The bill, S.B. No. 2535, amends various sections of the Texas Tax Code to enhance the appraisal process for property tax purposes, particularly focusing on the procedures for protests, arbitrations, and appeals. Notably, it modifies Section 23.01(e) to stipulate that if a property's appraised value is lowered in a tax year, the appraisal district cannot increase that value in the following year without clear and convincing evidence. This evidence must demonstrate that any inequality in property appraisals has been corrected. Additionally, the burden of proof for any increase in appraised value now rests with the appraisal district rather than the chief appraiser.

Further amendments include changes to Section 41A.015(k), which now requires the appraisal district to cover the arbitrator's fees and the property owner's reasonable attorney's fees if the arbitrator finds procedural noncompliance by the appraisal review board or chief appraiser. The bill also introduces a new subsection (b-1) to Section 42.23, placing the burden on the appraisal district to establish property value by clear and convincing evidence if the appraised value was lowered in the previous year. The provisions of this act are set to take effect on September 1, 2025.

Statutes affected:
Introduced: Tax Code 23.01, Tax Code 42.23 (Tax Code 23, Tax Code 42)