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A BILL TO BE ENTITLED
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AN ACT
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relating to a limitation on increases in the appraised value of |
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certain commercial real property for ad valorem tax purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1.12(d), Tax Code, as effective until |
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January 1, 2027, is amended to read as follows: |
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(d) For purposes of this section, the appraisal ratio of |
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property to which Section 23.23, [or] 23.231, or 23.232 applies is |
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the ratio of the property's market value as determined by the |
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appraisal district or appraisal review board, as applicable, to the |
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market value of the property according to law. The appraisal ratio |
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is not calculated according to the appraised value of the property |
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as limited by Section 23.23, [or] 23.231, or 23.232. |
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SECTION 2. Section 1.12(d), Tax Code, as effective January |
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1, 2027, is amended to read as follows: |
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(d) For purposes of this section, the appraisal ratio of |
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|
property [a homestead] to which Section 23.23 or 23.232 applies is |
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the ratio of the property's market value as determined by the |
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appraisal district or appraisal review board, as applicable, to the |
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market value of the property according to law. The appraisal ratio |
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is not calculated according to the appraised value of the property |
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as limited by Section 23.23 or 23.232. |
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SECTION 3. Section 23.231(c), Tax Code, is amended to read |
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as follows: |
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(c) This section does not apply to: |
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(1) a residence homestead that qualifies for an |
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exemption under Section 11.13; [or] |
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(2) property to which Section 23.232 applies; or |
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(3) property appraised under Subchapter C, D, E, F, G, |
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or H. |
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SECTION 4. Subchapter B, Chapter 23, Tax Code, is amended by |
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adding Section 23.232 to read as follows: |
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Sec. 23.232. LIMITATION ON APPRAISED VALUE OF CERTAIN |
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COMMERCIAL REAL PROPERTY. (a) In this section: |
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(1) "Commercial real property" means real property |
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that is held or used for the production of income. |
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(2) "Disaster recovery program" means a disaster |
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recovery program funded with community development block grant |
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disaster recovery money authorized by federal law. |
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(3) "New improvement" means an improvement to |
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commercial real property made after the most recent appraisal of |
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the property that increases the market value of the property and the |
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value of which is not included in the appraised value of the |
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property for the preceding tax year. The term does not include |
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repairs to or ordinary maintenance of an existing structure or the |
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grounds or another feature of the property. |
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(b) This section applies only to a parcel of commercial real |
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property with a market value of $10 million or less for the tax year |
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in which the limitation provided by Subsection (d) takes effect as |
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to the property. |
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(c) This section does not apply to property appraised under |
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Subchapter C, D, E, F, G, or H. |
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(d) Notwithstanding the requirements of Section 25.18 and |
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regardless of whether the appraisal office has appraised the |
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property and determined the market value of the property for the tax |
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year, an appraisal office may increase the appraised value of a |
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parcel of commercial real property for a tax year to an amount not |
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to exceed the lesser of: |
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(1) the market value of the property for the most |
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recent tax year that the market value was determined by the |
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appraisal office; or |
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(2) the sum of: |
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(A) 20 percent of the appraised value of the |
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property for the preceding tax year; |
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(B) the appraised value of the property for the |
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preceding tax year; and |
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(C) the market value of all new improvements to |
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the property. |
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(e) When appraising a parcel of commercial real property, |
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the chief appraiser shall: |
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(1) appraise the property at its market value; and |
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(2) include in the appraisal records both the market |
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value of the property and the amount computed under Subsection |
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(d)(2). |
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(f) The limitation provided by Subsection (d) takes effect |
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as to a parcel of commercial real property on January 1 of the tax |
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year following the first tax year in which the owner owns the |
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property on January 1 and in which the property meets the definition |
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of commercial real property. The limitation expires on January 1 of |
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the tax year following the first tax year in which the owner of the |
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property ceases to own the property or the property no longer meets |
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the definition of commercial real property. |
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(g) For purposes of Subsection (f), a person who acquired a |
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parcel of commercial real property before the 2025 tax year is |
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considered to have acquired the property on January 1, 2025. |
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(h) Notwithstanding Subsections (a)(3) and (d) and except |
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as provided by Subdivision (2) of this subsection, an improvement |
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to property that would otherwise constitute a new improvement is |
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not treated as a new improvement if the improvement is a replacement |
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structure for a structure that was rendered unusable by a casualty |
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or by wind or water damage. For purposes of appraising the property |
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under Subsection (d) in the tax year in which the structure would |
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have constituted a new improvement: |
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(1) the appraised value the property would have had in |
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the preceding tax year if the casualty or damage had not occurred is |
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considered to be the appraised value of the property for that year, |
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regardless of whether that appraised value exceeds the actual |
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appraised value of the property for that year as limited by |
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Subsection (d); and |
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(2) the replacement structure is considered to be a |
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new improvement only if: |
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(A) the square footage of the replacement |
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structure exceeds that of the replaced structure as that structure |
|
|
existed before the casualty or damage occurred; or |
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(B) the exterior of the replacement structure is |
|
|
of higher quality construction and composition than that of the |
|
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replaced structure. |
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(i) Notwithstanding Subsection (h)(2), and only to the |
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extent necessary to satisfy the requirements of a disaster recovery |
|
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program, a replacement structure described by that subdivision is |
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not considered to be a new improvement if to satisfy the |
|
|
requirements of the disaster recovery program it was necessary |
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|
that: |
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(1) the square footage of the replacement structure |
|
|
exceed that of the replaced structure as that structure existed |
|
|
before the casualty or damage occurred; or |
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(2) the exterior of the replacement structure be of |
|
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higher quality construction and composition than that of the |
|
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replaced structure. |
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SECTION 5. Sections 25.19(b) and (g), Tax Code, as |
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|
effective until January 1, 2027, are amended to read as follows: |
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(b) The chief appraiser shall separate real from personal |
|
|
property and include in the notice for each: |
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(1) a list of the taxing units in which the property is |
|
|
taxable; |
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(2) the appraised value of the property in the |
|
|
preceding year; |
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(3) the taxable value of the property in the preceding |
|
|
year for each taxing unit taxing the property; |
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(4) the appraised value of the property for the |
|
|
current year, the kind and amount of each exemption and partial |
|
|
exemption, if any, approved for the property for the current year |
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|
and for the preceding year, and, if an exemption or partial |
|
|
exemption that was approved for the preceding year was canceled or |
|
|
reduced for the current year, the amount of the exemption or partial |
|
|
exemption canceled or reduced; |
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(4-a) a statement of whether the property qualifies |
|
|
for the circuit breaker limitation on appraised value provided by |
|
|
Section 23.231 or the limitation on appraised value provided by |
|
|
Section 23.232; |
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|
(5) in italic typeface, the following statement: "The |
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|
Texas Legislature does not set the amount of your local |
|
|
taxes. Your property tax burden is decided by your locally elected |
|
|
officials, and all inquiries concerning your taxes should be |
|
|
directed to those officials"; |
|
|
(6) a detailed explanation of the time and procedure |
|
|
for protesting the value; |
|
|
(7) the date and place the appraisal review board will |
|
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begin hearing protests; |
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(8) an explanation of the availability and purpose of |
|
|
an informal conference with the appraisal office before a hearing |
|
|
on a protest; and |
|
|
(9) a brief explanation that the governing body of |
|
|
each taxing unit decides whether or not taxes on the property will |
|
|
increase and the appraisal district only determines the value of |
|
|
the property. |
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(g) By April 1 or as soon thereafter as practicable if the |
|
|
property is a single-family residence that qualifies for an |
|
|
exemption under Section 11.13, or by May 1 or as soon thereafter as |
|
|
practicable in connection with any other property, the chief |
|
|
appraiser shall deliver a written notice to the owner of each |
|
|
property not included in a notice required to be delivered under |
|
|
Subsection (a), if the property was reappraised in the current tax |
|
|
year, if the ownership of the property changed during the preceding |
|
|
year, or if the property owner or the agent of a property owner |
|
|
authorized under Section 1.111 makes a written request for the |
|
|
notice. The chief appraiser shall separate real from personal |
|
|
property and include in the notice for each property: |
|
|
(1) the appraised value of the property in the |
|
|
preceding year; |
|
|
(2) the appraised value of the property for the |
|
|
current year and the kind of each partial exemption, if any, |
|
|
approved for the current year; |
|
|
(2-a) a statement of whether the property qualifies |
|
|
for the circuit breaker limitation on appraised value provided by |
|
|
Section 23.231 or the limitation on appraised value provided by |
|
|
Section 23.232; |
|
|
(3) a detailed explanation of the time and procedure |
|
|
for protesting the value; and |
|
|
(4) the date and place the appraisal review board will |
|
|
begin hearing protests. |
|
|
SECTION 6. Sections 25.19(b) and (g), Tax Code, as |
|
|
effective January 1, 2027, are amended to read as follows: |
|
|
(b) The chief appraiser shall separate real from personal |
|
|
property and include in the notice for each: |
|
|
(1) a list of the taxing units in which the property is |
|
|
taxable; |
|
|
(2) the appraised value of the property in the |
|
|
preceding year; |
|
|
(3) the taxable value of the property in the preceding |
|
|
year for each taxing unit taxing the property; |
|
|
(4) the appraised value of the property for the |
|
|
current year, the kind and amount of each exemption and partial |
|
|
exemption, if any, approved for the property for the current year |
|
|
and for the preceding year, and, if an exemption or partial |
|
|
exemption that was approved for the preceding year was canceled or |
|
|
reduced for the current year, the amount of the exemption or partial |
|
|
exemption canceled or reduced; |
|
|
(4-a) a statement of whether the property qualifies |
|
|
for the limitation on appraised value provided by Section 23.232; |
|
|
(5) in italic typeface, the following statement: "The |
|
|
Texas Legislature does not set the amount of your local taxes. Your |
|
|
property tax burden is decided by your locally elected officials, |
|
|
and all inquiries concerning your taxes should be directed to those |
|
|
officials"; |
|
|
(6) a detailed explanation of the time and procedure |
|
|
for protesting the value; |
|
|
(7) the date and place the appraisal review board will |
|
|
begin hearing protests; |
|
|
(8) an explanation of the availability and purpose of |
|
|
an informal conference with the appraisal office before a hearing |
|
|
on a protest; and |
|
|
(9) a brief explanation that the governing body of |
|
|
each taxing unit decides whether or not taxes on the property will |
|
|
increase and the appraisal district only determines the value of |
|
|
the property. |
|
|
(g) By April 1 or as soon thereafter as practicable if the |
|
|
property is a single-family residence that qualifies for an |
|
|
exemption under Section 11.13, or by May 1 or as soon thereafter as |
|
|
practicable in connection with any other property, the chief |
|
|
appraiser shall deliver a written notice to the owner of each |
|
|
property not included in a notice required to be delivered under |
|
|
Subsection (a), if the property was reappraised in the current tax |
|
|
year, if the ownership of the property changed during the preceding |
|
|
year, or if the property owner or the agent of a property owner |
|
|
authorized under Section 1.111 makes a written request for the |
|
|
notice. The chief appraiser shall separate real from personal |
|
|
property and include in the notice for each property: |
|
|
(1) the appraised value of the property in the |
|
|
preceding year; |
|
|
(2) the appraised value of the property for the |
|
|
current year and the kind of each partial exemption, if any, |
|
|
approved for the current year; |
|
|
(2-a) a statement of whether the property qualifies |
|
|
for the limitation on appraised value provided by Section 23.232; |
|
|
(3) a detailed explanation of the time and procedure |
|
|
for protesting the value; and |
|
|
(4) the date and place the appraisal review board will |
|
|
begin hearing protests. |
|
|
SECTION 7. Section 41.41(a), Tax Code, as effective until |
|
|
January 1, 2027, is amended to read as follows: |
|
|
(a) A property owner is entitled to protest before the |
|
|
appraisal review board the following actions: |
|
|
(1) determination of the appraised value of the |
|
|
owner's property or, in the case of land appraised as provided by |
|
|
Subchapter C, D, E, or H, Chapter 23, determination of its appraised |
|
|
or market value; |
|
|
(2) unequal appraisal of the owner's property; |
|
|
(3) inclusion of the owner's property on the appraisal |
|
|
records; |
|
|
(4) denial to the property owner in whole or in part of |
|
|
a partial exemption; |
|
|
(4-a) determination that the owner's property does not |
|
|
qualify for the circuit breaker limitation on appraised value |
|
|
provided by Section 23.231 or the limitation on appraised value |
|
|
provided by Section 23.232; |
|
|
(5) determination that the owner's land does not |
|
|
qualify for appraisal as provided by Subchapter C, D, E, or H, |
|
|
Chapter 23; |
|
|
(6) identification of the taxing units in which the |
|
|
owner's property is taxable in the case of the appraisal district's |
|
|
appraisal roll; |
|
|
(7) determination that the property owner is the owner |
|
|
of property; |
|
|
(8) a determination that a change in use of land |
|
|
appraised under Subchapter C, D, E, or H, Chapter 23, has occurred; |
|
|
or |
|
|
(9) any other action of the chief appraiser, appraisal |
|
|
district, or appraisal review board that applies to and adversely |
|
|
affects the property owner. |
|
|
SECTION 8. Section 41.41(a), Tax Code, as effective January |
|
|
1, 2027, is amended to read as follows: |
|
|
(a) A property owner is entitled to protest before the |
|
|
appraisal review board the following actions: |
|
|
(1) determination of the appraised value of the |
|
|
owner's property or, in the case of land appraised as provided by |
|
|
Subchapter C, D, E, or H, Chapter 23, determination of its appraised |
|
|
or market value; |
|
|
(2) unequal appraisal of the owner's property; |
|
|
(3) inclusion of the owner's property on the appraisal |
|
|
records; |
|
|
(4) denial to the property owner in whole or in part of |
|
|
a partial exemption; |
|
|
(4-a) determination that the owner's property does not |
|
|
qualify for the limitation on appraised value provided by Section |
|
|
23.232; |
|
|
(5) determination that the owner's land does not |
|
|
qualify for appraisal as provided by Subchapter C, D, E, or H, |
|
|
Chapter 23; |
|
|
(6) identification of the taxing units in which the |
|
|
owner's property is taxable in the case of the appraisal district's |
|
|
appraisal roll; |
|
|
(7) determination that the property owner is the owner |
|
|
of property; |
|
|
(8) a determination that a change in use of land |
|
|
appraised under Subchapter C, D, E, or H, Chapter 23, has occurred; |
|
|
or |
|
|
(9) any other action of the chief appraiser, appraisal |
|
|
district, or appraisal review board that applies to and adversely |
|
|
affects the property owner. |
|
|
SECTION 9. Section 42.26(d), Tax Code, as effective until |
|
|
January 1, 2027, is amended to read as follows: |
|
|
(d) For purposes of this section, the value of the property |
|
|
subject to the suit and the value of a comparable property or sample |
|
|
property that is used for comparison must be the market value |
|
|
determined by the appraisal district when the property is subject |
|
|
to the limitation on appraised value imposed by Section 23.23, [or] |
|
|
23.231, or 23.232. |
|
|
SECTION 10. Section 42.26(d), Tax Code, as effective |
|
|
January 1, 2027, is amended to read as follows: |
|
|
(d) For purposes of this section, the value of the property |
|
|
subject to the suit and the value of a comparable property or sample |
|
|
property that is used for comparison must be the market value |
|
|
determined by the appraisal district when the property is [a |
|
|
residence homestead] subject to the limitation on appraised value |
|
|
imposed by Section 23.23 or 23.232. |
|
|
SECTION 11. Sections 403.302(d) and (i), Government Code, |
|
|
as effective until January 1, 2027, are amended to read as follows: |
|
|
(d) For the purposes of this section, "taxable value" means |
|
|
the market value of all taxable property less: |
|
|
(1) the total dollar amount of any residence homestead |
|
|
exemptions lawfully granted under Section 11.13(b) or (c), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(2) one-half of the total dollar amount of any |
|
|
residence homestead exemptions granted under Section 11.13(n), Tax |
|
|
Code, in the year that is the subject of the study for each school |
|
|
district; |
|
|
(3) the total dollar amount of any exemptions granted |
|
|
before May 31, 1993, within a reinvestment zone under agreements |
|
|
authorized by Chapter 312, Tax Code; |
|
|
(4) subject to Subsection (e), the total dollar amount |
|
|
of any captured appraised value of property that: |
|
|
(A) is within a reinvestment zone created on or |
|
|
before May 31, 1999, or is proposed to be included within the |
|
|
boundaries of a reinvestment zone as the boundaries of the zone and |
|
|
the proposed portion of tax increment paid into the tax increment |
|
|
fund by a school district are described in a written notification |
|
|
provided by the municipality or the board of directors of the zone |
|
|
to the governing bodies of the other taxing units in the manner |
|
|
provided by former Section 311.003(e), Tax Code, before May 31, |
|
|
1999, and within the boundaries of the zone as those boundaries |
|
|
existed on September 1, 1999, including subsequent improvements to |
|
|
the property regardless of when made; |
|
|
(B) generates taxes paid into a tax increment |
|
|
fund created under Chapter 311, Tax Code, under a reinvestment zone |
|
|
financing plan approved under Section 311.011(d), Tax Code, on or |
|
|
before September 1, 1999; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(5) the total dollar amount of any captured appraised |
|
|
value of property that: |
|
|
(A) is within a reinvestment zone: |
|
|
(i) created on or before December 31, 2008, |
|
|
by a municipality with a population of less than 18,000; and |
|
|
(ii) the project plan for which includes |
|
|
the alteration, remodeling, repair, or reconstruction of a |
|
|
structure that is included on the National Register of Historic |
|
|
Places and requires that a portion of the tax increment of the zone |
|
|
be used for the improvement or construction of related facilities |
|
|
or for affordable housing; |
|
|
(B) generates school district taxes that are paid |
|
|
into a tax increment fund created under Chapter 311, Tax Code; and |
|
|
(C) is eligible for tax increment financing under |
|
|
Chapter 311, Tax Code; |
|
|
(6) the total dollar amount of any exemptions granted |
|
|
under Section 11.251 or 11.253, Tax Code; |
|
|
(7) the difference between the comptroller's estimate |
|
|
of the market value and the productivity value of land that |
|
|
qualifies for appraisal on the basis of its productive capacity, |
|
|
except that the productivity value estimated by the comptroller may |
|
|
not exceed the fair market value of the land; |
|
|
(8) the portion of the appraised value of residence |
|
|
homesteads of individuals who receive a tax limitation under |
|
|
Section 11.26, Tax Code, on which school district taxes are not |
|
|
imposed in the year that is the subject of the study, calculated as |
|
|
if the residence homesteads were appraised at the full value |
|
|
required by law; |
|
|
(9) a portion of the market value of property not |
|
|
otherwise fully taxable by the district at market value because of |
|
|
action required by statute or the constitution of this state, other |
|
|
than Section 11.311, Tax Code, that, if the tax rate adopted by the |
|
|
district is applied to it, produces an amount equal to the |
|
|
difference between the tax that the district would have imposed on |
|
|
the property if the property were fully taxable at market value and |
|
|
the tax that the district is actually authorized to impose on the |
|
|
property, if this subsection does not otherwise require that |
|
|
portion to be deducted; |
|
|
(10) the market value of all tangible personal |
|
|
property, other than manufactured homes, owned by a family or |
|
|
individual and not held or used for the production of income; |
|
|
(11) the appraised value of property the collection of |
|
|
delinquent taxes on which is deferred under Section 33.06, Tax |
|
|
Code; |
|
|
(12) the portion of the appraised value of property |
|
|
the collection of delinquent taxes on which is deferred under |
|
|
Section 33.065, Tax Code; |
|
|
(13) the amount by which the market value of property |
|
|
to which Section 23.23, [or] 23.231, or 23.232, Tax Code, applies |
|
|
exceeds the appraised value of that property as calculated under |
|
|
Section 23.23, [or] 23.231, or 23.232, Tax Code, as applicable; and |
|
|
(14) the total dollar amount of any exemptions granted |
|
|
under Section 11.35, Tax Code. |
|
|
(i) If the comptroller determines in the study that the |
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market value of property in a school district as determined by the |
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appraisal district that appraises property for the school district, |
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less the total of the amounts and values listed in Subsection (d) as |
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determined by that appraisal district, is valid, the comptroller, |
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in determining the taxable value of property in the school district |
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under Subsection (d), shall for purposes of Subsection (d)(13) |
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subtract from the market value as determined by the appraisal |
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district of properties to which Section 23.23, [or] 23.231, or |
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23.232, Tax Code, applies the amount by which that amount exceeds |
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the appraised value of those properties as calculated by the |
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appraisal district under Section 23.23, [or] 23.231, or 23.232, Tax |
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Code, as applicable. If the comptroller determines in the study |
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that the market value of property in a school district as determined |
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|
by the appraisal district that appraises property for the school |
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district, less the total of the amounts and values listed in |
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|
Subsection (d) as determined by that appraisal district, is not |
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|
valid, the comptroller, in determining the taxable value of |
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property in the school district under Subsection (d), shall for |
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purposes of Subsection (d)(13) subtract from the market value as |
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estimated by the comptroller of properties to which Section 23.23, |
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[or] 23.231, or 23.232, Tax Code, applies the amount by which that |
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amount exceeds the appraised value of those properties as |
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|
calculated by the appraisal district under Section 23.23, [or] |
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23.231, or 23.232, Tax Code, as applicable. |
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SECTION 12. Sections 403.302(d) and (i), Government Code, |
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as effective January 1, 2027, are amended to read as follows: |
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(d) For the purposes of this section, "taxable value" means |
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the market value of all taxable property less: |
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(1) the total dollar amount of any residence homestead |
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exemptions lawfully granted under Section 11.13(b) or (c), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(2) one-half of the total dollar amount of any |
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residence homestead exemptions granted under Section 11.13(n), Tax |
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Code, in the year that is the subject of the study for each school |
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district; |
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(3) the total dollar amount of any exemptions granted |
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before May 31, 1993, within a reinvestment zone under agreements |
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|
authorized by Chapter 312, Tax Code; |
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(4) subject to Subsection (e), the total dollar amount |
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of any captured appraised value of property that: |
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(A) is within a reinvestment zone created on or |
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|
before May 31, 1999, or is proposed to be included within the |
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|
boundaries of a reinvestment zone as the boundaries of the zone and |
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the proposed portion of tax increment paid into the tax increment |
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fund by a school district are described in a written notification |
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provided by the municipality or the board of directors of the zone |
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to the governing bodies of the other taxing units in the manner |
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|
provided by former Section 311.003(e), Tax Code, before May 31, |
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1999, and within the boundaries of the zone as those boundaries |
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existed on September 1, 1999, including subsequent improvements to |
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the property regardless of when made; |
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(B) generates taxes paid into a tax increment |
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fund created under Chapter 311, Tax Code, under a reinvestment zone |
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financing plan approved under Section 311.011(d), Tax Code, on or |
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before September 1, 1999; and |
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(C) is eligible for tax increment financing under |
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Chapter 311, Tax Code; |
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(5) the total dollar amount of any captured appraised |
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value of property that: |
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(A) is within a reinvestment zone: |
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(i) created on or before December 31, 2008, |
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|
by a municipality with a population of less than 18,000; and |
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|
(ii) the project plan for which includes |
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the alteration, remodeling, repair, or reconstruction of a |
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structure that is included on the National Register of Historic |
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|
Places and requires that a portion of the tax increment of the zone |
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|
be used for the improvement or construction of related facilities |
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or for affordable housing; |
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(B) generates school district taxes that are paid |
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into a tax increment fund created under Chapter 311, Tax Code; and |
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|
(C) is eligible for tax increment financing under |
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|
Chapter 311, Tax Code; |
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(6) the total dollar amount of any exemptions granted |
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under Section 11.251 or 11.253, Tax Code; |
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|
(7) the difference between the comptroller's estimate |
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of the market value and the productivity value of land that |
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qualifies for appraisal on the basis of its productive capacity, |
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except that the productivity value estimated by the comptroller may |
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not exceed the fair market value of the land; |
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(8) the portion of the appraised value of residence |
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homesteads of individuals who receive a tax limitation under |
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|
Section 11.26, Tax Code, on which school district taxes are not |
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|
imposed in the year that is the subject of the study, calculated as |
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|
if the residence homesteads were appraised at the full value |
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required by law; |
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(9) a portion of the market value of property not |
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otherwise fully taxable by the district at market value because of |
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action required by statute or the constitution of this state, other |
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|
than Section 11.311, Tax Code, that, if the tax rate adopted by the |
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|
district is applied to it, produces an amount equal to the |
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|
difference between the tax that the district would have imposed on |
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|
the property if the property were fully taxable at market value and |
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|
the tax that the district is actually authorized to impose on the |
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property, if this subsection does not otherwise require that |
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portion to be deducted; |
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(10) the market value of all tangible personal |
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|
property, other than manufactured homes, owned by a family or |
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|
individual and not held or used for the production of income; |
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|
(11) the appraised value of property the collection of |
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|
delinquent taxes on which is deferred under Section 33.06, Tax |
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|
Code; |
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|
(12) the portion of the appraised value of property |
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|
the collection of delinquent taxes on which is deferred under |
|
|
Section 33.065, Tax Code; |
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|
(13) the amount by which the market value of property |
|
|
[a residence homestead] to which Section 23.23 or 23.232, Tax Code, |
|
|
applies exceeds the appraised value of that property as calculated |
|
|
under Section 23.23 or 23.232, Tax Code, as applicable [that |
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|
section]; and |
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|
(14) the total dollar amount of any exemptions granted |
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|
under Section 11.35, Tax Code. |
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|
(i) If the comptroller determines in the study that the |
|
|
market value of property in a school district as determined by the |
|
|
appraisal district that appraises property for the school district, |
|
|
less the total of the amounts and values listed in Subsection (d) as |
|
|
determined by that appraisal district, is valid, the comptroller, |
|
|
in determining the taxable value of property in the school district |
|
|
under Subsection (d), shall for purposes of Subsection (d)(13) |
|
|
subtract from the market value as determined by the appraisal |
|
|
district of properties [residence homesteads] to which Section |
|
|
23.23 or 23.232, Tax Code, applies the amount by which that amount |
|
|
exceeds the appraised value of those properties as calculated by |
|
|
the appraisal district under Section 23.23 or 23.232, Tax Code, as |
|
|
applicable. If the comptroller determines in the study that the |
|
|
market value of property in a school district as determined by the |
|
|
appraisal district that appraises property for the school district, |
|
|
less the total of the amounts and values listed in Subsection (d) as |
|
|
determined by that appraisal district, is not valid, the |
|
|
comptroller, in determining the taxable value of property in the |
|
|
school district under Subsection (d), shall for purposes of |
|
|
Subsection (d)(13) subtract from the market value as estimated by |
|
|
the comptroller of properties [residence homesteads] to which |
|
|
Section 23.23 or 23.232, Tax Code, applies the amount by which that |
|
|
amount exceeds the appraised value of those properties as |
|
|
calculated by the appraisal district under Section 23.23 or 23.232, |
|
|
Tax Code, as applicable. |
|
|
SECTION 13. This Act applies only to the appraisal of |
|
|
commercial real property for ad valorem tax purposes for a tax year |
|
|
that begins on or after the effective date of this Act. |
|
|
SECTION 14. This Act takes effect January 1, 2026, but only |
|
|
if the constitutional amendment proposed by the 89th Legislature, |
|
|
Regular Session, 2025, to authorize the legislature to limit the |
|
|
maximum appraised value of certain commercial real property for ad |
|
|
valorem tax purposes is approved by the voters. If that amendment |
|
|
is not approved by the voters, this Act has no effect. |