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Texas House Bill HB8

Texas 2009 - 81st Regular

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11 81R12951 JD-F
22 By: Otto H.B. No. 8
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to certain studies and reviews of appraisal districts
88 conducted by the comptroller of public accounts.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Sections 403.3011(1), (2), and (4), Government
1111 Code, are amended to read as follows:
1212 (1) "Study" ["Annual study"] means a study conducted
1313 under Section 403.302.
1414 (2) "Eligible school district" means a school district
1515 for which the comptroller has determined the following:
1616 (A) in the most recent [annual] study, the local
1717 value is invalid under Section 403.302(c) and does not exceed the
1818 state value for the school district determined in the [annual]
1919 study;
2020 (B) in the two studies [annual study for each of
2121 the two years] preceding the most recent [annual] study, the school
2222 district's local value was valid under Section 403.302(c); [and]
2323 (C) in the most recent [annual] study, the
2424 aggregate local value of all of the categories of property sampled
2525 by the comptroller is not less than 90 percent of the lower limit of
2626 the margin of error as determined by the comptroller of the
2727 aggregate value as determined by the comptroller of all of the
2828 categories of property sampled by the comptroller; and
2929 (D) the appraisal district that appraises
3030 property for the school district was in compliance with the scoring
3131 requirement of the comptroller's most recent review of the
3232 appraisal district conducted under Section 5.102, Tax Code.
3333 (4) "State value" means the value of property in a
3434 school district as determined in a [the annual] study.
3535 SECTION 2. Section 403.302, Government Code, is amended by
3636 amending Subsections (a), (c), (c-1), (f), (h), (i), and (l) and
3737 adding Subsections (a-1), (a-2), (m), (n), and (o) to read as
3838 follows:
3939 (a) The comptroller shall conduct a [an annual] study using
4040 comparable sales and generally accepted auditing and sampling
4141 techniques to determine the total taxable value of all property in
4242 each school district. The study shall determine the taxable value
4343 of all property and of each category of property in the district and
4444 the productivity value of all land that qualifies for appraisal on
4545 the basis of its productive capacity and for which the owner has
4646 applied for and received a productivity appraisal. The comptroller
4747 shall make appropriate adjustments in the study to account for
4848 actions taken under Chapter 41, Education Code.
4949 (a-1) The comptroller shall conduct a study:
5050 (1) at least every two years in each school district
5151 for which the most recent study resulted in a determination by the
5252 comptroller that the school district's local value was valid; and
5353 (2) each year in a school district for which the most
5454 recent study resulted in a determination by the comptroller that
5555 the school district's local value was not valid.
5656 (a-2) If in any year the comptroller does not conduct a
5757 study, the school district's local value for that year is
5858 considered to be valid.
5959 (c) If after conducting the [annual] study the comptroller
6060 determines that the local value for a school district is valid, the
6161 local value is presumed to represent taxable value for the school
6262 district. In the absence of that presumption, taxable value for a
6363 school district is the state value for the school district
6464 determined by the comptroller under Subsections (a) and (b) unless
6565 the local value exceeds the state value, in which case the taxable
6666 value for the school district is the district's local value. In
6767 determining whether the local value for a school district is valid,
6868 the comptroller shall use a margin of error that does not exceed
6969 five percent unless the comptroller determines that the size of the
7070 sample of properties necessary to make the determination makes the
7171 use of such a margin of error not feasible, in which case the
7272 comptroller may use a larger margin of error.
7373 (c-1) This subsection applies only to a school district
7474 whose central administrative office is located in a county with a
7575 population of 9,000 or less and a total area of more than 6,000
7676 square miles. If after conducting the [annual] study for a tax
7777 year the comptroller determines that the local value for a school
7878 district is not valid, the comptroller shall adjust the taxable
7979 value determined under Subsections (a) and (b) as follows:
8080 (1) for each category of property sampled and tested
8181 by the comptroller in the school district, the comptroller shall
8282 use the weighted mean appraisal ratio determined by the study,
8383 unless the ratio is more than four percentage points lower than the
8484 weighted mean appraisal ratio determined by the comptroller for
8585 that category of property in the immediately preceding study, in
8686 which case the comptroller shall use the weighted mean appraisal
8787 ratio determined in the immediately preceding study minus four
8888 percentage points;
8989 (2) the comptroller shall use the category weighted
9090 mean appraisal ratios as adjusted under Subdivision (1) to
9191 establish a value estimate for each category of property sampled
9292 and tested by the comptroller in the school district; and
9393 (3) the value estimates established under Subdivision
9494 (2), together with the local tax roll value for any categories not
9595 sampled and tested by the comptroller, less total deductions
9696 determined by the comptroller, determine the taxable value for the
9797 school district.
9898 (f) The study shall determine the values as of January 1 of
9999 each year:
100100 (1) for a school district in which a study was
101101 conducted according to the results of the study; and
102102 (2) for a school district in which a study was not
103103 conducted according to the market value determined by the appraisal
104104 district that appraises property for the district, less the amounts
105105 specified by Subsection (d).
106106 (h) On request of the commissioner of education or a school
107107 district, the comptroller may audit the total taxable value of
108108 property in a school district and may revise the [annual] study
109109 findings. The request for audit is limited to corrections and
110110 changes in a school district's appraisal roll that occurred after
111111 preliminary certification of the [annual] study findings by the
112112 comptroller. Except as otherwise provided by this subsection, the
113113 request for audit must be filed with the comptroller not later than
114114 the third anniversary of the date of the final certification of the
115115 [annual] study findings. The request for audit may be filed not
116116 later than the first anniversary of the date the chief appraiser
117117 certifies a change to the appraisal roll if the chief appraiser
118118 corrects the appraisal roll under Section 25.25 or 42.41, Tax Code,
119119 and the change results in a material reduction in the total taxable
120120 value of property in the school district. The comptroller shall
121121 certify the findings of the audit to the commissioner of education.
122122 (i) If the comptroller determines in the [annual] study that
123123 the market value of property in a school district as determined by
124124 the appraisal district that appraises property for the school
125125 district, less the total of the amounts and values listed in
126126 Subsection (d) as determined by that appraisal district, is valid,
127127 the comptroller, in determining the taxable value of property in
128128 the school district under Subsection (d), shall for purposes of
129129 Subsection (d)(14) subtract from the market value as determined by
130130 the appraisal district of residence homesteads to which Section
131131 23.23, Tax Code, applies the amount by which that amount exceeds the
132132 appraised value of those properties as calculated by the appraisal
133133 district under Section 23.23, Tax Code. If the comptroller
134134 determines in the [annual] study that the market value of property
135135 in a school district as determined by the appraisal district that
136136 appraises property for the school district, less the total of the
137137 amounts and values listed in Subsection (d) as determined by that
138138 appraisal district, is not valid, the comptroller, in determining
139139 the taxable value of property in the school district under
140140 Subsection (d), shall for purposes of Subsection (d)(14) subtract
141141 from the market value as estimated by the comptroller of residence
142142 homesteads to which Section 23.23, Tax Code, applies the amount by
143143 which that amount exceeds the appraised value of those properties
144144 as calculated by the appraisal district under Section 23.23, Tax
145145 Code.
146146 (l) If after conducting the [annual] study for [the year
147147 2003 or] a [subsequent] year the comptroller determines that a
148148 school district is an eligible school district, for that year and
149149 the following year the taxable value for the school district is the
150150 district's local value. [Not later than the first anniversary of
151151 the date of the determination that a school district is an eligible
152152 school district, the comptroller shall complete an appraisal
153153 standards review as provided by Section 5.102, Tax Code, of each
154154 appraisal district that appraises property for the school
155155 district.]
156156 (m) The Comptroller's Property Value Study Advisory
157157 Committee is created. The committee is composed of:
158158 (1) one member of the house of representatives,
159159 appointed by the speaker of the house of representatives;
160160 (2) one member of the senate, appointed by the
161161 lieutenant governor;
162162 (3) two members who represent appraisal districts,
163163 appointed by the comptroller;
164164 (4) two members who represent school districts,
165165 appointed by the comptroller; and
166166 (5) three members appointed by the comptroller who are
167167 residents of this state and are school district taxpayers or have
168168 expertise in school district taxation or ratio studies.
169169 (n) Chapter 2110 does not apply to the size, composition, or
170170 duration of the Comptroller's Property Value Study Advisory
171171 Committee.
172172 (o) The comptroller shall adopt rules governing the conduct
173173 of the study after consultation with the Comptroller's Property
174174 Value Study Advisory Committee.
175175 SECTION 3. The heading to Section 403.304, Government Code,
176176 is amended to read as follows:
177177 Sec. 403.304. COOPERATION WITH COMPTROLLER;
178178 CONFIDENTIALITY.
179179 SECTION 4. Section 403.304, Government Code, is amended by
180180 amending Subsection (a) and adding Subsection (a-1) to read as
181181 follows:
182182 (a) A school district, appraisal district, or other
183183 governmental entity in this state shall promptly comply with an
184184 oral or written request from the comptroller for information to be
185185 used in conducting a study, including information that is made
186186 confidential by Chapter 552 of this code, Section 22.27, Tax Code,
187187 or another law of this state.
188188 (a-1) All information the comptroller obtains from a
189189 person, other than a government or governmental subdivision or
190190 agency, under an assurance that the information will be kept
191191 confidential, in the course of conducting a study [of school
192192 district values] is confidential and may not be disclosed except as
193193 provided in Subsection (b).
194194 SECTION 5. Section 5.07(c), Tax Code, is amended to read as
195195 follows:
196196 (c) The comptroller shall also prescribe a uniform record
197197 system to be used by all appraisal districts for the purpose of
198198 submitting data to be used in the [annual] studies required by
199199 Section 5.10 of this code and by Section 403.302, Government Code.
200200 The record system shall include a compilation of information
201201 concerning sales of real property within the boundaries of the
202202 appraisal district. The sales information maintained in the
203203 uniform record system shall be submitted annually in a form
204204 prescribed by the comptroller.
205205 SECTION 6. Section 5.10(a), Tax Code, is amended to read as
206206 follows:
207207 (a) At least once every two years, the [The] comptroller
208208 shall conduct a [an annual] study in each appraisal district to
209209 determine the degree of uniformity of and the median level of
210210 appraisals by the appraisal district within each major category of
211211 property. The comptroller shall publish a report of the findings of
212212 the study, including in the report the median levels of appraisal
213213 for each major category of property, the coefficient of dispersion
214214 around the median level of appraisal for each major category of
215215 property, and any other standard statistical measures that the
216216 comptroller considers appropriate. In conducting the study, the
217217 comptroller shall apply appropriate standard statistical analysis
218218 techniques to data collected as part of the [annual] study of school
219219 district taxable values required by Section 403.302, Government
220220 Code.
221221 SECTION 7. Section 5.102, Tax Code, is amended to read as
222222 follows:
223223 Sec. 5.102. REVIEW OF APPRAISAL DISTRICTS [STANDARDS]. (a)
224224 At least once every two years, the [The] comptroller shall review
225225 the governance of each appraisal district, taxpayer assistance
226226 provided, and the operating and appraisal standards, procedures,
227227 and methodology used by each appraisal district [that appraises
228228 property for an eligible school district as defined by Section
229229 403.3011, Government Code], to determine compliance with generally
230230 accepted [appraisal] standards, procedures, and methodology [and
231231 practices]. After consultation with the advisory committee created
232232 under Section 403.302, Government Code, the [The] comptroller by
233233 rule may establish procedures and standards for conducting and
234234 scoring the review.
235235 (b) In conducting the review, the comptroller is entitled to
236236 access to all records and reports of the appraisal district, to copy
237237 or print any record or report of the appraisal district, and to the
238238 assistance of the appraisal district's officers and employees.
239239 (c) At the conclusion of the review, the comptroller shall,
240240 in writing, notify the appraisal district concerning its
241241 performance in the review. If the review results in a finding that
242242 an appraisal district is not in compliance with generally accepted
243243 [appraisal] standards, procedures, and methodology [and
244244 practices], the comptroller shall deliver a report that details the
245245 comptroller's findings and recommendations for improvement to:
246246 (1) the appraisal district's chief appraiser and board
247247 of directors; and
248248 (2) the superintendent and board of trustees of each
249249 school district participating in the appraisal district.
250250 (d) If the appraisal district fails to comply with the
251251 recommendations in the report and the comptroller finds that the
252252 board of directors of the appraisal district failed to take
253253 remedial action reasonably designed to ensure substantial
254254 compliance with each recommendation in the report before the first
255255 anniversary of the date the report was issued, the comptroller
256256 shall notify the Board of Tax Professional Examiners, or a
257257 successor to the board, which shall take action necessary to ensure
258258 that the recommendations in the report are implemented as soon as
259259 practicable [judge of each district court in the county for which
260260 the appraisal district is established, who shall appoint a board of
261261 conservators consisting of five members to implement the
262262 recommendations. The board of conservators shall exercise
263263 supervision and control over the operations of the appraisal
264264 district until the comptroller determines under Section 403.302,
265265 Government Code, that in the same year the taxable value of each
266266 school district for which the appraisal district appraises property
267267 is the local value for the school district. The appraisal district
268268 shall bear the costs related to the supervision and control of the
269269 district by the board of conservators].
270270 (e) Before February 1 of the year following the year in
271271 which the Board of Tax Professional Examiners, or its successor,
272272 takes action under Subsection (d), and with the assistance of the
273273 comptroller, the board shall determine whether the recommendations
274274 in the most recent report have been substantially implemented. The
275275 presiding officer of the board shall notify the chief appraiser and
276276 the board of directors of the appraisal district in writing of the
277277 board's determination.
278278 SECTION 8. Sections 5.12(a), (d), and (e), Tax Code, are
279279 amended to read as follows:
280280 (a) The comptroller shall audit the performance of an
281281 appraisal district if one or more of the following conditions exist
282282 according to each of two consecutive [annual] studies conducted by
283283 the comptroller under Section 5.10 [of this code], regardless of
284284 whether the prescribed condition or conditions that exist are the
285285 same for each of those studies:
286286 (1) the overall median level of appraisal for all
287287 property in the district for which the comptroller determines a
288288 median level of appraisal is less than 0.75;
289289 (2) the coefficient of dispersion around the overall
290290 median level of appraisal of the properties used to determine the
291291 overall median level of appraisal for all property in the district
292292 for which the comptroller determines a median level of appraisal
293293 exceeds 0.30; or
294294 (3) the difference between the median levels of
295295 appraisal for any two classes of property in the district for which
296296 the comptroller determines a median level of appraisal is more than
297297 0.45.
298298 (d) A request for a performance audit of an appraisal
299299 district may not be made under Subsection (b) or (c) [of this
300300 section] if according to each of the two most recently published
301301 [annual] studies conducted by the comptroller under Section 5.10
302302 [of this code]:
303303 (1) the overall median level of appraisal for all
304304 property in the district for which the comptroller determines a
305305 median level of appraisal is more than 0.90 and less than 1.10;
306306 (2) the coefficient of dispersion around the overall
307307 median level of appraisal of the properties used to determine the
308308 overall median level of appraisal for all property in the district
309309 for which the comptroller determines a median level of appraisal is
310310 less than 0.15; and
311311 (3) the difference between the highest and lowest
312312 median levels of appraisal in the district for the classes of
313313 property for which the comptroller determines a median level of
314314 appraisal is less than 0.20.
315315 (e) A request for a performance audit of an appraisal
316316 district may not be made under Subsection (b) or (c) [of this
317317 section]:
318318 (1) during the two years immediately following the
319319 publication of the second of two consecutive [annual] studies
320320 according to which the comptroller is required to conduct an audit
321321 of the district under Subsection (a) [of this section]; [or]
322322 (2) during the year immediately following the date the
323323 results of an audit of the district conducted by the comptroller
324324 under Subsection (a) [of this section] are reported to the chief
325325 appraiser of the district; or
326326 (3) during a year in which the comptroller is
327327 conducting a review of the district under Section 5.102.
328328 SECTION 9. Section 5.13(a), Tax Code, is amended to read as
329329 follows:
330330 (a) The comptroller shall complete an audit required by
331331 Section 5.12(a) [of this code] within two years after the date of
332332 the publication of the second of the two [annual] studies the
333333 results of which required the audit to be conducted. The
334334 comptroller shall complete an audit requested under Section 5.12(b)
335335 or (c) [of this code] as soon as practicable after the request is
336336 made.
337337 SECTION 10. Section 41A.12, Tax Code, is amended to read as
338338 follows:
339339 Sec. 41A.12. USE OF PROPERTIES AS SAMPLES. An arbitrator's
340340 determination of market value under this chapter is the market
341341 value of the property subject to the appeal for the purposes of the
342342 [annual] study conducted under Section 403.302, Government Code.
343343 SECTION 11. Sections 5.101 and 5.12(g), Tax Code, are
344344 repealed.
345345 SECTION 12. As soon as possible after the effective date of
346346 this Act, the speaker of the house of representatives, lieutenant
347347 governor, and comptroller shall appoint members to the
348348 Comptroller's Property Value Study Advisory Committee in
349349 accordance with Section 403.302(m), Government Code, as added by
350350 this Act.
351351 SECTION 13. The change in law made by this Act applies only
352352 to a study conducted under Section 5.10, Tax Code, or Section
353353 403.302, Government Code, or a review conducted under Section
354354 5.102, Tax Code, for a year that begins on or after January 1, 2009.
355355 A study or review for a year that began before that date is covered
356356 by the law in effect immediately before the effective date of this
357357 Act, and the former law is continued in effect for that purpose.
358358 SECTION 14. This Act takes effect January 1, 2010.