S.B. No. 1051 amends the Texas Tax Code to modify the calculation of ad valorem tax rates for taxing units in cases where property owners intend to appeal appraisal review board decisions. The bill introduces new definitions, such as "anticipated substantial litigation," which refers to appeals filed by property owners or associated business entities regarding the taxable value of properties that were among the highest in the appraisal district in the previous year. It also establishes the concept of "contested taxable value" and "uncontested taxable value," which will be used in determining tax rates.

The bill requires that tax rate calculation forms be submitted electronically and include specific documentation related to anticipated substantial litigation. It mandates that property owners involved in such litigation provide information about uncontested taxable values and their intent to pay taxes on those values. Additionally, the bill outlines the responsibilities of appraisal district chief appraisers and designated officers in notifying property owners and submitting required information. The changes will take effect for ad valorem tax years beginning on or after January 1, 2026, unless the bill receives immediate effect approval, in which case it would apply to tax years starting January 1, 2025.

Statutes affected:
Introduced: Tax Code 5.07, Tax Code 26.012, Tax Code 41.48, Tax Code 26.17 (Tax Code 26, Tax Code 5, Tax Code 41)