87R918 TJB-F
By: Middleton H.B. No. 1567
A BILL TO BE ENTITLED
AN ACT
relating to the system for appraising property for ad valorem tax
purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 403.302(a) and (a-2), Government Code,
are amended to read as follows:
(a) Every two years, the [The] comptroller shall conduct a
study using comparable sales and generally accepted auditing and
sampling techniques to determine the total taxable value of all
property in each school district. The study shall determine the
taxable value of all property and of each category of property in
the district and the productivity value of all land that qualifies
for appraisal on the basis of its productive capacity and for which
the owner has applied for and received a productivity appraisal.
The comptroller shall make appropriate adjustments in the study to
account for actions taken under Chapter 49, Education Code.
(a-2) In a [If in any] year in which the comptroller does not
conduct a study for a school district, the taxable value of property
in the district is presumed to be:
(1) the [school] district's local value for that year
if the most recent study for the district resulted in a
determination by the comptroller that the district's local value
was:
(A) valid; or
(B) not valid and exceeded the comptroller's
value for the district; or
(2) the comptroller's value for the district from the
most recent study if the study resulted in a determination by the
comptroller that the district's local value was not valid and did
not exceed the comptroller's value [is considered to be valid].
SECTION 2. Section 5.10(a), Tax Code, is amended to read as
follows:
(a) Every [At least once every] two years, the comptroller
shall conduct a study in each appraisal district to determine the
degree of uniformity of and the median level of appraisals by the
appraisal district within each major category of property. The
comptroller shall publish a report of the findings of the study,
including in the report the median levels of appraisal for each
major category of property, the coefficient of dispersion around
the median level of appraisal for each major category of property,
and any other standard statistical measures that the comptroller
considers appropriate. In conducting the study, the comptroller
shall apply appropriate standard statistical analysis techniques
to data collected as part of the study of school district taxable
values required by Section 403.302, Government Code.
SECTION 3. Section 23.01, Tax Code, is amended by amending
Subsection (e) and adding Subsection (i) to read as follows:
(e) Notwithstanding any provision of this subchapter to the
contrary, if the appraised value of property in a tax year is
lowered under Subtitle F, the appraised value of the property as
finally determined under that subtitle is considered to be the
appraised value of the property for that tax year. In the next tax
year in which the property is appraised, the chief appraiser may not
increase the appraised value of the property unless the increase by
the chief appraiser is reasonably supported by clear and convincing
evidence when all of the reliable and probative evidence in the
record is considered as a whole. If the appraised value is finally
determined in a protest under Section 41.41(a)(2) or an appeal
under Section 42.26, the chief appraiser may satisfy the
requirement to reasonably support by clear and convincing evidence
an increase in the appraised value of the property in the next tax
year in which the property is appraised by presenting evidence
showing that the inequality in the appraisal of property has been
corrected with regard to the properties that were considered in
determining the value of the subject property. [The burden of
proof is on the chief appraiser to support an increase in the
appraised value of property under the circumstances described by
this subsection.]
(i) The chief appraiser has the burden of supporting an
increase in the appraised value of property from the preceding tax
year.
SECTION 4. Section 23.013(b), Tax Code, is amended to read
as follows:
(b) A sale is not considered to be a comparable sale unless
the sale occurred within 24 months of the date as of which the
market value of the subject property is to be determined[, except
that a sale that did not occur during that period may be considered
to be a comparable sale if enough comparable properties were not
sold during that period to constitute a representative sample].
SECTION 5. Section 25.18, Tax Code, is amended by amending
Subsection (b) and adding Subsections (b-1), (b-2), (b-3), and
(b-4) to read as follows:
(b) The plan shall provide for the following reappraisal
activities for all real and personal property in the district at
least once every three years, except as provided by Subsections
(b-1), (b-2), (b-3), and (b-4):
(1) identifying properties to be appraised through
physical inspection or by other reliable means of identification,
including deeds or other legal documentation, aerial photographs,
land-based photographs, surveys, maps, and property sketches;
(2) identifying and updating relevant characteristics
of each property in the appraisal records;
(3) defining market areas in the district;
(4) identifying property characteristics that affect
property value in each market area, including:
(A) the location and market area of property;
(B) physical attributes of property, such as
size, age, and condition;
(C) legal and economic attributes; and
(D) easements, covenants, leases, reservations,
contracts, declarations, special assessments, ordinances, or legal
restrictions;
(5) developing an appraisal model that reflects the
relationship among the property characteristics affecting value in
each market area and determines the contribution of individual
property characteristics;
(6) applying the conclusions reflected in the model to
the characteristics of the properties being appraised; and
(7) reviewing the appraisal results to determine
value.
(b-1) The plan shall provide for the reappraisal of all real
and personal property in the district not more often than once every
two years.
(b-2) Notwithstanding Subsection (b-1), at any time during
a tax year before the date the chief appraiser submits the completed
appraisal records to the appraisal review board under Section
25.22, an owner of real or personal property is entitled to a
reappraisal of the owner's property for that year on written
request delivered to the chief appraiser.
(b-3) Notwithstanding Subsection (b-1), the plan must allow
the chief appraiser, for a tax year in which real property is not
reappraised, to add to the market value of the property the amount
of any increase in the value of the property attributable to an
improvement to the property made during the preceding tax year.
(b-4) Subsection (b-1) does not apply to the appraisal of a
residence homestead in the tax year in which a limitation on
appraised value under Section 23.23(a) expires.
SECTION 6. Section 403.302(a-1), Government Code, is
repealed.
SECTION 7. The changes in law made by this Act to Sections
23.01, 23.013, and 25.18, Tax Code, apply only to the appraisal of
property for a tax year beginning on or after the effective date of
this Act.
SECTION 8. 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, 2021.