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AN ACT
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relating to ad valorem taxation; 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 6.03, Tax Code, is amended by amending |
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Subsection (k) and adding Subsection (k-1) to read as follows: |
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(k) Except as provided by Subsection (k-1), the [The] |
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governing body of each taxing unit entitled to vote shall determine |
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its vote by resolution and submit it to the chief appraiser before |
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December 15. The chief appraiser shall count the votes, declare the |
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five candidates who receive the largest cumulative vote totals |
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elected, and submit the results before December 31 to the governing |
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body of each taxing unit in the district and to the candidates. For |
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purposes of determining the number of votes received by the |
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candidates, the candidate receiving the most votes of the |
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conservation and reclamation districts is considered to have |
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received all of the votes cast by conservation and reclamation |
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districts and the other candidates are considered not to have |
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received any votes of the conservation and reclamation districts. |
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The chief appraiser shall resolve a tie vote by any method of |
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chance. |
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(k-1) This subsection applies only to an appraisal district |
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established in a county with a population of 120,000 or more. The |
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governing body of each taxing unit entitled to cast at least five |
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percent of the total votes must determine its vote by resolution |
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adopted at the first or second open meeting of the governing body |
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that is held after the date the chief appraiser delivers the ballot |
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to the presiding officer of the governing body. The governing body |
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must submit its vote to the chief appraiser not later than the third |
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day following the date the resolution is adopted. |
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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 created |
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for a county with a population of more than 120,000 shall appoint a |
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taxpayer liaison officer who shall serve at the pleasure of the |
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board. The taxpayer liaison officer shall administer the public |
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access functions required by Sections 6.04(d), (e), and (f), and is |
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responsible for resolving disputes not involving matters that may |
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be protested under Section 41.41. In addition, the taxpayer |
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liaison officer is responsible for receiving, and compiling a list |
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of, comments, complaints, and suggestions filed by the chief |
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appraiser, a property owner, or a property owner's agent concerning |
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the matters listed in Section 5.103(b) or any other matter related |
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to the fairness and efficiency of the appraisal review board |
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established for the appraisal district. The taxpayer liaison |
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officer shall forward to the comptroller comments, complaints, and |
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suggestions filed under this subsection in the form and manner |
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prescribed by the comptroller not later than December 31 of each |
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year. |
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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 unless the person owns or |
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leases the property that is the subject of the communication. |
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(b) An offense under this section is a Class A misdemeanor. |
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SECTION 6. Section 11.252(d), Tax Code, is amended to read |
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as follows: |
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(d) In connection with the requirements and procedures |
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under Subsection (c), the comptroller by rule shall adopt a form to |
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be completed by the lessee of a motor vehicle for which the owner of |
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the vehicle may apply for an exemption under Subsection (a). The |
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form shall require a lessee who is an individual to provide the |
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lessee's name, address, and driver's license or personal |
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identification certificate number. The form shall require a |
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lessee that is an entity described by Subsection (b) to provide the |
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lessee's name, address, and, if applicable, federal tax |
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identification number. The form shall require a lessee who is an |
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individual, or the authorized representative of a lessee that is an |
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entity described by Subsection (b), to certify, either under oath |
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or by written, unsworn declaration, that the lessee does not hold |
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the vehicle for the production of income and that the vehicle is |
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used primarily for activities that do not involve the production of |
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income. The comptroller shall include on the form a notice of the |
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penalties prescribed by Section 37.10, Penal Code, for making a |
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false statement on the form. |
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SECTION 7. Section 11.253, Tax Code, is amended by adding |
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Subsections (l) and (m) to read as follows: |
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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, on or after January 1, 2020. Notwithstanding |
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Subsections (a)(2)(C), (e), and (g), the governing body of a taxing |
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unit, in the manner provided by law for official action, may extend |
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the date by which goods-in-transit must be transported to another |
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location in this state or outside this state to a date not later |
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than the 270th day after the date the person acquired the property |
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in or imported the property into this state. An extension adopted by |
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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 |
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(2) the tax year in which the extension is adopted. |
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(m) This subsection and Subsection (l) expire December 31, |
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2025. |
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SECTION 8. Sections 21.021(a) and (b), Tax Code, are |
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amended to read as follows: |
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(a) Except as otherwise provided by Section 21.031(b-2), a |
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[A] vessel or other watercraft used as an instrumentality of |
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commerce, [(]as defined by [in] Section 21.031, [21.031(b) of this |
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code)] is taxable pursuant to Section 21.02 [of this code]. |
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(b) A special-purpose vessel or other watercraft not used as |
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an instrumentality of commerce, [(]as defined by [in] Section |
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21.031, [21.031(b) of this code)] is deemed to be located on January |
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1 for more than a temporary period for purposes of Section 21.02 [of |
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this code] in the taxing unit in which it was physically located |
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during the year preceding the tax year. If the vessel or watercraft |
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was physically located in more than one taxing unit during the year |
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preceding the tax year, it is deemed to be located for more than a |
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temporary period for purposes of Section 21.02 [of this code] in the |
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taxing unit in which it was physically located for the longest |
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period during the year preceding the tax year or for 30 days, |
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whichever is longer. If a vessel or other watercraft is not deemed |
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to be located in any taxing unit on January 1 for more than a |
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temporary period pursuant to this subsection, the property is |
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taxable as provided by Sections 21.02(a)(2) through (4) |
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[Subdivisions (2) through (4) of Section 21.02 of this code]. |
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SECTION 9. Section 21.031, Tax Code, is amended by amending |
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Subsection (b) and adding Subsections (b-1), (b-2), (b-3), and (i) |
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to read as follows: |
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(b) The appraisal office shall make the allocation as |
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provided by Subsections (b-1), (b-2), and (b-3). |
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(b-1) Except as provided by Subsection (b-2), the [follows: |
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[(1) The] allocable portion of the total fair market |
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value of a vessel or other watercraft used as an instrumentality of |
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commerce that is taxable in this state is determined by multiplying |
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the total fair market value by a fraction, the numerator of which is |
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the number of miles the vessel or watercraft was operated in this |
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state during the year preceding the tax year and the denominator of |
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which is the total number of miles the vessel or watercraft was |
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operated during the year preceding the tax year. [For purposes of |
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this section, "vessel or other watercraft used as an |
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instrumentality of commerce" means a vessel or other watercraft |
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that is primarily employed in the transportation of cargo, |
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passengers, or equipment, and that is economically employed when it |
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is moving from point to point as a means of transportation.] |
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(b-2) A property owner that operates a fleet of vessels or |
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other watercraft that are used as instrumentalities of commerce may |
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elect in writing submitted to the appraisal office to have the |
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appraisal office make the allocation under this subsection. If the |
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property owner makes the election, the allocable portion of the |
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total fair market value of a vessel or other watercraft that is part |
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of the property owner's fleet, is used as an instrumentality of |
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commerce, is taxable in this state, and has taxable situs at a |
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location in the appraisal district is determined by multiplying the |
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total fair market value of the vessel or other watercraft by a |
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fraction, the numerator of which is the number of miles that all the |
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vessels or other watercraft of the property owner's fleet that are |
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used as instrumentalities of commerce, are taxable in this state, |
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and have taxable situs at a location in the same appraisal district |
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as the vessel or other watercraft the value of which is allocated |
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under this subsection were operated in this state during the year |
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preceding the tax year and the denominator of which is the total |
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number of miles that all the vessels or other watercraft of the |
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property owner's fleet that are used as instrumentalities of |
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commerce, are taxable in this state, and have taxable situs at a |
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location in the same appraisal district as the vessel or other |
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watercraft the value of which is allocated under this subsection |
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were operated during the year preceding the tax year. |
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Notwithstanding Sections 21.02 and 21.021, a property owner that |
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elects to have the appraisal office make the allocation of the |
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property owner's fleet under this subsection may designate the |
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location of the property owner's principal place of business as the |
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taxable situs of the fleet. |
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(b-3) [(2)] The allocable portion of the total fair market |
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value of a special-purpose vessel or other watercraft not used as an |
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instrumentality of commerce is determined by multiplying the total |
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fair market value by a fraction, the numerator of which is the |
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number of days the vessel or watercraft was physically located in |
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this state during the year preceding the tax year and the |
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denominator of which is 365. [For purposes of this section, |
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"special-purpose vessel or other watercraft not used as an |
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instrumentality of commerce" means a vessel or other watercraft |
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that: |
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[(A) is designed to be transient and customarily |
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is moved from location to location on a more or less regular basis; |
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[(B) is economically employed when operated in a |
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localized area or in a fixed place; and |
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[(C) is not primarily employed to transport cargo, |
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passengers, and equipment but rather to perform some specialized |
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function or operation not requiring constant movement from point to |
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point.] |
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(i) For purposes of this section: |
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(1) "Special-purpose vessel or other watercraft not |
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used as an instrumentality of commerce" means a vessel or other |
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watercraft that: |
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(A) is designed to be transient and customarily |
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is moved from location to location on a more or less regular basis; |
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(B) is economically employed when operated in a |
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localized area or in a fixed place; and |
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(C) is not primarily employed to transport cargo, |
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passengers, and equipment but rather to perform some specialized |
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function or operation not requiring constant movement from point to |
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point. |
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(2) "Vessel or other watercraft used as an |
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instrumentality of commerce" means a vessel or other watercraft |
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that is primarily employed in the transportation of cargo, |
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passengers, or equipment, and that is economically employed when it |
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is moving from point to point as a means of transportation. |
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SECTION 10. Section 25.02, Tax Code, is amended by adding |
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Subsections (c), (d), (e), (f), and (g) 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 |
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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 |
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appraisal record. On the written request of a property owner, the |
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chief appraiser shall separate identifiable segments of the owner's |
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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 |
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property subject to the request. |
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(f) If a chief appraiser refuses to combine parcels or |
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tracts, or separate a parcel or tract, on request of a property |
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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 |
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Section 25.25 or a protest filed under Chapter 41. |
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(g) The combination of contiguous parcels or tracts of real |
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property into a single appraisal record or the separation of |
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identifiable segments of a parcel or tract of real property into |
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individual appraisal records under this section does not affect the |
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application of generally accepted appraisal methods and techniques |
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to the appraisal of real property associated with those appraisal |
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records, including real property that is part of the same economic |
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unit as real property contained in the same or another appraisal |
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record. |
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SECTION 11. Section 25.19(b), Tax Code, as effective |
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January 1, 2022, is amended to read as follows: |
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(b) The chief appraiser shall separate real from personal |
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property and include in the notice for each: |
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(1) a list of the taxing units in which the property is |
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taxable; |
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(2) the appraised value of the property in the |
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preceding year; |
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(3) the taxable value of the property in the preceding |
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year for each taxing unit taxing the property; |
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(4) the appraised value of the property for the |
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current year, the kind and amount of each exemption and partial |
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exemption, if any, approved for the property for the current year |
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and for the preceding year, and, if an exemption or partial |
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exemption that was approved for the preceding year was canceled or |
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reduced for the current year, the amount of the exemption or partial |
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exemption canceled or reduced; |
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(5) in italic typeface, the following statement: "The |
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Texas Legislature does not set the amount of your local taxes. Your |
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property tax burden is decided by your locally elected officials, |
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and all inquiries concerning your taxes should be directed to those |
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officials"; |
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(6) a detailed explanation of the time and procedure |
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for protesting the value; |
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(7) the date and place the appraisal review board will |
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begin hearing protests; [and] |
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(8) an explanation of the availability and purpose of |
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an informal conference with the appraisal office before a hearing |
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on a protest; and |
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(9) a brief explanation that the governing body of |
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each taxing unit decides whether or not taxes on the property will |
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increase and the appraisal district only determines the value of |
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the property. |
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SECTION 12. 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 |
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amended notice of appraised value later than June 1 for property for |
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which a person files a rendition statement or property report as |
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required by Chapter 22 unless the purpose of the notice is to: |
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(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 |
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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 13. 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 |
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a change of exemption status or correction of a tax roll, including |
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an overpayment received after a correction of a tax roll as a result |
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of an appeal under Chapter 42. Such an overpayment is covered by |
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Section 26.15 or 42.43, as applicable. |
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SECTION 14. Section 41.01, Tax Code, is amended by adding |
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Subsections (c), (d), and (e) to read as follows: |
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(c) The appraisal review board by rule shall adopt |
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procedures for hearings the board conducts under this subchapter |
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and Subchapter C. Before adopting the hearing procedures, the |
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board shall hold a public hearing to consider the hearing |
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procedures proposed for adoption by the board. Not later than May |
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15 of each year, the board shall hold the hearing, make any |
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amendments to the proposed hearing procedures the board determines |
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are necessary, and by resolution finally adopt the hearing |
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procedures. The board must comply with Section 5.103(d) when |
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adopting the hearing procedures. The chairman of the board is |
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responsible for the administration of hearing procedures adopted by |
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the board. |
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(d) The appraisal review board shall distribute copies of |
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the hearing procedures adopted by the board to the board of |
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directors of, and the taxpayer liaison officer for, the appraisal |
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district for which the appraisal review board is established and to |
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the comptroller not later than the 15th day after the date the board |
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adopts the hearing procedures. |
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(e) The appraisal review board shall post a copy of the |
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hearing procedures adopted by the board: |
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(1) in a prominent place in each room in which the |
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board conducts hearings under this subchapter and Subchapter C; and |
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(2) if the appraisal district for which the board is |
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established maintains an Internet website, on the appraisal |
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district's website. |
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SECTION 15. Section 41.44(d), Tax Code, is amended to read |
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as follows: |
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(d) A notice of protest is sufficient if it identifies the |
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protesting property owner, including a person claiming an ownership |
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interest in the property even if that person is not listed on the |
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appraisal records as an owner of the property, identifies the |
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property that is the subject of the protest, and indicates apparent |
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dissatisfaction with some determination of the appraisal |
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office. The notice need not be on an official form, but the |
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comptroller shall prescribe a form that provides for more detail |
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about the nature of the protest. The form must permit a property |
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owner to include each property in the appraisal district that is the |
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subject of a protest. The form must permit a property owner to |
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request that the protest be heard by a special panel established |
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under Section 6.425 if the protest will be determined by an |
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appraisal review board to which that section applies and the |
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property is included in a classification described by Section |
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6.425(b). The form must permit a property owner to request that the |
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protest be heard by a single-member panel authorized by Section |
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41.45(b-4). The comptroller, each appraisal office, and each |
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appraisal review board shall make the forms readily available and |
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deliver one to a property owner on request. |
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SECTION 16. Subchapter C, Chapter 41, Tax Code, is amended |
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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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The appraisal office shall hold an informal conference with each |
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property owner who files a notice of protest with the appraisal |
|
review board and requests an informal conference. An informal |
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conference must be held before the hearing on the protest. |
|
SECTION 17. Section 41.45, Tax Code, is amended by amending |
|
Subsections (b-1), (d), (d-2), and (d-3) and adding Subsections |
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(b-4) and (b-5) to read as follows: |
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(b-1) An appraisal review board shall conduct a hearing on a |
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protest by telephone conference call if[: |
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[(1)] the property owner notifies the board that the |
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property owner intends to appear by telephone conference call in |
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the owner's notice of protest or by written notice filed with the |
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board not later than the 10th day before the date of the hearing [; |
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or |
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[(2) the board proposes that the hearing be conducted |
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by telephone conference call and the property owner agrees to the |
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hearing being conducted in that manner]. |
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(b-4) An appraisal review board shall sit in a single-member |
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panel to conduct a protest hearing under this section if the |
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property owner requests that the hearing be conducted by a |
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single-member panel: |
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(1) in the notice of protest; or |
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(2) in writing submitted to the board not later than |
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the 10th day before the date of the hearing. |
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(b-5) If the recommendation of a single-member panel that |
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conducts a hearing under Subsection (b-4) is not accepted by the |
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appraisal review board, the board may refer the matter for |
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rehearing to a single-member panel composed of a member who did not |
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hear the original protest or the board may determine the protest. |
|
(d) This subsection does not apply to a single-member panel |
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established under Subsection (b-4) of this section or a special |
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panel established under Section 6.425. An appraisal review board |
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consisting of more than three members may sit in panels of not fewer |
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than three members to conduct protest hearings. If the |
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recommendation of a panel is not accepted by the board, the board |
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may refer the matter for rehearing to a panel composed of members |
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who did not hear the original protest or, if there are not at least |
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three members who did not hear the original protest, the board may |
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determine the protest. |
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(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. |
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(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, |
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under Subsection (b-4), (d), or (d-1) in accordance with the |
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provisions of this subchapter. |
|
SECTION 18. 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 19. 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 20. 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 21. 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 22. Section 41A.10, Tax Code, is amended by |
|
amending Subsection (a) and adding Subsection (c) to read as |
|
follows: |
|
(a) The pendency of an appeal under this chapter does not |
|
affect the delinquency date for the taxes on the property subject to |
|
the appeal. Except for a property owner who has elected to defer |
|
the collection of taxes under Section 33.06 or 33.065 on the |
|
property subject to the appeal and for which the deferral is still |
|
in effect, a [A] property owner who appeals an appraisal review |
|
board order under this chapter shall pay taxes on the property |
|
subject to the appeal in an amount equal to the amount of taxes due |
|
on the portion of the taxable value of the property that is not in |
|
dispute. If the final determination of an appeal under this chapter |
|
decreases the property owner's tax liability to less than the |
|
amount of taxes paid, the taxing unit shall refund to the property |
|
owner the difference between the amount of taxes paid and the amount |
|
of taxes for which the property owner is liable. |
|
(c) For the purposes of Subsection (b) of this section, |
|
taxes are not considered delinquent on property subject to an |
|
appeal if the property owner has elected to defer the collection of |
|
taxes on the property under Section 33.06 or 33.065 and the deferral |
|
is still in effect. |
|
SECTION 23. 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 24. 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 25. Section 6.03, Tax Code, as amended by this Act, |
|
applies only to the selection of members of the board of directors |
|
of an appraisal district who are appointed for a term that begins on |
|
or after January 1, 2022. |
|
SECTION 26. Section 11.253, Tax Code, as amended by this |
|
Act, applies only to a tax year beginning on or after January 1, |
|
2022. |
|
SECTION 27. Sections 21.021 and 21.031, Tax Code, as |
|
amended by this Act, apply only to the allocation of the value and |
|
the determination of the situs of vessels and other watercraft for |
|
ad valorem tax purposes beginning on or after January 1, 2022. |
|
SECTION 28. 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 29. Section 41.445, Tax Code, as added by this Act, |
|
and 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 by a property owner on or after January |
|
1, 2022. A protest under Chapter 41, Tax Code, for which a notice of |
|
protest is filed by a property owner before January 1, 2022, 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 30. Section 41A.10, Tax Code, as amended by this |
|
Act, applies only to a request for binding arbitration under |
|
Chapter 41A, Tax Code, that is filed on or after the effective date |
|
of this Act. A request for binding arbitration under Chapter 41A, |
|
Tax Code, that is filed before the effective date of this Act is |
|
governed by the law in effect on the date the request is filed, and |
|
the former law is continued in effect for that purpose. |
|
SECTION 31. Sections 42.015 and 42.23, Tax Code, as amended |
|
by this Act, apply to an appeal under Chapter 42, Tax Code, that is |
|
pending on the date the amendments to those sections take effect |
|
under this Act or that is filed on or after that date. |
|
SECTION 32. The comptroller of public accounts is required |
|
to implement a provision of this Act only if the legislature |
|
appropriates money specifically for that purpose. If the |
|
legislature does not appropriate money specifically for that |
|
purpose, the comptroller may, but is not required to, implement a |
|
provision of this Act using other appropriations available for that |
|
purpose. |
|
SECTION 33. (a) Except as provided by Subsection (b) of this |
|
section, this Act takes effect January 1, 2022. |
|
(b) Sections 5.103, 5.104, 6.052, 41.01, 41.461, 41.66, |
|
42.015, and 42.23, 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. |
|
|
|
______________________________ |
______________________________ |
|
President of the Senate |
Speaker of the House |
|
|
|
I certify that H.B. No. 988 was passed by the House on April |
|
27, 2021, by the following vote: Yeas 146, Nays 0, 1 present, not |
|
voting; and that the House concurred in Senate amendments to H.B. |
|
No. 988 on May 28, 2021, by the following vote: Yeas 146, Nays 0, 1 |
|
present, not voting. |
|
|
|
______________________________ |
|
Chief Clerk of the House |
|
|
I certify that H.B. No. 988 was passed by the Senate, with |
|
amendments, on May 25, 2021, by the following vote: Yeas 31, Nays |
|
0. |
|
|
|
______________________________ |
|
Secretary of the Senate |
|
APPROVED: __________________ |
|
Date |
|
|
|
__________________ |
|
Governor |