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A BILL TO BE ENTITLED
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AN ACT
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relating to the appraisal of property for ad valorem tax purposes, |
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including protests, arbitrations, and appeals regarding |
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appraisals. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.01(e), Tax Code, is amended 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 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 appraisal district |
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[chief appraiser] may not increase the appraised value of the |
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property unless the increase by the appraisal district [chief |
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appraiser] is reasonably supported by clear and convincing 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 appraisal district [chief appraiser] may satisfy the |
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requirement to reasonably support by clear and convincing evidence |
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an increase in the appraised value of the property in the next tax |
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year in which the property is appraised by presenting evidence |
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showing that the inequality in the appraisal of property has been |
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corrected with regard to the properties that were considered in |
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determining the value of the subject property. The burden of proof |
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is on the appraisal district [chief appraiser] to support an |
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increase in the appraised value of property under the circumstances |
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described by this subsection. |
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SECTION 2. Section 41A.015(k), Tax Code, is amended to read |
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as follows: |
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(k) If the arbitrator determines that the appraisal review |
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board or chief appraiser failed to comply with the procedural |
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requirement that was the subject of the limited binding |
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arbitration: |
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(1) the comptroller, on receipt of a copy of the award, |
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shall refund the property owner's arbitration deposit, less the |
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amount retained by the comptroller under Section 41A.05(b); and |
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(2) the appraisal district shall pay: |
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(A) the arbitrator's fee; and |
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(B) the property owner's reasonable attorney's |
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fees and costs in the amounts determined by the arbitrator. |
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SECTION 3. Section 42.23, Tax Code, is amended by adding |
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Subsection (b-1) to read as follows: |
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(b-1) The appraisal district has the burden of establishing |
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the value of the property by clear and convincing evidence if the |
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appraised value of the property was lowered under this subtitle in |
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the preceding year in an appeal under Section 42.01(a)(1)(A). |
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SECTION 4. This Act takes effect September 1, 2025. |