The bill amends various sections of the Texas Tax Code to enhance the appraisal process for ad valorem tax purposes, particularly focusing on the procedures for protests, arbitrations, and appeals. Notably, it specifies 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 previous inequalities in property appraisals have been corrected. Additionally, the burden of proof for increasing the appraised value lies with the appraisal district.

Furthermore, the bill introduces provisions for arbitration outcomes, mandating that if an arbitrator finds procedural non-compliance by the appraisal review board or chief appraiser, the property owner's arbitration deposit must be refunded, and the appraisal district is responsible for covering the arbitrator's fees and the property owner's reasonable attorney's fees. It also establishes that the appraisal district must provide clear and convincing evidence to support the property's value if it was previously lowered in an appeal. The bill is set to take effect on September 1, 2025.

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