SRC-TJG S.B. 291 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 291
78R2491 RCJ-FBy: West, Royce
Finance
3/5/2003
As Filed


DIGEST AND PURPOSE 

The 75th Texas Legislature amended Section 42.26, Property Tax Code,  to
provide that a "district court shall grant relief on the ground that a
property is appraised unequally if the appraised value of the property
exceeds the median appraised value of a reasonable number of comparable
properties, appropriately adjusted."  The bill provided that a property
should be treated like other similar properties.  However, the courts have
misunderstood the legislative intent when equity is an issue.  As
proposed, S.B. 291 broadens the interpretation of "median level" of
appraisal and sets the standard estimate made annually by the
comptroller's office, Property Tax Division, based on studies of each
school district's appraisal roll and the appraisal district.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 42.26(d), Tax Code, to require the district
court to grant relief on the ground that a property is appraised unequally
if the appraised value of the property exceeds the median market, rather
than appraised, value of a reasonable number of comparable properties
similarly situated to, or of the same general kind or character as, the
property subject to the appeal, appropriately adjusted.  Authorizes the
comparable properties to include the property subject to the appeal. 

SECTION 2.  (a) Effective date: September 1, 2003.

(b) Makes application of this Act prospective.