85R893 LHC-D
 
  By: Larson H.B. No. 301
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of an appraisal district to increase the
  appraised value of property for ad valorem tax purposes in the tax
  year following a year in which the appraised value of the property
  is lowered as a result of an agreement, protest, or appeal.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 23.01, Tax Code, is amended by amending
  Subsection (e) and adding Subsection (e-1) 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 as a result of an agreement between the property owner and
  the appraisal district or as a result of a protest or appeal under
  Subtitle F, the appraised value of the property as specified in the
  agreement or as finally determined under that subtitle is
  considered to be the appraised value of the property for that tax
  year.  In the following tax year, the chief appraiser may not
  increase the appraised value of the property unless the increase by
  the chief appraiser is reasonably supported by substantial 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 substantial evidence an increase in the
  appraised value of the property in the following tax year 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.
         (e-1)  Notwithstanding Subsection (e) of this section and
  Section 23.23, if the appraised value of property in a tax year is
  lowered under the circumstances described by Subsection (e), the
  chief appraiser may not increase the appraised value of the
  property in the following tax year by an amount that exceeds the sum
  of five percent of the appraised value of the property in the tax
  year in which the appraised value of the property is lowered and the
  market value of all new improvements to the property.  This
  subsection does not apply to an increase in the appraised value of
  property as a result of:
               (1)  the property no longer being eligible for
  appraisal under Subchapter C, D, E, F, G, or H; or
               (2)  the expiration of a limitation on appraised value
  under Section 23.23(a) applicable to the property.
         SECTION 2.  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 3.  This Act takes effect January 1, 2018, but only
  if the constitutional amendment proposed by the 85th Legislature,
  Regular Session, 2017, to authorize the legislature to limit the
  maximum appraised value of property for ad valorem tax purposes in a
  tax year if in the preceding tax year the owner of the property
  disputed the appraisal of the property and the appraised value was
  lowered as a result is approved by the voters. If that amendment is
  not approved by the voters, this Act has no effect.