By Uher H.B. No. 332
74R1493 KKA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the inclusion of tax abatements in the determination of
1-3 the taxable property value of a school district.
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 to
1-6 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 school district. The study shall determine the taxable value
1-11 of all property and of each category of property within the
1-12 district and the productivity value of all land that qualifies for
1-13 appraisal on the basis of its productive capacity and for which the
1-14 owner has applied for and received a productivity appraisal. The
1-15 comptroller shall make appropriate adjustments in the study to
1-16 account for actions taken under Chapter 36. In conducting the
1-17 study, the comptroller shall review the appraisal standards,
1-18 procedures, and methodology used by each appraisal district to
1-19 determine the taxable value of property in each school district.
1-20 The review must test the validity of the taxable values assigned to
1-21 each category of property by the appraisal district:
1-22 (1) using, if appropriate, samples selected through
1-23 generally accepted sampling techniques; and
1-24 (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
2-14 part 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
2-18 <abatements> granted <before May 31, 1993,> within a reinvestment
2-19 zone under agreements authorized by the Property Redevelopment and
2-20 Tax Abatement Act (Chapter 312, Tax Code);
2-21 (3) the total dollar amount of any captured
2-22 appraised value of property that is located in a reinvestment zone
2-23 and that is eligible for tax increment financing under the Tax
2-24 Increment Financing Act (Chapter 311, Tax Code);
2-25 (4) the total dollar amount of any exemptions
2-26 granted under Section 11.251, Tax Code;
2-27 (5) the difference between the market value and
3-1 the 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
3-5 residence homesteads of the elderly on which school district taxes
3-6 are not imposed in the year that is the subject of the study,
3-7 calculated as if the residence homesteads were appraised at the
3-8 full value required by law;
3-9 (7) a portion of the market value of property
3-10 not otherwise fully taxable by the district at market value because
3-11 of action required by statute or the Texas Constitution that, if
3-12 the 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 SECTION 2. Section 36.008(b), Education Code, is repealed.
3-21 SECTION 3. This Act applies beginning with the 1995-1996
3-22 school year.
3-23 SECTION 4. The importance of this legislation and the
3-24 crowded condition of the calendars in both houses create an
3-25 emergency and an imperative public necessity that the
3-26 constitutional rule requiring bills to be read on three several
3-27 days in each house be suspended, and this rule is hereby suspended,
4-1 and that this Act take effect and be in force from and after its
4-2 passage, and it is so enacted.