By Heflin                                             H.B. No. 3515
         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 protest of inequality of appraisal under Subchapter C,
 1-3     Property Tax Code.
 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)  In a protest authorized by Section 41.41[(1) or
 1-9     (2)], the chief appraiser [appraisal district] has the burden of
1-10     proving [establishing] the value of the property by a preponderance
1-11     of the evidence presented at the hearing.  If the chief appraiser
1-12     [appraisal district] fails to meet that standard, the protest shall
1-13     be determined in favor of the property owner.
1-14           (b)  The appraisal review board shall grant relief on the
1-15     ground that a property is appraised unequally if the appraisal
1-16     ratio of the property exceeds [A protest on the ground of unequal
1-17     appraisal of property shall be determined in favor of the
1-18     protesting party unless the appraisal district establishes that the
1-19     appraisal ratio of the property is not greater than] the median
1-20     level of appraisal of:
1-21                 (1)  a reasonable and representative sample of other
1-22     properties in the appraisal district; or
1-23                 (2)  a sample of properties in the appraisal district
 2-1     consisting of a reasonable number of other properties similarly
 2-2     situated to, or of the same general kind or character as, the
 2-3     property subject to the protest[; or]
 2-4                 [(3)  a reasonable number of comparable properties
 2-5     appropriately adjusted].
 2-6           (c)  If a property owner is entitled to relief under
 2-7     Subsection (b)(1), the appraisal review board shall order the
 2-8     property's appraised value changed to the value as calculated on
 2-9     the basis of the median level of appraisal according to Subsection
2-10     (b)(1).  If a property owner is entitled to relief under Subsection
2-11     (b)(2), the board shall order the property's appraised value
2-12     changed to the value calculated on the basis of the median level of
2-13     appraisal according to Subsection (b)(2).  If a property owner is
2-14     entitled to relief under both Subsection (b)(1) and Subsection
2-15     (b)(2), the board shall order the property's appraised value
2-16     changed to the value calculated on the basis of the median level of
2-17     appraisal that results in the lower appraised value.  The board
2-18     shall determine each applicable median level of appraisal according
2-19     to law, and is not required to adopt the median level of appraisal
2-20     proposed by a party to the protest.  The court may not limit or
2-21     deny relief to the property owner entitled to relief under a
2-22     subdivision of Subsection (b) because the appraised value
2-23     determined according to the other subdivision of Subsection (b)
2-24     results in a higher appraised value.
2-25           (d)  For purposes of establishing the median level of
2-26     appraisal under Subsection (b)(1), the median level of appraisal in
 3-1     the appraisal district as determined by the comptroller under
 3-2     Section 5.10, Tax Code, is admissible as evidence of the median
 3-3     level of appraisal of a reasonable and representative sample of
 3-4     properties in the appraisal district for the year of the
 3-5     comptroller's determination, subject to the Texas Rules of Evidence
 3-6     and the Texas rules of Civil Procedure.
 3-7           (e)  The appraisal review board shall rule in favor of the
 3-8     property owner on the ground that a property is appraised unequally
 3-9     if the appraised value of the property exceeds the median appraised
3-10     value of a reasonable number of comparable properties appropriately
3-11     adjusted.
3-12           (f)  For purposes of this section, evidence includes the
3-13     data, schedules, formulas, or other information used to establish
3-14     the matter at issue.
3-15           SECTION 2. (a)  This Act takes effect immediately if it
3-16     receives a vote of two-thirds of all members elected to each house,
3-17     as provided by Section 39, Article III, Texas Constitution.  If
3-18     this Act does not receive the vote necessary for immediate effect,
3-19     this Act takes effect September 1, 2001.
3-20           (b)  The change in law made by this Act does not affect
3-21     motions to change an appraisal roll or notices to protest taxes
3-22     filed before the effective date of this Act, and the law in effect
3-23     before the effective date of this Act is continued in effect for
3-24     those purposes.