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HB1533

Regular Session

Relating to the system for appraising property for ad valorem tax purposes.

Moderate
Low Cost
Effective:2025-06-20
Enforcing Agencies

Appraisal Review Boards (ARBs) • Comptroller of Public Accounts • County Appraisal Districts (CADs) • Texas District Courts

HB1533
Relating to the system for appraising property for ad valorem tax purposes.
Moderate Urgency
Passed with Opposition
House Vote126 - 12
YEA
91% in favor138 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
12
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Appraisal Review BoardsComptroller of Public AccountsCounty Appraisal DistrictsTexas District Courts
Primary Author: Rep. Angie Button
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Immediate effect for protest procedures, litigation discovery rules, and website reporting).
  • Compliance Deadline: January 1, 2026 (Date when Lessees may begin filing for Binding Arbitration; date when new ARB training requirements apply).
  • Agency Rulemaking: The Comptroller must update model hearing procedures and contracting standards for ARB trainers prior to January 1, 2026. Expect clarification on "lessee standing" during this period.

Immediate Action Plan

  • 1. Litigation Hold: Instruct outside counsel to review all lawsuits filed on/after June 20, 2025, and object to any discovery orders that accelerate expert witness deadlines.
  • 2. Lease Audit: Identify all properties valued under $5M with NNN leases. Determine if current language restricts the tenant from acting as the "owner" for tax appeal purposes.
  • 3. Update Protest Calendars: Change internal ticklers for remote hearing notices from 10 days to 5 days to prevent procedural default.
  • 4. Demand Documentation: Issue a directive to tax agents: "If a protest is dismissed for jurisdiction, we require the statutory Written Order immediately."

Operational Changes Required

Contracts

  • Commercial Leases (NNN): You must review all active leases where the tenant reimburses property taxes.
  • Landlords: Immediately revise standard lease templates to explicitly control or waive the tenant’s right to file for binding arbitration under Tax Code Chapter 41A. Failure to do so exposes you to "rogue" valuations on properties under $5M.
  • Tenants: Negotiate to preserve this statutory right to ensure you are not paying taxes on inflated values that a landlord is too apathetic to appeal.
  • Litigation Engagement Letters: Update agreements with outside counsel and tax consultants. Retainers must reflect that District Courts can no longer accelerate expert witness discovery deadlines, likely extending the duration (and carry cost) of tax litigation.

Hiring/Training

  • Internal Tax Teams: Train staff immediately on the new "5-Day Rule." If appearing for a protest via telephone/video without an agent, you must provide notice 5 days in advance (previously 10).
  • Data Analysts: If operating in counties with populations >120,000, re-task analysts to scrape/monitor Appraisal District websites weekly. The law now mandates weekly updates to appraisal records, providing a tactical advantage for real-time comparable analysis.

Reporting & Record-Keeping

  • Dismissal Orders: Do not accept verbal dismissals from an ARB. The law now requires a Written Order stating specific jurisdictional grounds for dismissal. You must retain this document to preserve your right to appeal to District Court.
  • Agent Designation (Form 1.111): Update internal protocols. You are no longer required to log or provide the IP address of the computer used to electronically sign agent designations.

Fees & Costs

  • Litigation Budgets: Anticipate longer discovery phases for judicial appeals filed after June 20, 2025.
  • Arbitration Deposits: For NNN leases, determine who bears the cost of the arbitration deposit ($450–$1,550 depending on value) if a tenant elects to file.

Strategic Ambiguities & Considerations

  • Conflicting Appeals: The statute does not establish a hierarchy between a Landlord filing a District Court appeal and a Tenant filing for Binding Arbitration on the same property. Until the Comptroller or courts clarify, this creates a risk of parallel proceedings yielding different valuations.
  • "Contractually Obligated": The law applies to lessees "contractually obligated to reimburse" taxes. It is unclear if this applies to partial-reimbursement tenants (e.g., a tenant paying 15% pro-rata share) or only those responsible for the entire tax bill.
  • The $5M Cap: The tenant arbitration right applies to properties valued at $5 million or less. It is unclear if this cap applies to the *entire parcel* value or the *leased premise* value.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Dec 5, 2024
Passed House
May 14, 2025
Passed Senate
May 23, 2025
Signed
Jun 20, 2025
TopicsProperty InterestsProperty Interests--landlord & TenantTaxationTaxation--property-appeal of Tax DecisionsTaxation--property-appraisals & Appraisal DistrictsInternetComptroller of Public AccountsCourtsCourts--generalStaff Development & Training
03

House Authors

Rep. Angie ButtonRepublican · Primary Author
Joint Authors

Senate Sponsors

Sen. Paul BettencourtRepublican · Primary Sponsor
Cosponsors (2)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Angie Button

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB1533

Q

What does Texas HB1533 do?

HB1533 fundamentally alters the power dynamic in commercial property tax appeals by granting tenants in Triple Net (NNN) leases a statutory right to bypass landlords and file for binding arbitration starting in 2026. Additionally, the bill takes immediate effect to restructure litigation timelines, prohibiting courts from accelerating expert witness discovery, and mandates stricter procedural standards for Appraisal Review Boards (ARBs). Implementation Timeline Effective Date: June 20, 2025 (Immediate effect for protest procedures, litigation discovery rules, and website reporting).

Q

Who authored HB1533?

HB1533 was authored by Texas Representative Angie Button during the Regular Session.

Q

When was HB1533 signed into law?

HB1533 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB1533?

HB1533 is enforced by Appraisal Review Boards (ARBs), Comptroller of Public Accounts, County Appraisal Districts (CADs) and Texas District Courts.

Q

How urgent is compliance with HB1533?

The compliance urgency for HB1533 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of HB1533?

The cost impact of HB1533 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB1533 address?

HB1533 addresses topics including property interests, property interests--landlord & tenant, taxation, taxation--property-appeal of tax decisions and taxation--property-appraisals & appraisal districts.

Legislative data provided by LegiScanLast updated: November 25, 2025

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