Bill Text: TX SB403 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to a temporary prohibition on increasing the market value of certain parcels of real property for ad valorem tax purposes following determination of a protest or appeal.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-02-01 - Referred to Finance [SB403 Detail]
Download: Texas-2017-SB403-Introduced.html
85R2550 SMH-D | ||
By: Kolkhorst | S.B. No. 403 |
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relating to a temporary prohibition on increasing the market value | ||
of certain parcels of real property for ad valorem tax purposes | ||
following determination of a protest or appeal. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 23, Tax Code, is amended by | ||
adding Section 23.04 to read as follows: | ||
Sec. 23.04. TEMPORARY PROHIBITION ON INCREASING MARKET | ||
VALUE OF CERTAIN REAL PROPERTY. (a) This section applies to the | ||
appraisal of a parcel of commercial or residential real property if | ||
the market value of the property as determined by the chief | ||
appraiser is reduced by at least 15 percent: | ||
(1) by the appraisal review board and the board's | ||
determination is not overturned on appeal; or | ||
(2) as a result of the final determination of an appeal | ||
of an order of the appraisal review board. | ||
(b) The market value of the property may not be increased | ||
for the first two tax years following the tax year for which the | ||
market value of the property was reduced. | ||
(c) Subsection (b) does not prohibit an increase in the | ||
market value of a parcel of commercial or residential real property | ||
attributable to an improvement to the property made after the most | ||
recent appraisal of the property that increases the market value of | ||
the property and the value of which is not included in the market | ||
value of the property for the preceding tax year. Repairs to or | ||
ordinary maintenance of an existing structure or the grounds or | ||
another feature of property are not considered an improvement to | ||
the property for purposes of this subsection. | ||
(d) The market value of a parcel of commercial or | ||
residential real property appraised as provided by this section is | ||
considered to be the market value of the property for purposes of | ||
the studies required by Chapter 5 of this code and by Section | ||
403.302, Government Code. A parcel of commercial or residential | ||
real property appraised as provided by this section may not be used | ||
as a comparable property or a ratio study sample for the purpose of | ||
determining whether another property is unequally appraised. | ||
SECTION 2. This Act applies only to the appraisal of a | ||
parcel of commercial or residential real property for ad valorem | ||
tax purposes for a tax year beginning on or after the effective date | ||
of this Act. | ||
SECTION 3. This Act takes effect January 1, 2018. |