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A BILL TO BE ENTITLED
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AN ACT
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relating to the frequency with which an appraisal district is |
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required to reappraise property for ad valorem tax purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 6.05(i), Tax Code, is amended to read as |
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follows: |
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(i) To ensure adherence with generally accepted appraisal |
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practices, the board of directors of an appraisal district shall |
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develop biennially a written plan for the annual [periodic] |
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reappraisal of all property within the boundaries of the district |
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according to the requirements of Section 25.18 and shall hold a |
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public hearing to consider the proposed plan. Not later than the |
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10th day before the date of the hearing, the secretary of the board |
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shall deliver to the presiding officer of the governing body of each |
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taxing unit participating in the district a written notice of the |
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date, time, and place for the hearing. Not later than September 15 |
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of each even-numbered year, the board shall complete its hearings, |
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make any amendments, and by resolution finally approve the plan. |
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Copies of the approved plan shall be distributed to the presiding |
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officer of the governing body of each taxing unit participating in |
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the district and to the comptroller within 60 days of the approval |
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date. |
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SECTION 2. Section 11.35(k), Tax Code, is amended to read as |
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follows: |
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(k) The exemption authorized by this section expires as to |
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an item of qualified property on January 1 of the [first] tax year |
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following the tax year in which the person who owns the property |
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qualifies for the exemption authorized by this section [in which |
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the property is reappraised under Section 25.18]. |
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SECTION 3. Section 23.23(a), Tax Code, is amended to read as |
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follows: |
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(a) An [Notwithstanding the requirements of Section 25.18 |
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and regardless of whether the appraisal office has appraised the |
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property and determined the market value of the property for the tax |
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year, an] appraisal office may increase the appraised value of a |
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residence homestead for a tax year to an amount not to exceed the |
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lesser of: |
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(1) the market value of the property [for the most |
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recent tax year that the market value was determined by the |
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appraisal office]; or |
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(2) the sum of: |
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(A) 10 percent of the appraised value of the |
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property for the preceding tax year; |
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(B) the appraised value of the property for the |
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preceding tax year; and |
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(C) the market value of all new improvements to |
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the property. |
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SECTION 4. Section 23.231(d), Tax Code, is amended to read |
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as follows: |
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(d) An [Notwithstanding the requirements of Section 25.18 |
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and regardless of whether the appraisal office has appraised the |
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property and determined the market value of the property for the tax |
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year, an] appraisal office may increase the appraised value of real |
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property to which this section applies for a tax year to an amount |
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not to exceed the lesser of: |
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(1) the market value of the property [for the most |
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recent tax year that the market value was determined by the |
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appraisal office]; or |
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(2) the sum of: |
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(A) 20 percent of the appraised value of the |
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property for the preceding tax year; |
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(B) the appraised value of the property for the |
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preceding tax year; and |
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(C) the market value of all new improvements to |
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the property. |
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SECTION 5. The heading to Section 25.18, Tax Code, is |
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amended to read as follows: |
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Sec. 25.18. ANNUAL [PERIODIC] REAPPRAISALS. |
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SECTION 6. Section 25.18, Tax Code, is amended by amending |
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Subsection (a) and adding Subsection (a-1) to read as follows: |
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(a) Each appraisal office shall implement the plan for the |
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annual [periodic] reappraisal of property approved by the board of |
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directors under Section 6.05(i). |
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(a-1) The plan shall provide for the reappraisal of all real |
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and personal property by the chief appraiser each year. The chief |
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appraiser shall use the most recent information obtained through |
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the reappraisal activities described by Subsection (b) when |
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performing a reappraisal. |
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SECTION 7. Sections 11.35(k), 23.23(a), and 23.231(d), Tax |
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Code, as amended by this Act, apply only to an ad valorem tax year |
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that begins on or after the effective date of this Act. |
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SECTION 8. This Act takes effect January 1, 2026. |