Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 9 - PROPERTY TAX ADMINISTRATION › Subchapter A - PRACTICE AND PROCEDURE › Section 9.101 - Conduct of the Property Value Study

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Definitions. The following words and terms, when used in this subchapter, shall
				  have the following meanings, unless the context clearly indicates otherwise.
(1) Appraisal--A statement that estimates the
				  market value or other legally required value of property.
(2) Appraisal ratio--The ratio of a
				  property's appraised value as determined by the appraisal office or appraisal
				  review board (the County Appraisal District (CAD)) value, as applicable to:
(A) the sale price of the property;
				  or
(B) an independent appraisal of
				  the property, as applicable.
(3) Appraiser--A comptroller employee or
				  contractor who conducts appraisals for the property value study.
(4) Assigned value--The value of property
				  determined in the property value study.
(5) Coefficient of dispersion--The absolute
				  average deviation of appraisal ratios in a sample from the median appraisal
				  ratio for the sample, expressed as a percentage of the median.
(6) Comptroller--The Comptroller of Public
				  Accounts or the Comptroller of Public Accounts' designee.
(7) Confirm--A sale is confirmed when the
				  comptroller has documented that the sale price for a property is
				  correct.
(8) Documentary
				  evidence--Writings such as letters, memoranda, appraisal records, or
				  deeds.
(9) Local property--Property
				  other than utility, industrial, mineral, or 1-d or 1-d-1 qualified agricultural
				  property.
(10) Median appraisal
				  ratio--The median level of appraisal is the median appraisal ratio of a sample
				  of properties collected as part of the school district taxable value study in
				  an appraisal district. The median appraisal ratio for a sample of properties
				  is, in a numerically ordered list of the appraisal ratios for the properties:
(A) if the sample contains an odd number of
				  properties, the appraisal ratio above and below which there is an equal number
				  of appraisal ratios in the list; or
(B) if the sample contains an even number of
				  properties, the average of the two consecutive appraisal ratios above and below
				  which there is an equal number of appraisal ratios in the list.
(11) Price related
				  differential--The price related differential is the mean of a property sample
				  divided by the weighted mean of that sample.
(12) Property value study--The studies
				  conducted by the comptroller in alternating or consecutive years pursuant to
				  Government Code, §
											403.302
				  and Tax Code, §
											5.10, according to
				  a coordinated schedule that ensures that CAD reviews required by Tax Code,
				  §
											5.102
				  are conducted in years in which the studies of school districts within the CAD
				  are not performed, except when consecutive year studies are mandated. The
				  schedule of alternating studies and CAD reviews shall be determined by the
				  comptroller.
(13) Random sample--A
				  sample in which each item of the population has an equal chance of being
				  included.
(14) Representative
				  sample--Representative means composed of individual properties that
				  collectively reflect the individual characteristics of the population from
				  which they were drawn. A representative sample meets the requirements for
				  operational representativeness set forth in the International Association of
				  Assessing Officers' Standard on Ratio Studies.
(15) Sale--A transfer of property for
				  consideration.
(16) Sale date--The
				  date on which a deed or other document transferring title to real property by
				  sale is executed.
(17) Sample--A
				  group of properties analyzed to determine characteristics of property in a
				  school or appraisal district.
(18)
				  School district split--Each portion of a school district located in different
				  counties where properties are appraised by different appraisal
				  districts.
(19)
				  Stratification--Stratification divides the range of information for property in
				  a district or property category into intervals and lists the number and CAD
				  value of properties falling into each interval.
(20) Stratified weighted mean appraisal
				  ratio--A stratified weighted mean appraisal ratio is calculated by separating
				  the properties in a category sample into subcategories by value range or other
				  property characteristics (strata) and determining the weighted mean appraisal
				  ratio for each of the strata. The value of property in each of the strata is
				  calculated by dividing the total CAD value by the weighted mean appraisal
				  ratio. These individual market value estimates are then added to produce a
				  market value estimate for the total category sample. The total CAD value of
				  property in the category is then divided by the total category market value
				  estimate to produce the stratified weighted mean ratio.
(21) Verify--A sale is verified when the
				  comptroller has documented that a sale is a market value transaction as defined
				  by Tax Code, §
											1.04(7).
(22) Weighted mean appraisal ratio--The
				  weighted mean appraisal ratio is a number calculated by dividing the total CAD
				  value of property in a sample by the total of corresponding sale prices or
				  appraised values of property in that sample.