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A BILL TO BE ENTITLED
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AN ACT
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relating to a restriction on the authority of an appraisal district |
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to increase the appraised value of a residence homestead for ad |
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valorem tax purposes for a specified period after a tax year in |
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which the appraised value of the property is lowered as a result of |
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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 Subsections (e-1) and (e-2) to read as |
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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 other than a residence |
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homestead in a tax year is lowered under Subtitle F, the appraised |
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value of the property 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 next tax year in which the property is appraised, the |
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chief appraiser may not increase the appraised value of the |
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property unless the increase by the chief appraiser is reasonably |
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supported by clear and convincing evidence when all of the reliable |
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and probative evidence in the record is considered as a whole. If |
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the appraised value is finally determined in a protest under |
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Section 41.41(a)(2) or an appeal under Section 42.26, the chief |
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appraiser may satisfy the requirement to reasonably support by |
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clear and convincing evidence an increase in the appraised value of |
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the property in the next tax year in which the property is appraised |
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by presenting evidence showing that the inequality in the appraisal |
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of property has been corrected with regard to the properties that |
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were considered in determining the value of the subject property. |
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The burden of proof is on the chief appraiser to support an increase |
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in the appraised value of property under the circumstances |
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described by this subsection. |
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(e-1) Notwithstanding any provision of this subchapter or |
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Section 23.23 to the contrary, if the appraised value of a residence |
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homestead in a tax year is lowered as a result of an agreement |
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between the property owner and the appraisal district or as a result |
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of a protest or appeal under Subtitle F, the appraised value of the |
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property as specified in the agreement or as finally determined |
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under that subtitle is considered to be the appraised value of the |
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property for that tax year. If the appraised value of a residence |
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homestead in a tax year is lowered under the circumstances |
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described by this subsection, the chief appraiser may not increase |
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the appraised value of the property in any of the three tax years |
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following the tax year in which the appraised value is lowered to an |
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amount that exceeds the lesser of: |
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(1) the market value of the property for the tax year; |
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or |
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(2) the sum of: |
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(A) the appraised value of the property for the |
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tax year in which the value is lowered; and |
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(B) the market value of each new improvement made |
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to the property in any of those three tax years, as determined for |
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the tax year in which the improvement is made. |
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(e-2) The limitation on an increase in the appraised value |
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of a residence homestead prescribed by Subsection (e-1) of this |
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section expires if the limitation on appraised value under Section |
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23.23 applicable to the property when the limitation prescribed by |
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Subsection (e-1) took effect expires. |
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SECTION 2. The changes in law made by this Act apply only to |
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the appraisal of property for a tax year that begins on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2022. |