Enrolled Bill Summary

            Senate Bill 340 amends provisions of the Tax Code relating to the rendition and appraisal of property for ad valorem tax purposes and electronic communication between property owners and appraisal districts. The bill requires that an agreement between a chief appraiser and a property owner to communicate in electronic format specify the means for confirming delivery of a communication and the electronic mail address of the property owner, and it requires the comptroller to set rules prescribing acceptable media, formats, content, and methods for electronic transmission of appraisal notices to the property owner. It specifies the information that must be contained in a person's rendition statement on tangible personal property used in the production of income, and it allows the owner of property that is regulated by the Public Utility Commission of Texas, the Railroad Commission of Texas, or the Federal Energy Regulatory Commission to submit a copy of the annual regulatory report for the property plus other necessary information to satisfy the requirement for a rendition statement. The bill allows a chief appraiser to request a property owner to provide a statement that indicates how the property value on the rendition statement was determined; the property owner must provide the statement within 21 days of the request or be subject to a penalty for failure to render in a timely manner.

            Senate Bill 340 establishes a 30-day deadline for rendering property for which an application for tax exemption has been denied by the chief appraiser. It extends the deadline for filing a delayed rendition statement or property report from April 30 to May 15, and it establishes a penalty equal to 10 percent of the tax liability for failure to file in a timely manner and a penalty equal to 50 percent of the tax liability for filing a false statement or engaging in any conduct with the intent to commit fraud or tax evasion. For the purposes of appraising property, the bill establishes conditions under which an improvement to property damaged by mold or water is considered a new improvement.

            Senate Bill 340 is effective January 1, 2004, except for provisions relating to communications in electronic format, which take effect January 1, 2005, and provisions relating to the filing deadline for a rendition statement or property report, which take effect September 1, 2003.