By: Turner of Harris H.B. No. 2889
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to evidence of inequality of appraisal in judicial appeals
  of appraisal review board orders.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sec. 42.26, Tax Code, is amended by amending
  Subsections (a) and (b) 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 a reasonable and
  representative sample of other properties in the appraisal
  district;
               (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 level of appraisal appraised value of a reasonable and
  representative sample number of comparable properties
  appropriately adjusted; or.
               (4)  if:
                     (A)  the property qualifies as the owner's
  residence homestead under Section 11.13; or
                     (B)  the appraised or market value, as applicable,
  of the property as determined by the order is $1 million or less,
  the appraised value of the property exceeds the median appraised
  value of a reasonable sample [number] of comparable properties
  appropriately adjusted. The comptroller shall by rule establish
  standards for development and calibration of adjustments for
  industrial, petrochemical refining and processing, and utility
  properties.
         (a-1)  For the purposes of subsections (a)(3) and (a)(4),
  whether a property is comparable to the subject property shall be
  determined based on similarities with regard to location, highest
  and best use, square footage of the lot and improvements, property
  age, property condition, property access, amenities, views,
  income, operating expenses, occupancy, economic conditions, and
  the existence of easements, deed restrictions, or other legal
  burdens affecting marketability. Improved property is not
  comparable to unimproved property.
         (a-2)  For the purposes of subsections (a)(4), adjustments
  must be developed and calibrated in compliance with generally
  accepted appraisal standards.
         (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 Subsection (a)(4), 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)(4). If a property owner is entitled to
  relief under more than one subdivision of Subsection (a), the court
  shall order the property's appraised value changed to the value
  that in the judgment of the court, best reflects the level of
  appraisal of other property in the appraisal district results in
  the lowest 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 subdivision of
  Subsection (a) results in a higher appraised value.
         SECTION 2.  This bill takes effect September 1, 2013.