By: Otto, et al. H.B. No. 3454
A BILL TO BE ENTITLED
AN ACT
relating to the determination of the value of property for ad
valorem tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.01(b), Tax Code, is amended to read as
follows:
(b) The market value of property shall be determined by the
application of generally accepted appraisal methods and
techniques. If the appraisal district determines the appraised
value of a property using mass appraisal standards, the mass
appraisal standards must comply with the Uniform Standards of
Professional Appraisal Practice. The same or similar appraisal
methods and techniques shall be used in appraising the same or
similar kinds of property. However, each property shall be
appraised based upon the individual characteristics that affect the
property's market value, and all available evidence that is
specific to the value of the property shall be taken into account in
determining the property's market value.
SECTION 2. Section 23.013, Tax Code, is amended to read as
follows:
Sec. 23.013. MARKET DATA COMPARISON METHOD OF APPRAISAL.
(a) If the chief appraiser uses the market data comparison method of
appraisal to determine the market value of real property, the chief
appraiser shall use comparable sales data and shall adjust the
comparable sales to the subject property.
(b) A sale of real property 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 and is appropriately adjusted for changes in the market
value over the time period between the dates of the sale and the
appraisal. Whether a property is comparable to the subject
property shall be determined based on similarities with regard to
location, square footage of the lot and improvements, property age,
property condition, property access, amenities, views, income,
operating expenses, occupancy, and the existence of easements, deed
restrictions, or other legal burdens affecting marketability.
SECTION 3. Section 23.24, Tax Code, is amended to read as
follows:
Sec. 23.24. FURNITURE, FIXTURES, AND EQUIPMENT. (a) If
real property is appraised by a method that takes into account the
value of furniture, fixtures, and equipment in or on the real
property, the furniture, fixtures, and equipment shall not be
subject to additional appraisal or taxation as personal property.
(b) In determining the market value of the real property,
the chief appraiser may not separately appraise or take into
account any personal property valued as a portion of the income of
the real property, and the market value of the real property must
include the combined value of the real property and the personal
property.
SECTION 4. (a) Subchapter D, Chapter 23, Tax Code, is
amended by adding Section 23.522 to read as follows:
Sec. 23.522. TEMPORARY CESSATION OF AGRICULTURAL USE DURING
DROUGHT. The eligibility of land for appraisal under this
subchapter does not end because the land ceases to be devoted
principally to agricultural use to the degree of intensity
generally accepted in the area if:
(1) a drought declared by the governor creates an
agricultural necessity to extend the normal time the land remains
out of agricultural production; and
(2) the owner of the land intends that the use of the
land in that manner and to that degree of intensity be resumed when
the declared drought ceases.
(b) Section 23.522, Tax Code, as added by this Act, applies
only to the appraisal of land for ad valorem tax purposes for a tax
year that begins on or after the effective date of this Act.
SECTION 5. (a) Section 41A.01, Tax Code, is amended to read
as follows:
Sec. 41A.01. RIGHT OF APPEAL BY PROPERTY OWNER. As an
alternative to filing an appeal under Section 42.01, a property
owner is entitled to appeal through binding arbitration under this
chapter an appraisal review board order determining a protest
brought under Section 41.41(a)(1) or (2) concerning the appraised
or market value of [real] property if[:
[(1)] the appraised or market value, as applicable, of
the property as determined by the order is $1 million or less[; and
[(2) the appeal does not involve any matter in dispute
other than the determination of the appraised or market value of the
property].
(b) Section 41A.03(a), Tax Code, is amended to read as
follows:
(a) To appeal an appraisal review board order under this
chapter, a property owner must file with the appraisal district not
later than the 45th day after the date the property owner receives
notice of the order:
(1) a completed request for binding arbitration under
this chapter in the form prescribed by Section 41A.04; and
(2) an arbitration deposit [in the amount of $500,]
made payable to the comptroller in the amount of:
(A) $500; or
(B) $250, if the property owner requests
expedited arbitration under Section 41A.031.
(c) Effective September 1, 2012, Section 41A.03(a), Tax
Code, is amended to read as follows:
(a) To appeal an appraisal review board order under this
chapter, a property owner must file with the appraisal district not
later than the 45th day after the date the property owner receives
notice of the order:
(1) a completed request for binding arbitration under
this chapter in the form prescribed by Section 41A.04; and
(2) an arbitration deposit in the amount of $500, made
payable to the comptroller.
(d) Chapter 41A, Tax Code, is amended by adding Section
41A.031 to read as follows:
Sec. 41A.031. EXPEDITED ARBITRATION. (a) A property owner
is entitled to an expedited arbitration if the property owner
includes a request for expedited arbitration in the request filed
under Section 41A.03 and pays the required deposit.
(b) An expedited arbitration must provide for not more than
one hour of argument and testimony on behalf of the property owner
and not more than one hour of argument and testimony on behalf of
the appraisal district.
(c) The comptroller shall adopt rules and processes to
assist in the conduct of an expedited arbitration, including rules
relating to the evidence required to be produced by each party.
(d) This section expires September 1, 2012.
(e) Section 41A.08, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) In an arbitration proceeding under this chapter brought
on the ground of unequal appraisal of property, the protest shall be
determined in accordance with Section 42.26(a), except that a party
may not present evidence relating to the median level of appraisal
or the median appraised value of more than five other properties in
the appraisal district.
(f) The change in law made by this section applies only to an
appeal under Chapter 41A, Tax Code, that is filed on or after the
effective date of this Act. An appeal under Chapter 41A, Tax Code,
that is filed before the effective date of this Act is governed by
the law in effect on the date the appeal was filed, and the former
law is continued in effect for that purpose.
(g) Except as otherwise provided by this section, this
section takes effect September 1, 2009.
SECTION 6. Sections 6.15(a) and (b), Tax Code, are amended
to read as follows:
(a) A member of the board of directors of an appraisal
district commits an offense if the member directly or indirectly
communicates with the chief appraiser regarding [on any matter
relating to] the appraisal of property by the appraisal district,
except in:
(1) an open meeting of the appraisal district board of
directors or another public forum; or
(2) a closed meeting of the board of directors held to
consult with the board's attorney about pending litigation, at
which the chief appraiser's presence is necessary for full
communication between the board and the board's attorney.
(b) A chief appraiser commits an offense if the chief
appraiser directly or indirectly communicates with a member of the
board of directors of the appraisal district regarding [on any
matter relating to] the appraisal of property by the appraisal
district, except in:
(1) an open meeting of the board of directors or
another public forum; or
(2) a closed meeting of the board of directors held to
consult with the board's attorney about pending litigation, at
which the chief appraiser's presence is necessary for full
communication between the board and the board's attorney.
SECTION 7. Section 23.014, Tax Code, is repealed.
SECTION 8. This Act applies only to the appraisal of
property for a tax year beginning on or after the effective date of
this Act.
SECTION 9. This Act takes effect January 1, 2010.