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A BILL TO BE ENTITLED
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AN ACT
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relating to the system for appraising property for ad valorem tax |
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purposes; creating a criminal offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 5.103, Tax Code, is amended by amending |
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Subsection (d) and adding Subsection (e) to read as follows: |
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(d) An appraisal review board shall incorporate [follow] |
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the model hearing procedures prepared by the comptroller when |
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adopting the board's [establishing its] procedures for hearings as |
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required by Section 41.01(c). An appraisal review board may adopt |
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procedures that supplement the model hearing procedures, provided |
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that the supplemental procedures do not contradict or circumvent |
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the model hearing procedures. |
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(e) Each year the comptroller shall review the hearing |
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procedures adopted by each appraisal review board to determine |
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whether the hearing procedures incorporate the model hearing |
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procedures prepared by the comptroller under this section |
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[41.66(a)]. |
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SECTION 2. Section 5.104(l), Tax Code, is amended to read as |
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follows: |
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(l) The comptroller shall issue an annual report that |
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summarizes the information included in the surveys submitted during |
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the preceding tax year. The report must also include a summary of |
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the comments, complaints, and suggestions forwarded to the |
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comptroller during the preceding tax year by taxpayer liaison |
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officers under Section 6.052(a), the results of the comptroller's |
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review of appraisal review board hearing procedures during the |
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preceding tax year under Section 5.103(e), and the results of |
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requests for limited binding arbitration filed with the comptroller |
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during the preceding tax year under Section 41A.015. The report may |
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not disclose the identity of an individual who submitted a survey, |
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comment, complaint, suggestion, or request for arbitration. |
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SECTION 3. Section 6.04(d), Tax Code, is amended to read as |
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follows: |
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(d) The board shall develop and implement policies that |
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provide the public with reasonable opportunity to appear before the |
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board to speak on any issue under the jurisdiction of the board. |
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Reasonable time shall be provided during each board meeting for |
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public comment on appraisal district and appraisal review board |
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policies and procedures, and a report from the taxpayer liaison |
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officer [if one is required by Section 6.052]. |
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SECTION 4. Section 6.052, Tax Code, is amended by amending |
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Subsections (a), (b), and (c) and adding Subsection (g) to read as |
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follows: |
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(a) The board of directors for an appraisal district |
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[created for a county with a population of more than 120,000] shall |
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appoint a taxpayer liaison officer who shall serve at the pleasure |
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of the board. The taxpayer liaison officer shall administer the |
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public access functions required by Sections 6.04(d), (e), and (f), |
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and is responsible for resolving disputes not involving matters |
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that may be protested under Section 41.41. In addition, the |
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taxpayer liaison officer is responsible for receiving, and |
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compiling a list of, comments, complaints, and suggestions filed by |
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the chief appraiser, a property owner, or a property owner's agent |
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concerning the matters listed in Section 5.103(b) or any other |
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matter related to the fairness and efficiency of the appraisal |
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review board established for the appraisal district. The taxpayer |
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liaison officer shall forward to the comptroller comments, |
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complaints, and suggestions filed under this subsection in the form |
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and manner prescribed by the comptroller not later than December 31 |
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of each year. A person may serve as the taxpayer liaison officer |
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for more than one appraisal district if each appraisal district for |
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which the person is appointed to serve as taxpayer liaison officer |
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is established for a county with a population of less than 120,000. |
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(b) The taxpayer liaison officer shall provide to the public |
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information and materials designed to assist property owners in |
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understanding the appraisal process, protest procedures, the |
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procedure for filing comments, complaints, and suggestions under |
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Subsection (a) of this section or a complaint under Section |
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6.04(g), and other matters. Information concerning the process for |
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submitting comments, complaints, and suggestions to the |
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comptroller concerning an appraisal review board shall be provided |
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at each protest hearing. |
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(c) The taxpayer liaison officer shall report to the board |
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at each meeting on the status of all comments, complaints, and |
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suggestions filed with the officer under Subsection (a) of this |
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section and all complaints filed with the board under Section |
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6.04(g). |
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(g) Notwithstanding any other provision of this chapter, a |
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taxpayer liaison officer does not commit an offense under this |
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chapter if the officer communicates with the chief appraiser or |
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another employee or agent of the appraisal district, a member of the |
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appraisal review board established for the appraisal district, a |
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member of the board of directors of the appraisal district, a |
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property tax consultant, a property owner, an agent of a property |
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owner, or another person if the communication is made in the good |
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faith exercise of the officer's statutory duties. |
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SECTION 5. Subchapter A, Chapter 6, Tax Code, is amended by |
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adding Section 6.155 to read as follows: |
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Sec. 6.155. CERTAIN COMMUNICATIONS BY TAXING UNITS |
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PROHIBITED; PENALTY. (a) A member of the governing body, officer, |
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or employee of a taxing unit commits an offense if the person |
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directly or indirectly communicates with the chief appraiser or |
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another employee of the appraisal district in which the taxing unit |
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participates for the purpose of influencing the value at which |
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property in the district is appraised. |
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(b) An offense under this section is a state jail felony. |
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SECTION 6. Section 11.253(a)(2), Tax Code, is amended to |
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read as follows: |
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(2) "Goods-in-transit" means tangible personal |
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property that: |
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(A) is acquired in or imported into this state to |
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be forwarded to another location in this state or outside this |
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state; |
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(B) is stored under a contract of bailment by a |
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public warehouse operator at one or more public warehouse |
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facilities in this state that are not in any way owned or controlled |
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by the owner of the personal property for the account of the person |
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who acquired or imported the property; |
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(C) is transported to another location in this |
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state or outside this state not later than 175 days, or, if |
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applicable, the greater number of days adopted by the taxing unit as |
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authorized by Subsection (l), after the date the person acquired |
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the property in or imported the property into this state; and |
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(D) does not include oil, natural gas, petroleum |
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products, aircraft, dealer's motor vehicle inventory, dealer's |
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vessel and outboard motor inventory, dealer's heavy equipment |
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inventory, or retail manufactured housing inventory. |
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SECTION 7. Section 11.253, Tax Code, is amended by amending |
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Subsections (e) and (g) and adding Subsection (l) to read as |
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follows: |
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(e) In determining the market value of goods-in-transit |
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that in the preceding year were stored in this state, the chief |
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appraiser shall exclude the cost of equipment, machinery, or |
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materials that entered into and became component parts of the |
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goods-in-transit but were not themselves goods-in-transit or that |
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were not transported to another location in this state or outside |
|
this state before the expiration of 175 days, or, if applicable, the |
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greater number of days adopted by the taxing unit as authorized by |
|
Subsection (l), after the date they were brought into this state by |
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the property owner or acquired by the property owner in this state. |
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For component parts held in bulk, the chief appraiser may use the |
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average length of time a component part was held by the owner of the |
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component parts during the preceding year at a location in this |
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state that was not owned by or under the control of the owner of the |
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component parts in determining whether the component parts were |
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transported to another location in this state or outside this state |
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before the expiration of 175 days, or, if applicable, the greater |
|
number of days adopted by the taxing unit as authorized by |
|
Subsection (l). |
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(g) If the property owner or the chief appraiser |
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demonstrates that the method provided by Subsection (d) |
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significantly understates or overstates the market value of the |
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property qualified for an exemption under Subsection (b) in the |
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current year, the chief appraiser shall determine the market value |
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of the goods-in-transit to be exempt by determining, according to |
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the property owner's records and any other available information, |
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the market value of those goods-in-transit owned by the property |
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owner on January 1 of the current year, excluding the cost of |
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equipment, machinery, or materials that entered into and became |
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component parts of the goods-in-transit but were not themselves |
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goods-in-transit or that were not transported to another location |
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in this state or outside this state before the expiration of 175 |
|
days, or, if applicable, the greater number of days adopted by the |
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taxing unit as authorized by Subsection (l), after the date they |
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were brought into this state by the property owner or acquired by |
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the property owner in this state. |
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(l) This subsection applies only to a taxing unit any part |
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of which is located in an area designated a disaster area by a |
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disaster declaration issued under Section 418.014 or 418.108, |
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Government Code, that has not expired or otherwise been terminated. |
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The governing body of a taxing unit, in the manner provided by law |
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for official action, may extend the date by which goods-in-transit |
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must be transported to another location in this state or outside |
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this state to a date not later than the 270th day after the date the |
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person acquired the property in or imported the property into this |
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state. An extension adopted by official action under this |
|
subsection applies only to: |
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(1) the exemption from ad valorem taxation by the |
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taxing unit adopting the extension; and |
|
(2) the tax year in which the extension is adopted. |
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SECTION 8. Section 23.55, Tax Code, is amended by adding |
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Subsections (e-1) and (r) to read as follows: |
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(e-1) A property owner may request in writing that the chief |
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appraiser determine whether a change of use of the property owner's |
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land has occurred. The request must state the manner in which the |
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property owner is currently using the land. Not later than the 90th |
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day after the date the chief appraiser receives the request, the |
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chief appraiser shall provide the property owner with a written |
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determination that includes a description of the current use of the |
|
land and a statement as to whether the current use of the land has |
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resulted in a change of use of the land. If the chief appraiser |
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determines that a change of use of the land has not occurred, the |
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chief appraiser may not later determine that a change of use of the |
|
land has occurred on the basis of the use described in the written |
|
determination. |
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(r) The sanctions provided by Subsection (a) do not apply to |
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a change in the use of land if, after the change in use, the physical |
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characteristics of the land remain consistent with the physical |
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characteristics of the land during the period for which the land was |
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eligible for appraisal under this subchapter. |
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SECTION 9. Section 25.02, Tax Code, is amended by adding |
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Subsections (c), (d), (e), and (f) to read as follows: |
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(c) Each appraisal record must have a unique account number. |
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If an appraisal district changes the account number of an appraisal |
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record, the appraisal district must provide written notice of the |
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change to the property owner as soon as practicable after the change |
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and provide notice of the change in the next notice of appraised |
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value of the property included in the record that is delivered to |
|
the property owner under Section 25.19. |
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(d) This subsection does not apply to an appraisal record |
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for a residential property, for an improvement only, or for a |
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property on which a delinquent tax is due. On the written request |
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of a property owner, the chief appraiser shall combine contiguous |
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parcels or tracts of the owner's real property into a single |
|
appraisal record. On the written request of a property owner, the |
|
chief appraiser shall separate identifiable segments of the owner's |
|
parcel or tract of real property into individual appraisal records. |
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(e) A property owner must make a request under Subsection |
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(d) before January 1 of the tax year for which the requested change |
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to the appraisal records is to be made. The request must contain a |
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legal description as contained in a deed sufficient to describe the |
|
property subject to the request. |
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(f) If a chief appraiser refuses to combine parcels or |
|
tracts, or separate a parcel or tract, on request of a property |
|
owner under Subsection (d), the appraisal review board may order |
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the requested change on a motion filed by the property owner under |
|
Section 25.25 or a protest filed under Chapter 41. |
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SECTION 10. Section 25.19, Tax Code, is amended by adding |
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Subsections (m) and (n) to read as follows: |
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(m) The chief appraiser may not deliver a corrected or |
|
amended notice of appraised value later than June 1 for property for |
|
which a person files a rendition statement or property report as |
|
required by Chapter 22 unless the purpose of the notice is to: |
|
(1) include omitted property; or |
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(2) correct a clerical error. |
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(n) As soon as practicable after delivering a notice |
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required by this section to a property owner, the chief appraiser |
|
shall post the notice on the appraisal district's Internet website, |
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if the appraisal district maintains a website, as part of the |
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appraisal record pertaining to the property. |
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SECTION 11. Section 31.11(h), Tax Code, is amended to read |
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as follows: |
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(h) This section does not apply to an overpayment caused by |
|
a change of exemption status or correction of a tax roll, including |
|
an overpayment received after a correction of a tax roll as a result |
|
of an appeal under Chapter 42. Such an overpayment is covered by |
|
Section 26.15 or 42.43, as applicable. |
|
SECTION 12. Section 41.01, Tax Code, is amended by adding |
|
Subsections (c), (d), and (e) to read as follows: |
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(c) The appraisal review board by rule shall adopt |
|
procedures for hearings the board conducts under this subchapter |
|
and Subchapter C. Before adopting the hearing procedures, the |
|
board shall hold a public hearing to consider the hearing |
|
procedures proposed for adoption by the board. Not later than May |
|
15 of each year, the board shall hold the hearing, make any |
|
amendments to the proposed hearing procedures the board determines |
|
are necessary, and by resolution finally adopt the hearing |
|
procedures. The board must comply with Section 5.103(d) when |
|
adopting the hearing procedures. The chairman of the board has |
|
exclusive authority over the administration of hearing procedures |
|
adopted by the board. |
|
(d) The appraisal review board shall distribute copies of |
|
the hearing procedures adopted by the board to the board of |
|
directors of, and the taxpayer liaison officer for, the appraisal |
|
district for which the appraisal review board is established and to |
|
the comptroller not later than the 15th day after the date the board |
|
adopts the hearing procedures. |
|
(e) The appraisal review board shall post a copy of the |
|
hearing procedures adopted by the board: |
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(1) in a prominent place in each room in which the |
|
board conducts hearings under this subchapter and Subchapter C; and |
|
(2) if the appraisal district for which the board is |
|
established maintains an Internet website, on the appraisal |
|
district's website. |
|
SECTION 13. Section 41.44(d), Tax Code, is amended to read |
|
as follows: |
|
(d) A notice of protest is sufficient if it identifies the |
|
protesting property owner, including a person claiming an ownership |
|
interest in the property even if that person is not listed on the |
|
appraisal records as an owner of the property, identifies the |
|
property that is the subject of the protest, and indicates apparent |
|
dissatisfaction with some determination of the appraisal |
|
office. The notice need not be on an official form, but the |
|
comptroller shall prescribe a form that provides for more detail |
|
about the nature of the protest. The form must permit a property |
|
owner to include each property in the appraisal district that is the |
|
subject of a protest. The form must permit a property owner to |
|
request that the protest be heard by a special panel established |
|
under Section 6.425 if the protest will be determined by an |
|
appraisal review board to which that section applies and the |
|
property is included in a classification described by Section |
|
6.425(b). The form must permit a property owner to request that the |
|
protest be heard by a single-member panel authorized by Section |
|
41.45(b-4). The comptroller, each appraisal office, and each |
|
appraisal review board shall make the forms readily available and |
|
deliver one to a property owner on request. |
|
SECTION 14. Subchapter C, Chapter 41, Tax Code, is amended |
|
by adding Section 41.445 to read as follows: |
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Sec. 41.445. INFORMAL CONFERENCE BEFORE HEARING ON PROTEST. |
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(a) The appraisal review board shall schedule an informal |
|
conference with the appraisal office for each property owner who |
|
files a notice of protest with the board, to be held before the |
|
hearing on the protest. Notice of the date, time, and location of |
|
the informal conference shall be delivered to the property owner |
|
with the notice of protest hearing required under Section 41.46. |
|
(b) Except as provided by Subsection (c), the informal |
|
conference may not be scheduled to be held on the same day on which |
|
the hearing on the protest is scheduled to be held or during the |
|
five-day period preceding that date. |
|
(c) On request made in writing by the property owner to the |
|
appraisal office with good cause shown, the appraisal office shall |
|
reschedule the informal conference for a later date that is before |
|
the date of the hearing on the protest. The rescheduling of the |
|
informal conference under this subsection does not require the |
|
delivery of additional written notice to the property owner. The |
|
appraisal office may reschedule the informal conference for a date |
|
during the five-day period described by Subsection (b) with the |
|
property owner's consent. |
|
(d) The appraisal office shall cancel the informal |
|
conference if the property owner informs the appraisal office, in |
|
writing, that the property owner elects not to participate in the |
|
conference. |
|
(e) The property owner's failure to appear at the informal |
|
conference does not prevent the appraisal review board from hearing |
|
the protest and issuing an order determining the protest. |
|
SECTION 15. Section 41.45(b-1), Tax Code, is amended to |
|
read as follows: |
|
(b-1) An appraisal review board shall conduct a hearing on a |
|
protest by telephone conference call if [: |
|
[(1)] the property owner notifies the board that the |
|
property owner intends to appear by telephone conference call in |
|
the owner's notice of protest or by written notice filed with the |
|
board not later than the 10th day before the date of the hearing [; |
|
or |
|
[(2) the board proposes that the hearing be conducted |
|
by telephone conference call and the property owner agrees to the |
|
hearing being conducted in that manner]. |
|
SECTION 16. Section 41.45, Tax Code, is amended by adding |
|
Subsections (b-4) and (b-5) and amending Subsections (d), (d-2), |
|
and (d-3) to read as follows: |
|
(b-4) An appraisal review board shall sit in a single-member |
|
panel to conduct a protest hearing under this section if the |
|
property owner requests that the hearing be conducted by a |
|
single-member panel: |
|
(1) in the notice of protest; or |
|
(2) in writing submitted to the board not later than |
|
the 10th day before the date of the hearing. |
|
(b-5) If the recommendation of a single-member panel that |
|
conducts a hearing under Subsection (b-4) is not accepted by the |
|
appraisal review board, the board may refer the matter for |
|
rehearing to a single-member panel composed of a member who did not |
|
hear the original protest or the board may determine the protest. |
|
(d) This subsection does not apply to a single-member panel |
|
established under Subsection (b-4) of this section or a special |
|
panel established under Section 6.425. An appraisal review board |
|
consisting of more than three members may sit in panels of not fewer |
|
than three members to conduct protest hearings. If the |
|
recommendation of a panel is not accepted by the board, the board |
|
may refer the matter for rehearing to a panel composed of members |
|
who did not hear the original protest or, if there are not at least |
|
three members who did not hear the original protest, the board may |
|
determine the protest. |
|
(d-2) The determination of a protest heard by a panel under |
|
Subsection (b-4), (d), or (d-1) must be made by the board. |
|
(d-3) The board must deliver notice of a hearing or meeting |
|
to determine a protest heard by a panel, or to rehear a protest, |
|
under Subsection (b-4), (d), or (d-1) in accordance with the |
|
provisions of this subchapter. |
|
SECTION 17. Section 41.461(a), Tax Code, is amended to read |
|
as follows: |
|
(a) At least 14 days before a hearing on a protest, the chief |
|
appraiser shall: |
|
(1) deliver a copy of the pamphlet prepared by the |
|
comptroller under Section 5.06 to the property owner initiating the |
|
protest, or to an agent representing the owner if requested by the |
|
agent; |
|
(2) inform the property owner that the owner or the |
|
agent of the owner is entitled on request to a copy of the data, |
|
schedules, formulas, and all other information the chief appraiser |
|
will introduce at the hearing to establish any matter at issue; and |
|
(3) deliver a copy of the hearing procedures adopted |
|
[established] by the appraisal review board under Section 41.01 |
|
[41.66] to the property owner. |
|
SECTION 18. Section 41.47, Tax Code, is amended by amending |
|
Subsection (c) and adding Subsection (d-1) to read as follows: |
|
(c) If the protest is of the determination of the appraised |
|
value of the owner's property, the appraisal review board must |
|
state in the order the appraised value of the property, listed |
|
separately in the case of real property as the appraised value of |
|
the land and the appraised value of any improvement to the land as |
|
allocated by the chief appraiser: |
|
(1) as shown in the appraisal records submitted to the |
|
board by the chief appraiser under Section 25.22 or 25.23; and |
|
(2) as finally determined by the board. |
|
(d-1) This subsection applies only to an appraisal district |
|
established in a county with a population of 120,000 or more. The |
|
requirements of this subsection are in addition to the requirements |
|
of Subsection (d). On written request submitted to the chief |
|
appraiser, the chief appraiser shall deliver by e-mail, in the |
|
manner provided by this subsection, a copy of the notice of issuance |
|
of the order and a copy of the order required by Subsection (d) if |
|
the property subject to the order is not the subject of an agreement |
|
under Section 1.085. A request under this subsection may be |
|
submitted only by the property owner whose property is subject to |
|
the protest for which the order is issued, an attorney representing |
|
the property owner, or an individual designated by the property |
|
owner under Section 1.111. A person may include in a single request |
|
more than one property owned by the same property owner or multiple |
|
properties owned by multiple property owners. A person may submit |
|
more than one request. A person submitting a request must indicate |
|
in the request that the chief appraiser must make the delivery to |
|
the property owner, an attorney representing the property owner, an |
|
individual designated by the property owner under Section 1.111, or |
|
a combination of those persons. A person must submit a request |
|
before the protest hearing relating to each property included in |
|
the request. The chief appraiser shall deliver, as provided by this |
|
subsection, a copy of the notice of issuance of the order and a copy |
|
of the order required by Subsection (d) not later than the 21st day |
|
after the date the appraisal review board issues the order. |
|
SECTION 19. Section 41.66, Tax Code, is amended by amending |
|
Subsection (a) and adding Subsection (q) to read as follows: |
|
(a) The appraisal review board shall conduct hearings in |
|
accordance with the hearing procedures adopted by the appraisal |
|
review board under Section 41.01(c) [establish by rule the |
|
procedures for hearings it conducts as provided by Subchapters A |
|
and C of this chapter]. On request made by a property owner in the |
|
owner's notice of protest or in a separate writing delivered to the |
|
appraisal review board on or before the date the notice of protest |
|
is filed, the property owner is entitled to a copy of the hearing |
|
procedures. The copy of the hearing procedures shall be delivered |
|
to the property owner not later than the 10th day before the date |
|
the hearing on the protest begins and may be delivered with the |
|
notice of the protest hearing required under Section 41.46(a). The |
|
notice of protest form prescribed by the comptroller under Section |
|
41.44(d) or any other notice of protest form made available to a |
|
property owner by the appraisal review board or the appraisal |
|
office shall provide the property owner an opportunity to make or |
|
decline to make a request under this subsection. [The appraisal |
|
review board shall post a copy of the hearing procedures in a |
|
prominent place in the room in which the hearing is held.] |
|
(q) A person who owns property in an appraisal district or |
|
the chief appraiser of an appraisal district may file a complaint |
|
with the taxpayer liaison officer for the appraisal district |
|
alleging that the appraisal review board established for the |
|
appraisal district has adopted or is implementing hearing |
|
procedures that are not in compliance with the model hearing |
|
procedures prepared by the comptroller under Section 5.103 or is |
|
not complying with procedural requirements under this chapter. The |
|
taxpayer liaison officer shall investigate the complaint and report |
|
the findings of the investigation to the board of directors of the |
|
appraisal district. The board of directors shall direct the |
|
chairman of the appraisal review board to take remedial action if, |
|
after reviewing the taxpayer liaison officer's report, the board of |
|
directors determines that the allegations contained in the |
|
complaint are true. The board of directors may remove the member of |
|
the appraisal review board serving as chairman of the appraisal |
|
review board from that member's position as chairman if the board |
|
determines that the chairman has failed to take the actions |
|
necessary to bring the appraisal review board into compliance with |
|
Section 5.103(d) or this chapter, as applicable. |
|
SECTION 20. Chapter 41A, Tax Code, is amended by adding |
|
Section 41A.015 to read as follows: |
|
Sec. 41A.015. LIMITED BINDING ARBITRATION TO COMPEL |
|
COMPLIANCE WITH CERTAIN PROCEDURAL REQUIREMENTS RELATED TO |
|
PROTESTS. (a) A property owner who has filed a notice of protest |
|
under Chapter 41 may file a request for limited binding arbitration |
|
under this section to compel the appraisal review board or chief |
|
appraiser, as appropriate, to: |
|
(1) rescind procedural rules adopted by the appraisal |
|
review board that are not in compliance with the model hearing |
|
procedures prepared by the comptroller under Section 5.103; |
|
(2) schedule a hearing on a protest as required by |
|
Section 41.45; |
|
(3) deliver information to the property owner in the |
|
manner required by Section 41.461; |
|
(4) allow the property owner to offer evidence, |
|
examine or cross-examine witnesses or other parties, and present |
|
arguments as required by Section 41.66(b); |
|
(5) set a hearing for a time and date certain and |
|
postpone a hearing that does not begin within two hours of the |
|
scheduled time as required by Section 41.66(i); |
|
(6) schedule hearings on protests concerning multiple |
|
properties identified in the same notice of protest on the same day |
|
at the request of the property owner or the property owner's |
|
designated agent as required by Section 41.66(j); or |
|
(7) refrain from using or offering as evidence |
|
information requested by the property owner under Section 41.461 |
|
that was not delivered to the property owner at least 14 days before |
|
the hearing as required by Section 41.67(d). |
|
(b) A property owner may not file a request for limited |
|
binding arbitration under this section unless: |
|
(1) the property owner has delivered written notice to |
|
the chairman of the appraisal review board, the chief appraiser, |
|
and the taxpayer liaison officer for the applicable appraisal |
|
district by certified mail, return receipt requested, of the |
|
procedural requirement with which the property owner alleges the |
|
appraisal review board or chief appraiser failed to comply on or |
|
before the fifth business day after the date the appraisal review |
|
board or chief appraiser was required to comply with the |
|
requirement; and |
|
(2) the chairman of the appraisal review board or |
|
chief appraiser, as applicable, fails to deliver to the property |
|
owner on or before the 10th day after the date the notice is |
|
delivered a written statement confirming that the appraisal review |
|
board or chief appraiser, as applicable, will comply with the |
|
requirement or cure a failure to comply with the requirement. |
|
(c) Except as otherwise provided by this subtitle, the |
|
failure to comply with a procedural requirement listed under |
|
Subsection (a) is not a ground for postponement of a hearing on a |
|
protest. An appraisal review board may cure an alleged failure to |
|
comply with a procedural requirement that occurred during a hearing |
|
by rescinding the order determining the protest for which the |
|
hearing was held and scheduling a new hearing on the protest. |
|
(d) A property owner must request limited binding |
|
arbitration under this section by filing a request with the |
|
comptroller. The property owner may not file the request earlier |
|
than the 11th day or later than the 30th day after the date the |
|
property owner delivers the notice required by Subsection (b)(1) to |
|
the chairman of the appraisal review board, the chief appraiser, |
|
and the taxpayer liaison officer for the applicable appraisal |
|
district. |
|
(e) A request for limited binding arbitration under this |
|
section must be in a form prescribed by the comptroller and be |
|
accompanied by an arbitration deposit payable to the comptroller in |
|
the amount of: |
|
(1) $450, if the property that is the subject of the |
|
protest to which the arbitration relates qualifies as the property |
|
owner's residence homestead under Section 11.13 and the appraised |
|
or market value, as applicable, of the property is $500,000 or less, |
|
as determined by the appraisal district for the most recent tax |
|
year; or |
|
(2) $550, for property other than property described |
|
by Subdivision (1). |
|
(f) The comptroller shall prescribe the form to be used for |
|
submitting a request for limited binding arbitration under this |
|
section. The form must require the property owner to provide: |
|
(1) a statement that the property owner has provided |
|
the written notice required by Subsection (b); |
|
(2) a statement that the property owner has made the |
|
arbitration deposit required by this section; |
|
(3) a brief statement identifying the procedural |
|
requirement with which the property owner alleges the appraisal |
|
review board or chief appraiser, as applicable, has failed to |
|
comply; |
|
(4) a description of the action taken or not taken by |
|
the appraisal review board or chief appraiser regarding the |
|
procedural requirement identified under Subdivision (3); |
|
(5) a description of the property to which the award |
|
will apply; and |
|
(6) any other information reasonably necessary for the |
|
comptroller to appoint an arbitrator. |
|
(g) On receipt of the request and deposit under this |
|
section, the comptroller shall appoint an arbitrator from the |
|
registry maintained under Section 41A.06 who is eligible to serve |
|
as an arbitrator under Subsection (p) of this section. Section |
|
41A.07(h) does not apply to the appointment of an arbitrator under |
|
this section. |
|
(h) The appraisal review board, the chief appraiser, and the |
|
property owner are parties to a limited binding arbitration |
|
conducted under this section. The appraisal review board may |
|
appear by counsel, by the chairman, or by a person designated by the |
|
chairman. The chief appraiser may appear by counsel, in person, or |
|
by a designated employee. The property owner may appear in the |
|
manner provided by Section 41A.08(b)(2), (3), (4), or (5). |
|
(i) The arbitrator shall make an arbitration award and |
|
deliver an electronic copy of the award to: |
|
(1) the property owner; |
|
(2) the chairman of the appraisal review board; |
|
(3) the chief appraiser; and |
|
(4) the comptroller. |
|
(j) An award under this section: |
|
(1) shall include a determination of whether the |
|
appraisal review board or chief appraiser failed to comply with a |
|
procedural requirement as alleged in the request for limited |
|
binding arbitration; |
|
(2) if the arbitrator determines that the appraisal |
|
review board or chief appraiser failed to comply with a procedural |
|
requirement as alleged in the request, shall direct the appraisal |
|
review board or chief appraiser, as applicable, to: |
|
(A) comply with the procedural requirement; or |
|
(B) if the hearing on the protest has been held |
|
and the appraisal review board has issued an order determining the |
|
protest, rescind the order and hold a new hearing on the protest |
|
that complies with the procedural requirement; |
|
(3) shall specify the arbitrator's fee; |
|
(4) is final and may not be appealed; and |
|
(5) is enforceable as provided by Section 41A.09. |
|
(k) If the arbitrator determines that the appraisal review |
|
board or chief appraiser failed to comply with the procedural |
|
requirement that was the subject of the limited binding |
|
arbitration: |
|
(1) the comptroller, on receipt of a copy of the award, |
|
shall refund the property owner's arbitration deposit, less the |
|
amount retained by the comptroller under Section 41A.05(b); and |
|
(2) the appraisal district shall pay the arbitrator's |
|
fee. |
|
(l) If the arbitrator determines that the appraisal review |
|
board or chief appraiser complied with the procedural requirement |
|
that was the subject of the limited binding arbitration, the |
|
comptroller shall: |
|
(1) pay the arbitrator's fee out of the owner's |
|
arbitration deposit; and |
|
(2) refund to the owner the owner's arbitration |
|
deposit, less the arbitrator's fee and the amount retained by the |
|
comptroller under Section 41A.05(b). |
|
(m) As soon as practicable after receiving notice of an |
|
award, the appraisal review board or the chief appraiser shall: |
|
(1) take any action required to comply with the |
|
requirements of the award; and |
|
(2) if the award requires the appraisal review board |
|
to conduct a new hearing under Chapter 41, schedule and conduct the |
|
hearing. |
|
(n) An award under this section does not affect the property |
|
owner's right to: |
|
(1) appeal the final determination of a protest by the |
|
appraisal review board under Chapter 42; or |
|
(2) pursue any other legal or statutory remedy |
|
available to the property owner. |
|
(o) A property owner may request a single limited binding |
|
arbitration under this section that covers more than one property, |
|
more than one protest hearing, or an allegation of the failure by |
|
the appraisal review board or chief appraiser to comply with more |
|
than one procedural requirement so long as the requirements of |
|
Subsection (b) are met with regard to each alleged failure to |
|
comply. The amount of the arbitration deposit and the amount of the |
|
arbitrator's fee are computed as if a single property were the |
|
subject of the arbitration. If the arbitration involves property |
|
described by Subsection (e)(1) and property described by Subsection |
|
(e)(2), the amount of the arbitration deposit and the amount of the |
|
arbitrator's fee are computed as if only the property described by |
|
Subsection (e)(2) were the subject of the arbitration. If the |
|
arbitration involves an allegation of the failure by the appraisal |
|
review board or chief appraiser to comply with more than one |
|
procedural requirement, Subsection (k) applies if the arbitrator |
|
determines that the appraisal review board or chief appraiser |
|
failed to comply with one or more of the procedural requirements |
|
that were the subject of the arbitration and Subsection (l) applies |
|
if the arbitrator determines that the appraisal review board or |
|
chief appraiser complied with all of the procedural requirements |
|
that were the subject of the arbitration. |
|
(p) Section 41A.06 applies to the registration and |
|
qualification of an arbitrator under this section except that an |
|
arbitrator under this section must: |
|
(1) be a licensed attorney; and |
|
(2) agree to conduct an arbitration for a fee that is |
|
not more than: |
|
(A) $400 if the property is described by |
|
Subsection (e)(1); or |
|
(B) $500 if the property is described by |
|
Subsection (e)(2). |
|
(q) Except as otherwise provided by this section, the |
|
provisions of this chapter apply to a limited binding arbitration |
|
under this section. In the event of a conflict between this section |
|
and another provision of this chapter, this section controls. |
|
SECTION 21. Section 42.01, Tax Code, is amended by adding |
|
Subsection (a-1) to read as follows: |
|
(a-1) A property owner may not appeal separately the portion |
|
of an order of an appraisal review board determining the appraised |
|
value of land or the portion of the order determining the appraised |
|
value of an improvement to the land if the order determined the |
|
appraised value of both. |
|
SECTION 22. Section 42.015(a), Tax Code, is amended to read |
|
as follows: |
|
(a) A person leasing property who is contractually |
|
obligated to reimburse the property owner for taxes imposed on the |
|
property is entitled to appeal an order of the appraisal review |
|
board determining a protest relating to the property: |
|
(1) brought by the person under Section 41.413; or |
|
(2) brought by the property owner if the property |
|
owner does not appeal the order. |
|
SECTION 23. Section 42.23(e), Tax Code, is amended to read |
|
as follows: |
|
(e) For purposes of Subsection (d), a property owner may |
|
designate a cause of action under Section 42.25 or 42.26 as the |
|
basis for an appeal, but may not designate a cause of action under |
|
both sections as the basis for the appeal. Discovery regarding a |
|
cause of action that is not specifically designated by the property |
|
owner under Subsection (d) shall be conducted as provided by the |
|
Texas Rules of Civil Procedure. A [The] court may not enter an |
|
order, including a protective order [to modify the provisions of |
|
this subsection] under Rule 192.6 of the Texas Rules of Civil |
|
Procedure, that conflicts with Subsection (d). |
|
SECTION 24. Section 11.253, Tax Code, as amended by this |
|
Act, applies only to a tax year beginning on or after January 1, |
|
2022. |
|
SECTION 25. Section 25.19, Tax Code, as amended by this Act, |
|
applies only to a notice of appraised value for a tax year beginning |
|
on or after January 1, 2022. |
|
SECTION 26. Section 41.445, Tax Code, as added by this Act, |
|
and Section 41.45(b-1), Tax Code, as amended by this Act, apply only |
|
to a protest under Chapter 41, Tax Code, for which a notice of |
|
protest is filed by a property owner on or after the effective date |
|
of this Act. A protest under Chapter 41, Tax Code, for which a |
|
notice of protest is filed by a property owner before the effective |
|
date of this Act is governed by the law in effect on the date the |
|
notice of protest is filed, and the former law is continued in |
|
effect for that purpose. |
|
SECTION 27. Sections 41.45 and 41.47, Tax Code, as amended |
|
by this Act, apply only to a protest under Chapter 41, Tax Code, for |
|
which a notice of protest is filed on or after January 1, 2022. |
|
SECTION 28. Sections 42.01, 42.015, and 42.23, Tax Code, as |
|
amended by this Act, apply only to an appeal under Chapter 42, Tax |
|
Code, that is filed on or after January 1, 2022. |
|
SECTION 29. (a) Except as provided by Subsection (b) of this |
|
section, this Act takes effect January 1, 2022. |
|
(b) Sections 5.103, 5.104, 6.04, 6.052, 41.01, 41.461, and |
|
41.66, Tax Code, as amended by this Act, and Section 41A.015, Tax |
|
Code, as added by this Act, take effect immediately if this Act |
|
receives a vote of two-thirds of all the members elected to each |
|
house, as provided by Section 39, Article III, Texas Constitution. |
|
If this Act does not receive the vote necessary for immediate |
|
effect, those sections of this Act take effect September 1, 2021. |