84R8994 CJC-F
 
  By: Guillen H.B. No. 3609
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to ad valorem tax protests and appeals on the ground of the
  unequal appraisal of property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 41.43, Tax Code, is amended by amending
  Subsection (b) and adding Subsections (e) and (f) to read as
  follows:
         (b)  A protest on the ground of unequal appraisal of property
  shall be determined in favor of the protesting party unless the
  appraisal district establishes that:
               (1)  the appraisal ratio of the property is equal to or
  less than 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 is equal to or
  less than 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 protest; or
               (3)  the appraisal ratio [appraised value] of the
  property is equal to or less than the median appraisal ratio 
  [appraised value] of a reasonable number of comparable properties
  in the appraisal district appropriately adjusted.
         (e)  For purposes of Subsection (b)(3):
               (1)  a determination that property is comparable to
  another property must be based on the similarity of the properties
  with regard to the characteristics described by Section 23.013(d);
               (2)  adjustments to be applied to a comparable property
  for purposes of determining the appraisal ratio of that property
  must be developed and quantified in accordance with generally
  accepted appraisal standards that are appropriate relative to the
  method of appraisal used by the chief appraiser to determine the
  value of the property; and
               (3)  calculation of the market value of the property
  that is the subject of the protest or of a comparable property for
  the purpose of determining the property's appraisal ratio must be
  based on the appraised value of the property as shown in the
  appraisal records submitted to the appraisal review board under
  Section 25.22 or 25.23.
         (f)  The chief appraiser may disclose confidential
  information for the purpose of meeting the appraisal district's
  burden of proof under this section if the information does not
  identify:
               (1)  a specific property; or
               (2)  a property owner.
         SECTION 2.  Section 42.26, Tax Code, is amended by amending
  Subsections (a) and (b) and adding Subsections (e) and (f) 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 by at
  least 10 percent the median appraised value of a reasonable number
  of comparable properties in the appraisal district appropriately
  adjusted.
         (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 more than one
  subdivision of Subsection (a), the court shall order the property's
  appraised value changed to the value determined under the
  subdivision under which the owner is entitled to relief that, in the
  judgment of the court, reflects the most appropriate [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.]
         (e)  For purposes of Subsection (a)(3):
               (1)  a determination that property is comparable to
  another property must be based on the similarity of the properties
  with regard to the characteristics described by Section 23.013(d);
               (2)  adjustments must be developed and quantified in
  accordance with generally accepted appraisal standards that are
  appropriate relative to the method of appraisal used by the chief
  appraiser to determine the value of the property; and
               (3)  calculation of the median appraised value of
  comparable properties must be based on the appraised value of each
  comparable property as shown in the appraisal records certified by
  the chief appraiser under Section 26.01.
         (f)  The chief appraiser may disclose confidential
  information for the purpose of meeting the appraisal district's
  burden of proof under this section if the information does not
  identify:
               (1)  a specific property; or
               (2)  a property owner.
         SECTION 3.  Section 41.43, Tax Code, as amended by this Act,
  applies only to a protest under Chapter 41, Tax Code, for which a
  notice of protest is filed on or after the effective date of this
  Act. A protest under Chapter 41, Tax Code, for which a notice of
  protest was filed before the effective date of this Act is governed
  by the law in effect on the date the notice of protest was filed, and
  the former law is continued in effect for that purpose.
         SECTION 4.  Section 42.26, Tax Code, as amended by this Act,
  applies only to an appeal under Chapter 42, Tax Code, for which a
  petition for review is filed on or after the effective date of this
  Act. An appeal under Chapter 42, Tax Code, for which a petition for
  review was filed before the effective date of this Act is governed
  by the law in effect on the date the petition for review was filed,
  and the former law is continued in effect for that purpose.
         SECTION 5.  This Act takes effect January 1, 2016.