Relating to the appraisal of property for ad valorem tax purposes, including protests, arbitrations, and appeals regarding appraisals.

SB 2535 modifies Texas property tax appraisal rules to make it harder for appraisal districts to increase property values after a prior reduction. It requires appraisal districts to provide "clear and convincing evidence" to justify any value increase in the next tax year following a lowered appraisal, placing the burden of proof on them. The bill also ensures property owners who win protests or appeals receive reimbursement for reasonable attorney fees and arbitration costs if appraisal districts fail to follow proper procedures. These changes apply to property owners whose values were reduced in the previous tax year through formal appeals. The bill takes effect September 1, 2025.