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.