Texas 2023 - 88th Regular

Texas House Bill HB4228 Compare Versions

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1	1	By: Bryant H.B. No. 4228
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the system for appraising property for ad valorem tax
7	7	purposes.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 41.43, Tax Code, is amended by amending
10	10	Subsection (b) and adding Subsections (e), (f), (g), and (h) to read
11	11	as follows:
12	12	(b) A protest on the ground of unequal appraisal of property
13	13	shall be determined in favor of the protesting party unless the
14	14	appraisal district establishes that:
15	15	(1) the appraisal ratio of the property is equal to or
16	16	less than the median level of appraisal of a reasonable and
17	17	representative sample of other properties in the appraisal
18	18	district;
19	19	(2) the appraisal ratio of the property is equal to or
20	20	less than the median level of appraisal of a sample of properties in
21	21	the appraisal district consisting of a reasonable number of other
22	22	properties similarly situated to, or of the same general kind or
23	23	character as, the property subject to the protest; or
24	24	(3) the appraisal ratio [appraised value] of the
25	25	property is equal to or less than the median appraisal ratio
26	26	[appraised value] of a reasonable number of comparable properties
27	27	in the appraisal district appropriately adjusted.
28	28	(e) For purposes of Subsection (b)(3):
29	29	(1) a determination that a property is comparable to
30	30	another property must be based on the similarity of the properties
31	31	with regard to the characteristics described by Section 23.013(d);
32	32	and
33	33	(2) calculation of the market value of the property
34	34	that is the subject of the protest or of a comparable property for
35	35	the purpose of determining the property's appraisal ratio must be
36	36	based on the appraised value of the property as shown in the
37	37	appraisal records submitted to the appraisal review board under
38	38	Section 25.22 or 25.23.
39	39	(f) If a reasonable number of comparable properties does not
40	40	exist in the appraisal district, the median appraisal ratio of a
41	41	reasonable number of comparable properties may, for purposes of
42	42	Subsection (b)(3), be calculated using comparable properties in
43	43	other parts of the state, in the following manner:
44	44	(1) an adjacent county or counties; or
45	45	(2) the rest of the state if a reasonable number of
46	46	comparable properties is not achieved though Subsection (f)(1).
47	47	(g) The comptroller by rule shall establish standards for
48	48	the development and calibration of adjustments made by the
49	49	appraisal review board in a protest under this section to the
50	50	appraised value of commercial, industrial, and multifamily
51	51	properties and other unique properties. The comptroller shall
52	52	review and, if necessary, update the standards established under
53	53	this subsection at least every other year.
54	54	(h) The chief appraiser may disclose confidential
55	55	information for the purpose of meeting the appraisal district's
56	56	burden of proof under this section if the information does not
57	57	identify:
58	58	(1) a specific property; or
59	59	(2) a property owner.
60	60	SECTION 2. Section 41.45, Tax Code, is amended by adding
61	61	Subsection (c-1)and (c-2) to read as follows:
62	62	(c-1) A property owner or a chief appraiser may offer as
63	63	evidence a third-party appraisal of a similar comparable property
64	64	or a third-party appraisal of the property that is the subject of a
65	65	protest at a hearing on the protest if the appraisal was completed
66	66	not more than 12 months from the appraisal date under Section
67	67	23.01(a).
68	68	(c-2) On request made to the appraisal review board before
69	69	the date of the hearing, a property owner shall provide the chief
70	70	appraiser with a copy of any available third-party appraisal of the
71	71	property that is subject of a protest if the appraisal was completed
72	72	not more than 12 months from the appraisal date under Section
73	73	23.01(a).
74	74	SECTION 3. Section 42.23, Tax Code, is amended by adding
75	75	Subsection (i)and (ii) to read as follows:
76	76	(i) A property owner or an appraisal district may offer as
77	77	evidence a third-party appraisal of the property that is the
78	78	subject of an appeal under this chapter if the appraisal was
79	79	completed not more than 12 months from the appraisal date under
80	80	Section 23.01(a).
81	81	(ii) On request made to the district judge before the date
82	82	of the hearing, a property owner shall provide the chief appraiser
83	83	with a copy of any available third-party appraisal of the property
84	84	that is subject of a protest if the appraisal was completed not more
85	85	than 12 months from the appraisal date under Section 23.01(a).
86	86	SECTION 4. Section 42.26, Tax Code, is amended by amending
87	87	Subsections (a) and (b) and adding Subsections (e), (f), (g), and
88	88	(h) to read as follows:
89	89	(a) The district court shall grant relief on the ground that
90	90	a property is appraised unequally if:
91	91	(1) the appraisal ratio of the property exceeds by at
92	92	least 10 percent the median level of appraisal of a reasonable and
93	93	representative sample of other properties in the appraisal
94	94	district;
95	95	(2) the appraisal ratio of the property exceeds by at
96	96	least 10 percent the median level of appraisal of a sample of
97	97	properties in the appraisal district consisting of a reasonable
98	98	number of other properties similarly situated to, or of the same
99	99	general kind or character as, the property subject to the appeal; or
100	100	(3) the appraisal ratio [appraised value] of the
101	101	property exceeds by at least 10 percent the median appraisal ratio
102	102	[appraised value] of a reasonable number of comparable properties
103	103	in the appraisal district appropriately adjusted.
104	104	(b) If a property owner is entitled to relief under
105	105	Subsection (a)(1), the court shall order the property's appraised
106	106	value changed to the value as calculated on the basis of the median
107	107	level of appraisal according to Subsection (a)(1). If a property
108	108	owner is entitled to relief under Subsection (a)(2), the court
109	109	shall order the property's appraised value changed to the value
110	110	calculated on the basis of the median level of appraisal according
111	111	to Subsection (a)(2). If a property owner is entitled to relief
112	112	under Subsection (a)(3), the court shall order the property's
113	113	appraised value changed to the value calculated on the basis of the
114	114	median appraisal ratio [appraised value] according to Subsection
115	115	(a)(3). If a property owner is entitled to relief under more than
116	116	one subdivision of Subsection (a), the court shall order the
117	117	property's appraised value changed to the value determined under
118	118	the subdivision under which the owner is entitled to relief that, in
119	119	the judgment of the court, reflects the most appropriate [results
120	120	in the lowest] appraised value. The court shall determine each
121	121	applicable median level of appraisal or median appraisal ratio
122	122	[appraised value] according to law, and is not required to adopt the
123	123	median level of appraisal or median appraisal ratio [appraised
124	124	value] proposed by a party to the appeal. [The court may not limit
125	125	or deny relief to the property owner entitled to relief under a
126	126	subdivision of Subsection (a) because the appraised value
127	127	determined according to another subdivision of Subsection (a)
128	128	results in a higher appraised value.]
129	129	(e) For purposes of Subsection (a)(3):
130	130	(1) a determination that a property is comparable to
131	131	another property must be based on the similarity of the properties
132	132	with regard to the characteristics described by Section 23.013(d);
133	133	and
134	134	(2) calculation of the market value of the property
135	135	that is the subject of the protest or of a comparable property for
136	136	the purpose of determining the property's appraisal ratio must be
137	137	based on the appraised value of the property as shown in the
138	138	appraisal roll certified by the chief appraiser under Section
139	139	26.01.
140	140	(f) If a reasonable number of comparable properties does not
141	141	exist in the appraisal district, the median appraisal ratio of a
142	142	reasonable number of comparable properties may, for purposes of
143	143	Subsection (a)(3), be calculated using comparable properties in
144	144	other parts of the state, in the following manner:
145	145	(1) an adjacent county or counties; or
146	146	(2) the rest of the state if a reasonable number of
147	147	comparable properties is not achieved though Subsection (f)(1).
148	148	(g) The comptroller by rule shall establish standards for
149	149	the development and calibration of adjustments made by the court
150	150	under this section to the appraised value of commercial,
151	151	industrial, and multifamily properties and other unique
152	152	properties. The comptroller shall review and, if necessary, update
153	153	the standards established under this subsection at least every
154	154	other year.
155	155	(h) The chief appraiser may disclose confidential
156	156	information for the purpose of meeting the appraisal district's
157	157	burden of proof under this section if the information does not
158	158	identify:
159	159	(1) a specific property; or
160	160	(2) a property owner.
161	161	SECTION 5. Section 42.29, Tax Code, is amended to read as
162	162	follows:
163	163	Sec. 42.29. ATTORNEY'S FEES. (a) A property owner may be
164	164	awarded reasonable attorney's fees in an amount authorized by this
165	165	section if the property owner [who] prevails:
166	166	(1) in an appeal to the court under Section 42.25 or
167	167	42.26 and the appraised value of the property as determined by the
168	168	court is less than 90 percent of the appraised value according to
169	169	the appraisal roll;
170	170	(2) [,] in an appeal to the court of a determination of
171	171	an appraisal review board on a motion filed under Section 25.25; [,]
172	172	or
173	173	(3) in an appeal to the court of a determination of an
174	174	appraisal review board of a protest of the denial in whole or in
175	175	part of an exemption under Section 11.17, 11.22, 11.23, 11.231, or
176	176	11.24 [may be awarded reasonable attorney's fees].
177	177	(b) Subject to Subsection (c), the [The] amount of the award
178	178	to a property owner may not exceed the greater of:
179	179	(1) $15,000; or
180	180	(2) 20 percent of the total amount by which the
181	181	property owner's tax liability is reduced as a result of the appeal.
182	182	(c) The [(b) Notwithstanding Subsection (a), the] amount of
183	183	an award of attorney's fees to a property owner may not exceed the
184	184	lesser of:
185	185	(1) $100,000; or
186	186	(2) the total amount by which the property owner's tax
187	187	liability is reduced as a result of the appeal.
188	188	(d) An appraisal district may be awarded reasonable
189	189	attorney's fees in an amount not to exceed $100,000 if the district
190	190	prevails in an appeal to the court under Section 42.25 or 42.26 and
191	191	the appraised value of the property as determined by the court is at
192	192	least 10 percent greater than the appraised value according to the
193	193	appraisal roll.
194	194	SECTION 6. Sections 41.43 and 41.45, Tax Code, as amended by
195	195	this Act, apply only to a protest under Chapter 41, Tax Code, for
196	196	which a notice of protest is filed on or after the effective date of
197	197	this Act. A protest under Chapter 41, Tax Code, for which a notice
198	198	of protest was filed before the effective date of this Act is
199	199	governed by the law in effect on the date the notice of protest was
200	200	filed, and the former law is continued in effect for that purpose.
201	201	SECTION 7. Sections 42.23, 42.26, and 42.29, Tax Code, as
202	202	amended by this Act, apply only to an appeal under Chapter 42, Tax
203	203	Code, for which a petition for review is filed on or after the
204	204	effective date of this Act. An appeal under Chapter 42, Tax Code,
205	205	for which a petition for review was filed before the effective date
206	206	of this Act is governed by the law in effect on the date the petition
207	207	for review was filed, and the former law is continued in effect for
208	208	that purpose.
209	209	SECTION 8. This Act takes effect January 1, 2024.