bill tilting appraisal fights toward property owners

The text as introduced · 453 words

89R16288 CS-F

By: Middleton
S.B. No. 2535

A BILL TO BE ENTITLED

AN ACT

relating to the appraisal of property for ad valorem tax purposes,

including protests, arbitrations, and appeals regarding

appraisals.

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

SECTION 1. Section 23.01(e), Tax Code, is amended to read as

follows:

(e) Notwithstanding any provision of this subchapter to the

contrary, if the appraised value of property in a tax year is

lowered under Subtitle F, the appraised value of the property as

finally determined under that subtitle is considered to be the

appraised value of the property for that tax year. In the next tax

year in which the property is appraised, the appraisal district

[ chief appraiser ] may not increase the appraised value of the

property unless the increase by the appraisal district [ chief

appraiser ] is reasonably supported by clear and convincing evidence

when all of the reliable and probative evidence in the record is

considered as a whole. If the appraised value is finally determined

in a protest under Section 41.41(a)(2) or an appeal under Section

42.26, the appraisal district [ chief appraiser ] may satisfy the

requirement to reasonably support by clear and convincing evidence

an increase in the appraised value of the property in the next tax

year in which the property is appraised by presenting evidence

showing that the inequality in the appraisal of property has been

corrected with regard to the properties that were considered in

determining the value of the subject property. The burden of proof

is on the appraisal district [ chief appraiser ] to support an

increase in the appraised value of property under the circumstances

described by this subsection.

SECTION 2. Section 41A.015(k), Tax Code, is amended to read

as follows:

(k) If the arbitrator determines that the appraisal review

board or chief appraiser failed to comply with the procedural

requirement that was the subject of the limited binding

arbitration:

(1) the comptroller, on receipt of a copy of the award,

shall refund the property owner's arbitration deposit, less the

amount retained by the comptroller under Section 41A.05(b); and

(2) the appraisal district shall pay :

(A) the arbitrator's fee ; and

(B) the property owner's reasonable attorney's

fees and costs in the amounts determined by the arbitrator .

SECTION 3. Section 42.23, Tax Code, is amended by adding

Subsection (b-1) to read as follows:

(b-1) The appraisal district has the burden of establishing

the value of the property by clear and convincing evidence if the

appraised value of the property was lowered under this subtitle in

the preceding year in an appeal under Section 42.01(a)(1)(A).

SECTION 4. This Act takes effect September 1, 2025.