HBA-KDB H.B. 2496 77(R)    HBA-KDB H.B. 2496 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2496
By: Haggerty
Ways & Means
4/30/2001
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Under current law, a property owner may be awarded reasonable attorney's
fees if an appraisal district appraises a property's value in excess of its
market value or by appraising a property in an unequal manner when compared
to property owned by other taxpayers.  However, courts do not award
attorney's fees even when appraisal districts violate the law, which may
encourage appraisal districts to litigate without fear of repercussion.
Without the assurance of attorney's fees, property owners may not be able
to afford to take appraisal districts to court.  In addition, taxing units
are currently the only entities that are authorized to bring suits against
appraisal districts who violate the Property Tax Code.  There is some
concern that the powers of an appraisal district or appraisal review board
are not adequately limited.  House Bill 2496 requires reasonable attorney's
fees to be awarded to a property owner who prevails in an appeal to the
court for a remedy for excessive or unequal appraisal, and authorizes
certain persons to sue  the appropriate appraisal district or appraisal
review board for violating the Property Tax Code. 

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. 

ANALYSIS

House Bill 2496 amends the Tax Code to require, rather than authorize, the
award of reasonable attorney's fees, not to exceed $100,000, to a property
owner who prevails in an appeal to the court for a remedy for excessive or
unequal appraisal. 

The bill authorizes a property owner, a lessee of property who is
contractually obligated to pay taxes imposed on the property, or an agent
of a property owner, in addition to a taxing unit, to sue the appropriate
appraisal district or the appraisal review board established for that
appraisal district to compel the appraisal district or appraisal review
board to comply with provisions relating to property taxes, rules of the
comptroller of public accounts, or other applicable law.  The bill requires
the court to award court costs and reasonable attorney's fees to a
plaintiff who prevails in such a suit. 

EFFECTIVE DATE

September 1, 2001.

EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 restores current law to authorize the award of
reasonable attorney's fees, not to exceed $100,000, to a property owner who
prevails in an appeal to the court for a remedy for excessive or unequal
appraisal.  The amendment removes the proposed authorization of a lessee of
property who is contractually obligated to pay taxes  imposed on the
property, an agent of a property owner, or such a person's representative
to sue the appropriate appraisal district or the appraisal review board
established for that appraisal district to compel the appraisal district or
appraisal review board to  comply with specified provisions.  The amendment
authorizes, rather than requires, the court to award court costs and
reasonable attorney's fees to a plaintiff who prevails in such a suit.