89R4511 DRS-D

By: Bell of Montgomery H.B. No. 291

A BILL TO BE ENTITLED

AN ACT

relating to the appraisal of real property for ad valorem tax purposes.

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

SECTION 1. The heading to Subchapter C, Chapter 22, Tax Code, is amended to read as follows:

SUBCHAPTER C. [OTHER] REPORTS OF POLITICAL SUBDIVISION ACTIONS

SECTION 2. Chapter 22, Tax Code, is amended by adding Subchapter D to read as follows:

SUBCHAPTER D. REPORT OF SALES PRICE

Sec. 22.61. SALES PRICE DISCLOSURE REPORT. (a) Except as provided by Subsection (b), not later than the 10th day after the date the deed is recorded in the county real property records, the purchaser or grantee of real property under a recorded deed conveying an interest in the real property shall file a sales price disclosure report with the chief appraiser of the appraisal district established for the county in which the property is located.

(b) This section does not apply to a sale or other transfer of real property if the sale or other transfer is made:

(1) pursuant to a court order;

(2) to or from a trustee in bankruptcy;

(3) pursuant to a power of sale under a deed of trust or other encumbrance secured by the property;

(4) by a deed in lieu of foreclosure;

(5) by one co-owner to one or more other co-owners;

(6) to a spouse or to a person or persons in the first degree of lineal consanguinity of one or more of the sellers or grantors;

(7) of an interest less than a full fee simple interest; or

(8) to an entity having the power to acquire the property by eminent domain.

(c) A sales price disclosure report must be signed by the purchaser or grantee of the real property described in the report.

Sec. 22.62. REPORT FORM. (a) A sales price disclosure report filed under this subchapter must read as follows, with the appropriate information included in the blanks:

SALES PRICE DISCLOSURE REPORT

Section 22.61, Tax Code, requires a purchaser or grantee under a deed to prepare this report, sign it, and file it with the chief appraiser of the appraisal district established for the county in which the property is located not later than the third day after the date the deed is recorded. This report is not required to be filed if the sale or transfer is made: (1) under a court order; (2) to or from a trustee in bankruptcy; (3) under a deed of trust or other encumbrance secured by the property; (4) by a deed in lieu of foreclosure; (5) between co-owners; or (6) between spouses or between family members in the first degree of lineal consanguinity. Knowingly making a false statement on this form is grounds for prosecution of a Class A misdemeanor or a state jail felony under Section 37.10, Penal Code. The chief appraiser may not use the information in this form as the sole basis on which to increase the market value of the property.

Seller's or grantor's name: ___________________

Purchaser's or grantee's name: ________________

Purchaser's or grantee's address: _____________

Property description (as stated in deed): _____

Sales price or other consideration paid for the property: ________

The method used to finance the sales price or consideration was: □ none (cash sale) □ cash and third-party financing □ cash and seller financing □ exchange of other property □ other, describe: ______________________________________________________

Describe any unusual or extraordinary terms of the sale or transfer that affected the amount of the sales price or consideration: _____________________________

Describe any other facts or circumstances that affected the amount of the sales price or consideration: ______________________

To the best of my knowledge, this statement is true and accurate.

Purchaser's or grantee's signature: _______________

Date: ____________

Return this form to: ______________________________.

(b) The appraisal district shall include at the end of the form instructions for the filing of the form by mail, hand delivery, or, if permitted by the chief appraiser, e-mail or other electronic means.

(c) Each appraisal district shall prepare and make available sales price disclosure report forms that conform to the requirements of this section. Except for instructions for the filing of the form, no additional information may be required to be included in a sales price disclosure report form.

(d) Each county clerk's or combined county and district clerk's office shall provide at no charge a sales price disclosure report form to each grantee or agent of a grantee who appears in person and tenders a deed to real property for recording. The sales price disclosure form must be the form that is prepared and made available by the appraisal district established for the county in which the property is located.

(e) At the end of a calendar month in which a deed to real property has been recorded in the deed records of the county, the county clerk or the combined county and district clerk shall provide the appraisal district established for the county with a copy of the grantee index or a report or list of deeds to real property filed for recording in that month.

Sec. 22.63. FILING AND RECEIPT OF REPORT. (a) A purchaser or grantee may file a sales price disclosure report with a chief appraiser by mail, hand delivery, or e-mail or other electronic means.

(b) On receipt of the completed sales price disclosure report, the chief appraiser shall provide to the purchaser or grantee a written acknowledgement that the report has been received. If the acknowledgement of receipt is mailed, the chief appraiser shall mail it to the purchaser or grantee at the address provided in the report.

Sec. 22.64. PREPARATION OF REPORT; IMMUNITY FROM LIABILITY. (a) A sales price disclosure report must be prepared by the purchaser or grantee of the property described in the report or by a title insurance company, lender, real estate agent, or attorney.

(b) A title insurance company, lender, real estate agent, or attorney who prepares a sales price disclosure report is not liable to any person for preparing the report or for any unintentional errors or omissions in the report.

(c) The applicable title insurance company, lender, real estate agent, or attorney shall provide a sales price disclosure report form and filing instructions to each purchaser or grantee of real property unless the insurance company, lender, real estate agent, or attorney prepares the disclosure report or has confirmed that another person described by Subsection (a), other than the purchaser or grantee, will prepare and file the disclosure report.

Sec. 22.65. ACTION TO COMPEL COMPLIANCE. The chief appraiser may bring an action for an injunction to compel a person to comply with the requirements of this subchapter. If the court finds that this subchapter applies and that the person has failed to fully comply with its requirements, the court:

(1) shall order the person to comply; and

(2) may assess costs and reasonable attorney's fees against the person.

SECTION 3. Section 23.013, Tax Code, is amended by adding Subsection (f) to read as follows:

(f) The chief appraiser may use information contained in a sales price disclosure report filed under Subchapter D, Chapter 22, in determining the market value of real property but may not increase the market value of the real property described in the report solely on the basis of the information contained in the report.

SECTION 4. Section 41.43, Tax Code, is amended by amending Subsections (a) and (a-2) and adding Subsection (a-6) to read as follows:

(a) Except as provided by Subsections (a-1), (a-3), (a-6), and (d), in a protest authorized by Section 41.41(a)(1) or (2), the appraisal district has the burden of establishing the value of the property by a preponderance of the evidence presented at the hearing. If the appraisal district fails to meet that standard, the protest shall be determined in favor of the property owner.

(a-2) To be valid, an appraisal filed under Subsection (a-1) or (a-6) must be attested to before an officer authorized to administer oaths and include:

(1) the name and business address of the certified appraiser;

(2) a description of the property that was the subject of the appraisal;

(3) a statement that the appraised or market value of the property:

(A) was, as applicable, the appraised or market value of the property as of January 1 of the current tax year; and

(B) was determined using a method of appraisal authorized or required by Chapter 23; and

(4) a statement that the appraisal was performed in accordance with the Uniform Standards of Professional Appraisal Practice.

(a-6) Notwithstanding Subsection (a-1), if in the protest relating to a parcel of residential real property the property owner files with the appraisal review board and, not later than the 14th day before the date of the first day of the hearing, delivers to the chief appraiser a copy of an appraisal of the property performed not later than the 180th day before the date of the first day of the hearing by an appraiser certified under Chapter 1103, Occupations Code, that supports the appraised or market value of the property asserted by the property owner, the appraisal review board shall:

(1) determine the protest in favor of the property owner; and

(2) issue an order changing the property's appraised or market value in the appraisal records to the value determined by the appraisal of the property filed by the property owner.

SECTION 5. Section 37.10(c)(4), Penal Code, is amended to read as follows:

(4) An offense under this section is a Class B misdemeanor if it is shown on the trial of the offense that the governmental record is a written appraisal filed with an appraisal review board under Section 41.43(a-1) or (a-6), Tax Code, that was performed by a person who had a contingency interest in the outcome of the appraisal review board hearing.

SECTION 6. (a) As soon as practicable after September 1, 2025, but not later than January 1, 2026, each appraisal district shall prepare and make available sales price disclosure report forms as provided by Section 22.62, Tax Code, as added by this Act.

(b) Subchapter D, Chapter 22, Tax Code, as added by this Act, applies only to a sale of real property that occurs on or after January 1, 2026.

(c) Section 23.013(f), Tax Code, as added by this Act, applies only to an ad valorem tax year that begins on or after January 1, 2026.

(d) Section 41.43, Tax Code, and Section 37.10(c)(4), Penal Code, as amended by this Act, apply only to a protest under Chapter 41, Tax Code, for which a notice of protest is filed on or after September 1, 2025.

SECTION 7. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2025.

(b) The heading to Subchapter C, Chapter 22, Tax Code, as amended by this Act, and Subchapter D, Chapter 22, and Section 23.013(f), Tax Code, as added by this Act, take effect January 1, 2026.