SB 2063

relating to ad valorem tax protests and appeals on the ground of the
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 41.43, Tax Code, is amended by adding
Subsection (b-1) to read as follows:
(b-1)  For the purpose of establishing whether a protest
shall be determined in favor of the protesting party under
Subsection (b)(3), the appraisal district may not present and the
appraisal review board may not consider evidence relating to the
market value of the property subject to the protest.
SECTION 2.  Section 42.26, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1)  For the purpose of establishing whether a property
owner is entitled to relief under Subsection (a)(3), the appraisal
district may not present and the court may not consider evidence
relating to the market value of the property subject to the suit.
SECTION 3.  Section 42.26(d), Tax Code, as effective until
January 1, 2027, is amended to read as follows:
(d)  For purposes of this section and subject to Subsection
(a-1), the value of the property subject to the suit and the value
of a comparable property or sample property that is used for
comparison must be the market value determined by the appraisal
district when the property is subject to the limitation on
appraised value imposed by Section 23.23 or 23.231.
SECTION 4.  Section 42.26(d), Tax Code, as effective January
1, 2027, is amended to read as follows:
(d)  For purposes of this section and subject to Subsection
(a-1), the value of the property subject to the suit and the value
of a comparable property or sample property that is used for
comparison must be the market value determined by the appraisal
district when the property is a residence homestead subject to the
limitation on appraised value imposed by Section 23.23.
SECTION 5.  Section 41.43(b-1), Tax Code, as added by this
Act, applies only to a protest under Chapter 41, Tax Code, for which
a notice of protest is filed on or after the effective date of this
Act.  A protest under Chapter 41, Tax Code, for which a notice of
protest was filed before the effective date of this Act is governed
by the law in effect when the notice of protest was filed, and the
former law is continued in effect for that purpose.
SECTION 6.  Section 42.26(a-1), Tax Code, as added by this
Act, applies only to an appeal filed under Chapter 42, Tax Code, on
or after the effective date of this Act.  An appeal filed under
Chapter 42, Tax Code, before the effective date of this Act is
governed by the law in effect when the appeal was filed, and the
former law is continued in effect for that purpose.
SECTION 7.  This Act takes effect January 1, 2026.