Texas 2009 - 81st Regular

Texas House Bill HB3779 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R10916 UM-F
2	2	By: Howard of Fort Bend H.B. No. 3779
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to requiring the full cash value of property, calculated
8	8	only when property is purchased, constructed, or exchanged, be used
9	9	for purposes of ad valorem taxation.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Sections 1.04(7), (8), and (9), Tax Code, are
12	12	amended to read as follows:
13	13	(7) "Market value" means full cash value as shown on
14	14	the 2009 tax bill as market value and, thereafter, the appraised
15	15	value of real property when purchased, when newly constructed, or
16	16	at the time of a change in ownership after the 2009 assessment and
17	17	shall be referred to as full cash value. Real property not assessed
18	18	for taxation at the 2009 full cash value may be reassessed to
19	19	reflect that valuation [the price at which a property would
20	20	transfer for cash or its equivalent under prevailing market
21	21	conditions if:
22	22	[(A) exposed for sale in the open market with a
23	23	reasonable time for the seller to find a purchaser;
24	24	[(B) both the seller and the purchaser know of
25	25	all the uses and purposes to which the property is adapted and for
26	26	which it is capable of being used and of the enforceable
27	27	restrictions on its use; and
28	28	[(C) both the seller and purchaser seek to
29	29	maximize their gains and neither is in a position to take advantage
30	30	of the exigencies of the other].
31	31	(8) "Appraised value" means full cash [the] value
32	32	[determined as provided by Chapter 23 of this code].
33	33	(9) "Assessed value" means, for the purposes of
34	34	assessment of property for taxation, the amount determined by
35	35	multiplying the appraised value by the applicable assessment ratio,
36	36	but, for the purposes of determining the debt limitation imposed by
37	37	Article III, Section 52, of the Texas Constitution, shall mean the
38	38	full cash [market] value of the property recorded by the chief
39	39	appraiser.
40	40	SECTION 2. Chapter 1, Tax Code, is amended by adding Section
41	41	1.031 to read as follows:
42	42	Sec. 1.031. SPECIAL TAX CODE BOARD. (a) If the
43	43	constitutional amendment proposed by the 81st Legislature, Regular
44	44	Session, 2009, requiring that taxation be fair and equal and that
45	45	the full cash value of property, calculated only when property is
46	46	purchased, constructed, or exchanged, be used for purposes of ad
47	47	valorem taxation is approved by the voters, a nine-member board is
48	48	commissioned to recommend amendments and revisions to this code to
49	49	efficiently and effectively implement the amendment.
50	50	(b) The governor shall appoint the members of the board.
51	51	(c) The board shall make recommendations to the legislature
52	52	on the consolidation of county tax and appraisal district
53	53	operations where possible in order to provide the best cost-benefit
54	54	to local governments.
55	55	(d) The board may adopt rules necessary to implement the
56	56	amendment, including rules requiring property sales to be reported
57	57	to a consolidated tax assessment office and maintained as
58	58	confidential records.
59	59	(e) A person involved in performing a function related to
60	60	the appraisal, assessment, or collection of ad valorem taxation may
61	61	request advice from the board regarding the person's duties under
62	62	the full cash value tax system.
63	63	(f) The board shall prepare for consideration by the 82nd
64	64	Legislature, Regular Session, 2011, a proposed revision of the Tax
65	65	Code as required by this section.
66	66	(g) Not later than January 1, 2010, the board shall provide
67	67	a report to the governor, lieutenant governor, speaker of the house
68	68	of representatives, comptroller, Legislative Budget Board, and
69	69	legislature regarding the rules, recommendations, and any other
70	70	relevant information as determined by the board.
71	71	(h) This section expires September 1, 2013.
72	72	SECTION 3. On approval by the voters of the constitutional
73	73	amendment proposed by the 81st Legislature, Regular Session, 2009,
74	74	requiring that taxation be fair and equal and that the full cash
75	75	value of property, calculated only when property is purchased,
76	76	constructed, or exchanged, be used for purposes of ad valorem
77	77	taxation, the comptroller shall cease:
78	78	(1) reviewing appraisal district operations; and
79	79	(2) performing any property value ratio study,
80	80	including a study under Section 403.302, Government Code.
81	81	SECTION 4. This Act takes effect January 1, 2010, but only
82	82	if the constitutional amendment proposed by the 81st Legislature,
83	83	Regular Session, 2009, requiring that taxation be fair and equal
84	84	and that the full cash value of property, calculated only when
85	85	property is purchased, constructed, or exchanged, be used for
86	86	purposes of ad valorem taxation is approved by the voters. If that
87	87	amendment is not approved by the voters, this Act has no effect.