H.B. No. 1038
 
 
 
 
AN ACT
  relating to the determination of the market value of a residence
  homestead for purposes of ad valorem taxation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 23.01, Tax Code, is amended by adding
  Subsection (c) to read as follows:
         (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.
         SECTION 2.  This Act takes effect January 1, 2010.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1038 was passed by the House on March
  31, 2009, by the following vote:  Yeas 144, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1038 was passed by the Senate on May
  26, 2009, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor