By Kitchen                                            H.B. No. 3457
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to optional methodology for determining residential
 1-3     property appraisal values.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 23.0101, Tax Code, is amended to read as
 1-6     follows:
 1-7           Sec. 23.0101.  Consideration of Alternate Appraisal Methods.
 1-8     In determining the market value of property, the chief appraiser
 1-9     shall consider the cost, income, and market data comparison methods
1-10     of appraisal and use the most appropriate method.  The chief
1-11     appraiser may use an alternative appraisal method that limits the
1-12     increase in value for residential property appraisals to an
1-13     inflation rate based on the consumer price index, adjusted for the
1-14     local metropolitan statistical area, until such time as the
1-15     property is sold or undergoes improvements to the homestead in
1-16     excess of $25,000.
1-17           SECTION 2.  This Act takes effect immediately if it receives
1-18     a vote of two-thirds of all members elected to each house, as
1-19     provided by Section 29, Article III, Texas Constitution.  If this
1-20     Act does not receive a vote necessary for immediate effect, this
1-21     Act takes effect September 1, 2001.