78R7451 JD-F
By: Wohlgemuth H.B. No. 3072
A BILL TO BE ENTITLED
AN ACT
relating to the determination of school district property values
and the accountability of appraisal district operations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 403.301, Government Code, is amended to
read as follows:
Sec. 403.301. PURPOSE. It is the policy of this state to
ensure equity among taxpayers in the burden of school district
taxes and among school districts in the distribution [payment] of
state financial aid for public education [to schools]. The purpose
of this subchapter is to promote that policy [equity] by providing
for uniformity in local property appraisal [the tax appraisal and
assessment] practices and procedures and in the determination of
property values for schools in order to distribute state funding
equitably [of school district tax offices, for improvement in the
administration and operation of school district tax offices, and
for greater competence among persons appraising and assessing
school districts' taxes].
SECTION 2. Subchapter M, Chapter 403, Government Code, is
amended by adding Section 403.3011 to read as follows:
Sec. 403.3011. DEFINITIONS. In this subchapter:
(1) "Annual study" means the study required of the
comptroller by Section 403.302(a).
(2) "Eligible school district" means a school district
for which the comptroller has determined the following:
(A) in the most recent annual study, the local
value is invalid under Section 403.302(c) and does not exceed the
state value for the school district determined by the comptroller;
and
(B) in the annual study for each of the two years
preceding the most recent annual study, the school district's local
value was valid under Section 403.302(c).
(3) "Local value" means the market value of property
in a school district as determined by the appraisal district that
appraises property for the school district, less the total amounts
and values listed in Section 403.302(d) as determined by that
appraisal district.
(4) "State value" means the value determined for a
school district by the comptroller as provided by Sections
403.302(a) and (b).
SECTION 3. Section 403.302, Government Code, is amended by
amending Subsections (c) and (h) and adding Subsections (l) and (m)
to read as follows:
(c) If the comptroller determines in the annual study that
the local value for [the market value of property in] a school
district [as determined by the appraisal district that appraises
property for the school district, less the total of the amounts and
values listed in Subsection (d) as determined by that appraisal
district,] is valid, the local value [the market value of property
in the school district as determined by the appraisal district that
appraises property for the school district, less the total of the
amounts and values listed in Subsection (d) as determined by that
appraisal district,] is presumed to represent taxable value for the
school district. In the absence of that [such a] presumption,
taxable value for a school district is the state value for the
school district determined by the comptroller under Subsections
[Subsection] (a) and (b), unless local value exceeds state value,
in which case taxable value for the school district is the
district's local value.
(h) The [On request of the commissioner of education or a
school district, the] comptroller may audit [a school district to
determine] the total taxable value of property in a [the] school
district and may revise the findings of value in response to a
request by a school district or the commissioner of education. The
grounds for a request for a revision audit are limited to
corrections and changes in a school district's appraisal roll that
occurred after preliminary certification of the annual study
findings. The request for a revision audit must be filed with the
comptroller within three years after the date of final
certification of the findings to the commissioner of education,
except that requests for a revision audit based on changes in value
due to judicial determinations and material reductions in value
resulting from corrections of appraisal rolls made under Section
25.25, Tax Code, must be requested within one year after the date of
certification of the changes to the appraisal rolls by the chief
appraiser. The comptroller may adopt rules to facilitate the
efficient audit of total taxable value[, including the productivity
values of land only if the land qualifies for appraisal on that
basis and the owner of the land has applied for and received a
productivity appraisal]. The comptroller shall certify the
comptroller's findings to the commissioner of education.
(l) If after conducting the annual study for the year 2003
or a subsequent year, the comptroller determines that a school
district is an eligible school district for that year and the
following year, the taxable value for the school district is the
district's local value. Within 12 months after the determination
that a school district is an eligible school district, the
comptroller shall complete an appraisal standards review of the
appraisal district that appraises property for the school district
as provided by Section 5.102, Tax Code.
(m) Notwithstanding a determination by the comptroller in
the annual study conducted for the year 2002 that a school
district's local value is invalid, for that year the taxable value
for the school district is the district's local value. This
subsection expires September 30, 2004.
SECTION 4. Section 5.07(c), Tax Code, is amended to read as
follows:
(c) The comptroller shall also prescribe a uniform record
system to be used by all offices appraising property for tax
purposes. The record system must include a compilation of
information in the records of the office concerning sales of
property within the boundaries of the appraisal district.
SECTION 5. Chapter 5, Tax Code, is amended by adding Section
5.071 to read as follows:
Sec. 5.071. REPORT OF PROPERTY SALES INFORMATION TO
COMPTROLLER. The information concerning sales of property
maintained in the uniform record system prescribed under Section
5.07(c) shall be submitted annually in a form prescribed by the
comptroller for use in conducting the annual study of school
district property values under Section 403.302, Government Code.
SECTION 6. Section 5.102, Tax Code, is amended to read as
follows:
Sec. 5.102. REVIEW OF APPRAISAL STANDARDS. (a) The
comptroller shall review the appraisal standards, procedures, and
methodology used by each appraisal district in which the
comptroller determines that a school district is an eligible school
district as defined by Section 403.3011, Government Code, to
determine compliance with generally accepted appraisal standards
and practices. The comptroller by rule may establish procedures
and standards for conducting the review.
(b) If the review results in a finding that an appraisal
district is not in compliance with generally accepted appraisal
standards and practices, the comptroller shall deliver a report
that details the comptroller's findings and recommendations for
improvement to the appraisal district's chief appraiser and board
of directors and to the superintendent and board of trustees of each
school district participating in the appraisal district.
(c) In conducting the review, the comptroller is entitled to
access to all records and reports of the appraisal district and to
the assistance of appraisal district employees or officers [If
noncompliance with generally accepted appraisal standards and
practices is found in two consecutive reviews and if an affected
appraisal district's chief appraiser and board of directors fail to
take effective remedial action as determined by the comptroller,
the comptroller may appoint a special master who may exercise
supervision and control over the operations of the district until
full compliance with generally accepted appraisal standards and
practices is achieved. The appraisal district shall bear the costs
related to the master's supervision and control].
(d) If the appraisal district fails to comply with the
recommendations made in the review and the comptroller finds that
the appraisal district board of directors failed to take remedial
action within one year after the issuance of the report of the
review, the comptroller shall notify the judge of each district
court in the county, who shall appoint a five-member board of
conservators to implement the recommendations. The members of the
board of conservators shall exercise supervision and control over
the operations of the appraisal district until the comptroller
determines under Subchapter M, Chapter 403, Government Code, that
the local value for each school district for which the appraisal
district appraises property is valid in the annual study for the
same year. The appraisal district shall bear the costs related to
the supervision and control by the board of conservators.
SECTION 7. Section 5.12, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) In addition to the performance audits required by
Subsections (a), (b), and (c) and the review of appraisal standards
required by Section 5.102, the comptroller may audit an appraisal
district to analyze the effectiveness and efficiency of the
policies, management, and operations of the appraisal district.
The results of the audit shall be delivered in a report that details
the comptroller's findings and recommendations for improvement to
the appraisal district's chief appraiser and board of directors and
to the governing body of each taxing unit participating in the
appraisal district. The comptroller may require reimbursement by
the appraisal district for some or all of the costs of the audit,
not to exceed the actual costs associated with conducting the
audit.
SECTION 8. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.