

"(7) appointing a person to fill a vacancy in an

elective position on the board;

"(8) electing a chairman and a secretary of the board at

the first meeting each year;

"(9) holding board meetings at least quarterly;

"(10) developing and implementing policies regarding

reasonable access to the board;

"(11) preparing information describing the board's

functions and complaint procedures and making that information

available to the public and to participating taxing units;

"(12) notifying parties to a complaint filed with the

board of the status of the complaint, unless otherwise provided;

"(13) in populous counties, appointing a taxpayer

liaison officer and deputy taxpayer liaison officers;

"(14) annually evaluating the performance of the

taxpayer liaison officer and any deputy taxpayer liaison officers,

including reviewing the timeliness of complaint resolution;

"(15) referring matters investigated by a taxpayer

liaison officer relating to the appraisal review board's conduct to

the local administrative district judge with a recommendation;

"(16) developing a biennial written plan for the annual

reappraisal of all property in the appraisal district, filing

notice and holding a public hearing on the plan, approving the plan,

and distributing copies of the plan to participating taxing units

and the comptroller;

"(17) making agreements with newly formed taxing units

on an estimated budget allocation for that taxing unit;

"(18) having an annual financial audit prepared by an

independent certified public accountant, delivering a copy of the

audit to each voting taxing unit, and making the audit available for

inspection at the appraisal district office;

"(19) designating the appraisal district depository

biennially;

"(20) receiving resolutions from voting taxing units

disapproving of board actions;

"(21) adhering to Local Government Code requirements

for purchasing and entering into contracts;

"(22) providing advice and consent to the chief

appraiser concerning the appointment of an agricultural appraisal

advisory board and determining the number of members of that

advisory board;

"(23) adhering to laws concerning the preservation,

microfilming, destruction, or other disposition of records; and

"(24) adopting and implementing a policy for the

temporary replacement of a member of an appraisal review board who

violates ex parte communication requirements.

"Furthermore, I recognize that the board does not appraise

property or review the value of individual properties. I

acknowledge that tax rates and tax burdens are determined by

applicable taxing jurisdictions, not the appraisal district board

of directors."

SECTION 3. 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 4. 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 5. Section 23.23(a), Tax Code, is amended to read as

follows:

(a) The [ 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 is equal 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 6. 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 7. The heading to Section 25.18, Tax Code, is

amended to read as follows:

Sec. 25.18. ANNUAL [ PERIODIC ] REAPPRAISALS.

SECTION 8. 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 9. The comptroller of public accounts shall make

available the training course required by Section 5.044, Tax Code,

as added by this Act, not later than November 1, 2025.

SECTION 10. Sections 5.044 and 6.0302, Tax Code, as added by

this Act, apply only to a person appointed or elected to the board

of directors of an appraisal district whose term begins on or after

January 1, 2026.

SECTION 11. 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 12. (a) Except as provided by Subsection (b) of

this section, this Act takes effect September 1, 2025.

(b) Sections 3, 4, 5, 6, 7, 8, and 11 of this Act take effect

January 1, 2026.