By Haggerty H.B. No. 2013
74R4710 JD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to ad valorem taxation and to the appraisal of property
1-3 for ad valorem tax purposes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.04(7), Tax Code, is amended to read as
1-6 follows:
1-7 (7) "Market value" means the most probable price that
1-8 a property would bring at a sale in a competitive and open market
1-9 under all conditions requisite to a fair sale at which the buyer
1-10 and seller each act prudently, knowledgeably, and assuming the
1-11 price is not affected by an undue stimulus, with the consummation
1-12 of the sale as of a specified date and the passing of title from
1-13 seller to buyer under conditions such that:
1-14 (A) the buyer and seller are typically
1-15 motivated;
1-16 (B) the buyer and seller are each well informed
1-17 or well advised, the buyer is acting in what the buyer considers to
1-18 be the buyer's best interest, and the seller is acting in what the
1-19 seller considers to be the seller's best interest;
1-20 (C) a reasonable time is allowed for exposure of
1-21 the property for sale on the open market;
1-22 (D) payment is made for the property in cash in
1-23 United States currency or the equivalent; and
1-24 (E) the price represents the normal
2-1 consideration for the property sold unaffected by special or
2-2 creative financing or sales concessions granted by a person
2-3 associated with the sale <price at which a property would transfer
2-4 for cash or its equivalent under prevailing market conditions if:>
2-5 <(A) exposed for sale in the open market with a
2-6 reasonable time for the seller to find a purchaser;>
2-7 <(B) both the seller and the purchaser know of
2-8 all the uses and purposes to which the property is adapted and for
2-9 which it is capable of being used and of the enforceable
2-10 restrictions on its use; and>
2-11 <(C) both the seller and purchaser seek to
2-12 maximize their gains and neither is in a position to take advantage
2-13 of the exigencies of the other>.
2-14 SECTION 2. Section 5.04, Tax Code, is amended by adding
2-15 Subsections (c)-(g) to read as follows:
2-16 (c) Every two years, the following appraisal district
2-17 personnel must successfully complete at least 20 classroom hours of
2-18 continuing education approved by the Texas Commission on Licensing
2-19 and Regulation, of which at least six hours must relate to the laws
2-20 and legal issues relating to property appraisal:
2-21 (1) the chief appraiser; and
2-22 (2) each employee of the appraisal district who:
2-23 (A) appraises property for the district; or
2-24 (B) is a supervisory employee in a commercial or
2-25 residential property appraisal department of the district.
2-26 (d) A person covered by Subsection (c) who is an employee of
2-27 an appraisal district on September 1, 1995, must initially complete
3-1 the educational requirements of that section before September 1,
3-2 1997.
3-3 (e) A person covered by Subsection (c) who is employed by an
3-4 appraisal district after September 1, 1995, must complete the
3-5 educational requirements of Subsection (c) before the second
3-6 anniversary of the date that the person is employed by the
3-7 district.
3-8 (f) The appraisal district that employs a person covered by
3-9 Subsection (c) is prohibited from continuing the employment of the
3-10 person if the person fails to comply with Subsection (d) or (e).
3-11 (g) The Texas Commission on Licensing and Regulation shall
3-12 adopt rules to administer Subsections (c)-(f). The rules must
3-13 prescribe the means of establishing whether a person employed by an
3-14 appraisal district has complied with those subsections.
3-15 SECTION 3. Subchapter A, Chapter 6, Tax Code, is amended by
3-16 adding Section 6.14 to read as follows:
3-17 Sec. 6.14. APPLICABILITY OF OPEN RECORDS LAW; COST OF
3-18 COPIES. (a) An appraisal district is subject to the open records
3-19 law, Chapter 552, Government Code.
3-20 (b) The amount charged by an appraisal district for a copy
3-21 of a public record may not exceed the amount authorized by
3-22 Subchapter F, Chapter 552, Government Code.
3-23 SECTION 4. Section 6.03(a), Tax Code, is amended to read as
3-24 follows:
3-25 (a) The appraisal district is governed by a board of five
3-26 directors. To be eligible to serve on the board of directors, an
3-27 individual must be a resident of the district and <must> have
4-1 resided in the district for at least two years immediately
4-2 preceding the date the individual takes office, and may not owe
4-3 delinquent taxes to any taxing unit served by the district. In an
4-4 appraisal district established for a county having a population of
4-5 more than 50,000, an individual who has served for all or part of
4-6 three previous terms on the board is ineligible to serve on the
4-7 board. In an appraisal district established for any other county,
4-8 an individual who has served for all or part of two consecutive
4-9 terms on the board is ineligible to serve on the board during a
4-10 term that begins on the next January 1 following the second of
4-11 those consecutive terms. To be eligible to serve on the board of
4-12 an appraisal district established for a county having a population
4-13 of at least 200,000 bordering a county having a population of at
4-14 least 2,000,000 and the Gulf of Mexico, an individual must be a
4-15 member of the governing body or an elected officer of a taxing unit
4-16 entitled to vote on the appointment of board members under this
4-17 section. However, an employee of a taxing unit that participates in
4-18 the district is not eligible to serve on the board unless the
4-19 individual is also a member of the governing body or an elected
4-20 official of a taxing unit that participates in the district.
4-21 SECTION 5. Section 6.05(c), Tax Code, is amended to read as
4-22 follows:
4-23 (c) The chief appraiser is the chief administrator of the
4-24 appraisal office. The chief appraiser is appointed by and serves
4-25 at the pleasure of the appraisal district board of directors. If a
4-26 taxing unit performs the duties of the appraisal office pursuant to
4-27 a contract, the assessor for the unit is the chief appraiser. To
5-1 be eligible to serve as chief appraiser, a person must:
5-2 (1) meet or exceed the educational qualifications
5-3 required under Article 8886, Revised Statutes, for registration as
5-4 a senior property tax consultant; and
5-5 (2) have passed the examination required for
5-6 registration as a senior property tax consultant under that
5-7 article.
5-8 SECTION 6. Section 11.18, Tax Code, is amended by adding
5-9 Subsection (k) to read as follows:
5-10 (k) The amount of an exemption under Subsection (a) may not
5-11 exceed the amount computed by multiplying the market value of the
5-12 organization's property subject to the exemption in the taxing unit
5-13 by the ratio of the organization's charitable functions to all of
5-14 the organization's functions, as determined by the chief appraiser.
5-15 SECTION 7. Section 11.23(i), Tax Code, is amended to read as
5-16 follows:
5-17 (i) Community Service Clubs. An association that qualifies
5-18 as a community service club is entitled to an exemption from
5-19 taxation of the tangible property the club owns that qualifies
5-20 under Article VIII, Section 2, of the constitution and that is not
5-21 used for profit or held for gain. To qualify as a community
5-22 service club for the purposes of this subsection, an association
5-23 must:
5-24 (1) be organized to promote and must engage
5-25 <primarily> in promoting:
5-26 (A) the religious, educational, and physical
5-27 development of boys, girls, young men, or young women;
6-1 (B) the development of the concepts of
6-2 patriotism and love of country; or <and>
6-3 (C) the development of interest in community,
6-4 national, and international affairs;
6-5 (2) be affiliated with a state or national
6-6 organization of similar purpose;
6-7 (3) be open to membership without regard to race,
6-8 religion, or national origin; and
6-9 (4) be operated in a way that does not result in
6-10 accrual of distributable profits, realization of private gain
6-11 resulting from payment of compensation in excess of a reasonable
6-12 allowance for salary or other compensation for services rendered,
6-13 or realization of any other form of private gain.
6-14 SECTION 8. Section 25.02(a), Tax Code, is amended to read as
6-15 follows:
6-16 (a) The appraisal records shall be in the form prescribed by
6-17 the comptroller and shall include:
6-18 (1) the name and address of the owner or, if the name
6-19 or address is unknown, a statement that it is unknown;
6-20 (2) a description of real property;
6-21 (3) a description of separately taxable estates or
6-22 interests in real property, including taxable possessory interests
6-23 in exempt real property;
6-24 (4) a description of personal property;
6-25 (5) the appraised value of land and, if the land is
6-26 appraised as provided by Subchapter C, D, or E, Chapter 23 of this
6-27 code, the market value of the land;
7-1 (6) the appraised value of improvements to land;
7-2 (7) the appraised value of a separately taxable estate
7-3 or interest in land;
7-4 (8) the appraised value of personal property;
7-5 (9) the kind of any partial exemption the owner is
7-6 entitled to receive, whether the exemption applies to appraised or
7-7 assessed value, and, in the case of an exemption authorized by
7-8 Section 11.23 of this code, the amount of the exemption;
7-9 (10) the tax year to which the appraisal applies; and
7-10 (11) an identification of each taxing unit in which
7-11 the property is taxable.
7-12 SECTION 9. Section 41.43, Tax Code, is amended to read as
7-13 follows:
7-14 Sec. 41.43. Protest of Inequality of Appraisal. A protest
7-15 on the ground of unequal appraisal of property shall be determined
7-16 in favor of the protesting party if the protesting party
7-17 establishes that the appraised value <appraisal ratio> of the
7-18 property is greater than the median level of appraisal of:
7-19 (1) a reasonable and representative sample of other
7-20 properties in the appraisal district; or
7-21 (2) a sample of properties in the appraisal district
7-22 consisting of a reasonable number of other properties similarly
7-23 situated to, or of the same general kind or character as, the
7-24 property subject to the protest.
7-25 SECTION 10. Subchapter B, Chapter 42, Tax Code, is amended
7-26 by adding Section 42.255 to read as follows:
7-27 Sec. 42.255. REMEDY FOR DENIAL OF APPRAISAL AS LAND
8-1 DESIGNATED FOR AGRICULTURAL USE. If the court determines that
8-2 property for which appraisal under Subchapter C or D, Chapter 23,
8-3 has been denied is eligible for appraisal under the applicable
8-4 subchapter, the property owner is entitled to a reduction of the
8-5 appraised value on the appraisal roll to the appraised value
8-6 determined by the court.
8-7 SECTION 11. Section 42.29, Tax Code, is amended to read as
8-8 follows:
8-9 Sec. 42.29. Attorney's Fees. A property owner who prevails
8-10 in an appeal to the court under Section 42.25, 42.255, or <Section>
8-11 42.26 of this code may be awarded reasonable attorney's fees not to
8-12 exceed the greater of $15,000 or 20 percent of the total amount by
8-13 which the property owner's tax liability is reduced as a result of
8-14 the appeal. The award of attorney's fees, however, may not exceed
8-15 the total amount by which the property owner's tax liability is
8-16 reduced as a result of the appeal.
8-17 SECTION 12. This Act takes effect January 1, 1996.
8-18 SECTION 13. The importance of this legislation and the
8-19 crowded condition of the calendars in both houses create an
8-20 emergency and an imperative public necessity that the
8-21 constitutional rule requiring bills to be read on three several
8-22 days in each house be suspended, and this rule is hereby suspended.