86R1665 TJB-D
By: Bernal H.B. No. 185
A BILL TO BE ENTITLED
AN ACT
relating to a study of the impact, feasibility, and advisability of
adopting a property tax system in which the disclosure of the sales
price of real property is required by law.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The comptroller shall conduct a study of the
impact, feasibility, and advisability of adopting a property tax
system in which the disclosure of the sales price of real property
is required by law.
(b) The comptroller shall establish an advisory committee
to assist the comptroller in conducting the study. The advisory
committee must be composed of:
(1) the following representatives appointed by the
comptroller:
(A) one representative of a school district that
is required to reduce its wealth per student under Chapter 41,
Education Code;
(B) one representative of a school district that
is entitled to state aid under Chapter 42, Education Code;
(C) one member of a county commissioners court;
(D) one member of the governing body of a
municipality;
(E) one member of the governing body of a
political subdivision other than a school district, county, or
municipality;
(F) one or more representatives of appraisal
districts;
(G) one or more representatives of the profession
of real estate agents;
(H) one or more representatives of property tax
payers;
(I) one or more representatives of organizations
interested in the effect of public policy on low-income and
moderate-income households; and
(J) one or more representatives of other
appropriate interested organizations or members of the public, as
determined by the comptroller;
(2) one member of the house of representatives
appointed by the speaker of the house of representatives; and
(3) one member of the senate appointed by the
lieutenant governor.
(c) The comptroller, with the assistance of the advisory
committee, shall study:
(1) the impact on the property tax system, property
tax revenue of school districts and other taxing units, the
allocation of property tax burdens among taxpayers, and the cost to
the state to fund public education:
(A) under the current system in which the
disclosure of the sales price of real property is not required by
law; and
(B) under a system in which the disclosure of the
sales price of real property would be required by law;
(2) the statutory and administrative changes that
would be necessary to effectively collect, disseminate, and use
sales price information;
(3) the annual cost to purchase real property sales
price information from a private entity, such as a multiple listing
service, compared to the annual cost to obtain that information
under a system in which the disclosure of the sales price of real
property would be required by law; and
(4) the annual cost to appraisal districts of all
property tax protests and appeals filed under Chapters 41, 41A, and
42, Tax Code, and Subchapter Z, Chapter 2003, Government Code.
(d) In studying the allocation of property tax burdens among
taxpayers, the comptroller and the advisory committee must compare
the tax burden among property owners of each classification of real
property, including a comparison of the burden on owners of:
(1) commercial properties as compared to
single-family residential properties;
(2) industrial properties as compared to
single-family residential properties; and
(3) single-family residential properties for which
the sales price of the property is provided by a private entity,
such as a multiple listing service, to a chief appraiser for use by
the chief appraiser in determining the appraised value of the
property as compared to single-family residential properties for
which the sales price is not provided.
(e) The comptroller and the advisory committee shall
prepare a report that:
(1) makes findings and recommendations regarding the
issues studied under Subsection (c) of this section;
(2) forecasts the fiscal impact to state revenue for
the following three state fiscal bienniums under a system in which
the disclosure of the sales price of real property would be required
by law as compared to a system in which the sales price of real
property is not required by law; and
(3) lists each type of taxing unit that would be
impacted under a system in which the disclosure of the sales price
of real property would be required by law.
(f) The comptroller may contract with appraisal districts,
taxing units, or other appropriate entities for assistance and to
obtain information necessary to conduct the study. A state agency,
appraisal district, or taxing unit shall assist the comptroller if
the comptroller requests information or assistance in conducting
the study.
(g) Not later than December 1, 2020, the comptroller shall
submit to the governor, lieutenant governor, and speaker of the
house of representatives the report prepared under Subsection (e)
of this section.
SECTION 2. This Act expires September 1, 2021.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.