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A BILL TO BE ENTITLED
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AN ACT
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relating to ad valorem tax protests and appeals on the ground of the |
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unequal appraisal of property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 25.25, Tax Code, is amended by amending |
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Subsection (d-1) and adding Subsection (d-2) to read as follows: |
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(d-1) A property owner may file a motion under Subsection |
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(d) on the ground of unequal appraisal of property. |
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(d-2) If the appraisal roll is changed under Subsection (d), |
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the property owner must pay to each affected taxing unit a |
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late-correction penalty equal to 10 percent of the amount of taxes |
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as calculated on the basis of the corrected appraised value. |
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Payment of the late-correction penalty is secured by the lien that |
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attaches to the property under Section 32.01 and is subject to |
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enforced collection under Chapter 33. The roll may not be changed |
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under Subsection (d) if: |
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(1) the property was the subject of a protest brought |
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by the property owner under Chapter 41, a hearing on the protest was |
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conducted in which the property owner offered evidence or argument, |
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and the appraisal review board made a determination of the protest |
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on the merits; or |
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(2) the appraised value of the property was |
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established as a result of a written agreement between the property |
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owner or the owner's agent and the appraisal district. |
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SECTION 2. Section 41.43, Tax Code, is amended by adding |
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Subsections (e) and (f) to read as follows: |
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(e) In a protest authorized by Sections 41.41(a)(1) and (2) |
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in which the property owner submits evidence to support the |
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property owner's protest on the ground of determination of |
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appraised value and on the ground of unequal appraisal, the |
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appraisal review board shall determine: |
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(1) the value of the property; and |
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(2) whether the property owner is entitled to relief |
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on the ground of unequal appraisal under Subsection (b). |
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(f) If the appraisal review board determines under |
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Subsection (e) that the value of the property for purposes of the |
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protest authorized under Section 41.41(a)(1) is different from the |
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value of the property established to determine whether the property |
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was appraised equally for purposes of the protest authorized under |
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Section 41.41(a)(2), the appraisal review board shall order the |
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property's appraised value changed to the value that results in the |
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lower appraised value. |
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SECTION 3. Section 42.26, Tax Code, is amended by adding |
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Subsection (c-1) and amending Subsection (d) to read as follows: |
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(c-1) The court may admit evidence of the market value of |
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the property subject to the suit only for purposes of establishing |
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the appraisal ratio of the property to determine whether the |
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property owner is entitled to relief as provided by Subsection (a). |
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(d) For purposes of this section and subject to Subsection |
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(c-1), the value of the property subject to the suit and the value |
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of a comparable property or sample property that is used for |
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comparison must be the market value determined by the appraisal |
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district when the property is a residence homestead subject to the |
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limitation on appraised value imposed by Section 23.23. |
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SECTION 4. Section 25.25(d-1), Tax Code, as amended by this |
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Act, applies only to a motion to correct an appraisal roll filed |
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under Section 25.25, Tax Code, on or after the effective date of |
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this Act. |
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SECTION 5. Sections 41.43(e) and (f), Tax Code, as added by |
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this Act, apply only to a protest under Chapter 41, Tax Code, for |
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which a notice of protest is filed on or after the effective date of |
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this Act. |
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SECTION 6. Section 42.26(c-1), Tax Code, as added by this |
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Act, applies only to an appeal filed under Chapter 42, Tax Code, on |
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or after the effective date of this Act. An appeal filed under |
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Chapter 42, Tax Code, before the effective date of this Act is |
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governed by the law in effect when the appeal was filed, and the |
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former law is continued in effect for that purpose. |
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SECTION 7. This Act takes effect January 1, 2024. |