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A BILL TO BE ENTITLED
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AN ACT
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relating to ad valorem tax protests and appeals on the ground of the |
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unequal 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 41.43, Tax Code, is amended by amending |
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Subsection (b) and adding Subsections (e) and (f) to read as |
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follows: |
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(b) A protest on the ground of unequal appraisal of property |
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shall be determined in favor of the protesting party unless the |
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appraisal district establishes that: |
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(1) the appraisal ratio of the property is equal to or |
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less than 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 is equal to or |
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less than the median level of appraisal of a sample of properties in |
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the appraisal district consisting of a reasonable number of other |
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properties similarly situated to, or of the same general kind or |
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character as, the property subject to the protest; or |
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(3) the appraisal ratio [appraised value] of the |
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property is equal to or less than the median appraisal ratio |
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[appraised value] of a reasonable number of comparable properties |
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in the appraisal district [appropriately adjusted]. |
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(e) For purposes of Subsection (b)(3): |
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(1) a determination that property is comparable to |
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another property must be based on the similarity of the properties |
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with regard to the characteristics described by Section 23.013(d); |
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and |
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(2) calculation of the market value of the property |
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that is the subject of the protest or of a comparable property for |
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the purpose of determining the property's appraisal ratio must be |
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based on the appraised value of the property as shown in the |
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appraisal records submitted to the appraisal review board under |
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Section 25.22 or 25.23. |
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(f) The chief appraiser may disclose confidential |
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information for the purpose of meeting the appraisal district's |
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burden of proof under this section if the information does not |
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identify: |
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(1) a specific property; or |
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(2) a property owner. |
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SECTION 2. 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; or |
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(3) the appraisal ratio [appraised value] of the |
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property exceeds by at least 10 percent the median appraisal ratio |
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[appraised value] of a reasonable number of comparable properties |
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in the appraisal district [appropriately adjusted]. |
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(b) If a property owner is entitled to relief under |
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Subsection (a)(1), the court shall order the property's appraised |
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value changed to the value as calculated on the basis of the median |
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level of appraisal according to Subsection (a)(1). If a property |
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owner is entitled to relief under Subsection (a)(2), the court |
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shall order the property's appraised value changed to the value |
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calculated on the basis of the median level of appraisal according |
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to Subsection (a)(2). If a property owner is entitled to relief |
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under Subsection (a)(3), the court shall order the property's |
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appraised value changed to the value calculated on the basis of the |
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median appraisal ratio [appraised value] according to Subsection |
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(a)(3). If a property owner is entitled to relief under more than |
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one subdivision of Subsection (a), the court shall order the |
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property's appraised value changed to the value determined under |
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the subdivision under which the owner is entitled to relief that, in |
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the judgment of the court, reflects the most appropriate [results
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in the lowest] appraised value. The court shall determine each |
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applicable median level of appraisal or median appraisal ratio |
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[appraised value] according to law, and is not required to adopt the |
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median level of appraisal or median appraisal ratio [appraised
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value] proposed by a party to the appeal. [The court may not limit
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or deny relief to the property owner entitled to relief under a
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subdivision of Subsection (a) because the appraised value
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determined according to another subdivision of Subsection (a)
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results in a higher appraised value.] |
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(e) For purposes of Subsection (a)(3): |
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(1) a determination that property is comparable to |
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another property must be based on the similarity of the properties |
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with regard to the characteristics described by Section 23.013(d); |
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and |
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(2) calculation of the market value of the property |
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that is the subject of the protest or of a comparable property for |
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the purpose of determining the property's appraisal ratio must be |
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based on the appraised value of the property as shown in the |
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appraisal roll certified by the chief appraiser under Section |
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26.01, including any supplemental appraisal records added to the |
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appraisal roll and certified by the chief appraiser under Section |
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25.23. |
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(f) The chief appraiser may disclose confidential |
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information for the purpose of meeting the appraisal district's |
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burden of proof under this section if the information does not |
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identify: |
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(1) a specific property; or |
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(2) a property owner. |
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SECTION 3. Section 41.43, Tax Code, as amended by this Act, |
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applies only to a protest under Chapter 41, Tax Code, for which a |
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notice of protest is filed on or after the effective date of this |
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Act. A protest under Chapter 41, Tax Code, for which a notice of |
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protest was filed before the effective date of this Act is governed |
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by the law in effect on the date the notice of protest was filed, and |
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the former law is continued in effect for that purpose. |
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SECTION 4. Section 42.26, Tax Code, as amended by this Act, |
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applies only to an appeal under Chapter 42, Tax Code, for which a |
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petition for review is filed on or after the effective date of this |
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Act. An appeal under Chapter 42, Tax Code, for which a petition for |
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review was filed before the effective date of this Act is governed |
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by the law in effect on the date the petition for review was filed, |
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and the former law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect January 1, 2020. |