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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 tax |
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year following a year in which the appraised value of the property |
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is lowered as a result of an 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 following tax year, the chief appraiser may not |
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increase the appraised value of the property unless the increase by |
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the chief appraiser is reasonably supported by substantial evidence |
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when all of the reliable and probative evidence in the record is |
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considered as a whole. If the appraised value is finally determined |
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in a protest under Section 41.41(a)(2) or an appeal under Section |
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42.26, the chief appraiser may satisfy the requirement to |
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reasonably support by substantial evidence an increase in the |
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appraised value of the property in the following tax year by |
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presenting evidence showing that the inequality in the appraisal of |
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property has been corrected with regard to the properties that were |
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considered in determining the value of the subject property. The |
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burden of proof is on the chief appraiser to support an increase in |
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the appraised value of property under the circumstances described |
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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 following tax year by an amount that exceeds the sum |
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of five percent of the appraised value of the property in the tax |
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year in which the appraised value of the property is lowered and the |
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market value of all new improvements to the property. This |
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subsection does not apply to an increase in the appraised value of |
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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, 2018, but only |
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if the constitutional amendment proposed by the 85th Legislature, |
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Regular Session, 2017, to authorize the legislature to limit the |
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maximum appraised value of property for ad valorem tax purposes in a |
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tax year if in the preceding tax year the owner of the property |
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disputed the appraisal of the property and the appraised value was |
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lowered as a result is approved by the voters. If that amendment is |
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not approved by the voters, this Act has no effect. |