By: Talton (Senate Sponsor - Staples) H.B. No. 1082
(In the Senate - Received from the House May 12, 2003;
May 13, 2003, read first time and referred to Committee on Finance;
May 23, 2003, reported favorably by the following vote: Yeas 11,
Nays 0, 1 present not voting; May 23, 2003, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the appraisal of property by appraisal districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) Section 6.025, Tax Code, is amended by
adding Subsection (d) to read as follows:
(d) If on May 1 all the chief appraisers of the appraisal
districts described by Subsection (a) in which a parcel or item of
property is located are not in agreement as to the appraised or
market value of the property, on that date each of the chief
appraisers shall enter as the appraised or market value of the
property on the appraisal records of the appropriate appraisal
district the lowest appraised or market value of the property as
determined by any of the chief appraisers. If as a result of a
protest, appeal, or other action the appraised or market value of
the property is subsequently reduced in any of the appraisal
districts, the chief appraiser shall notify each of the appraisal
districts of the reduced appraised or market value. The chief
appraiser of each appraisal district shall enter that reduced
appraised or market value on the appraisal records as the appraised
or market value of the property. If the appraised or market value
is reduced in more than one appraisal district, each chief
appraiser shall enter the lowest of those values on the appraisal
records.
(b) This section takes effect January 1, 2004, and applies
only to the appraisal for ad valorem tax purposes of property for a
tax year that begins on or after that date.
SECTION 2. Section 41.43, Tax Code, is amended by amending
Subsections (a) and (b) and adding Subsection (d) to read as
follows:
(a) Except as provided by Subsection (b), in [In] a protest
authorized by Section 41.41(a)(1) or (2) [41.41(1) or (2)], the
appraisal district has the burden of establishing the value of the
property by a preponderance of the evidence presented at the
hearing. If the appraisal district fails to meet that standard, the
protest shall be determined in favor of the property owner.
(b) A protest on the ground of unequal appraisal of property
shall be determined in favor of the appraisal district [protesting
party] unless the protesting party [appraisal district]
establishes that:
(1) the appraisal ratio of the property is [not]
greater than the median level of appraisal of[:
[(1)] a reasonable and representative sample of other
properties in the appraisal district;
(2) the appraisal ratio of the property is greater
than the median level of appraisal of a sample of properties in the
appraisal district consisting of a reasonable number of other
properties similarly situated to, or of the same general kind or
character as, the property subject to the protest; or
(3) the appraised value of the property is greater
than the median appraised value of a reasonable number of
comparable properties appropriately adjusted.
(d) For purposes of this section, the value of the property
subject to the protest and the value of a comparable property or
sample property that is used for comparison must be the market value
determined by the appraisal district when the property is a
residence homestead subject to the limitation on appraised value
imposed by Section 23.23.
SECTION 3. Sections 42.26(a), (b), and (d), Tax Code, are
amended to read as follows:
(a) The district court shall grant relief on the ground that
a property is appraised unequally if:
(1) the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of[:
[(1)] a reasonable and representative sample of other
properties in the appraisal district; [or]
(2) the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of a sample of
properties in the appraisal district consisting of a reasonable
number of other properties similarly situated to, or of the same
general kind or character as, the property subject to the appeal; or
(3) the appraised value of the property exceeds the
median appraised value of a reasonable number of comparable
properties appropriately adjusted.
(b) If a property owner is entitled to relief under
Subsection (a)(1), the court shall order the property's appraised
value changed to the value as calculated on the basis of the median
level of appraisal according to Subsection (a)(1). If a property
owner is entitled to relief under Subsection (a)(2), the court
shall order the property's appraised value changed to the value
calculated on the basis of the median level of appraisal according
to Subsection (a)(2). If a property owner is entitled to relief
under Subsection (a)(3), the court shall order the property's
appraised value changed to the value calculated on the basis of the
median appraised value according to Subsection (a)(3). If a
property owner is entitled to relief under more than one
subdivision of Subsection (a) [both Subsection (a)(1) and
Subsection (a)(2)], the court shall order the property's appraised
value changed to the value [calculated on the basis of the median
level of appraisal] that results in the lowest [lower] appraised
value. The court shall determine each applicable median level of
appraisal or median appraised value according to law, and is not
required to adopt the median level of appraisal or median appraised
value proposed by a party to the appeal. The court may not limit or
deny relief to the property owner entitled to relief under a
subdivision of Subsection (a) because the appraised value
determined according to another [the other] subdivision of
Subsection (a) results in a higher appraised value.
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or sample
property that is used for comparison must be the market value
determined by the appraisal district when the property is a
residence homestead subject to the limitation on appraised value
imposed by Section 23.23. [The 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.]
SECTION 4. Section 43.01, Tax Code, is amended to read as
follows:
Sec. 43.01. AUTHORITY TO BRING SUIT. (a) The following
persons [A taxing unit] may sue the appropriate appraisal district
or the appraisal review board established for that appraisal
district [that appraises property for the unit] to compel the
appraisal district or appraisal review board to comply with the
provisions of this title, rules of the comptroller, or other
applicable law:
(1) a taxing unit;
(2) a property owner;
(3) a lessee of property who is contractually
obligated to pay taxes imposed on the property;
(4) an agent of a property owner designated under
Section 1.111; or
(5) any other person authorized to bring an action on
behalf of a person listed in Subdivisions (1)-(4).
(b) The court shall award court costs and reasonable
attorney's fees to a plaintiff who prevails in a suit brought under
this section.
SECTION 5. (a) Section 43.01, Tax Code, as amended by this
Act takes effect September 1, 2003.
(b) The changes in law made by Section 43.01, Tax Code, as
amended by this Act apply only to a suit filed under Section 43.01,
Tax Code, on or after the effective date of this Act. A suit filed
under Section 43.01, Tax Code, before the effective date of this Act
is governed by the law in effect on the date the suit was filed, and
the former law is continued in effect for that purpose.
SECTION 6. (a) This Act takes effect September 1, 2003.
(b) The change in law made by this Act applies only to review
of an appraisal of property that was initiated by the filing of a
notice of protest with an appraisal review board on or after the
effective date of this Act. Review of an appraisal of property that
was initiated by the filing of a notice of protest with an appraisal
review board before the effective date of this Act is governed by
the law in effect on the date the notice of protest was filed, and
the former law is continued in effect for that purpose.
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