85R2550 SMH-D
By: Kolkhorst S.B. No. 403
A BILL TO BE ENTITLED
AN ACT
relating to a temporary prohibition on increasing the market value
of certain parcels of real property for ad valorem tax purposes
following determination of a protest or appeal.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 23, Tax Code, is amended by
adding Section 23.04 to read as follows:
Sec. 23.04. TEMPORARY PROHIBITION ON INCREASING MARKET
VALUE OF CERTAIN REAL PROPERTY. (a) This section applies to the
appraisal of a parcel of commercial or residential real property if
the market value of the property as determined by the chief
appraiser is reduced by at least 15 percent:
(1) by the appraisal review board and the board's
determination is not overturned on appeal; or
(2) as a result of the final determination of an appeal
of an order of the appraisal review board.
(b) The market value of the property may not be increased
for the first two tax years following the tax year for which the
market value of the property was reduced.
(c) Subsection (b) does not prohibit an increase in the
market value of a parcel of commercial or residential real property
attributable to an improvement to the property made after the most
recent appraisal of the property that increases the market value of
the property and the value of which is not included in the market
value of the property for the preceding tax year. Repairs to or
ordinary maintenance of an existing structure or the grounds or
another feature of property are not considered an improvement to
the property for purposes of this subsection.
(d) The market value of a parcel of commercial or
residential real property appraised as provided by this section is
considered to be the market value of the property for purposes of
the studies required by Chapter 5 of this code and by Section
403.302, Government Code. A parcel of commercial or residential
real property appraised as provided by this section may not be used
as a comparable property or a ratio study sample for the purpose of
determining whether another property is unequally appraised.
SECTION 2. This Act applies only to the appraisal of a
parcel of commercial or residential real property for ad valorem
tax purposes for a tax year beginning on or after the effective date
of this Act.
SECTION 3. This Act takes effect January 1, 2018.