SRC-JXG C.S.S.B. 1401 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1401
By: Nixon
Intergovernmental Relations
4/15/1999
Committee Report (Substituted)


DIGEST 

Currently, Texas law prohibits taxpayers on the administrative or appraisal
review board level from making an effective inequality of appraisal
argument, under Chapter 41, Tax Code. Under the 75th Legislature, statutory
language was added to Chapter 42, Tax Code, to allow taxpayers to assert an
inequality of appraisal argument at the district court level. C.S.S.B. 1401
would allow taxpayers to make the same inequality of appraisal argument
before an appraisal review board that they can make before a district
court.  
 
PURPOSE

As proposed, C.S.S.B. 1401 allows taxpayers to make the same inequality of
appraisal argument before an appraisal review board and district court. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 41.43, Tax Code, to provide that the appraisal
district has the burden of establishing the value of the property by a
preponderance of the evidence presented at the hearing, except as provided
by Subsection (b), in a protest authorized by Section 41.41(1) or (2).
Requires a protest on the ground of unequal appraisal of property to be
determined in favor of the appraisal district unless the protesting party,
rather than the appraisal district, establishes certain provisions.
Requires the value of the property subject to the protest and the value of
a comparable property or sample property that is used for comparison to be
the market value determined by the appraisal district when the property is
a residence homestead subject to the limitation on appraised value imposed
by Section 23.23, for purposes of this section. Deletes text regarding the
appraisal ratio. Makes conforming and nonsubstantive changes. 

SECTION 2. Amends Sections 42.26(a), (b), and (d), Tax Code, to require the
district court (court) to grant relief on the ground that a property is
appraised unequally, if the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of a sample of properties in
the appraisal district, or the appraised value of the property exceeds the
median appraised value of a reasonable number of comparable properties
appropriately adjusted. Requires the court to order the property's
appraised value changed to the value calculated on the basis of the median
level of appraisal according to Subsection (a)(3), if a property owner is
entitled to relief under Subsection (a)(3). Requires the court to order the
property's appraised value changed to the value that results in the lowest
appraised value, if a property owner is entitled to relief under more than
one of these subsections. Requires the value of property subject to the
suit and the value of a comparable property or sample property that is used
for comparison to be the market value determined by the appraisal district
when the property is a residence homestead subject to the limitation on
appraised value imposed by Section 23.23. Deletes text regarding
Subsections (a)(1), (a)(2), and the value calculated on the basis of the
median level of appraisal. Deletes text requiring the district to grant
relief on the ground that property is appraised unequally if the value of
the property exceeds the median appraised value. Makes conforming and
nonsubstantive changes. 

 SECTION 3. Effective date: September 1, 1999.
           Makes application of this Act prospective.

SECTION 4. Emergency clause.



SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 41.43, Tax Code, to provide that the appraisal district has
the burden of establishing the value of the property by a preponderance of
the evidence presented at the hearing, except as provided by Subsection
(b), in a protest authorized by Section 41.41(1) or (2). Requires a protest
on the ground of unequal appraisal of property to be determined in favor of
the appraisal district unless the protesting party establishes certain
provisions. Requires the value of the property subject to the protest and
the value of a comparable property or sample property that is used for
comparison to be the market value determined by the appraisal district when
the property is a residence homestead subject to the limitation on
appraised value imposed by Section 23.23, for purposes of this section.  

SECTION 2.

Amends Sections 42.26(a), (b), and (d), Tax Code, to require the district
court to grant relief on the ground that a property is appraised unequally,
if the appraisal ratio of the property exceeds by at least 10 percent the
median level of appraisal of a sample of properties in the appraisal
district, or the appraised value of the property exceeds the median
appraised value of a reasonable number of comparable properties
appropriately adjusted. Requires the court to order the property's
appraised value changed to the value calculated on the basis of the median
level of appraisal according to Subsection (a)(3), if a property owner is
entitled to relief under Subsection (a)(3). Requires the court to order the
property's appraised value changed to the value that results in the lowest
appraised value, if a property owner is entitled to relief under more than
one of these subsections. Requires the value of property subject to the
suit and the value of a comparable property or sample property that is used
for comparison to be the market value determined by the appraisal district
when the property is a residence homestead subject to the limitation on
appraised value imposed by Section 23.23.  

SECTION 3.

 Adds a new effective date of September 1, 1999, and the prospective clause.

SECTION 4.
 
 Adds the emergency clause.