1-1 By: Nixon S.B. No. 1401
1-2 (In the Senate - Filed March 11, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 16, 1999, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 4, Nays 0;
1-6 April 16, 1999, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1401 By: Nixon
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to remedies for unequal appraisals of property by an
1-11 appraisal district.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 41.43, Tax Code, is amended to read as
1-14 follows:
1-15 Sec. 41.43. PROTEST OF DETERMINATION OF VALUE OR INEQUALITY
1-16 OF APPRAISAL. (a) Except as provided by Subsection (b), in [In] a
1-17 protest authorized by Section 41.41(1) or (2), the appraisal
1-18 district has the burden of establishing the value of the property
1-19 by a preponderance of the evidence presented at the hearing. If
1-20 the appraisal district fails to meet that standard, the protest
1-21 shall be determined in favor of the property owner.
1-22 (b) A protest on the ground of unequal appraisal of property
1-23 shall be determined in favor of the appraisal district [protesting
1-24 party] unless the protesting party [appraisal district] establishes
1-25 that:
1-26 (1) the appraisal ratio of the property is [not]
1-27 greater than the median level of appraisal of[:]
1-28 [(1)] a reasonable and representative sample of other
1-29 properties in the appraisal district;
1-30 (2) the appraisal ratio of the property is greater
1-31 than the median level of appraisal of a sample of properties in the
1-32 appraisal district consisting of a reasonable number of other
1-33 properties similarly situated to, or of the same general kind or
1-34 character as, the property subject to the protest; or
1-35 (3) the appraised value of the property is greater
1-36 than the median appraised value of a reasonable number of
1-37 comparable properties appropriately adjusted.
1-38 (c) For purposes of this section, evidence includes the
1-39 data, schedules, formulas, or other information used to establish
1-40 the matter at issue. For purposes of this section, the value of
1-41 the property subject to the protest and the value of a comparable
1-42 property or sample property that is used for comparison must be the
1-43 market value determined by the appraisal district when the property
1-44 is a residence homestead subject to the limitation on appraised
1-45 value imposed by Section 23.23.
1-46 SECTION 2. Subsections (a), (b), and (d), Section 42.26, Tax
1-47 Code, are amended to read as follows:
1-48 (a) The district court shall grant relief on the ground that
1-49 a property is appraised unequally if:
1-50 (1) the appraisal ratio of the property exceeds by at
1-51 least 10 percent the median level of appraisal of[:]
1-52 [(1)] a reasonable and representative sample of other
1-53 properties in the appraisal district; [or]
1-54 (2) the appraisal ratio of the property exceeds by at
1-55 least 10 percent the median level of appraisal of a sample of
1-56 properties in the appraisal district consisting of a reasonable
1-57 number of other properties similarly situated to, or of the same
1-58 general kind or character as, the property subject to the appeal;
1-59 or
1-60 (3) the appraised value of the property exceeds the
1-61 median appraised value of a reasonable number of comparable
1-62 properties appropriately adjusted.
1-63 (b) If a property owner is entitled to relief under
1-64 Subsection (a)(1), the court shall order the property's appraised
2-1 value changed to the value as calculated on the basis of the median
2-2 level of appraisal according to Subsection (a)(1). If a property
2-3 owner is entitled to relief under Subsection (a)(2), the court
2-4 shall order the property's appraised value changed to the value
2-5 calculated on the basis of the median level of appraisal according
2-6 to Subsection (a)(2). If a property owner is entitled to relief
2-7 under Subsection (a)(3), the court shall order the property's
2-8 appraised value changed to the value calculated on the basis of the
2-9 median level of appraisal according to Subsection (a)(3). If a
2-10 property owner is entitled to relief under more than one
2-11 subdivision of Subsection (a) [both Subsection (a)(1) and
2-12 Subsection (a)(2)], the court shall order the property's appraised
2-13 value changed to the value [calculated on the basis of the median
2-14 level of appraisal] that results in the lowest [lower] appraised
2-15 value. The court shall determine each applicable median level of
2-16 appraisal according to law, and is not required to adopt the median
2-17 level of appraisal proposed by a party to the appeal. The court
2-18 may not limit or deny relief to the property owner entitled to
2-19 relief under a subdivision of Subsection (a) because the appraised
2-20 value determined according to another [the other] subdivision of
2-21 Subsection (a) results in a higher appraised value.
2-22 (d) For purposes of this section, the value of the property
2-23 subject to the suit and the value of a comparable property or
2-24 sample property that is used for comparison must be the market
2-25 value determined by the appraisal district when the property is a
2-26 residence homestead subject to the limitation on appraised value
2-27 imposed by Section 23.23. [The district court shall grant relief
2-28 on the ground that a property is appraised unequally if the
2-29 appraised value of the property exceeds the median appraised value
2-30 of a reasonable number of comparable properties appropriately
2-31 adjusted.]
2-32 SECTION 3. (a) This Act takes effect September 1, 1999.
2-33 (b) The change in law made by this Act applies only to
2-34 review of an appraisal of property that was initiated by the filing
2-35 of a notice of protest with an appraisal review board on or after
2-36 the effective date of this Act. Review of an appraisal of property
2-37 that was initiated by the filing of a notice of protest with an
2-38 appraisal review board before the effective date of this Act is
2-39 governed by the law in effect on the date the notice of protest was
2-40 filed, and the former law is continued in effect for that purpose.
2-41 SECTION 4. The importance of this legislation and the
2-42 crowded condition of the calendars in both houses create an
2-43 emergency and an imperative public necessity that the
2-44 constitutional rule requiring bills to be read on three several
2-45 days in each house be suspended, and this rule is hereby suspended.
2-46 * * * * *