By Raymond H.B. No. 2965
74R7685 JD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the inclusion of ad valorem tax abatements in the
1-3 determination of the value of taxable property in a school
1-4 district.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 11.86, Education Code, is amended by
1-7 amending Subsection (a) and adding Subsection (i) to read as
1-8 follows:
1-9 (a) The comptroller shall conduct an annual study using
1-10 comparable sales and generally accepted auditing and sampling
1-11 techniques to determine the total value of all taxable property in
1-12 each school district. The study shall determine the taxable value
1-13 of all property and of each category of property within the
1-14 district and the productivity value of all land that qualifies for
1-15 appraisal on the basis of its productive capacity and for which the
1-16 owner has applied for and received a productivity appraisal. The
1-17 comptroller shall make appropriate adjustments in the study to
1-18 account for actions taken under Chapter 36. In conducting the
1-19 study, the comptroller shall review the appraisal standards,
1-20 procedures, and methodology used by each appraisal district to
1-21 determine the taxable value of property in each school district.
1-22 The review must test the validity of the taxable values assigned to
1-23 each category of property by the appraisal district:
1-24 (1) using, if appropriate, samples selected through
2-1 generally accepted sampling techniques; and
2-2 (2) according to generally accepted standard
2-3 valuation, statistical compilation, and analysis techniques. If
2-4 the comptroller finds in the annual study that generally accepted
2-5 appraisal standards and practices were used by the appraisal
2-6 district in valuing a particular category of property, and that the
2-7 taxable values assigned to each category of property by the
2-8 appraisal district are valid, the appraisal roll value of that
2-9 category of property is presumed to represent taxable value. In
2-10 the absence of such a presumption, the comptroller shall estimate
2-11 the taxable value of that category of property using generally
2-12 accepted standard valuation, statistical compilation, and analysis
2-13 techniques. For the purposes of this section, "taxable value"
2-14 means market value less:
2-15 (1) the total dollar amount of any exemptions of
2-16 part but not all of the value of taxable property required by the
2-17 constitution or a statute that a district lawfully granted in the
2-18 year that is the subject of the study;
2-19 (2) the portion of the total dollar amount of
2-20 any exemptions <abatements> granted <before May 31, 1993,> within a
2-21 reinvestment zone under agreements authorized by <the Property
2-22 Redevelopment and Tax Abatement Act (>Chapter 312, Tax Code,
2-23 computed as provided by Subsection (i)<)>;
2-24 (3) the total dollar amount of any captured
2-25 appraised value of property that is located in a reinvestment zone
2-26 and that is eligible for tax increment financing under the Tax
2-27 Increment Financing Act (Chapter 311, Tax Code);
3-1 (4) the total dollar amount of any exemptions
3-2 granted under Section 11.251, Tax Code;
3-3 (5) the difference between the market value and
3-4 the productivity value of land that qualifies for appraisal on the
3-5 basis of its productive capacity, except that the productivity
3-6 value may not exceed the fair market value of the land;
3-7 (6) the portion of the appraised value of
3-8 residence homesteads of the elderly on which school district taxes
3-9 are not imposed in the year that is the subject of the study,
3-10 calculated as if the residence homesteads were appraised at the
3-11 full value required by law;
3-12 (7) a portion of the market value of property
3-13 not otherwise fully taxable by the district at market value because
3-14 of action required by statute or the Texas Constitution that, if
3-15 the tax rate adopted by the district is applied to it, produces an
3-16 amount equal to the difference between the tax that the district
3-17 would have imposed on the property if the property were fully
3-18 taxable at market value and the tax that the district is actually
3-19 authorized to impose on the property; and
3-20 (8) the market value of all tangible personal
3-21 property, other than manufactured homes, owned by a family or
3-22 individual and not held or used for the production of income.
3-23 (i) For purposes of Subsection (a)(2)(2), the portion of the
3-24 total amount of exemptions granted is computed according to the
3-25 following formula:
3-26 DPV/WADA
3-27 where:
4-1 (1) "AD" is the dollar amount deducted from the total
4-2 market value of property in the school district;
4-3 (2) "AV" is the total dollar amount of ad valorem tax
4-4 exemptions granted in the district under agreements authorized by
4-5 Chapter 312, Tax Code;
4-6 (3) "DPV" is the taxable value of property in the
4-7 school district for the previous tax year determined under this
4-8 section; and
4-9 (4) "WADA" has the meaning assigned by Section 16.302.
4-10 SECTION 2. Section 36.008, Education Code, is amended to
4-11 read as follows:
4-12 Sec. 36.008. Tax Abatements. <(a)> A tax abatement
4-13 agreement executed by a school district that is involved in
4-14 consolidation or in detachment and annexation of territory under
4-15 this chapter is not affected and applies to the taxation of the
4-16 property covered by the agreement as if executed by the district
4-17 within which the property is included.
4-18 <(b) The commissioner shall determine the wealth per student
4-19 of a school district under this chapter as if any tax abatement
4-20 agreement executed by a school district on or after May 31, 1993,
4-21 had not been executed.>
4-22 SECTION 3. The importance of this legislation and the
4-23 crowded condition of the calendars in both houses create an
4-24 emergency and an imperative public necessity that the
4-25 constitutional rule requiring bills to be read on three several
4-26 days in each house be suspended, and this rule is hereby suspended,
4-27 and that this Act take effect and be in force from and after its
5-1 passage, and it is so enacted.