87R6009 TJB-D
 
  By: Cook H.B. No. 2489
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a restriction on the authority of an appraisal district
  to increase the appraised value of a residence homestead for ad
  valorem tax purposes for a specified period after a tax year in
  which the appraised value of the property is lowered as a result of
  an agreement, protest, or appeal.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 23.01, Tax Code, is amended by amending
  Subsection (e) and adding Subsections (e-1) and (e-2) to read as
  follows:
         (e)  Notwithstanding any provision of this subchapter to the
  contrary, if the appraised value of property other than a residence
  homestead in a tax year is lowered under Subtitle F, the appraised
  value of the property as finally determined under that subtitle is
  considered to be the appraised value of the property for that tax
  year.  In the next tax year in which the property is appraised, the
  chief appraiser may not increase the appraised value of the
  property unless the increase by the chief appraiser is reasonably
  supported by clear and convincing evidence when all of the reliable
  and probative evidence in the record is considered as a whole.  If
  the appraised value is finally determined in a protest under
  Section 41.41(a)(2) or an appeal under Section 42.26, the chief
  appraiser may satisfy the requirement to reasonably support by
  clear and convincing evidence an increase in the appraised value of
  the property in the next tax year in which the property is appraised
  by presenting evidence showing that the inequality in the appraisal
  of property has been corrected with regard to the properties that
  were considered in determining the value of the subject property.
  The burden of proof is on the chief appraiser to support an increase
  in the appraised value of property under the circumstances
  described by this subsection.
         (e-1)  Notwithstanding any provision of this subchapter or
  Section 23.23 to the contrary, if the appraised value of a residence
  homestead in a tax year is lowered as a result of an agreement
  between the property owner and the appraisal district or as a result
  of a protest or appeal under Subtitle F, the appraised value of the
  property as specified in the agreement or as finally determined
  under that subtitle is considered to be the appraised value of the
  property for that tax year.  If the appraised value of a residence
  homestead in a tax year is lowered under the circumstances
  described by this subsection, the chief appraiser may not increase
  the appraised value of the property in any of the three tax years
  following the tax year in which the appraised value is lowered to an
  amount that exceeds the lesser of:
               (1)  the market value of the property for the tax year;
  or
               (2)  the sum of:
                     (A)  the appraised value of the property for the
  tax year in which the value is lowered; and 
                     (B)  the market value of each new improvement made
  to the property in any of those three tax years, as determined for
  the tax year in which the improvement is made.
         (e-2)  The limitation on an increase in the appraised value
  of a residence homestead prescribed by Subsection (e-1) of this
  section expires if the limitation on appraised value under Section
  23.23 applicable to the property when the limitation prescribed by
  Subsection (e-1) took effect expires.
         SECTION 2.  The changes in law made by this Act apply only to
  the appraisal of property for a tax year that begins on or after the
  effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2022.