84R9854 TJB-F
 
  By: Ellis S.B. No. 1084
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to ad valorem tax appeals on the ground of the unequal
  appraisal of property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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 the
  median appraised value of a reasonable number of comparable
  properties appropriately adjusted and:
                     (A)  the property qualified as a residence
  homestead under Section 11.13 for the relevant tax year; or
                     (B)  the appraised value of the property as
  determined by the order of the appraisal review board is $1 million
  or less; or
               (4)  the appraisal ratio of the property exceeds by at
  least 10 percent the median level of appraisal of a reasonable and
  representative sample of comparable properties in the appraisal
  district.
         (b)  If a property owner is entitled to relief under
  Subsection (a)(1), (2), or (4), 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), (2), or (4), as applicable. [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 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.
         (e)  For the purposes of Subsections (a)(3) and (4), 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).
         (f)  The comptroller shall by rule establish standards for
  the development and calibration of adjustments for industrial,
  petrochemical refining and processing, and utility properties and
  other unique properties.
         SECTION 2.  Section 42.29, Tax Code, is amended by amending
  Subsection (b) and adding Subsection (c) to read as follows:
         (b)  Notwithstanding Subsection (a), the amount of an award
  of attorney's fees to a property owner may not exceed the lesser of:
               (1)  $100,000; or
               (2)  the total amount by which the property owner's tax
  liability is reduced as a result of the appeal.
         (c)  An appraisal district, an appraisal review board, or a
  chief appraiser that prevails in an appeal under Section 42.26 may
  be awarded reasonable attorney's fees. The amount of the award may
  not exceed $15,000.
         SECTION 3.  Not later than January 1, 2016, the comptroller
  shall establish the standards required by Section 42.26(f), Tax
  Code, as added by this Act.
         SECTION 4.  The changes in law made by this Act apply 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 September 1, 2015.