1-1 By: Henderson, Armbrister S.B. No. 1466
1-2 (In the Senate - Filed May 3, 1993; May 3, 1993, read first
1-3 time and referred to Committee on Finance; May 5, 1993, reported
1-4 favorably by the following vote: Yeas 12, Nays 0; May 5, 1993,
1-5 sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to appraisal districts, appraisal review boards, property
1-24 tax appraisal rolls, property tax collections, and property tax
1-25 appeals.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Subdivision (18), Section 1.04, Tax Code, is
1-28 amended to read as follows:
1-29 (18) "Clerical error" means an error:
1-30 (A) that is made by a chief appraiser, an
1-31 appraisal review board, or a property owner and that is or results
1-32 from a mistake or failure in writing, copying, transcribing,
1-33 entering or retrieving computer data, computing, or calculating; or
1-34 (B) that prevents an appraisal roll or a tax
1-35 roll from accurately reflecting a finding or determination made by
1-36 the chief appraiser, the appraisal review board, or the assessor.
1-37 However<; however>, "clerical error" under this paragraph does not
1-38 include an error that is or results from a mistake in judgment or
1-39 reasoning <in the making of the finding or determination>.
1-40 SECTION 2. Subsection (e), Section 1.111, Tax Code, is
1-41 amended to read as follows:
1-42 (e) An agreement between <an agent for> a property owner or
1-43 the owner's agent and the chief appraiser <relating to a matter
1-44 that may be protested to the appraisal review board> is <not> final
1-45 if the agreement relates to a matter:
1-46 (1) which may be protested to the appraisal review
1-47 board or on which a protest has been filed but not determined
1-48 <unless approved> by the <appraisal review> board; or
1-49 (2) which may be corrected under Section 25.25 or on
1-50 which a motion for correction under that section has been filed but
1-51 not determined by the board.
1-52 SECTION 3. Subsection (c), Section 6.41, Tax Code, is
1-53 amended to read as follows:
1-54 (c) To be eligible to serve on the board, an individual must
1-55 be a resident of the district and must have resided in the district
1-56 for at least two years. An individual who is or at any time in the
1-57 five preceding years was a <A> member of the appraisal district
1-58 board of directors or an officer or employee of the comptroller,
1-59 the appraisal office, or a taxing unit is ineligible to serve on
1-60 the board. In an appraisal district established for a county
1-61 having a population of more than 50,000, an individual who has
1-62 served for all or part of three previous terms on the appraisal
1-63 review board is ineligible to serve on the appraisal review board.
1-64 In an appraisal district established for any other county, an
1-65 individual who has served for all or part of two consecutive terms
1-66 on the appraisal review board is ineligible to serve on the
1-67 appraisal review board during a term that begins on the next
1-68 January 1 following the second of those consecutive terms.
2-1 SECTION 4. Section 25.03, Tax Code, is amended to read as
2-2 follows:
2-3 Sec. 25.03. Description. (a) Property shall be described
2-4 in the appraisal records with sufficient certainty to identify it.
2-5 (b) The description of real property may include an address
2-6 or identifier assigned to the property by the chief appraiser.
2-7 (c) The description of a manufactured home shall include the
2-8 correct identification or serial number of the home or the
2-9 Department of Housing and Urban Development label number or the
2-10 state seal number.
2-11 (d) <(b)> The comptroller may adopt rules establishing
2-12 minimum standards for descriptions of property.
2-13 SECTION 5. The heading of Section 25.22, Tax Code, is
2-14 amended to read as follows:
2-15 Sec. 25.22. SUBMISSION OF APPRAISAL RECORDS <FOR REVIEW AND
2-16 PROTEST>.
2-17 SECTION 6. Subsection (a), Section 25.22, Tax Code, is
2-18 amended to read as follows:
2-19 (a) By May 15 or as soon thereafter as practicable, the
2-20 chief appraiser shall submit the completed appraisal records to the
2-21 appraisal review board <for review and determination of protests>.
2-22 However, the chief appraiser may not submit the records until the
2-23 chief appraiser has delivered the notices required by Subsection
2-24 (d) of Section 11.45, Subsection (d) of Section 23.44, Subsection
2-25 (d) of Section 23.57, Subsection (d) of Section 23.79, Subsection
2-26 (d) of Section 23.85, Subsection (d) of Section 23.95, and Section
2-27 25.19.
2-28 SECTION 7. Subsection (d), Section 25.23, Tax Code, is
2-29 amended to read as follows:
2-30 (d) Supplemental appraisal records are subject to <review,>
2-31 protest<,> and appeal as provided by Chapters 41 and 42 <of this
2-32 code>. However, a property owner must file a notice of protest
2-33 within 30 days after the date notice is delivered as required by
2-34 Section 25.19. If a property owner files a notice of protest, the
2-35 appraisal review board shall hear and determine the protest within
2-36 30 days after the filing of the protest or as soon thereafter as
2-37 practicable. If a property owner does not file a protest within
2-38 the protest deadline, the appraisal review board shall complete its
2-39 review of the supplemental appraisal records within 30 days after
2-40 the protest deadline or as soon thereafter as practicable.
2-41 SECTION 8. Section 25.25, Tax Code, is amended by amending
2-42 Subsections (c) through (g) and adding Subsections (h) through (k)
2-43 to read as follows:
2-44 (c) At any time before the end of three <five> years after
2-45 January 1 of a tax year, the appraisal review board, on motion of
2-46 the chief appraiser or of a property owner, shall <may direct> by
2-47 written order <changes in the appraisal roll to> correct an item
2-48 covered by this subsection. This subsection applies to:
2-49 (1) clerical errors that affect a property owner's
2-50 liability for a tax imposed in that tax year;
2-51 (2) multiple appraisals of a property in that tax
2-52 year; <or>
2-53 (3) the inclusion of property that does not exist in
2-54 the form or at the location described in the appraisal roll; or
2-55 (4) an erroneous determination of the ownership of
2-56 property.
2-57 (d) The appraisal review board, on the joint motion of the
2-58 property owner and the chief appraiser filed at any time prior to
2-59 the date the taxes become delinquent, shall by written order
2-60 correct an error that resulted in an incorrect appraised value for
2-61 the owner's property.
2-62 (e) The appraisal review board, on motion of <At any time
2-63 prior to the date the taxes become delinquent,> a property owner or
2-64 the chief appraiser filed at any time prior to the date the taxes
2-65 become delinquent, shall by written order <may file a motion with
2-66 the appraisal review board to change the appraisal roll to> correct
2-67 an error that resulted in an incorrect appraised value for the
2-68 owner's property. However, the error may not be corrected unless
2-69 the incorrect <it resulted in an> appraised value is greater <that
2-70 exceeds by more> than 1.33 times <one-third> the correct appraised
3-1 value. If the appraisal roll is changed under this subsection, the
3-2 property owner must pay to each affected taxing unit a
3-3 late-correction penalty equal to 10 percent of the amount of taxes
3-4 as calculated on the basis of the corrected appraised value.
3-5 (f) The appraisal roll may not be changed under Subsection
3-6 (e) <this subsection> if, for the tax year in issue:
3-7 (1) the property was the subject of a notice of
3-8 protest filed <brought> by the property owner under Chapter 41; or
3-9 (2) <if> the appraised value of the property was
3-10 established as a result of a written agreement between the property
3-11 owner or his agent and the appraisal district.
3-12 (g) <(e)> A party bringing a motion under Subsection (c),
3-13 (d), or (e) <of this section> is entitled to a hearing on and a
3-14 determination of the motion by the appraisal review board. Not
3-15 later than 15 days before the hearing, the board must deliver
3-16 written notice of the date, time, and place of the hearing to the
3-17 chief appraiser, the property owner, and the presiding officer of
3-18 the governing body of each taxing unit in which the property is
3-19 located. The chief appraiser, the property owner, and each taxing
3-20 unit are entitled to present evidence and argument at the hearing
3-21 and to receive written notice of the board's determination of the
3-22 motion. A property owner who files the motion must comply with the
3-23 payment requirements of Section 42.08 of this code or he forfeits
3-24 his right to a final determination of the motion.
3-25 (h) <(f)> The chief appraiser shall certify each change made
3-26 as provided by this section to the assessor for each unit affected
3-27 by the change within five days after the date the change is
3-28 entered.
3-29 (i) <(g)> Within 45 days after receiving notice of the
3-30 appraisal review board's determination of a motion under this
3-31 section, the property owner or the chief appraiser may bring an
3-32 action by mandamus or otherwise <file suit> to compel the board to
3-33 order a change in the appraisal roll as required by this section.
3-34 (j) A person who acquires property after January 1 of the
3-35 tax year at issue is entitled to file any motion that this section
3-36 authorizes the person who owned the property on January 1 of that
3-37 year to file, if the deadline for filing the motion has not passed.
3-38 (k) If during the pendency of a motion under this section
3-39 the ownership of property subject to the motion changes, the new
3-40 owner of the property is entitled to proceed with the motion in the
3-41 same manner as the property owner who filed the motion.
3-42 SECTION 9. Chapter 25, Tax Code, is amended by adding
3-43 Section 25.26 to read as follows:
3-44 Sec. 25.26. COOPERATION WITH CERTAIN PUBLIC AGENCIES.
3-45 (a) The chief appraiser may provide information in the appraisal
3-46 records of the appraisal district to a public agency and assist the
3-47 public agency in the performance of its functions.
3-48 (b) The chief appraiser, the appraisal district, and the
3-49 directors of the district are not liable to a person damaged or
3-50 injured by an act of the chief appraiser under Subsection (a) or
3-51 because of the information provided by the chief appraiser.
3-52 (c) In this section, "public agency" has the meaning
3-53 assigned by Section 771.001, Health and Safety Code.
3-54 SECTION 10. Subsections (a) and (f), Section 31.01, Tax
3-55 Code, are amended to read as follows:
3-56 (a) Except as provided by Subsection (f) of this section,
3-57 the assessor for each taxing unit shall prepare and mail a tax bill
3-58 to each person in whose name the property is listed on the tax roll
3-59 or to his authorized agent. The assessor shall mail tax bills by
3-60 October 1 or as soon thereafter as practicable. The assessor shall
3-61 mail to the state agency or institution the tax bill for any
3-62 taxable property owned by the agency or institution. The agency or
3-63 institution shall pay the taxes from funds appropriated for payment
3-64 of the taxes or, if there are none, from funds appropriated for the
3-65 administration of the agency or institution. The outside of the
3-66 envelope in which a tax bill is sent must show the return address
3-67 of the taxing unit and must contain, in all capital letters, the
3-68 words "ADDRESS CORRECTION REQUESTED."
3-69 (f) A collector may provide that a tax bill not be sent
3-70 until the total amount of unpaid taxes the collector collects on
4-1 the property for all taxing units the collector serves is $15 or
4-2 more. A collector may not send a tax bill for an amount of taxes
4-3 less than $15 if before the tax bill is prepared the property owner
4-4 files a written request with the collector that a tax bill not be
4-5 sent until the total amount of unpaid taxes the collector collects
4-6 on the property is $15 or more. The request applies to all
4-7 subsequent taxes the collector collects on the property until the
4-8 property owner in writing revokes the request or the person no
4-9 longer owns the property. <Penalties and interest do not accrue
4-10 during a period when a bill is not sent under this subsection.>
4-11 SECTION 11. Chapter 31, Tax Code, is amended by adding
4-12 Section 31.015 to read as follows:
4-13 Sec. 31.015. CERTAIN TAX BILLS: PENALTY AND INTEREST
4-14 EXCLUDED. (a) If a tax bill is returned undelivered to the taxing
4-15 unit by the United States Postal Service, penalties and interest on
4-16 the amount of the tax to which the bill applies shall be waived if:
4-17 (1) the taxing unit does not send another tax bill on
4-18 the property in question at least 21 days before the delinquency
4-19 date to the current mailing address furnished by the property owner
4-20 and the property owner establishes that a current mailing address
4-21 was furnished to the appraisal district by the property owner for
4-22 the tax bill before September 1 of the year in which the tax is
4-23 assessed; or
4-24 (2) the tax bill was returned because of an act or
4-25 omission of an officer, employee, or agent of the taxing unit or
4-26 the appraisal district in which the taxing unit participates and
4-27 the taxing unit or appraisal district did not send another tax bill
4-28 on the property in question at least 21 days before the delinquency
4-29 date to the proper mailing address.
4-30 (b) For the purposes of this section, a property owner is
4-31 considered to have furnished a current mailing address to the
4-32 taxing unit or to the appraisal district if the current address is
4-33 expressly communicated to the appraisal district in writing or if
4-34 the appraisal district received a copy of a recorded instrument
4-35 transferring ownership of real property and the current mailing
4-36 address of the new owner is included in the instrument or in
4-37 accompanying communications or letters of transmittal.
4-38 (c) A request for a waiver of penalties and interest under
4-39 this section must be made within six months of the delinquency
4-40 date.
4-41 (d) Penalties and interest do not accrue during the period
4-42 that a bill is not sent under Section 31.01(f).
4-43 (e) A property owner is not entitled to relief under this
4-44 section if the property owner or the owner's agent furnished an
4-45 incorrect mailing address to the appraisal district or the taxing
4-46 unit or to an employee or agent of the district or unit.
4-47 SECTION 12. Section 32.01, Tax Code, is amended to read as
4-48 follows:
4-49 Sec. 32.01. TAX LIEN. (a) On January 1 of each year, a tax
4-50 lien attaches to property to secure the payment of all taxes,
4-51 penalties, and interest ultimately imposed for the year on the
4-52 <that> property, whether or not the taxes are imposed in the year
4-53 the lien attaches. The lien exists in favor of each taxing unit
4-54 having power to tax the property.
4-55 (b) A tax lien on inventory, furniture, equipment, or other
4-56 personal property is a lien in solido and attaches to all
4-57 inventory, furniture, equipment, and other personal property that
4-58 the property owner owns on January 1 of the year the lien attaches
4-59 or that the property owner subsequently acquires.
4-60 (c) The lien under this section is perfected on attachment
4-61 and, except as provided by Section 32.03(b), perfection requires no
4-62 further action by the taxing unit.
4-63 SECTION 13. Section 33.01, Tax Code, is amended by adding
4-64 Subsection (d) to read as follows:
4-65 (d) A delinquent tax continues to accrue penalties and
4-66 interest under this section after a judgment establishing liability
4-67 for the tax has been entered by a court. The rate of interest need
4-68 not be stated in the judgment.
4-69 SECTION 14. Section 33.41, Tax Code, is amended by adding
4-70 Subsection (c) to read as follows:
5-1 (c) In a suit brought under Subsection (a), a taxing unit
5-2 may foreclose any other lien on the property in favor of the taxing
5-3 unit or enforce personal liability of the property owner for the
5-4 other lien.
5-5 SECTION 15. Subsection (a), Section 33.48, Tax Code, is
5-6 amended to read as follows:
5-7 (a) In addition to other costs authorized by law, a taxing
5-8 unit is entitled to recover the following costs and expenses in a
5-9 suit to collect a delinquent tax:
5-10 (1) all usual court costs, including the cost of
5-11 serving process;
5-12 (2) costs of filing for record a notice of lis pendens
5-13 against property;
5-14 (3) expenses of foreclosure sale;
5-15 (4) <3> reasonable expenses, subject to approval by
5-16 the court, that are incurred by the taxing unit in determining the
5-17 name, identity, and location of necessary parties and in procuring
5-18 necessary legal descriptions of the property on which a delinquent
5-19 tax is due; and
5-20 (5) <4> reasonable attorney's fees approved by the
5-21 court and not exceeding 15 percent of the total amount of taxes,
5-22 penalties, and interest <adjudged> due the unit.
5-23 SECTION 16. Section 33.51, Tax Code, is amended to read as
5-24 follows:
5-25 Sec. 33.51. WRIT OF POSSESSION. If the court orders the
5-26 foreclosure of a tax lien and the sale of real property, the
5-27 judgment shall provide for the issuance of a writ of possession to
5-28 the purchaser at the sale or his assigns within 20 days after the
5-29 period of redemption expires. On the motion of the purchaser or
5-30 the purchaser's assigns, the court shall issue a writ of possession
5-31 to the purchaser or the purchaser's assigns at any time after the
5-32 sale.
5-33 SECTION 17. Section 33.52, Tax Code, is amended to read as
5-34 follows:
5-35 Sec. 33.52. JUDGMENT FOR CURRENT TAXES. (a) If the court
5-36 orders the foreclosure of a tax lien and the sale of real property,
5-37 the judgment shall, on motion of the taxing unit, order that the
5-38 taxing unit recover from the proceeds of the sale the amount of tax
5-39 on the property for the current tax year <prorated to the date of
5-40 the judgment>.
5-41 (b) If the amount of tax for the current tax year has not
5-42 been determined on the date of judgment, the court shall, on motion
5-43 of the taxing unit, order recovery of the amount of tax imposed on
5-44 the property for the preceding tax year<, prorated to the date of
5-45 judgment>.
5-46 (c) If the judgment does not provide for recovery of taxes
5-47 imposed for the current tax year or for recovery of estimated taxes
5-48 that cannot then be calculated for the current year, the real
5-49 property is subject to the taxes for the current tax year and to
5-50 the lien that secures those taxes, and any subsequent purchaser
5-51 takes the property subject to those taxes and the tax lien.
5-52 SECTION 18. Subsections (a) and (c), Section 33.71, Tax
5-53 Code, are amended to read as follows:
5-54 (a) The court may, in delinquent tax suits, for good cause
5-55 appoint a master in chancery for each case as desired, who shall be
5-56 a citizen of this state and not an attorney for either party to the
5-57 action, nor related to either party, who shall perform all of the
5-58 duties required by the court, be under orders of the court, and
5-59 have the power the master of chancery has in a court of equity. A
5-60 person who has served as a master in chancery under this section
5-61 for four or more years is not eligible for appointment under this
5-62 subsection.
5-63 (c) Subject to the limitations and specifications stated in
5-64 the order, the master may:
5-65 (1) to the extent that the master is specifically
5-66 authorized by this code or by the Texas Rules of Civil Procedure
5-67 and subsequent amendments of those rules, regulate all proceedings
5-68 in every hearing before the master and do all acts and take all
5-69 measures necessary or proper for the efficient performance of
5-70 duties under the order;
6-1 (2) require the production of evidence upon all
6-2 matters embraced in the reference, including the production of
6-3 books, papers, vouchers, documents, and other writings applicable
6-4 to the case;
6-5 (3) rule upon the admissibility of evidence, unless
6-6 otherwise directed by the order of reference;
6-7 (4) put witnesses on oath, and examine them; and
6-8 (5) call the parties to the action and examine them
6-9 upon oath.
6-10 SECTION 19. Subsection (a), Section 34.05, Tax Code, is
6-11 amended to read as follows:
6-12 (a) If property is sold to a taxing unit that is a party to
6-13 the judgment, the taxing unit may sell the property at any time,
6-14 subject to any right of redemption existing at the time of the
6-15 sale. In selling the property, the taxing unit may but is not
6-16 required to use the procedures provided by Section 272.001, Local
6-17 Government Code.
6-18 SECTION 20. Section 34.21, Tax Code, is amended to read as
6-19 follows:
6-20 Sec. 34.21. Right of Redemption. (a) The owner of real
6-21 property sold at a tax sale to a purchaser other than a taxing unit
6-22 may redeem the property within two years after the date on which
6-23 the purchaser's deed is filed for record by paying the purchaser
6-24 the amount the purchaser <he> bid for the property, the amount of
6-25 the deed recording fee, and the amount paid by the purchaser as
6-26 taxes, penalties, interest, and costs on the property, plus 25
6-27 percent of the aggregate total if the property is redeemed during
6-28 the first year of the redemption period or 50 percent of the
6-29 aggregate total if the property is redeemed during the second year
6-30 of the redemption period.
6-31 (b) If property bid off to a taxing unit under Section
6-32 34.01(c) has not been resold by the taxing unit, the owner having a
6-33 right of redemption may redeem the property within two years after
6-34 the date on which the deed of the taxing unit is filed for record
6-35 by paying the taxing unit the amount of the judgment against the
6-36 property or the market value of the property as specified in that
6-37 judgment, whichever is less, plus the amount of the fee for filing
6-38 the taxing unit's deed.
6-39 (c) If real property has been resold by the taxing unit
6-40 under Section 34.05, the owner of the property having a right of
6-41 redemption may redeem the property within two years after the date
6-42 on which the taxing unit files for record the deed from the sheriff
6-43 or constable by paying the person who purchased the property from
6-44 the taxing unit the amount the purchaser paid for the property, the
6-45 amount of the fee for filing the purchaser's deed for record, and
6-46 the amount the purchaser paid in relation to the property as taxes,
6-47 penalties, interest, and costs, plus 25 percent of the aggregate
6-48 total if the property is redeemed in the first year of the
6-49 redemption period or 50 percent of the aggregate total if the
6-50 property is redeemed in the second year of the redemption period.
6-51 (d) If the owner of the property makes an affidavit that the
6-52 owner <he> has made diligent search in the county in which the
6-53 property is located for the purchaser at the tax sale or for the
6-54 purchaser at resale and has failed to find that purchaser <him>,
6-55 that the purchaser <at the sale> is not a resident of the county in
6-56 which the property is located, that the owner <he> and the
6-57 purchaser cannot agree on the amount of redemption money due, or
6-58 that the purchaser refuses to give the owner <him> a quitclaim deed
6-59 to the property, the owner may redeem the land by paying the
6-60 required amount as prescribed by this section <Subsection (a)> to
6-61 the assessor-collector for the county in which the property is
6-62 located. The assessor-collector receiving the payment shall give
6-63 the owner a signed receipt witnessed by two persons. The receipt,
6-64 when recorded, is notice to all persons that the property described
6-65 has been redeemed. The assessor-collector shall on demand pay the
6-66 money received by the assessor-collector <him> to the purchaser <at
6-67 the tax sale>.
6-68 (e) <(c)> The right of redemption does not grant or reserve
6-69 in the former owner of the real property the right to the use or
6-70 possession of the property, or to receive rents, income, or other
7-1 benefits from the property while the right of redemption exists.
7-2 SECTION 21. Section 41.01, Tax Code, is amended to read as
7-3 follows:
7-4 Sec. 41.01. DUTIES <SCOPE> OF APPRAISAL REVIEW BOARD. The
7-5 appraisal review board shall <examine the appraisal records for the
7-6 appraisal district to determine whether>:
7-7 (1) determine protests initiated by property owners
7-8 <appraisals are substantially uniform in terms of their
7-9 relationship to the appraised value required by law>;
7-10 (2) determine challenges initiated by taxing units <an
7-11 exemption or a partial exemption is improperly granted>;
7-12 (3) correct clerical errors in the appraisal records
7-13 and the appraisal rolls <land is improperly granted appraisal as
7-14 provided by Subchapter C, D, or E, Chapter 23 of this code>; <or>
7-15 (4) act on motions to correct appraisal rolls under
7-16 Section 25.25;
7-17 (5) determine whether an exemption or a partial
7-18 exemption is improperly granted and whether land is improperly
7-19 granted appraisal as provided by Subchapter C, D, or E, Chapter 23;
7-20 and
7-21 (6) take any other action or make any other
7-22 determination that this title specifically authorizes or requires
7-23 <the records do not conform to the requirements of law in any other
7-24 respect>.
7-25 SECTION 22. Section 41.02, Tax Code, is amended to read as
7-26 follows:
7-27 Sec. 41.02. Action by Board. After making a determination
7-28 or decision under Section 41.01, <If after reviewing the appraisal
7-29 records> the appraisal review board <finds that appraisals are not
7-30 substantially uniform or that the records do not conform to the
7-31 requirements of law in some other respect, the board> shall <refer
7-32 the matter to the appraisal office and> by written order <shall>
7-33 direct the chief appraiser to correct or change the appraisal <make
7-34 the reappraisals or corrections in the> records or the appraisal
7-35 roll <that are necessary> to conform the appraisal records or the
7-36 appraisal roll to the board's determination or decision
7-37 <requirements of law>.
7-38 SECTION 23. The heading of Section 41.12, Tax Code, is
7-39 amended to read as follows:
7-40 Sec. 41.12. APPROVAL <COMPLETION> OF APPRAISAL RECORDS
7-41 <REVIEW> BY BOARD.
7-42 SECTION 24. Subsection (a), Section 41.12, Tax Code, is
7-43 amended to read as follows:
7-44 (a) By July 20, the <The> appraisal review board shall:
7-45 (1) hear and determine all or substantially all timely
7-46 filed protests;
7-47 (2) determine all timely filed challenges;
7-48 (3) <complete its review of the appraisal records,
7-49 approve the records, and> submit a list of its approved changes in
7-50 the records to the chief appraiser; and
7-51 (4) approve the records <by July 20>.
7-52 SECTION 25. Subsections (a) and (b), Section 41.47, Tax
7-53 Code, are amended to read as follows:
7-54 (a) Except as provided by Subsection (b), the <The>
7-55 appraisal review board hearing a protest shall determine the
7-56 protest and make its decision by written order.
7-57 (b) If the property owner or the owner's agent and the chief
7-58 appraiser enter into an agreement that resolves a protest that has
7-59 been filed but not determined by the board, the board shall dismiss
7-60 the protest by written order.
7-61 (c) If on determining a protest the board finds that the
7-62 appraisal records are incorrect in some respect raised by the
7-63 protest, the board by its order shall correct the appraisal records
7-64 by changing the appraised value placed on the protesting property
7-65 owner's property or by making the other changes in the appraisal
7-66 records that are necessary to conform the records to the
7-67 requirements of law. If the appraised value of a taxable property
7-68 interest, other than an interest owned by a public utility or by a
7-69 cooperative corporation organized to provide utility service, is
7-70 changed as the result of a protest or challenge, the board shall
8-1 change the appraised value of all other interests, other than an
8-2 interest owned by a public utility or by a cooperative corporation
8-3 organized to provide utility service, in the same property,
8-4 including a mineral in place, in proportion to the ownership
8-5 interests.
8-6 SECTION 26. Subsection (g), Section 41.66, Tax Code, is
8-7 amended to read as follows:
8-8 (g) At the beginning of a hearing on a protest, each member
8-9 of the appraisal review board hearing the protest must sign an
8-10 affidavit stating that in determining the protest, the member will
8-11 not consider any information or evidence which is not presented to
8-12 the board by the parties during the protest hearing and that the
8-13 board member has not communicated with another person in violation
8-14 of Subsection (f). If a board member has communicated with another
8-15 person in violation of Subsection (f), the member must be recused
8-16 from the proceeding and may not hear, deliberate on, or vote on the
8-17 determination of the protest. The board of directors of the
8-18 appraisal district shall adopt and implement a policy concerning
8-19 the temporary replacement of an appraisal review board member who
8-20 has communicated with another person in violation of Subsection
8-21 (f).
8-22 SECTION 27. Subsections (b) and (d), Section 42.21, Tax
8-23 Code, are amended to read as follows:
8-24 (b) A petition for review brought under Section 42.02 must
8-25 be brought against the owner of the property involved in the
8-26 appeal. A petition for review brought under Section 42.031 must be
8-27 brought against the appraisal district and against the owner of the
8-28 property involved in the appeal. A petition for review brought
8-29 under Subdivision (2) or (3) of Section 42.01 or under Section
8-30 42.03 must be brought against the comptroller. Any other petition
8-31 for review under this chapter must be brought against the appraisal
8-32 district. <A petition for review is not required to be brought
8-33 against the appraisal review board, but may be brought against the
8-34 appraisal review board in addition to any other required party, if
8-35 appropriate.>
8-36 (d) An appraisal district is served by service on the chief
8-37 appraiser at any time or by service on any other officer or
8-38 employee of the appraisal district present at the appraisal office
8-39 at a time when the appraisal office is open for business with the
8-40 public. <An appraisal review board is served by service on the
8-41 chairman of the appraisal review board.> Citation of a party is
8-42 issued and served in the manner provided by law for civil suits
8-43 generally.
8-44 SECTION 28. Section 42.225, Tax Code, is amended to read as
8-45 follows:
8-46 Sec. 42.225. PROPERTY OWNER'S RIGHT TO APPEAL THROUGH
8-47 <BINDING> ARBITRATION. (a) On motion by a <A> property owner who
8-48 appeals an appraisal review board order under this chapter, the
8-49 court shall submit the appeal to nonbinding <is entitled to have
8-50 the appeal resolved through binding> arbitration. The court shall
8-51 order the nonbinding arbitration to be conducted in accordance with
8-52 Chapter 154, Civil Practice and Remedies Code. If the appeal
8-53 proceeds to trial following an arbitration award or finding under
8-54 this subsection, either party may introduce the award or finding
8-55 into evidence. In addition, the court shall award the property
8-56 owner reasonable attorney fees if the determination of the appeal
8-57 results in an appraised value for the owner's property that is
8-58 equal to or less than the appraised value under the arbitration
8-59 award or finding. However, the amount of an award of attorney fees
8-60 under this subsection is subject to the same limitations as those
8-61 provided by Section 42.29.
8-62 (b) On motion by the property owner, the court shall order
8-63 the parties to an appeal of an appraisal review board order under
8-64 this chapter to submit to binding arbitration if the appraisal
8-65 district joins in the motion or consents to the arbitration. A
8-66 binding arbitration award under this subsection is binding and
8-67 enforceable in the same manner as a contract obligation <and shall
8-68 appoint an impartial third party to conduct the arbitration. The
8-69 impartial third party is appointed by the court and serves as
8-70 provided by Subchapter C, Chapter 154, Civil Practice and Remedies
9-1 Code>.
9-2 (c) The court shall appoint an impartial third party to
9-3 conduct an arbitration under this section. The impartial third
9-4 party is appointed by the court and serves as provided by
9-5 Subchapter C, Chapter 154, Civil Practice and Remedies Code.
9-6 (d) Each party or counsel for the party may present the
9-7 position of the party before the impartial third party, who must
9-8 render a specific arbitration award <resolving the appeal>.
9-9 <(d) Except as provided by Subsection (e), an arbitration
9-10 award is binding and enforceable in the same manner as a contract
9-11 obligation if:>
9-12 <(1) in a motion filed under Subsection (b), the
9-13 property owner stipulates that the award is to be binding on all
9-14 the parties; or>
9-15 <(2) before the rendition of the award, the parties
9-16 agree to be bound.>
9-17 (e) Prior to submission of a case to arbitration the court
9-18 shall determine matters related to jurisdiction, venue, and
9-19 interpretation of the law. <An arbitration award is not binding if
9-20 it results or would result in an amount of taxes on the property
9-21 that exceeds the amount of taxes assessed on the property under the
9-22 order from which the appeal is taken.>
9-23 (f) Except as provided in this section, an <An> arbitration
9-24 award may include any remedy or relief that a court could order
9-25 under this chapter.
9-26 SECTION 29. Section 42.28, Tax Code, is amended to read as
9-27 follows:
9-28 Sec. 42.28. Appeal of District Court Judgment. A party may
9-29 appeal the final judgment of the district court as provided by law
9-30 for appeal of civil suits generally, except that an appeal bond is
9-31 not required of the chief appraiser, the appraisal district, the
9-32 county, the comptroller, or the commissioners court.
9-33 SECTION 30. Section 4, Article 1.05, Title 79, Revised
9-34 Statutes (Article 5069-1.05, Vernon's Texas Civil Statutes), is
9-35 amended to read as follows:
9-36 Sec. 4. This article does not apply to a judgment that earns
9-37 interest that is set by Title 1 or 2, Tax Code.
9-38 SECTION 31. Subsection (b), Section 34.23, Tax Code, is
9-39 repealed.
9-40 SECTION 32. (a) This Act takes effect September 1, 1993.
9-41 (b) The changes in law made by Sections 1 and 8 of this Act
9-42 apply to any motion filed under Section 25.25, Tax Code, as amended
9-43 by this Act, on or after September 1, 1993, and to any motion filed
9-44 under that section that is pending before an appraisal review board
9-45 on that date.
9-46 (c) The change in law made by Section 3 of this Act relating
9-47 to the qualifications of persons appointed to appraisal review
9-48 boards applies only to an appointment to an appraisal review board
9-49 on or after the effective date of this Act.
9-50 (d) The changes in law made by Sections 10 and 11 of this
9-51 Act apply to a tax bill sent on or after September 1, 1993. The
9-52 application of penalties and interest on property taxes for tax
9-53 bills sent before that date is governed by the law in effect at the
9-54 time the tax bill was sent, and that law is continued in effect for
9-55 that purpose.
9-56 (e) The change in law made by Section 18 of this Act
9-57 relating to the eligibility of a person to serve as a master in
9-58 chancery applies only to an appointment of a master in chancery on
9-59 or after the effective date of this Act.
9-60 (f) The change in law made by Section 28 applies to all
9-61 appeals pending on or filed on or after the effective date of this
9-62 Act.
9-63 (g) The change in law made by Section 29 of this Act
9-64 relating to the requirement of an appeal bond applies only to an
9-65 appeal from a judgment of a district court filed on or after the
9-66 effective date of this Act.
9-67 SECTION 33. The importance of this legislation and the
9-68 crowded condition of the calendars in both houses create an
9-69 emergency and an imperative public necessity that the
9-70 constitutional rule requiring bills to be read on three several
10-1 days in each house be suspended, and this rule is hereby suspended.
10-2 * * * * *
10-3 Austin,
10-4 Texas
10-5 May 5, 1993
10-6 Hon. Bob Bullock
10-7 President of the Senate
10-8 Sir:
10-9 We, your Committee on Finance to which was referred S.B. No. 1466,
10-10 have had the same under consideration, and I am instructed to
10-11 report it back to the Senate with the recommendation that it do
10-12 pass and be printed.
10-13 Montford,
10-14 Chairman
10-15 * * * * *
10-16 WITNESSES
10-17 FOR AGAINST ON
10-18 ___________________________________________________________________
10-19 Name: M. Frank Powell x
10-20 Representing: Tx Assn Property Tax Profssnls
10-21 City: Austin
10-22 -------------------------------------------------------------------
10-23 Name: Breck Bostwick x
10-24 Representing: Tx Assn Property Tax Profssnl
10-25 City: Austin
10-26 -------------------------------------------------------------------