78R4848 JD-F
By: Staples S.B. No. 1638
A BILL TO BE ENTITLED
AN ACT
relating to remedies for the unequal appraisal of property by an
appraisal district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 2. 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 3. (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.