Texas 2021 - 87th Regular

Texas House Bill HB1099 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R3792 TJB-D
2	2	By: Beckley H.B. No. 1099
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to ad valorem tax protests and appeals on the ground of the
8	8	unequal appraisal of property.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 23.01(f), Tax Code, is amended to read as
11	11	follows:
12	12	(f) The selection of comparable properties [and the
13	13	application of appropriate adjustments] for the determination of an
14	14	appraised value of property by any person under Section 41.43(b)(3)
15	15	or 42.26(a)(3) must be based on the application of generally
16	16	accepted appraisal methods and techniques. [Adjustments must be
17	17	based on recognized methods and techniques that are necessary to
18	18	produce a credible opinion.]
19	19	SECTION 2. Section 41.43, Tax Code, is amended by amending
20	20	Subsection (b) and adding Subsections (e) and (f) to read as
21	21	follows:
22	22	(b) A protest on the ground of unequal appraisal of property
23	23	shall be determined in favor of the protesting party unless the
24	24	appraisal district establishes that:
25	25	(1) the appraisal ratio of the property is equal to or
26	26	less than the median level of appraisal of a reasonable and
27	27	representative sample of other properties in the appraisal
28	28	district;
29	29	(2) the appraisal ratio of the property is equal to or
30	30	less than the median level of appraisal of a sample of properties in
31	31	the appraisal district consisting of a reasonable number of other
32	32	properties similarly situated to, or of the same general kind or
33	33	character as, the property subject to the protest; or
34	34	(3) the appraisal ratio [appraised value] of the
35	35	property is equal to or less than the median level of appraisal
36	36	[appraised value] of a reasonable number of comparable properties
37	37	in the appraisal district [appropriately adjusted].
38	38	(e) For the purpose of Subsection (b)(3):
39	39	(1) a person making a determination that property is
40	40	comparable to another property must base the determination on the
41	41	similarity of the properties with regard to the characteristics
42	42	described by Section 23.013(d); and
43	43	(2) a person calculating the median level of appraisal
44	44	of comparable properties must base the calculation on the appraised
45	45	value of each comparable property as shown in the appraisal records
46	46	submitted to the appraisal review board by the chief appraiser
47	47	under Section 25.22 or 25.23.
48	48	(f) The comptroller shall by rule establish standards for
49	49	the development and calibration of adjustments to the appraised
50	50	value for industrial, petrochemical refining and processing, and
51	51	utility properties and other unique properties.
52	52	SECTION 3. Section 42.26, Tax Code, is amended by amending
53	53	Subsections (a) and (b) and adding Subsections (e) and (f) to read
54	54	as follows:
55	55	(a) The district court shall grant relief on the ground that
56	56	a property is appraised unequally if:
57	57	(1) the appraisal ratio of the property exceeds by at
58	58	least 10 percent the median level of appraisal of a reasonable and
59	59	representative sample of other properties in the appraisal
60	60	district;
61	61	(2) the appraisal ratio of the property exceeds by at
62	62	least 10 percent the median level of appraisal of a sample of
63	63	properties in the appraisal district consisting of a reasonable
64	64	number of other properties similarly situated to, or of the same
65	65	general kind or character as, the property subject to the appeal; or
66	66	(3) the appraisal ratio [appraised value] of the
67	67	property exceeds by at least 10 percent the median level of
68	68	appraisal [appraised value] of a reasonable number of comparable
69	69	properties in the appraisal district [appropriately adjusted].
70	70	(b) If a property owner is entitled to relief under a
71	71	subdivision of Subsection (a) [(a)(1)], the court shall order the
72	72	property's appraised value changed to the value as calculated on
73	73	the basis of the median level of appraisal according to that
74	74	subdivision [Subsection (a)(1). If a property owner is entitled to
75	75	relief under Subsection (a)(2), the court shall order the
76	76	property's appraised value changed to the value calculated on the
77	77	basis of the median level of appraisal according to Subsection
78	78	(a)(2). If a property owner is entitled to relief under Subsection
79	79	(a)(3), the court shall order the property's appraised value
80	80	changed to the value calculated on the basis of the median appraised
81	81	value according to Subsection (a)(3)]. If a property owner is
82	82	entitled to relief under more than one subdivision of Subsection
83	83	(a), the court shall order the property's appraised value changed
84	84	to the value that results in the lowest appraised value. The court
85	85	shall determine each applicable median level of appraisal [or
86	86	median appraised value] according to law, and is not required to
87	87	adopt the median level of appraisal [or median appraised value]
88	88	proposed by a party to the appeal. The court may not limit or deny
89	89	relief to the property owner entitled to relief under a subdivision
90	90	of Subsection (a) because the appraised value determined according
91	91	to another subdivision of Subsection (a) results in a higher
92	92	appraised value.
93	93	(e) For the purpose of Subsection (a)(3):
94	94	(1) a person making a determination that property is
95	95	comparable to another property must base the determination on the
96	96	similarity of the properties with regard to the characteristics
97	97	described by Section 23.013(d); and
98	98	(2) a person calculating the median level of appraisal
99	99	of comparable properties must base the calculation on the appraised
100	100	value of each comparable property as shown in the appraisal records
101	101	certified by the chief appraiser under Section 26.01.
102	102	(f) The comptroller shall by rule establish standards for
103	103	the development and calibration of adjustments to the appraised
104	104	value for industrial, petrochemical refining and processing, and
105	105	utility properties and other unique properties.
106	106	SECTION 4. Section 42.29, Tax Code, is amended by amending
107	107	Subsection (b) and adding Subsection (c) to read as follows:
108	108	(b) Notwithstanding Subsection (a), the amount of an award
109	109	of attorney's fees to a property owner may not exceed the lesser of:
110	110	(1) $100,000; or
111	111	(2) the total amount by which the property owner's tax
112	112	liability is reduced as a result of the appeal.
113	113	(c) An appraisal district, an appraisal review board, or a
114	114	chief appraiser that prevails in an appeal under Section 42.26 may
115	115	be awarded reasonable attorney's fees. The amount of the award may
116	116	not exceed $15,000.
117	117	SECTION 5. Not later than January 1, 2022, the comptroller
118	118	shall establish the standards required by Sections 41.43(f) and
119	119	42.26(f), Tax Code, as added by this Act.
120	120	SECTION 6. Section 41.43, Tax Code, as amended by this Act,
121	121	applies only to a protest under Chapter 41, Tax Code, for which a
122	122	notice of protest is filed on or after the effective date of this
123	123	Act. A protest under Chapter 41, Tax Code, for which a notice of
124	124	protest was filed before the effective date of this Act is governed
125	125	by the law in effect on the date the notice of protest was filed, and
126	126	the former law is continued in effect for that purpose.
127	127	SECTION 7. Sections 42.26 and 42.29, Tax Code, as amended by
128	128	this Act, apply only to an appeal under Chapter 42, Tax Code, for
129	129	which a petition for review is filed on or after the effective date
130	130	of this Act. An appeal under Chapter 42, Tax Code, for which a
131	131	petition for review was filed before the effective date of this Act
132	132	is governed by the law in effect on the date the petition for review
133	133	was filed, and the former law is continued in effect for that
134	134	purpose.
135	135	SECTION 8. This Act takes effect September 1, 2021.