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A BILL TO BE ENTITLED
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AN ACT
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relating to the determination of the value of property for ad |
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valorem tax purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.01, Tax Code, is amended by amending |
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Subsection (b) and adding Subsection (c) to read as follows: |
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(b) The market value of property shall be determined by the |
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application of generally accepted appraisal methods and |
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techniques. If the appraisal district determines the appraised |
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value of a property using mass appraisal standards, the mass |
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appraisal standards must comply with the Uniform Standards of |
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Professional Appraisal Practice. The same or similar appraisal |
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methods and techniques shall be used in appraising the same or |
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similar kinds of property. However, each property shall be |
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appraised based upon the individual characteristics that affect the |
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property's market value, and all available evidence that is |
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specific to the value of the property shall be taken into account in |
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determining the property's market value. |
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(c) Notwithstanding any provision of this subchapter to the |
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contrary, if the appraised value of property in a tax year is |
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determined under Subtitle F, the appraised value of the property as |
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finally determined under that subtitle is considered to be the |
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appraised value of the property for that tax year. In the following |
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tax year, the chief appraiser may not increase the appraised value |
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of the property unless the increase by the chief appraiser is |
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reasonably supported by substantial evidence when all of the |
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reliable and probative evidence in the record is considered as a |
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whole. |
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SECTION 2. Sections 23.013 and 23.24, Tax Code, are amended |
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to read as follows: |
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Sec. 23.013. MARKET DATA COMPARISON METHOD OF APPRAISAL. |
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(a) If the chief appraiser uses the market data comparison method |
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of appraisal to determine the market value of real property, the |
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chief appraiser shall use comparable sales data and shall adjust |
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the comparable sales to the subject property. |
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(b) A sale is not considered to be a comparable sale unless |
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the sale occurred within 24 months of the date as of which the |
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market value of the subject property is to be determined, except |
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that a sale that did not occur during that period may be considered |
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to be a comparable sale if enough comparable properties were not |
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sold during that period to constitute a representative sample. |
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(c) A sale of a comparable property must be appropriately |
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adjusted for any change in the market value of the comparable |
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property during the period between the date of the sale of the |
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comparable property and the date as of which the market value of the |
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subject property is to be determined. |
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(d) Whether a property is comparable to the subject property |
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shall be determined based on similarities with regard to location, |
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square footage of the lot and improvements, property age, property |
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condition, property access, amenities, views, income, operating |
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expenses, occupancy, and the existence of easements, deed |
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restrictions, or other legal burdens affecting marketability. |
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Sec. 23.24. FURNITURE, FIXTURES, AND EQUIPMENT. (a) If |
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real property is appraised by a method that takes into account the |
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value of furniture, fixtures, and equipment in or on the real |
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property, the furniture, fixtures, and equipment shall not be |
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subject to additional appraisal or taxation as personal property. |
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(b) In determining the market value of the real property, |
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the chief appraiser may not separately appraise or take into |
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account any personal property valued as a portion of the income of |
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the real property, and the market value of the real property must |
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include the combined value of the real property and the personal |
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property. |
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SECTION 3. Section 23.014, Tax Code, is repealed. |
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SECTION 4. This Act applies only to the appraisal of |
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property for a tax year beginning on or after the effective date of |
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this Act. |
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SECTION 5. This Act takes effect January 1, 2010. |
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