SB 2535

relating to the appraisal of property for ad valorem tax purposes,
including protests, arbitrations, and appeals regarding
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 23.01(e), Tax Code, is amended to read as
(e)  Notwithstanding any provision of this subchapter to the
contrary, if the appraised value of property in a tax year is
lowered under Subtitle F, the appraised value of the property as
finally determined under that subtitle is considered to be the
appraised value of the property for that tax year.  In the next tax
year in which the property is appraised, the appraisal district
[chief appraiser] may not increase the appraised value of the
property unless the increase by the appraisal district [chief
appraiser] is reasonably supported by clear and convincing evidence
when all of the reliable and probative evidence in the record is
considered as a whole.  If the appraised value is finally determined
in a protest under Section 41.41(a)(2) or an appeal under Section
42.26, the appraisal district [chief appraiser] may satisfy the
requirement to reasonably support by clear and convincing evidence
an increase in the appraised value of the property in the next tax
year in which the property is appraised by presenting evidence
showing that the inequality in the appraisal of property has been
corrected with regard to the properties that were considered in
determining the value of the subject property.  The burden of proof
is on the appraisal district [chief appraiser] to support an
increase in the appraised value of property under the circumstances
SECTION 2.  Section 41A.015(k), Tax Code, is amended to read
(k)  If the arbitrator determines that the appraisal review
board or chief appraiser failed to comply with the procedural
requirement that was the subject of the limited binding
(1)  the comptroller, on receipt of a copy of the award,
shall refund the property owner's arbitration deposit, less the
amount retained by the comptroller under Section 41A.05(b); and
(2)  the appraisal district shall pay:
(B)  the property owner's reasonable attorney's
fees and costs in the amounts determined by the arbitrator.
SECTION 3.  Section 42.23, Tax Code, is amended by adding
Subsection (b-1) to read as follows:
(b-1)  The appraisal district has the burden of establishing
the value of the property by clear and convincing evidence if the
appraised value of the property was lowered under this subtitle in
the preceding year in an appeal under Section 42.01(a)(1)(A).
SECTION 4.  This Act takes effect September 1, 2025.