HBA-GUM H.B. 3052 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3052 By: King, Tracy Ways & Means 4/7/1999 Introduced BACKGROUND AND PURPOSE Current law requires a chief appraiser to consider the three standard methods of appraisal (cost, income, and market data comparison) when determining the market value of property. After consideration, the chief appraiser must use the method the chief appraiser considers most appropriate, thus including in the statute the subjective opinion of the chief appraiser. Some believe that his statutory incorporation of the subjective opinion of the appraiser may preclude a property owner from protesting that the wrong appraisal method was used. Current law requires the chief appraiser to use comparable sales data when using the market data comparison method "if possible." The phrase "if possible" is contradicting with use of the market data comparison method of appraisal, which requires use of comparable sales data. H.B. 3052 requires a chief appraiser to use the most appropriate method of appraisal when determining property value. The bill also requires the chief appraiser to use comparable sales data when using the market value method of appraisal. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 23.0101, Tax Code, to require the chief appraiser to use the most appropriate method, rather than the method the chief appraiser considers most appropriate, in determining the market value of property. SECTION 2. Amends Section 23.013, Tax Code, as follows: Section 23.013. Market Data Comparison Method of Appraisal. Deletes "if possible," thus requiring the chief appraiser to use comparable sales data when using the market data comparison method of appraisal to determine the market value of real property. SECTION 3. Emergency clause. Effective date: upon passage.