SB2073

Regular Session

Relating to the authority of an appraisal district to purchase, finance the purchase of, or lease real property or construct or finance the construction of improvements to real property.

ModeratePlan for compliance

Low Cost

Effective:2025-09-01

Enforcing Agencies

Appraisal District Board of Directors • Governing Bodies of Taxing Units (Cities, Counties, School Districts, Special Districts)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025 (Applies to any notification sent by a Chief Appraiser on or after this date).
Agency Rulemaking: No state-level rulemaking is required. However, Appraisal District Boards and Taxing Unit Governing Bodies must update internal bylaws and notice protocols prior to Q3 2025 to manage the new deadlines.

Immediate Action Plan

Update Mail Protocols: Reclassify correspondence from the Chief Appraiser as time-sensitive legal notices immediately.
Revise Board Agendas: Create a standing rule that CAD real estate proposals are automatically placed on the next available agenda; "tabling" the item is now a liability.
Standardize Disapproval: Draft a template "Resolution of Disapproval" to keep on file for rapid deployment.
Engage CAD Boards: Request a written policy from your local CAD defining what constitutes a "renovation" versus standard maintenance to avoid procedural confusion.

Operational Changes Required

Contracts

Lending Agreements: Commercial lenders may remove clauses requiring proof of 75% taxing unit approval for *financing* terms. Due diligence is now limited to verifying the *project* approval (or proof of non-rejection).
Real Estate PSAs: Purchase and Sale Agreements involving CADs should align "Governmental Approval" contingency periods with the new 40-day statutory finality window (30 days for action + 10 days for filing).

Hiring/Training

Administrative Intake: City Managers, Superintendents, and County Clerks must train administrative staff to flag mail from the Chief Appraiser as "High Priority/Time Sensitive."
Legal Counsel: In-house counsel for taxing units must be briefed to draft "Resolutions of Disapproval" immediately upon receipt of a proposal, as the default "wait and see" approach now results in automatic approval.

Reporting & Record-Keeping

Proof of Filing: Taxing units must implement a certified mail or courier protocol to ensure "Resolutions of Disapproval" are filed with the Chief Appraiser by the 40th day (10 days after the 30-day action period). Failure to prove delivery invalidates the vote.
Alternative Cost Analysis: Chief Appraisers must now generate and file a cost analysis of alternatives alongside any acquisition proposal.

Fees & Costs

Budgetary Risk: No new statutory filing fees. However, taxing units face significant unbudgeted capital costs if they miss the 30-day deadline and are forced to fund their share of a CAD’s real estate acquisition by operation of law.

Strategic Ambiguities & Considerations

"Costs of Other Available Alternatives": The statute mandates the Chief Appraiser provide cost comparisons but fails to define the depth of this analysis (e.g., full market study vs. simple estimate). Taxing units should establish a standard for sufficiency now to prevent disputes over vague proposals.
Definition of "Renovation": The law applies to "renovation" but sets no monetary threshold. It is unclear if minor capital improvements (e.g., HVAC replacement) trigger this process or if it is reserved for major structural changes.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsProperty Interests Property Interests--real Property Taxation Taxation--property-appraisals & Appraisal Districts

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 2073
	By: Zaffirini
	Local Government
	4/4/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Tax Code authorizes the board of directors of appraisal districts to purchase or lease real property and construct improvements necessary to establish and operate appraisal offices. Current law, however, does not explicitly grant authority to finance these purchases or improvements. This ambiguity has led to confusion between counties and appraisal districts over financing responsibilities, which leads to inefficiencies, construction delays, and increased costs for local governments and taxpayers.

S.B. 2073 would authorize the board of directors of an appraisal district to finance the purchase of property or construction of improvements without requiring prior approval from taxing units. What's more, this bill would streamline the property transaction approval process by automatically approving a proposal if the governing body does not act within 30 days of receiving notice or fails to file a resolution with the chief appraiser within 10 days after that deadline. Clearly defining financing authority would give appraisal districts greater certainty when acquiring or improving real property.

As proposed, S.B. 2073 amends current law relating to the authority of an appraisal district to purchase, finance the purchase of, or lease real property or construct or finance the construction of improvements to real property.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 6.051(a) and (b), Tax Code, as follows:

(a) Authorizes the board of directors of an appraisal district to purchase, finance the purchase of, or lease real property and to construct or finance the construction of improvements as necessary to establish and operate the appraisal office or a branch appraisal office.

(b) Provides that this subsection does not require approval by the taxing units of the financing of the acquisition of real property or the financing of the construction or renovation of a building or other improvement. Provides that, if a governing body fails to act on or before that 30th day or fails to file its resolution with the chief appraiser on or before the 10th day after that 30th day, the proposal is treated as if it were approved, rather than disapproved, by the governing body.

SECTION 2. Makes application of Section 6.051(b), Tax Code, as amended by this Act, prospective.

SECTION 3. Effective date: September 1, 2023.

Senate Authors

Sen. Judith ZaffiriniDemocrat · Primary Author

House Sponsor

Rep. Ryan GuillenRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 2073

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the authority of an appraisal district to purchase,
	finance the purchase of, or lease real property or construct or
	finance the construction of improvements to real property.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Sections 6.051(a) and (b), Tax Code, are amended
	to read as follows:
	(a) The board of directors of an appraisal district may
	purchase, finance the purchase of, or lease real property and may
	construct or finance the construction of improvements as necessary
	to establish and operate the appraisal office or a branch appraisal
	office.
	(b) The acquisition or conveyance of real property or the
	construction or renovation of a building or other improvement by an
	appraisal district must be approved by the governing bodies of
	three-fourths of the taxing units entitled to vote on the
	appointment of board members. This subsection does not require
	approval by the taxing units of the financing of the acquisition of
	real property or the financing of the construction or renovation of
	a building or other improvement. The board of directors by
	resolution may propose a property transaction or other action for
	which this subsection requires approval of the taxing units. The
	chief appraiser shall notify the presiding officer of each
	governing body entitled to vote on the approval of the proposal by
	delivering a copy of the board's resolution, together with
	information showing the costs of other available alternatives to
	the proposal. On or before the 30th day after the date the
	presiding officer receives notice of the proposal, the governing
	body of a taxing unit by resolution may approve or disapprove the
	proposal. If a governing body fails to act on or before that 30th
	day or fails to file its resolution with the chief appraiser on or
	before the 10th day after that 30th day, the proposal is treated as
	if it were approved [~~disapproved~~] by the governing body.
	SECTION 2. Section 6.051(b), Tax Code, as amended by this
	Act, applies only to a proposed property transaction or other
	action for which a chief appraiser sends notification under that
	subsection on or after the effective date of this Act. A proposed
	property transaction or other action for which notification is sent
	before the effective date of this Act is governed by the law in
	effect on the date the notification was sent, and the former law is
	continued in effect for that purpose.
	SECTION 3. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 5, 2025

TO:	Honorable Paul Bettencourt, Chair, Senate Committee on Local Government

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB2073 by Zaffirini (Relating to the authority of an appraisal district to purchase, finance the purchase of, or lease real property or construct or finance the construction of improvements to real property.), As Introduced

No fiscal implication to the State is anticipated.

The bill would allow an appraisal district to finance the purchase of real property or construction of improvements as necessary to establish and operate the appraisal office or branch appraisal office. This financing would not require approval by the taxing units.

The bill would require that a governing body's failure to act before the 30th day after receipt of proposal notice, or failure to file the resolution with the chief appraiser on or before the 10th day after the 30th day, will result in the proposal being approved by the governing body. Under current law, the proposal would be considered disapproved.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JMc, SZ, SD, BRI

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Frequently Asked Questions

Common questions about SB2073

What does Texas SB2073 do?

SB 2073 reverses the approval presumption for Appraisal District (CAD) real estate transactions: effective September 1, 2025, a taxing unit's silence constitutes legal consent, not rejection. This legislation primarily impacts cities, counties, and school districts, requiring immediate action to actively disapprove proposed acquisitions or renovations within a strict 30-day window, while simultaneously streamlining the lending process for financial institutions servicing CADs. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Applies to any notification sent by a Chief Appraiser on or after this date).

Who authored SB2073?

SB2073 was authored by Texas Senator Judith Zaffirini during the Regular Session.

When was SB2073 signed into law?

SB2073 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB2073?

SB2073 is enforced by Appraisal District Board of Directors and Governing Bodies of Taxing Units (Cities, Counties, School Districts, Special Districts).

How urgent is compliance with SB2073?

The compliance urgency for SB2073 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB2073?

The cost impact of SB2073 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB2073 address?

SB2073 addresses topics including property interests, property interests--real property, taxation and taxation--property-appraisals & appraisal districts.

Legislative data provided by LegiScanLast updated: November 25, 2025

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