84R4689 TJB-D
By: Watson S.B. No. 280
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 Subsection (e) 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 appraised value of the property is equal to or
less than the median appraised value of a reasonable number of
comparable properties in the appraisal district appropriately
adjusted.
(e) For the purpose of Subsection (b)(3):
(1) a person making a determination that property is
comparable to another property must base the determination on the
similarity of the properties with regard to the characteristics
described by Section 23.013(d);
(2) a person who develops and quantifies adjustments
must develop and quantify the adjustments in accordance with
generally accepted appraisal standards; and
(3) a person calculating the median appraised value of
comparable properties must base the calculation on the appraised
value of each comparable property as shown in the appraisal records
submitted to the appraisal review board by the chief appraiser
under Section 25.22 or 25.23.
SECTION 2. Section 42.26, Tax Code, is amended by amending
Subsection (a) and adding Subsection (e) 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.
(e) For the purpose of Subsection (a)(3):
(1) a person making a determination that property is
comparable to another property must base the determination on the
similarity of the properties with regard to the characteristics
described by Section 23.013(d);
(2) a person who develops and quantifies adjustments
must develop and quantify the adjustments in accordance with
generally accepted appraisal standards; and
(3) a person calculating the median appraised value of
comparable properties must base the calculation on the appraised
value of each comparable property as shown in the appraisal records
certified by the chief appraiser under Section 26.01.
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.