Relating to an exemption from ad valorem taxation of the amount of the appraised value of real property located in certain counties that arises from the installation or construction on the property of border security infrastructure and related improvements and to the consideration of the price paid by certain governmental entities for a parcel of or easement in real property purchased for the purpose of installing or constructing such infrastructure when appraising other real property.

Contracts

• Easement Agreements: Review all pending and future easements with the Texas Facilities Commission or U.S. Government. Ensure the "Purpose" clause explicitly cites the installation of "border security infrastructure" to align with Tax Code Section 11.38 requirements.
• Lease Agreements: For NNN leases in border counties, landlords must adjust estimated tax escrow payments for 2026 to reflect the removal of infrastructure value from the tax roll.

Hiring/Training

• Tax Teams: Train internal tax personnel and external property tax consultants on the new exclusion criteria for comparable sales (Section 23.013). They must be prepared to challenge CAD appraisals that utilize government easement prices as market data.

Reporting & Record-Keeping

• New Filing: You must file a specific application with the Chief Appraiser to claim the exemption.
• Documentation: Retain executed agreements with the State of Texas or the United States, or recorded easement deeds, to substantiate the infrastructure's purpose.
• Asset Segregation: Update fixed asset ledgers to segregate the cost and value of security infrastructure (exempt) from underlying land and non-security improvements (taxable).

Fees & Costs

• No New Fees: There are no filing fees for the exemption application.
• Budget Impact: Anticipate a reduction in property tax liability for affected parcels, but prepare for potential legal costs if CADs challenge the valuation of the infrastructure versus the land.