By: Armbrister S.B. No. 1200
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the administration of the property value study
1-2 conducted for school finance purposes:
1-3 SECTION 1. Section 11.86 (a) Education Code, is amended and
1-4 subsection (i) is added, to read as follows:
1-5 (a) The comptroller shall conduct an annual study using
1-6 comparable sales and generally accepted auditing and sampling
1-7 techniques to determine the total value of all taxable property in
1-8 each school district. The study shall determine the taxable value
1-9 of all property and of each category of property within the
1-10 district and the productivity value of all land that qualifies for
1-11 appraisal on the basis of its productive capacity and for which the
1-12 owner has applied for and received a productivity appraisal. In
1-13 conducting the study, the comptroller shall regularly review the
1-14 appraisal standards, procedures, and methodology used by each
1-15 appraisal district to determine the taxable value of property in
1-16 each school district. The review must test the validity of the
1-17 taxable values assigned to each category of property by the
1-18 appraisal district:
1-19 (1) using, if appropriate, samples selected through
1-20 generally accepted sampling techniques; and
1-21 (2) according to generally accepted standard
1-22 valuation, statistical compilation, and analysis techniques. If
1-23 the comptroller finds in the annual study that generally accepted
2-1 appraisal standards and practices were used by the appraisal
2-2 district in valuing a particular category of property, and that the
2-3 taxable values assigned to each category of property by the
2-4 appraisal district are valid, the appraisal roll value of that
2-5 category of property is presumed to represent taxable value. In
2-6 the absence of such a presumption, the comptroller shall estimate
2-7 the taxable value of that category of property using generally
2-8 accepted standard valuation, statistical compilation, and analysis
2-9 techniques. For the purposes of this section, "taxable value"
2-10 means market value less:
2-11 (1) the total dollar amount of any exemptions of part
2-12 but not all of the value of taxable property required by the
2-13 constitution or a statute that a district lawfully granted in the
2-14 year that is the subject of the study;
2-15 (2) the total dollar amount of any exemptions granted
2-16 within a reinvestment zone under agreements authorized by the
2-17 Property Redevelopment and Tax Abatement Act (Chapter 312, Tax
2-18 Code);
2-19 (3) the total dollar amount of any captured appraised
2-20 value of property that is located in a reinvestment zone and that
2-21 is eligible for tax increment financing under the Tax Increment
2-22 Financing Act (Chapter 311, Tax Code);
2-23 (4) the total dollar amount of any exemptions granted
2-24 under Section 11.252, Tax Code;
2-25 (5) the difference between the market value and the
3-1 productivity value of land that qualifies for appraisal on the
3-2 basis of its productive capacity, except that the productivity
3-3 value may not exceed the fair market value of the land;
3-4 (6) the portion of the appraised value of residence
3-5 homesteads of the elderly on which school district taxes are not
3-6 imposed in the year that is the subject of the study, calculated as
3-7 if the residence homesteads were appraised at the full value
3-8 required by law;
3-9 (7) a portion of the market value of property not
3-10 otherwise fully taxable by the district at market value because of
3-11 action required by statute or the Texas Constitution that, if the
3-12 tax rate adopted by the district is applied to it, produces an
3-13 amount equal to the difference between the tax that the district
3-14 would have imposed on the property if the property were fully
3-15 taxable at market value and the tax that the district is actually
3-16 authorized to impose on the property; and
3-17 (8) the market value of all tangible personal
3-18 property, other than manufactured homes, owned by a family or
3-19 individual and not held or used for the production of income.
3-20 (i) If a school district's adjusted total tax roll value is
3-21 greater than the school district's taxable value as determined by
3-22 the comptroller under subsection (a) of this section, the
3-23 comptroller, when certifying property values as required by this
3-24 section, shall certify the district's adjusted total tax roll value
3-25 for the year of the study. For purposes of this subsection,
4-1 "adjusted total tax roll value" means a school district's total tax
4-2 roll value, plus any exemptions, exclusions or other amounts not
4-3 required to be deducted by subsection (a)(1) through (8) of this
4-4 section.
4-5 SECTION 2. This Act takes effect immediately.
4-6 SECTION 3. The importance of this legislation and the
4-7 crowded condition of the calendars in both houses create an
4-8 emergency and an imperative public necessity that the
4-9 constitutional rule requiring bills to be read on three several
4-10 days in each house be suspended, and this rule is hereby suspended,
4-11 and that this Act take effect and be in force from and after its
4-12 passage, and it is so enacted.