Bill Text: TX HB3241 | 2019-2020 | 86th Legislature | Introduced


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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-05-01 - Left pending in committee [HB3241 Detail]

Download: Texas-2019-HB3241-Introduced.html
  86R1132 TJB-F
 
  By: Middleton H.B. No. 3241
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the system for appraising property for ad valorem tax
  purposes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 403.302(a) and (a-2), Government Code,
  are amended to read as follows:
         (a)  Every two years, the [The] comptroller shall conduct a
  study using comparable sales and generally accepted auditing and
  sampling techniques to determine the total taxable value of all
  property in each school district. The study shall determine the
  taxable value of all property and of each category of property in
  the district and the productivity value of all land that qualifies
  for appraisal on the basis of its productive capacity and for which
  the owner has applied for and received a productivity appraisal.  
  The comptroller shall make appropriate adjustments in the study to
  account for actions taken under Chapter 41, Education Code.
         (a-2)  In a [If in any] year in which the comptroller does not
  conduct a study for a school district, the taxable value of property
  in the district is presumed to be:
               (1)  the [school] district's local value for that year
  if the most recent study for the district resulted in a
  determination by the comptroller that the district's local value
  was:
                     (A)  valid; or
                     (B)  not valid and exceeded the comptroller's
  value for the district; or
               (2)  the comptroller's value for the district from the
  most recent study if the study resulted in a determination by the
  comptroller that the district's local value was not valid and did
  not exceed the comptroller's value [is considered to be valid].
         SECTION 2.  Section 5.10(a), Tax Code, is amended to read as
  follows:
         (a)  Every [At least once every] two years, the comptroller
  shall conduct a study in each appraisal district to determine the
  degree of uniformity of and the median level of appraisals by the
  appraisal district within each major category of property.  The
  comptroller shall publish a report of the findings of the study,
  including in the report the median levels of appraisal for each
  major category of property, the coefficient of dispersion around
  the median level of appraisal for each major category of property,
  and any other standard statistical measures that the comptroller
  considers appropriate.  In conducting the study, the comptroller
  shall apply appropriate standard statistical analysis techniques
  to data collected as part of the study of school district taxable
  values required by Section 403.302, Government Code.
         SECTION 3.  Section 23.01, Tax Code, is amended by amending
  Subsection (e) and adding Subsection (h) to read as follows:
         (e)  Notwithstanding any provision of this subchapter to the
  contrary, if the appraised value of property in a tax year is
  lowered under Subtitle F, the appraised value of the property as
  finally determined under that subtitle is considered to be the
  appraised value of the property for that tax year.  [In the
  following tax year, the chief appraiser may not increase the
  appraised value of the property unless the increase by the chief
  appraiser is reasonably supported by substantial evidence when all
  of the reliable and probative evidence in the record is considered
  as a whole.   If the appraised value is finally determined in a
  protest under Section 41.41(a)(2) or an appeal under Section 42.26,
  the chief appraiser may satisfy the requirement to reasonably
  support by substantial evidence an increase in the appraised value
  of the property in the following tax year by presenting evidence
  showing that the inequality in the appraisal of property has been
  corrected with regard to the properties that were considered in
  determining the value of the subject property.   The burden of proof
  is on the chief appraiser to support an increase in the appraised
  value of property under the circumstances described by this
  subsection.]
         (h)  The chief appraiser has the burden of supporting an
  increase in the appraised value of property from the preceding tax
  year.
         SECTION 4.  Section 23.013(b), Tax Code, is amended to read
  as follows:
         (b)  A sale is not considered to be a comparable sale unless
  the sale occurred within 24 months of the date as of which the
  market value of the subject property is to be determined[, except
  that a sale that did not occur during that period may be considered
  to be a comparable sale if enough comparable properties were not
  sold during that period to constitute a representative sample].
         SECTION 5.  Section 25.18, Tax Code, is amended by amending
  Subsection (b) and adding Subsections (b-1), (b-2), (b-3), and
  (b-4) to read as follows:
         (b)  The plan shall provide for the following reappraisal
  activities for all real and personal property in the district at
  least once every three years, except as provided by Subsections
  (b-1), (b-2), (b-3), and (b-4):
               (1)  identifying properties to be appraised through
  physical inspection or by other reliable means of identification,
  including deeds or other legal documentation, aerial photographs,
  land-based photographs, surveys, maps, and property sketches;
               (2)  identifying and updating relevant characteristics
  of each property in the appraisal records;
               (3)  defining market areas in the district;
               (4)  identifying property characteristics that affect
  property value in each market area, including:
                     (A)  the location and market area of property;
                     (B)  physical attributes of property, such as
  size, age, and condition;
                     (C)  legal and economic attributes; and
                     (D)  easements, covenants, leases, reservations,
  contracts, declarations, special assessments, ordinances, or legal
  restrictions;
               (5)  developing an appraisal model that reflects the
  relationship among the property characteristics affecting value in
  each market area and determines the contribution of individual
  property characteristics;
               (6)  applying the conclusions reflected in the model to
  the characteristics of the properties being appraised; and
               (7)  reviewing the appraisal results to determine
  value.
         (b-1)  The plan shall provide for the reappraisal of all real
  and personal property in the district not more often than once every
  two years.
         (b-2)  Notwithstanding Subsection (b-1), at any time during
  a tax year before the date the chief appraiser submits the completed
  appraisal records to the appraisal review board under Section
  25.22, an owner of real or personal property is entitled to a
  reappraisal of the owner's property for that year on written
  request delivered to the chief appraiser.
         (b-3)  Notwithstanding Subsection (b-1), the plan must allow
  the chief appraiser, for a tax year in which real property is not
  reappraised, to add to the market value of the property the amount
  of any increase in the value of the property attributable to an
  improvement to the property made during the preceding tax year.
         (b-4)  Subsection (b-1) does not apply to the appraisal of a
  residence homestead in the tax year in which a limitation on
  appraised value under Section 23.23(a) expires.
         SECTION 6.  Section 403.302(a-1), Government Code, is
  repealed.
         SECTION 7.  The changes in law made by this Act to Sections
  23.01, 23.013, and 25.18, Tax Code, apply only to the appraisal of
  property for a tax year beginning on or after the effective date of
  this Act.
         SECTION 8.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2019.
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