1-1 By: Heflin (Senate Sponsor - Armbrister) H.B. No. 2941
1-2 (In the Senate - Received from the House May 15, 1995;
1-3 May 18, 1995, read first time and referred to Committee on Finance;
1-4 May 25, 1995, reported favorably, as amended, by the following
1-5 vote: Yeas 9, Nays 0; May 25, 1995, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Moncrief
1-7 Amend H.B. 2941 by striking all below the enacting clause and
1-8 substituting the following:
1-9 SECTION 1. Section 1.07, Tax Code, is amended by adding
1-10 Subsection (d) to read as follows:
1-11 (d) A notice required by Section 11.45, 23.44(d), 23.57(d),
1-12 23.79(d), 23.85, or 23.95(e) shall be delivered by certified mail.
1-13 SECTION 2. Subchapter C, Chapter 6, Tax Code, is amended by
1-14 adding Section 6.414 to read as follows:
1-15 Sec. 6.414. TRAINING. (a) The comptroller shall establish
1-16 minimum standards for training all members of appraisal review
1-17 boards.
1-18 (b) A person appointed as a member of an appraisal review
1-19 board is required to attend and receive certification of
1-20 participation in a local training program in the community where
1-21 the member serves that is approved by the comptroller in accordance
1-22 with rules adopted by the comptroller as a prerequisite to
1-23 participation in hearings.
1-24 SECTION 3. Subchapter C, Chapter 6, Tax Code, is amended by
1-25 adding Section 6.415 to read as follows:
1-26 Sec. 6.415. ELIGIBILITY OF FORMER OFFICERS AND DIRECTORS OF
1-27 TAX ENTITIES IN COUNTIES OF MORE THAN 50,000 POPULATION. Any
1-28 person who has been an elected or appointed officer, director,
1-29 employee in a tax collection office, or employee in a budgetary or
1-30 fiscal planning office of a taxing unit or an appraisal district in
1-31 a county of more than 50,000 population is not eligible to serve on
1-32 an appraisal review board that reviews appraisals of property
1-33 within such taxing entity or appraisal district.
1-34 SECTION 4. Subsection (h), Section 11.251, Tax Code, is
1-35 amended to read as follows:
1-36 (h) The chief appraiser by written notice delivered to a
1-37 property owner who claims an exemption under this section may
1-38 require the property owner to provide copies of inventory or
1-39 property records in order to determine the amount and value of
1-40 freeport goods. If the property owner fails to deliver the
1-41 information requested in the notice before approval of the
1-42 appraisal records by the appraisal review board <the 31st day after
1-43 the date the notice is delivered to the property owner>, the
1-44 property owner forfeits the right to claim or receive the exemption
1-45 for that year.
1-46 SECTION 5. Subchapter C, Chapter 11, Tax Code, is amended by
1-47 adding Section 11.437 to read as follows:
1-48 Sec. 11.437. LATE APPLICATION FOR FREEPORT EXEMPTION. (a)
1-49 The chief appraiser shall accept and approve or deny an application
1-50 for exemption under Section 11.251 of this code after the deadline
1-51 for filing it has passed if it is filed before approval of the
1-52 appraisal records by the appraisal review board.
1-53 (b) If an exemption under Section 11.251 of this code is
1-54 approved when the application is filed late, the owner is liable
1-55 for a penalty of 10 percent of the difference between the amount of
1-56 tax imposed on the property and the amount that would be imposed if
1-57 the property were taxed at market value.
1-58 (c) The chief appraiser shall make an entry on the appraisal
1-59 records indicating the person's liability for the penalty and shall
1-60 deliver written notice of imposition of the penalty, explaining the
1-61 reason for its imposition, to the person.
1-62 (d) The tax assessor for a taxing unit that taxes property
1-63 subject to exemption under Section 11.251 of this code after a late
1-64 application shall add the amount of the penalty to the owner's tax
1-65 bill, and the tax collector for the unit shall collect the penalty
1-66 at the time and in the manner he collects the tax. The amount of
1-67 the penalty constitutes a lien against the property against which
1-68 the penalty is imposed, as if it were a tax, and accrues penalty
2-1 and interest in the same manner as a delinquent tax.
2-2 SECTION 6. Subsection (a), Section 22.23, Tax Code, is
2-3 amended to read as follows:
2-4 (a) Rendition statements and property reports must be
2-5 delivered to the chief appraiser after January 1 and not later than
2-6 <before> April 15, except as provided by Section 22.02 of this
2-7 code.
2-8 SECTION 7. Subsection (f), Section 23.55, Tax Code, is
2-9 amended to read as follows:
2-10 (f) The sanctions provided by Subsection (a) of this section
2-11 do not apply if the change of use occurs as a result of the
2-12 transfer by sale, gift, or otherwise, <a sale> for right-of-way or
2-13 other public purpose, or a condemnation.
2-14 SECTION 8. Subsections (a) and (c), Section 33.01, Tax Code,
2-15 are amended to read as follows:
2-16 (a) A delinquent tax incurs a penalty of six percent of the
2-17 amount of the tax for the first calendar month it is delinquent
2-18 plus one percent for each additional month or portion of a month
2-19 the tax remains unpaid prior to July 1 of the year in which it
2-20 becomes delinquent. However, a tax delinquent on July 1 incurs a
2-21 total penalty of twelve percent of the amount of the delinquent tax
2-22 without regard to the number of months the tax has been delinquent.
2-23 A delinquent tax continues to incur the penalty provided by this
2-24 subsection as long as the tax remains unpaid, regardless of whether
2-25 a judgment for the delinquent tax has been rendered.
2-26 (c) A delinquent tax accrues interest at a rate of one
2-27 percent for each month or portion of a month the tax remains
2-28 unpaid. Interest payable under this section is to compensate the
2-29 taxing unit for revenue lost because of the delinquency. A
2-30 delinquent tax continues to accrue interest under this subsection
2-31 as long as the tax remains unpaid, regardless of whether a judgment
2-32 for the delinquent tax has been rendered.
2-33 SECTION 9. Section 33.07(a), Tax Code, is amended to read as
2-34 follows:
2-35 (a) A taxing unit or appraisal district may provide, in the
2-36 manner required by law for official action by the body, that taxes
2-37 that remain delinquent on July 1 of the year in which they become
2-38 delinquent incur an additional penalty to defray costs of
2-39 collection, if the unit or district or another unit that collects
2-40 taxes for the unit has contracted with an attorney pursuant to
2-41 Section 6.30 of this code. The amount of the penalty may not
2-42 exceed 15 percent of the amount of taxes, penalty, and interest
2-43 due. A delinquent tax incurs the penalty provided by this
2-44 subsection regardless of whether a judgment for the delinquent tax
2-45 has been rendered.
2-46 SECTION 10. Section 4, Article 1.05, Title 79, Revised
2-47 Statutes (Article 5069-1.05, Vernon's Texas Civil Statutes), is
2-48 amended to read as follows:
2-49 Sec. 4. This article does not apply to a judgment:
2-50 (1) in favor of a taxing unit in a suit to collect a
2-51 delinquent tax under Subchapter C, Chapter 33, Tax Code; or
2-52 (2) that earns interest that is set by Title 2, Tax
2-53 Code.
2-54 SECTION 11. Section 33.41, Tax Code, is amended by adding
2-55 Subsection (d) to read as follows:
2-56 (d) A suit brought under Subsection (a) against the personal
2-57 representative of an estate who is acting under the control and
2-58 supervision of a probate court need not be filed in that probate
2-59 court, but may instead be brought in a court of competent
2-60 jurisdiction of the county in which the tax was imposed. All
2-61 provisions relative to the presentment of a claim against an estate
2-62 as a prerequisite for judgment shall not be construed as to apply
2-63 to any claim for delinquent taxes owing to a taxing unit.
2-64 SECTION 12. Subsection (c), Section 33.47, Tax Code, is
2-65 amended to read as follows:
2-66 (c) In a suit to collect a tax, a tax receipt issued under
2-67 Section 31.075 of this code, or an electronic replica of the
2-68 receipt, that states that a tax has been paid is <constitutes>
2-69 prima facie evidence that the tax has been paid as stated by the
2-70 receipt or electronic replica.
3-1 SECTION 13. Section 33.51, Tax Code, is amended to read as
3-2 follows:
3-3 Sec. 33.51. Writ of Possession. If the court orders the
3-4 foreclosure of a tax lien and the sale of real property, the
3-5 judgment shall provide for the issuance by the clerk of said court
3-6 of a writ of possession to the purchaser at the sale or to the
3-7 purchaser's <his> assigns no sooner than 20 days following the date
3-8 on which the purchaser's deed from the sheriff or constable is
3-9 filed of record <within 20 days after the period of redemption
3-10 expires>.
3-11 SECTION 14. Section 33.52, Tax Code, is amended to read as
3-12 follows:
3-13 Sec. 33.52. Judgment for Current Taxes. (a) If the court
3-14 orders the foreclosure of a tax lien and the sale of real property,
3-15 the judgment shall, on motion of the taxing unit, order that the
3-16 taxing unit recover from the proceeds of the sale the amount of tax
3-17 on the property for the current tax year <prorated to the day of
3-18 judgment>.
3-19 (b) If the amount of tax for the current tax year has not
3-20 been determined on the date of judgment, the court shall, on motion
3-21 of the taxing unit, order recovery of the amount of tax imposed on
3-22 the property for the preceding tax year<, prorated to the date of
3-23 judgment>.
3-24 (c) If the judgment does not provide for recovery of taxes
3-25 imposed for the current tax year, or for recovery of estimated
3-26 taxes that cannot then be calculated for the current year, the real
3-27 property is subject to the taxes for the current tax year and to
3-28 the lien that secures those taxes, and any subsequent purchaser
3-29 takes the property subject to those taxes and the tax lien.
3-30 SECTION 15. Subsection (a), Section 34.05, Tax Code, is
3-31 amended to read as follows:
3-32 (a) If property is sold to a taxing unit that is a party to
3-33 the judgment, the taxing unit may sell the property at any time,
3-34 subject to any right of redemption existing at the time of the
3-35 sale. In selling the property, the taxing unit may, but is not
3-36 required to, use the procedures provided by Section 272.001, Local
3-37 Government Code.
3-38 SECTION 16. Section 34.21, Tax Code, is amended to read as
3-39 follows:
3-40 Sec. 34.21. Right of Redemption. (a) The owner of real
3-41 property sold at a tax sale to a purchaser other than a taxing unit
3-42 and that was the residence homestead of the owner or that was land
3-43 designated for agricultural use when the suit to collect the tax
3-44 was filed may redeem the property within two years after the date
3-45 on which the purchaser's deed is filed for record by paying the
3-46 purchaser the amount the purchaser bid for the property, the amount
3-47 of the deed recording fee, and the amount paid by the purchaser as
3-48 taxes, penalties, interest, and costs on the property, plus a
3-49 redemption premium of 25 percent of the aggregate total if the
3-50 property is redeemed during the first year of the redemption period
3-51 or 50 percent of the aggregate total if the property is redeemed
3-52 during the second year of the redemption period.
3-53 (b) If property that was the owner's residence homestead or
3-54 was land designated for agricultural use when the suit to collect
3-55 the tax was filed is bid off to a taxing unit under Section
3-56 34.01(c) and has not been resold by the taxing unit, the owner
3-57 having a right of redemption may redeem the property within two
3-58 years after the date on which the deed or the taxing unit is filed
3-59 for record by paying the taxing unit the amount of the judgment
3-60 against the property or the market value of the property as
3-61 specified in that judgment, whichever is less, plus the amount of
3-62 the fee for filing the taxing unit's deed and the amount expended
3-63 by the taxing unit as costs on the property.
3-64 (c) If real property that was the owner's residence
3-65 homestead or was land designated for agricultural use when the suit
3-66 to collect the tax was filed has been resold by the taxing unit
3-67 under Section 34.05, the owner of the property having a right of
3-68 redemption may redeem the property within two years after the date
3-69 on which the taxing unit files for record the deed from the sheriff
3-70 or constable by paying the person who purchased the property from
4-1 the taxing unit the amount the purchaser paid for the property, the
4-2 amount of fee for filing the purchaser's deed for record, the
4-3 amount paid by the purchaser as taxes, penalties, interest, and
4-4 costs on the property, plus a redemption premium of 25 percent of
4-5 the aggregate total if the property is redeemed in the first year
4-6 of the redemption period or 50 percent of the aggregate total if
4-7 the property is redeemed in the second year of the redemption
4-8 period.
4-9 (d) <(b)> The owner of real property sold at a tax sale
4-10 other than property that was the residence homestead of the owner
4-11 or that was land designated for agricultural use when the suit to
4-12 collect the tax was filed <covered by Subsection (a)> may redeem
4-13 the property <within> in the same manner and by paying the same
4-14 amounts as prescribed by Subsection (a), (b), or (c), as
4-15 applicable, except that:
4-16 (1) the owner's right of redemption expires after six
4-17 months following <after> the date on which the purchaser's or
4-18 taxing unit's deed is filed for record; and
4-19 (2) the redemption premium payable by the owner to a
4-20 purchaser other than a taxing unit shall not exceed 25 percent <by
4-21 paying the purchaser the amount the purchaser bid for the property,
4-22 the amount of the deed recording fee, and the amount paid by the
4-23 purchaser as taxes, penalties, interest, and costs on the property,
4-24 plus 25 percent of the aggregate total>.
4-25 (e) <(c)> If the owner of the real property makes an
4-26 affidavit that the owner <he> has made diligent search in the
4-27 county in which the property is located for the purchaser at the
4-28 tax sale or for the purchaser at resale, and has failed to find
4-29 that purchaser <him>, that the purchaser <at the sale> is not a
4-30 resident of the county in which the property is located, that the
4-31 owner <he> and the purchaser cannot agree on the amount of
4-32 redemption money due, or that the purchaser refuses to give the
4-33 owner <him> a quitclaim deed to the property, the owner may redeem
4-34 the property by paying the required amount as prescribed by this
4-35 section <Subsection (a) or (b), as applicable,> to the
4-36 assessor-collector for the county in which the property is located.
4-37 The assessor-collector receiving the payment shall give the owner a
4-38 signed receipt witnessed by two persons. The receipt, when
4-39 recorded, is notice to all persons that the property described has
4-40 been redeemed. The assessor-collector shall on demand pay the
4-41 money received by the assessor-collector <him> to the purchaser <at
4-42 the tax sale>.
4-43 (f) <(d)> The right of redemption does not grant or reserve
4-44 in the former owner of the real property the right to the use or
4-45 possession of the property, or to receive rents, income, or other
4-46 benefits from the property while the right of redemption exists.
4-47 (g) <(e)> In this section, "residence homestead" has the
4-48 meaning assigned by Section 11.13.
4-49 (h) <(f)> In this section, "agricultural use" has the
4-50 meaning assigned by Section 23.51.
4-51 (i) In this section, "costs" is defined to include all those
4-52 amounts reasonably expended by a purchaser or taxing unit in the
4-53 maintenance, preservation, and safekeeping of the property,
4-54 including but not limited to:
4-55 (1) insurance against fire, flood, and other hazards;
4-56 (2) repairs and improvements required by local
4-57 ordinance, building code, or by the terms of any existing lease of
4-58 the property, whether written or oral;
4-59 (3) discharge of mowing, cleaning, or demolition liens
4-60 against the property which secure expenses incurred by a
4-61 municipality;
4-62 (4) dues, assessments for maintenance, or liens
4-63 provided by recorded restrictive covenants affecting the property
4-64 and payable to a property owners' association; and
4-65 (5) standby fees payable to a water district, fresh
4-66 water supply district, or other municipality as authorized by law.
4-67 SECTION 17. Section 34.23, Tax Code, is amended to read as
4-68 follows:
4-69 Sec. 34.23. Distribution of Redemption Proceeds. <(a)> If
4-70 the owner of property sold for taxes to a taxing unit redeems the
5-1 property before the property is resold, the taxing unit shall
5-2 distribute the redemption proceeds in the manner that proceeds of
5-3 the resale of property are distributed.
5-4 <(b) If the owner of property sold for taxes redeems the
5-5 property from the taxing unit after the property has been resold,
5-6 the taxing unit shall pay the purchaser at the resale the amount he
5-7 paid for the property, plus 25 percent of that amount if the
5-8 redemption occurs within one year after the date the property is
5-9 resold or 50 percent of that amount if the redemption occurs more
5-10 than one year after the date the property is resold. The taxing
5-11 unit shall distribute the redemption proceeds remaining after
5-12 payment of the amount due the purchaser at resale to the taxing
5-13 units adjudged to have tax liens against the property in the
5-14 proportion the amount of each unit's lien bears to the total amount
5-15 of all liens established in the foreclosure suit.>
5-16 SECTION 18. Section 41.01, Tax Code, is amended to read as
5-17 follows:
5-18 Sec. 41.01. Duties of Appraisal Review Board. (a) The
5-19 appraisal review board shall have the authority to:
5-20 (1) determine protests initiated by property owners;
5-21 (2) determine challenges initiated by taxing units;
5-22 (3) correct clerical errors in the appraisal records
5-23 and the appraisal rolls;
5-24 (4) act on motions to correct appraisal rolls under
5-25 Section 25.25;
5-26 (5) determine whether an exemption or a partial
5-27 exemption is improperly granted and whether land is improperly
5-28 granted appraisal as provided by Subchapter C, D, or E, Chapter 23;
5-29 and
5-30 (6) take any other action or make any other
5-31 recommendation <determination> that this title specifically
5-32 authorizes or requires.
5-33 (b) The appraisal review board may not engage in any
5-34 activity or make any determination not specifically authorized by
5-35 this code. No other authority is granted or implied.
5-36 SECTION 19. Section 41.44, Tax Code, is amended by adding
5-37 Subsection (e) to read as follows:
5-38 (e) The appraisal review board shall accept and consider a
5-39 protest filed by an agent of a property owner if an agency
5-40 authorization is filed at or before the hearing on the protest.
5-41 SECTION 20. Section 41.45, Tax Code, is amended by amending
5-42 Subsections (b), (d), and (e) and adding Subsection (g) to read as
5-43 follows:
5-44 (b) The property owner initiating the protest is entitled to
5-45 an opportunity to appear to offer evidence or argument. The
5-46 property owner may offer his evidence or argument by affidavit
5-47 without personally appearing if he attests to the affidavit before
5-48 an officer authorized to administer oaths and submits the affidavit
5-49 to the board hearing the protest before it begins the hearing on
5-50 the protest. On receipt of an affidavit, the board shall notify
5-51 the chief appraiser. The chief appraiser may inspect the affidavit
5-52 and is entitled to a copy on request. An affidavit shall identify
5-53 the protesting property owner, the property that is the subject of
5-54 the protest, and a statement by the owner on a determination of the
5-55 appraisal district relevant to the property that is the subject of
5-56 the protest. The comptroller shall prescribe a standard form for
5-57 an affidavit that requires the property owner to provide this
5-58 information. Appraisal districts shall make copies of the form
5-59 available to property owners.
5-60 (d) An appraisal review board consisting of more than three
5-61 members may sit in panels of not fewer than three members to
5-62 conduct protest hearings. However, the determination of a protest
5-63 heard by a panel must be made by the board. If the determination
5-64 of a panel is not accepted by the board, the board may refer the
5-65 matter for rehearing to a panel composed of members who did not
5-66 hear the original hearing or, if there are not at least three
5-67 members who did not hear the original protest, the board may
5-68 determine the protest. Before determining a protest or conducting
5-69 a rehearing before a new panel or the board, the board shall
5-70 deliver notice of the hearing or meeting to determine the protest
6-1 in accordance with the provisions of this subchapter.
6-2 (e) The board shall postpone the hearing to a later date if:
6-3 (1) the property owner or the owner's agent shows good
6-4 cause for the postponement;
6-5 (2) the property owner or the owner's agent provides a
6-6 copy of a notice for a hearing addressed to the property owner or
6-7 to the individual representing the property owner set by another
6-8 appraisal district for the same date and bearing a postmark earlier
6-9 than the date on which the appraisal review board delivered its
6-10 notice of the hearing; or
6-11 (3) <if> the chief appraiser consents to the
6-12 postponement. The hearing may not be postponed to a date less than
6-13 five or more than 15 days after the date scheduled for the original
6-14 hearing unless the date and time of the hearing as postponed are
6-15 agreed to by the appraisal review board, the property owner, and
6-16 the chief appraiser. Postponement under this subsection does not
6-17 require the delivery of additional written notice to the property
6-18 owner.
6-19 (g) Prior to or immediately upon opening a hearing on a
6-20 protest, the chief appraiser and the property owner or the owner's
6-21 agent shall exchange copies of all written materials that will be
6-22 provided to the appraisal review board during the hearing.
6-23 SECTION 21. Subchapter C, Chapter 41, Tax Code, is amended
6-24 by adding Section 41.48 to read as follows:
6-25 Sec. 41.48. SETTLEMENT AGREEMENTS. The chief appraiser
6-26 shall change the appraisal records or the appraisal roll to reflect
6-27 any agreement between the property owner or the owner's agent and
6-28 the chief appraiser that is final pursuant to Section 1.111(e) of
6-29 this code. A property owner or the owner's agent may file suit in
6-30 a court having jurisdiction to compel the chief appraiser to comply
6-31 with this section.
6-32 SECTION 22. Subsection (c), Section 41.61, Tax Code, is
6-33 amended to read as follows:
6-34 (c) An appraisal review board may not issue a subpoena under
6-35 this section unless the board holds a hearing at which the board
6-36 determines that good cause exists for the issuance of the subpoena.
6-37 The appraisal review board before which a good cause hearing is
6-38 scheduled shall deliver written notice to the party being
6-39 subpoenaed and parties to the protest of the date, time, and place
6-40 of the hearing. The board shall deliver the notice not later than
6-41 the 5th day before the date of the good cause hearing. The party
6-42 being subpoenaed must have an opportunity to be heard at the good
6-43 cause hearing.
6-44 SECTION 23. Subsections (b), (c), (d), and (e), Section
6-45 42.06, Tax Code, are amended to read as follows:
6-46 (b) <The owner of an item of property having an appraised
6-47 value in excess of $1 million who appeals an order of the appraisal
6-48 review board or comptroller under this chapter must file a written
6-49 notice of appeal not later than the 15th day after the date the
6-50 owner receives the notice required by Section 41.47 or the order of
6-51 the comptroller, as applicable. A property owner who fails to
6-52 comply with this subsection does not forfeit the right to appeal,
6-53 but is liable for a penalty to each taxing unit in which the
6-54 property is taxable in an amount equal to five percent of the taxes
6-55 finally determined to be due on the property. For purposes of this
6-56 subsection, the appraised value of the property is its appraised
6-57 value for the current year according to the certified appraisal
6-58 roll or the determination of the comptroller, as applicable, as
6-59 modified by order of the appraisal review board or comptroller
6-60 pursuant to a protest.>
6-61 <(c)> A party other than a chief appraiser or property owner
6-62 who appeals an order of an appraisal review board shall file the
6-63 notice with the chief appraiser of the appraisal district for which
6-64 the appraisal review board is established. A chief appraiser who
6-65 appeals an order of an appraisal review board shall file the notice
6-66 with the appraisal review board. A party who appeals an order of
6-67 the comptroller shall file the notice with the comptroller.
6-68 (c) <(d)> If the chief appraiser, a taxing unit, or a county
6-69 appeals, the chief appraiser, if the appeal is of an order of the
6-70 appraisal review board, or the comptroller, if the appeal is of an
7-1 order of the comptroller, shall deliver a copy of the notice to the
7-2 property owner whose property is involved in the appeal within 10
7-3 days after the date the notice is filed.
7-4 (d) <(e)> On the filing of a notice of appeal, the chief
7-5 appraiser shall indicate where appropriate those entries on the
7-6 appraisal records that are subject to the appeal.
7-7 SECTION 24. Section 6.035, Tax Code, is amended by adding
7-8 Subsection (e) to read as follows:
7-9 (e) An individual who has served as a chief appraiser may
7-10 not represent a property owner before the appraisal review board
7-11 for the county in which that individual served as chief appraiser
7-12 in a protest or other proceeding related to an appraisal record or
7-13 appraisal roll created during that individual's service as chief
7-14 appraiser.
7-15 SECTION 25. Section 6.03(a), Tax Code, is amended to read as
7-16 follows:
7-17 (a) The appraisal district is governed by a board of five
7-18 directors. To be eligible to serve on the board of directors, an
7-19 individual must be a resident of the district and must have resided
7-20 in the district for at least two years immediately preceding the
7-21 date the individual takes office. <To be eligible to serve on the
7-22 board of an appraisal district established for a county having a
7-23 population of at least 200,000 bordering a county having a
7-24 population of at least 2,000,000 and the Gulf of Mexico, an
7-25 individual must be a member of the governing body or an elected
7-26 officer of a taxing unit entitled to vote on the appointment of
7-27 board members under this section. However, an employee of a taxing
7-28 unit that participates in the district is not eligible to serve on
7-29 the board unless the individual is also a member of the governing
7-30 body or an elected official of a taxing unit that participates in
7-31 the district.>
7-32 SECTION 26. Effective January 1, 1996, Section 11.23(i), Tax
7-33 Code, is amended to read as follows:
7-34 (i) Community Service Clubs. An association that qualifies
7-35 as a community service club is entitled to an exemption from
7-36 taxation of the tangible property the club owns that qualifies
7-37 under Article VIII, Section 2, of the constitution and that is not
7-38 used for profit or held for gain. To qualify as a community
7-39 service club for the purposes of this subsection, an association
7-40 must:
7-41 (1) be organized to promote and must engage primarily
7-42 in promoting:
7-43 (A) the religious, educational, and physical
7-44 development of boys, girls, young men, or young women;
7-45 (B) the development of the concepts of
7-46 patriotism and love of country; or <and>
7-47 (C) the development of interest in community,
7-48 national, and international affairs;
7-49 (2) be affiliated with a state or national
7-50 organization of similar purpose;
7-51 (3) be open to membership without regard to race,
7-52 religion, or national origin; and
7-53 (4) be operated in a way that does not result in
7-54 accrual of distributable profits, realization of private gain
7-55 resulting from payment of compensation in excess of a reasonable
7-56 allowance for salary or other compensation for services rendered,
7-57 or realization of any other form of private gain.
7-58 SECTION 27. The provisions of Section 2 and Section 3 of
7-59 this Act apply to an appraisal review board member whose term
7-60 begins on or after January 1, 1996.
7-61 SECTION 28. The importance of this legislation and the
7-62 crowded condition of the calendars in both houses create an
7-63 emergency and an imperative public necessity that the
7-64 constitutional rule requiring bills to be read on three several
7-65 days in each house be suspended, and this rule is hereby suspended.
7-66 COMMITTEE AMENDMENT NO. 2 By: Zaffirini
7-67 Amend C.S.H.B. 2941 as follows:
7-68 Strike SECTION 25 of the bill and substitute the following:
7-69 SECTION 25. Section 6.03(a), Tax Code, is amended to read as
7-70 follows:
8-1 (a) The appraisal district is governed by a board of five
8-2 directors. To be eligible to serve on the board of directors, an
8-3 individual must be a resident of the district and must have resided
8-4 in the district for at least two years immediately preceding the
8-5 date the individual takes office. To be eligible to serve on the
8-6 board of an appraisal district established for a county having a
8-7 population of at least 100,000 but not more than 200,000 bordering
8-8 the United Mexican States <a county having a population of at least
8-9 2,000,000 and the Gulf of Mexico>, an individual must be a member
8-10 of the governing body or an elected officer of a taxing unit
8-11 entitled to vote on the appointment of board members under this
8-12 section. <However, an employee of a taxing unit that participates
8-13 in the district is not eligible to serve on the board unless the
8-14 individual is also a member of the governing body or an elected
8-15 official of a taxing unit that participates in the district.>
8-16 A BILL TO BE ENTITLED
8-17 AN ACT
8-18 relating to the appraisal of property for tax purposes, the
8-19 assessment and administration of property taxes, and the disclosure
8-20 of property tax liabilities.
8-21 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8-22 SECTION 29. Section 1.07, Tax Code, is amended by adding
8-23 Subsection (d) to read as follows:
8-24 (d) A notice required by Section 11.45, 23.44(d), 23.57(d),
8-25 23.79(d), 23.85, or 23.95(e) shall be delivered by certified mail.
8-26 SECTION 30. Subchapter C, Chapter 6, Tax Code, is amended by
8-27 adding Section 6.414 to read as follows:
8-28 Sec. 6.414. TRAINING. (a) The comptroller shall establish
8-29 minimum standards for training all members of appraisal review
8-30 boards.
8-31 (b) A person appointed as a member of an appraisal review
8-32 board is required to attend and receive certification of
8-33 participation in a local training program in the community where
8-34 the member serves that is approved by the comptroller in accordance
8-35 with rules adopted by the comptroller as a prerequisite to
8-36 participation in hearings.
8-37 SECTION 31. Subchapter C, Chapter 6, Tax Code, is amended by
8-38 adding Section 6.415 to read as follows:
8-39 Sec. 6.415. ELIGIBILITY OF FORMER OFFICERS AND DIRECTORS OF
8-40 TAX ENTITIES IN COUNTIES OF MORE THAN 50,000 POPULATION. Any
8-41 person who has been an elected or appointed officer, director,
8-42 employee in a tax collection office, or employee in a budgetary or
8-43 fiscal planning office of a taxing unit or an appraisal district in
8-44 a county of more than 50,000 population is not eligible to serve on
8-45 an appraisal review board that reviews appraisals of property
8-46 within such taxing entity or appraisal district.
8-47 SECTION 32. Subsection (h), Section 11.251, Tax Code, is
8-48 amended to read as follows:
8-49 (h) The chief appraiser by written notice delivered to a
8-50 property owner who claims an exemption under this section may
8-51 require the property owner to provide copies of inventory or
8-52 property records in order to determine the amount and value of
8-53 freeport goods. If the property owner fails to deliver the
8-54 information requested in the notice before approval of the
8-55 appraisal records by the appraisal review board <the 31st day after
8-56 the date the notice is delivered to the property owner>, the
8-57 property owner forfeits the right to claim or receive the exemption
8-58 for that year.
8-59 SECTION 33. Subchapter C, Chapter 11, Tax Code, is amended
8-60 by adding Section 11.437 to read as follows:
8-61 Sec. 11.437. LATE APPLICATION FOR FREEPORT EXEMPTION. (a)
8-62 The chief appraiser shall accept and approve or deny an application
8-63 for exemption under Section 11.251 of this code after the deadline
8-64 for filing it has passed if it is filed before approval of the
8-65 appraisal records by the appraisal review board.
8-66 (b) If an exemption under Section 11.251 of this code is
8-67 approved when the application is filed late, the owner is liable
8-68 for a penalty of 10 percent of the difference between the amount of
8-69 tax imposed on the property and the amount that would be imposed if
8-70 the property were taxed at market value.
9-1 (c) The chief appraiser shall make an entry on the appraisal
9-2 records indicating the person's liability for the penalty and shall
9-3 deliver written notice of imposition of the penalty, explaining the
9-4 reason for its imposition, to the person.
9-5 (d) The tax assessor for a taxing unit that taxes property
9-6 subject to exemption under Section 11.251 of this code after a late
9-7 application shall add the amount of the penalty to the owner's tax
9-8 bill, and the tax collector for the unit shall collect the penalty
9-9 at the time and in the manner he collects the tax. The amount of
9-10 the penalty constitutes a lien against the property against which
9-11 the penalty is imposed, as if it were a tax, and accrues penalty
9-12 and interest in the same manner as a delinquent tax.
9-13 SECTION 34. Subsection (a), Section 22.23, Tax Code, is
9-14 amended to read as follows:
9-15 (a) Rendition statements and property reports must be
9-16 delivered to the chief appraiser after January 1 and not later than
9-17 <before> April 15, except as provided by Section 22.02 of this
9-18 code.
9-19 SECTION 35. Subsection (f), Section 23.55, Tax Code, is
9-20 amended to read as follows:
9-21 (f) The sanctions provided by Subsection (a) of this section
9-22 do not apply if the change of use occurs as a result of the
9-23 transfer by sale, gift, or otherwise, <a sale> for right-of-way or
9-24 other public purpose, or a condemnation.
9-25 SECTION 36. Subchapter D, Chapter 23, Tax Code, is amended
9-26 by adding Section 23.551 to read as follows:
9-27 Sec. 23.551. CERTAIN VETERANS LAND EXEMPTED FROM SANCTIONS.
9-28 (a) The sanctions provided by Section 23.55(a) do not apply to:
9-29 (1) land owned by a disabled veteran or the unmarried
9-30 surviving spouse of a disabled veteran and acquired by the veteran
9-31 through the Veterans' Land Program at least 20 years before the
9-32 date the change of use of the land occurs; or
9-33 (2) land purchased from a disabled veteran or from the
9-34 unmarried surviving spouse of a disabled veteran that was acquired
9-35 by the veteran through the Veterans' Land Program at least 20 years
9-36 before the date the land was sold by the veteran or the veteran's
9-37 spouse, while the land is owned exclusively by the purchaser.
9-38 (b) In this section, "disabled veteran" has the meaning
9-39 assigned by Section 11.22(h).
9-40 SECTION 37. Subsections (a) and (c), Section 33.01, Tax
9-41 Code, are amended to read as follows:
9-42 (a) A delinquent tax incurs a penalty of six percent of the
9-43 amount of the tax for the first calendar month it is delinquent
9-44 plus one percent for each additional month or portion of a month
9-45 the tax remains unpaid prior to July 1 of the year in which it
9-46 becomes delinquent. However, a tax delinquent on July 1 incurs a
9-47 total penalty of twelve percent of the amount of the delinquent tax
9-48 without regard to the number of months the tax has been delinquent.
9-49 A delinquent tax continues to incur the penalty provided by this
9-50 subsection as long as the tax remains unpaid, regardless of whether
9-51 a judgment for the delinquent tax has been rendered.
9-52 (c) A delinquent tax accrues interest at a rate of one
9-53 percent for each month or portion of a month the tax remains
9-54 unpaid. Interest payable under this section is to compensate the
9-55 taxing unit for revenue lost because of the delinquency. A
9-56 delinquent tax continues to accrue interest under this subsection
9-57 as long as the tax remains unpaid, regardless of whether a judgment
9-58 for the delinquent tax has been rendered.
9-59 SECTION 38. Section 33.07(a), Tax Code, is amended to read
9-60 as follows:
9-61 (a) A taxing unit or appraisal district may provide, in the
9-62 manner required by law for official action by the body, that taxes
9-63 that remain delinquent on July 1 of the year in which they become
9-64 delinquent incur an additional penalty to defray costs of
9-65 collection, if the unit or district or another unit that collects
9-66 taxes for the unit has contracted with an attorney pursuant to
9-67 Section 6.30 of this code. The amount of the penalty may not
9-68 exceed 15 percent of the amount of taxes, penalty, and interest
9-69 due. A delinquent tax incurs the penalty provided by this
9-70 subsection regardless of whether a judgment for the delinquent tax
10-1 has been rendered.
10-2 SECTION 39. Section 4, Article 1.05, Title 79, Revised
10-3 Statutes (Article 5069-1.05, Vernon's Texas Civil Statutes), is
10-4 amended to read as follows:
10-5 Sec. 4. This article does not apply to a judgment:
10-6 (1) in favor of a taxing unit in a suit to collect a
10-7 delinquent tax under Subchapter C, Chapter 33, Tax Code; or
10-8 (2) that earns interest that is set by Title 2, Tax
10-9 Code.
10-10 SECTION 40. Section 33.41, Tax Code, is amended by adding
10-11 Subsection (d) to read as follows:
10-12 (d) A suit brought under Subsection (a) against the personal
10-13 representative of an estate who is acting under the control and
10-14 supervision of a probate court need not be filed in that probate
10-15 court, but may instead be brought in a court of competent
10-16 jurisdiction of the county in which the tax was imposed. All
10-17 provisions relative to the presentment of a claim against an estate
10-18 as a prerequisite for judgment shall not be construed as to apply
10-19 to any claim for delinquent taxes owing to a taxing unit.
10-20 SECTION 41. Subsection (c), Section 33.47, Tax Code, is
10-21 amended to read as follows:
10-22 (c) In a suit to collect a tax, a tax receipt issued under
10-23 Section 31.075 of this code, or an electronic replica of the
10-24 receipt, that states that a tax has been paid is <constitutes>
10-25 prima facie evidence that the tax has been paid as stated by the
10-26 receipt or electronic replica.
10-27 SECTION 42. Section 33.51, Tax Code, is amended to read as
10-28 follows:
10-29 Sec. 33.51. Writ of Possession. If the court orders the
10-30 foreclosure of a tax lien and the sale of real property, the
10-31 judgment shall provide for the issuance by the clerk of said court
10-32 of a writ of possession to the purchaser at the sale or to the
10-33 purchaser's <his> assigns no sooner than 20 days following the date
10-34 on which the purchaser's deed from the sheriff or constable is
10-35 filed of record <within 20 days after the period of redemption
10-36 expires>.
10-37 SECTION 43. Section 33.52, Tax Code, is amended to read as
10-38 follows:
10-39 Sec. 33.52. Judgment for Current Taxes. (a) If the court
10-40 orders the foreclosure of a tax lien and the sale of real property,
10-41 the judgment shall, on motion of the taxing unit, order that the
10-42 taxing unit recover from the proceeds of the sale the amount of tax
10-43 on the property for the current tax year <prorated to the day of
10-44 judgment>.
10-45 (b) If the amount of tax for the current tax year has not
10-46 been determined on the date of judgment, the court shall, on motion
10-47 of the taxing unit, order recovery of the amount of tax imposed on
10-48 the property for the preceding tax year<, prorated to the date of
10-49 judgment>.
10-50 (c) If the judgment does not provide for recovery of taxes
10-51 imposed for the current tax year, or for recovery of estimated
10-52 taxes that cannot then be calculated for the current year, the real
10-53 property is subject to the taxes for the current tax year and to
10-54 the lien that secures those taxes, and any subsequent purchaser
10-55 takes the property subject to those taxes and the tax lien.
10-56 SECTION 44. Subsection (a), Section 34.05, Tax Code, is
10-57 amended to read as follows:
10-58 (a) If property is sold to a taxing unit that is a party to
10-59 the judgment, the taxing unit may sell the property at any time,
10-60 subject to any right of redemption existing at the time of the
10-61 sale. In selling the property, the taxing unit may, but is not
10-62 required to, use the procedures provided by Section 272.001, Local
10-63 Government Code.
10-64 SECTION 45. Section 34.21, Tax Code, is amended to read as
10-65 follows:
10-66 Sec. 34.21. Right of Redemption. (a) The owner of real
10-67 property sold at a tax sale to a purchaser other than a taxing unit
10-68 and that was the residence homestead of the owner or that was land
10-69 designated for agricultural use when the suit to collect the tax
10-70 was filed may redeem the property within two years after the date
11-1 on which the purchaser's deed is filed for record by paying the
11-2 purchaser the amount the purchaser bid for the property, the amount
11-3 of the deed recording fee, and the amount paid by the purchaser as
11-4 taxes, penalties, interest, and costs on the property, plus a
11-5 redemption premium of 25 percent of the aggregate total if the
11-6 property is redeemed during the first year of the redemption period
11-7 or 50 percent of the aggregate total if the property is redeemed
11-8 during the second year of the redemption period.
11-9 (b) If property that was the owner's residence homestead or
11-10 was land designated for agricultural use when the suit to collect
11-11 the tax was filed is bid off to a taxing unit under Section
11-12 34.01(c) and has not been resold by the taxing unit, the owner
11-13 having a right of redemption may redeem the property within two
11-14 years after the date on which the deed or the taxing unit is filed
11-15 for record by paying the taxing unit the amount of the judgment
11-16 against the property or the market value of the property as
11-17 specified in that judgment, whichever is less, plus the amount of
11-18 the fee for filing the taxing unit's deed and the amount expended
11-19 by the taxing unit as costs on the property.
11-20 (c) If real property that was the owner's residence
11-21 homestead or was land designated for agricultural use when the suit
11-22 to collect the tax was filed has been resold by the taxing unit
11-23 under Section 34.05, the owner of the property having a right of
11-24 redemption may redeem the property within two years after the date
11-25 on which the taxing unit files for record the deed from the sheriff
11-26 or constable by paying the person who purchased the property from
11-27 the taxing unit the amount the purchaser paid for the property, the
11-28 amount of fee for filing the purchaser's deed for record, the
11-29 amount paid by the purchaser as taxes, penalties, interest, and
11-30 costs on the property, plus a redemption premium of 25 percent of
11-31 the aggregate total if the property is redeemed in the first year
11-32 of the redemption period or 50 percent of the aggregate total if
11-33 the property is redeemed in the second year of the redemption
11-34 period.
11-35 (d) <(b)> The owner of real property sold at a tax sale
11-36 other than property that was the residence homestead of the owner
11-37 or that was land designated for agricultural use when the suit to
11-38 collect the tax was filed <covered by Subsection (a)> may redeem
11-39 the property <within> in the same manner and by paying the same
11-40 amounts as prescribed by Subsection (a), (b), or (c), as
11-41 applicable, except that:
11-42 (1) the owner's right of redemption expires after six
11-43 months following <after> the date on which the purchaser's or
11-44 taxing unit's deed is filed for record; and
11-45 (2) the redemption premium payable by the owner to a
11-46 purchaser other than a taxing unit shall not exceed 25 percent <by
11-47 paying the purchaser the amount the purchaser bid for the property,
11-48 the amount of the deed recording fee, and the amount paid by the
11-49 purchaser as taxes, penalties, interest, and costs on the property,
11-50 plus 25 percent of the aggregate total>.
11-51 (e) <(c)> If the owner of the real property makes an
11-52 affidavit that the owner <he> has made diligent search in the
11-53 county in which the property is located for the purchaser at the
11-54 tax sale or for the purchaser at resale, and has failed to find
11-55 that purchaser <him>, that the purchaser <at the sale> is not a
11-56 resident of the county in which the property is located, that the
11-57 owner <he> and the purchaser cannot agree on the amount of
11-58 redemption money due, or that the purchaser refuses to give the
11-59 owner <him> a quitclaim deed to the property, the owner may redeem
11-60 the property by paying the required amount as prescribed by this
11-61 section <Subsection (a) or (b), as applicable,> to the
11-62 assessor-collector for the county in which the property is located.
11-63 The assessor-collector receiving the payment shall give the owner a
11-64 signed receipt witnessed by two persons. The receipt, when
11-65 recorded, is notice to all persons that the property described has
11-66 been redeemed. The assessor-collector shall on demand pay the
11-67 money received by the assessor-collector <him> to the purchaser <at
11-68 the tax sale>.
11-69 (f) <(d)> The right of redemption does not grant or reserve
11-70 in the former owner of the real property the right to the use or
12-1 possession of the property, or to receive rents, income, or other
12-2 benefits from the property while the right of redemption exists.
12-3 (g) <(e)> In this section, "residence homestead" has the
12-4 meaning assigned by Section 11.13.
12-5 (h) <(f)> In this section, "agricultural use" has the
12-6 meaning assigned by Section 23.51.
12-7 (i) In this section, "costs" is defined to include all those
12-8 amounts reasonably expended by a purchaser or taxing unit in the
12-9 maintenance, preservation, and safekeeping of the property,
12-10 including but not limited to:
12-11 (1) insurance against fire, flood, and other hazards;
12-12 (2) repairs and improvements required by local
12-13 ordinance, building code, or by the terms of any existing lease of
12-14 the property, whether written or oral;
12-15 (3) discharge of mowing, cleaning, or demolition liens
12-16 against the property which secure expenses incurred by a
12-17 municipality;
12-18 (4) dues, assessments for maintenance, or liens
12-19 provided by recorded restrictive covenants affecting the property
12-20 and payable to a property owners' association; and
12-21 (5) standby fees payable to a water district, fresh
12-22 water supply district, or other municipality as authorized by law.
12-23 SECTION 46. Section 34.23, Tax Code, is amended to read as
12-24 follows:
12-25 Sec. 34.23. Distribution of Redemption Proceeds. <(a)> If
12-26 the owner of property sold for taxes to a taxing unit redeems the
12-27 property before the property is resold, the taxing unit shall
12-28 distribute the redemption proceeds in the manner that proceeds of
12-29 the resale of property are distributed.
12-30 <(b) If the owner of property sold for taxes redeems the
12-31 property from the taxing unit after the property has been resold,
12-32 the taxing unit shall pay the purchaser at the resale the amount he
12-33 paid for the property, plus 25 percent of that amount if the
12-34 redemption occurs within one year after the date the property is
12-35 resold or 50 percent of that amount if the redemption occurs more
12-36 than one year after the date the property is resold. The taxing
12-37 unit shall distribute the redemption proceeds remaining after
12-38 payment of the amount due the purchaser at resale to the taxing
12-39 units adjudged to have tax liens against the property in the
12-40 proportion the amount of each unit's lien bears to the total amount
12-41 of all liens established in the foreclosure suit.>
12-42 SECTION 47. Section 41.01, Tax Code, is amended to read as
12-43 follows:
12-44 Sec. 41.01. Duties of Appraisal Review Board. (a) The
12-45 appraisal review board shall have the authority to:
12-46 (1) determine protests initiated by property owners;
12-47 (2) determine challenges initiated by taxing units;
12-48 (3) correct clerical errors in the appraisal records
12-49 and the appraisal rolls;
12-50 (4) act on motions to correct appraisal rolls under
12-51 Section 25.25;
12-52 (5) determine whether an exemption or a partial
12-53 exemption is improperly granted and whether land is improperly
12-54 granted appraisal as provided by Subchapter C, D, or E, Chapter 23;
12-55 and
12-56 (6) take any other action or make any other
12-57 recommendation <determination> that this title specifically
12-58 authorizes or requires.
12-59 (b) The appraisal review board may not engage in any
12-60 activity or make any determination not specifically authorized by
12-61 this code. No other authority is granted or implied.
12-62 SECTION 48. Section 41.44, Tax Code, is amended by adding
12-63 Subsection (e) to read as follows:
12-64 (e) The appraisal review board shall accept and consider a
12-65 protest filed by an agent of a property owner if an agency
12-66 authorization is filed at or before the hearing on the protest.
12-67 SECTION 49. Section 41.45, Tax Code, is amended by amending
12-68 Subsections (b), (d), and (e) and adding Subsection (g) to read as
12-69 follows:
12-70 (b) The property owner initiating the protest is entitled to
13-1 an opportunity to appear to offer evidence or argument. The
13-2 property owner may offer his evidence or argument by affidavit
13-3 without personally appearing if he attests to the affidavit before
13-4 an officer authorized to administer oaths and submits the affidavit
13-5 to the board hearing the protest before it begins the hearing on
13-6 the protest. On receipt of an affidavit, the board shall notify
13-7 the chief appraiser. The chief appraiser may inspect the affidavit
13-8 and is entitled to a copy on request. An affidavit shall identify
13-9 the protesting property owner, the property that is the subject of
13-10 the protest, and a statement by the owner on a determination of the
13-11 appraisal district relevant to the property that is the subject of
13-12 the protest. The comptroller shall prescribe a standard form for
13-13 an affidavit that requires the property owner to provide this
13-14 information. Appraisal districts shall make copies of the form
13-15 available to property owners.
13-16 (d) An appraisal review board consisting of more than three
13-17 members may sit in panels of not fewer than three members to
13-18 conduct protest hearings. However, the determination of a protest
13-19 heard by a panel must be made by the board. If the determination
13-20 of a panel is not accepted by the board, the board may refer the
13-21 matter for rehearing to a panel composed of members who did not
13-22 hear the original hearing or, if there are not at least three
13-23 members who did not hear the original protest, the board may
13-24 determine the protest. Before determining a protest or conducting
13-25 a rehearing before a new panel or the board, the board shall
13-26 deliver notice of the hearing or meeting to determine the protest
13-27 in accordance with the provisions of this subchapter.
13-28 (e) The board shall postpone the hearing to a later date if:
13-29 (1) the property owner or the owner's agent shows good
13-30 cause for the postponement;
13-31 (2) the property owner or the owner's agent provides a
13-32 copy of a notice for a hearing addressed to the property owner or
13-33 to the individual representing the property owner set by another
13-34 appraisal district for the same date and bearing a postmark earlier
13-35 than the date on which the appraisal review board delivered its
13-36 notice of the hearing; or
13-37 (3) <if> the chief appraiser consents to the
13-38 postponement. The hearing may not be postponed to a date less than
13-39 five or more than 15 days after the date scheduled for the original
13-40 hearing unless the date and time of the hearing as postponed are
13-41 agreed to by the appraisal review board, the property owner, and
13-42 the chief appraiser. Postponement under this subsection does not
13-43 require the delivery of additional written notice to the property
13-44 owner.
13-45 (g) Prior to or immediately upon opening a hearing on a
13-46 protest, the chief appraiser and the property owner or the owner's
13-47 agent shall exchange copies of all written materials that will be
13-48 provided to the appraisal review board during the hearing.
13-49 SECTION 50. Subchapter C, Chapter 41, Tax Code, is amended
13-50 by adding Section 41.48 to read as follows:
13-51 Sec. 41.48. SETTLEMENT AGREEMENTS. The chief appraiser
13-52 shall change the appraisal records or the appraisal roll to reflect
13-53 any agreement between the property owner or the owner's agent and
13-54 the chief appraiser that is final pursuant to Section 1.111(e) of
13-55 this code. A property owner or the owner's agent may file suit in
13-56 a court having jurisdiction to compel the chief appraiser to comply
13-57 with this section.
13-58 SECTION 51. Subsection (c), Section 41.61, Tax Code, is
13-59 amended to read as follows:
13-60 (c) An appraisal review board may not issue a subpoena under
13-61 this section unless the board holds a hearing at which the board
13-62 determines that good cause exists for the issuance of the subpoena.
13-63 The appraisal review board before which a good cause hearing is
13-64 scheduled shall deliver written notice to the party being
13-65 subpoenaed and parties to the protest of the date, time, and place
13-66 of the hearing. The board shall deliver the notice not later than
13-67 the 5th day before the date of the good cause hearing. The party
13-68 being subpoenaed must have an opportunity to be heard at the good
13-69 cause hearing.
13-70 SECTION 52. Subsections (b), (c), (d), and (e), Section
14-1 42.06, Tax Code, are amended to read as follows:
14-2 (b) <The owner of an item of property having an appraised
14-3 value in excess of $1 million who appeals an order of the appraisal
14-4 review board or comptroller under this chapter must file a written
14-5 notice of appeal not later than the 15th day after the date the
14-6 owner receives the notice required by Section 41.47 or the order of
14-7 the comptroller, as applicable. A property owner who fails to
14-8 comply with this subsection does not forfeit the right to appeal,
14-9 but is liable for a penalty to each taxing unit in which the
14-10 property is taxable in an amount equal to five percent of the taxes
14-11 finally determined to be due on the property. For purposes of this
14-12 subsection, the appraised value of the property is its appraised
14-13 value for the current year according to the certified appraisal
14-14 roll or the determination of the comptroller, as applicable, as
14-15 modified by order of the appraisal review board or comptroller
14-16 pursuant to a protest.>
14-17 <(c)> A party other than a chief appraiser or property owner
14-18 who appeals an order of an appraisal review board shall file the
14-19 notice with the chief appraiser of the appraisal district for which
14-20 the appraisal review board is established. A chief appraiser who
14-21 appeals an order of an appraisal review board shall file the notice
14-22 with the appraisal review board. A party who appeals an order of
14-23 the comptroller shall file the notice with the comptroller.
14-24 (c) <(d)> If the chief appraiser, a taxing unit, or a county
14-25 appeals, the chief appraiser, if the appeal is of an order of the
14-26 appraisal review board, or the comptroller, if the appeal is of an
14-27 order of the comptroller, shall deliver a copy of the notice to the
14-28 property owner whose property is involved in the appeal within 10
14-29 days after the date the notice is filed.
14-30 (d) <(e)> On the filing of a notice of appeal, the chief
14-31 appraiser shall indicate where appropriate those entries on the
14-32 appraisal records that are subject to the appeal.
14-33 SECTION 53. Subsection (b), Section 42.43, Tax Code, is
14-34 amended to read as follows:
14-35 (b) For a refund made under this section because an
14-36 exemption under Section 11.20 that was denied by the chief
14-37 appraiser or appraisal review board is granted, the taxing unit
14-38 shall include with the refund interest on the amount refunded
14-39 calculated at an annual rate that is equal to the auction average
14-40 rate quoted on a bank discount basis for three-month treasury bills
14-41 issued by the United States government, as published by the Federal
14-42 Reserve Board, for the week in which the taxes became delinquent,
14-43 but not more than 10 percent, calculated from the delinquency date
14-44 for the taxes until the date the refund is made. For any other
14-45 refund made under this section, the taxing unit shall include with
14-46 the refund interest on the amount refunded at an annual rate of
14-47 <that is equal to the auction average rate quoted on a bank
14-48 discount basis for three-month treasury bills issued by the United
14-49 States government, as published by the Federal Reserve Board, for
14-50 the week in which the taxes became delinquent, but not more than>
14-51 eight percent, calculated from the delinquency date for the taxes
14-52 until the date the refund is made.
14-53 SECTION 54. Section 6.035, Tax Code, is amended by adding
14-54 Subsection (e) to read as follows:
14-55 (e) An individual who has served as a chief appraiser may
14-56 not represent a property owner before the appraisal review board
14-57 for the county in which that individual served as chief appraiser
14-58 in a protest or other proceeding related to an appraisal record or
14-59 appraisal roll created during that individual's service as chief
14-60 appraiser.
14-61 SECTION 55. Subchapter A, Chapter 5, Property Code, is
14-62 amended by adding Section 5.010 to read as follows:
14-63 Sec. 5.010. OWNER'S DISCLOSURE OF PROPERTY TAX INFORMATION.
14-64 (a) A person who is the owner of a fee simple interest in real
14-65 property that, for the current tax year or any of the preceding
14-66 five tax years, was appraised as agricultural or open-space land,
14-67 timberland, recreational, park, or scenic-use land, or public
14-68 access airport property and who contracts for the sale of that
14-69 interest shall give to each party who is a purchaser a written
14-70 notice that is signed by the owner and that is substantially in the
15-1 following form:
15-2 OWNER'S DISCLOSURE OF TAX INFORMATION
15-3 1. Property description:____________________________________
15-4 ___________________________________________________________________
15-5 ___________________________________________________________________
15-6 2. Did the property, for the current tax year or any of the
15-7 preceding five tax years, receive a total or partial exemption from
15-8 ad valorem taxation? Yes____ No____. If yes, explain. (Attach
15-9 additional sheets if necessary.)___________________________________
15-10 ___________________________________________________________________
15-11 ___________________________________________________________________
15-12 ___________________________________________________________________
15-13 ___________________________________________________________________
15-14 3. Was the property, for the current tax year or any of the
15-15 preceding five tax years, appraised as agricultural or open-space
15-16 land, timberland, recreational, park, or scenic-use land, or public
15-17 access airport property so that an additional tax may be imposed as
15-18 a penalty if the property no longer qualifies to be appraised in
15-19 that manner? Yes____ No____. If yes, explain. (Attach
15-20 additional sheets if necessary.)___________________________________
15-21 ___________________________________________________________________
15-22 ___________________________________________________________________
15-23 ___________________________________________________________________
15-24 ________________________ _________________________
15-25 Date Signature of Owner
15-26 The undersigned purchaser acknowledges receipt of this notice.
15-27 ________________________ _________________________
15-28 Date Signature of Purchaser
15-29 (b) This section does not apply to a contract for a
15-30 transfer:
15-31 (1) under a court order or foreclosure sale;
15-32 (2) by a trustee in bankruptcy;
15-33 (3) to a mortgagee by a mortgagor or successor in
15-34 interest or to a beneficiary of a deed of trust by a trustor or
15-35 successor in interest;
15-36 (4) by a mortgagee or a beneficiary under a deed of
15-37 trust who has acquired the property at a sale conducted under a
15-38 power of sale under a deed of trust or a sale under a court-ordered
15-39 foreclosure or has acquired the property by a deed in lieu of
15-40 foreclosure;
15-41 (5) by a fiduciary in the course of the administration
15-42 of a decedent's estate, guardianship, conservatorship, or trust; or
15-43 (6) to or from a governmental entity.
15-44 (c) The notice described by Subsection (a) is not required
15-45 to be given to:
15-46 (1) a person who is a co-owner with an owner described
15-47 by Subsection (a) of an undivided interest in the property; or
15-48 (2) the spouse or a person in the lineal line of
15-49 consanguinity of an owner described by Subsection (a).
15-50 (d) The owner shall deliver the notice to the purchaser on
15-51 or before the effective date of the contract binding the purchaser
15-52 to purchase the property.
15-53 (e) An owner who enters into a contract to sell a fee simple
15-54 interest in real property without disclosing as required by this
15-55 section that the property, for the current tax year or any of the
15-56 preceding five tax years, was appraised as agricultural or
15-57 open-space land, timberland, recreational, park, or scenic-use
15-58 land, or public access airport property is liable to the purchaser
15-59 for any additional taxes, penalties, and interest imposed under
15-60 Chapter 23, Tax Code, and paid by the purchaser.
15-61 SECTION 56. Section 6.03(a), Tax Code, is amended to read as
15-62 follows:
15-63 (a) The appraisal district is governed by a board of five
15-64 directors. To be eligible to serve on the board of directors, an
15-65 individual must be a resident of the district and must have resided
15-66 in the district for at least two years immediately preceding the
15-67 date the individual takes office. <To be eligible to serve on the
15-68 board of an appraisal district established for a county having a
15-69 population of at least 200,000 bordering a county having a
15-70 population of at least 2,000,000 and the Gulf of Mexico, an
16-1 individual must be a member of the governing body or an elected
16-2 officer of a taxing unit entitled to vote on the appointment of
16-3 board members under this section. However, an employee of a taxing
16-4 unit that participates in the district is not eligible to serve on
16-5 the board unless the individual is also a member of the governing
16-6 body or an elected official of a taxing unit that participates in
16-7 the district.>
16-8 SECTION 57. Effective January 1, 1996, Section 6.03(a), Tax
16-9 Code, is amended to read as follows:
16-10 (a) The appraisal district is governed by a board of five
16-11 directors. To be eligible to serve on the board of directors, an
16-12 individual must be a resident of the district and <must> have
16-13 resided in the district for at least two years immediately
16-14 preceding the date the individual takes office and may not owe
16-15 delinquent taxes to any taxing unit served by the district. In an
16-16 appraisal district established for a county having a population of
16-17 more than 50,000, an individual who has served for all or part of
16-18 three previous terms on the board is ineligible to serve on the
16-19 board. In an appraisal district established for any other county,
16-20 an individual who has served for all or part of two consecutive
16-21 terms on the board is ineligible to serve on the board during a
16-22 term that begins on the next January 1 following the second of
16-23 those consecutive terms. <To be eligible to serve on the board of
16-24 an appraisal district established for a county having a population
16-25 of at least 200,000 bordering a county having a population of at
16-26 least 2,000,000 and the Gulf of Mexico, an individual must be a
16-27 member of the governing body or an elected officer of a taxing unit
16-28 entitled to vote on the appointment of board members under this
16-29 section. However, an employee of a taxing unit that participates in
16-30 the district is not eligible to serve on the board unless the
16-31 individual is also a member of the governing body or an elected
16-32 official of a taxing unit that participates in the district.>
16-33 SECTION 58. Effective January 1, 1996, Section 11.23(i), Tax
16-34 Code, is amended to read as follows:
16-35 (i) Community Service Clubs. An association that qualifies
16-36 as a community service club is entitled to an exemption from
16-37 taxation of the tangible property the club owns that qualifies
16-38 under Article VIII, Section 2, of the constitution and that is not
16-39 used for profit or held for gain. To qualify as a community
16-40 service club for the purposes of this subsection, an association
16-41 must:
16-42 (1) be organized to promote and must engage primarily
16-43 in promoting:
16-44 (A) the religious, educational, and physical
16-45 development of boys, girls, young men, or young women;
16-46 (B) the development of the concepts of
16-47 patriotism and love of country; or <and>
16-48 (C) the development of interest in community,
16-49 national, and international affairs;
16-50 (2) be affiliated with a state or national
16-51 organization of similar purpose;
16-52 (3) be open to membership without regard to race,
16-53 religion, or national origin; and
16-54 (4) be operated in a way that does not result in
16-55 accrual of distributable profits, realization of private gain
16-56 resulting from payment of compensation in excess of a reasonable
16-57 allowance for salary or other compensation for services rendered,
16-58 or realization of any other form of private gain.
16-59 SECTION 59. The provisions of Section 2 and Section 3 of
16-60 this Act apply to an appraisal review board member whose term
16-61 begins on or after January 1, 1996.
16-62 SECTION 60. The importance of this legislation and the
16-63 crowded condition of the calendars in both houses create an
16-64 emergency and an imperative public necessity that the
16-65 constitutional rule requiring bills to be read on three several
16-66 days in each house be suspended, and this rule is hereby suspended.
16-67 * * * * *