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A BILL TO BE ENTITLED
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AN ACT
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relating to the determination of an ad valorem tax protest or appeal |
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on the ground of the unequal appraisal of property on the basis of |
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the appraised value of the property relative to the median |
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appraised value of a reasonable number of comparable properties. |
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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 Subsection (e) to read as 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 appraised value of the property is equal to or |
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less than the median appraised value of a reasonable number of |
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comparable properties in the appraisal district appropriately |
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adjusted. |
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(e) For purposes of Subsection (b)(3), if a reasonable |
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number of comparable properties does not exist in the appraisal |
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district, the median appraised value of a reasonable number of |
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comparable properties may be calculated using comparable |
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properties in other parts of the state. |
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SECTION 2. Section 42.26, Tax Code, is amended by amending |
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Subsection (a) and adding Subsection (e) to read 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 appraised value of the property exceeds the |
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median appraised value of a reasonable number of comparable |
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properties in the appraisal district appropriately adjusted. |
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(e) For purposes of Subsection (a)(3), if a reasonable |
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number of comparable properties does not exist in the appraisal |
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district, the median appraised value of a reasonable number of |
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comparable properties may be calculated using comparable |
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properties in other parts of the state. |
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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 September 1, 2023. |