84R8994 CJC-F
By: Cook H.B. No. 3767
A BILL TO BE ENTITLED
AN ACT
relating to ad valorem tax protests and appeals on the ground of the
unequal appraisal of property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 41.43, Tax Code, is amended by amending
Subsection (b) and adding Subsections (e) and (f) to read as
follows:
(b) A protest on the ground of unequal appraisal of property
shall be determined in favor of the protesting party unless the
appraisal district establishes that:
(1) the appraisal ratio of the property is equal to or
less than 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 is equal to or
less than 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 protest; or
(3) the appraisal ratio [appraised value] of the
property is equal to or less than the median appraisal ratio
[appraised value] of a reasonable number of comparable properties
in the appraisal district appropriately adjusted.
(e) For purposes of Subsection (b)(3):
(1) a determination that property is comparable to
another property must be based on the similarity of the properties
with regard to the characteristics described by Section 23.013(d);
(2) adjustments to be applied to a comparable property
for purposes of determining the appraisal ratio of that property
must be developed and quantified in accordance with generally
accepted appraisal standards that are appropriate relative to the
method of appraisal used by the chief appraiser to determine the
value of the property; and
(3) calculation of the market value of the property
that is the subject of the protest or of a comparable property for
the purpose of determining the property's appraisal ratio must be
based on the appraised value of the property as shown in the
appraisal records submitted to the appraisal review board under
Section 25.22 or 25.23.
(f) The chief appraiser may disclose confidential
information for the purpose of meeting the appraisal district's
burden of proof under this section if the information does not
identify:
(1) a specific property; or
(2) a property owner.
SECTION 2. Section 42.26, Tax Code, is amended by amending
Subsections (a) and (b) and adding Subsections (e) and (f) 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 by at
least 10 percent the median appraised value of a reasonable number
of comparable properties in the appraisal district appropriately
adjusted.
(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 more than one
subdivision of Subsection (a), the court shall order the property's
appraised value changed to the value determined under the
subdivision under which the owner is entitled to relief that, in the
judgment of the court, reflects the most appropriate [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.]
(e) For purposes of Subsection (a)(3):
(1) a determination that property is comparable to
another property must be based on the similarity of the properties
with regard to the characteristics described by Section 23.013(d);
(2) adjustments must be developed and quantified in
accordance with generally accepted appraisal standards that are
appropriate relative to the method of appraisal used by the chief
appraiser to determine the value of the property; and
(3) calculation of the median appraised value of
comparable properties must be based on the appraised value of each
comparable property as shown in the appraisal records certified by
the chief appraiser under Section 26.01.
(f) The chief appraiser may disclose confidential
information for the purpose of meeting the appraisal district's
burden of proof under this section if the information does not
identify:
(1) a specific property; or
(2) a property owner.
SECTION 3. Section 41.43, Tax Code, as amended by this Act,
applies only to a protest under Chapter 41, Tax Code, for which a
notice of protest is filed on or after the effective date of this
Act. A protest under Chapter 41, Tax Code, for which a notice of
protest was filed before the effective date of this Act is governed
by the law in effect on the date the notice of protest was filed, and
the former law is continued in effect for that purpose.
SECTION 4. Section 42.26, Tax Code, as amended by this Act,
applies only to an appeal under Chapter 42, Tax Code, for which a
petition for review is filed on or after the effective date of this
Act. An appeal under Chapter 42, Tax Code, for which a petition for
review was filed before the effective date of this Act is governed
by the law in effect on the date the petition for review was filed,
and the former law is continued in effect for that purpose.
SECTION 5. This Act takes effect January 1, 2016.