Relating to the frequency with which certain appraisal districts are required to reappraise property for ad valorem tax purposes and to a limitation on the authority of an appraisal district to increase the appraised value of property.

89(R) HB 2786 - Engrossed version - Bill Text

By: Turner, Geren

H.B. No. 2786

A BILL TO BE ENTITLED

AN ACT

relating to the frequency with which certain appraisal districts

are required to reappraise property for ad valorem tax purposes and

to a limitation on the authority of an appraisal district to

increase the appraised value of property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 6.05(i), Tax Code, is amended to read as

follows:

(i) To ensure adherence with generally accepted appraisal

practices, the board of directors of an appraisal district shall

develop biennially a written plan for the periodic reappraisal of

all property within the boundaries of the district according to the

requirements of Section 25.18 and shall hold a public hearing to

consider the proposed plan.
The written plan developed by the board

of directors of an appraisal district to which Section 6.0301

applies must provide for the annual reappraisal of all property

within the boundaries of the district.
Not later than the 10th day

before the date of the hearing, the secretary of the board shall

deliver to the presiding officer of the governing body of each

taxing unit participating in the district a written notice of the

date, time, and place for the hearing. Not later than September 15

of each even-numbered year, the board shall complete its hearings,

make any amendments, and by resolution finally approve the plan.

Copies of the approved plan shall be distributed to the presiding

officer of the governing body of each taxing unit participating in

the district and to the comptroller within 60 days of the approval

date.

SECTION 2. 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
or by a written agreement between the

property owner or the owner's agent and the appraisal district

under Section 1.111(e)
, the appraised value of the property as

finally determined under that subtitle
or by the agreement
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.

SECTION 3. Section 25.18, Tax Code, is amended by adding

Subsection (a-1) to read as follows:

(a-1)

The plan implemented by an appraisal office for an

appraisal district to which Section 6.0301 applies shall provide

for the reappraisal of all real and personal property by the chief

appraiser each year. The chief appraiser shall use the most recent

information obtained through the reappraisal activities described

by Subsection (b) when performing a reappraisal.

SECTION 4. Section 23.01(e), Tax Code, as amended by this

Act, applies only to the appraisal of property for a tax year that

begins on or after the effective date of this Act.

SECTION 5. This Act takes effect January 1, 2026.