S.B. No. 893
AN ACT
1-1 relating to technical changes to statutes involving certain tax
1-2 provisions including those administered by the comptroller, to the
1-3 definitions of certain items taxed under the sales tax and
1-4 controlled substance tax laws, to limitations on certain municipal
1-5 tax rates, to the duties of the appraisal review board, and to
1-6 delinquent taxes and tax liens; revising references in the
1-7 inheritance tax statute to federal tax code provisions concerning
1-8 credits.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Subsection (e), Section 1.111, Tax Code, is
1-11 amended to read as follows:
1-12 (e) An agreement between <an agent for> a property owner or
1-13 the owner's agent and the chief appraiser <relating to a matter
1-14 that may be protested to the appraisal review board> is <not> final
1-15 if the agreement relates to a matter:
1-16 (1) which may be protested to the appraisal review
1-17 board or on which a protest has been filed but not determined
1-18 <unless approved> by the <appraisal review> board; or
1-19 (2) which may be corrected under Section 25.25 or on
1-20 which a motion for correction under that section has been filed but
1-21 not determined by the board.
1-22 SECTION 2. Section 25.25, Tax Code, is amended by adding
1-23 Subsections (h) through (j) to read as follows:
2-1 (h) The appraisal review board, on the joint motion of the
2-2 property owner and the chief appraiser filed at any time prior to
2-3 the date the taxes become delinquent, shall by written order
2-4 correct an error that resulted in an incorrect appraised value for
2-5 the owner's property.
2-6 (i) A person who acquires property after January 1 of the
2-7 tax year at issue is entitled to file any motion that this section
2-8 authorizes the person who owned the property on January 1 of that
2-9 year to file, if the deadline for filing the motion has not passed.
2-10 (j) If during the pendency of a motion under this section
2-11 the ownership of property subject to the motion changes, the new
2-12 owner of the property is entitled to proceed with the motion in the
2-13 same manner as the property owner who filed the motion.
2-14 SECTION 3. Section 32.01, Tax Code, is amended to read as
2-15 follows:
2-16 Sec. 32.01. Tax Lien. (a) On January 1 of each year, a tax
2-17 lien attaches to property to secure the payment of all taxes,
2-18 penalties, and interest ultimately imposed for the year on the
2-19 <that> property, whether or not the taxes are imposed in the year
2-20 the lien attaches. The lien exists in favor of each taxing unit
2-21 having power to tax the property.
2-22 (b) A tax lien on inventory, furniture, equipment, or other
2-23 personal property is a lien in solido and attaches to all
2-24 inventory, furniture, equipment, and other personal property that
2-25 the property owner owns on January 1 of the year the lien attaches
3-1 or that the property owner subsequently acquires.
3-2 (c) The lien under this section is perfected on attachment
3-3 and, except as provided by Section 32.03(b), perfection requires no
3-4 further action by the taxing unit.
3-5 SECTION 4. Section 33.41, Tax Code, is amended by adding
3-6 Subsection (c) to read as follows:
3-7 (c) In a suit brought under Subsection (a), a taxing unit
3-8 may foreclose any other lien on the property in favor of the taxing
3-9 unit or enforce personal liability of the property owner for the
3-10 other lien.
3-11 SECTION 5. Section 41.01, Tax Code, is amended to read as
3-12 follows:
3-13 Sec. 41.01. DUTIES <SCOPE> OF APPRAISAL REVIEW BOARD. The
3-14 appraisal review board shall <examine the appraisal records for the
3-15 appraisal district to determine whether>:
3-16 (1) determine protests initiated by property owners
3-17 <appraisals are substantially uniform in terms of their
3-18 relationship to the appraised value required by law>;
3-19 (2) determine challenges initiated by taxing units <an
3-20 exemption or a partial exemption is improperly granted>;
3-21 (3) correct clerical errors in the appraisal records
3-22 and the appraisal rolls <land is improperly granted appraisal as
3-23 provided by Subchapter C, D, or E, Chapter 23 of this code>; <or>
3-24 (4) act on motions to correct appraisal rolls under
3-25 Section 25.25;
4-1 (5) determine whether an exemption or a partial
4-2 exemption is improperly granted and whether land is improperly
4-3 granted appraisal as provided by Subchapter C, D, or E, Chapter 23;
4-4 and
4-5 (6) take any other action or make any other
4-6 determination that this title specifically authorizes or requires
4-7 <the records do not conform to the requirements of law in any other
4-8 respect>.
4-9 SECTION 6. Section 41.02, Tax Code, is amended to read as
4-10 follows:
4-11 Sec. 41.02. Action by Board. After making a determination
4-12 or decision under Section 41.01, <If after reviewing the appraisal
4-13 records> the appraisal review board <finds that appraisals are not
4-14 substantially uniform or that the records do not conform to the
4-15 requirements of law in some other respect, the board> shall <refer
4-16 the matter to the appraisal office and> by written order <shall>
4-17 direct the chief appraiser to correct or change the appraisal <make
4-18 the reappraisals or corrections in the> records or the appraisal
4-19 roll <that are necessary> to conform the appraisal records or the
4-20 appraisal roll to the board's determination or decision
4-21 <requirements of law>.
4-22 SECTION 7. The heading of Section 41.12, Tax Code, is
4-23 amended to read as follows:
4-24 Sec. 41.12. APPROVAL <COMPLETION> OF APPRAISAL RECORDS
4-25 <REVIEW> BY BOARD.
5-1 SECTION 8. Subsection (a), Section 41.12, Tax Code, is
5-2 amended to read as follows:
5-3 (a) By July 20, the <The> appraisal review board shall:
5-4 (1) hear and determine all or substantially all timely
5-5 filed protests;
5-6 (2) determine all timely filed challenges;
5-7 (3) <complete its review of the appraisal records,
5-8 approve the records, and> submit a list of its approved changes in
5-9 the records to the chief appraiser; and
5-10 (4) approve the records <by July 20>.
5-11 SECTION 9. Section 42.225, Tax Code, is amended to read as
5-12 follows:
5-13 Sec. 42.225. Property Owner's Right to Appeal Through
5-14 <Binding> Arbitration. (a) On motion by a <A> property owner who
5-15 appeals an appraisal review board order under this chapter, the
5-16 court shall submit the appeal to nonbinding <is entitled to have
5-17 the appeal resolved through binding> arbitration. The court shall
5-18 order the nonbinding arbitration to be conducted in accordance with
5-19 Chapter 154, Civil Practice and Remedies Code. If the appeal
5-20 proceeds to trial following an arbitration award or finding under
5-21 this subsection, either party may introduce the award or finding
5-22 into evidence. In addition, the court shall award the property
5-23 owner reasonable attorney fees if the trial was not requested by
5-24 the property owner and the determination of the appeal results in
5-25 an appraised value for the owner's property that is equal to or
6-1 less than the appraised value under the arbitration award or
6-2 finding. However, the amount of an award of attorney fees under
6-3 this subsection is subject to the same limitations as those
6-4 provided by Section 42.29.
6-5 (b) On motion by the property owner, the court shall order
6-6 the parties to an appeal of an appraisal review board order under
6-7 this chapter to submit to binding arbitration if the appraisal
6-8 district joins in the motion or consents to the arbitration. A
6-9 binding arbitration award under this subsection is binding and
6-10 enforceable in the same manner as a contract obligation <and shall
6-11 appoint an impartial third party to conduct the arbitration. The
6-12 impartial third party is appointed by the court and serves as
6-13 provided by Subchapter C, Chapter 154, Civil Practice and Remedies
6-14 Code>.
6-15 (c) The court shall appoint an impartial third party to
6-16 conduct an arbitration under this section. The impartial third
6-17 party is appointed by the court and serves as provided by
6-18 Subchapter C, Chapter 154, Civil Practice and Remedies Code.
6-19 (d) Each party or counsel for the party may present the
6-20 position of the party before the impartial third party, who must
6-21 render a specific arbitration award <resolving the appeal>.
6-22 <(d) Except as provided by Subsection (e), an arbitration
6-23 award is binding and enforceable in the same manner as a contract
6-24 obligation if:>
6-25 <(1) in a motion filed under Subsection (b), the
7-1 property owner stipulates that the award is to be binding on all
7-2 the parties; or>
7-3 <(2) before the rendition of the award, the parties
7-4 agree to be bound.>
7-5 (e) Prior to submission of a case to arbitration the court
7-6 shall determine matters related to jurisdiction, venue, and
7-7 interpretation of the law. <An arbitration award is not binding if
7-8 it results or would result in an amount of taxes on the property
7-9 that exceeds the amount of taxes assessed on the property under the
7-10 order from which the appeal is taken.>
7-11 (f) Except as provided in this section, an <An> arbitration
7-12 award may include any remedy or relief that a court could order
7-13 under this chapter.
7-14 SECTION 10. Subdivision (3), Subsection (f), Section 11,
7-15 Chapter 683, Acts of the 66th Legislature, 1979 (Article 1118y,
7-16 Vernon's Texas Civil Statutes), is amended to read as follows:
7-17 (3) If an authority created by a principal city having
7-18 a population of more than 800,000 adds territory that is a city or
7-19 town that imposes an additional sales and use tax under Chapter
7-20 321, Tax Code, the additional sales and use tax is repealed as
7-21 provided by Section 321.1025, Tax Code. The effective date for the
7-22 repeal and for the imposition of the tax authorized to be collected
7-23 under Section 16 of this Act in the added territory is the date
7-24 that, under Section 321.102(b) <321.102(a)>, Tax Code, the repeal
7-25 of the additional sales and use tax is effective in the territory.
8-1 SECTION 11. Subsection (p), Section 4A, Development
8-2 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
8-3 Statutes), is amended to read as follows:
8-4 (p) A city that is authorized by this section to impose,
8-5 reduce, increase, or abolish the tax under this section may, at the
8-6 same time and on the same ballot, impose, reduce, increase, or
8-7 abolish the additional sales and use tax imposed under Section
8-8 321.101(b), Tax Code, if the city is authorized by Chapter 321, Tax
8-9 Code, to impose, reduce, increase, or abolish the additional sales
8-10 and use tax. <The combined rate of the tax under this section and
8-11 the additional sales and use tax imposed under Section 321.101(b),
8-12 Tax Code, may not exceed one-half of one percent. An election
8-13 adopting a combined rate of the tax under this section and the
8-14 additional sales and use tax that exceeds one-half of one percent
8-15 has no effect.> The city must follow, in relation to the
8-16 imposition, reduction, increase, or abolishment of the additional
8-17 sales and use tax imposed under Section 321.101(b), Tax Code, the
8-18 procedures of that chapter, except that in an election to impose,
8-19 reduce, increase, or abolish the tax under this section and the
8-20 additional sales and use tax the ballot shall be printed to provide
8-21 for voting for or against the proposition: "The adoption of a
8-22 sales and use tax within the city for the promotion and development
8-23 of new and expanded business enterprises at the rate of ________ of
8-24 one percent (one-eighth, one-fourth, three-eighths, or one-half to
8-25 be inserted as appropriate) and the adoption of an additional sales
9-1 and use tax within the city at the rate of ________ of one percent
9-2 to be used to reduce the property tax rate" (one-eighth,
9-3 one-fourth, three-eighths, or one-half to be inserted as
9-4 appropriate).
9-5 SECTION 12. Subsection (e), Section 4B, Development
9-6 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
9-7 Statutes), is amended to read as follows:
9-8 (e) If an eligible city adopts the tax, a tax is imposed on
9-9 the receipts from the sale at retail of taxable items within the
9-10 eligible city at a rate approved by the governing body of the
9-11 eligible city. The rate must be equal to one-eighth, one-fourth,
9-12 three-eighths, or one-half of one percent. There is also imposed
9-13 an excise tax on the use, storage, or other consumption within the
9-14 eligible city of tangible personal property purchased, leased, or
9-15 rented from a retailer during the period that the tax is effective
9-16 within the eligible city. The rate of the excise tax is the same
9-17 as the rate of the sales tax portion of the tax and is applied to
9-18 the sale price of the tangible personal property.
9-19 SECTION 13. Subsections (b) and (c), Section 21.22, Tax
9-20 Code, are amended to read as follows:
9-21 (b) The comptroller <board>, in prescribing the contents of
9-22 the form, shall ensure that the form requires the person to furnish
9-23 the information necessary to identify the mobile home and determine
9-24 its ownership, to name the person for whom the mobile home was
9-25 moved, and to state the address of the place from which and the
10-1 place to which the mobile home was moved.
10-2 (c) A person required to make a record of the movement of a
10-3 mobile home shall keep the record for the period of time prescribed
10-4 by the comptroller <board>. He shall keep the record at his
10-5 principal place of business if he has one, and if he does not have
10-6 one, he shall keep the record at his principal residence.
10-7 SECTION 14. Subsection (j), Section 23.54, Tax Code, is
10-8 amended to read as follows:
10-9 (j) If the chief appraiser discovers that appraisal under
10-10 this subchapter has been erroneously allowed in any one of the five
10-11 <10> preceding years because of failure of the person whose land
10-12 was allowed appraisal under this subchapter to give notice that its
10-13 eligibility has ended, he shall add the difference between the
10-14 appraised value of the land under this subchapter and the market
10-15 value of the land to the appraisal roll as provided by Section
10-16 25.21 of this code for other property that escapes taxation.
10-17 SECTION 15. Subsection (d), Section 24.02, Tax Code, is
10-18 amended to read as follows:
10-19 (d) Reports must be filed before March 1. For good cause
10-20 shown the comptroller <board> may extend the filing deadline <by
10-21 written order> for a single period not to exceed 60 days.
10-22 SECTION 16. Subsection (a), Section 33.48, Tax Code, is
10-23 amended to read as follows:
10-24 (a) In addition to other costs authorized by law, a taxing
10-25 unit is entitled to recover the following costs and expenses in a
11-1 suit to collect a delinquent tax:
11-2 (1) all usual court costs, including the cost of
11-3 serving process;
11-4 (2) costs of filing for record a notice of lis pendens
11-5 against property;
11-6 (3) expenses of foreclosure sale;
11-7 (4) <(3)> reasonable expenses, subject to approval by
11-8 the court, that are incurred by the taxing unit in determining the
11-9 name, identity, and location of necessary parties and in procuring
11-10 necessary legal descriptions of the property on which a delinquent
11-11 tax is due; and
11-12 (5) <(4)> reasonable attorney's fees approved by the
11-13 court and not exceeding 15 percent of the total amount of taxes,
11-14 penalties, and interest <adjudged> due the unit.
11-15 SECTION 17. Subsection (a), Section 41.461, Tax Code, is
11-16 amended to read as follows:
11-17 (a) At least 14 days before a hearing on a protest, the
11-18 chief appraiser shall:
11-19 (1) deliver a copy of the pamphlet prepared by the
11-20 comptroller <State Property Tax Board> under Section 5.06(a) to the
11-21 property owner initiating the protest if the owner is representing
11-22 himself, or to an agent representing the owner if requested by the
11-23 agent;
11-24 (2) inform the property owner that the owner or the
11-25 agent of the owner may inspect and may obtain a copy of the data,
12-1 schedules, formulas, and all other information the chief appraiser
12-2 plans to introduce at the hearing to establish any matter at issue;
12-3 and
12-4 (3) deliver a copy of the hearing procedures
12-5 established by the appraisal review board under Section 41.66 to
12-6 the property owner.
12-7 SECTION 18. Section 101.007, Tax Code, is amended to read as
12-8 follows:
12-9 Sec. 101.007. References to State Officers. A reference in
12-10 this code <title> to the comptroller, the treasurer, or another
12-11 officer includes authorized representatives and employees of the
12-12 officer unless the provision indicates that only the officer is
12-13 intended in the reference.
12-14 SECTION 19. Section 151.0048, Tax Code, is amended to read
12-15 as follows:
12-16 Sec. 151.0048. <">REAL PROPERTY SERVICE.<"> "Real property
12-17 service" means:
12-18 (1) landscaping;
12-19 (2) the care and maintenance of lawns, yards, or
12-20 ornamental trees or other plants;
12-21 (3) the removal or collection of garbage, rubbish, or
12-22 other solid waste other than:
12-23 (A) hazardous waste;
12-24 (B) industrial solid waste;
12-25 (C) waste material that results from an activity
13-1 associated with the exploration, development, or production of oil,
13-2 gas, geothermal resources, or any other substance or material
13-3 regulated by the Railroad Commission of Texas under Section 91.101,
13-4 Natural Resources Code; <and>
13-5 (D) domestic sewage or an irrigation return
13-6 flow, to the extent the sewage or return flow does not constitute
13-7 garbage or rubbish; and
13-8 (E) industrial discharges subject to regulation
13-9 by permit issued pursuant to Chapter 26, Water Code;
13-10 (4) building or grounds cleaning, janitorial, or
13-11 custodial services;
13-12 (5) a structural pest control service covered by
13-13 Section 2, Texas Structural Pest Control Act (Article 135b-6,
13-14 Vernon's Texas Civil Statutes); or
13-15 (6) the surveying of real property.
13-16 SECTION 20. Section 151.058, Tax Code, is amended to read as
13-17 follows:
13-18 Sec. 151.058. PROPERTY USED TO PROVIDE TAXABLE SERVICES AND
13-19 SALE PRICE OF TAXABLE <REPAIR> SERVICES. (a) A person performing
13-20 <repair> services taxable under this chapter is the consumer of
13-21 machinery and equipment used in performing the services <service>.
13-22 (b) The total amount charged for a <repair> service taxable
13-23 under this chapter is subject to tax, including charges for labor,
13-24 materials, overhead, and profit, regardless of whether such charges
13-25 are separately identified to the purchaser of the service.
14-1 SECTION 21. Subsection (a), Section 151.104, Tax Code, is
14-2 amended to read as follows:
14-3 (a) A sale of a taxable item <tangible personal property> by
14-4 a person for delivery in this state is presumed to be a sale for
14-5 storage, use, or consumption in this state unless a resale or
14-6 exemption certificate is accepted by the seller.
14-7 SECTION 22. Subsection (b), Section 151.320, Tax Code, is
14-8 amended to read as follows:
14-9 (b) "Magazine" means a publication that is usually
14-10 paperbacked and sometimes illustrated, that appears at a regular
14-11 interval, and that contains stories, articles, and essays by
14-12 various writers and advertisements. "Magazine" does not mean the
14-13 publication of current information which is taxable pursuant to
14-14 Section 151.0038 of this code as an "information service."
14-15 SECTION 23. Section 159.001, Tax Code, is amended to read as
14-16 follows:
14-17 Sec. 159.001. Definitions. In this chapter:
14-18 (1) "Controlled substance" has the meaning assigned by
14-19 Section 481.002, Health and Safety Code.
14-20 (2) "Counterfeit substance" has the meaning assigned
14-21 by Section 481.002, Health and Safety Code.
14-22 (3) "Dealer" means a person who in violation of the
14-23 law of this state imports into this state or manufactures,
14-24 produces, acquires, or possesses in this state:
14-25 (A) seven grams or more of a taxable substance
15-1 consisting of or containing a controlled substance, counterfeit
15-2 substance, or simulated controlled substance; <or>
15-3 (B) fifty dosage units or more of a taxable
15-4 substance not commonly sold by weight, consisting of or containing
15-5 a controlled substance, counterfeit substance, or simulated
15-6 controlled substance; or
15-7 (C) more than four ounces of a taxable substance
15-8 consisting of or containing marihuana.
15-9 (4) "Marihuana" has the meaning assigned by Section
15-10 481.002, Health and Safety Code.
15-11 (5) "Simulated controlled substance" has the meaning
15-12 assigned by Section 482.001, Health and Safety Code.
15-13 (6) "Tax payment certificate" means a stamp or other
15-14 device provided by the comptroller under Section 159.003 of this
15-15 code for use under this chapter.
15-16 (7) "Taxable substance" means a controlled substance,
15-17 a counterfeit substance, a simulated controlled substance, or
15-18 marihuana, or a mixture of any materials that contains a controlled
15-19 substance, counterfeit substance, simulated controlled substance,
15-20 or marihuana.
15-21 (8) "Dosage unit" means a tablet, pill, capsule, vial,
15-22 ampule, or other identifiable or separated unit designed or
15-23 packaged to be used, taken, or ingested at one time.
15-24 SECTION 24. Subdivisions (8) and (9), Section 211.001, Tax
15-25 Code, are amended to read as follows:
16-1 (8) "Generation-skipping transfer" means a transfer
16-2 for which a credit for state taxes is allowable under Section 2604
16-3 <2602(c)(5)(C)>, Internal Revenue Code.
16-4 (9) "Generation-skipping transfer tax credit" means
16-5 the maximum amount of the credit for state death taxes allowable
16-6 under Section 2604 <2602(c)(5)(C)>, Internal Revenue Code.
16-7 SECTION 25. Section 321.101, Tax Code, is amended by adding
16-8 Subsection (g) to read as follows:
16-9 (g) For the purposes of Subsection (f), "territory" in a
16-10 municipality having a population of 5,000 or less and bordering on
16-11 the Gulf of Mexico does not include any area covered by water and
16-12 in which no person has a place of business to which a sales tax
16-13 permit issued under Subchapter F of Chapter 151 applies.
16-14 SECTION 26. This Act takes effect September 1, 1993.
16-15 SECTION 27. The importance of this legislation and the
16-16 crowded condition of the calendars in both houses create an
16-17 emergency and an imperative public necessity that the
16-18 constitutional rule requiring bills to be read on three several
16-19 days in each house be suspended, and this rule is hereby suspended.