Property Tax Inquiries Call 713.290.9700

Texas Property Tax Code 2015 Chapter 23 Subchapter A

Texas Property Tax Code

2015 Edition

Texas Comptroller of Public Accounts

The Texas Property Tax Code available on this website are current through the Regular Session of the 84th Legislature, June 2015. The Texas Constitution is current through the amendments approved by voters in November 2015.

Return to: Texas Property Tax code Table of contents

TITLE 1. PROPERTY TAX CODE
SUBTITLE D. APPRAISAL AND ASSESSMENT
CHAPTER 23. APPRAISAL METHODS AND PROCEDURES

SUBCHAPTER A. APPRAISALS GENERALLY

Sec. 23.01.  APPRAISALS GENERALLY.  (a)  Except as otherwise provided by this chapter, all taxable property is appraised at its market value as of January 1.

(b)  The market value of property shall be determined by the application of generally accepted appraisal methods and techniques.  If the appraisal district determines the appraised value of a property using mass appraisal standards, the mass appraisal standards must comply with the Uniform Standards of Professional Appraisal Practice.  The same or similar appraisal methods and techniques shall be used in appraising the same or similar kinds of property.  However, each property shall be appraised based upon the individual characteristics that affect the property’s market value, and all available evidence that is specific to the value of the property shall be taken into account in determining the property’s market value.

(c)  Notwithstanding Section 1.04(7)(C), in determining the market value of a residence homestead, the chief appraiser may not exclude from consideration the value of other residential property that is in the same neighborhood as the residence homestead being appraised and would otherwise be considered in appraising the residence homestead because the other residential property:

(1)  was sold at a foreclosure sale conducted in any of the three years preceding the tax year in which the residence homestead is being appraised and was comparable at the time of sale based on relevant characteristics with other residence homesteads in the same neighborhood; or

(2)  has a market value that has declined because of a declining economy.

(d)  The market value of a residence homestead shall be determined solely on the basis of the property’s value as a residence homestead, regardless of whether the residential use of the property by the owner is considered to be the highest and best use of the property.

(e)  Notwithstanding any provision of this subchapter to the contrary, if the appraised value of property in a tax year is lowered under Subtitle F, the appraised value of the property as finally determined under that subtitle is considered to be the appraised value of the property for that tax year.  In the following tax year, the chief appraiser may not increase the appraised value of the property unless the increase by the chief appraiser is reasonably supported by substantial evidence when all of the reliable and probative evidence in the record is considered as a whole.  If the appraised value is finally determined in a protest under Section 41.41(a)(2) or an appeal under Section 42.26, the chief appraiser may satisfy the requirement to reasonably support by substantial evidence an increase in the appraised value of the property in the following tax year by presenting evidence showing that the inequality in the appraisal of property has been corrected with regard to the properties that were considered in determining the value of the subject property.  The burden of proof is on the chief appraiser to support an increase in the appraised value of property under the circumstances described by this subsection.

(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.

(g)  Notwithstanding any other provision of this section, property owners representing themselves are entitled to offer an opinion of and present argument and evidence related to the market and appraised value or the inequality of appraisal of the owner’s property.

Acts 1979, 66th Leg., p. 2252, ch. 841, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1985, 69th Leg., ch. 823, Sec. 5, eff. Jan. 1, 1986;  Acts 1997, 75th Leg., ch. 1039, Sec. 21, eff. Jan. 1, 1998.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 619 (H.B. 1038), Sec. 1, eff. January 1, 2010.

Acts 2009, 81st Leg., R.S., Ch. 1211 (S.B. 771), Sec. 1, eff. January 1, 2010.

Acts 2009, 81st Leg., R.S., Ch. 1405 (H.B. 3613), Sec. 2, eff. January 1, 2010.

Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 27.001(56), eff. September 1, 2011.

Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 27.001(57), eff. September 1, 2011.

Acts 2015, 84th Leg., R.S., Ch. 101 (H.B. 2083), Sec. 1, eff. January 1, 2016.

                  

Sec. 23.0101.  CONSIDERATION OF ALTERNATE APPRAISAL METHODS.  In determining the market value of property, the chief appraiser shall consider the cost, income, and market data comparison methods of appraisal and use the most appropriate method.

Added by Acts 1997, 75th Leg., ch. 1039, Sec. 22, eff. Jan. 1, 1998.  Amended by Acts 1999, 76th Leg., ch. 1295, Sec. 1, eff. Jan. 1, 2000.

                  

Sec. 23.011.  COST METHOD OF APPRAISAL.  If the chief appraiser uses the cost method of appraisal to determine the market value of real property, the chief appraiser shall:

(1)  use cost data obtained from generally accepted sources;

(2)  make any appropriate adjustment for physical, functional, or economic obsolescence;

(3)  make available to the public on request cost data developed and used by the chief appraiser as applied to all properties within a property category and may charge a reasonable fee to the public for the data;

(4)  clearly state the reason for any variation between generally accepted cost data and locally produced cost data if the data vary by more than 10 percent;  and

(5)  make available to the property owner on request all applicable market data that demonstrate the difference between the replacement cost of the improvements to the property and the depreciated value of the improvements.

Added by Acts 1997, 75th Leg., ch. 1039, Sec. 22, eff. Jan. 1, 1998.

                  

Sec. 23.012.  INCOME METHOD OF APPRAISAL.  (a)  If the income method of appraisal is the most appropriate method to use to determine the market value of real property, the chief appraiser shall:

(1)  analyze comparable rental data available to the chief appraiser or the potential earnings capacity of the property, or both, to estimate the gross income potential of the property;

(2)  analyze comparable operating expense data available to the chief appraiser to estimate the operating expenses of the property;

(3)  analyze comparable data available to the chief appraiser to estimate rates of capitalization or rates of discount;  and

(4)  base projections of future rent or income potential and expenses on reasonably clear and appropriate evidence.

(b)  In developing income and expense statements and cash-flow projections, the chief appraiser shall consider:

(1)  historical information and trends;

(2)  current supply and demand factors affecting those trends;  and

(3)  anticipated events such as competition from other similar properties under construction.

Added by Acts 1997, 75th Leg., ch. 1039, Sec. 22, eff. Jan. 1, 1998.  Amended by Acts 2003, 78th Leg., ch. 548, Sec. 1, eff. Jan. 1, 2004.

                  

Sec. 23.013.  MARKET DATA COMPARISON METHOD OF APPRAISAL.  (a)  If the chief appraiser uses the market data comparison method of appraisal to determine the market value of real property, the chief appraiser shall use comparable sales data and shall adjust the comparable sales to the subject property.

(b)  A sale is not considered to be a comparable sale unless the sale occurred within 24 months of the date as of which the market value of the subject property is to be determined, except that a sale that did not occur during that period may be considered to be a comparable sale if enough comparable properties were not sold during that period to constitute a representative sample.

(b-1)  Notwithstanding Subsection (b), for a residential property in a county with a population of more than 150,000, a sale is not considered to be a comparable sale unless the sale occurred within 36 months of the date as of which the market value of the subject property is to be determined, regardless of the number of comparable properties sold during that period.

(c)  A sale of a comparable property must be appropriately adjusted for any change in the market value of the comparable property during the period between the date of the sale of the comparable property and the date as of which the market value of the subject property is to be determined.

(d)  Whether a property is comparable to the subject property shall be determined based on similarities with regard to location, square footage of the lot and improvements, property age, property condition, property access, amenities, views, income, operating expenses, occupancy, and the existence of easements, deed restrictions, or other legal burdens affecting marketability.

Added by Acts 1997, 75th Leg., ch. 1039, Sec. 22, eff. Jan. 1, 1998.  Amended by Acts 1999, 76th Leg., ch. 1295, Sec. 2, eff. Jan. 1, 2000.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1211 (S.B. 771), Sec. 2, eff. January 1, 2010.

Acts 2013, 83rd Leg., R.S., Ch. 611 (S.B. 1256), Sec. 1, eff. January 1, 2014.

                  

Sec. 23.014.  EXCLUSION OF PROPERTY AS REAL PROPERTY.  Except as provided by Section 23.24(b), in determining the market value of real property, the chief appraiser shall analyze the effect on that value of, and exclude from that value the value of, any:

(1)  tangible personal property, including trade fixtures;

(2)  intangible personal property; or

(3)  other property that is not subject to appraisal as real property.

Added by Acts 2003, 78th Leg., ch. 548, Sec. 2, eff. Jan. 1, 2004.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1211 (S.B. 771), Sec. 2, eff. January 1, 2010.

                  

Sec. 23.02.  REAPPRAISAL OF PROPERTY DAMAGED IN DISASTER AREA.  (a)  The governing body of a taxing unit that is located partly or entirely inside an area declared to be a disaster area by the governor may authorize reappraisal of all property damaged in the disaster at its market value immediately after the disaster.

(b)  If a taxing unit authorizes a reappraisal pursuant to this section, the appraisal office shall complete the reappraisal as soon as practicable.  The appraisal office shall include on the appraisal records, in addition to other information required or authorized by law:

(1)  the date of the disaster;

(2)  the appraised value of the property after the disaster;  and

(3)  if the reappraisal is not authorized by all taxing units in which the property is located, an indication of the taxing units to which the reappraisal applies.

(c)  A taxing unit that authorizes a reappraisal under this section must pay the appraisal district all the costs of making the reappraisal.  If two or more taxing units provide for the reappraisal in the same territory, each shall share the costs of the reappraisal in that territory in the proportion the total dollar amount of taxes imposed in that territory in the preceding year bears to the total dollar amount of taxes all units providing for reappraisal of that territory imposed in the preceding year.

(d)  If property damaged in a disaster is reappraised as provided by this section, the governing body shall provide for prorating the taxes on the property for the year in which the disaster occurred.  If the taxes are prorated, taxes due on the property are determined as follows: the taxes on the property based on its value on January 1 of that year are multiplied by a fraction, the denominator of which is 365 and the numerator of which is the number of days before the date the disaster occurred; the taxes on the property based on its reappraised value are multiplied by a fraction, the denominator of which is 365 and the numerator of which is the number of days, including the date the disaster occurred, remaining in the year; and the total of the two amounts is the amount of taxes on the property for the year.

(e)  Repealed by Acts 1983, 68th Leg., p. 4829, ch. 851, Sec. 28, eff. Aug. 29, 1983.

Added by Acts 1981, 67th Leg., 1st C.S., p. 136, ch. 13, Sec. 57, eff. Jan. 1, 1982.  Amended by Acts 1983, 68th Leg., p. 4829, ch. 851, Sec. 28, eff. Aug. 29, 1983.

Amended by:

Acts 2013, 83rd Leg., R.S., Ch. 1259 (H.B. 585), Sec. 13, eff. June 14, 2013.

Acts 2013, 83rd Leg., R.S., Ch. 1259 (H.B. 585), Sec. 14, eff. June 14, 2013.

                  

Sec. 23.03.  COMPILATION OF LARGE PROPERTIES AND PROPERTIES SUBJECT TO LIMITATION ON APPRAISED VALUE.  Each year the chief appraiser shall compile and send to the Texas Department of Economic Development a list of properties in the appraisal district that in that tax year:

(1)  have a market value of $100 million or more;  or

(2)  are subject to a limitation on appraised value under Chapter 313.

Added by Acts 2001, 77th Leg., ch. 1505, Sec. 2, eff. Jan. 1, 2002.
Return to: Texas Property Tax code Table of contents

Flooded by Harvey?

You may qualify for an IRS tax refund.

Click here to get the details!


Commercial Property
Protection Program ™