80R7747 JD-F

By: Villarreal H.B. No. 2513

A BILL TO BE ENTITLED

AN ACT

relating to the annual school district property value study conducted by the comptroller of public accounts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 403.302(b) and (c), Government Code, are amended to read as follows:

(b) In conducting the study, the comptroller shall carry out a detailed review of the appraisal standards, procedures, and methodology used by each appraisal district to determine the taxable value of property in each school district. The review must include samples selected through appropriate random sampling techniques and test compliance with generally accepted appraisal standards and practices used by the appraisal district to determine the taxable value according to the school district's appraisal roll. If the comptroller finds in the annual study that generally accepted appraisal standards and practices were used by the appraisal district in valuing a particular category of property, the value of that category as shown on the appraisal roll is presumed to represent taxable value. If the comptroller finds in the annual study that generally accepted appraisal standards and practices were not used by the appraisal district in appraising a particular category of property, the comptroller shall estimate the taxable value of that category of property [:

[(1)] using[, if] appropriate[, samples selected through generally accepted sampling techniques;

[(2)according to generally accepted] standard valuation, statistical compilation, and analysis techniques[; and

[(3) ensuring that different levels of appraisal on sold and unsold property do not adversely affect the accuracy of the study].

(c) If after conducting the annual study the comptroller determines that the appraisal district used appropriate information and methodology to appraise all property or a category of property for a school district, the local value of that property for the [a] school district [is valid, the local value] is presumed to represent the taxable value of all property or the category of property, as applicable, for the school district. In the absence of that presumption, the taxable value of all property or of a category of property for a school district is the state value of that property for the school district determined by the comptroller under Subsections (a) and (b) unless the local value of all property or of a category of property exceeds the state value of that property, in which case the taxable value of all property or the category of property, as applicable, for the school district is the district's local value of that property. In determining whether the local value of all property or a category of property for a school district is valid, the comptroller shall use a margin of error that does not exceed five percent unless the comptroller determines that the size of the sample of properties necessary to make the determination makes the use of such a margin of error not feasible, in which case the comptroller may use a larger margin of error.

SECTION 2. The change in law made by this Act applies only to the annual study conducted under Section 403.302, Government Code, to determine taxable value for a tax year that begins on or after January 1, 2007. The annual study for a tax year that begins before January 1, 2007, is covered by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose.

SECTION 3. 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, 2007.