|
|
|
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 Subsection (e) 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 appraised value of the property is equal to or |
|
less than the median appraised value of a reasonable number of |
|
comparable properties in the appraisal district appropriately |
|
adjusted. |
|
(e) For the purpose of Subsection (b)(3): |
|
(1) a person making a determination that property is |
|
comparable to another property must base the determination on the |
|
similarity of the properties with regard to the characteristics |
|
described by Section 23.013(d); |
|
(2) a person who develops and quantifies adjustments |
|
must develop and quantify the adjustments in accordance with |
|
generally accepted appraisal standards; and |
|
(3) a person calculating the median appraised value of |
|
comparable properties must base the calculation on the appraised |
|
value of each comparable property as shown in the appraisal records |
|
submitted to the appraisal review board by the chief appraiser |
|
under Section 25.22 or 25.23. |
|
SECTION 2. Section 42.26, Tax Code, is amended by amending |
|
Subsection (a) and adding Subsection (e) 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. |
|
(e) For the purpose of Subsection (a)(3): |
|
(1) a person making a determination that property is |
|
comparable to another property must base the determination on the |
|
similarity of the properties with regard to the characteristics |
|
described by Section 23.013(d); |
|
(2) a person who develops and quantifies adjustments |
|
must develop and quantify the adjustments in accordance with |
|
generally accepted appraisal standards; and |
|
(3) a person calculating the median appraised value of |
|
comparable properties must base the calculation on the appraised |
|
value of each comparable property as shown in the appraisal records |
|
certified by the chief appraiser under Section 26.01. |
|
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. |