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A BILL TO BE ENTITLED
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AN ACT
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relating to the burden of proof in a trial de novo appeal of the |
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appraised value of property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 42.23, Property Tax Code, is amended by |
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adding subsection (i) to read as follows: |
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Sec. 42.23. SCOPE OF REVIEW. (a) Review is by trial de |
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novo. The district court shall try all issues of fact and law |
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raised by the pleadings in the manner applicable to civil suits |
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generally. |
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(b) The court may not admit in evidence the fact of prior |
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action by the appraisal review board or comptroller, except to the |
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extent necessary to establish its jurisdiction. |
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(c) Any party is entitled to trial by jury on demand. |
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(d) Each party to an appeal is considered a party seeking |
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affirmative relief for the purpose of discovery regarding expert |
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witnesses under the Texas Rules of Civil Procedure if, on or before |
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the 120th day after the date the appeal is filed, the property |
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owner: |
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(1) makes a written offer of settlement; |
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(2) requests alternative dispute resolution; and |
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(3) designates, in response to an appropriate written |
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discovery request, which cause of action under this chapter is the |
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basis for the appeal. |
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(e) For purposes of Subsection (d), a property owner may |
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designate a cause of action under Section 42.25 or 42.26 as the |
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basis for an appeal, but may not designate a cause of action under |
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both sections as the basis for the appeal. Discovery regarding a |
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cause of action that is not specifically designated by the property |
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owner under Subsection (d) shall be conducted as provided by the |
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Texas Rules of Civil Procedure. A court may not enter an order, |
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including a protective order under Rule 192.6 of the Texas Rules of |
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Civil Procedure, that conflicts with Subsection (d). |
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(f) For purposes of a no-evidence motion for summary |
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judgment filed by a party to an appeal under this chapter, the offer |
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of evidence, including an affidavit or testimony, by any person, |
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including the appraisal district, the property owner, or the |
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owner's agent, that was presented at the hearing on the protest |
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before the appraisal review board constitutes sufficient evidence |
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to deny the motion. |
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(g) For the sole purpose of admitting expert testimony to |
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determine the value of chemical processing property or utility |
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property in an appeal brought under this chapter and for no other |
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purpose under this title, including the rendition of property under |
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Chapter 22, the property is considered to be personal property. |
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(h) Evidence, argument, or other testimony offered at an |
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appraisal review board hearing by a property owner or agent is not |
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admissible in an appeal under this chapter unless: |
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(1) the evidence, argument, or other testimony is |
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offered to demonstrate that there is sufficient evidence to deny a |
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no-evidence motion for summary judgment filed by a party to the |
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appeal or is necessary for the determination of the merits of a |
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motion for summary judgment filed on another ground; |
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(2) the property owner or agent is designated as a |
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witness for purposes of trial and the testimony offered at the |
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appraisal review board hearing is offered for impeachment purposes; |
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or |
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(3) the evidence is the plaintiff's testimony at the |
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appraisal review board hearing as to the value of the property. |
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(i) In a trial de novo appeal brought under this Chapter |
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involving circumstances described in either Section 23.01(e) or |
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41.43(a-3) the burden of proof is on the chief appraiser and the |
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appraisal district to support an increase in the appraised value of |
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property as provided in sections 23.01(e) or 41.43(a-3), whichever |
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is applicable. |
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SECTION 2. Section 23.01(e), Property Tax Code, is amended |
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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 under Subtitle F, the appraised value of the property as |
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finally determined under that subtitle is considered to be the |
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appraised value of the property for that tax year. In the next tax |
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year in which the property is appraised, the chief appraiser or |
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appraisal review board 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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SECTION 3. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2023. |