By Merritt H.B. No. 3505
75R5018 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration of appraisal districts and the
1-3 appraisal of property for ad valorem tax purposes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.12, Tax Code, is amended by adding
1-6 Subsection (d) to read as follows:
1-7 (d) For purposes of this section, the appraisal ratio of
1-8 real property to which Section 23.21 applies is the ratio of the
1-9 property's market value as determined by the appraisal district or
1-10 appraisal review board, as applicable, to the market value of the
1-11 property according to law. The appraisal ratio is not calculated
1-12 according to the appraised value of the property as limited by
1-13 Section 23.21.
1-14 SECTION 2. Section 5.12(b), Tax Code, is amended to read as
1-15 follows:
1-16 (b) At the written request of the governing bodies of a
1-17 majority of the taxing units participating in an appraisal district
1-18 or of a majority of the group of taxing units composed of the
1-19 municipalities, school districts, and county participating in an
1-20 [entitled to vote on the appointment of] appraisal district
1-21 [directors], the comptroller shall audit the performance of the
1-22 appraisal district. The governing bodies may request a general
1-23 audit of the performance of the appraisal district or may request
1-24 an audit of only one or more particular duties, practices,
2-1 functions, departments, or other appraisal district matters.
2-2 SECTION 3. Sections 5.13(c), (f), and (h), Tax Code, are
2-3 amended to read as follows:
2-4 (c) The comptroller must approve the specific plan for the
2-5 performance audit of an appraisal district. Before approving an
2-6 audit plan, the comptroller must provide any interested person an
2-7 opportunity to appear before the comptroller and to comment on the
2-8 proposed plan. Not later than the 20th day before the date the
2-9 comptroller considers the plan for an appraisal district
2-10 performance audit, the comptroller must notify the county
2-11 assessor-collector who governs [presiding officer of] the appraisal
2-12 district [board of directors] that the comptroller intends to
2-13 consider the plan. The notice must include the time, date, and
2-14 place of the meeting to consider the plan. [Immediately after
2-15 receiving the notice, the presiding officer shall deliver a copy of
2-16 the notice to the other members of the appraisal district board of
2-17 directors.]
2-18 (f) The comptroller shall report the results of the [its]
2-19 audit in writing to the governing body of each taxing unit that
2-20 participates in the appraisal district and[,] to the county
2-21 assessor-collector who governs [chief appraiser, and to the
2-22 presiding officer of] the appraisal district [board of directors].
2-23 If the audit was requested under Section 5.12(c) [of this code],
2-24 the comptroller shall also provide a report to a representative of
2-25 the property owners who requested the audit.
2-26 (h) At any time after the request for an audit is made, the
2-27 comptroller may discontinue the audit in whole or in part if
3-1 requested to do so by:
3-2 (1) the governing bodies of a majority of the taxing
3-3 units participating in the district, if the audit was requested by
3-4 a majority of those units;
3-5 (2) the governing bodies of a majority of the group of
3-6 taxing units composed of the municipalities, school districts, and
3-7 county participating in the [entitled to vote on the appointment
3-8 of] appraisal district [directors], if the audit was requested by a
3-9 majority of those units; or
3-10 (3) if the audit was requested under Section 5.12(c)
3-11 [of this code], by the taxpayers who requested the audit.
3-12 SECTION 4. Section 6.01(a), Tax Code, is amended to read as
3-13 follows:
3-14 (a) An appraisal district is established in each county.
3-15 The district is governed by the assessor-collector of the county
3-16 for which the district is established, who serves as the chief
3-17 appraiser for the district.
3-18 SECTION 5. Section 6.02(b), Tax Code, is amended to read as
3-19 follows:
3-20 (b) A taxing unit that has boundaries extending into two or
3-21 more counties may choose to participate in only one of the
3-22 appraisal districts. In that event, the boundaries of the district
3-23 chosen extend outside the county to the extent of the unit's
3-24 boundaries. To be effective, the choice must be approved by the
3-25 county assessor-collector who governs [resolution of the board of
3-26 directors of] the district chosen. The choice of a school district
3-27 to participate in a single appraisal district does not apply to
4-1 property annexed to the school district under Subchapter C or G,
4-2 Chapter 36, Education Code, unless:
4-3 (1) the school district taxes property other than
4-4 property annexed to the district under Subchapter C or G, Chapter
4-5 36, Education Code, in the same county as the annexed property; or
4-6 (2) the annexed property is contiguous to property in
4-7 the school district other than property annexed to the district
4-8 under Subchapter C or G, Chapter 36, Education Code.
4-9 SECTION 6. Section 6.05(b), Tax Code, is amended to read as
4-10 follows:
4-11 (b) The county assessor-collector who governs [board of
4-12 directors of] an appraisal district may contract with an appraisal
4-13 office in another district or with a taxing unit in the district to
4-14 perform the duties of the appraisal office for the district.
4-15 SECTION 7. Section 6.051, Tax Code, is amended to read as
4-16 follows:
4-17 Sec. 6.051. Ownership or Lease of Real Property. (a) The
4-18 county assessor-collector who governs [board of directors of] an
4-19 appraisal district may purchase or lease real property and may
4-20 construct improvements as necessary to establish and operate the
4-21 appraisal office or a branch appraisal office.
4-22 (b) The acquisition or conveyance of real property or the
4-23 construction or renovation of a building or other improvement by an
4-24 appraisal district must be approved by the governing bodies of
4-25 three-fourths of the group of taxing units composed of the
4-26 municipalities, school districts, and county participating in the
4-27 appraisal district [entitled to vote on the appointment of board
5-1 members]. The county assessor-collector [board of directors by
5-2 resolution] may propose a property transaction or other action for
5-3 which this subsection requires approval of the taxing units. The
5-4 chief appraiser shall notify the presiding officer of each
5-5 governing body entitled to vote on the approval of the proposal by
5-6 delivering a copy of the proposal [board's resolution], together
5-7 with information showing the costs of other available alternatives
5-8 to the proposal. On or before the 30th day after the date the
5-9 presiding officer receives notice of the proposal, the governing
5-10 body of a taxing unit by resolution may approve or disapprove the
5-11 proposal. If a governing body fails to act on or before that 30th
5-12 day or fails to file its resolution with the chief appraiser on or
5-13 before the 10th day after that 30th day, the proposal is treated as
5-14 if it were disapproved by the governing body.
5-15 (c) The county assessor-collector [board of directors] may
5-16 convey real property owned by the district, and the proceeds shall
5-17 be credited to each taxing unit that participates in the district
5-18 in proportion to the unit's allocation of the appraisal district
5-19 budget in the year in which the transaction occurs. A conveyance
5-20 must be approved as provided by Subsection (b) [of this section],
5-21 and any proceeds shall be apportioned by an amendment to the annual
5-22 budget made as provided by Section 6.06(c) [Subsection (c) of
5-23 Section 6.06 of this code].
5-24 [(d) An acquisition of real property by an appraisal
5-25 district before January 1, 1988, may be validated before March 1,
5-26 1988, in the manner provided by Subsection (b) of this section for
5-27 the acquisition of real property.]
6-1 SECTION 8. Sections 6.06(a), (b), (c), (f), (h), (i), and
6-2 (j), Tax Code, are amended to read as follows:
6-3 (a) Each year the county assessor-collector [chief
6-4 appraiser] shall prepare a proposed budget for the operations of
6-5 the district for the following tax year and shall submit copies to
6-6 each taxing unit participating in the district [and to the district
6-7 board of directors] before June 15. The county assessor-collector
6-8 [He] shall include in the budget a list showing each proposed
6-9 position, the proposed salary for the position, all benefits
6-10 proposed for the position, each proposed capital expenditure, and
6-11 an estimate of the amount of the budget that will be allocated to
6-12 each taxing unit. Each municipality, each school district, and the
6-13 county participating in the district [taxing unit entitled to vote
6-14 on the appointment of board members] shall maintain a copy of the
6-15 proposed budget for public inspection at its principal
6-16 administrative office.
6-17 (b) The county assessor-collector [board of directors] shall
6-18 hold a public hearing to consider the budget. The county
6-19 assessor-collector [secretary of the board] shall deliver to the
6-20 presiding officer of the governing body of each taxing unit
6-21 participating in the district not later than the 10th day before
6-22 the date of the hearing a written notice of the date, time, and
6-23 place fixed for the hearing. The county assessor-collector [board]
6-24 shall complete the [its] hearings, make necessary [any] amendments
6-25 to the proposed budget [it desires], and finally approve a budget
6-26 before September 15. If governing bodies of a majority of the
6-27 group of taxing units composed of the municipalities, school
7-1 districts, and county participating in the appraisal district
7-2 [taxing units entitled to vote on the appointment of board members]
7-3 adopt resolutions disapproving a budget and file them with the
7-4 county assessor-collector [secretary of the board] within 30 days
7-5 after its adoption, the budget does not take effect, and the county
7-6 assessor-collector [board] shall adopt a new budget within 30 days
7-7 of the disapproval.
7-8 (c) The county assessor-collector [board] may amend the
7-9 approved budget at any time[,] but [the secretary of the board]
7-10 must deliver a written copy of a proposed amendment to the
7-11 presiding officer of the governing body of each taxing unit
7-12 participating in the district not later than the 30th day before
7-13 the date the county assessor-collector [board] acts on it.
7-14 (f) Payments shall be made to a depository designated by the
7-15 county assessor-collector [district board of directors]. The
7-16 district's funds may be disbursed only by a written check, draft,
7-17 or order signed by the county assessor-collector [chairman and
7-18 secretary of the board or, if authorized by resolution of the
7-19 board, by the chief appraiser].
7-20 (h) If a newly formed taxing unit or a taxing unit that did
7-21 not impose taxes in the preceding year imposes taxes in any tax
7-22 year, that unit is allocated a portion of the amount budgeted to
7-23 operate the district as if it had imposed taxes in the preceding
7-24 year, except that the amount of taxes the unit imposes in the
7-25 current year is used to calculate its allocation. Before the
7-26 amount of taxes to be imposed for the current year is known, the
7-27 allocation may be based on an estimate to which the county
8-1 assessor-collector [district board of directors] and the governing
8-2 body of the unit agree, and the payments made after that amount is
8-3 known shall be adjusted to reflect the amount imposed. The
8-4 payments of a newly formed taxing unit that has no source of funds
8-5 are postponed until the unit has received adequate tax or other
8-6 revenues.
8-7 (i) The fiscal year of an appraisal district is the calendar
8-8 year unless the governing bodies of three-fourths of the group of
8-9 taxing units composed of the municipalities, school districts, and
8-10 county participating in the appraisal district [taxing units
8-11 entitled to vote on the appointment of board members] adopt
8-12 resolutions proposing a different fiscal year and file them with
8-13 the county assessor-collector [secretary of the board] not more
8-14 than 12 and not less than eight months before the first day of the
8-15 fiscal year proposed by the resolutions. If the fiscal year of an
8-16 appraisal district is changed under this subsection, the county
8-17 assessor-collector [chief appraiser] shall prepare a proposed
8-18 budget for the fiscal year as provided by Subsection (a) [of this
8-19 section] before the 15th day of the seventh month preceding the
8-20 first day of the fiscal year established by the change, and [the
8-21 board of directors] shall adopt a budget for the fiscal year as
8-22 provided by Subsection (b) [of this section] before the 15th day of
8-23 the fourth month preceding the first day of the fiscal year
8-24 established by the change. Unless the appraisal district adopts a
8-25 different method of allocation under Section 6.061 [of this code],
8-26 the allocation of the budget to each taxing unit shall be
8-27 calculated as provided by Subsection (d) [of this section] using
9-1 the amount of property taxes imposed by each participating taxing
9-2 unit in the most recent tax year preceding the fiscal year
9-3 established by the change for which the necessary information is
9-4 available. Each taxing unit shall pay its allocation as provided
9-5 by Subsection (e) [of this section], except that the first payment
9-6 shall be made before the first day of the fiscal year established
9-7 by the change and subsequent payments shall be made quarterly. In
9-8 the year in which a change in the fiscal year occurs, the budget
9-9 that takes effect on January 1 of that year may be amended as
9-10 necessary as provided by Subsection (c) [of this section] in order
9-11 to accomplish the change in fiscal years.
9-12 (j) If the total amount of the payments made or due to be
9-13 made by the taxing units participating in an appraisal district
9-14 exceeds the amount actually spent or obligated to be spent during
9-15 the fiscal year for which the payments were made, the county
9-16 assessor-collector [chief appraiser] shall credit the excess amount
9-17 against each taxing unit's allocated payments for the following
9-18 year in proportion to the amount of each unit's budget allocation
9-19 for the fiscal year for which the payments were made. If a taxing
9-20 unit that paid its allocated amount is not allocated a portion of
9-21 the district's budget for the following fiscal year, the county
9-22 assessor-collector [chief appraiser] shall refund to the taxing
9-23 unit its proportionate share of the excess funds not later than the
9-24 150th day after the end of the fiscal year for which the payments
9-25 were made.
9-26 SECTION 9. Section 6.061, Tax Code, is amended to read as
9-27 follows:
10-1 Sec. 6.061. CHANGES IN METHOD OF FINANCING. (a) The county
10-2 assessor-collector who governs [board of directors of] an appraisal
10-3 district, by signed order [resolution adopted] and delivered to
10-4 each taxing unit participating in the district after June 15 and
10-5 before August 15, may prescribe a different method of allocating
10-6 the costs of operating the district unless the governing body of
10-7 any taxing unit that participates in the district adopts a
10-8 resolution opposing the different method[,] and files it with the
10-9 county assessor-collector [board of directors] before September 1.
10-10 If a [board] proposal is rejected, the county assessor-collector
10-11 [board] shall notify, in writing, each taxing unit participating in
10-12 the district before September 15.
10-13 (b) The taxing units participating in an appraisal district
10-14 may adopt a different method of allocating the costs of operating
10-15 the district if the governing bodies of three-fourths of the group
10-16 of taxing units composed of the municipalities, school districts,
10-17 and county participating in the appraisal district [taxing units
10-18 that are entitled to vote on the appointment of board members]
10-19 adopt resolutions providing for the other method. However, a
10-20 change under this subsection is not valid if it requires any taxing
10-21 unit to pay a greater proportion of the appraisal district's costs
10-22 than the unit would pay under Section 6.06 [of this code] without
10-23 the consent of the governing body of that unit.
10-24 (c) An official copy of a resolution under this section must
10-25 be filed with the county assessor-collector [chief appraiser of the
10-26 appraisal district] after April 30 and before May 15 or the
10-27 resolution is ineffective.
11-1 (d) Before May 20, the county assessor-collector [chief
11-2 appraiser] shall determine whether a sufficient number of eligible
11-3 taxing units have filed valid resolutions proposing a change in the
11-4 allocation of district costs for the change to take effect. Before
11-5 May 25, the county assessor-collector [chief appraiser] shall
11-6 notify each taxing unit participating in the district of each
11-7 change that is adopted.
11-8 (e) A change in allocation of district costs made as
11-9 provided by this section remains in effect until changed in a
11-10 manner provided by this section or rescinded by resolution of a
11-11 majority of the governing bodies of the group of taxing units
11-12 composed of the municipalities, school districts, and county
11-13 participating in the appraisal district [that are entitled to vote
11-14 on appointment of board members under Section 6.03 of this code].
11-15 SECTION 10. Sections 6.062(a) and (c), Tax Code, are amended
11-16 to read as follows:
11-17 (a) Not later than the 10th day before the date of the
11-18 public hearing at which the county assessor-collector [board of
11-19 directors] considers the appraisal district budget, the county
11-20 assessor-collector [chief appraiser] shall give notice of the
11-21 public hearing by publishing the notice in a newspaper having
11-22 general circulation in the county for which the appraisal district
11-23 is established. The notice may not be smaller than one-quarter
11-24 page of a standard-size or tabloid-size newspaper and may not be
11-25 published in the part of the paper in which legal notices and
11-26 classified advertisements appear.
11-27 (c) The notice must state that the appraisal district is
12-1 supported solely by payments from the local taxing units served by
12-2 the appraisal district. The notice must also contain the following
12-3 statement: "If approved by the appraisal district's county
12-4 assessor-collector [district board of directors] at the public
12-5 hearing, this proposed budget will take effect automatically unless
12-6 disapproved by the governing bodies of the county, school
12-7 districts, cities, and towns served by the appraisal district. A
12-8 copy of the proposed budget is available for public inspection in
12-9 the office of each of those governing bodies."
12-10 SECTION 11. Section 6.063, Tax Code, is amended to read as
12-11 follows:
12-12 Sec. 6.063. Financial Audit. (a) At least once each year,
12-13 the county assessor-collector who governs [board of directors of]
12-14 an appraisal district shall have prepared an audit of its affairs
12-15 by an independent certified public accountant or a firm of
12-16 independent certified public accountants.
12-17 (b) The report of the audit is a public record. A copy of
12-18 the report shall be delivered to the county assessor-collector, the
12-19 county judge, and the presiding officer of the governing body of
12-20 each municipality and school district participating in the
12-21 appraisal district [taxing unit eligible to vote on the appointment
12-22 of district directors], and a reasonable number of copies shall be
12-23 available for inspection at the appraisal office.
12-24 SECTION 12. Sections 6.09(b) and (c), Tax Code, are amended
12-25 to read as follows:
12-26 (b) The county assessor-collector who governs an appraisal
12-27 district [board of directors] shall designate as the district
13-1 depository the financial institution or institutions that offer the
13-2 most favorable terms and conditions for the handling of the
13-3 district's funds.
13-4 (c) The county assessor-collector [board] shall solicit bids
13-5 to be designated as depository for the district at least once in
13-6 each two-year period.
13-7 SECTION 13. Sections 6.11(a) and (b), Tax Code, are amended
13-8 to read as follows:
13-9 (a) The county assessor-collector who governs [board of
13-10 directors of] an appraisal district may not make a contract for the
13-11 district requiring an expenditure of more than $15,000 unless the
13-12 proposed contract is submitted to competitive bidding.
13-13 (b) The county assessor-collector [board of directors] is
13-14 subject to the same requirements and has the same powers regarding
13-15 the following matters as apply to a commissioners court under the
13-16 Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271,
13-17 Local Government Code):
13-18 (1) notice of the contract;
13-19 (2) issuance of the contract to the lowest responsible
13-20 bidder;
13-21 (3) rejection of bids;
13-22 (4) expenditure of funds on the completion and
13-23 acceptance of the contract;
13-24 (5) exceptions to the competitive bidding requirement;
13-25 (6) change orders; and
13-26 (7) effect of noncompliance with the competitive
13-27 bidding requirements.
14-1 SECTION 14. Section 6.12(a), Tax Code, is amended to read as
14-2 follows:
14-3 (a) The county assessor-collector who governs an [chief
14-4 appraiser of each] appraisal district shall appoint[, with the
14-5 advice and consent of the board of directors,] an agricultural
14-6 advisory board composed of three or more members as determined by
14-7 the board.
14-8 SECTION 15. Sections 6.24(a) and (b), Tax Code, are amended
14-9 to read as follows:
14-10 (a) The governing body of a taxing unit other than a county
14-11 may contract as provided by the Interlocal Cooperation Act with the
14-12 governing body of another unit [or with the board of directors of
14-13 an appraisal district] for the other unit [or the district] to
14-14 perform duties relating to the assessment or collection of taxes.
14-15 (b) The commissioners court with the approval of the county
14-16 assessor-collector may contract as provided by the Interlocal
14-17 Cooperation Act with the governing body of another taxing unit in
14-18 the county [or with the board of directors of the appraisal
14-19 district] for the other unit [or the district] to perform duties
14-20 relating to the assessment or collection of taxes for the county.
14-21 If a county contracts to have its taxes assessed and collected by
14-22 another taxing unit [or by the appraisal district], the contract
14-23 shall require the other unit [or the district] to assess and
14-24 collect all taxes the county is required to assess and collect.
14-25 SECTION 16. Sections 6.41(b), (c), (d), (e), and (f), Tax
14-26 Code, are amended to read as follows:
14-27 (b) The board consists of three members. However, the
15-1 county assessor-collector who governs the appraisal district [board
15-2 of directors by resolution of a majority of its members] may
15-3 increase the size of the appraisal review board to not more than
15-4 nine members or, in a district established for a county with a
15-5 population of at least 250,000, to not more than 15 members or, in
15-6 a district established for a county with a population of at least
15-7 one million, to not more than 30 members or, in a district
15-8 established for a county with a population of at least 1,500,000,
15-9 to not more than 45 members.
15-10 (c) To be eligible to serve on the board, an individual must
15-11 be a resident of the district and must have resided in the district
15-12 for at least two years. An [A member of the appraisal district
15-13 board of directors or an] officer or employee of the comptroller,
15-14 the appraisal office, or a taxing unit is ineligible to serve on
15-15 the board. In an appraisal district established for a county
15-16 having a population of more than 300,000, an individual who has
15-17 served for all or part of three previous terms as a board member or
15-18 auxiliary board member on the appraisal review board is ineligible
15-19 to serve on the appraisal review board. In an appraisal district
15-20 established for any other county, an individual who has served for
15-21 all or part of three consecutive terms as a board member or
15-22 auxiliary board member on the appraisal review board is ineligible
15-23 to serve on the appraisal review board during a term that begins on
15-24 the next January 1 following the third of those consecutive terms.
15-25 (d) Members of the board are appointed by the
15-26 assessor-collector of the county for which the appraisal district
15-27 is established [resolution of a majority of the appraisal district
16-1 board of directors]. A vacancy on the board is filled in the same
16-2 manner for the unexpired portion of the term.
16-3 (e) Members of the board hold office for terms of two years
16-4 beginning January 1. The county assessor-collector [appraisal
16-5 district board of directors by resolution] shall provide for
16-6 staggered terms, so that the terms of as close to one-half of the
16-7 members as possible expire each year. In making the initial
16-8 appointments, the county assessor-collector [board of directors]
16-9 shall designate those members who serve terms of one year.
16-10 (f) A member of the board may be removed from the board by
16-11 the county assessor-collector [a majority vote of the appraisal
16-12 district board of directors]. Grounds for removal are:
16-13 (1) a violation of Section 6.412 or 6.413; or
16-14 (2) good cause relating to the attendance of members
16-15 at called meetings of the board as established by written policy
16-16 adopted by the county assessor-collector [a majority of the
16-17 appraisal district board of directors].
16-18 SECTION 17. Subchapter B, Chapter 23, Tax Code, is amended
16-19 by adding Section 23.21 to read as follows:
16-20 Sec. 23.21. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY.
16-21 (a) The appraised value of real property for the first tax year
16-22 after the tax year in which the owner acquires the property may not
16-23 exceed the market value of the property. Notwithstanding Section
16-24 23.01, the appraised value of the property in each subsequent tax
16-25 year until the end of the tax year in which the ownership of the
16-26 property changes may not exceed the sum of:
16-27 (1) the appraised value of the property for the
17-1 preceding tax year as adjusted by the chief appraiser for the
17-2 current tax year to reflect the change from the preceding tax year
17-3 in the purchasing power of the dollar for consumers in this state;
17-4 and
17-5 (2) the market value of all new improvements to the
17-6 property.
17-7 (b) For each tax year, using the index that the comptroller
17-8 considers to most accurately report changes in the purchasing power
17-9 of the dollar for consumers in this state, the comptroller shall
17-10 determine and publicize the percentage by which the appraised value
17-11 of real property may be increased under Subsection (a)(1). Each
17-12 chief appraiser shall use the percentage determined by the
17-13 comptroller under this subsection to determine the maximum increase
17-14 in the appraised value of real property appraised by that chief
17-15 appraiser.
17-16 (c) When appraising real property, the chief appraiser
17-17 shall:
17-18 (1) appraise the property at its market value; and
17-19 (2) include in the appraisal records both the market
17-20 value of the property and the amount calculated under Subsection
17-21 (a).
17-22 (d) This section does not apply to property appraised under
17-23 Subchapter C, D, E, F, or G.
17-24 (e) In Subsection (a), "new improvement" means an
17-25 improvement to real property that is made after the appraisal of
17-26 the property for the preceding tax year and that increases the
17-27 market value of the property. The term does not include ordinary
18-1 maintenance of an existing structure or the grounds or another
18-2 feature of the property.
18-3 (f) For purposes of this section, the owner of real property
18-4 on January 1, 1998, is considered to have acquired the property in
18-5 the 1997 tax year.
18-6 SECTION 18. Section 25.01(b), Tax Code, is amended to read
18-7 as follows:
18-8 (b) The county assessor-collector who governs the appraisal
18-9 district [chief appraiser with the approval of the board of
18-10 directors of the district] may contract with a private appraisal
18-11 firm to perform appraisal services for the district[, subject to
18-12 his approval]. A contract for private appraisal services is void
18-13 if the amount of compensation to be paid the private appraisal firm
18-14 is contingent on the amount of or increase in appraised, assessed,
18-15 or taxable value of property appraised by the appraisal firm.
18-16 SECTION 19. Section 25.19(g), Tax Code, is amended to read
18-17 as follows:
18-18 (g) The county assessor-collector who governs the appraisal
18-19 district [chief appraiser, with the approval of the appraisal
18-20 district board of directors,] may dispense with the notice required
18-21 by Subdivision (1) of Subsection (a) [of this section] if the
18-22 amount of increase in appraised value is $1,000 or less.
18-23 SECTION 20. Subchapter C, Chapter 41, Tax Code, is amended
18-24 by adding Section 41.414 to read as follows:
18-25 Sec. 41.414. PROTEST OF APPRAISED VALUE OF REAL PROPERTY.
18-26 In a protest of the appraised value of real property, if the
18-27 appraised value for the current year is the value calculated as
19-1 provided by Section 23.21(a), the property owner is not entitled to
19-2 protest the appraised value for the preceding year that is used in
19-3 the calculation of the appraised value for the current year.
19-4 SECTION 21. Section 42.02, Tax Code, is amended to read as
19-5 follows:
19-6 Sec. 42.02 RIGHT OF APPEAL BY CHIEF APPRAISER. The chief
19-7 appraiser is entitled to appeal an order of the appraisal review
19-8 board determining a taxpayer protest as provided by Subchapter C,
19-9 Chapter 41 [of this code if he has written approval of the local
19-10 appraisal district board of directors to appeal].
19-11 SECTION 22. Section 403.302(d), Government Code, is amended
19-12 to read as follows:
19-13 (d) For the purposes of this section, "taxable value" means
19-14 market value less:
19-15 (1) the total dollar amount of any exemptions of part
19-16 but not all of the value of taxable property required by the
19-17 constitution or a statute that a district lawfully granted in the
19-18 year that is the subject of the study;
19-19 (2) the total dollar amount of any exemptions granted
19-20 before May 31, 1993, within a reinvestment zone under agreements
19-21 authorized by Chapter 312, Tax Code;
19-22 (3) the total dollar amount of any captured appraised
19-23 value of property that is located in a reinvestment zone and that
19-24 is eligible for tax increment financing under Chapter 311, Tax
19-25 Code;
19-26 (4) the total dollar amount of any exemptions granted
19-27 under Section 11.251, Tax Code;
20-1 (5) the difference between the market value and the
20-2 productivity value of land that qualifies for appraisal on the
20-3 basis of its productive capacity, except that the productivity
20-4 value may not exceed the fair market value of the land;
20-5 (6) the portion of the appraised value of residence
20-6 homesteads of the elderly on which school district taxes are not
20-7 imposed in the year that is the subject of the study, calculated as
20-8 if the residence homesteads were appraised at the full value
20-9 required by law;
20-10 (7) a portion of the market value of property not
20-11 otherwise fully taxable by the district at market value because of
20-12 action required by statute or the constitution of this state that,
20-13 if the tax rate adopted by the district is applied to it, produces
20-14 an amount equal to the difference between the tax that the district
20-15 would have imposed on the property if the property were fully
20-16 taxable at market value and the tax that the district is actually
20-17 authorized to impose on the property; [and]
20-18 (8) the market value of all tangible personal
20-19 property, other than manufactured homes, owned by a family or
20-20 individual and not held or used for the production of income; and
20-21 (9) the amount by which the market value of real
20-22 property to which Section 23.21, Tax Code, applies exceeds the
20-23 appraised value of that property as calculated under that section.
20-24 SECTION 23. The following provisions of the Tax Code are
20-25 repealed:
20-26 (1) Section 6.03;
20-27 (2) Section 6.031;
21-1 (3) Section 6.033;
21-2 (4) Section 6.034;
21-3 (5) Section 6.035;
21-4 (6) Section 6.036;
21-5 (7) Section 6.037;
21-6 (8) Section 6.04;
21-7 (9) Sections 6.05(c), (d), (f), (g), and (h);
21-8 (10) Section 6.052;
21-9 (11) Section 6.10; and
21-10 (12) Section 31.03(c).
21-11 SECTION 24. (a) Except as otherwise provided by this
21-12 section, this Act takes effect January 1, 1998.
21-13 (b) Sections 1, 17, 20, and 22 of this Act take effect only
21-14 if the constitutional amendment proposed by the 75th Legislature,
21-15 Regular Session, 1997, to authorize the legislature to limit the
21-16 increases in appraised value of real property for ad valorem tax
21-17 purposes is approved by the voters. If that amendment is not
21-18 approved by the voters, those sections of this Act have no effect.
21-19 (c) On the effective date of this Act, the tax
21-20 assessor-collector of each county begins to govern the appraisal
21-21 district established for that county, and the board of directors of
21-22 each appraisal district ceases to exist. On that date, the
21-23 appraisal district as governed by the county assessor-collector
21-24 succeeds to all the rights, duties, privileges, property,
21-25 obligations, and liabilities of the appraisal district as governed
21-26 by the board of directors.
21-27 (d) A measure taken or adopted by an appraisal district
22-1 board of directors before the effective date of this Act that is in
22-2 effect on the effective date continues in effect after the
22-3 effective date of this Act until superseded by a measure taken or
22-4 adopted by the county assessor-collector governing the district.
22-5 (e) The amendment by this Act of Section 6.41, Tax Code,
22-6 does not affect the term of a member of an appraisal review board
22-7 appointed before the effective date of this Act.
22-8 SECTION 25. The importance of this legislation and the
22-9 crowded condition of the calendars in both houses create an
22-10 emergency and an imperative public necessity that the
22-11 constitutional rule requiring bills to be read on three several
22-12 days in each house be suspended, and this rule is hereby suspended,
22-13 and that this Act take effect and be in force according to its
22-14 terms, and it is so enacted.