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A BILL TO BE ENTITLED
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AN ACT
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relating to ad valorem tax appeals on the ground of the unequal |
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appraisal of property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 42.26, Tax Code, is amended by amending |
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Subsections (a) and (b) and adding Subsections (e) and (f) to read |
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as follows: |
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(a) The district court shall grant relief on the ground that |
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a property is appraised unequally if: |
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(1) the appraisal ratio of the property exceeds by at |
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least 10 percent the median level of appraisal of a reasonable and |
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representative sample of other properties in the appraisal |
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district; |
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(2) the appraisal ratio of the property exceeds by at |
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least 10 percent the median level of appraisal of a sample of |
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properties in the appraisal district consisting of a reasonable |
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number of other properties similarly situated to, or of the same |
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general kind or character as, the property subject to the appeal; |
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[or] |
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(3) the appraised value of the property exceeds the |
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median appraised value of a reasonable number of comparable |
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properties appropriately adjusted and: |
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(A) the property qualified as a residence |
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homestead under Section 11.13 for the relevant tax year; or |
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(B) the appraised value of the property as |
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determined by the order of the appraisal review board is $1 million |
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or less; or |
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(4) the appraisal ratio of the property exceeds by at |
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least 10 percent the median level of appraisal of a reasonable and |
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representative sample of comparable properties in the appraisal |
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district. |
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(b) If a property owner is entitled to relief under |
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Subsection (a)(1), (2), or (4), the court shall order the |
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property's appraised value changed to the value as calculated on |
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the basis of the median level of appraisal according to Subsection |
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(a)(1), (2), or (4), as applicable. [If a property owner is
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entitled to relief under Subsection (a)(2), the court shall order
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the property's appraised value changed to the value calculated on
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the basis of the median level of appraisal according to Subsection
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(a)(2).] If a property owner is entitled to relief under Subsection |
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(a)(3), the court shall order the property's appraised value |
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changed to the value calculated on the basis of the median appraised |
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value according to Subsection (a)(3). If a property owner is |
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entitled to relief under more than one subdivision of Subsection |
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(a), the court shall order the property's appraised value changed |
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to the value that in the judgment of the court best reflects the |
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level of appraisal of other property in the appraisal district |
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[results in the lowest appraised value]. The court shall determine |
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each applicable median level of appraisal or median appraised value |
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according to law, and is not required to adopt the median level of |
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appraisal or median appraised value proposed by a party to the |
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appeal. The court may not limit or deny relief to the property |
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owner entitled to relief under a subdivision of Subsection (a) |
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because the appraised value determined according to another |
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subdivision of Subsection (a) results in a higher appraised value. |
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(e) For the purposes of Subsections (a)(3) and (4), a person |
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making a determination that property is comparable to another |
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property must base the determination on the similarity of the |
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properties with regard to the characteristics described by Section |
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23.013(d). |
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(f) The comptroller shall by rule establish standards for |
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the development and calibration of adjustments for industrial, |
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petrochemical refining and processing, and utility properties and |
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other unique properties. |
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SECTION 2. Section 42.29, 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) Notwithstanding Subsection (a), the amount of an award |
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of attorney's fees to a property owner may not exceed the lesser of: |
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(1) $100,000; or |
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(2) the total amount by which the property owner's tax |
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liability is reduced as a result of the appeal. |
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(c) An appraisal district, an appraisal review board, or a |
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chief appraiser that prevails in an appeal under Section 42.26 may |
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be awarded reasonable attorney's fees. The amount of the award may |
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not exceed $15,000. |
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SECTION 3. Not later than January 1, 2016, the comptroller |
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shall establish the standards required by Section 42.26(f), Tax |
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Code, as added by this Act. |
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SECTION 4. The changes in law made by this Act apply only to |
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an appeal under Chapter 42, Tax Code, for which a petition for |
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review is filed on or after the effective date of this Act. An |
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appeal under Chapter 42, Tax Code, for which a petition for review |
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was filed before the effective date of this Act is governed by the |
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law in effect on the date the petition for review was filed, and the |
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former law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2015. |