State law requires the Texas Comptroller to ensure that the agency’s Property Value Study (PVS) is not adversely affected by differences in the level of appraisal on sold and unsold property. Government Code Section 403.302 sets out the requirements for the PVS.
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Last year, the Comptroller’s Property Tax Division (PTD) changed its procedures for complying with this law that are generally beneficial to school districts, and that use the latest available appraisal information to check for the possibility of unequal appraisal. These procedural changes have a phased-in implementation program, as recommended by a committee of appraisal districts, taxpayers, school districts and other affected parties and agreed to by the Comptroller.
In county appraisal districts (CADs) that test positive for the likelihood of unequal appraisal (commonly called sales chasing), the percentage of PTD’s sample to be replaced with late sales, other sales unavailable to the appraisal district or appraisals is 75 percent. To check for the possibility of unequal appraisal, the PTD will check the current sample in each appraisal district according to the following procedure:
The PTD’s current procedures after testing samples will remain unchanged for the 2002 PVS. CADs may still request the alternate test, and the PTD will rely on it if the PTD receives the data before October 1. Because the testing of the current study sample will require extra work by PTD field staff late in the year when 75 percent sample substitution is required, the PTD must ask that CADs adhere strictly to the October 1 deadline. If you have questions about the alternate test, please call Ben Lindsey with the PTD at 1-800-252-9121, ext. 5-9744. In Austin, call 512/305-9744. For any questions or concerns about the PTD’s property value study, please call Tim Wooten at 1-800-252-9121, extension 5-9838.
- PTD will establish a minimum CAD sales sample size per property category (if the sales exist).
- PTD will gather samples within the normal time frame.
- If no alternate test is available, as each CAD sample is sent to Austin by field staff, supervisors or team leaders use the ratio concentration test to determine whether a 75-percent sample replacement is required (late sales, appraisals, or sales unavailable to the CAD).
- PTD will rely on the alternate test (comparison of average year-to-year value changes) as submitted by a CAD to determine whether a 75-percent sample replacement is required, if the CAD sends the required data by October 1, 2002. This test, if available, takes priority over the ratio concentration test.