Glenn Hegar

Texas Comptroller of Public Accounts

Texas Property
Tax Law
Changes
as of
December 2021
Texas Property Tax

Property Tax Bills:

87th Texas Legislature
This publication includes highlights of legislation relating to property tax
The following acronyms are used in this
passed during the 87th Regular Session and subsequent Called Sessions. Bills
document:
passed during Called Sessions are noted while bills passed during the regular
session have no such notation. The highlights are general summaries and do not 2nd CS Second Called Session
reflect the exact or complete text of the legislation highlighted. Not all legisla- 3rd CS Third Called Session
tion impacting property tax is addressed. Please be advised that this informa-
HB House Bill
tion is being provided solely as an informational resource. The information
provided is not intended for use in lieu of, or as a substitute for, the legislation HJR House Joint Resolution
referenced herein and should not be relied upon as such. Additionally, the infor- SB Senate Bill
mation provided neither constitutes nor serves as a substitute for legal advice.
SJR Senate Joint Resolution
Questions regarding the meaning or interpretation of any information included
or referenced in this publication should, as appropriate or necessary, be di- TDLR Texas Department of Licensing and

rected to an attorney or other appropriate counsel. Regulation

TEA Texas Education Agency

The Legislature enacted HB 3530 which made nonsubstantive revisions of cer-
tain local laws concerning water and wastewater special districts. The Legisla- The Property Tax Assistance Division at the
ture also enacted laws impacting specific special districts that impose a property Texas Comptroller of Public Accounts pro-
tax; these bills and HB 3530 are not included in this publication. vides property tax information and resources

Governor Greg Abbott vetoed HB 1544 which would have provided that the eli- for taxpayers, local taxing entities, assessor-

gibility of land for special open space appraisal does not end because the land collectors, appraisal districts, and appraisal

ceases to be devoted principally to agricultural use if the landowner intends review boards.

to resume the agricultural use of the land, the land is used for a sand mining
For more information, visit our website
operation, and the land is reclaimed according to the standard best practices.
comptroller.texas.gov/taxinfo/proptax
or call us toll-free at 1-800-252-9121 (press 2
to access the menu, then press 1 to contact
the Information Services Team). In Austin,
call (512) 305-9999.

Sign up to receive email updates on the

Comptroller topics of your choice at
comptroller.texas.gov/subscribe.

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — i
ii — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
Texas Property Tax

Table of Contents
Tax Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 5. State Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 6. Local Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 11. Taxable Property and Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Chapter 21. Taxable Situs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Chapter 23. Appraisal Methods and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . 6
Chapter 25. Local Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Chapter 26. Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Chapter 31. Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Chapter 33. Delinquency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Chapter 41. Local Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Chapter 41A. Appeal Through Binding Arbitration . . . . . . . . . . . . . . . . . . . . . . . 19
Chapter 42. Judicial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Chapter 312. Property Redevelopment and Tax Abatement Act . . . . . . . . . . . . . . . . . 22
Civil Practice and Remedies Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Education Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Election Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Government Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Local Government Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Occupations Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Property Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Special District Local Laws Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Transportation Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Water Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Session Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Texas Constitution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — iii
iv — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
Tax Code Chapter 6. Local Administration
Section 6.03
Chapter 5. State Administration HB 988 adds subsection (k-1) to require the governing body
Section 5.03 of a taxing unit entitled to cast at least five percent of the total
SB 63 and HB 3786 add subsection (d) allowing the Comp- votes to determine its vote for its appraisal district’s board
troller, after giving notice, to send and require submission of directors by resolution adopted at the first or second open
of documents, payments, notices, reports or other items elec- meeting held after the date the chief appraiser delivers the
tronically. The Comptroller may adopt rules to administer ballot in counties with a population of 120,000 or more. The
electronic submission and delivery, including rules specify- governing body must submit its vote to the chief appraiser
ing format. not later than the third day following the date the resolution
is adopted.
Effective Sept. 1, 2021.
Effective Jan. 1, 2022, and applies only to the selection of
Section 5.041 board of directors members to terms beginning on or after
SB 63 and HB 3788 amend subsections (b) and (e-1) to allow Jan. 1, 2022.
distance training and education for an appraisal review board
training course. The bills add subsection (i) to authorize the Section 6.035
Comptroller to adopt rules implementing distance training SB 63 amends subsection (a-1) to provide that an individual is
and education, including establishing criteria for course ineligible to serve on an appraisal district’s board of directors
availability and for demonstrating course completion. if the individual served as a member of the board of direc-
tors for all or part of five terms, unless the individual was the
Effective Sept. 1, 2021 (SB 63). Effective Jan. 1, 2022 (HB county assessor-collector at the time the individual served as
3788). a board member or the appraisal district is established in a
county with a population of less than 120,000.
Section 5.103
HB 988 amends subsection (d) to require an appraisal review The bill further modifies eligibility criteria for individuals
board to incorporate model hearing procedures prepared by who serve on the board of directors. Individuals who, in the
the Comptroller when adopting hearing procedures. An ap- preceding three years, appraised property or represented
praisal review board may adopt procedures that supplement property owners for compensation during property tax pro-
the model hearing procedures, provided they do not contra- ceedings in the appraisal district, or who were employed by
dict or circumvent the model hearing procedures. the appraisal district, are ineligible to serve.

The bill adds subsection (e) to require the Comptroller to re- Effective Sept. 1, 2021. Service as an appointed member of
view the hearing procedures adopted by each appraisal re- the board of directors before Jan. 1, 2022 does not count
view board. toward the five-term limit. Eligibility restrictions only apply
to the appointment of board of director members to a term
Effective June 15, 2021. after the effective date of the act.

Section 5.104 Section 6.052

HB 988 amends subsection (l) to require the Comptroller to HB 988 amends subsection (a) to require the taxpayer liaison
include a summary of comments, complaints, and sugges- officer receive and include complaints filed by the chief ap-
tions forwarded by taxpayer liaison officers, results of the praiser, a property owner, or a property owner’s agent con-
Comptroller’s review of appraisal review board hearing pro- cerning certain matters in the list of comments and sugges-
cedures, and results of requests for limited binding arbitra- tions forwarded to the Comptroller. The bill codifies the cur-
tion in the appraisal review board survey report. rent practice of the taxpayer liaison officer forwarding this
list to the Comptroller not later than December 31 of each
Effective June 15, 2021.
year. The bill makes conforming changes to subsection (b)

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 1
and (c) to include complaints. The bill adds subsection (g) Section 6.41
to provide a taxpayer liaison officer does not commit an of- HB 2941 amends subsections (d), (d-1), (d-2), (d-3), and (e) to
fense under this chapter if the officer communicates with the provide that appraisal review board members in all counties
chief appraiser or another employee or agent of the appraisal are appointed by the local administrative law judge. The bill
district, a member of the appraisal review board, a member of amends subsection (f) to authorize the local administrative
the board of directors, a property tax consultant, a property district judge or the judge’s designee remove a member of the
owner, an agent of a property owner, or another person if the board, rather than removal by a majority vote of the appraisal
communication is made in good faith exercise of the officer’s district board of directors. The bill amends subsection (g)
statutory duties. specifying that appraisal review board members of a consoli-
dated board are appointed jointly by the local administrative
Effective June 15, 2021.
district judges in the counties of the appraisal districts party
HB 2941 makes conforming changes to subsection (f) by re- to the contract. The bill strikes subsections (i) and (j) making
moving the reference to Tax Code Section 6.41(d-1) (county certain ex parte communication restrictions applicable to all
with a population of 120,000 or more) but continuing to re- appraisal districts, instead of only those with a population of
quire the taxpayer liaison officer to provide clerical assistance 120,000 or more.
to the local administrative district judge in the selection of
Effective June 7, 2021. The changes in law to Tax Code Sec-
appraisal review board members. Tax Code Section 6.41(d-5)
tion 6.41, as amended by this bill apply only to the appoint-
continues to require the appraisal district to provide whatever
ment of appraisal review board members to terms beginning
reasonable assistance is requested by the local administrative
on or after Jan. 1, 2022, and does not affect the term of an
district judge.
appraisal review board member serving on Dec. 31, 2021,
Effective June 7, 2021. if the member was appointed before that date to a term that
began before Dec. 31, 2021, and expires Dec. 31, 2022.
Section 6.054
SB 63 amends subsection (f) to require the appraisal dis-
SB 63 adds subdivision (3) to prohibit an individual from be-
trict board of directors, local administrative district judge, or
ing employed by an appraisal district if the individual has
judge’s designee that appointed a member of the appraisal
served as a member of the appraisal review board for the ap-
review board, as applicable, to remove the member or find by
praisal district at any time during the preceding two years.
official action that the member’s removal is not warranted not
Effective Sept. 1, 2021, and applies only to a former member later than the 90th day after the date such an official learns of
of an appraisal review board first employed by an appraisal a potential ground for removal of the member.
district on or after the effective date.
Effective Sept. 1, 2021, and applies only to a potential
ground for removal of an appraisal review board member
Section 6.155
that an appraisal district board of directors, local adminis-
HB 988 adds this section to provide that a member of the
trative district judge, or local administrative district judge’s
governing body, officer, or employee of a taxing unit commits
designee, as applicable, first learns of on or after the effec-
an offense if the person directly or indirectly communicates
tive date.
with the chief appraiser or another employee of the appraisal
district in which the taxing unit participates for the purpose
Section 6.412
of influencing the value at which property in the district is
HB 2941 makes conforming changes to subsection (d) by
appraised unless the person owns or leases the property that
removing the reference to Tax Code Section 6.41(d-1) and in-
is the subject of the communication. An offense under this
stead specifically stating the eligibility restrictions for serv-
section is a Class A misdemeanor.
ing on the appraisal review board in that section apply for the
Effective Jan. 1, 2022. appraisal review board of an appraisal district established for
a county with a population of 120,000 or more if the person
meets certain criteria.

Effective June 7, 2021.

2 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
Chapter 11. Taxable Property and Section 11.18
Exemptions HB 115 amends subsection (p) to expand the existing prop-
erty tax exemption for a charitable organization providing
Section 11.13 housing and related services to homeless individuals. The
SB 1 (3rd CS) amends subsection (b) to increase the existing bill increases the required number of years to 20 that a chari-
mandatory homestead exemption on school district property table organization located in a county with a population of
taxes from $25,000 to $40,000. more than 1 million and less than 1.5 million (Travis) must
be in existence to qualify for the exemption. It removes the
Effective May 7, 2022, contingent on voter approval of SJR 2
requirement that the housing be located on a single campus,
(3rd CS), and applies beginning with the 2022 tax year.
instead requiring the housing to be permanent and located on
a tract of land at least 15 acres in size that was either owned
Section 11.131 by the organization on July 1, 2021 or acquired or donated
SB 794 amends subsection (b) to modify the eligibility for
and owned by the organization on Jan. 1, 2023. The bill adds
a total property tax exemption for the homestead of a 100
a charitable organization that has been in existence for 2
percent or totally disabled veteran to a disabled veteran who
years and is located in a city with a population of more than
has been awarded by (rather than receives from) the United
100,000 and less than 150,000 part of which is located in
States Department of Veterans Affairs 100 percent disability
a county with less than 5,000 (Midland) to qualify for the
compensation.
property tax exemption..
Effective Jan. 1, 2022, and the changes in law made by this
Effective Jan. 1, 2022, and applies only to a tax year that
bill apply only to a tax year that begins on or after the ef-
begins on or after the effective date.
fective date.
Section 11.20
Section 11.133 HB 1197 amends subsection (j) to extend the current prop-
SB 611 amends the title of the section to “Residence Home-
erty tax exemption for a tract of land owned for religious
stead of Surviving Spouse of Member of Armed Services
worship expansion purposes that is contiguous to the tract
Killed in Line of Duty.” The bill amends subsection (b) to
of land on which the religious organization’s place of regular
provide that the surviving spouse of a member of the armed
worship is located from six years to ten years.
services of the United States who is killed or fatally injured
in the line of duty (rather than killed in action) is entitled to Effective Jan. 1, 2022, and applies only to taxes imposed for
an exemption from taxation of the total appraised value of a tax year beginning on or after the effective date.
the surviving spouse’s residence homestead if the surviving
spouse has not remarried since the death of the member of Section 11.211
the armed services. HB 3610 adds this section to grant a property tax exemp-
tion on the portion of real property that is leased to an inde-
Effective Jan. 1, 2022, contingent on voter approval of SJR
pendent school district, community college district, or open-
35, and applies only to a tax year beginning on or after the
enrollment charter school. It includes a requirement that the
effective date.
property be used exclusively for the operation or administra-
tion of the school and be determined reasonably necessary
Section 11.145 for that purpose by the school’s governing body.
SB 1449 amends the title of the section to “Income-Produc-
ing Tangible Personal Property Having Value of Less than Effective Sept. 1, 2021, and applies only to taxes imposed
$2,500.” The bill amends subsection (a) to increase the tax- for a tax year beginning on or after the effective date. An
able value below which tangible personal property held or amendment to the Texas Constitution, Article VIII, was
used for the production of income is exempt from property not proposed or passed by the 87th Texas Legislature.
taxation from $500 to $2,500.

Effective Jan. 1, 2022, and applies only to taxes imposed for

a tax year beginning on or after the effective date.

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 3
Section 11.252 Section 11.35
HB 988 amends subsection (d) to modify the application SB 1427 amends subsections (a) and (g) to define damage as
form that the Comptroller is required to provide to claim physical damage for purposes of qualifying for the temporary
a property tax exemption for motor vehicles leased for use property tax exemption for property damaged by a disaster.
other than production of income to allow a claimant certify
Effective June 6, 2021, and is a clarification of existing law
either under oath or by written, unsworn declaration that the
and does not imply that existing law may be construed as
lessee does not hold the vehicle for the production of income.
inconsistent with the law as amended by this bill.
Effective Jan. 1, 2022.
SB 1438 repeals subsections (c), (d), and (e) requiring the
Section 11.253 governing body to adopt the temporary exemption for prop-
HB 988 adds subsections (l) and (m) to authorize a taxing erty damaged by a disaster; thus, making it a mandatory
unit in a declared disaster area to extend by official action the exemption.
number of days to 270, that goods-in-transit may remain at a Effective June 16, 2021 and applies only to ad valorem taxes
defined location before losing eligibility for the tax exemp- imposed for a tax year that begins on or after Jan. 1, 2022.
tion. Subsections (l) and (m) are set to expire Dec. 31, 2025.

Effective Jan. 1, 2022, and applies only to a tax year begin- Section 11.42
SB 8 (2nd CS) adds subsection (f) to provide that an individ-
ning on or after Jan. 1, 2022.
ual who acquires property after January 1 of a tax year may
Section 11.26 receive a residence homestead property tax exemption on the
SB 12 (2nd CS) adds subsections (a-4), (a-5), (a-6), (a-7), (a- property for the applicable portion of the tax year which the
8), (a-9), and (a-10) to recalculate school district tax limita- individual qualified.
tions (tax ceilings) on residence homesteads for individuals Effective Jan. 1, 2022, and applies only to a residence home-
who are 65 or over or disabled to reflect reductions in school stead acquired on or after the effective date.
district maximum compressed tax rates for tax year 2019 and
subsequent tax years. Each new subsection specifies certain Section 11.43
calculations to reduce the tax ceiling based on the year the SB 1438 amends subsection (s) to strike the provision requir-
individual was first eligible to receive the limitation to ac- ing a person who qualifies for an exemption under Tax Code
count for tax rate reductions and ongoing tax rate compres- Section 11.35(c) to apply for the exemption not later than the
sion passed by the 86th Legislature. 45th day after the date the governing body of the taxing unit
adopts the exemption.
Effective Jan. 1, 2023, contingent on voter approval of SJR 2
(2nd CS), and applies only to a tax year beginning on or after Effective June 16, 2021, and applies only to ad valorem taxes
the effective date. imposed for a tax year that begins on or after Jan. 1, 2022.

Section 11.27 Section 11.431

SB 63 amends subsection (a) and adds subsection (a-1) to SB 611 amends subsection (a) to provide an exception to the
clarify a person is entitled to an exemption from taxation of two year filing deadline for different veteran related home-
the appraised value of a solar or wind-powered energy de- stead exemptions. The bill strikes language that the chief
vice owned by the person regardless of whether the person appraiser accept, approve or deny an application for resi-
owns the real property on which the device is installed or dence homestead exemption under Tax Code Sections 11.131,
constructed. 11.132 or 11.133, of a disabled veteran or surviving spouse,
if the application is filed not later than two years after the
Effective Sept. 1, 2021, and is a clarification of existing law
delinquency date for the taxes on the property.
and does not imply that existing law may be construed as
inconsistent with the law as amended by this bill.

4 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
Effective Jan. 1, 2022, and apply only to an application for Section 11.50
an exemption filed for a tax year that begins on or after the SB 1088 adds this section to authorize the chief appraiser of
effective date. an appraisal district to request that a chief appraiser of anoth-
er appraisal district provide a list of names of all individuals
Section 11.439 who receive a residence homestead exemption in the apprais-
SB 611 amends the title of the section to “Late Applications al district for which the request is made. The bill requires the
for Disabled Veterans Exemptions.” The bill amends subsec- chief appraiser who receives the request to provide the list as
tion (a) to require a chief appraiser accept and approve or soon as practicable and specifies that confidentiality does not
deny a late application for a homestead exemption for a dis- apply the discloser of this information.
abled veteran under Tax Code Section 11.131 or 11.132, but
not the surviving spouse of the disabled veteran, if the appli- Effective Sept. 1, 2021.
cation is filed not later than five years (rather than two years)
after the delinquency date for the taxes on the property.
Chapter 21. Taxable Situs

Effective Jan. 1, 2022, and apply only to an application for

Section 21.021
HB 988 amends subsections (a) and (b) to provide that, ex-
an exemption filed for a tax year that begins on or after the
cept as otherwise provided by Tax Code Section 21.031(b-
effective date.
2), a vessel or other watercraft used as an instrumentality of
commerce, as defined by Tax Code Section 21.031, Alloca-
Section 11.45
tion of Taxable Value of Vessels and Other Watercraft Used
SB 63 amends subsections (a) and (b) to require the chief ap-
Outside This State, rather than in Tax Code Section 21.031(b),
praiser to act on an exemption application within 90 days af-
is taxable pursuant to Tax Code Section 21.02, Tangible Per-
ter the later of the date the applicant first qualified or the date
sonal Property Generally.
the applicant provides information necessary for the chief
appraiser to determine the applicant’s right to the exemption. Effective Jan. 1, 2022, and applies only to the allocation of
The bill would require the chief appraiser deliver a written the value and the determination of the situs of vessels and
notice to the applicant specifying additional information, if other watercraft for ad valorem tax purposes beginning on
needed, within 30 days after the application is filed. or after Jan. 1, 2022.
The bill amends subsection (d) to specify if the chief apprais-
er modifies or denies an application, the chief appraiser shall
Section 21.031
HB 988 amends subsection (b) to require the appraisal office
deliver a written notice of the modification or denial to the
make the allocation of taxable value of vessels and other wa-
applicant not later than the fifth day after the date the chief
tercraft used outside this state as provided by added subsec-
appraiser makes the determination. The notice must state and
tions (b-1), (b-2), and (b-3). The bill adds subsection (b-1) to
fully explain each reason the chief appraiser modified or de-
create an exception under subsection (b-2) to the determina-
nied the application. The bill amends subsection (e) to require
tion of the allocation fair market values of a vessel or other
the chief appraiser state and fully explain each reason the
watercraft used as an instrumentality of commerce that is
chief appraiser modified or denied an application for an ex-
taxable in this state. New subsection (b-2) allows a property
emption under Tax Code Section 11.35, Temporary Exemp-
owner operating vessels or other watercraft as instrumentali-
tion for Qualified Property Damaged by Disaster.
ties of commerce to request in writing for the appraisal dis-
Effective Sept. 1, 2021. Tax Code Sections 11.45(a) and (b), trict allocate the fair market value on a fleet wide basis and
as amended, apply only to an application filed with a chief designate the location of the property owner’s principal place
appraiser on or after the effective date. Tax Code Sections of business as the taxable situs of the fleet. Subsection (b-3)
11.45(d) and (e), as amended, apply only to a notice required strikes existing text defining “special-purpose vessel or other
to be delivered by a chief appraiser on or after the effective watercraft not used as an instrumentality of commerce.” The
date. bill adds subsection (i) to define “special-purpose vessel or
other watercraft not used as an instrumentality of commerce”

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 5
and “vessel or other watercraft used as an instrumentality of still prima facie grounds for the cancellation of the dealer’s
commerce.” general distinguishing number under Transportation Code
Section 503.038(a)(9).
Effective Jan. 1, 2022, and applies only to the allocation of
the value and the determination of the situs of vessels and Effective Sept. 1, 2021.
other watercraft for ad valorem tax purposes beginning on
or after Jan. 1, 2022. Section 23.21
SB 113 amends subsection (c) to require a chief appraiser to
Chapter 23. Appraisal Methods and use the income method of appraisal in appraising land that is
Procedures leased by a community land trust as specified regardless of
whether the chief appraiser considers that method to be the
Section 23.013 most appropriate method for appraising the property. In ap-
HB 3971 amends subsection (e) to define “designated historic praising the property, the chief appraiser would be required
district” as an area that is zoned or otherwise designated as to:
a historic district under municipal, state, or federal law. The
bill requires a chief appraiser to consider the effect of any • consider the uses and limitations applicable to the
restriction placed by a historic district on a property owner’s property for purposes of computing the actual rental
ability to alter, improve, or repair the property in determining income from the property and projecting future rental
market value of residential real property located in a desig- income; and
nated historic district. • use the same capitalization rate that the chief appraiser
uses to appraise other rent-restricted properties.
Effective Jan. 1, 2022, and applies to the appraisal for prop-
erty tax purposes of residential real property only for a tax The bill strikes the provision requiring the chief appraiser to
year beginning on or after the effective date. consider the extent to which the use and limitation reduce the
property’s market value.
Section 23.014
The bill adds subsection (c-1) to require the chief appraiser, in
HB 2535 amends this section require a chief appraiser ana-
appraising a housing unit that is leased by a community land
lyze the effect on value of any chicken coops or rabbit pens
trust, as specified, to use the income method of appraisal as
used for the noncommercial production of food for personal
described by Tax Code Section 23.012 to determine the ap-
consumption and exclude that value in determining the mar-
praised value of the property regardless of whether the chief
ket value of real property.
appraiser considers that method to be the most appropriate
Effective Jan. 1, 2022. method of appraising the property. The bill requires the chief
appraiser, in appraising the property, to:
Section 23.121
• consider the uses and limitations applicable to the
HB 3514 amends subsection (h) to authorize, instead of
property, including the terms of the lease applicable
requiring, a chief appraiser to report a dealer to the Texas
to the property, for purposes of computing the actual
Department of Motor Vehicles if a dealer fails to file the
rental income from the property and projecting future
required motor vehicle inventory declaration. The chief ap-
rental income; and
praiser is required to include written verification that the
• use the same capitalization rate that the chief appraiser
chief appraiser informed the dealer of the requirement to file
uses to appraise other rent-restricted properties.
a declaration. The bill creates new subsection (h-1) for the
existing requirement of a chief appraiser to report a dealer to The bill amends subsection (d) to prohibit a chief appraiser
the Texas Department of Motor Vehicles to initiate cancel- from appraising a housing unit owned by a community land
lation of the dealer’s general distinguishing number when a trust at a value greater than the price for which it could be
dealer reports the sale of fewer than five motor vehicles in the sold under an eligible land use restriction in that tax year.
prior year on the required declaration. The chief appraiser is The use restriction would have to be recorded in real prop-
still required to include a copy of the declaration in the report erty deeds, have a term of at least 40 years, restrict the sales
to the Texas Department of Motor Vehicles and that report is

6 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
price to at or below market value, and restrict the sale to low Section 23.23
income families. SB 8 (2nd CS) adds subsection (c-1) to provide an owner who
receives a partial year homestead exemption is considered to
Effective Sept. 1, 2021, and applies only to property taxes im-
have qualified the property for the exemption as of January
posed for a tax year that begins on or after the effective date.
1 of the tax year following the tax year in which the owner
acquired the property for the purpose of when the limitation
Section 23.215
on appraised value begins.
HB 3833 amends subsection (a) concerning conditions under
which the provisions regarding appraisal of certain non-ex- Effective Jan. 1, 2022, and applies only to a residence home-
empt real property used for low-income or moderate-income stead acquired on or after the effective date.
housing would apply. The bill would:
Section 23.44
• strike the requirement that the low-income housing be
SB 63 amends subsection (a) to provide the deadline the chief
rented to a low-income or moderate income individual
appraiser is required to determine each claimant’s right to
or family satisfying certain low-income housing orga-
the agricultural designation is as soon as practicable but not
nizations’ income eligibility requirements on the effec-
later than the 90th day after the later of the date the claim-
tive date of Tax Code Section 23.215 and instead re-
ant is first eligible for the agricultural designation or the date
quire that the property be held for the purpose of rent-
the claimant provides to the chief appraiser the information
ing the property to such an individual or family; and
necessary for the chief appraiser to determine the claimant’s
• add a requirement that the low-income housing be sub-
right to the agricultural designation. The bill amends subsec-
ject to a land use restriction agreement under a speci-
tion (b) to require the chief appraiser deliver a written notice
fied low-income housing tax credit program that has
to the claimant as soon as practicable but within 30 days after
not expired or been terminated.
the application is filed if additional information is needed.
The bill amends subsection (b) to require a chief appraiser to The bill requires that the chief appraiser send written notice
appraise specified low-income housing property that is under if the application is denied and the chief appraiser must state
construction or that has not reached stabilized occupancy on and fully explain each reason the application was denied.
January 1 of the tax year in which the property is appraised
Effective Sept. 1, 2021, and applies only to an application
by using a specified income method including:
filed with a chief appraiser on or after the effective date.
(1) using the property’s projected income and expenses
for the first full year of operation established and uti- Section 23.46
lized in a specified underwriting report; SB 725 adds subsection (e-1) to provide that a portion of a
(2) adjusting, as specified, the gross income potential and parcel of land is not diverted to nonagricultural use because it
operating costs for the percentage completed on Janu- is subject to a right-of-way that is less than 200 feet wide and
ary 1; and that was taken by condemnation if the remainder of the land
(3) adjusting the income and expenses in the underwrit- qualifies. The bill adds subsection (g) to specify that if the
ing report for actual occupancy for completed prop- additional taxes are due because the land has been diverted
erties that have not reached stabilized occupancy on to a nonagricultural use as a result of a condemnation, the ad-
January 1. ditional taxes and interest are the personal obligation of the
condemning entity and not the property owner from whom
The bill amends subsection (c) to require the chief appraiser the property was taken.
to determine the appraised value of the property in the man-
ner provided by Tax Code Section 11.1825(q) for the first tax Effective Sept. 1, 2021. Tax Code Section 23.46(e-1), as add-
year following the completion of construction and stabilized ed by this bill applies only to the appraisal of land for prop-
occupancy. erty tax purposes for a tax year that begins on or after the
effective date. Tax Code Section 23.46(g), as added by this
Effective June 15, 2021, and applies only to a property tax bill applies only to a change of use of land that occurs on or
year that begins on or after the effective date. after the effective date.

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 7
Section 23.55 Section 23.79
HB 3833 amends subsections (a), (b), (e), (f), (m), and (n) to SB 63 amends subsection (a) to provide the deadline the chief
remove the requirement for interest imposed on a taxpayer appraiser is required to determine each applicant’s right to
when there is a change of use under Tax Code Chapter 23, have land appraised under Subchapter E is as soon as prac-
Subchapter D, Appraisal of Agricultural Land. ticable but not later than the 90th day after the later of the
date the applicant’s land is first eligible for the designation
Effective June 15, 2021, and applies only to a change of use or the date the applicant provides to the chief appraiser the
of land appraised under Tax Code Chapter 23, Subchapter D information necessary to determine the applicant’s right to
that occurs on or after the effective date. special appraisal.. The bill amends subsection (b) to require
the chief appraiser deliver a written notice to the applicant as
Section 23.57 soon as practicable but within 30 days after the application
SB 63 amends subsection (a) to provide the deadline the chief
is filed if additional information is needed. The bill requires
appraiser is required to determine each applicant’s right to
that the chief appraiser send written notice if the application
have land appraised under Subchapter D is as soon as prac-
is denied and the chief appraiser must state and fully explain
ticable but not later than the 90th day after the later of the
each reason the application was denied.
date the applicant’s land is first eligible for the designation
or the date the applicant provides to the chief appraiser the Effective Sept. 1, 2021, and applies only to an application
information necessary to determine the applicant’s right to filed with a chief appraiser on or after the effective date.
special appraisal.. The bill amends subsection (b) to require
the chief appraiser deliver a written notice to the applicant as Section 23.85
soon as practicable but within 30 days after the application SB 63 amends subsection (a) to provide the deadline the chief
is filed if additional information is needed. The bill requires appraiser is required to determine each applicant’s right to
that the chief appraiser send written notice if the application have land appraised under Subchapter F is as soon as prac-
is denied and the chief appraiser must state and fully explain ticable but not later than the 90th day after the later of the
each reason the application was denied. date the applicant’s land is first eligible for the designation
or the date the applicant provides to the chief appraiser the
Effective Sept. 1, 2021, and applies only to an application information necessary to determine the applicant’s right to
filed with a chief appraiser on or after the effective date. special appraisal. The bill amends subsection (b) to require
the chief appraiser deliver a written notice to the applicant as
Section 23.58 soon as practicable but within 30 days after the application
HB 3833 amends subsections (c) and (d) to strike interest
is filed if additional information is needed. The bill requires
from provision regarding loans secured by lien on open-
that the chief appraiser send written notice if the application
spaced land.
is denied and the chief appraiser must state and fully explain
Effective June 15, 2021, and applies only to a loan secured each reason the application was denied.
by a lien on open-space land that is contracted for on or
Effective Sept. 1, 2021, and applies only to an application
after the effective date.
filed with a chief appraiser on or after the effective date.

Section 23.76 Section 23.86

HB 3833 amends subsections (a), (b), and (e) to remove the
HB 3833 amends subsection (a) to decrease the rollback
requirement for interest imposed on a taxpayer when there is
period from five years to three years and to remove the re-
a change of use under Tax Code Chapter 23, Subchapter E,
quirement for interest imposed on a taxpayer when there is
Appraisal of Timberland.
a change of use under Tax Code Chapter 23, Subchapter F,
Effective June 15, 2021, an applies only to a change of use Appraisal of Recreational, Park, and Scenic Land. The bill
of land appraised under Tax Code Chapter 23, Subchapter E amends subsection (b) to provide that a tax lien attaches to
that occurs on or after the effective date. the land on the date the change of use occurs or the deed
restriction expires to secure payment of the additional tax

8 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
and any penalties and interest incurred if the tax becomes information necessary to determine the applicant’s right to
delinquent. special appraisal.. The bill amends subsection (b) to require
the chief appraiser deliver a written notice to the applicant as
Effective June 15, 2021, and applies only to a change of use soon as practicable but within 30 days after the application
of land appraised under Tax Code Chapter 23, Subchapter F is filed if additional information is needed. The bill requires
that occurs on or after the effective date. that the chief appraiser send written notice if the application
is denied and the chief appraiser must state and fully explain
Section 23.95 each reason the application was denied.
SB 63 amends subsection (a) to provide the deadline the chief
appraiser is required to determine each applicant’s right to Effective Sept. 1, 2021, and applies only to an application
have land appraised under Subchapter G is as soon as prac- filed with a chief appraiser on or after the effective date.
ticable, but not later than the 90th day after the later of the
date the applicant’s land is first eligible for the designation Section 23.9807
or the date the applicant provides to the chief appraiser the HB 3833 amends subsections (a) and (b) to decrease the roll-
information necessary to determine the applicant’s right to back period from five years to three years and to remove the
special appraisal.. The bill amends subsection (b) to require requirement for interest imposed on a taxpayer when there is
the chief appraiser deliver a written notice to the applicant as a change of use under Tax Code Chapter 23, Subchapter H,
soon as practicable but within 30 days after the application Appraisal of Restricted-Use Timber Land. The bill amends
is filed if additional information is needed. The bill requires subsection (c) to provide that a tax lien attaches to the land
that the chief appraiser send written notice if the application on the date the change of use occurs to secure payment of the
is denied and the chief appraiser must state and fully explain additional tax and any penalties and interest incurred if the
each reason the application was denied. tax becomes delinquent.

Effective Sept. 1, 2021, and applies only to an application Effective June 15, 2021, and applies only to a change of use
filed with a chief appraiser on or after the effective date. of land appraised under Tax Code Chapter 23, Subchapter H
that occurs on or after the effective date.
Section 23.96
HB 3833 amends subsection (a) to decrease the rollback Chapter 25. Local Appraisal
period from five years to three years and to remove the re-
Section 25.02
quirement for interest imposed on a taxpayer when there
HB 988 adds subsections (c) to require that each appraisal
is a change of use under Tax Code Chapter 23, Subchapter
record have a unique account number and if an appraisal dis-
G, Appraisal of Public Access Airport Property. The bill
trict changes the account number of an appraisal record, the
amends subsection (b) to provide that a tax lien attaches to
appraisal district must provide written notice of the change
the property on the date the deed restriction expires to secure
to the property owner as soon as practicable after the change
payment of the additional tax imposed and any penalties and
and provide notice of the change in the next notice of ap-
interest incurred if the tax becomes delinquent.
praised value of the property.
Effective June 15, 2021, and applies only to a change of use
The bill adds subsection (d), which does not apply to an ap-
of land appraised under Tax Code Chapter 23, Subchapter G
praisal record for a residential property, for an improvement
that occurs on or after the effective date.
only or for a property on which a delinquent tax is due to re-
quire the chief appraiser, at the written request of a property
Section 23.9805
owner, to combine contiguous parcels or tracts of real prop-
SB 63 amends subsection (a) to provide the deadline the chief
erty into a single appraisal record and separate identifiable
appraiser is required to determine each applicant’s right to
segments of the owner’s parcel or tract of real property into
have land appraised under Subchapter H is as soon as prac-
individual appraisal records.
ticable but not later than the 90th day after the later of the
date the applicant’s land is first eligible for the designation The bill adds subsection (e) to require a property owner to
or the date the applicant provides to the chief appraiser the make this request before January 1 of the tax year for which

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 9
the requested change to the appraisal records is to be made SB 841 subsection (a-1) by adding Subdivision (1-a) to pro-
and the request must contain a legal description as contained vide “Honorably retired” means, with respect to a position,
in a deed sufficient to describe the property subject to the an individual who:
request.
(A) previously served but is not currently serving in the
The bill adds subsection (f) to authorize an appraisal review position;
board to order the requested change on a motion filed by the (B) did not retire in lieu of any disciplinary action;
property owner under Tax Code Section 25.25, Correction of (C) was eligible to retire from the position or was ineli-
Appraisal Roll, or a protest filed under Tax Code Chapter 41, gible to retire only as a result of an injury received
Local Review, if a chief appraiser refuses to combine parcels in the course of the individual’s employment in the
or tracts or separate a parcel or tract. position; and
(D) is eligible to receive a pension or annuity for service
The bill adds subsection (g) to provide that combining con- in the position or is ineligible to receive a pension
tiguous parcels or tracts of real property into a single ap- or annuity only because the entity that employed the
praisal record or the separation of identifiable segments of individual does not offer a pension or annuity to its
a parcel or tract of real property into individual appraisal employees.
records does not affect the application of generally accepted
appraisal methods and techniques to the appraisal of real SB 1134 amends subsection (a-1) to provide “family mem-
property associated with those appraisal records. ber” has the meaning assigned by Finance Code Section
31.006.
Effective Jan. 1, 2022.
Effective May 19, 2021, the changes in law made by HB 1082
Section 25.025 apply only to a request for information that is received by
HB 1082, HB 3607, SB 56, SB 841, SB 1134 reenact and a governmental body or an officer on or after the effective
amend subsection (a) as amended by Chapters 467 (H.B. date, and to the extent of any conflict, this bill prevails over
4170), 469 (H.B. 4173), 633 (S.B. 1494), 1213 (S.B. 662), and another bill of the 87th Legislature, Regular Session, 2021,
1245 (H.B. 2446), Acts of the 86th Legislature, Regular Ses- relating to nonsubstantive additions to and corrections in
sion, 2019 to renumber and add the following individuals to enacted codes.
whom provisions relating to confidentiality of certain home
address information apply: Effective June 14, 2021, the changes in law made by SB 56
and SB 841 apply only to a request for information that is
• an elected public officer (HB 1082); received by a governmental body or an officer on or after
• a current or former United States attorney, assistant the effective date, and to the extent of any conflict, this bill
United States attorney, federal public defender, deputy prevails over another bill of the 87th Legislature, Regular
federal public defender, or assistant federal public de- Session, 2021, relating to nonsubstantive additions to and
fender and the spouse and child of the attorney or pub- corrections in enacted codes.
lic defender (SB 56);
• a current or honorably retired county jailer as defined Effective Sept. 1, 2021, (SB 1134; HB 3607).
by Occupations Code Section 1701.001; (SB 841)
• a current or honorably retired police officer or inspec- Section 25.07
SB 1315 adds subsection (d) to define property used as an aid
tor of the United States Federal Protective Service; (SB
or facility incidental to or useful in the operation or develop-
841)
ment of a port or waterway or in aid of navigation-related
• a federal judge, a federal bankruptcy judge, a marshal
commerce for the purposes of a leasehold or other possessory
of the United States Marshals Service, a state judge,
interest in as exempt property that could not be listed in the
or a family member of a federal judge, a federal bank-
appraisal records as taxable property if the property:
ruptcy judge, a marshal of the United States Marshals
Service, or a state judge; (SB 1134)

10 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
 (1) is leased to a person: the purpose of the notice is to include omitted property or to
(A) engaged in the business of navigation-related correct a clerical error.
commerce; or
The bill adds subsection (n) to require the chief appraiser,
(B) for a purpose described by Water Code Section
as soon as practicable after delivering a notice of appraised
60.101, 61.162, or 63.153, or for the placement
value, to post the notice on the appraisal district’s website, if
on the property of an improvement described
the appraisal district maintains one, as part of the appraisal
by those sections;
record pertaining to the property.
(2) is located:
(A) adjacent to a federal navigation project; or Effective Jan. 1, 2022, and applies only to a notice of ap-
(B) in a foreign trade zone established and operated praised value for a tax year beginning on or after Jan. 1,
under federal law; or 2022.
(3) includes part of a rail facility that serves the tenants
and users of the port or waterway. HB 2723 adds subsection (m) to stipulate that a notice of ap-
praised value include the following verbatim statement: “Be-
The bill adds subsection (e) to provide “navigation-related ginning August 7th, visit Texas.gov/PropertyTaxes to find a
commerce” includes the following if engaged in by a person: link to your local property tax database on which you can
easily access information regarding your property taxes, in-
(1) an activity that requires the person to hold a mari-
cluding information regarding the amount of taxes that each
time-related license or permit issued by a navigation
entity that taxes your property will impose if the entity adopts
district, including providing stevedoring, steamship
its proposed tax rate. Your local property tax database will
agency, towing, tugboat or line handling services;
be updated regularly during August and September as local
(2) an activity that requires the person to hold a franchise
elected officials propose and adopt the property tax rates that
issued by a navigation district;
will determine how much you pay in property taxes.”
(3) possessing a leasehold interest in property owned by
a navigation district that connects infrastructure to a The bill adds subsection (n) to require the chief appraiser,
public dock; as soon as practicable after delivering a notice of appraised
(4) hauling cargo into or across a public dock; value, to post the notice on the appraisal district’s website, if
(5) commercial fishing; the appraisal district maintains one, as part of the appraisal
(6) constructing, fabricating, cleaning, repairing, disman- record pertaining to the property.
tling or recycling vessels;
(7) pilotage; or Effective June 3, 2021, and applies only to a notice required
(8) an activity described by Water Code Section 60.101, to be delivered for a property tax year that begins on or after
61.162 or 63.153. Jan. 1, 2022.

Effective Sept. 1, 2021, and applies only to the taxation of Section 25.193
property for a tax year beginning on or after the effective SB 63 amends subsection (b) to strike language specifying
date. property.

Section 25.19 Effective Sept. 1, 2021.

HB 988 amends subsection (b) to require that the notice of
appraised value include an explanation of the availability and Section 25.21
purpose of an informal conference with the appraisal office HB 1090 amends subsection (a) to require the chief appraiser,
before a protest hearing. if the chief appraiser discovers that real property was omit-
ted from an appraisal roll in any one of the three preceding
The bill adds subsection (m) to prohibit a chief appraiser from tax years (rather than five preceding years), or that personal
delivering a corrected or amended notice of appraised value property was omitted from an appraisal roll in one of the
later than June 1 for property which a person files a rendition two preceding tax years (rather than two preceding years), to
statement or property report as required by Chapter 22 unless appraise the property as of January 1 of each tax year that it

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 11
was omitted and enter the property and its appraised value in • the appraised value of the property was established
the appraisal records. because of a written agreement between the property
owner or the owner’s agent and the appraisal district.
Effective Sept. 1, 2021.
The bill amends subsection (e) to provide that a party bring-
Section 25.25 ing a motion under subsection (c-1), if the chief appraiser and
SB 63 amends subsection (d) to require an appraisal review the property owner do not agree to the correction before the
board schedule a protest hearing on an error motion to cor- 15th day after the date the motion is filed, is entitled on re-
rect the appraisal roll as soon as practicable but not later than quest to a hearing on and a determination of the motion by
the 90th day after board approves the appraisal records as the appraisal review board. The bill amends subsection (m) to
provided by Tax Code Section 41.12 (Approval of Appraisal requires that a hearing under subsection (c-1), be conducted in
Records by Board) for a hearing request made on or after the manner provided by Tax Code Chapter 41, Subchapter C,
January 1 but before September 1. If a request for hearing Taxpayer Protest.
is made on or after September 1 but before January 1 of the
following tax year, the appraisal review board is required to Effective Sept. 1, 2021, the changes in law made by this bill
schedule the hearing as soon as practicable but not later than apply only to a motion to correct an appraisal roll filed on
the 90th day after the date the request for the hearing is made. or after the effective date.

Effective Sept. 1, 2021, and applies only to a motion to cor- Chapter 26. Assessment
rect an appraisal roll filed on or after the effective date.
Section 26.012
SB 1421 adds subsection (c-1) to permit an appraisal review HB 1869 amends subdivision (7) to add “debt” must meet
board, on motion of a property owner or chief appraiser, to one of the following requirements:
direct by written order changes in the appraisal roll or re-
• has been approved at an election;
lated records for the current tax year and for either of the
• includes self-supporting debt;
two preceding tax years to correct an inaccuracy in the ap-
• evidences a loan under a state or federal financial as-
praised value of the owner’s tangible personal property that
sistance program;
is the result of an error or omission in a rendition statement
• is issued for designated infrastructure;
or property report filed under Tax Code Chapter 22 regarding
• is a refunding bond;
renditions and other reports, for the applicable tax year. The
• is issued in response to an emergency under Govern-
roll may not be changed under this subsection for any tax
ment Code Section 1431.015 (Certain Notes or Other
year in which:
Obligations for Emergency Financing);
• the property owner failed to timely file the required • is issued for renovating, improving, or equipping exist-
rendition statement or property report and was as- ing buildings or facilities;
sessed a penalty; • is issued for vehicles or equipment; or
• the property was the subject of a protest brought by the • is issued for a project under Tax Code Chapter 311
property owner, a hearing on the protest was conduct- (Tax Increment Financing Act)or Transportation Code
ed in which the owner offered evidence or argument, Chapter 222 (Funding and Federal Aid)that is locat-
and the appraisal review board made a determination ed in a reinvestment zone created under one of those
of the protest on the merits; chapters.
• the property was the subject of a previous motion filed
The bill adds subdivision (9) to define “designated infrastruc-
by the property owner under this section and the chief
ture” to mean infrastructure, including a facility, equipment,
appraiser and the owner agreed to the correction, the
rights-of-way, or land, for specific purposes. The bill adds
appraisal review board determined the motion or the
subsection (18-a) to define “refunding bond” as a bond or
appraisal review board determined that the owner for-
other obligation issued for refunding or refinancing purposes
feited the right to a final determination of the motion
under Government Code Chapter 1207 or 1371. Added sub-
for failing to comply with the prepayment require-
section (18-b) defines “self-supporting debt” as the portion of
ments; or

12 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
a bond, warrant, certificate of obligation, or other evidence of Section 26.042
indebtedness described by Subdivision (7)(A)(i) designated SB 1438 adds this section to allow the calculation and adop-
by the governing body of a political subdivision as being re- tion of certain tax rates in a disaster area. New subsection
paid from a source other than property taxes. (a) allows a taxing unit other than a school district or a spe-
cial taxing unit to calculate the voter-approval tax rate in the
Effective Sept. 1, 2021, and applies only to a bond, warrant,
manner provided for a special taxing unit if it is located in
certificate of obligation, or other evidence of indebtedness
an area declared a disaster by the Governor or President of
for which the ordinance, order, or resolution authorizing the
the United States during the current tax year and at least one
issuance is adopted by the governing body of a taxing unit on
person is granted a temporary disaster exemption under Tax
or after the effective date, unless the taxing unit entered into
Code Section 11.35 for property located in the taxing unit.
a binding agreement that contemplated the issuance of such
A taxing unit may continue this calculation until the earlier
debt before the effective date.
of the first tax year in which the total taxable value exceeds
that of January 1 of the year in which the disaster occurred
Section 26.04
or the third year after the disaster occurred. New subsection
SB 1438 repeals subsection (c-1) relating to the calculation
(b) requires the taxing unit to reduce its voter-approval tax
of a tax rate in a disaster area. See new Tax Code Section
rate by the taxing unit’s emergency revenue rate following
26.042, Calculation and Adoption of Certain Tax Rates in
the end of the disaster tax rate calculation period and details
Disaster Area.
the calculation of the emergency revenue rate. Subsection (c)
Effective June 16, 2021. defines the adjusted voter-approval tax rate used within the
calculation of the emergency revenue rate.
HB 2723 amends subsection (e-2) to require that the post-
card notice include the following statement: “VisitTexas.gov/ New subsection (d) provides that when increased expendi-
PropertyTaxes to find a link to your local property tax da- ture of money by a taxing unit other than a school district is
tabase on which you can easily access information regard- necessary to respond to a disaster, including a tornado, hur-
ing your property taxes, including information regarding the ricane, flood, wildfire, or other calamity, but not including a
amount of taxes that each entity that taxes your property will drought, epidemic, or pandemic, that has impacted the taxing
impose if the entity adopts its proposed tax rate. Your lo- unit and the Governor has requested federal disaster assis-
cal property tax database will be updated regularly during tance, an election is not required under Section 26.07, Au-
August and September as local elected officials propose and tomatic Election to Approve Tax Rate of Taxing Unit Other
adopt the property tax rates that will determine how much Than School District, to approve the tax rate adopted by the
you pay in property taxes.” The bill strikes provision requir- governing body for the year following the year in which the
ing that the notice include a statement directing the property disaster occurs.
owner to an Internet website.
New subsection (e) provides that when increased expenditure
Effective June 3, 2021, and applies only to a notice required of money by a school district is necessary to respond to a di-
to be delivered for a property tax year that begins on or after saster, including a tornado, hurricane, flood, wildfire, or other
Jan. 1, 2022. calamity, but not including a drought, epidemic, or pandemic,
that has impacted the school district and the Governor has
Section 26.041 requested federal disaster assistance, an election is not re-
SB 1438 repeals subsection (c-1) relating to the calculation quired under Tax Code Section 26.08, Automatic Election to
of a tax rate in a disaster area. See new Tax Code Section Approve Tax Rate of School District, to approve the tax rate
26.042, Calculation and Adoption of Certain Tax Rates in adopted by the governing body of the school district for the
Disaster Area. year following the year in which the disaster occurs.

Effective June 16, 2021. New subsection (f) provides that a taxing unit that exceeds its
voter-approval tax rate without an election under subsections
(d) and (e) may not consider the amount by which the rate was

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 13
increased when calculating its voter-approval tax rate in the tax rate for the current tax year that exceeds the lesser of the
following year. defunding municipality’s no-new-revenue tax rate or voter-
approval tax rate for that tax year.
New subsection (g) requires a taxing unit to specify the
disaster declaration that is the basis of the disaster tax rate Added subsection (b-1) provides the governing body of the
calculation and prohibits a taxing unit from using the same defunding municipality, notwithstanding subsection (b), if
disaster declaration as justification for a new disaster tax rate a municipality is determined to be a defunding municipal-
calculation in a subsequent tax year. ity according to the budget adopted by the municipality for
the first fiscal year beginning on or after Sept. 1, 2021, from
Effective June 16, 2021. adopting a tax rate for the current year that exceeds the least
of the defunding municipality’s no-new-revenue tax rate or
Section 26.0442 voter-approval tax rate for that tax year, the preceding tax
HB 295 amends subsection (a) to change the definition of
year, or the second preceding tax year. The bill provides that
“indigent defense compensation expenditures” to include the
this subsection expires Sept. 1, 2023.
operation of a public defender’s office under Article 26.044,
Code of Criminal Procedure, in the tax rate adjustment for Subsection (c) provides that, for purposes of making the calcu-
county indigent defense compensation. lation required under Tax Code Section 26.013 (Unused Incre-
ment Rate), in a tax year in which a municipality is a defunding
Effective Sept. 1, 2021, and applies to the calculation of
municipality, the difference between the municipality’s actual
the no-new-revenue maintenance and operations rate for a
tax rate and voter-approval tax rate is considered to be zero.
county only for a tax year beginning on or after Jan. 1, 2022.
Effective Sept. 1, 2021, and applies beginning with the 2021
Section 26.0444 tax year.
HB 1900 adds this section to define “defunding municipal-
ity” and “municipal public safety expenditure adjustment.” Section 26.052
Added subsection (b) provides that the no-new-revenue main- HB 2723 adds subsection (e-1) to require that the notice pro-
tenance and operations rate for a defunding municipality is vided under subsection (c) include the following statement:
decreased by the rate computed as: “VisitTexas.gov/PropertyTaxes to find a link to your local
property tax database on which you can easily access infor-
Municipal Public Safety Expenditure Adjustment
mation regarding your property taxes, including information
––––––divided by––––––
about proposed tax rates and scheduled public hearings of
(Current Total Value – New Property Value)
each entity that taxes your property.”
Subsection (c) requires a defunding municipality to provide
Effective June 3, 2021, and applies only to a notice required
a notice of the decrease in the no-new-revenue maintenance
to be delivered for a property tax year that begins on or after
and operations rate in the information published under Tax
Jan. 1, 2022.
Code Section 26.04(e) and, as applicable, in the notice pre-
scribed by Tax Code Section 26.06 or 26.061. The bill pro- Section 26.06
vides certain exceptions calculating the municipal public HB 2723 amends subsections (b-1), (b-2), and (b-3) to add
safety expenditure adjustment. to the prescribed language for hearing notices the statement:
Effective Sept. 1, 2021, and applies beginning with the 2021 “VisitTexas.gov/PropertyTaxes to find a link to your local
tax year, except that Tax Code Section 26.0444(c), as added property tax database on which you can easily access infor-
by this bill, does not apply for the 2021 tax year. mation regarding your property taxes, including information
about proposed tax rates and scheduled public hearings of
Section 26.0501 each entity that taxes your property.”
HB 1900 adds this section to prohibit the governing body of
Effective June 3, 2021, and applies only to a notice required
a defunding municipality, notwithstanding any other provi-
to be delivered for a property tax year that begins on or after
sion of Tax Code Chapter 26 or other law, from adopting a
Jan. 1, 2022.

14 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
Section 26.061 HB 3607 repeals subsection (n-1) as executed.
HB 2723 amends subsection (b) to add to the prescribed lan-
Effective June 16, 2021.
guage for the meeting notice the statement: “VisitTexas.gov/
PropertyTaxes to find a link to your local property tax data-
Section 26.10
base on which you can easily access information regarding
SB 113 amends subsection (a) to provide that, if the appraisal
your property taxes, including information about proposed
roll shows that a property is eligible for taxation for only part
tax rates and scheduled public hearings of each entity that
of a year because an exemption, other than a residence home-
taxes your property.”
stead exemption or an exemption described by Subsection (d),
Effective June 3, 2021, and applies only to a notice required applicable on January 1 of that year terminated during the
to be delivered for a property tax year that begins on or after year, the tax due against the property is calculated by using a
Jan. 1, 2022. certain formula. The bill adds subsection (d) to provide an ex-
ception for land received by an organization under Tax Code
Section 26.063 Sections 11.181, 11.182, or 11.1825 that terminated during the
HB 2429 adds subsection (d) to provide that this subsection year because of the sale by the organization of a housing unit
applies only to a taxing unit that is not required to hold an located on the land if:
election under Tax Code Section 26.07 and for which the
• the housing unit is sold to a family meeting the income-
qualified voters of the taxing unit may not petition to hold
eligibility standards established by Local Government
an election under Tax Code Section 26.075. In the notice re-
Code Section 373B.006;
quired to be provided by the taxing unit under Tax Code Sec-
• the organization retains title to the land on which the
tion 26.06(b-1) or (b-3), as applicable, the taxing unit shall
housing unit is located; and
add prescribed language to the end of the list of rates includ-
• before the date on which the housing unit is sold, the
ed in the notice. The prescribed language lists the de minimis
organization is designated a community land trust by
rate, provides a substitute definition of “voter-approval tax
the governing body of a municipality or county as pro-
rate,” adds a definition of “de minimis rate,” and substitutes
vided by Local Government Code Section 373B.002.
language regarding the notice that an election is required to
include the proposed tax rate is greater than the voter-approv- Effective Sept. 1, 2021, and applies only to property taxes im-
al tax rate but not greater than the de minimis rate. If the posed for a tax year that begins on or after the effective date.
taxing unit adopts the proposed tax rate, the taxing unit is not
required to hold an election and the qualified voters of the of Section 26.1115
taxing unit may not petition to require an election to be held SB 8 (2nd CS) adds this section, “Calculation of Taxes on
to determine whether to reduce the proposed tax rate. Residence Homestead Generally,” to provide if an individual
receives a homestead exemption under Tax Code Section
Effective May 15, 2021, and applies only to a tax rate notice
11.13 as provided by Tax Code Section 11.42(f), for a portion
that is provided by a taxing unit on or after the effective date.
of a tax year, the tax exemption would be prorated based on
the portion of the year the owner qualified for the exemp-
Sections 26.07
tion on that homestead. The bill also requires the taxes be
SB 1438 amends subsection(b) to strike existing language re-
prorated should the exemptions terminate during the year in
grading increased expenditure for a disaster which was added
which the individual acquires the property. The bill specifies
to new Tax Code Section 26.042(d).
calculations for prorating the amount of taxes due depending
Effective June 16, 2021. on when the individual first qualified. The bill would require
the assessor for each taxing unit take certain actions depend-
Section 26.08 ing on the timing of the homestead exemption qualification
SB 1438 repeals subsection (a-1) relating to the calculation of and when taxes are calculated, tax bills mailed and paid.
a tax rate in a disaster area which was added to new Tax Code
Effective Jan. 1, 2022, and applies only to a residence home-
Section 26.042(e).
stead acquired on or after the effective date.
Effective June 16, 2021.

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 15
Section 26.175 the applicable federal income tax return or state
HB 2723 adds this section to require the Department of In- franchise tax report of the entity;
formation Resources (DIR) develop and maintain an easily – is located in a disaster area or emergency area;
accessible Internet website that lists each property tax da- and
tabase and includes a method to assist a property owner to – has not been damaged as a direct result of the
identify the appropriate property tax database for the owner’s disaster or emergency;
property. The bill requires that the Internet website provide • tangible personal property that is owned or leased by
a separate link to the Internet location of each property tax a business entity described by Subdivision (1)(A); and
database and the address of the Internet website be “Texas. • taxes that are imposed on the property by a taxing
gov/PropertyTaxes.” unit before the first anniversary of the disaster or
emergency.
Effective June 3, 2021, and DIR shall develop the required The bill authorizes the governing body of a taxing unit to
internet website not later than Jan. 1, 2022. authorize a person to pay property taxes in four equal install-
ments on real and tangible personal property not damaged by
Chapter 31. Collections a disaster if it is located in a disaster area or emergency area
Section 31.032 and owned or leased by a business entity with annual gross
SB 742 amends the title of this section to “Installment Pay- receipts under a specified threshold. The Comptroller shall
ments of Taxes on Property in Disaster Area or Emergency adopt rules to implement this section.
Area that has been Damaged as a Result of Disaster or Emer-
Effective June 7, 2021.
gency.” The bill amends subsection (a) to expand an install-
ment payment option for taxes on property located in an
Section 31.06
emergency or damaged as a direct result of the emergency.
SB 1764 amends subsection (a) to provide an exception to the
The bill amends subsection (g) to define “Emergency” as a
requirement of a tax collector to accept United States cur-
state of emergency proclaimed by the Governor under Gov-
rency or a check or money order in payment of taxes and to
ernment Code Section 433.001. The bill defines “Emergency
accept payment by credit card or electronic funds transfer.
area” to mean an area designated by the Governor to be af-
The bill adds subsection (e) to authorize a collector to adopt
fected by an emergency under Government Code Section
a written policy that requires payment of delinquent taxes,
433.001.
penalties, interest, and costs and expenses recoverable under
Effective June 7, 2021. Tax Code Section 33.48 only with United States currency,
a cashier’s check, a certified check, or an electronic funds
Section 31.033 transfer if the payment relates to personal property seized
SB 742 adds this section titled “Installment Payments of under Tax Code Chapter 33, Subchapter B, Seizure of Per-
Taxes on Property in Disaster Area or Emergency Area That sonal Property; property subject to an order of sale under Tax
Has Not Been Damaged as a Result of Disaster or Emergen- Code Chapter 33, Subchapter C, Delinquent Tax Suits; or real
cy.” The bill defines “disaster,” “disaster area,” “emergency,” property seized under Tax Code Chapter 33, Subchapter E,
and “emergency area” to have the meanings assigned by Tax Seizure of Real Property.
Code Section 31.032(g). The bill provides that this section
Effective June 16, 2021.
applies only to:

• real property that: Section 31.11

– is owned or leased by a business entity that had HB 988 amends subsection (h) to provide that Tax Code Sec-
not more than the amount calculated as provid- tion 31.11, Refunds of Overpayments or Erroneous Payments,
ed by Tax Code Section 31.032(h) (relating to a does not apply to an overpayment caused by a change of ex-
certain limit on gross receipts) in gross receipts emption status or correction of a tax roll, including an over-
in the entity’s most recent federal tax year or payment received after a correction of a tax roll as a result of
state franchise tax annual period, according to an appeal under Tax Code Chapter 42.

Effective Jan. 1, 2022.

16 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
Chapter 33. Delinquency Section 33.25
HB 533 amends subsections (a) and (b) to remove the county
Section 33.06 population limitation for counties that may have someone
HB 3629 amends subsection(b) to prohibit a taxing unit from other than a peace officer advertise and conduct personal
filing suit to collect delinquent taxes on a property and the property auction tax sales, including online bidding and sale.
property is prohibited from being sold at a sale to foreclose
the tax lien until the 181st day after the date the collector Effective Sept. 1, 2021 and applies only to an ad valorem tax
for the taxing unit delivers a notice of delinquency of the sale of personal property seized under a tax warrant issued
taxes following the date the individual no longer owns and on or after the effective date.
occupies the property as a residence homestead, rather than
the 181st day after the date the individual no longer owns Chapter 41. Local Review
and occupies the property as a residence homestead. The bill
Section 41.01
amends subsection (c) to require the court abate a suit until
HB 988 adds subsections (c), (d) and (e) to require an ap-
the 181st day after the date the collector for the taxing unit
praisal review board adopt hearing procedures by rule. Be-
delivers a notice of delinquency of the taxes following the
fore adopting the hearing procedures, the board must hold
date the individual no longer owns and occupies the property
a public hearing not later than May 15 to consider the hear-
as a residence homestead, rather than the 181st day after the
ing procedures proposed for adoption. The bill requires the
date the individual no longer owns and occupies the prop-
appraisal review board to comply with Tax Code Section
erty as a residence homestead. Subsection (c-1) is amended
5.103(d) when adopting hearing procedures and provides that
to prohibit property from being sold at a tax sale until the
the chairman is responsible for the administration of hearing
181st day after the date the collector for the taxing unit deliv-
procedures. The appraisal review board must distribute cop-
ers a notice of delinquency of the taxes following the date
ies of the hearing procedures to the appraisal district board of
the individual no longer owns and occupies the property as
directors, the appraisal district’s taxpayer liaison officer and
a residence homestead, rather than the 181st day after the
the Comptroller not later than the 15th day after the date the
date the individual no longer owns and occupies the property
hearing procedures are adopted. The adopted hearing proce-
as a residence homestead. The bill amends subsection (f) to
dures must be posted in a prominent place in each room in
provide that if an individual qualifies for a deferral or abate-
which hearings are conducted and on the appraisal district’s
ment of collection of taxes on property provided by this sec-
website if the appraisal district maintains one.
tion dies, notwithstanding the other provisions, the deferral
or abatement continues in effect until the 181st day after the Effective June 15, 2021.
date the collector for the taxing unit delivers a notice of delin-
quency of the taxes following the date the surviving spouse Section 41.413
of the individual no longer owns and occupies the property SB 1088 and SB 1421 amend subsections (d) and (e) to clar-
as a residence homestead under certain circumstances, rather ify that lessees of real property contractually obligated to re-
than the 181st day after the date the surviving spouse of the imburse the property owner for taxes are entitled to receive
individual no longer owns and occupies the property as a notice of appraised value.
residence homestead under certain circumstances.
Effective Sept. 1, 2021, and applies only to a notice of ap-
Effective Sept. 1, 2021. praised value received by a property owner on or after the
effective date.
Section 33.08
SB 742 amends subsection (b) to provide that taxes that be- Section 41.44
come delinquent on or after June 1 under Tax Code Section HB 988 amends subsection (d) to require a notice of protest
31.033 incur an additional penalty to defray collection costs if form to permit a property owner to request that the protest
provided by the governing body of a taxing unit or appraisal be heard by a single-member panel authorized by Tax Code
district. Section 41.45(b-4).

Effective June 7, 2021. Effective Jan. 1, 2022.

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 17
SB 63 amends subsection (d) to require a notice of protest Effective Jan. 1, 2022, and applies only to a protest under
form permit a property owner who believes that the owner’s Tax Code Chapter 41 for which a notice of protest is filed by
property was appraised at a value that exceeds its appraised a property owner on or after Jan. 1, 2022.
value, was appraised unequally, or both, to select a single box
SB 1919 amends subsections (b), (b-1), (b-2), (b-3), and (n) to
to indicate that the owner is filing a protest for either or both
allow a property owner to appear at appraisal review board
reasons if the form includes boxes a property owner is re-
hearings by videoconference. The bill adds subsection (b-4)
quired to select to indicate the reason for filing a protest.
to provide that an appraisal review board established for a
Effective Sept. 1, 2021. county with a population of less than 100,000 and that lacks
the technological capability to conduct a videoconference is
Section 41.445 not required to conduct a hearing by videoconference.
HB 988 adds this section to require the appraisal office hold
an informal conference with each property owner who files Effective Sept. 1, 2021, the changes in law made by this bill
a notice of protest with the appraisal review board and re- apply only to a protest under Tax Code Chapter 41for which
quests an informal conference. An informal conference must a notice of protest was filed by a property owner on or after
be held before the hearing on the protest. the effective date of this bill.

Effective Jan. 1, 2022 and applies only to a protest under Tax Section 41.46
Code Chapter 41 for which a notice of protest is filed by a SB 63 adds subsection (f) to require that an appraisal review
property owner on or after Jan. 1, 2022. board in counties with a population of 120,000 or more, send
an electronic reminder by email or text stating the date, time
Section 41.45 and place of a protest hearing upon written request of a prop-
SB 63 amends subsection (a) to require an appraisal review erty owner. The board must deliver the electronic reminder to
board to schedule a protest hearing to be held as soon as prac- the property owner not earlier than the 7th day after deliver-
ticable but not later than the 90th day after approval of the ing the notice of protest hearing and not later than one day
appraisal records. before the date of the protest hearing.

Effective Sept. 1, 2021, and applies only to a protest for which Effective Sept. 1, 2021, and applies only to a protest for which
the notice of protest was filed on or after the effective date. the notice of protest was filed on or after the effective date.

HB 988 amends subsection (b-1) to strike the provision re- Section 41.461
quiring an appraisal review board conduct a hearing on a HB 988 amends subsection (a) to require the chief appraiser
protest by telephone conference call if the appraisal review deliver a copy of the hearing procedures adopted by the ap-
board proposes that the hearing be conducted by telephone praisal review board under Tax Code Section 41.01 to the
conference call. The bill adds subsections (b-4) and (b-5) property owner at least 14 days before a hearing on a protest.
to require a protest be heard by a single-member panel on
request of the property owner and to provide that if the rec- Effective June 15, 2021.
ommendation of a single-member panel is not accepted by
the board, the board may refer the matter for rehearing to a Section 41.47
different single-member panel or the board may determine HB 988 amends subsection (c) to require an appraisal review
the protest. The bill amends subsections (d), (d-2), and (d-3) to board determination of value list separately the value of the
provide that subsection (d) does not apply to a single-member land and improvements. The bill adds subsection (d-1) to
panel established under subsection (b-4) of this section. The specify the following additional requirements for appraisal
bill requires the appraisal review board make a determina- districts established in counties with a population of 120,000
tion of a protest heard by a single-member panel and to de- or more. The bill requires the chief appraiser, on written re-
liver notice of a hearing or meeting to determine a protest quest, to deliver by email a copy of the notice of issuance
heard by a single-member panel, or to rehear a protest. of the order and a copy of the order of determination if the
property subject to the order is not the subject of an agree-
ment under Tax Code Section 1.085. The request can only be

18 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
submitted by the property owner, an attorney representing Chapter 41A. Appeal Through Binding
the property owner, or an individual designated by the prop-
Arbitration
erty owner. The request must be submitted before the protest
hearing relating to each property included in the request and Section 41A.015
the chief appraiser must deliver a copy of the notice of issu- HB 988 adds this section to authorize a property owner who
ance of the order and a copy of the order of determination has filed a notice of protest to file a request for limited bind-
not later than the 21st day after the date the appraisal review ing arbitration to compel the appraisal review board or chief
board issues the order. appraiser take certain action to compel the appraisal review
board or chief appraiser, as appropriate, to:
Effective Jan. 1, 2022, and applies only to a protest under
Tax Code Chapter 41for which a notice of protest is filed by (1) rescind procedural rules adopted that are not in com-
a property owner on or after Jan.1, 2022. pliance with the Comptroller’s model hearing proce-
dures prepared under Tax Code Section 5.103;
Section 41.66 (2) schedule a hearing on a protest as required by Tax
HB 988 amends subsection (a) to require the appraisal review Code Section 41.45;
board conduct hearings in accordance with the adopted hear- (3) deliver information to the property owner in the man-
ing procedures. The bill adds subsection (q) to authorize a ner required by Tax Code Section 41.461;
property owner or chief appraiser to file a complaint with the (4) allow the property owner to offer evidence, exam-
appraisal district’s taxpayer liaison officer alleging that the ine or cross-examine witnesses or other parties and
appraisal review board adopted or is implementing hearing present arguments as required by Tax Code Section
procedures that are not in compliance with the Comptroller’s 41.66(b);
model hearing procedures or not complying with Tax Code (5) set a hearing for a time and date certain and postpone
Chapter 41 procedural requirements. The bill requires the a hearing that does not begin within two hours of
taxpayer liaison officer to investigate the complaint and re- the scheduled time as required by Section Tax Code
port the findings of the investigation to the appraisal district 41.66(i);
board of directors. If the board determines the allegations (6) schedule hearings on protests concerning multiple
in the complaint are true after reviewing the taxpayer liai- properties identified in the same notice of protest on
son’s report, the board of directors is to direct the chairman the same day at the request of the property owner or
of the appraisal review board take remedial action. The bill the property owner’s designated agent as required by
authorizes the board of directors to remove the appraisal re- Tax Code Section 41.66(j) or
view board member serving as chairman from the chairman (7) refrain from using or offering as evidence informa-
position if the board determines that the chairman failed to tion requested by the property owner under Tax Code
take actions necessary to bring the appraisal review board Section 41.461 that was not delivered to the property
into compliance with Tax Code Section 5.103(d) or Tax Code owner at least 14 days before the hearing as required
Chapter 41, as applicable. by Tax Code Section 41.67(d).

Effective June 15, 2021. The bill prohibits a property owner from filing a request for
limited binding arbitration unless:
Section 41.67
SB 63 adds subsection (e) to prohibit a chief appraiser from (1) the property owner has delivered written notice to the
offering evidence or argument in support of a reason for appraisal review board chairman, the chief appraiser
modifying or denying an exemption or special appraisal ap- and the appraisal district’s taxpayer liaison officer by
plication other than a reason stated in the notice delivered to certified mail, return receipt requested, of the procedur-
the applicant unless certain criteria are met. al requirement with which the property owner alleges
the appraisal review board or chief appraiser failed to
Effective Sept. 1, 2021, and applies only to a protest for which comply on or before the fifth business day after the date
the notice of protest was filed on or after the effective date. the appraisal review board or chief appraiser was re-
quired to comply with the requirement; and

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 19
 (2) the appraisal review board chairman or chief apprais- appraisal review board or chief appraiser, as appli-
er, as applicable, fails to deliver to the property owner cable, has failed to comply;
on or before the 10th day after the date the notice is (4) a description of the action taken or not taken by the
delivered a written statement confirming that the ap- appraisal review board or chief appraiser regarding
praisal review board or chief appraiser will comply the procedural requirement;
with the requirement or cure a failure to comply with (5) a description of the property to which the award will
the requirement. apply; and
(6) any other information reasonably necessary for the
Except as otherwise provided by Subtitle F, the failure to Comptroller to appoint an arbitrator.
comply with a procedural requirement listed under Subsec-
tion (a) is not a ground for postponement of a protest hearing. The bill requires the Comptroller, on receipt of the request
The appraisal review board is authorized to cure an alleged and deposit, to appoint an arbitrator from the arbitrator regis-
failure to comply with a procedural requirement that oc- try who is an eligible licensed attorney. The bill provides that
curred during a hearing by rescinding the order determining the appraisal review board, the chief appraiser and the prop-
the protest for which the hearing was held and scheduling a erty owner are parties to the limited binding arbitration and
new hearing on the protest. A property owner is required to authorizes the appraisal review board to appear by counsel,
request limited binding arbitration by filing a request with chairman or a person designated by the chairman. The chief
the Comptroller. The property owner is prohibited from fil- appraiser may appear by counsel, in person or by a desig-
ing the request earlier than the 11th day or later than the 30th nated employee, and the property owner may appear in the
day after the date the property owner delivers the notice of manner provided by certain subsections.
the alleged violation to the appraisal review board chairman,
The bill requires the arbitrator to make an arbitration award
the chief appraiser, and the taxpayer liaison officer for the
and deliver an electronic copy of it to the property owner,
applicable appraisal district.
the appraisal review board chairman, the chief appraiser and
The bill requires a request for limited binding arbitration be the Comptroller. The bill provides that an award under this
in a Comptroller-prescribed form and be accompanied by an section:
arbitration deposit payable to the comptroller in the amount of:
(1) must include a determination of whether the ARB or
(1) $450, if the property that is the subject of the protest chief appraiser failed to comply with a procedural re-
to which the arbitration relates qualifies as the prop- quirement as alleged in the limited binding arbitration
erty owner’s residence homestead under Tax Code request;
Section 11.13 (Residence Homestead) and the ap- (2) if the arbitrator determines that the appraisal review
praised or market value, as applicable, of the property board or chief appraiser failed to comply with a pro-
is $500,000 or less, as determined by the appraisal cedural requirement as the request alleged, to the
district for the most recent tax year; or arbitrator must direct the appraisal review board or
(2) $550, for property other than property described by chief appraiser, as applicable, to comply with the pro-
Subdivision (1). cedural requirement, or, if the hearing on the protest
has been held and the appraisal review board has is-
The bill requires the Comptroller’s office to prescribe the sued an order determining the protest, the arbitrator
limited binding arbitration request form and that the form must direct the appraisal review board to rescind the
require the property owner to provide: order and hold a new hearing on the protest that com-
(1) a statement that the property owner has provided the plies with the procedural requirement;
required written notice of violation; (3) is required to specify the arbitrator’s fee;
(2) a statement that the property owner has made the re- (4) is final and is prohibited from being appealed; and
quired arbitration deposit; (5) is enforceable as provided by Tax Code Section
(3) a brief statement identifying the procedural require- 41A.09 (Award; Payment of Arbitrator’s Fee).
ment with which the property owner alleges the

20 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
The bill provides that, if the arbitrator determines that the ap- is required to agree to conduct an arbitration for a fee that is
praisal review board or chief appraiser failed to comply with not more than $400 if the property qualifies as the property
the procedural requirement that was the subject of the limited owner’s residence homestead and the appraised or market
binding arbitration: value of the property is $500,000 or less or $500 if the prop-
erty subject to the arbitration is for any other type property.
(1) the comptroller, on receipt of a copy of the award, Except as otherwise provided, the provisions of this chapter
must refund the property owner’s arbitration deposit, apply to a limited binding arbitration under this section. In
less the Comptroller’s $50 administration fee (relat- the event of a conflict between this section and another provi-
ing to authorizing the comptroller to retain $50 of sion of this chapter, this section controls.
the property owner’s arbitration deposit to cover the
comptroller’s administrative costs); and Effective June 15, 2021.
(2) the appraisal district must pay the arbitrator’s fee.
Section 41A.10
The bill requires the Comptroller pay the arbitrator’s fee out SB 1854 and HB 988 amend subsection (a) to create an ex-
of the owner’s arbitration deposit and to refund to the owner ception to the requirement that a property owner pay certain
the owner’s arbitration deposit, less the arbitrator’s fee and taxes on property subject to appeal for a property owner who
the Comptroller’s $50 administration fee, if the arbitrator de- has elected to defer the collection of taxes under Tax Code
termines that the appraisal review board or chief appraiser Section 33.06 or 33.065 and for which the deferral is still in
complied with the procedural requirement that was the sub- effect. The bills add subsection (c) to provide that, for the
ject of the limited binding arbitration. purposes of a property owner from filing an appeal through
The appraisal review board or the chief appraiser, as soon as binding arbitration, taxes are not considered delinquent on
practicable after receiving notice of an award, must take any property subject to an appeal if the property owner has elect-
action required to comply with the requirements of the award, ed to defer the collection of taxes on the property under Tax
and, if the award requires the appraisal review board to con- Code Section 33.06 or 33.065 and the deferral is still in effect.
duct a new hearing, to schedule and conduct the hearing. Effective Sept. 1, 2021. The changes in law made by this bill
An award under this section does not affect the property apply only to a request for binding arbitration under Tax
owner’s right to appeal the final determination of a protest Code Chapter 41A, that is filed on or after the effective date
by the appraisal review board under Tax Code Chapter 42 or of this bill. (SB 1854) Effective Jan. 1, 2022, and applies only
to pursue any other legal or statutory remedy available to the to a request for binding arbitration under Tax Code Chapter
property owner. 41A that is filed on or after the effective date. (HB 988)

A property owner may request a single limited binding ar- Chapter 42. Judicial Review
bitration that covers more than one property, more than one
protest hearing or an allegation of the failure by the appraisal
Section 42.015
HB 988 amends subsection (a) to provide that a person leas-
review board or chief appraiser to comply with more than one
ing property who is contractually obligated to reimburse the
procedural requirement so long as the filing requirements are
property owner for property taxes is entitled to appeal an ap-
met for each alleged failure to comply. The arbitration depos-
praisal review board order determining a protest relating to
it amount and the arbitrator’s fee are computed as if a single
the property brought by the property owner if the property
property were the subject of the arbitration. If the arbitration
owner does not appeal the order.
involves an allegation of the failure by the appraisal review
board or chief appraiser to comply with procedural require- Effective June 15, 2021, and applies to an appeal under Tax
ments, the bill requires the appraisal review board to come Code Chapter 42 that is pending on the date the amendments
into compliance or, if an order was already issued, rescind to those sections take effect under this bill or that is filed on
the order and hold a new hearing. The bill specifies that Tax or after that date.
Code Section 41A.06 applies to the registration and qualifica-
tion of an arbitrator under this section except that an arbitra-
tor under this section is required to be a licensed attorney and

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 21
Section 42.23 16.061, with respect to any property purchased, leased, con-
HB 988 amends subsection (e) to prohibit a court from enter- structed, renovated, or improved with state funds under Edu-
ing an order that conflicts with Tax Code Section 42.23(d), re- cation Code Section 12.128; and a political subdivision for
lating to each party to an appeal of an appraisal review board purposes of Tax Code Section 11.11.
order being considered a party seeking affirmative relief for
Effective Sept. 1, 2021, and applies only to taxes imposed
the purpose of discovery regarding expert witnesses, includ-
for a tax year beginning on or after the effective date. An
ing a protective order under Rule 192.6 of the Texas Rules of
amendment to the Texas Constitution, Article VIII, was
Civil Procedure.
not proposed or passed by the 87th Texas Legislature.
Effective June 15, 2021, and applies to an appeal under Tax
Code Chapter 42 that is pending on the date the amendments Section 12.128
to those sections take effect under this bill or that is filed on HB 3610 amends subsection (a) to provide property pur-
or after that date. chased with funds received by a charter holder under Educa-
tion Code Section 12.106 is exempt from ad valorem taxation
Chapter 312. Property Redevelopment as provided by Tax Code Section 11.11. The bill amends sub-
and Tax Abatement Act section (a-1) to provide property leased with funds received
by a charter holder under Education Code Section 12.106 is
Section 312.005 exempt from ad valorem taxation as provided by Tax Code
SB 1257 amends subsection (a) to require the report deliv- Section 11.11. The bill adds subsection (a-2) to require the
ered by the chief appraiser of an appraisal district to the owner of property that receives a tax exemption under Sub-
Comptroller list, for each tax abatement agreement to which section (a) transfer the amount of tax savings from the exemp-
a taxing unit participating in the appraisal district is a party, tion to the tenant or reduce the common area maintenance fee
the kind, number, and location of all improvements subject to in a proportionate amount based upon the square footage of
the agreement. the exempt portion of the property.

Effective Sept. 1, 2021. Effective Sept. 1, 2021, and applies only to taxes imposed
for a tax year beginning on or after the effective date. An
amendment to the Texas Constitution, Article VIII, was
Civil Practice and not proposed or passed by the 87th Texas Legislature.

Remedies Code Section 44.004

HB 2723 amends subsection (c) to require that the notice for
Sections 150C.001 and 150C.002, Chapter a public meeting state “Visit Texas.gov/PropertyTaxes to find
150C a link to your local property tax database on which you can
HB 1493 adds this chapter to define “governmental unit” and easily access information regarding your property taxes, in-
authorize a governmental unit to enjoin another person’s use cluding information about proposed tax rates and scheduled
of an entity name that falsely implies governmental affilia- public hearings of each entity that taxes your property.”
tion with the governmental unit.
Effective June 3, 2021, and applies only to a notice required
Effective Sept. 1, 2021. to be delivered for a property tax year that begins on or after
Jan. 1, 2022.

Education Code Section 45.0021

HB 1525 amends subsection (a) to restrict a school district
Section 12.1058 from levying (rather than increase the rate of) the district’s
HB 3610 amends subsection (a) to provide an open-enroll- maintenance and operations tax rate at a rate intended to cre-
ment charter school is considered to be a political subdivision ate a surplus in maintenance and operations tax revenue for
for purposes of Civil Practice and Remedies Code Section the purpose of paying the district’s debt service. The bill adds

22 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
subsection (c) to require TEA develop a method to identify Section 46.071
school districts that may have adopted a maintenance tax SB 1 (3rd CS) amends subsection (a) and adds subsection
rate in violation of subsection (a), and include a review of (a-1) to provide additional state aid to school districts to the
data over multiple years; investigate to determine whether extent that a district’s combined state and local revenue used
the district adopted a maintenance tax rate in violation, and to service eligible debt after the increased homestead ex-
specifies certain actions TEA must take when a school dis- emption would be less than the state and local revenue that
trict is in violation. The bill adds subsection (d) to specify would have been available for debt service had the homestead
the implementation of a corrective action plan does not pro- exemption not increased. The bill adds subsection (b-1) to
hibit a school district from increasing the district’s total tax provide beginning with the 2022-23 school year additional
rate as necessary to achieve other legal purposes. If a school state aid is equal to the amount which the loss of local inter-
district fails to take action under a corrective action plan, est and sinking revenue for debt service attributable to the
added subsection (e) authorizes the commissioner to reduce increased homestead exemption is not offset by a gain in state
the district’s entitlement under Education Code Chapter 48, aid. Subsection (c-1) is added to specify eligible local interest
Foundation School Program. The bill adds subsection (f) to and sinking revenue required to service debt for purpose of
provide the bill does not prohibit a school district from using determining state aid.
a surplus in maintenance tax revenue to pay the district’s debt
service under certain conditions. Effective May 7, 2022, contingent on voter approval of SJR 2
(3rd CS), and applies beginning with the 2022 tax year.
Effective Sept. 1, 2021, and applies only to a tax rate adopted
on or after the effective date. Section 48.202
SB 1438 amends subsection (f) to update a reference to Tax
Section 45.0032 Code Section 26.042(e), calculation and adoption of certain
SB 1438 amends subsection (d) to update references that for tax rates in disaster area.
a school district to which Tax Code Section 26.042(e) (rather
than Section 26.08(a-1)) applies, the amount by which the Effective June 16, 2021.
district’s maintenance tax rate exceeds the district’s voter-ap-
proval tax rate, excluding the district’s current debt rate under Section 48.2541
Tax Code Section 26.08(n)(3) (rather than Section 26.08(n)(1) SB 8 (2nd CS) adds this section, “Additional State Aid for
(C)) for the preceding year is not considered in determining a Certain Ad Valorem Tax Refunds” to provide school districts
district’s tier one maintenance and operations tax rate or the additional state aid in an amount equal to the amount of all
district’s enrichment tax rate for the current tax year. tax refunds provided under Tax Code Section 26.1115(c).

Effective June 16, 2021. Effective Jan. 1, 2022, and applies only to a residence home-
stead acquired on or after the effective date.
Section 45.351
HB 1133 adds this section to provide that this subchapter ap- Section 48.2542
plies only to a county with a population of more than 40,000 SB 12 (2nd CS) adds this section, “Additional State Aid For
but less than 55,000, and for which a county equalization tax Adjustment of Limitation on Tax Increases on Homestead of
was adopted under former Education Code Chapter 18 as that Elderly or Disabled” to provide school districts additional
chapter existed on May 1, 1995, and continues in effect un- state aid to the extent state aid under the current funding for-
der Education Code Section 11.301. The bill authorizes the mulas does not fully reimburse them for property tax revenue
commissioners court of a county to which this subchapter losses resulting from reductions in tax ceilings.
applies to order an election on the question of revoking the
Effective Jan. 1, 2023, contingent on voter approval of SJR
county equalization tax, in accordance with former Educa-
2 (2nd CS), and applies only to a tax year beginning on or
tion Code Section 18.11 and other applicable provisions of
after the effective date.
former Chapter 18, as that chapter existed on May 1, 1995,
that continues in effect under Education Code Section 11.301.

Effective June 4, 2021.

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 23
Section 48.2543 district make required calculations. The bill requires TEA post
SB 1 (3rd CS) adds this section to provide additional state each school district’s maximum compressed rate for each tax
aid to school districts the extent that combined state and lo- year beginning with 2019 and each school district’s tier one
cal revenues for maintenance and operations (M&O) with maintenance and operations tax rate for the 2018 tax year. The
the increased homestead exemption would be less than the bill specifies other requirements for posting.
district’s combined state and local revenue for M&O had the
Effective Jan. 1, 2023, contingent on voter approval of SJR 2
homestead exemption not increased.
(2nd CS), and applies only to a tax year beginning on or after
Effective May 7, 2022, contingent on voter approval of SJR 2 the effective date.
(3rd CS), and applies beginning with the 2022 tax year.
Section 48.2721
Section 48.2551 HB 1525 adds this section to require the commissioner to re-
HB 1525 amends subsection (a) to define “DPV” as the tax- duce state aid or adjust the limit on local revenue under Edu-
able value of property in the school district, as determined cation Code Section 48.257 in an amount equal to the amount
by the agency by rule, using locally determined property val- of revenue generated by a school district’s tax effort that is
ues adjusted in accordance with Government Code Section not in compliance with Education Code Section 45.003, Bond
403.302(d). The bill amends subsection (c) to provide that, for and Tax Elections or Education Code Chapter 48.
a school district with a maximum compressed rate less than 90
Effective Sept. 1, 2021.
percent of another school district’s maximum compressed rate
the district’s maximum compressed rate is the value calculated
in accordance with Education Code Section 48.2552(b), rather
than the value calculated for “MCR” under Subsection (b)(1)
Election Code
(B). Added subsection (d-1) requires local appraisal districts,
Section 13.004
school districts, and the Comptroller to provide any informa-
SB 1134 reenacts and amends subsection (c) as amended by
tion necessary to TEA for implementation. The bill adds sub-
Chapters 469 (H.B. 4173), 489 (H.B. 3100), and 1146 (H.B.
section (d-2) to authorize a school district to appeal to the com-
2910), Acts of the 86th Legislature, Regular Session, 2019,
missioner the district’s taxable property value as determined
and expands the information furnished on a voter registration
by TEA under this section. Provides that a decision by the
application excepted from the open record requirements of
commissioner is final and is prohibited from being appealed.
Government Code Section 552 to include:
Effective Sept. 1, 2021.
• the residence address of the applicant, if the applicant
is a certain judge or federal official, including a fed-
Section 48.2552
eral bankruptcy judge, a marshal of the United States
HB 1525 amends subsection (b) to specify if a school dis-
Marshals Service, a United States attorney, or a family
trict’s maximum compressed rate as calculated under Educa-
member, rather than the spouse, of a certain judge or
tion Code Section 48.2551(b) would be less than 90 percent
federal official, including a federal bankruptcy judge,
of another school district’s maximum compressed rate, the
a marshal of the United States Marshals Service, a
district’s maximum compressed rate is the value at which the
United States attorney, or an individual to whom Gov-
district’s maximum compressed rate would be equal to 90
ernment Code Section 552.1175 (Exception: Confiden-
percent of the other district’s maximum compressed rate.
tiality of Certain Personal Identifying Information of
Effective Sept. 1, 2021. Peace Officers and Other Officials Performing Sensi-
tive Governmental Functions), or Transportation Code
Section 48.2556 Section 521.1211 (Driver’s License for Peace Officer),
SB 12 (2nd CS) adds this section “Posting on Agency Website applies and the applicant:
of Information related to Reduction of Limitation of Tax on • included an affidavit with the registration application
Homesteads of Elderly or Disabled,” to assist the chief apprais- describing the applicant’s status under this subdivision,
er of each appraisal district and the assessor for each school if the applicant is a certain judge or federal official,

24 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
 including a federal bankruptcy judge, a marshal of the productivity value of qualified open-spaced land the Comp-
United States Marshals Service, a United States at- troller conducts as part of the school district property value
torney, or a family member, rather than the spouse, of study. The Comptroller is directed to prepare and publish an
a certain judge or federal official, including a federal instructional guide to assist individuals in completing the
bankruptcy judge, a marshal of the United States Mar- farm and ranch survey including definitions, instructions,
shals Service, a United States attorney, or a state judge; examples, and other information. The Comptroller must con-
• provided the registrar with an affidavit describing the duct an informational session open to the public on how to
applicant’s status under this subdivision, if the appli- complete the survey and post a recording of the training on
cant is a certain judge or federal official, including the website. The bill provides that the Comptroller shall so-
a federal bankruptcy judge, a marshal of the United licit comments from the public and the Property Tax Admin-
States Marshals Service, a United States attorney, or istration Advisory Board at least once a year to determine
a family member, rather than the spouse, of a certain the ease and understandability of the survey and to ensure
judge or federal official, including a federal bankrupt- questions are designed to generate reliable answers. The bill
cy judge, a marshal of the United States Marshals Ser- requires the chief appraiser of each appraisal district distrib-
vice, a United States attorney; ute the farm and ranch survey manual to the agricultural ad-
visory board for the appraisal district. The Comptroller must
The bill adds subsection (f) to provide “family member” has distribute the guide to survey recipients and provide informa-
the meaning assigned by Finance Code Section 31.006. tion on how to access the informational session.
Effective Sept. 1, 2021. Effective Sept. 1, 2021.

Government Code Section 411.1296

HB 2491 amends subsection (c) to specify an appraisal dis-
trict may provide criminal history record information to the
Section 403.0241 local administrative district judge or to the appraisal review
HB 1154 amends subsection (c) to require the Special Pur- board commissioners appointed by the local administrative
pose District Public Information Database maintained by the district judge for all members of an appraisal review board.
Comptroller, to include the address of any Internet website or
websites the district uses to comply with Government Code Effective June 7, 2021.
Section 2051.202 or Tax Code Section 26.18 if a district does
not maintain an Internet website. Section 551.001
SB 244 amends subdivision (3) to include a board of directors
Effective Sept. 1, 2021. of a reinvestment zone created under Tax Code Chapter 311
(Tax Increment Financing Act), in the definition of “govern-
Section 403.302 mental body” for the purposes of Government Code Chapter
SB 12 (2nd CS) adds subsection (j-1) to require the Comp- 551.
troller separately identify the final taxable value for each
school district to account for the reduction in tax ceilings Effective Sept. 1, 2021.
provided by Tax Code Sections 11.26 (a-4), (a-5), (a-6), (a-7),
(a-8), (a-9), and (a-10) in the school district property value Section 551.1283
study conducted by the Comptroller. HB 1154 adds subsection (d) to require a district that main-
tains an Internet website to post links on that website to any
Effective Jan. 1, 2023, contingent on voter approval of SJR other Internet website or websites the district uses to comply
2 (2nd CS), and applies only to a tax year beginning on or with Government Code Section 2051.202 or Tax Code Sec-
after the effective date. tion 26.18, Tax Code. The bill adds subsection (e) to provide
that nothing in Government Code Chapter 551, Open Meet-
Section 403.3022 ings, prohibit a district from allowing a person to watch or
SB 1245 adds this section titled “Farm and Ranch Survey” to listen to a board meeting by video or telephone conference
codify the annual farm and ranch survey for estimating the

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 25
call. This section only applies to a special purpose district defender and the spouse or child of the current or for-
subject to Water Code Chapter 51, 53, 54, or 55 that has a mer attorney or public defender, regardless of whether
population of 500 or more. the person complies with Section 552.024 or 552.1175;
(SB 56)
Effective Sept. 1, 2021. • a current or honorably retired peace officer as defined
by Article 2.12, Code of Criminal Procedure, or a cur-
Section 552.003 rent or honorably retired security officer commissioned
SB 841 adds subdivision (1-b) to provide “Honorably retired”
under Section 51.212, Education Code regardless of
means, with respect to a position, an individual who:
whether the officer complies with Section 552.024 or
(A) previously served but is not currently serving in the 552.1175, as applicable (SB 841)
position; • a current or former federal judge or state judge, as
(B) did not retire in lieu of any disciplinary action; those terms are defined by Election Code Section
(C) was eligible to retire from the position or was ineli- 1.005, a federal bankruptcy judge, a marshal of the
gible to retire only as a result of an injury received United States Marshals Service, a United States attor-
in the course of the individual’s employment in the ney, or a family member of a current or former federal
position; and judge, including a federal bankruptcy judge, a marshal
(D) is eligible to receive a pension or annuity for service of the United States Marshals Service, a United States
in the position or is ineligible to receive a pension or attorney (SB 1134)
annuity only because the entity that employed the
SB 1134 amends subsection (c) to provide “family member”
individual does not offer a pension or annuity to its
has the meaning assigned by Finance Code Section 31.006.
employees.
Effective May 19, 2021, (HB 1082) the changes in law made
Effective June 14, 2021, the change in law made by this bill
by this bill apply only to a request for information that is
applies only to a request for information that is received
received by a governmental body or an officer on or after the
by a governmental body or an officer on or after the effec-
effective date, and to the extent of any conflict, this bill pre-
tive date. To the extent of any conflict, this bill prevails over
vails over another bill of the 87th Legislature, Regular Ses-
another bill of the 87th Legislature, Regular Session, 2021,
sion, 2021, relating to nonsubstantive additions to and cor-
relating to nonsubstantive additions to and corrections in
rections in enacted codes. Effective June 14, 2021, (SB 56)
enacted codes.
(SB 841) the changes in law made by this bill apply only to
a request for information that is received by a governmental
Section 552.117 body or an officer on or after the effective date, and to the
HB 1082, SB 56, SB 841, SB 1134 reenact this section as
extent of any conflict, this bill prevails over another bill of
amended by Chapters 367 (H.B. 1351), 633 (S.B. 1494), 1146
the 87th Legislature, Regular Session, 2021, relating to non-
(H.B. 2910), 1213 (S.B. 662), and 1245 (H.B. 2446), Acts of
substantive additions to and corrections in enacted codes.
the 86th Legislature, Regular Session, 2019, and amend sub-
Effective Sept. 1, 2021, (SB 1134)
section (a) to modify the individuals for whom information
related to the home address, home telephone number, emer-
Section 552.1175
gency contact information, social security number; or infor-
HB 1082, SB 56, SB 841 reenact Chapters 367 (H.B. 1351),
mation that reveals whether the person has family members, is
633 (S.B. 1494), 1146 (H.B. 2910), 1213 (S.B. 662), and 1245
excepted from the open record requirements of Government
(H.B. 2446), Acts of the 86th Legislature, Regular Session,
Code Section 552.021 (Availability of Public Information):
2019 and amends subsection (a) to add to the list of individu-
• an elected public officer, rather than a state officer als for whom information related to the home address, home
elected statewide or a member of the legislature (HB telephone number, emergency contact information, date of
1082) birth, social security number, or reveals family members is
• a current or former United States attorney, assistant confidential if the individual chooses to restrict public ac-
United States attorney, federal public defender, depu- cess and notifies the governmental body of the choice on a
ty federal public defender, or assistant federal public

26 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
form provided by the governmental body accompanied by Section 552.2211
evidence of the individual’s status: SB 1225 adds this section to require that, except as provided
by Section 552.233, if a governmental body closes its physi-
• an elected public officer (HB 1082)
cal offices, but requires staff to work, including remotely, it
• a current or former United States attorney, assistant
make a good faith effort to continue responding to applica-
United States attorney, federal public defender, deputy
tions for public information, to the extent staff have access to
federal public defender, or assistant federal public de-
public information responsive to an application, pursuant to
fender (SB 56)
this chapter while its administrative offices are closed.
• current or honorably retired peace officers as defined
by Article 2.12, Code of Criminal Procedure, or spe- Effective Sept. 1, 2021.
cial investigators as described by Article 2.122, Code
of Criminal Procedure; (SB 841) Section 552.233
• current or honorably retired county jailers as defined SB 1225 amends Government Code Section 552.233, as add-
by Section 1701.001, Occupations Code; (SB 841) ed by Chapter 462 (S.B. 494), Acts of the 86th Legislature,
• current or honorably retired police officers and inspec- Regular Session, 2019, to provide that “catastrophe” means a
tors of the United States Federal Protective Service condition or occurrence that directly interferes with the abil-
(SB 841) ity of a governmental body to comply with certain require-
ments of Government Code Chapter 552, Public Information.
Effective May 19, 2021, (HB 1082) the changes in law made
The bill specifies “catastrophe” does not mean a period when
by this bill apply only to a request for information that is
staff is required to work remotely and can access information
received by a governmental body or an officer on or after the
responsive to an application for information electronically,
effective date, and to the extent of any conflict, this bill pre-
but the physical office of the governmental body is closed.
vails over another bill of the 87th Legislature, Regular Ses-
The bill exempts a governmental body from certain provi-
sion, 2021, relating to nonsubstantive additions to and cor-
sions of Chapter 552 if currently significantly impacted by a
rections in enacted codes. Effective June 14, 2021, (SB 56)
catastrophe such that the catastrophe directly causes the in-
(SB 841) the changes in law made by this bill apply only to
ability of a governmental body to comply with the require-
a request for information that is received by a governmental
ments of Chapter 552; and authorizes the governmental body
body or an officer on or after the effective date, and to the
to suspend the applicability of the requirements of Chapter
extent of any conflict, this bill prevails over another bill of
552 under this subsection only once for each catastrophe.
the 87th Legislature, Regular Session, 2021, relating to non-
substantive additions to and corrections in enacted codes. Effective Sept. 1, 2021.

Section 552.149 Section 772.012

SB 334 amends subsection (b) to authorize the release of HB 1118 adds this section to require a local government
comparable sales data from the chief appraiser that is relevant submit a written certification of the compliance with the cy-
to any matter to be determined by the arbitrator at the hearing bersecurity training required by Government Code Section
on the property owner’s appeal under Tax Code Chapter 41A. 2054.5191 with the grant application to apply for a grant un-
The bill provides that information remains confidential and is der Government Code Chapter 772, Governmental Planning
prohibited from being disclosed or used for any purpose ex-
cept as evidence or argument at certain hearings, including at Effective May 18, 2021.
the hearing on the appeal under Tax Code Chapter 41A. The
bill repeals subsection (e) regarding the population threshold Section 1301.001
for releasing certain information or data that relates to real SB 186 amends subdivision (a) to authorize the commission-
property. ers court of a county to issue bonds authorized under Subtitle
A and Chapter 1251,Bond Elections for restoring or main-
Effective Sept. 1, 2021, and the changes in law made by this taining a county courthouse.
bill apply only to a request described by Government Code
Section 552.149(b), received by the chief appraiser of an ap- Effective June 7, 2021.
praisal district on or after the effective date.

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 27
Section 2051.201 to those of a general manager or executive director,
HB 1154 redesignates Government Code Chapter 2051, Sub- the name of the general manager, executive director,
chapter E, as added by Chapter 1029 (H.B. 305), Acts of the or person that performs those duties;
86th Legislature, Regular Session, 2019, Government Code (6) if the special purpose district contracts with a utility
Chapter 2051, Subchapter F. Subsection (a) provides this sec- operator, the contact information for a person repre-
tion applies only to a political subdivision with the authority senting the utility operator, including a mailing ad-
to impose a tax that at any time on or after Jan. 1, 2019, main- dress and telephone number;
tained a publicly accessible Internet website, and that is not (7) if the special purpose district contracts with a tax
subject to Section 2051.202. assessor-collector, the contact information for a per-
son representing the tax assessor-collector, including
.Effective Sept. 1, 2021. To the extent of any conflict, this bill a mailing address and telephone number;
prevails over another Act of the 87th Legislature, Regular (8) if the special purpose district imposes an ad valorem
Session, 2021, relating to nonsubstantive additions to and tax, the rate of the ad valorem tax of the special pur-
corrections in enacted codes. pose district;
(9) if the special purpose district imposes a sales and use
Section 2051.202 tax, the rate of the sales and use tax of the special
HB 1154 adds this section and provides this section only ap- purpose district;
plies to a special purpose district that is authorized to impose (10) any notice of tax hearing required to be given under
a property tax; during the most recent fiscal year, imposed a Tax Code Chapter 26 (Assessment), or Water Code
property tax, had bonds outstanding, had gross receipts from Section 49.236 (Notice of Tax Hearing);
operations, loans, taxes, or contributions in excess of $250,000; (11) the location and schedule of meetings of the govern-
or had cash and temporary investments in excess of $250,000; ing body of the special purpose district;
and at the beginning of the most recent fiscal year, had a popu- (12) a statement substantially similar to a certain form as
lation of 500 or more, as determined by the governing body set forth in this subdivision;
of the special purpose district. The bill defines “special pur- (13) each notice of a meeting of the governing body of
pose district” to mean a political subdivision of this state with the special purpose district under Government Code
geographic boundaries that define the subdivision’s territorial Subchapter C (Notice of Meetings), Chapter 551
jurisdiction. The term does not include a municipality, county, (Open Meetings), for meetings conducted in the cur-
junior college district, independent school district, groundwa- rent calendar year and the immediately preceding
ter conservation district, river authority, or political subdivi- calendar year;
sion with statewide jurisdiction. Notwithstanding Subsections (14) the minutes of a public meeting of the governing
(a) and (b), this section applies to a district created and op- body of the special purpose district under Govern-
erating under Local Government Code Chapter 387, County ment Code Section 551.021 (Minutes or Recording
Assistance District. Subsection (d) requires a special purpose of Open Meeting Required) for meetings conducted
district to post or cause to be posted the following information in the current calendar year and the immediately pre-
on an Internet website, if applicable: ceding calendar year; and
(15) the most recent financial audit of the special purpose
(1) the name of the special purpose district;
district.
(2) the name and term of office of each member of the
governing body of the special purpose district; Effective Sept. 1, 2021. Government Code Section 2051.202(d)
(3) the contact information for the main office of the spe- (13) and (14), as added by this bill, apply only to a meet-
cial purpose district, including the physical address, ing held by a special purpose district on or after the effec-
the mailing address, and the telephone number; tive date. To the extent of any conflict, this bill prevails over
(4) the official contact information for each member of another Act of the 87th Legislature, Regular Session, 2021,
the governing body of the special purpose district; relating to nonsubstantive additions to and corrections in
(5) if the special purpose district employs a person as a enacted codes.
general manager or executive director, or in another
position to perform duties or functions comparable

28 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
Section 2054.519 political subdivision under specified Water Code enforce-
HB 1118 repeals Government Code Section 2054.519(f), as ment provisions.
added by Chapter 1308 (H.B. 3834), Acts of the 86th Legis-
Effective Sept. 1, 221, and applies only to a contract entered
lature, Regular Session, 2019, related to authorizing a local
into on or after the effective date.
government that employs a dedicated information resources
cybersecurity officer to offer to its employees a cybersecurity
training program that satisfies applicable requirements.
Local Government Code
Effective May 18, 2021.
Section 43.004
Section 2054.5191 HB 1900 adds this section to prohibit a defunding municipal-
HB 1118 amends the heading of this section to Cybersecu- ity from annexing an area during the period beginning on the
rity Training Required: Certain Employees and Officials. date that the criminal justice division of the Governor’s Of-
Amends subsection (a-1) to add training requirements for fice issues the written determination that the municipality is
elected and appointed officials and specify that at least once a defunding municipality and ending on the 10th anniversary
a year a local government identify employees or officials of the date on which the criminal justice division of the Gov-
who use a computer to perform at least 25 percent of their ernor’s Office issues a written determination finding that the
required duties complete a cybersecurity training program. defunding municipality has reversed the reduction.
The bill authorizes the governing body of a local government
Effective Sept. 1, 2021.
or designee to deny access to the local government’s com-
puter system or database to an individual who the govern-
Section 43.1465
ing body or designee determines is noncompliant with the
HB 1900 adds this section to require a defunding municipality
requirements of training.
hold a separate election in each area annexed in the preceding
Effective May 18, 2021. 30 years on the question of disannexing the area on the next
uniform election date that occurs after the date on which the
Section 2251.042 division issues a written determination that the municipality is
HB 1476 amends subsection (a) to require a governmental a defunding municipality. The bill requires the defunding mu-
entity to notify a vendor of an error or disputed amount in an nicipality to immediately disannex an area for which a major-
invoice submitted for payment by the vendor not later than ity of the votes received in the election favor disannexation. A
the 21st day after the date the entity receives the invoice, and defunding municipality is prohibited from attempting to annex
to include in such notice a detailed statement of the amount of the area before the 10th anniversary of the date on which the
the invoice which is disputed. The bill adds subsection (d) to division issues a written determination in accordance that the
authorize the governmental entity to withhold no more than defunding municipality has reversed the reduction.
110 percent of the disputed amount from required payments.
Effective Sept. 1, 2021.
Effective Sept. 1, 2021, and applies only to a contract entered
into on or after the effective date. Sections 109.001, 109.002, 109.003, 109.004,
109.005, and 109.006, Chapter 109
Section 2254.102 HB 1900 adds this chapter “Determination of Defunding
HB 1428 amends subsection (e) to extend the exemption for Municipalities” including these sections to apply to a munici-
certain collection services contracts from provisions govern- pality with a population of more than 250,000. The bill speci-
ing contingent fee contracts for legal services to any contract fies a defunding municipality is a municipality:
for legal services entered into by a political subdivision for
• that adopts a budget for a fiscal year that, in compari-
the collection of a delinquent obligation. The bill provides
son to the municipality’s preceding fiscal year, reduces
that for purposes of this exemption an obligation does not
the appropriation to the municipality’s police depart-
include a fine or penalty that results from an action by a
ment; and

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 29
 • for which the division issues a written determination Sections 120.001, 120.002, 120.003, 120.004,
finding that the municipality has made the reduction. 120.005, 120.006, and 120.007, Chapter 120
SB 23 adds this chapter “Election for Reduction of Funding
The bill provides for the criminal justice division of the Gov-
or Resources for Certain Primary Law Enforcement Agen-
ernor’s Office to identify municipalities that reduce appropri-
cies” including these sections to apply to a county with a pop-
ations to the police department year-over-year, as specified. If
ulation of more than one million. The bill requires a county,
a municipality is determined to be a “defunding municipal-
except as provided by Section 120.003, to hold an election in
ity” certain restrictions are placed on annexation, taxation,
accordance with this chapter if the county adopts a budget
and charges from a municipal-owned utility until the reduc-
for a fiscal year that, compared to the budget adopted by the
tions are reversed and adjusted for inflation.
county for the preceding fiscal year reduces certain funding
Effective Sept. 1, 2021, and applies only to a budget adopted for a law enforcement agency with primary responsibility
for a fiscal year that begins on or after the effective date. for policing, criminal investigation, and answering calls for
service or reallocates funding or resources to another law
Section 111.003 enforcement agency. The bill prohibits a county from imple-
SB 1357 amends subsection (a) to require the county judge, menting a proposed reduction or reallocation until the county
assisted by the county auditor or county clerk in a county receives voter approval for the proposed reduction or real-
with a population of 225,000 or less, to prepare a budget to location at an election held for that purpose and provides cer-
cover all proposed expenditures of the county government for tain budget exceptions.
the succeeding fiscal year not later than August 15.
Section 120.006 authorizes a person who resides in the coun-
Effective June 14, 2021, and the changes in law made by this ty, who believes that a county reduced funding without the
bill apply to a budget proposed by a county commissioners required voter approval file a complaint with the criminal
court for a fiscal year beginning on or after the effective date. justice division of Governor’s Office. The bill requires the
criminal justice division to determine whether a complaint is
Section 111.006 potentially valid or frivolous or false. Subsection (c) requires
SB 1357 amends subsection (a) to require the county judge file the criminal justice division to provide written notice of a
a copy of the proposed budget with the county clerk not later potentially valid complaint to the county that is the subject
than August 15 in a county with a population of 225,000 or less. of the complaint. The division must provide the county an
opportunity to correct the action that is the subject of the
Effective June 14, 2021, and the changes in law made by this complaint before referring the complaint to the Comptroller.
bill apply to a budget proposed by a county commissioners
court for a fiscal year beginning on or after the effective date. Section 120.007 requires the Comptroller, on request of the
criminal justice division of the Governor’s Office determine
Section 111.007 whether a county has implemented a proposed reduction or
SB 1357 amends subsection (b) to require the commissioners reallocation described by Section 120.002(a) without the
court of a county with a population of 225,000 or less to hold required voter approval. The bill requires the Comptroller
the public hearing on the proposed budget not later than the to issue a written determination to the governor, lieutenant
25th day after the day the budget is filed but before the com- governor, speaker of the Texas House of Representatives, and
missioners court adopts the county’s property tax rate for the governing body of the county.
current tax year. The bill amends subsection (c) to require the
If the Comptroller determines that the county implemented
commissioners court give public notice that it will consider
a proposed reduction or reallocation described by Section
the proposed budget under this subsection not earlier than the
120.002(a) without the required voter approval, the county
30th day before the date of the hearing and not later than the
is prohibited from adopting a property tax rate that exceeds
10th day before the date of the hearing.
the county’s no-new-revenue tax rate until the earlier of the
Effective June 14, 2021, and the changes in law made by this date the Comptroller issues a written determination that the
bill apply to a budget proposed by a county commissioners county has reversed each funding reduction or restored all
court for a fiscal year beginning on or after the effective date. reallocated funding and resources, or each reduction and

30 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
reallocation that was a subject of the determination has been Code Section 232.152 to authorize a commissioner’s court,
approved in an election. The unused increment rate for a to implement an expedited process to administratively de-
county in a tax year the Comptroller determines that a coun- termine that a platted lot is abandoned, unoccupied, and un-
ty implemented a proposed reduction or reallocation without developed if the lot:
the required voter approval is considered zero.
(1) has remained undeveloped for 25 years or more after
Effective Jan. 1, 2022. the date the lot was platted;
(2) is part of a subdivision in which 50 percent or more of
Section 211.009 the lots are undeveloped or unoccupied;
HB 1475 adds subdivision (b-1) to authorize the municipal (3) is part of a subdivision in which 50 percent or more of
board of adjustment exercising authority under subsection (a) the lots are ten acres or less in size;
(3) (board authorizing variance from the terms of a zoning (4) had an assessed value of less than $1,000 as of Jan. 1,
ordinance under certain conditions), to consider the follow- 2021; and
ing to determine whether compliance with the ordinance as (5) as of Jan. 1, 2021, was not valued for ad valorem taxa-
applied to a structure that is the subject of the appeal would tion as land for agricultural use pursuant to Tax Code
result in unnecessary hardship: Subchapter C (Land Designated for Agricultural Use),
Chapter 23 (Appraisal Methods and Procedures).
(1) the financial cost of compliance is greater than 50 per-
cent of the appraised value of the structure as shown The bill adds subsection (b) to specify the county has no
on the most recent appraisal roll certified to the asses- ownership interest in any lot that is administratively deter-
sor for the municipality under Tax Code Section 26.01 mined to be abandoned, unoccupied and undeveloped, or that
(Submission of Rolls to Taxing Units); is placed in a receivership under, except for any existing or
(2) compliance would result in a loss to the lot on which the future legal interest established by other law.
structure is located of at least 25 percent of the area on
which development is authorized to physically occur; The bill adds subsection (a) to Local Government Code
(3) compliance would result in the structure not being in Section 232.153 to require a county hold a public hearing
compliance with a requirement of a municipal ordi- and make reasonable efforts to notify each owner and lien-
nance, building Code or other requirement; holder of the lot of the time and place of the hearing as pro-
(4) compliance would result in the unreasonable en- vided by Section 232.154 before making an administrative
croachment on an adjacent property or easement; or determination that a platted lot is abandoned, unoccupied,
(5) the municipality considers the structure to be a non- and undeveloped. Added subsections (b) through (g) spec-
conforming structure. ify requirements for the hearing. The bill adds Local Gov-
ernment Code Section 232.154 to provide requirements for
Effective Sept. 1, 2021, and applies only to an appeal filed notice of the hearing. Added Section 232.155 provides any
with a municipal board of adjustment on or after the effec- owner or lienholder of record of a platted lot aggrieved by
tive date. an order issued under Section 232.153 may file in a district
court in the county in which the property is located a veri-
Sections 232.151, 232.152, 232.153, fied petition alleging that the decision is illegal, in whole
Subchapter F or in part, and stating with specificity the grounds of the
HB 1564 adds this subchapter, Abandoned, Unoccupied, alleged illegality. The bill adds Section 232.156 to provide
and Undeveloped Platted Lots in Certain Counties, to Lo- after a final determination that a platted lot is abandoned,
cal Government Code Chapter 232, County Regulation of unoccupied, and undeveloped, the county shall bring a civil
Subdivisions, and provides that the subchapter applies only action to have the lot placed in a receivership. Added Sec-
to a county that: has a population of more than 800,000; is tion 232.157 specifies authority and duty of the receiver.
adjacent to an international border; and contains more than
Effective Sept. 1, 2021.
30,000 acres of lots that have remained substantially unde-
veloped for more than 25 years after the date the lots were
platted. The bill adds subsection (a) to Local Government

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 31
Section 271.003 Section 375.2621
SB 58 adds cloud computing services to the definition of SB 604 adds this section to require the board of directors of
“personal property.” The bill provides that it is the intent of a municipal management district consider a petition for dis-
the legislature that the definition of the term “personal prop- solution under Section 375.262 (Dissolution by Petition by
erty” under Local Government Code Section 271.003(8), as Owners) within 60 days after the date the petition is filed. The
amended by this bill, is applicable only to Local Government bill prohibits the management district from issuing bonds se-
Code Chapter 271, Subchapter A. cured by assessments after the date the board confirms that
the petition is valid and complete under Section 375.262.
Effective June 3, 2021.
Effective Sept. 1, 2021, and the changes in law made by this
Section 373B.003 bill apply only to a municipal management district that is the
SB 113 amends subdivision (2) to modify the qualifications subject of a petition described by Local Government Code
for a community land trust to include limited partnerships Section 375.262, filed with the board on or after the effec-
and limited liability companies in which a nonprofit corpora- tive date. The changes in law made by this bill may not be
tion controls or serves as the only member. construed to impair an obligation under a contract entered
into before the effective date of this bill. A political subdivi-
Effective Sept. 1, 2021 and applies only to property taxes
sion may fulfill the subdivision’s obligations under a con-
imposed for a tax year that begins on or after the effective
tract entered into before that date but may not extend such a
date.
contract beyond the contract’s original term.

Section 372.010 Section 375.264

HB 1543 amends subsection (a) to require that a resolution
SB 604 modifies the title of this section to “Limitations on
authorizing an improvement district in accordance with a
Dissolution by Board of District with Debt.” The bill prohib-
certain finding, except for a resolution authorizing a district
its a district from being dissolved by its board under Local
described by Section 372.0035 provide that the authorization
Government Code Section 375.261 (Dissolution by Board
takes effect on the date the resolution is adopted. Subsection
Vote) or after a petition is filed under Local Government
(b) requires a municipality or county, not later than the sev-
Code Section 375.262 if the district has outstanding bonded
enth day after the date the governing body of a municipality
indebtedness until that bonded indebtedness has been repaid
or county adopts a resolution under Subsection (a), to file a
or defeased in accordance with the order or resolution autho-
copy of the resolution with the county clerk of each county in
rizing the issuance of the bonds. Added subsection (b) pro-
which all or part of the improvement district is located.
vides that, if a petition is filed under Section 375.262 with the
Effective Sept. 1, 2021. board of a district and the district has outstanding bonded
indebtedness secured by assessments:
Section 372.0121 • the district is required to remain in existence solely for
SB 804 amends this section to authorize the governing body
the purposes of winding up district operations and dis-
of a municipality, notwithstanding Section 372.012 or any
charging its bonded indebtedness; and
other requirement in Chapter 372 to include property in a
• the board is required to use all district money that is
public improvement district described by Section 372.0035
available to wind up district operations and to repay or
after the establishment of the district, if a sufficient number
defease all bonded indebtedness as soon as practicable
of the record owners of the real property currently included
in accordance with the order or resolution authorizing
and proposed to be included in the district have consented to
the issuance of the bonds.
be included in the district by signing the original petition to
establish the district or by signing a petition or written con- Effective Sept. 1, 2021, and the changes in law made by this
sent to include property in the district. bill apply only to a municipal management district that is the
subject of a petition described by Local Government Code
Effective June 14, 2021.
Section 375.262, filed with the board on or after the effec-
tive date. The changes in law made by this bill may not be

32 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
construed to impair an obligation under a contract entered Section 51.252
before the effective date of this bill. A political subdivision HB 1560 amends subsection (a) to require TDLR to maintain
may fulfill the subdivision’s obligations under a contract en- a system to promptly and efficiently act on complaints filed
tered before that date but may not extend such a contract with TDLR. TDLR is required to maintain information about
beyond the contract’s original term. parties to the complaint, the subject matter of the complaint,
a summary of the results of the review or investigation of the
Sections 379H.001 – 379H.006, Chapter 379H complaint, and its disposition. The bill adds subsection (b-2)
SB 1679 adds this chapter “Urban Land Bank Program in to require TDLR to make information available describing its
Municipality with Populations of Two Million or More” to procedures for complaint investigation and resolution.
define “board,” “land bank,” “non-qualifying municipality,”
and “real property.” The bill provides that a land bank cre- The bill repeals subsection (d) regarding TCLR procedure for
ated under this chapter exists for the purpose of acquiring, documenting complaints to the department from the time of
managing, and disposing of vacant, abandoned, deteriorated, the submission of the initial complaint to the final disposition.
non-revenue generating, and non-tax producing properties
Effective Sept. 1, 2021.
and converting those properties to productive uses. The bill
requires this chapter be construed liberally to carry out the
Section 51.2521
intended purposes as a complete and independent authoriza-
HB 1560 adds this section to require TDLR assign priorities
tion for the performance of each and every act and thing au-
and investigate complaints based on risk to the public of the
thorized by this chapter, and requires that all powers granted
conduct alleged in the complaint. The bill requires TDLR to
be broadly interpreted to carry out the intended purposes
dismiss a complaint if at any time TDLR determines that an
and not as a limitation of powers. The bill adds the following
allegation or formal complaint submitted by a person is inap-
subchapters: Subchapter B, Board of Directors, Subchapter
propriate or without merit.
C, Creation, Operation, and Dissolution of Land Bank, Sub-
chapter D, Acquisition and Disposition of Property, Subchap- Effective Sept. 1, 2021.
ter E, Financing of Land Bank Operations.
Section 51.255
Effective Sept. 1, 2021. Notwithstanding Local Government
HB 1560 adds this section to require TDLR to make avail-
Code Section 379H.157(b), as added by this bill, an ur-
able on TDLR’s Internet website a statistical analysis of the
ban land bank established under Local Government Code
complaints received by TDLR.
Chapter 379H as added by this bill, that holds fee simple
title to real property before the effective date of this bill is Effective Sept. 1, 2021.
not required to convey, exchange, sell, transfer or otherwise
dispose of the real property, as required by that subsection, Section 51.405
until the last day of the fifth consecutive year during which HB 1560 amends subsection (a) to require TDLR, rather
the urban land bank holds the fee simple title on and after than TCLR, to recognize, prepare, or administer continuing
the effective date of this bill. education programs for license holders. The bill authorizes
TCLR by rule, to establish a minimum number of hours of
continuing education required for license renewal, to provide
Occupations Code for the registration and renewal of continuing education pro-
viders and the approval of continuing education courses, and
Section 51.002 to assess reasonable and necessary fees on continuing educa-
HB 1560 amends this section to extend the sunset date from tion providers. In adopting rules under this section for a pro-
Sept. 1, 2021 to Sept. 1, 2033 for the Texas Commission of gram regulated by TDLR, TCLR is required to consult with
Licensing and Regulation (TCLR) and the Texas Department the advisory board established for the program, if applicable.
of Licensing and Regulation (TDLR).
Effective Sept. 1, 2021.
Effective Sept. 1, 2021.

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 33
Section 1151.109
SB 916 adds this section to require TCLR by rule require
Property Code
TDLR to include in the record of the registered professional
appraiser who serves as chief appraiser for an appraisal dis-
Section 5.014
HB 1543 amends subsection (a), for a district described by
trict at the time the Comptroller finalizes the biennial review
Local Government Code Section 372.0035 be executed by
of the appraisal district’s performance under Tax Code Sec-
the seller and prescribes required language for the notice.
tion 5.102(c) an electronic link to:
The bill authorizes the seller or the municipality or county
(1) the Comptroller’s report for the review; and that created the public improvement district to provide ad-
(2) each school district property value study the Comp- ditional information regarding the district in the notice pre-
troller conducts under Government Code Chapter scribed by Subsection (a-1) or (a-2), including whether an as-
403, Subchapter M that is used in the review. sessment has been levied, the amount of the assessment, and
the payment schedule for assessments.
The bill provides an appraisal may to request information on
a registered professional appraiser whom the board of direc- Effective Sept. 1, 2021.
tors of the appraisal district is considering for appointment as
chief appraiser of the appraisal district. TDLR is required to Sections 5.0141-5.0145
inform the requestor of the status of any compliance efforts HB 1543 adds these sections to require that the notice re-
of an appraisal district under Tax Code Section 5.102(d) for quired by Section 5.014 be given to the prospective purchaser
previous reviews in which the appraiser served as chief ap- before the execution of a binding contract of purchase and
praiser of that appraisal district. sale, either separately or as an addendum or paragraph of a
purchase contract. The bill specifies obligations and penalties
As soon as practicable after the effective date of this bill the on sellers of home sales in public improvement districts.
TCLR shall adopt rules to implement this section.
Effective Sept. 1, 2021.
Effective Sept. 1, 2021.
Section 52.0012
Section 1151.1581 HB 3115 amends this section to provide that a judgment
HB 1560 amends subsection (a) to require the Comptroller to debtor may file, at any time, a certificate of mailing that sub-
review and approve any (rather than all) continuing education stantially complies with Property Code Section 52.0012(g).
programs for registrants. The bill strikes language regarding The bill would provide that a judgment debtor who files the
TCLR, continuing education programs, and fees. The bill affidavit must send a letter notifying the judgment creditor of
strikes language requiring a registrant to participate in the the filing of the affidavit and a copy of the filed affidavit to
programs to the extent required by TDLR to keep the per- certain addresses. The bill would provide that, if a judgment
son’s certificate of registration. debtor has filed a certificate of mailing and a contradicting
Effective Sept. 1, 2021. affidavit is not filed, a bona fide purchaser or mortgagee and
similarly situated individuals can rely conclusively on the af-
Section 1152.106 fidavit for the 90-day period that begins on the 31st day after
HB 1560 amends the heading of this section to “Vote Re- the certificate of mailing was filed.
quired for Action.” The bill strikes language requiring the Effective Sept. 1, 2021. The change in law made by this bill
Property Tax Consultants Advisory Council to meet at least applies only to an affidavit filed under Property Code Section
semiannually at the call of the presiding officer or at the call 52.0012(b) as amended by this bill on or after the effective date.
of a majority of its members.

Effective Sept. 1, 2021.

34 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
Special District Local Transportation Code
Laws Code Section 521.1211
HB 368 amends this section to add prosecutors to individuals
Section 3501.0047 (currently peace officers) who are eligible to use an alterna-
HB 4579 adds subsection (b) to provide that Tax Code Section tive to their residence address for an address shown on a driv-
25.07(a), relating to requirements for a leasehold or other pos- er’s license. Subsection (a) defines “prosecutor” as a county
sessory interest in real property that is exempt from taxation or attorney, district attorney, criminal district attorney, assistant
interest, applies to a leasehold or other possessory interest in county attorney, assistant district attorney, or assistant crimi-
real property granted by the authority for a project designated nal district attorney. The Department of Public Safety is re-
under Section 3501.1024(a) in the same manner as it applies to quired to accept the address of an office of the prosecutor as
a leasehold or other possessory interest in real property consti- an alternative address.
tuting a project described by Local Government Code. The bill
Effective Sept. 1, 2021.
adds subsection (c) to provides that a commercial aircraft to be
used as an instrument of commerce that is under construction
in the authority is presumed to be in interstate, international,
or foreign commerce and not located in this state for longer
Water Code
than a temporary period for purposes of Tax Code Sections
11.01 and 21.02. Added subsection (d) provides that tangible
Section 49.062
HB 1154 amends subsection (b) to exclude a “rural area dis-
personal property located in the authority is presumed to be in
trict.” Added subsection (b-1) defines “rural area district” and
interstate, international, or foreign commerce and not located
provides if the board of a rural area district conducts meet-
in this state for longer than a temporary period for purposes of
ings at least quarterly, the board shall conduct a meeting at
Tax Code Sections 11.01 and 21.02, if the owner demonstrates
a designated meeting location inside the district or within 10
to the chief appraiser for the appraisal district in which the
miles of the boundary of the district at least once per quarter
authority is located that the owner intends to incorporate the
unless the board determines it is not practical to meet within
property into or attach the property to a commercial aircraft
10 miles of the boundary.
described by Subsection (c).
Effective Sept. 1, 2021. To the extent of any conflict, this bill
Section 3828.157 prevails over another bill of the 87th Legislature, Regular
SB 1438 amends this section to include Tax Code Section Session, 2021, relating to nonsubstantive additions to and
26.042(e), calculation and adoption of certain tax rates in di- corrections in enacted codes.
saster area, in the list of certain sections that do not apply
to a tax imposed under Section 3828.153 (Maintenance and Section 49.0631
Operation Tax; Election) or 3828.156 (Taxes for Bonds and HB 1154 amends title of section to “District Information on
Other Obligations). Water Bill.” The bill amends this section to authorize the re-
quired statement on a district’s bill to a customer be altered
Effective June 16, 2021.
to provide the current Internet website address of the data-
base created under Government Code Section 403.0241, the
Section 8876.152
district, or the Internet website or websites the district uses
SB 1438 amends this section to include Tax Code Section
to comply with Government Code Section 2051.202 and Tax
26.042(e), calculation and adoption of certain tax rates in di-
Code Section 26.18.
saster area, in the list of certain sections that do not apply to
a tax imposed by the Reeves County Groundwater Conserva- Effective Sept. 1, 2021. To the extent of any conflict, this bill
tion District. prevails over another bill of the 87th Legislature, Regular
Session, 2021, relating to nonsubstantive additions to and
Effective June 16, 2021.
corrections in enacted codes.

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 35
Section 49.107 is adopted and the voters approve the imposition of taxes and
SB 1438 amends subsection (g) to update a reference to Tax issuances of bonds.
Code Section 26.042, calculation and adoption of certain tax
Effective June 14, 2021.
rates in disaster area.

Effective June 16, 2021. Section 54.016

HB 1410 amends subsection (e) to authorize a city’s consent
Section 49.108 to the inclusion of land in a district to restrict the purposes
SB 1438 amends subsection (f) to update a reference to Tax for which a district is authorized to issue bonds to purposes
Code Section 26.042, calculation and adoption of certain tax authorized by law for the district.
rates in disaster area.
Effective June 14, 2021, and does not affect the terms of a
Effective June 16, 2021. city’s resolution or ordinance adopted before the effective
date of this bill that constitutes a valid written consent under
Section 49.236 Section 54.016 (Consent of City) of that code for land that
HB 2723 amends subsection (a) to require the notice of each was included in a district prior to the effective date.
meeting of the board at which the adoption of a tax rate will
be considered contain a statement in substantially the same
form as “Visit Texas.gov/PropertyTaxes to find a link to your Session Law
local property tax database on which you can easily access
SB 1 requires the Comptroller to conduct a study out of ap-
information regarding your property taxes, including infor-
propriated funds to determine the amount of property tax
mation about proposed tax rates and scheduled public hear-
revenue that each county containing a United States military
ings of each entity that taxes your property.”
installation, each county adjacent to a county containing a
Effective June 3, 2021, and applies only to a notice required United States military installation, and each municipality lo-
to be delivered for a property tax year that begins on or after cated in either type of those counties lost for the 2021 prop-
Jan. 1, 2022. erty tax year as the result of the granting of the property tax
exemption required by Tax Code Section 11.131. The revenue
Section 49.4645 loss would be calculated by multiplying the property tax rate
HB 1410 amends subsection (a) to create an exception under adopted by the county or municipality, as applicable, for the
(a-1) to the prohibition on the outstanding principal amount 2021 property tax year by the total appraised value of all
of bonds, notes, and other obligations issued to finance parks property located in the county or municipality, as applicable,
and recreational facilities supported by property taxes from that was granted the exemption for that tax year.
exceeding an amount equal to one percent of the value of the
The bill requires the Comptroller to prepare a report that
taxable property in the district as shown by the tax rolls of
states the amount of property tax revenue that was lost by:
the central appraisal district at the time of the issuance of the
bonds, notes, and other obligations. The bill amends subsec- • each municipality listed by name;
tion (a-1) to authorize the outstanding principal amount of • each county listed by name; and
bonds, notes, and other obligations issued to finance a rec- • all municipalities and counties in this state in the
reational facility under subsection (a) to exceed an amount aggregate.
equal to one percent but not three percent of the value of
the taxable property in the district or, if supported by con- The bill requires the Comptroller not later than Dec. 1, 2022,
tract taxes under Water Code Section 49.108, the value of the to submit the report to the Speaker of the House of Repre-
taxable property in the districts making payments under the sentatives, the Lieutenant Governor, and each member of the
contract, if the district meets specified criteria. Amends this Legislature.
section to modify the requirements before a municipal utility
Effective Sept. 1, 2021.
district may apply its taxing power and lien authority to a de-
fined area or designated property to after the proposed plan

36 — Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021
SB 1 (3rd CS) authorizes the Comptroller to adopt rules for to refund to the surviving spouse the difference between the
the purpose of implementing and administering the provi- taxes collected and the taxes that should have been imposed
sions of the bill, including rules relating to the form of certain as calculated under this subsection.
information required to be provided by tax officials and the
This amendment was approved by voters at an election held
date on which the information must be provided.
Nov. 2, 2021.
Effective Oct. 25, 2021.
SJR 2 (2nd CS) adds subsection (d-2) to authorize the Leg-
islature by general law to reduce the limitation on school
Texas Constitution property taxes on the residence homesteads of 65-and-over
or disabled individuals to reflect any statutory reduction from
the preceding tax year in the maximum compressed rate, as
Article VIII, Section 1-b
defined by general law, on the homestead.
SJR 2 (3rd CS) amends subsection (c) to increase the man-
datory homestead exemption for school district property tax- This amendment will be put before the voters at an election
es from $25,000 to $40,000. Adds a temporary provision to to be held May 7, 2022.
the constitution, which expires on January 1, 2023, specify-
ing that the amendment to subsection (c) takes effect January SJR 35 amends subsection (m) to authorize the Legislature
1, 2022 and applies only to a tax year beginning on or after by general law to provide an exemption from property taxa-
that date. tion of all or part of the market value of the residence home-
stead of the surviving spouse of a member of the armed ser-
This amendment will be put before the voters at an election vices of the United States who is fatally injured in the line of
to be held May 7, 2022. duty if the surviving spouse has not remarried since the death
of the member of the armed services.
HJR 125 amends subsection (d) to allow the surviving
spouse of a disabled person with a tax ceiling to retain the This amendment was approved by voters at an election held
tax ceiling. The resolution requires a collector who collected Nov. 2, 2021.
school district property taxes from a surviving spouse who,
under the law as amended by Section 1, Chapter 1284 (H.B. Article VIII, Section 1-g
1313), Acts of the 86th Legislature, Regular Session, 2019, HJR 99 amends subsection (b) to authorize the Legislature
was entitled to receive a limitation on school district taxes by general law to authorize a county to issue bonds or notes
on the spouse’s residence homestead to calculate the school to finance the development or redevelopment of transporta-
district taxes that should have been imposed for the 2020 and tion or infrastructure in unproductive, underdeveloped, or
2021 tax years taking into account the change in law made blighted areas in the county.
by that Act. If the taxes collected by the collector for those
tax years exceed the taxes that should have been imposed This amendment was approved by voters at an election held
as calculated under this subsection, the collector is required Nov. 2, 2021.

Texas Comptroller of Public Accounts • Texas Property Tax Law Changes 2021 — 37
 For more information, visit our website:
comptroller.texas.gov/taxes/property-tax
In compliance with the Americans with Disabilities Act,
this document may be requested in alternative formats
by calling toll free 800-252-5555.

Sign up to receive email updates on the Comptroller topics

of your choice at comptroller.texas.gov/subscribe/.

Texas Comptroller of Public Accounts

Publication #96-669
December 2021