1-1                                   AN ACT
 1-2     relating to the changing of an ad valorem tax appraisal roll.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subsections (c) and (d), Section 25.25, Tax Code,
 1-5     are amended to read as follows:
 1-6           (c)  The [At any time before the end of five years after
 1-7     January 1 of a tax year, the] appraisal review board, on motion of
 1-8     the chief appraiser or of a property owner, may direct by written
 1-9     order changes in the appraisal roll for any of the five preceding
1-10     years to correct:
1-11                 (1)  clerical errors that affect a property owner's
1-12     liability for a tax imposed in that tax year;
1-13                 (2)  multiple appraisals of a property in that tax
1-14     year; or
1-15                 (3)  the inclusion of property that does not exist in
1-16     the form or at the location described in the appraisal roll.
1-17           (d)  At any time prior to the date the taxes become
1-18     delinquent, a property owner or the chief appraiser may file a
1-19     motion with the appraisal review board to change the appraisal roll
1-20     to correct an error that resulted in an incorrect appraised value
1-21     for the owner's property.  However, the error may not be corrected
1-22     unless it resulted in an appraised value that exceeds by more than
1-23     one-third the correct appraised value.  If the appraisal roll is
1-24     changed under this subsection, the property owner must pay to each
1-25     affected taxing unit a late-correction penalty equal to 10 percent
 2-1     of the amount of taxes as calculated on the basis of the corrected
 2-2     appraised value.  The roll may not be changed under this subsection
 2-3     if:
 2-4                 (1)  the property was the subject of a protest brought
 2-5     by the property owner under Chapter 41, a hearing on the protest
 2-6     was conducted in which the property owner offered evidence or
 2-7     argument, and the appraisal review board made a determination of
 2-8     the protest on the merits; or
 2-9                 (2)  [if] the appraised value of the property was
2-10     established as a result of a written agreement between the property
2-11     owner or the owner's [his] agent and the appraisal district.
2-12           SECTION 2.  The changes in law made by this Act to Section
2-13     25.25, Tax Code, apply only to a motion under Section 25.25, Tax
2-14     Code, that is pending before an appraisal review board on the
2-15     effective date of this Act or that is filed with an appraisal
2-16     review board on or after that date.
2-17           SECTION 3.  This Act takes effect immediately if it receives
2-18     a vote of two-thirds of all the members elected to each house, as
2-19     provided by Section 39, Article III, Texas Constitution.  If this
2-20     Act does not receive the vote necessary for immediate effect, this
2-21     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 865 passed the Senate on
         April 11, 2001, by the following vote:  Yeas 29, Nays 0, one
         present, not voting; and that the Senate concurred in House
         amendment on May 15, 2001, by the following vote:  Yeas 29, Nays 0,
         one present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 865 passed the House, with
         amendment, on May 10, 2001, by the following vote:  Yeas 143,
         Nays 0, one present, not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor