HBA-KDB S.B. 1816 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1816
By: Jackson
Ways & Means
5/16/2001
Engrossed



BACKGROUND AND PURPOSE 

Under current law, the chief appraiser of each county is required to
prepare and certify the tax roll to the assessor of each taxing unit (unit)
annually.  The chief appraiser is also required to provide other items of
information to each unit necessary for the unit to estimate the total
taxable value of property in the unit for the purpose of setting an
appropriate tax rate.  One such item is an estimate of the value of
properties under protest that have not been certified.  The sum of the
value of the noncertified property under protest and the certified tax roll
amount, plus other adjustments, accounts for the value of all taxable
property in the taxing unit and this total taxable value is necessary to
calculate the unit's effective and rollback tax rate. 

In Harris County, because of the delay in certifying property values caused
by the large number of land parcels in the county and the frequency of the
sale of these parcels, the chief appraiser has established a category of
property that is neither certified nor under protest.  Such property is
omitted from the total taxable value of property within the unit for the
purpose of calculating the unit's effective and rollback tax rate, which
results in the unit collecting more than the budgeted property tax revenue
while  avoiding the necessity for a public hearing on their proposed tax
rate.  Senate Bill 1816 requires the chief appraiser to prepare and certify
to the assessor for each unit a  list of those properties of which the
chief appraiser has knowledge that are reasonably likely to be taxable by
that unit but that are not included on the appraisal roll or listing
certified by the assessor. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 1816 amends the Tax Code to require the chief appraiser to
prepare and certify to the assessor for each taxing unit (unit) a list of
those properties of which the chief appraiser has knowledge that are
reasonably likely to be taxable by that unit but that are not included on
the appraisal roll or listing certified by the assessor.  The bill requires
the chief appraiser to include on the list for each property the market
value, appraised value, and taxable value as determined by the appraisal
district for the preceding year and a reasonable estimate of the market
value, appraised value, and taxable value for the current year.  Until the
property is added to the appraisal roll, the bill requires the assessor for
the unit to include each property on the list in prescribed calculations
and requires the assessor, for that purpose, to use the lower market value,
appraised value, or taxable value, as appropriate, included on the list for
the property. 

EFFECTIVE DATE

January 1, 2002.