86R1665 TJB-D
 
  By: Bernal H.B. No. 185
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a study of the impact, feasibility, and advisability of
  adopting a property tax system in which the disclosure of the sales
  price of real property is required by law.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a) The comptroller shall conduct a study of the
  impact, feasibility, and advisability of adopting a property tax
  system in which the disclosure of the sales price of real property
  is required by law.
         (b)  The comptroller shall establish an advisory committee
  to assist the comptroller in conducting the study. The advisory
  committee must be composed of:
               (1)  the following representatives appointed by the
  comptroller:
                     (A)  one representative of a school district that
  is required to reduce its wealth per student under Chapter 41,
  Education Code;
                     (B)  one representative of a school district that
  is entitled to state aid under Chapter 42, Education Code;
                     (C)  one member of a county commissioners court;
                     (D)  one member of the governing body of a
  municipality;
                     (E)  one member of the governing body of a
  political subdivision other than a school district, county, or
  municipality;
                     (F)  one or more representatives of appraisal
  districts;
                     (G)  one or more representatives of the profession
  of real estate agents;
                     (H)  one or more representatives of property tax
  payers;
                     (I)  one or more representatives of organizations
  interested in the effect of public policy on low-income and
  moderate-income households; and
                     (J)  one or more representatives of other
  appropriate interested organizations or members of the public, as
  determined by the comptroller;
               (2)  one member of the house of representatives
  appointed by the speaker of the house of representatives; and
               (3)  one member of the senate appointed by the
  lieutenant governor.
         (c)  The comptroller, with the assistance of the advisory
  committee, shall study:
               (1)  the impact on the property tax system, property
  tax revenue of school districts and other taxing units, the
  allocation of property tax burdens among taxpayers, and the cost to
  the state to fund public education:
                     (A)  under the current system in which the
  disclosure of the sales price of real property is not required by
  law; and
                     (B)  under a system in which the disclosure of the
  sales price of real property would be required by law;
               (2)  the statutory and administrative changes that
  would be necessary to effectively collect, disseminate, and use
  sales price information;
               (3)  the annual cost to purchase real property sales
  price information from a private entity, such as a multiple listing
  service, compared to the annual cost to obtain that information
  under a system in which the disclosure of the sales price of real
  property would be required by law; and
               (4)  the annual cost to appraisal districts of all
  property tax protests and appeals filed under Chapters 41, 41A, and
  42, Tax Code, and Subchapter Z, Chapter 2003, Government Code.
         (d)  In studying the allocation of property tax burdens among
  taxpayers, the comptroller and the advisory committee must compare
  the tax burden among property owners of each classification of real
  property, including a comparison of the burden on owners of:
               (1)  commercial properties as compared to
  single-family residential properties;
               (2)  industrial properties as compared to
  single-family residential properties; and
               (3)  single-family residential properties for which
  the sales price of the property is provided by a private entity,
  such as a multiple listing service, to a chief appraiser for use by
  the chief appraiser in determining the appraised value of the
  property as compared to single-family residential properties for
  which the sales price is not provided.
         (e)  The comptroller and the advisory committee shall
  prepare a report that:
               (1)  makes findings and recommendations regarding the
  issues studied under Subsection (c) of this section;
               (2)  forecasts the fiscal impact to state revenue for
  the following three state fiscal bienniums under a system in which
  the disclosure of the sales price of real property would be required
  by law as compared to a system in which the sales price of real
  property is not required by law; and
               (3)  lists each type of taxing unit that would be
  impacted under a system in which the disclosure of the sales price
  of real property would be required by law.
         (f)  The comptroller may contract with appraisal districts,
  taxing units, or other appropriate entities for assistance and to
  obtain information necessary to conduct the study. A state agency,
  appraisal district, or taxing unit shall assist the comptroller if
  the comptroller requests information or assistance in conducting
  the study.
         (g)  Not later than December 1, 2020, the comptroller shall
  submit to the governor, lieutenant governor, and speaker of the
  house of representatives the report prepared under Subsection (e)
  of this section.
         SECTION 2.  This Act expires September 1, 2021.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2019.