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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of an appraisal district to increase the |
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appraised value of property for ad valorem tax purposes in the next |
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tax year in which the property is appraised after a year in which |
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the appraised value of the property is lowered as a result of an |
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agreement, protest, or appeal. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.01, Tax Code, is amended by amending |
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Subsection (e) and adding Subsection (e-1) to read as follows: |
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(e) Notwithstanding any provision of this subchapter to the |
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contrary, if the appraised value of property in a tax year is |
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lowered as a result of an agreement between the property owner and |
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the appraisal district or as a result of a protest or appeal under |
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Subtitle F, the appraised value of the property as specified in the |
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agreement or as finally determined under that subtitle is |
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considered to be the appraised value of the property for that tax |
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year. In the next tax year in which the property is appraised, the |
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chief appraiser may not increase the appraised value of the |
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property unless the increase by the chief appraiser is reasonably |
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supported by clear and convincing evidence when all of the reliable |
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and probative evidence in the record is considered as a whole. If |
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the appraised value is finally determined in a protest under |
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Section 41.41(a)(2) or an appeal under Section 42.26, the chief |
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appraiser may satisfy the requirement to reasonably support by |
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clear and convincing evidence an increase in the appraised value of |
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the property in the next tax year in which the property is appraised |
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by presenting evidence showing that the inequality in the appraisal |
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of property has been corrected with regard to the properties that |
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were considered in determining the value of the subject |
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property. The burden of proof is on the chief appraiser to support |
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an increase in the appraised value of property under the |
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circumstances described by this subsection. |
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(e-1) Notwithstanding Subsection (e) of this section and |
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Section 23.23, if the appraised value of property in a tax year is |
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lowered under the circumstances described by Subsection (e), the |
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chief appraiser may not increase the appraised value of the |
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property in the next tax year in which the property is appraised by |
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an amount that exceeds the sum of five percent of the appraised |
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value of the property in the tax year in which the appraised value |
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of the property is lowered and the market value of all new |
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improvements to the property. This subsection does not apply to an |
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increase in the appraised value of property as a result of: |
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(1) the property no longer being eligible for |
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appraisal under Subchapter C, D, E, F, G, or H; or |
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(2) the expiration of a limitation on appraised value |
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under Section 23.23(a) applicable to the property. |
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SECTION 2. This Act applies only to the appraisal of |
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property for a tax year that begins on or after the effective date |
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of this Act. |
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SECTION 3. This Act takes effect January 1, 2022, but only |
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if the constitutional amendment proposed by the 87th Legislature, |
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Regular Session, 2021, to authorize the legislature to provide that |
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if in a tax year the owner of property disputes the appraisal of the |
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property and the appraised value is lowered as a result, the |
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appraisal entity may not increase the appraised value of the |
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property in the next tax year in which the property is appraised by |
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more than a specified percentage is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |