By Sadler H.B. No. 2610
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration of the property value study
1-3 conducted for school finance purposes:
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 11.86 (a) Education Code, is amended and
1-6 subsection (i) is added, to read as follows:
1-7 (a) The comptroller shall conduct an annual study using
1-8 comparable sales and generally accepted auditing and sampling
1-9 techniques to determine the total value of all taxable property in
1-10 each county education school district and each of its component
1-11 school districts. The study shall determine the taxable value of
1-12 all property and of each category of property within the district
1-13 and the productivity value of all land that qualifies for appraisal
1-14 on the basis of its productive capacity and for which the owner has
1-15 applied for and received a productivity appraisal. In conducting
1-16 the study, the comptroller shall regularly review the appraisal
1-17 standards, procedures, and methodology used by each appraisal
1-18 district to determine the taxable value of property in each school
1-19 district. The review must test the validity of the taxable values
1-20 assigned to each category of property by the appraisal district:
1-21 (1) using, if appropriate, samples selected through
1-22 generally accepted sampling techniques; and
1-23 (2) according to generally accepted standard
2-1 valuation, statistical compilation, and analysis techniques. If
2-2 the comptroller finds in the annual study that generally accepted
2-3 appraisal standards and practices were used by the appraisal
2-4 district in valuing a particular category of property, and that the
2-5 taxable values assigned to each category of property by the
2-6 appraisal district are valid, the appraisal roll value of that
2-7 category of property is presumed to represent taxable value. In
2-8 the absence of such a presumption, the comptroller shall estimate
2-9 the taxable value of that category of property using generally
2-10 accepted standard valuation, statistical compilation, and analysis
2-11 techniques. For the purposes of this section, "taxable value"
2-12 means market value less:
2-13 (1) the total dollar amount of any exemptions of part
2-14 but not all of the value of taxable property required by the
2-15 constitution or a statute that a district lawfully granted in the
2-16 year that is the subject of the study;
2-17 (2) the total dollar amount of any exemptions granted
2-18 within a reinvestment zone under agreements authorized by the
2-19 Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
2-20 Code);
2-21 (3) the total dollar amount of any captured appraised
2-22 value of property that is located in a reinvestment zone and that
2-23 is eligible for tax increment financing under the Tax Increment
2-24 Financing Act (Chapter 311, Tax Code);
2-25 (4) the total dollar amount of any exemptions granted
3-1 under Section 11.252, Tax Code;
3-2 (5) the difference between the market value and the
3-3 productivity value of land that qualifies for appraisal on the
3-4 basis of its productive capacity, except that the productivity
3-5 value may not exceed the fair market value of the land;
3-6 (6) the portion of the appraised value of residence
3-7 homesteads of the elderly on which school district taxes are not
3-8 imposed in the year that is the subject of the study, calculated as
3-9 if the residence homesteads were appraised at the full value
3-10 required by law;
3-11 (7) a portion of the market value of property not
3-12 otherwise fully taxable by the district at market value because of
3-13 action required by statute or the Texas Constitution that, if the
3-14 tax rate adopted by the district is applied to it, produces an
3-15 amount equal to the difference between the tax that the district
3-16 would have imposed on the property if the property were fully
3-17 taxable at market value and the tax that the district is actually
3-18 authorized to impose on the property; and
3-19 (8) the market value of all tangible personal
3-20 property, other than manufactured homes, owned by a family or
3-21 individual and not held or used for the production of income.
3-22 (i) If a school district's adjusted total tax roll value is
3-23 greater than the school district's taxable value as determined by
3-24 the comptroller under subsection (a) of this section, the
3-25 comptroller, when certifying the property values as required by
4-1 this section, shall certify the district's adjusted total tax roll
4-2 value for the year of the study. For purposes of this subsection,
4-3 "adjusted total tax roll value" means a school district's total tax
4-4 roll value, plus any exemptions, exclusions or other amounts not
4-5 required to be deducted by subsection (a)(1) through (8) of this
4-6 section.
4-7 SECTION 2. This Act takes effect immediately.
4-8 SECTION 3. The importance of this legislation and the
4-9 crowded condition of the calendars in both houses create an
4-10 emergency and an imperative public necessity that the
4-11 constitutional rule requiring bills to be read on three several
4-12 days in each house be suspended, and this rule is hereby suspended
4-13 and that this Act take effect and be in force from and after its
4-14 passage and it so enacted.