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Bill

SB 419

Relating to the determination of the market value of solar energy property for ad valorem tax purposes.

89th Legislature (2025) Introduced by Mayes Middleton

SB 419 establishes standardized market value assessment methods for solar energy systems to ensure consistent property tax calculations across Texas counties.

Referred to Local Government
#energy--solar(i0316) #taxation--property-appraisals&appraisaldistricts(i0792)
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Bill Summary · SB 419

Legislative bill overview

SB 419 establishes a methodology for determining the market value of solar energy property for property tax assessment purposes in Texas. The bill addresses how solar installations and related infrastructure should be valued by county appraisers when calculating ad valorem (property) taxes owed by solar energy system owners.

Why is this important

As solar energy adoption increases in Texas, inconsistent property valuation methods create uncertainty for solar developers and property owners, potentially affecting project economics and investment decisions. Clear valuation standards also impact municipal tax bases and ensure equitable assessment across different properties and counties, which influences both renewable energy competitiveness and local government revenues.

Potential points of contention

  • Valuation methodology disputes: Disagreement over whether assessments should be based on replacement cost, income approach, or comparable sales—each produces significantly different values and tax liability
  • Industry competitiveness concerns: Solar developers may argue strict valuations make projects less economically viable, while property tax assessors may resist methods that reduce tax base revenues
  • Implementation complexity: County appraisers lack established comparable sales data and specialized expertise for solar property valuation, creating compliance challenges and potential litigation over assessment accuracy

Compiled from official sources — confirm details with the bill’s official record.

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