By: Nixon, Zaffirini S.B. No. 1401
A BILL TO BE ENTITLED
AN ACT
1-1 relating to remedies for unequal appraisals of property by an
1-2 appraisal district.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 41.43, Tax Code, is amended to read as
1-5 follows:
1-6 Sec. 41.43. PROTEST OF DETERMINATION OF VALUE OR INEQUALITY
1-7 OF APPRAISAL. (a) Except as provided by Subsection (b), in [In] a
1-8 protest authorized by Section 41.41(1) or (2), the appraisal
1-9 district has the burden of establishing the value of the property
1-10 by a preponderance of the evidence presented at the hearing. If
1-11 the appraisal district fails to meet that standard, the protest
1-12 shall be determined in favor of the property owner.
1-13 (b) A protest on the ground of unequal appraisal of property
1-14 shall be determined in favor of the appraisal district [protesting
1-15 party] unless the protesting party [appraisal district] establishes
1-16 that:
1-17 (1) the appraisal ratio of the property is [not]
1-18 greater than the median level of appraisal of[:]
1-19 [(1)] a reasonable and representative sample of other
1-20 properties in the appraisal district;
1-21 (2) the appraisal ratio of the property is greater
1-22 than the median level of appraisal of a sample of properties in the
1-23 appraisal district consisting of a reasonable number of other
1-24 properties similarly situated to, or of the same general kind or
2-1 character as, the property subject to the protest; or
2-2 (3) the appraised value of the property is greater
2-3 than the median appraised value of a reasonable number of
2-4 comparable properties appropriately adjusted.
2-5 (c) For purposes of this section, evidence includes the
2-6 data, schedules, formulas, or other information used to establish
2-7 the matter at issue. For purposes of this section, the value of
2-8 the property subject to the protest and the value of a comparable
2-9 property or sample property that is used for comparison must be the
2-10 market value determined by the appraisal district when the property
2-11 is a residence homestead subject to the limitation on appraised
2-12 value imposed by Section 23.23.
2-13 SECTION 2. Subsections (a), (b), and (d), Section 42.26, Tax
2-14 Code, are amended to read as follows:
2-15 (a) The district court shall grant relief on the ground that
2-16 a property is appraised unequally if:
2-17 (1) the appraisal ratio of the property exceeds by at
2-18 least 10 percent the median level of appraisal of[:]
2-19 [(1)] a reasonable and representative sample of other
2-20 properties in the appraisal district; [or]
2-21 (2) the appraisal ratio of the property exceeds by at
2-22 least 10 percent the median level of appraisal of a sample of
2-23 properties in the appraisal district consisting of a reasonable
2-24 number of other properties similarly situated to, or of the same
2-25 general kind or character as, the property subject to the appeal;
2-26 or
3-1 (3) the appraised value of the property exceeds the
3-2 median appraised value of a reasonable number of comparable
3-3 properties appropriately adjusted.
3-4 (b) If a property owner is entitled to relief under
3-5 Subsection (a)(1), the court shall order the property's appraised
3-6 value changed to the value as calculated on the basis of the median
3-7 level of appraisal according to Subsection (a)(1). If a property
3-8 owner is entitled to relief under Subsection (a)(2), the court
3-9 shall order the property's appraised value changed to the value
3-10 calculated on the basis of the median level of appraisal according
3-11 to Subsection (a)(2). If a property owner is entitled to relief
3-12 under Subsection (a)(3), the court shall order the property's
3-13 appraised value changed to the value calculated on the basis of the
3-14 median level of appraisal according to Subsection (a)(3). If a
3-15 property owner is entitled to relief under more than one
3-16 subdivision of Subsection (a) [both Subsection (a)(1) and
3-17 Subsection (a)(2)], the court shall order the property's appraised
3-18 value changed to the value [calculated on the basis of the median
3-19 level of appraisal] that results in the lowest [lower] appraised
3-20 value. The court shall determine each applicable median level of
3-21 appraisal according to law, and is not required to adopt the median
3-22 level of appraisal proposed by a party to the appeal. The court
3-23 may not limit or deny relief to the property owner entitled to
3-24 relief under a subdivision of Subsection (a) because the appraised
3-25 value determined according to another [the other] subdivision of
3-26 Subsection (a) results in a higher appraised value.
4-1 (d) For purposes of this section, the value of the property
4-2 subject to the suit and the value of a comparable property or
4-3 sample property that is used for comparison must be the market
4-4 value determined by the appraisal district when the property is a
4-5 residence homestead subject to the limitation on appraised value
4-6 imposed by Section 23.23. [The district court shall grant relief
4-7 on the ground that a property is appraised unequally if the
4-8 appraised value of the property exceeds the median appraised value
4-9 of a reasonable number of comparable properties appropriately
4-10 adjusted.]
4-11 SECTION 3. (a) This Act takes effect September 1, 1999.
4-12 (b) The change in law made by this Act applies only to
4-13 review of an appraisal of property that was initiated by the filing
4-14 of a notice of protest with an appraisal review board on or after
4-15 the effective date of this Act. Review of an appraisal of property
4-16 that was initiated by the filing of a notice of protest with an
4-17 appraisal review board before the effective date of this Act is
4-18 governed by the law in effect on the date the notice of protest was
4-19 filed, and the former law is continued in effect for that purpose.
4-20 SECTION 4. The importance of this legislation and the
4-21 crowded condition of the calendars in both houses create an
4-22 emergency and an imperative public necessity that the
4-23 constitutional rule requiring bills to be read on three several
4-24 days in each house be suspended, and this rule is hereby suspended.