The bill, H.B. No. 291, amends the Texas Tax Code to establish new requirements for the appraisal of real property for ad valorem tax purposes. It introduces a new Subchapter D, which mandates that purchasers or grantees of real property must file a sales price disclosure report with the chief appraiser of the relevant appraisal district within ten days of the deed's recording. This requirement includes specific exemptions for certain types of property transfers, such as those made under court orders or between family members. The bill also outlines the necessary content of the sales price disclosure report and stipulates that the chief appraiser cannot use this information as the sole basis for increasing the property's market value.

Additionally, the bill modifies existing provisions regarding the appraisal process and the responsibilities of appraisal districts. It clarifies that the chief appraiser may use information from the sales price disclosure report in determining market value but cannot solely rely on it for value increases. The bill also introduces new provisions for the filing and acknowledgment of these reports, as well as protections for those who prepare the reports from liability for unintentional errors. The changes will take effect on September 1, 2025, with specific provisions related to the sales price disclosure report applying to transactions occurring on or after January 1, 2026.

Statutes affected:
Introduced: Tax Code 23.013, Tax Code 41.43, Penal Code 37.10 (Penal Code 37, Tax Code 41, Tax Code 23)