By: Davis S.B. No. 1342
A BILL TO BE ENTITLED
AN ACT
relating to evidence of inequality of appraisal in judicial appeals
of appraisal review board orders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sec. 42.26, Tax Code, is amended by amending
Subsections (a) and (b) to read as follows:
(a) The district court shall grant relief on the ground that
a property is appraised unequally if:
(1) the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of a reasonable and
representative sample of other properties in the appraisal
district;
(2) the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of a sample of
properties in the appraisal district consisting of a reasonable
number of other properties similarly situated to, or of the same
general kind or character as, the property subject to the appeal;
[or]
(3) the appraised value of the property exceeds the
median level of appraisal [appraised value] of a reasonable and
representative sample [number] of comparable properties
appropriately adjusted; or.
(4) if:
A) the property qualifies as the owner's residence homestead
under Section 11.13; or
(B) the appraised or market value, as applicable,
of the property as determined by the order is $1 million or less,
the appraised value of the property exceeds the median appraised
value of a reasonable sample [number] of comparable properties
appropriately adjusted. The comptroller shall by rule establish
standards for development and calibration of adjustments for
industrial, petrochemical refining and processing, and utility
properties.
(a-1) For the purposes of subsections (a)(3) and (a)(4),
whether a property is comparable to the subject property shall be
determined based on similarities with regard to location, highest
and best use, square footage of the lot and improvements, property
age, property condition, property access, amenities, views,
income, operating expenses, occupancy, economic conditions, and
the existence of easements, deed restrictions, or other legal
burdens affecting marketability. Improved property is not
comparable to unimproved property.
(a-2) For the purposes of subsections (a)(4), adjustments
must be developed and calibrated in compliance with generally
accepted appraisal standards.
(b) If a property owner is entitled to relief under
Subsection (a)(1), the court shall order the property's appraised
value changed to the value as calculated on the basis of the median
level of appraisal according to Subsection (a)(1). If a property
owner is entitled to relief under Subsection (a)(2), the court
shall order the property's appraised value changed to the value
calculated on the basis of the median level of appraisal according
to Subsection (a)(2). If a property owner is entitled to relief
under Subsection (a)(3), the court shall order the property's
appraised value changed to the value calculated on the basis of the
median appraised value according to Subsection (a)(3). If a
property owner is entitled to relief under Subsection (a)(4), the
court shall order the property's appraised value changed to the
value calculated on the basis of the median appraised value
according to Subsection (a)(4). If a property owner is entitled to
relief under more than one subdivision of Subsection (a), the court
shall order the property's appraised value changed to the value
that in the judgment of the court, best reflects the level of
appraisal of other property in the appraisal district [results in
the lowest appraised value]. The court shall determine each
applicable median level of appraisal or median appraised value
according to law, and is not required to adopt the median level of
appraisal or median appraised value proposed by a party to the
appeal. The court may not limit or deny relief to the property owner
entitled to relief under a subdivision of Subsection (a) because
the appraised value determined according to another subdivision of
Subsection (a) results in a higher appraised value.
SECTION 2. This bill takes effect September 1, 2013.