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A BILL TO BE ENTITLED
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AN ACT
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relating to a study of the impact, feasibility, and advisability of |
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adopting a property tax system in which the disclosure of the sales |
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price of real property is required by law. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) The comptroller shall conduct a study of the |
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impact, feasibility, and advisability of adopting a property tax |
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system in which the disclosure of the sales price of real property |
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is required by law. |
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(b) The comptroller shall establish an advisory committee |
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to assist the comptroller in conducting the study. The advisory |
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committee must be composed of: |
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(1) the following representatives appointed by the |
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comptroller: |
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(A) one representative of a school district that |
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is required to reduce its local revenue level under Section 48.257, |
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Education Code; |
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(B) one representative of a school district that |
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receives state aid under Chapter 48, Education Code; |
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(C) one member of a county commissioners court; |
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(D) one member of the governing body of a |
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municipality; |
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(E) one member of the governing body of a |
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political subdivision other than a school district, county, or |
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municipality; |
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(F) one or more representatives of appraisal |
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districts; |
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(G) one or more representatives of the profession |
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of real estate agents; |
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(H) one or more representatives of property tax |
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payers; |
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(I) one or more representatives of organizations |
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interested in the effect of public policy on low-income and |
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moderate-income households; and |
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(J) one or more representatives of other |
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appropriate interested organizations or members of the public, as |
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determined by the comptroller; |
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(2) one member of the house of representatives |
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appointed by the speaker of the house of representatives; and |
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(3) one member of the senate appointed by the |
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lieutenant governor. |
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(c) The comptroller, with the assistance of the advisory |
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committee, shall study: |
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(1) the impact on the property tax system, property |
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tax revenue of school districts and other taxing units, the |
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allocation of property tax burdens among taxpayers, and the cost to |
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the state to fund public education: |
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(A) under the current system in which the |
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disclosure of the sales price of real property is not required by |
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law; and |
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(B) under a system in which the disclosure of the |
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sales price of real property would be required by law; |
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(2) the statutory and administrative changes that |
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would be necessary to effectively collect, disseminate, and use |
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sales price information; |
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(3) the annual cost to purchase real property sales |
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price information from a private entity, such as a multiple listing |
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service, compared to the annual cost to obtain that information |
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under a system in which the disclosure of the sales price of real |
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property would be required by law; and |
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(4) the annual cost to appraisal districts of all |
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property tax protests and appeals filed under Chapters 41, 41A, and |
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42, Tax Code, and Subchapter Z, Chapter 2003, Government Code. |
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(d) In studying the allocation of property tax burdens among |
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taxpayers, the comptroller and the advisory committee must compare |
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the tax burden among property owners of each classification of real |
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property, including a comparison of the burden on owners of: |
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(1) commercial properties as compared to |
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single-family residential properties; |
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(2) industrial properties as compared to |
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single-family residential properties; and |
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(3) single-family residential properties for which |
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the sales price of the property is provided by a private entity, |
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such as a multiple listing service, to a chief appraiser for use by |
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the chief appraiser in determining the appraised value of the |
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property as compared to single-family residential properties for |
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which the sales price is not provided. |
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(e) The comptroller and the advisory committee shall |
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prepare a report that: |
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(1) makes findings and recommendations regarding the |
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issues studied under Subsection (c) of this section; |
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(2) forecasts the fiscal impact to state revenue for |
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the following three state fiscal bienniums under a system in which |
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the disclosure of the sales price of real property would be required |
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by law as compared to a system in which the sales price of real |
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property is not required by law; and |
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(3) lists each type of taxing unit that would be |
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impacted under a system in which the disclosure of the sales price |
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of real property would be required by law. |
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(f) The comptroller may contract with appraisal districts, |
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taxing units, or other appropriate entities for assistance and to |
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obtain information necessary to conduct the study. A state agency, |
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appraisal district, or taxing unit shall assist the comptroller if |
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the comptroller requests information or assistance in conducting |
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the study. |
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(g) Not later than December 1, 2022, the comptroller shall |
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submit to the governor, lieutenant governor, and speaker of the |
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house of representatives the report prepared under Subsection (e) |
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of this section. |
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SECTION 2. This Act expires September 1, 2023. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect on the 91st day after the last day of the |
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legislative session. |