By Armbrister S.B. No. 1457
75R8584 JD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appraisal of property for ad valorem tax purposes
1-3 and the annual study of school district property values.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 403.302(a) through (d), Government Code,
1-6 are amended to 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 taxable value of all [taxable]
1-10 property in each school district. The study shall determine the
1-11 taxable value of all property and of each category of property in
1-12 the district and the productivity value of all land that qualifies
1-13 for appraisal on the basis of its productive capacity and for which
1-14 the owner has applied for and received a productivity appraisal.
1-15 The comptroller shall make appropriate adjustments in the study to
1-16 account for actions taken under Chapter 41, Education Code.
1-17 (b) In conducting the study, the comptroller shall [review
1-18 the appraisal standards, procedures, and methodology used by each
1-19 appraisal district to] determine the taxable value of property in
1-20 each school district[. The review must test the validity of the
1-21 taxable values assigned to each category of property by the
1-22 appraisal district]:
1-23 (1) using, if appropriate, samples selected through
1-24 generally accepted sampling techniques; and
2-1 (2) according to generally accepted standard
2-2 valuation, statistical compilation, and analysis techniques.
2-3 (c) If the comptroller determines [finds] in the annual
2-4 study that the market value of property in a school district as
2-5 determined by the appraisal district that appraises property for
2-6 the school district, less the total of the amounts and values
2-7 listed in Subsection (d) as determined by that appraisal district,
2-8 is [generally accepted appraisal standards and practices were used
2-9 by the appraisal district in valuing a particular category of
2-10 property, and that the taxable values assigned to each category of
2-11 property by the appraisal district are] valid, the market
2-12 [appraisal roll] value of [that category of] property in the school
2-13 district as determined by the appraisal district that appraises
2-14 property for the school district, less the total of the amounts and
2-15 values listed in Subsection (d) as determined by that appraisal
2-16 district, is presumed to represent taxable value. In the absence
2-17 of such a presumption, [the comptroller shall estimate the] taxable
2-18 value is the value determined by the comptroller under Subsection
2-19 (a) [of that category of property using generally accepted standard
2-20 valuation, statistical compilation, and analysis techniques].
2-21 (d) For the purposes of this section, "taxable value" means
2-22 the market value of all taxable property less:
2-23 (1) the total dollar amount of any residence homestead
2-24 exemptions [of part but not all of the value of taxable property
2-25 required by the constitution or a statute that a district] lawfully
2-26 granted under Section 11.13(b) or (c), Tax Code, in the year that
2-27 is the subject of the study for each school district;
3-1 (2) the total dollar amount of any exemptions granted
3-2 before May 31, 1993, within a reinvestment zone under agreements
3-3 authorized by Chapter 312, Tax Code;
3-4 (3) the total dollar amount of any captured appraised
3-5 value of property that is located in a reinvestment zone, generates
3-6 a tax increment paid into a tax increment fund, and [that] is
3-7 eligible for tax increment financing under Chapter 311, Tax Code;
3-8 (4) the total dollar amount of any exemptions granted
3-9 under Section 11.251, Tax Code;
3-10 (5) the difference between the comptroller's estimate
3-11 of the market value and the productivity value of land that
3-12 qualifies for appraisal on the basis of its productive capacity,
3-13 except that the productivity value estimated by the comptroller may
3-14 not exceed the fair market value of the land;
3-15 (6) the portion of the appraised value of residence
3-16 homesteads of the elderly on which school district taxes are not
3-17 imposed in the year that is the subject of the study, calculated as
3-18 if the residence homesteads were appraised at the full value
3-19 required by law;
3-20 (7) a portion of the market value of property not
3-21 otherwise fully taxable by the district at market value because of
3-22 action required by statute or the constitution of this state that,
3-23 if the tax rate adopted by the district is applied to it, produces
3-24 an amount equal to the difference between the tax that the district
3-25 would have imposed on the property if the property were fully
3-26 taxable at market value and the tax that the district is actually
3-27 authorized to impose on the property, if this subsection does not
4-1 otherwise require that portion to be deducted; and
4-2 (8) the market value of all tangible personal
4-3 property, other than manufactured homes, owned by a family or
4-4 individual and not held or used for the production of income.
4-5 SECTION 2. Section 403.303(a), Government Code, is amended
4-6 to read as follows:
4-7 (a) A school district or a property owner whose property is
4-8 included in the study under Section 403.302 and whose tax liability
4-9 on the property is $100,000 or more may protest the comptroller's
4-10 findings under Section 403.302(f) or (g) by filing a petition with
4-11 the comptroller. The petition must be filed not later than the
4-12 40th [30th] day after the date on which the comptroller's findings
4-13 are certified to the commissioner of education and must specify the
4-14 grounds for objection and the value claimed to be correct by the
4-15 school district or property owner.
4-16 SECTION 3. Section 5.102, Tax Code, is amended to read as
4-17 follows:
4-18 Sec. 5.102. REVIEW OF APPRAISAL STANDARDS [NONCOMPLIANCE BY
4-19 APPRAISAL DISTRICT]. (a) The comptroller shall review the
4-20 appraisal standards, procedures, and methodology used by each
4-21 appraisal district to determine compliance with generally accepted
4-22 appraisal standards and practices.
4-23 (b) If the review [study required by Section 403.302,
4-24 Government Code,] results in a finding that an appraisal district
4-25 is not in compliance with generally accepted appraisal standards
4-26 and practices, the comptroller shall deliver a report that details
4-27 the comptroller's findings and recommendations for improvement to
5-1 the appraisal district's chief appraiser and board of directors.
5-2 (c) [(b)] If noncompliance with generally accepted appraisal
5-3 standards and practices is found in two consecutive reviews [annual
5-4 studies] and if an affected appraisal district's chief appraiser
5-5 and board of directors fail to take effective remedial action as
5-6 determined by the comptroller, the comptroller may appoint a
5-7 special master who may exercise supervision and control over the
5-8 operations of the district until full compliance with generally
5-9 accepted appraisal standards and practices is achieved. The
5-10 appraisal district shall bear the costs related to the master's
5-11 supervision and control.
5-12 SECTION 4. Section 5.16, Tax Code, is amended to read as
5-13 follows:
5-14 Sec. 5.16. ADMINISTRATIVE PROVISIONS. (a) The comptroller
5-15 may inspect the records or other materials of an appraisal office
5-16 or taxing unit, including the relevant records and materials in the
5-17 possession or control of a consultant, advisor, or expert hired by
5-18 the appraisal office or taxing unit, for the purpose of:
5-19 (1) establishing, reviewing, or evaluating the value
5-20 of or an appraisal of any property; or
5-21 (2) conducting a study, review, or audit required by
5-22 Section 5.10 or 5.102 or by Section 403.302, Government Code.
5-23 (b) On request of the comptroller, the chief appraiser or
5-24 administrative head of the taxing unit shall produce the materials
5-25 in the form and manner prescribed by the comptroller [as soon as
5-26 practicable].
5-27 SECTION 5. Section 26.01(b), Tax Code, is amended to read as
6-1 follows:
6-2 (b) When a chief appraiser submits an appraisal roll for
6-3 county taxes to a county assessor-collector, the chief appraiser
6-4 [he] also shall certify the appraisal district appraisal roll to
6-5 the comptroller. However, the comptroller by rule may provide for
6-6 submission of only a summary of the appraisal roll. The [In that
6-7 event, the] chief appraiser shall certify the district appraisal
6-8 roll or the summary of that roll in the form and manner prescribed
6-9 by the comptroller's rule.
6-10 SECTION 6. The importance of this legislation and the
6-11 crowded condition of the calendars in both houses create an
6-12 emergency and an imperative public necessity that the
6-13 constitutional rule requiring bills to be read on three several
6-14 days in each house be suspended, and this rule is hereby suspended,
6-15 and that this Act take effect and be in force from and after its
6-16 passage, and it is so enacted.