87R3792 TJB-D
 
  By: Beckley H.B. No. 1099
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to ad valorem tax protests and appeals on the ground of the
  unequal appraisal of property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 23.01(f), Tax Code, is amended to read as
  follows:
         (f)  The selection of comparable properties [and the
  application of appropriate adjustments] for the determination of an
  appraised value of property by any person under Section 41.43(b)(3)
  or 42.26(a)(3) must be based on the application of generally
  accepted appraisal methods and techniques. [Adjustments must be
  based on recognized methods and techniques that are necessary to
  produce a credible opinion.]
         SECTION 2.  Section 41.43, Tax Code, is amended by amending
  Subsection (b) and adding Subsections (e) and (f) to read as
  follows:
         (b)  A protest on the ground of unequal appraisal of property
  shall be determined in favor of the protesting party unless the
  appraisal district establishes that:
               (1)  the appraisal ratio of the property is equal to or
  less than 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 is equal to or
  less than 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 protest; or
               (3)  the appraisal ratio [appraised value] of the
  property is equal to or less than the median level of appraisal 
  [appraised value] of a reasonable number of comparable properties
  in the appraisal district [appropriately adjusted].
         (e)  For the purpose of Subsection (b)(3):
               (1)  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); and
               (2)  a person calculating the median level of appraisal
  of comparable properties must base the calculation on the appraised
  value of each comparable property as shown in the appraisal records
  submitted to the appraisal review board by the chief appraiser
  under Section 25.22 or 25.23.
         (f)  The comptroller shall by rule establish standards for
  the development and calibration of adjustments to the appraised
  value for industrial, petrochemical refining and processing, and
  utility properties and other unique properties.
         SECTION 3.  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 appraisal ratio [appraised value] of the
  property exceeds by at least 10 percent the median level of
  appraisal [appraised value] of a reasonable number of comparable
  properties in the appraisal district [appropriately adjusted].
         (b)  If a property owner is entitled to relief under a
  subdivision of Subsection (a) [(a)(1)], 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 that
  subdivision [Subsection (a)(1). 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 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 purpose of Subsection (a)(3):
               (1)  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); and
               (2)  a person calculating the median level of appraisal
  of comparable properties must base the calculation on the appraised
  value of each comparable property as shown in the appraisal records
  certified by the chief appraiser under Section 26.01.
         (f)  The comptroller shall by rule establish standards for
  the development and calibration of adjustments to the appraised
  value for industrial, petrochemical refining and processing, and
  utility properties and other unique properties.
         SECTION 4.  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 5.  Not later than January 1, 2022, the comptroller
  shall establish the standards required by Sections 41.43(f) and
  42.26(f), Tax Code, as added by this Act.
         SECTION 6.  Section 41.43, Tax Code, as amended by this Act,
  applies only to a protest under Chapter 41, Tax Code, for which a
  notice of protest is filed on or after the effective date of this
  Act. A protest under Chapter 41, Tax Code, for which a notice of
  protest was filed before the effective date of this Act is governed
  by the law in effect on the date the notice of protest was filed, and
  the former law is continued in effect for that purpose.
         SECTION 7.  Sections 42.26 and 42.29, Tax Code, as amended 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 8.  This Act takes effect September 1, 2021.