1-1 By: Armbrister S.B. No. 1457
1-2 (In the Senate - Filed March 13, 1997; March 19, 1997, read
1-3 first time and referred to Committee on Finance; April 21, 1997,
1-4 reported favorably, as amended, by the following vote: Yeas 11,
1-5 Nays 0; April 21, 1997, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Sibley
1-7 Amend S.B. No. 1457 as follows:
1-8 (1) In SECTION 1 of the bill, Section 403.302(d)(3),
1-9 Government Code (page , line ) between "zone" and "," add "on
1-10 August 31, 1997"
1-11 (2) In SECTION 1 of the bill, Section 403.302(d)(3),
1-12 Government Code (page , line ) between "Code" and ";" add ",
1-13 under a project plan or reinvestment zone financing plan approved
1-14 under Section 311.011(d), Tax Code, before September 1, 1997"
1-15 A BILL TO BE ENTITLED
1-16 AN ACT
1-17 relating to the appraisal of property for ad valorem tax purposes
1-18 and the annual study of school district property values.
1-19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-20 SECTION 1. Subsections (a) through (d), Section 403.302,
1-21 Government Code, are amended to read as follows:
1-22 (a) The comptroller shall conduct an annual study using
1-23 comparable sales and generally accepted auditing and sampling
1-24 techniques to determine the total taxable value of all [taxable]
1-25 property in each school district. The study shall determine the
1-26 taxable value of all property and of each category of property in
1-27 the district and the productivity value of all land that qualifies
1-28 for appraisal on the basis of its productive capacity and for which
1-29 the owner has applied for and received a productivity appraisal.
1-30 The comptroller shall make appropriate adjustments in the study to
1-31 account for actions taken under Chapter 41, Education Code.
1-32 (b) In conducting the study, the comptroller shall [review
1-33 the appraisal standards, procedures, and methodology used by each
1-34 appraisal district to] determine the taxable value of property in
1-35 each school district[. The review must test the validity of the
1-36 taxable values assigned to each category of property by the
1-37 appraisal district]:
1-38 (1) using, if appropriate, samples selected through
1-39 generally accepted sampling techniques; and
1-40 (2) according to generally accepted standard
1-41 valuation, statistical compilation, and analysis techniques.
1-42 (c) If the comptroller determines [finds] in the annual
1-43 study that the market value of property in a school district as
1-44 determined by the appraisal district that appraises property for
1-45 the school district, less the total of the amounts and values
1-46 listed in Subsection (d) as determined by the appraisal district,
1-47 is [generally accepted appraisal standards and practices were used
1-48 by the appraisal district in valuing a particular category of
1-49 property, and that the taxable values assigned to each category of
1-50 property by the appraisal district are] valid, the market
1-51 [appraisal roll] value of [that category of] property in the school
1-52 district as determined by the appraisal district that appraises
1-53 property for the school district, less the total of the amounts and
1-54 values listed in Subsection (d) as determined by the appraisal
1-55 district, is presumed to represent taxable value. In the absence
1-56 of such a presumption, [the comptroller shall estimate the] taxable
1-57 value is the value determined by the comptroller under Subsection
1-58 (a) [of that category of property using generally accepted standard
1-59 valuation, statistical compilation, and analysis techniques].
1-60 (d) For the purposes of this section, "taxable value" means
1-61 the market value of all taxable property less:
1-62 (1) the total dollar amount of any residence homestead
1-63 exemptions [of part but not all of the value of taxable property
1-64 required by the constitution or a statute that a district] lawfully
2-1 granted under Section 11.13(b) or (c), Tax Code, in the year that
2-2 is the subject of the study for each school district;
2-3 (2) the total dollar amount of any exemptions granted
2-4 before May 31, 1993, within a reinvestment zone under agreements
2-5 authorized by Chapter 312, Tax Code;
2-6 (3) the total dollar amount of any captured appraised
2-7 value of property that is located in a reinvestment zone, generates
2-8 a tax increment paid into a tax increment fund, and [that] is
2-9 eligible for tax increment financing under Chapter 311, Tax Code;
2-10 (4) the total dollar amount of any exemptions granted
2-11 under Section 11.251, Tax Code;
2-12 (5) the difference between the comptroller's estimate
2-13 of the market value and the productivity value of land that
2-14 qualifies for appraisal on the basis of its productive capacity,
2-15 except that the productivity value estimated by the comptroller may
2-16 not exceed the fair market value of the land;
2-17 (6) the portion of the appraised value of residence
2-18 homesteads of the elderly on which school district taxes are not
2-19 imposed in the year that is the subject of the study, calculated as
2-20 if the residence homesteads were appraised at the full value
2-21 required by law;
2-22 (7) a portion of the market value of property not
2-23 otherwise fully taxable by the district at market value because of
2-24 action required by statute or the constitution of this state that,
2-25 if the tax rate adopted by the district is applied to it, produces
2-26 an amount equal to the difference between the tax that the district
2-27 would have imposed on the property if the property were fully
2-28 taxable at market value and the tax that the district is actually
2-29 authorized to impose on the property, if this subsection does not
2-30 otherwise require that portion to be deducted; and
2-31 (8) the market value of all tangible personal
2-32 property, other than manufactured homes, owned by a family or
2-33 individual and not held or used for the production of income.
2-34 SECTION 2. Subsection (a), Section 403.303, Government Code,
2-35 is amended to read as follows:
2-36 (a) A school district or a property owner whose property is
2-37 included in the study under Section 403.302 and whose tax liability
2-38 on the property is $100,000 or more may protest the comptroller's
2-39 findings under Section 403.302(f) or (g) by filing a petition with
2-40 the comptroller. The petition must be filed not later than the
2-41 40th [30th] day after the date on which the comptroller's findings
2-42 are certified to the commissioner of education and must specify the
2-43 grounds for objection and the value claimed to be correct by the
2-44 school district or property owner.
2-45 SECTION 3. Section 5.102, Tax Code, is amended to read as
2-46 follows:
2-47 Sec. 5.102. REVIEW OF [NONCOMPLIANCE BY] APPRAISAL STANDARDS
2-48 [DISTRICT]. (a) The comptroller shall review the appraisal
2-49 standards, procedures, and methodology used by each appraisal
2-50 district to determine compliance with generally accepted appraisal
2-51 standards and practices.
2-52 (b) If the review [study required by Section 403.302,
2-53 Government Code,] results in a finding that an appraisal district
2-54 is not in compliance with generally accepted appraisal standards
2-55 and practices, the comptroller shall deliver a report that details
2-56 the comptroller's findings and recommendations for improvement to
2-57 the appraisal district's chief appraiser and board of directors.
2-58 (c) [(b)] If noncompliance with generally accepted appraisal
2-59 standards and practices is found in two consecutive reviews [annual
2-60 studies] and if an affected appraisal district's chief appraiser
2-61 and board of directors fail to take effective remedial action as
2-62 determined by the comptroller, the comptroller may appoint a
2-63 special master who may exercise supervision and control over the
2-64 operations of the district until full compliance with generally
2-65 accepted appraisal standards and practices is achieved. The
2-66 appraisal district shall bear the costs related to the master's
2-67 supervision and control.
2-68 SECTION 4. Section 5.16, Tax Code, is amended to read as
2-69 follows:
3-1 Sec. 5.16. ADMINISTRATIVE PROVISIONS. (a) The comptroller
3-2 may inspect the records or other materials of an appraisal office
3-3 or taxing unit, including the relevant records and materials in the
3-4 possession or control of a consultant, advisor, or expert hired by
3-5 the appraisal office or taxing unit, for the purpose of:
3-6 (1) establishing, reviewing, or evaluating the value
3-7 of or an appraisal of any property; or
3-8 (2) conducting a study, review, or audit required by
3-9 Section 5.10 or 5.102 or by Section 403.302, Government Code.
3-10 (b) On request of the comptroller, the chief appraiser or
3-11 administrative head of the taxing unit shall produce the materials
3-12 in the form and manner prescribed by the comptroller [as soon as
3-13 practicable].
3-14 SECTION 5. Subsection (b), Section 26.01, Tax Code, is
3-15 amended to read as follows:
3-16 (b) When a chief appraiser submits an appraisal roll for
3-17 county taxes to a county assessor-collector, the chief appraiser
3-18 [he] also shall certify the appraisal district appraisal roll to
3-19 the comptroller. However, the comptroller by rule may provide for
3-20 submission of only a summary of the appraisal roll. The [In that
3-21 event, the] chief appraiser shall certify the district appraisal
3-22 roll or the summary of that roll in the form and manner prescribed
3-23 by the comptroller's rule.
3-24 SECTION 6. The importance of this legislation and the
3-25 crowded condition of the calendars in both houses create an
3-26 emergency and an imperative public necessity that the
3-27 constitutional rule requiring bills to be read on three several
3-28 days in each house be suspended, and this rule is hereby suspended,
3-29 and that this Act take effect and be in force from and after its
3-30 passage, and it is so enacted.
3-31 * * * * *