SB2535 - Relating to the appraisal of property for ad valorem tax purposes, including protests, arbitrations, and appeals regarding appraisals.

  89R16288 CS-F     By: Middleton S.B. No. 2535       A BILL TO BE ENTITLED   AN ACT   relating to the appraisal of property for ad valorem tax purposes,   including protests, arbitrations, and appeals regarding   appraisals.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 23.01(e), Tax Code, is amended to read as   follows:          (e)  Notwithstanding any provision of this subchapter to the   contrary, if the appraised value of property 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 appraisal district   [ chief appraiser ] may not increase the appraised value of the   property unless the increase by the appraisal district [ 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 appraisal district [ 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 appraisal district [ chief appraiser ] to support an   increase in the appraised value of property under the circumstances   described by this subsection.          SECTION 2.  Section 41A.015(k), Tax Code, is amended to read   as follows:          (k)  If the arbitrator determines that the appraisal review   board or chief appraiser failed to comply with the procedural   requirement that was the subject of the limited binding   arbitration:                (1)  the comptroller, on receipt of a copy of the award,   shall refund the property owner's arbitration deposit, less the   amount retained by the comptroller under Section 41A.05(b); and                (2)  the appraisal district shall pay :                       (A)   the arbitrator's fee ; and                       (B)     the property owner's reasonable attorney's   fees and costs in the amounts determined by the arbitrator .          SECTION 3.  Section 42.23, Tax Code, is amended by adding   Subsection (b-1) to read as follows:           (b-1)     The appraisal district has the burden of establishing   the value of the property by clear and convincing evidence if the   appraised value of the property was lowered under this subtitle in   the preceding year in an appeal under Section 42.01(a)(1)(A).          SECTION 4.  This Act takes effect September 1, 2025.