By Talton H.B. No. 1564
77R5761 GJH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to remedies for the unequal appraisal of property by an
1-3 appraisal district.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 41.43, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 41.43. PROTEST OF DETERMINATION OF VALUE OR INEQUALITY
1-8 OF APPRAISAL. (a) Except as provided by Subsection (b), in [In] a
1-9 protest authorized by Section 41.41(a)(1) or (2) [41.41(1) or (2)],
1-10 the appraisal district has the burden of establishing the value of
1-11 the property by a preponderance of the evidence presented at the
1-12 hearing. If the appraisal district fails to meet that standard,
1-13 the protest shall be determined in favor of the property owner.
1-14 (b) A protest on the ground of unequal appraisal of property
1-15 shall be determined in favor of the appraisal district [protesting
1-16 party] unless the protesting party [appraisal district] establishes
1-17 that:
1-18 (1) the appraisal ratio of the property is [not]
1-19 greater than the median level of appraisal of[:]
1-20 [(1)] a reasonable and representative sample of other
1-21 properties in the appraisal district;
1-22 (2) the appraisal ratio of the property is greater
1-23 than the median level of appraisal of a sample of properties in the
1-24 appraisal district consisting of a reasonable number of other
2-1 properties similarly situated to, or of the same general kind or
2-2 character as, the property subject to the protest; or
2-3 (3) the appraised value of the property is greater
2-4 than the median appraised value of a reasonable number of
2-5 comparable properties appropriately adjusted.
2-6 (c) For purposes of this section, evidence includes the
2-7 data, schedules, formulas, or other information used to establish
2-8 the matter at issue.
2-9 (d) For purposes of this section, the value of the property
2-10 subject to the protest and the value of a comparable property or
2-11 sample property that is used for comparison must be the market
2-12 value determined by the appraisal district when the property is a
2-13 residence homestead subject to the limitation on appraised value
2-14 imposed by Section 23.23.
2-15 SECTION 2. Sections 42.26(a), (b), and (d), Tax Code, are
2-16 amended to read as follows:
2-17 (a) The district court shall grant relief on the ground that
2-18 a property is appraised unequally if:
2-19 (1) the appraisal ratio of the property exceeds by at
2-20 least 10 percent the median level of appraisal of[:]
2-21 [(1)] a reasonable and representative sample of other
2-22 properties in the appraisal district; [or]
2-23 (2) the appraisal ratio of the property exceeds by at
2-24 least 10 percent the median level of appraisal of a sample of
2-25 properties in the appraisal district consisting of a reasonable
2-26 number of other properties similarly situated to, or of the same
2-27 general kind or character as, the property subject to the appeal;
3-1 or
3-2 (3) the appraised value of the property exceeds the
3-3 median appraised value of a reasonable number of comparable
3-4 properties appropriately adjusted.
3-5 (b) If a property owner is entitled to relief under
3-6 Subsection (a)(1), the court shall order the property's appraised
3-7 value changed to the value as calculated on the basis of the median
3-8 level of appraisal according to Subsection (a)(1). If a property
3-9 owner is entitled to relief under Subsection (a)(2), the court
3-10 shall order the property's appraised value changed to the value
3-11 calculated on the basis of the median level of appraisal according
3-12 to Subsection (a)(2). If a property owner is entitled to relief
3-13 under Subsection (a)(3), the court shall order the property's
3-14 appraised value changed to the value calculated on the basis of the
3-15 median appraised value according to Subsection (a)(3). If a
3-16 property owner is entitled to relief under more than one
3-17 subdivision of Subsection (a) [both Subsection (a)(1) and
3-18 Subsection (a)(2)], the court shall order the property's appraised
3-19 value changed to the value [calculated on the basis of the median
3-20 level of appraisal] that results in the lowest [lower] appraised
3-21 value. The court shall determine each applicable median level of
3-22 appraisal or median appraised value according to law, and is not
3-23 required to adopt the median level of appraisal or median appraised
3-24 value proposed by a party to the appeal. The court may not limit
3-25 or deny relief to the property owner entitled to relief under a
3-26 subdivision of Subsection (a) because the appraised value
3-27 determined according to another [the other] subdivision of
4-1 Subsection (a) results in a higher appraised value.
4-2 (d) For purposes of this section, the value of the property
4-3 subject to the suit and the value of a comparable property or
4-4 sample property that is used for comparison must be the market
4-5 value determined by the appraisal district when the property is a
4-6 residence homestead subject to the limitation on appraised value
4-7 imposed by Section 23.23. [The district court shall grant relief
4-8 on the ground that a property is appraised unequally if the
4-9 appraised value of the property exceeds the median appraised value
4-10 of a reasonable number of comparable properties appropriately
4-11 adjusted.]
4-12 SECTION 3. (a) This Act takes effect September 1, 2001.
4-13 (b) The change in law made by this Act applies only to
4-14 review of an appraisal of property that was initiated by the filing
4-15 of a notice of protest with an appraisal review board on or after
4-16 the effective date of this Act. Review of an appraisal of property
4-17 that was initiated by the filing of a notice of protest with an
4-18 appraisal review board before the effective date of this Act is
4-19 governed by the law in effect on the date the notice of protest was
4-20 filed, and the former law is continued in effect for that purpose.