Bill Summary – FastDemocracy

   
      88(3) SB 42 - Introduced version - Bill Text
      
            88S30057 TJB-F
         
		By:  Hinojosa
            S.B.  No.  42
         
               A BILL TO BE ENTITLED
            
               AN ACT
            
            relating to the calculation of certain ad valorem tax rates of a 
         
            taxing unit for a year in which a property owner provides notice 
         
            that the owner intends to appeal an order of an appraisal review 
         
            board determining a protest by the owner regarding the appraisal of 
         
            the owner's property.
         
                          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         
                          SECTION  1.    (a) Section 26.012, Tax Code, is amended by 
         
            adding Subdivisions (1-a), (1-b), (1-c), (2-a), and (20) to read as 
         
            follows:
         
                                      (1-a)    "Affected taxing unit" means a taxing unit:
         
                                                  (A)    that is wholly or partly located in a county 
         
            that:
         
                                                              (i)    has a population of less than 500,000; 
         
            and
         
                                                              (ii)    is located on the Gulf of Mexico; and
         
                                                  (B)    in which one or more parcels of property are 
         
            located that are included as part of anticipated substantial 
         
            litigation.
         
                                      (1-b)    "Anticipated substantial litigation" means one 
         
            or more appeals filed or intended to be filed under Chapter 42 for a 
         
            tax year by a single property owner or by one or more associated 
         
            business entities of a single property owner of one or more orders 
         
            of an appraisal review board determining one or more protests by the 
         
            owner or entities of the taxable value of one or more parcels of 
         
            property located in an affected taxing unit that have an aggregate 
         
            contested taxable value of more than $1 billion.
         
                                      (1-c)    "Associated business entity" means a subsidiary 
         
            or other associated business entity of a property owner.
         
                                      (2-a)    "Contested taxable value" means the portion of 
         
            the taxable value of property that is in dispute.
         
                                      (20)    "Uncontested taxable value" means the portion of 
         
            the taxable value of property that is not in dispute.
         
                          (b)    Sections 26.012(1-a), (1-b), (1-c), (2-a), and (20), 
         
            Tax Code, as added by this Act, expire December 31, 2025.
         
                          SECTION  2.    Section 26.012(6), Tax Code, as effective 
         
            January 1, 2024, is amended to read as follows:
         
                                      (6)    "Current total value" means the total taxable 
         
            value of property listed on the appraisal roll for the current year, 
         
            including all appraisal roll supplements and corrections as of the 
         
            date of the calculation, less the taxable value of property 
         
            exempted for the current tax year for the first time under Section 
         
            11.31 or 11.315, except that:
         
                                                  (A)    the current total value for a school district 
         
            excludes:
         
                                                              (i)    the total value of homesteads that 
         
            qualify for a tax limitation as provided by Section 11.26;
         
                                                              (ii)    new property value of property that is 
         
            subject to an agreement entered into under former Subchapter B or C, 
         
            Chapter 313; and
         
                                                              (iii)    new property value of property that 
         
            is subject to an agreement entered into under Subchapter T, Chapter 
         
            403, Government Code; [and]
         
                                                  (B)    the current total value for a county, 
         
            municipality, or junior college district excludes the total value 
         
            of homesteads that qualify for a tax limitation provided by Section 
         
            11.261; and
         
                                                  (C)    the current total value of an affected taxing 
         
            unit excludes the portion of the aggregate taxable value of all of 
         
            the property located in the taxing unit that is included as part of 
         
            anticipated substantial litigation that consists of contested 
         
            taxable value.
         
                          SECTION  3.    Effective January 1, 2026, Section 26.012(6), 
         
            Tax Code, as effective January 1, 2024, is amended to read as 
         
            follows:
         
            Statutes affected: 
Introduced: Tax Code 26.012, Tax Code 26.17, Government Code 403.302, Government Code 26.012 (Tax Code 26, Government Code 26, Government Code 403)



	A BILL TO BE ENTITLED
	AN ACT
	relating to the calculation of certain ad valorem tax rates of a
	taxing unit for a year in which a property owner provides notice
	that the owner intends to appeal an order of an appraisal review
	board determining a protest by the owner regarding the appraisal of
	the owner's property.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. (a) Section 26.012, Tax Code, is amended by
	adding Subdivisions (1-a), (1-b), (1-c), (2-a), and (20) to read as
	follows:
	(1-a) "Affected taxing unit" means a taxing unit:
	(A) that is wholly or partly located in a county
	that:
	(i) has a population of less than 500,000;
	and
	(ii) is located on the Gulf of Mexico; and
	(B) in which one or more parcels of property are
	located that are included as part of anticipated substantial
	litigation.
	(1-b) "Anticipated substantial litigation" means one
	or more appeals filed or intended to be filed under Chapter 42 for a
	tax year by a single property owner or by one or more associated
	business entities of a single property owner of one or more orders
	of an appraisal review board determining one or more protests by the
	owner or entities of the taxable value of one or more parcels of
	property located in an affected taxing unit that have an aggregate
	contested taxable value of more than $1 billion.
	(1-c) "Associated business entity" means a subsidiary
	or other associated business entity of a property owner.
	(2-a) "Contested taxable value" means the portion of
	the taxable value of property that is in dispute.
	(20) "Uncontested taxable value" means the portion of
	the taxable value of property that is not in dispute.
	(b) Sections 26.012(1-a), (1-b), (1-c), (2-a), and (20),
	Tax Code, as added by this Act, expire December 31, 2025.
	SECTION 2. Section 26.012(6), Tax Code, as effective
	January 1, 2024, is amended to read as follows:
	(6) "Current total value" means the total taxable
	value of property listed on the appraisal roll for the current year,
	including all appraisal roll supplements and corrections as of the
	date of the calculation, less the taxable value of property
	exempted for the current tax year for the first time under Section
	11.31 or 11.315, except that:
	(A) the current total value for a school district
	excludes:
	(i) the total value of homesteads that
	qualify for a tax limitation as provided by Section 11.26;
	(ii) new property value of property that is
	subject to an agreement entered into under former Subchapter B or C,
	Chapter 313; and
	(iii) new property value of property that
	is subject to an agreement entered into under Subchapter T, Chapter
	403, Government Code; [~~and~~]
	(B) the current total value for a county,
	municipality, or junior college district excludes the total value
	of homesteads that qualify for a tax limitation provided by Section
	11.261; and
	(C) the current total value of an affected taxing
	unit excludes the portion of the aggregate taxable value of all of
	the property located in the taxing unit that is included as part of
	anticipated substantial litigation that consists of contested
	taxable value.
	SECTION 3. Effective January 1, 2026, Section 26.012(6),
	Tax Code, as effective January 1, 2024, is amended to read as
	follows:
	Statutes affected: Introduced: Tax Code 26.012, Tax Code 26.17, Government Code 403.302, Government Code 26.012 (Tax Code 26, Government Code 26, Government Code 403)