| 1 | 1 | | 85R893 LHC-D |
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| 2 | 2 | | By: Larson H.B. No. 301 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of an appraisal district to increase the |
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| 8 | 8 | | appraised value of property for ad valorem tax purposes in the tax |
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| 9 | 9 | | year following a year in which the appraised value of the property |
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| 10 | 10 | | is lowered as a result of an agreement, protest, or appeal. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 23.01, Tax Code, is amended by amending |
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| 13 | 13 | | Subsection (e) and adding Subsection (e-1) to read as follows: |
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| 14 | 14 | | (e) Notwithstanding any provision of this subchapter to the |
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| 15 | 15 | | contrary, if the appraised value of property in a tax year is |
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| 16 | 16 | | lowered as a result of an agreement between the property owner and |
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| 17 | 17 | | the appraisal district or as a result of a protest or appeal under |
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| 18 | 18 | | Subtitle F, the appraised value of the property as specified in the |
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| 19 | 19 | | agreement or as finally determined under that subtitle is |
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| 20 | 20 | | considered to be the appraised value of the property for that tax |
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| 21 | 21 | | year. In the following tax year, the chief appraiser may not |
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| 22 | 22 | | increase the appraised value of the property unless the increase by |
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| 23 | 23 | | the chief appraiser is reasonably supported by substantial evidence |
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| 24 | 24 | | when all of the reliable and probative evidence in the record is |
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| 25 | 25 | | considered as a whole. If the appraised value is finally determined |
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| 26 | 26 | | in a protest under Section 41.41(a)(2) or an appeal under Section |
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| 27 | 27 | | 42.26, the chief appraiser may satisfy the requirement to |
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| 28 | 28 | | reasonably support by substantial evidence an increase in the |
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| 29 | 29 | | appraised value of the property in the following tax year by |
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| 30 | 30 | | presenting evidence showing that the inequality in the appraisal of |
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| 31 | 31 | | property has been corrected with regard to the properties that were |
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| 32 | 32 | | considered in determining the value of the subject property. The |
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| 33 | 33 | | burden of proof is on the chief appraiser to support an increase in |
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| 34 | 34 | | the appraised value of property under the circumstances described |
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| 35 | 35 | | by this subsection. |
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| 36 | 36 | | (e-1) Notwithstanding Subsection (e) of this section and |
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| 37 | 37 | | Section 23.23, if the appraised value of property in a tax year is |
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| 38 | 38 | | lowered under the circumstances described by Subsection (e), the |
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| 39 | 39 | | chief appraiser may not increase the appraised value of the |
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| 40 | 40 | | property in the following tax year by an amount that exceeds the sum |
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| 41 | 41 | | of five percent of the appraised value of the property in the tax |
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| 42 | 42 | | year in which the appraised value of the property is lowered and the |
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| 43 | 43 | | market value of all new improvements to the property. This |
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| 44 | 44 | | subsection does not apply to an increase in the appraised value of |
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| 45 | 45 | | property as a result of: |
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| 46 | 46 | | (1) the property no longer being eligible for |
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| 47 | 47 | | appraisal under Subchapter C, D, E, F, G, or H; or |
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| 48 | 48 | | (2) the expiration of a limitation on appraised value |
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| 49 | 49 | | under Section 23.23(a) applicable to the property. |
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| 50 | 50 | | SECTION 2. This Act applies only to the appraisal of |
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| 51 | 51 | | property for a tax year that begins on or after the effective date |
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| 52 | 52 | | of this Act. |
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| 53 | 53 | | SECTION 3. This Act takes effect January 1, 2018, but only |
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| 54 | 54 | | if the constitutional amendment proposed by the 85th Legislature, |
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| 55 | 55 | | Regular Session, 2017, to authorize the legislature to limit the |
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| 56 | 56 | | maximum appraised value of property for ad valorem tax purposes in a |
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| 57 | 57 | | tax year if in the preceding tax year the owner of the property |
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| 58 | 58 | | disputed the appraisal of the property and the appraised value was |
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| 59 | 59 | | lowered as a result is approved by the voters. If that amendment is |
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| 60 | 60 | | not approved by the voters, this Act has no effect. |
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