By Heflin H.B. No. 2941
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appraisal of property for tax purposes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1.07, Tax Code, is amended by adding a
1-5 new Subsection (d) to read as follows:
1-6 (d) Notices relating to omitted property, rollbacks,
1-7 exemption denials, special valuation denials, and correction of
1-8 appraisal rolls pursuant to Section 25.25 of this Code, shall be
1-9 delivered by certified mail.
1-10 SECTION 2. Section 1.111, Tax Code, is amended by adding a
1-11 new subsection (i) to read as follows:
1-12 (i) Upon the written request of the owner of property
1-13 subject to appraisal by an appraisal district, the comptroller
1-14 shall conduct a preliminary investigation to determine whether
1-15 there is reasonable cause to believe that the appraisal review
1-16 board is in violation of Section 41.01 of this code. If the
1-17 comptroller determines that reasonable cause exists, the
1-18 comptroller shall appoint a special master who may exercise
1-19 supervision and control over operations of the appraisal review
1-20 board until the appraisal review board is in compliance with this
1-21 code. The appraisal district shall bear the costs related to the
1-22 master's supervision and control.
1-23 SECTION 3. Subchapter C, Chapter 6, Tax Code, is amended by
2-1 adding Section 6.414 to read as follows:
2-2 Sec. 6.414. TRAINING (a) The Comptroller shall establish a
2-3 program to provide training for all members of appraisal review
2-4 boards.
2-5 (b) A person appointed as a member of an appraisal review
2-6 board is required to attend and receive certification of
2-7 participation in the training program established by the
2-8 Comptroller in accordance with rules adopted by the Comptroller as
2-9 a prerequisite to participation in hearings.
2-10 SECTION 4. Subchapter C, Chapter 6, Tax Code, is amended by
2-11 adding Section 6.415 to read as follows:
2-12 Sec. 6.415. ELIGIBILITY OF FORMER OFFICERS AND DIRECTORS OF
2-13 TAX ENTITIES. Any person who has been an officer, director, or
2-14 employee of a taxing entity or an appraisal district is not
2-15 eligible to serve on an appraisal review board that reviews
2-16 appraisals of property within such taxing entity or appraisal
2-17 district.
2-18 SECTION 5. Subsection (h), Section 11.251, Tax Code, is
2-19 amended to read as follows:
2-20 (h) The chief appraiser by written notice delivered to a
2-21 property owner who claims an exemption under this section may
2-22 require the property owner to provide copies of inventory or
2-23 property records in order to determine the amount and value of
2-24 freeport goods. If the property owner fails to deliver the
2-25 information requested in the notice before approval of the
3-1 appraisal records by the appraisal review board <the 31st day after
3-2 the date the notice is delivered to the property owner>, the
3-3 property owner forfeits the right to claim or receive the exemption
3-4 for that year.
3-5 SECTION 6. Chapter 11, Tax Code, is amended by adding a new
3-6 Section 11.437 to read as follows:
3-7 Section 11.437. LATE APPLICATION FOR FREEPORT EXEMPTION.
3-8 (a) The chief appraiser shall accept and approve or deny an
3-9 application for exemption under Section 11.251 of this Code after
3-10 the deadline for filing it has passed if it is filed before
3-11 approval of the appraisal records by the appraisal review board.
3-12 (b) If an exemption under Section 11.251 of this Code is
3-13 approved when the application is filed late, the owner is liable
3-14 for a penalty of 10 percent of the difference between the amount of
3-15 tax imposed on the property and the amount that would be imposed if
3-16 the property were taxed at market value.
3-17 (c) The chief appraiser shall make an entry on the appraisal
3-18 records indicating the person's liability for the penalty and shall
3-19 deliver written notice of imposition of the penalty, explaining the
3-20 reason for its imposition, to the person.
3-21 (d) The tax assessor for a taxing unit that taxes property
3-22 subject to exemption under Section 11.251 of this Code after a late
3-23 application shall add the amount of the penalty to the owner's tax
3-24 bill, and the tax collector for the unit shall collect the penalty
3-25 at the time and in the manner he collects the tax. The amount of
4-1 the penalty constitutes a lien against the property against which
4-2 the penalty is imposed, as if it were a tax, and accrues penalty
4-3 and interest in the same manner as a delinquent tax.
4-4 SECTION 7. Subsection (a), Section 22.23, Tax Code, is
4-5 amended to read as follows:
4-6 (a) Rendition statements and property reports must be
4-7 delivered to the chief appraiser after January 1 and not later than
4-8 <before> April 15, except as provided by Section 22.02 of this
4-9 code.
4-10 SECTION 8. Subsection (f), Section 23.55, Tax Code, is
4-11 amended to read as follows:
4-12 (f) The sanctions provided by Subsection (a) of this section
4-13 do not apply if the change of use occurs as a result of the
4-14 transfer by sale, gift, or otherwise, <a sale> for right-of way or
4-15 other public purpose, or a condemnation.
4-16 SECTION 9. Section 25.25, Tax Code, is amended to read as
4-17 follows:
4-18 Sec. 25.25. Correction of Appraisal Roll. (a) Except as
4-19 provided by Chapters 41 and 42 of this code and by this section,
4-20 the appraisal roll may not be changed.
4-21 (b) The chief appraiser may change the appraisal roll at any
4-22 time to correct a name or address, a description of property, or a
4-23 clerical error that does not affect the amount of tax liability.
4-24 (C) At any time before the end of five years after January 1
4-25 of a tax year, the appraisal review board, on motion of the chief
5-1 appraiser or of a property owner, may direct by written order
5-2 changes in the appraisal roll to correct:
5-3 (1) clerical errors that affect a property owner's
5-4 liability for a tax imposed in that tax year;
5-5 (2) multiple appraisals of a property in that tax
5-6 year; <or>
5-7 (3) the inclusion of property that does not exist in
5-8 the form or at the location described in the appraisal roll, or
5-9 (4) the listing of a person as the property owner if
5-10 the person does not own the property.
5-11 (d) At any time prior to the date the taxes become
5-12 delinquent, a property owner or the chief appraiser may file a
5-13 motion with the appraisal review board to change the appraisal roll
5-14 to correct an error that resulted in an incorrect appraised value
5-15 for the owner's property. However, the error may not be corrected
5-16 unless it resulted in an appraised value that exceeds by more than
5-17 one-third the correct appraised value. If the appraisal roll is
5-18 changed under this subsection, the property owner must pay to each
5-19 affected taxing unit a late-correction penalty equal to 10 percent
5-20 of the amount of taxes as calculated on the basis of the corrected
5-21 appraised value. The roll may not be changed under this subsection
5-22 if the property was the subject of a protest brought by the
5-23 property owner under Chapter 41 or if the appraised value of the
5-24 property was established as a result of a written agreement between
5-25 the property owner or his agent and the appraisal district.
6-1 (e) A party bringing a motion under Subsection (c) or (d) of
6-2 this section is entitled to a hearing on and a determination of the
6-3 motion by the appraisal review board. Not later than 15 days
6-4 before the hearing, the board must deliver written notice of the
6-5 date, time, and place of the hearing to the chief appraiser, the
6-6 property owner, and the presiding officer of the governing body of
6-7 each taxing unit in which the property is located. The chief
6-8 appraiser, the property owner, and each taxing unit are entitled to
6-9 present evidence and argument at the hearing and to receive written
6-10 notice of the board's determination of the motion. A property
6-11 owner who files the motion must comply with the payment
6-12 requirements of Section 42.08 of this code or he forfeits his right
6-13 to a final determination of the motion.
6-14 (f) The chief appraiser shall certify each change made as
6-15 provided by this section to the assessor for each unit affected by
6-16 the change within five days after the date the change is entered.
6-17 (g) Within 45 days after receiving notice of the appraisal
6-18 review board's determination of a motion under this section, the
6-19 property owner or the chief appraiser may file suit to compel the
6-20 board to order a change in the appraisal roll as required by this
6-21 section.
6-22 (h) The chief appraiser shall change the appraisal records
6-23 and school district appraisal rolls promptly to reflect the
6-24 detachment and annexation of property among school districts under
6-25 Subchapter C or G, Chapter 36, Education Code.
7-1 <(h)> (i) The appraisal review board, on the joint motion of
7-2 the property owner and the chief appraiser filed at any time prior
7-3 to the date the taxes become delinquent, shall by written order
7-4 correct an error that resulted in an incorrect appraised value for
7-5 the owner's property.
7-6 <(i)> (j) A person who acquires property after January 1 of
7-7 the tax year at issue is entitled to file any motion that this
7-8 section authorizes the person who owned the property on January 1
7-9 of that year to file, if the deadline for filing the motion has not
7-10 passed.
7-11 <(j)> (k) If during the pendency of a motion under this
7-12 section the ownership of property subject to the motion changes,
7-13 the new owner of the property is entitled to proceed with the
7-14 motion in the same manner as the property owner who filed the
7-15 motion.
7-16 (l) Motions may be filed under Subsection (c) of this
7-17 section whether or not a protest under Chapter 41 was filed
7-18 regarding the value of the property for any year to be corrected.
7-19 (m) A hearing on a motion filed under Subsection (c) or (d)
7-20 of this Section shall be held in accordance with the provisions of
7-21 Subchapter C, Chapter 41 of this Code governing protests and shall
7-22 be subject to judicial review in accordance with Chapter 42 of this
7-23 Code.
7-24 (n) The appraisal review board shall accept and consider a
7-25 motion filed by an agent of a property owner if an agency
8-1 authorization is filed at or before the hearing on the motion.
8-2 (o) The decision of the board must be based only on
8-3 information presented at the hearing on the motion.
8-4 SECTION 10. Section 41.01, Tax Code, is amended to read as
8-5 follows:
8-6 Sec. 41.01. Duties of Appraisal Review Board. (a) The
8-7 appraisal review board shall have the authority to:
8-8 (1) determine protests initiated by property owners;
8-9 (2) determine challenges initiated by taxing units;
8-10 (3) correct clerical errors in the appraisal records
8-11 and the appraisal rolls;
8-12 (4) act on motions to correct appraisal rolls under
8-13 Section 25.25;
8-14 (5) determine whether an exemption or a partial
8-15 exemption is improperly granted and whether land is improperly
8-16 granted appraisal as provided by Subchapter C, D, or E, Chapter 23;
8-17 and
8-18 (6) take any other action or make any other
8-19 determination that this title specifically authorizes or requires.
8-20 (b) The appraisal review board may not engage in any
8-21 activity or make any determination not specifically authorized by
8-22 this Code. No other authority is granted or implied.
8-23 SECTION 11. Section 41.44, Tax Code, is amended by adding a
8-24 new Subsection (e) to read as follows:
8-25 (e) The appraisal review board shall accept and consider a
9-1 protest filed by an agent of a property owner if an agency
9-2 authorization is filed at or before the hearing on the protest.
9-3 SECTION 12. Section 41.45, Tax Code, is amended by amending
9-4 Subsections (b), (d), and (e), and adding a new Subsection (g) to
9-5 read as follows:
9-6 (b) The property owner initiating the protest is entitled to
9-7 an opportunity to appear to offer evidence or argument. The
9-8 property owner may offer his evidence or argument by affidavit
9-9 without personally appearing if he attests to the affidavit before
9-10 an officer authorized to administer oaths and submits the affidavit
9-11 to the board hearing the protest before it begins the hearing on
9-12 the protest. On receipt of an affidavit, the board shall notify
9-13 the chief appraiser. The chief appraiser may inspect the affidavit
9-14 and is entitled to a copy on request. An affidavit is sufficient
9-15 if it identifies the protesting property owner, identifies the
9-16 property that is the subject of the protest, and indicates apparent
9-17 dissatisfaction with some determination of the appraisal office.
9-18 (d) An appraisal review board consisting of more than three
9-19 members may sit in panels of not fewer than three members to
9-20 conduct protest hearings. However, the determination of a protest
9-21 heard by a panel must be made by the board. If the recommendation
9-22 of a panel is not accepted by the board, the full board shall
9-23 schedule a hearing on the protest. Notice of the hearing by the
9-24 full board shall be given and the hearing shall be conducted in
9-25 accordance with the provisions of this Subchapter.
10-1 (e) The board shall postpone the hearing to a later date if
10-2 the property owner or the owner's agent shows good cause for the
10-3 postponement or if the chief appraiser consents to the
10-4 postponement. A hearing set on the same date as a hearing
10-5 previously set by another appraisal district involving the same
10-6 property owner or the owner's agent shall be good cause for a
10-7 postponement. The hearing may not be postponed to a date less than
10-8 five or more that 15 days after the date scheduled for the original
10-9 hearing unless the date and time of the hearing as postponed are
10-10 agreed to by the appraisal review board, the property owner, and
10-11 the chief appraiser. Postponement under this subsection does not
10-12 require the delivery of additional written notice to the property
10-13 owner.
10-14 (g) Prior to or immediately upon opening a hearing on a
10-15 protest, the chief appraiser shall provide copies of all written
10-16 materials that will be provided to the appraisal review board
10-17 during the hearing to the property owner or to an agent
10-18 representing the owner at the hearing.
10-19 SECTION 13. Section 41.47, Tax Code, is amended to read as
10-20 follows:
10-21 Sec. 41.47. Determination of Protest. (a) The appraisal
10-22 review board hearing a protest shall determine the protest and make
10-23 its decision by written order.
10-24 (b) The decision of the board must be based only on
10-25 information presented at the hearing on the protest.
11-1 <(b)> (c) If on determining a protest the board finds that
11-2 the appraisal records are incorrect in some respect raised by the
11-3 protest, the board by its order shall correct the appraisal records
11-4 by changing the appraised value place on the protesting property
11-5 owner's property or by making the other changes in the appraisal
11-6 records that are necessary to conform the records to the
11-7 requirement of law. If the appraised value of a taxable property
11-8 interest, other that an interest owned by a public utility or by a
11-9 cooperative corporation organized to provide utility service, is
11-10 changed as the result of a protest or challenge, the board shall
11-11 change the appraised value of all other interests, other than an
11-12 interest owned by a public utility or by a cooperative corporation
11-13 organized to provide utility service, in the same property,
11-14 including a mineral in place, in proportion to the ownership
11-15 interests.
11-16 (d) The board shall deliver by certified mail a notice of
11-17 issuance of the order and a copy of the order to the property owner
11-18 and the chief appraiser.
11-19 (e) The notice of the issuance of the order must contain a
11-20 prominently printed statement in upper-case bold lettering
11-21 informing the property owner in clear and concise language of the
11-22 property owner's right to appeal the board's decision to district
11-23 court. The statement must describe the deadline prescribed by
11-24 Section 42.06(a) of this code for filing a written notice of
11-25 appeal, and the deadline prescribed by Section 42.21(a) of this
12-1 code for filing the petition for review with the district court.
12-2 SECTION 14. Chapter 41, Tax Code, is amended by adding a new
12-3 Section 41.48 to read as follows:
12-4 Section 41.48. SETTLEMENT AGREEMENTS. The appraisal review
12-5 board must change the appraisal records or the appraisal roll to
12-6 reflect any agreement between a property owner or the owner's agent
12-7 and the chief appraiser that is final pursuant to Section 1.111 (e)
12-8 of this Code. A property owner or the owner's agent may file suit
12-9 in a court having jurisdiction to compel the appraisal review board
12-10 to comply with this section.
12-11 SECTION 15. Subsection (c), Section 41.61, Tax Code, is
12-12 amended to read as follows:
12-13 (c) An appraisal review board may not issue a subpoena under
12-14 this section unless the board holds a hearing at which the board
12-15 determines that good cause exists for the issuance of the subpoena.
12-16 The appraisal review board shall notify all parties to the protest
12-17 and the person to whom the subpoena is to be addressed of the date,
12-18 time, and place of the hearing. All parties to the protest and the
12-19 person to whom the subpoena is to be addressed may participate in
12-20 the hearing.
12-21 SECTION 16. Section 41.66, Tax Code, is amended by adding a
12-22 new Subsection (i) to read as follows:
12-23 (i) A violation of Subsection (f) of this section is a class
12-24 B misdemeanor.
12-25 SECTION 17. Subsection (d), Section 41.67, Tax Code, is
13-1 amended to read as follows:
13-2 (d) Information that was previously requested under Section
13-3 41.461 by the protesting party <or the chief appraiser> that was
13-4 not made available to the protesting party <or the chief appraiser>
13-5 at least 14 days before the scheduled or postponed hearing may not
13-6 be used as evidence in the hearing.
13-7 SECTION 18. Subsection (b), Section 42.06, Tax Code, is
13-8 repealed and Subsections (c), (d), and (e), Section 42.06 are
13-9 amended to read as follows:
13-10 (b) <(c)> A party other than a chief appraiser or property
13-11 owner who appeals an order of an appraisal review board shall file
13-12 the notice with the chief appraiser of the appraisal district for
13-13 which the appraisal review board is established. A chief appraiser
13-14 who appeals an order of an appraisal review board shall file the
13-15 notice with the appraisal review board. A party who appeals an
13-16 order of the comptroller shall file the notice with the
13-17 comptroller.
13-18 (c) <(d)> If the chief appraiser, a taxing unit, or a county
13-19 appeals, the chief appraiser, if the appeal is of an order of the
13-20 appraisal review board, or the comptroller, if the appeal is of an
13-21 order of the comptroller, shall deliver a copy of the notice to the
13-22 property owner whose property is involved in the appeal within 10
13-23 days after the date the notice is filed.
13-24 (d) <(e)> On the filing of a notice of appeal, the chief
13-25 appraiser shall indicate where appropriate those entries on the
14-1 appraisal records that are subject to the appeal.
14-2 SECTION 19. Section 42.07, Tax Code, is amended to read as
14-3 follows:
14-4 Sec. 42.07. Costs of Appeal. (a) The reviewing court in
14-5 its discretion may charge all or part of the costs of an appeal
14-6 taken as provided by this chapter against any of the parties.
14-7 (b) If an appraisal review board is found to have violated
14-8 the provisions of Section 25.25 or Chapter 41 of this Code relating
14-9 to procedures for hearings, the reviewing court shall charge all of
14-10 the costs of an appeal taken as provided by this chapter and the
14-11 reasonable attorneys fees of the parties against the appraisal
14-12 district.
14-13 SECTION 20. Subsection (b), Section 42.43, Tax Code, is
14-14 amended to read as follows:
14-15 (b) For a refund made under this section because an
14-16 exemption under Section 11.20 that was denied by the chief
14-17 appraiser or appraisal review board is granted, the taxing unit
14-18 shall include with the refund interest on the amount refunded
14-19 calculated at an annual rate that is equal to the auction average
14-20 rate quoted on a bank discount basis for three-month treasury bills
14-21 issued by the United States government, as published by the Federal
14-22 Reserve Board, for the week in which the taxes became delinquent,
14-23 but not more that 10 percent, calculated from the delinquency date
14-24 for the taxes until the date the refund is made. For any other
14-25 refund made under this section, the taxing unity shall include with
15-1 the refund interest on the amount refunded at an annual rate of
15-2 <that is equal to the auction average rate quoted on a bank
15-3 discount basis for three-month treasury bills issued by the United
15-4 States government, as published by the Federal Reserve Board, for
15-5 the week in which the taxes became delinquent, but not more than>
15-6 eight percent, calculated from the delinquency date for the taxes
15-7 until the date the refund is made.
15-8 SECTION 21. Section 43.01, Tax Code, is amended to read as
15-9 follows:
15-10 Section 43.01. Authority to Bring Suit. A taxing unit may
15-11 sue the appraisal district that appraises property for the unit and
15-12 a property owner may sue the appraisal district that appraises
15-13 property owned by the property owner to compel the appraisal
15-14 district to comply with the provisions of this title, rules of the
15-15 comptroller, or other applicable law.
15-16 SECTION 22. Subsection (c), Section 3, Art. 8886, Texas
15-17 Revised Civil Statutes, is amended read as follows:
15-18 (c) To be eligible to register as a senior property tax
15-19 consultant under this article, an applicant must:
15-20 (1) acquire at least 25 credits as provided by
15-21 Subsections (d) through (h) of this section;
15-22 (2) have performed or supervised other persons in the
15-23 performance of property tax consulting services as the applicant's
15-24 primary occupation for at least four of the seven years preceding
15-25 the date of the application; provided, however, that "property tax
16-1 consulting services," as used in this subsection, shall not include
16-2 service with an appraisal district or an appraisal firm, and
16-3 (3) pass the examination required under this article
16-4 for registration as a senior property tax consultant or hold a
16-5 professional designation in property taxation granted by a
16-6 nonprofit, voluntary trade association, institute, or organization
16-7 that has a membership primarily composed of persons who represent
16-8 property owners in property tax and transactional tax matters and
16-9 that:
16-10 (A) has written experience and examination
16-11 requirements for granting the professional designation; and
16-12 (B) subscribes to a code of professional conduct
16-13 or ethics.
16-14 SECTION 23. The importance of this legislation and the
16-15 crowded condition of the calendars in both houses create an
16-16 emergency and an imperative public necessity that the
16-17 constitutional rule requiring bills to be read on three several
16-18 days in each house be suspended, and this rule is hereby suspended.