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A BILL TO BE ENTITLED
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AN ACT
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relating to a temporary prohibition on increasing the market value |
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of certain parcels of real property for ad valorem tax purposes |
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following determination of a protest or appeal. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 23, Tax Code, is amended by |
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adding Section 23.04 to read as follows: |
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Sec. 23.04. TEMPORARY PROHIBITION ON INCREASING MARKET |
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VALUE OF CERTAIN REAL PROPERTY. (a) This section applies to the |
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appraisal of a parcel of commercial or residential real property if |
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the market value of the property as determined by the chief |
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appraiser is reduced by at least 15 percent: |
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(1) by the appraisal review board and the board's |
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determination is not overturned on appeal; or |
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(2) as a result of the final determination of an appeal |
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of an order of the appraisal review board. |
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(b) The market value of the property may not be increased |
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for the first two tax years following the tax year for which the |
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market value of the property was reduced. |
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(c) Subsection (b) does not prohibit an increase in the |
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market value of a parcel of commercial or residential real property |
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attributable to an improvement to the property made after the most |
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recent appraisal of the property that increases the market value of |
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the property and the value of which is not included in the market |
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value of the property for the preceding tax year. Repairs to or |
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ordinary maintenance of an existing structure or the grounds or |
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another feature of property are not considered an improvement to |
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the property for purposes of this subsection. |
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(d) The market value of a parcel of commercial or |
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residential real property appraised as provided by this section is |
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considered to be the market value of the property for purposes of |
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the studies required by Chapter 5 of this code and by Section |
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403.302, Government Code. A parcel of commercial or residential |
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real property appraised as provided by this section may not be used |
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as a comparable property or a ratio study sample for the purpose of |
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determining whether another property is unequally appraised. |
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SECTION 2. This Act applies only to the appraisal of a |
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parcel of commercial or residential real property for ad valorem |
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tax purposes for a tax year beginning on or after the effective date |
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of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |