By: Otto H.B. No. 2723

A BILL TO BE ENTITLED

AN ACT

relating to the burden of establishing the value of property in certain protests to an appraisal review board.

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

SECTION 1. Section 41.43, Tax Code, is amended by amending Subsection (a) and adding subsections (a-3) and (a-4) to read as follows:

(a) Except as provided by Subsections (a-1), (a-3) and (d), in a protest authorized by Section 41.41(a)(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.

(a-1) If in the protest relating to a property with a market or appraised value of $1 million or less as determined by the appraisal district the property owner files with the appraisal review board and, not later than the 14th day before the date of the first day of the hearing, delivers to the chief appraiser a copy of an appraisal of the property performed not later than the 180th day before the date of the first day of the hearing by an appraiser certified under Chapter 1103, Occupations Code, that supports the appraised or market value of the property asserted by the property owner, the appraisal district has the burden of establishing the value of the property by clear and convincing 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.

(a-2) To be valid, an appraisal filed under Subsection (a-1) must be attested to before an officer authorized to administer oaths and include:

(1) the name and business address of the certified appraiser;

(2) a description of the property that was the subject of the appraisal;

(3) a statement that the appraised or market value of the property:

(A) was, as applicable, the appraised or market value of the property as of January 1 of the current tax year; and

(B) was determined using a method of appraisal authorized or required by Chapter 23; and

(4) a statement that the appraisal was performed in accordance with the Uniform Standards of Professional Appraisal Practice.

(a-3) Except as provided under Subsection (a-4), in a protest authorized by Section 41.41(a)(1) or (2), the appraisal district has the burden of establishing the value of the property by clear and convincing evidence presented at the hearing. If the appraisal district fails to meet that standard the protest of the property value shall be determined in favor of the property owner provided that:

(1) the appraised value of the property subject to Section 23.01 was established under this Subtitle, and

(2) the property owner files with the appraisal review board and delivers to the chief appraiser information sufficient to allow for a determination of the market value of the property such as income and expense statements or comparable sales, not later than the date established by Section 41.47. r.

(a-4) The burden of proof established in Subsection (a-3) shall not apply in cases where the value of the property was established by mutual agreement of the property owner and chief appraiser prior to the appraisal review board determining the protest and issuing its decision by written order.

SECTION 2. The change in law made this Act applies only to a protest filed with an appraisal review board on or after the effective date of this Act. A protest filed with an appraisal review board before the effective date of this Act is covered by the law in effect at the time the protest was filed, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2013.