By: Howard of Fort Bend H.B. No. 2321
A BILL TO BE ENTITLED
AN ACT
relating to requiring the full cash value of property, calculated
only when property is purchased, constructed, or exchanged, be used
for purposes of ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1.04(7), (8), and (9), Tax Code, are
amended to read as follows:
(7) "Market value" means full cash value as shown on
the 2009 tax bill as market value and, thereafter, the appraised
value of real property when purchased, when newly constructed, or
at the time of a change in ownership after the 2009 assessment and
shall be referred to as full cash value. Real property not assessed
for taxation at the 2009 full cash value may be reassessed to
reflect that valuation [the price at which a property would
transfer for cash or its equivalent under prevailing market
conditions if:
[(A) exposed for sale in the open market with a
reasonable time for the seller to find a purchaser;
[(B) both the seller and the purchaser know of
all the uses and purposes to which the property is adapted and for
which it is capable of being used and of the enforceable
restrictions on its use; and
[(C) both the seller and purchaser seek to
maximize their gains and neither is in a position to take advantage
of the exigencies of the other].
(8) "Appraised value" means full cash [the] value
[determined as provided by Chapter 23 of this code].
(9) "Assessed value" means, for the purposes of
assessment of property for taxation, the amount determined by
multiplying the appraised value by the applicable assessment ratio,
but, for the purposes of determining the debt limitation imposed by
Article III, Section 52, of the Texas Constitution, shall mean the
full cash [market] value of the property recorded by the chief
appraiser.
SECTION 2. Chapter 1, Tax Code, is amended by adding Section
1.031 to read as follows:
Sec. 1.031. SPECIAL TAX CODE BOARD. (a) If the
constitutional amendment proposed by the 81st Legislature, Regular
Session, 2009, requiring that taxation be fair and equal and that
the full cash value of property, calculated only when property is
purchased, constructed, or exchanged, be used for purposes of ad
valorem taxation is approved by the voters, a nine-member board is
commissioned to recommend amendments and revisions to this code to
efficiently and effectively implement the amendment.
(b) The governor shall appoint the members of the board.
(c) The board shall make recommendations to the legislature
on the consolidation of county tax and appraisal district
operations where possible in order to provide the best cost-benefit
to local governments.
(d) The board may adopt rules necessary to implement the
amendment, including rules requiring property sales to be reported
to a consolidated tax assessment office and maintained as
confidential records.
(e) A person involved in performing a function related to
the appraisal, assessment, or collection of ad valorem taxation may
request advice from the board regarding the person's duties under
the full cash value tax system.
(f) The board shall prepare for consideration by the 82nd
Legislature, Regular Session, 2011, a proposed revision of the Tax
Code as required by this section.
(g) Not later than January 1, 2012, the board shall provide
a report to the governor, lieutenant governor, speaker of the house
of representatives, comptroller, Legislative Budget Board, and
legislature regarding the rules, recommendations, and any other
relevant information as determined by the board.
(h) This section expires September 1, 2015.
SECTION 3. On approval by the voters of the constitutional
amendment proposed by the 82nd Legislature, Regular Session, 2011,
requiring that taxation be fair and equal and that the full cash
value of property, calculated only when property is purchased,
constructed, or exchanged, be used for purposes of ad valorem
taxation, the comptroller shall cease:
(1) reviewing appraisal district operations; and
(2) performing any property value ratio study,
including a study under Section 403.302, Government Code.
SECTION 4. This Act takes effect January 1, 2012, but only
if the constitutional amendment proposed by the 81st Legislature,
Regular Session, 2009, requiring that taxation be fair and equal
and that the full cash value of property, calculated only when
property is purchased, constructed, or exchanged, be used for
purposes of ad valorem taxation is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.