88R235 RDS-D
By: Johnson S.B. No. 102
A BILL TO BE ENTITLED
AN ACT
relating to the determination of an ad valorem tax protest or appeal
on the ground of the unequal appraisal of property on the basis of
the appraised value of the property relative to the median
appraised value of a reasonable number of comparable properties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 41.43, Tax Code, is amended by amending
Subsection (b) and adding Subsection (e) to read as follows:
(b) A protest on the ground of unequal appraisal of property
shall be determined in favor of the protesting party unless the
appraisal district establishes that:
(1) the appraisal ratio of the property is equal to or
less than the median level of appraisal of a reasonable and
representative sample of other properties in the appraisal
district;
(2) the appraisal ratio of the property is equal to or
less than the median level of appraisal of a sample of properties in
the appraisal district consisting of a reasonable number of other
properties similarly situated to, or of the same general kind or
character as, the property subject to the protest; or
(3) the appraised value of the property is equal to or
less than the median appraised value of a reasonable number of
comparable properties in the appraisal district appropriately
adjusted.
(e) For purposes of Subsection (b)(3), if a reasonable
number of comparable properties does not exist in the appraisal
district, the median appraised value of a reasonable number of
comparable properties may be calculated using comparable
properties in other parts of the state.
SECTION 2. Section 42.26, Tax Code, is amended by amending
Subsection (a) and adding Subsection (e) to read as follows:
(a) The district court shall grant relief on the ground that
a property is appraised unequally if:
(1) the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of a reasonable and
representative sample of other properties in the appraisal
district;
(2) the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of a sample of
properties in the appraisal district consisting of a reasonable
number of other properties similarly situated to, or of the same
general kind or character as, the property subject to the appeal; or
(3) the appraised value of the property exceeds the
median appraised value of a reasonable number of comparable
properties in the appraisal district appropriately adjusted.
(e) For purposes of Subsection (a)(3), if a reasonable
number of comparable properties does not exist in the appraisal
district, the median appraised value of a reasonable number of
comparable properties may be calculated using comparable
properties in other parts of the state.
SECTION 3. Section 41.43, Tax Code, as amended by this Act,
applies only to a protest under Chapter 41, Tax Code, for which a
notice of protest is filed on or after the effective date of this
Act. A protest under Chapter 41, Tax Code, for which a notice of
protest was filed before the effective date of this Act is governed
by the law in effect on the date the notice of protest was filed, and
the former law is continued in effect for that purpose.
SECTION 4. Section 42.26, Tax Code, as amended by this Act,
applies only to an appeal under Chapter 42, Tax Code, for which a
petition for review is filed on or after the effective date of this
Act. An appeal under Chapter 42, Tax Code, for which a petition for
review was filed before the effective date of this Act is governed
by the law in effect on the date the petition for review was filed,
and the former law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2023.