S.B. No. 642
AN ACT
1-1 relating to the appraisal of property for ad valorem taxation and
1-2 the assessment and collection of ad valorem taxes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsections (a), (b), and (e), Section 17.091,
1-5 Civil Practice and Remedies Code, are amended to read as follows:
1-6 (a) In a suit growing out of property taxation by the state
1-7 or a legal subdivision of the state in which a person who is a
1-8 defendant is a nonresident, the secretary of state <comptroller> is
1-9 an agent for service of process on that defendant if the defendant
1-10 owned, had, or claimed a taxable interest in property in this state
1-11 on the first day of a tax year for which taxes have not been paid.
1-12 (b) Process may be served on the secretary of state
1-13 <comptroller> in accordance with this section for a nonresident who
1-14 was a resident at the time the cause of action accrued but has
1-15 subsequently moved.
1-16 (e) Service of process on the secretary of state
1-17 <comptroller> under this section must be accompanied by the <a $25>
1-18 fee provided by Section A(20), Article 10.01, Texas Business
1-19 Corporation Act, for the maintenance by the secretary of state
1-20 <comptroller> of a record of the service of process. <The fee for
1-21 the comptroller's certification of the service of process on the
1-22 defendant or of any other matter related to the service of process
1-23 is $10.>
1-24 SECTION 2. Subsection (d), Section 11.86, Education Code, is
2-1 amended to read as follows:
2-2 (d) On request of the commissioner of education or a school
2-3 district, the comptroller may <shall> audit a school district to
2-4 determine the total taxable value of property in the school
2-5 district, including the productivity values of land only if the
2-6 land qualifies for appraisal on that basis and the owner of the
2-7 land has applied for and received a productivity appraisal. The
2-8 comptroller shall certify the <its> findings of the audit to the
2-9 commissioner.
2-10 SECTION 3. Subsection (i), Section 825.405, Government Code,
2-11 is amended to read as follows:
2-12 (i) Not later than the seventh day after the final date the
2-13 comptroller certifies to the commissioner of education changes to
2-14 the property value study conducted under Section 11.86, Education
2-15 Code, the <The> comptroller shall certify to the Teacher Retirement
2-16 System of Texas <by June 7 of each year>:
2-17 (1) the effective tax rate for school district
2-18 maintenance and operation revenues for each school district in the
2-19 state for the immediately preceding tax year; and
2-20 (2) the statewide average effective tax rate for
2-21 school district maintenance and operation revenues for the
2-22 immediately preceding tax year.
2-23 SECTION 4. Section 23.53, Tax Code, is amended to read as
2-24 follows:
2-25 Sec. 23.53. Capitalization Rate. The capitalization rate to
2-26 be used in determining the appraised value of qualified open-space
2-27 land as provided by this subchapter is 10 percent or the interest
3-1 rate specified by the Farm Credit Bank of Texas or its successor
3-2 <Federal Land Bank of Houston> on December 31 of the preceding year
3-3 plus 2 1/2 percentage points, whichever percentage is greater.
3-4 SECTION 5. Section 23.74, Tax Code, is amended to read as
3-5 follows:
3-6 Sec. 23.74. Capitalization Rate. The capitalization rate to
3-7 be used in determining the appraised value of qualified timber land
3-8 as provided by this subchapter is the interest rate specified by
3-9 the Farm Credit Bank of Texas or its successor <Federal Land Bank
3-10 of Houston> on December 31 of the preceding year plus 2 1/2
3-11 percentage points.
3-12 SECTION 6. Subsection (j), Section 23.75, Tax Code, is
3-13 amended to read as follows:
3-14 (j) If the chief appraiser discovers that appraisal under
3-15 this subchapter has been erroneously allowed in any one of the five
3-16 <10> preceding years because of failure of the person whose land
3-17 was allowed appraisal under this subchapter to give notice that its
3-18 eligibility had ended, the chief appraiser <he> shall add the
3-19 difference between the appraised value of the land under this
3-20 subchapter and the market value of the land to the appraisal roll
3-21 as provided by Section 25.21 of this code for other property that
3-22 escapes taxation.
3-23 SECTION 7. Subsection (e), Section 23.84, Tax Code, is
3-24 amended to read as follows:
3-25 (e) If the chief appraiser discovers that appraisal under
3-26 this subchapter has been erroneously allowed in any one of the five
3-27 <10> preceding years, the chief appraiser <he> shall add the
4-1 difference between the appraised value of the land under this
4-2 subchapter and the market value of the land if it had not been
4-3 restricted to recreational, park, or scenic uses to the appraisal
4-4 roll as provided by Section 25.21 of this code for other property
4-5 that escapes taxation.
4-6 SECTION 8. Subsection (e), Section 23.94, Tax Code, is
4-7 amended to read as follows:
4-8 (e) If the chief appraiser discovers that appraisal under
4-9 this subchapter has been erroneously allowed in any one of the five
4-10 <10> preceding years, the chief appraiser <he> shall add the
4-11 difference between the appraised value of the property under this
4-12 subchapter and the value of the property if it had not been
4-13 restricted to use as public access airport property to the
4-14 appraisal roll as provided by Section 25.21 of this code for other
4-15 property that escapes taxation.
4-16 SECTION 9. Section 25.06, Tax Code, is amended to read as
4-17 follows:
4-18 Sec. 25.06. PROPERTY ENCUMBERED BY POSSESSORY OR SECURITY
4-19 INTEREST. Except as provided by Section <Sections> 25.07 <and
4-20 25.15> of this code, property encumbered by a leasehold or other
4-21 possessory interest or by a mortgage, deed of trust, or other
4-22 interest securing payment or performance of an obligation shall be
4-23 listed in the name of the owner of the property so encumbered.
4-24 SECTION 10. Subsection (b), Section 32.07, Tax Code, is
4-25 amended to read as follows:
4-26 (b) The person in whose name a property is required to be
4-27 listed by Section 25.13 <or 25.15> of this code is personally
5-1 liable for the taxes imposed on the property.
5-2 SECTION 11. Section 31.015, Tax Code, is transferred to
5-3 Section 33.011, Tax Code, as Subsections (b) through (g) of that
5-4 section, and Section 33.011 is amended to read as follows:
5-5 Sec. 33.011. Waiver of Penalties and Interest. (a) The
5-6 governing body of a taxing unit shall waive penalties and may
5-7 provide for the waiver of interest on a delinquent tax if an act or
5-8 omission of an officer, employee, or agent of the taxing unit or
5-9 the appraisal district in which the taxing unit participates caused
5-10 or resulted in the taxpayer's failure to pay the tax before
5-11 delinquency and if the tax is paid within 21 days after the
5-12 taxpayer knows or should know of the delinquency. <A request for a
5-13 waiver of penalties under this section must be made within six
5-14 months of the delinquency date.>
5-15 (b) <Sec. 31.015. CERTAIN TAX BILLS: PENALTY AND INTEREST
5-16 EXCLUDED. (a)> If a tax bill is returned undelivered to the
5-17 taxing unit by the United States Postal Service, the governing body
5-18 of the taxing unit shall waive penalties and interest <on the
5-19 amount of the tax to which the bill applies shall be waived> if:
5-20 (1) the taxing unit does not send another tax bill on
5-21 the property in question at least 21 days before the delinquency
5-22 date to the current mailing address furnished by the property owner
5-23 and the property owner establishes that a current mailing address
5-24 was furnished to the appraisal district by the property owner for
5-25 the tax bill before September 1 of the year in which the tax is
5-26 assessed; or
5-27 (2) the tax bill was returned because of an act or
6-1 omission of an officer, employee, or agent of the taxing unit or
6-2 the appraisal district in which the taxing unit participates and
6-3 the taxing unit or appraisal district did not send another tax bill
6-4 on the property in question at least 21 days before the delinquency
6-5 date to the proper mailing address.
6-6 (c) <(b)> For the purposes of this section, a property owner
6-7 is considered to have furnished a current mailing address to the
6-8 taxing unit or to the appraisal district if the current address is
6-9 expressly communicated to the appraisal district in writing or if
6-10 the appraisal district received a copy of a recorded instrument
6-11 transferring ownership of real property and the current mailing
6-12 address of the new owner is included in the instrument or in
6-13 accompanying communications or letters of transmittal.
6-14 (d) <(c)> A request for a waiver of penalties and interest
6-15 under this section must be made before the 181st day after the
6-16 delinquency date <within six months of the delinquency date>.
6-17 (e) <(d)> Penalties and interest do not accrue during the
6-18 period that a bill is not sent under Section 31.01(f).
6-19 (f) <(e)> A property owner is not entitled to relief under
6-20 Subsection (b) of this section if the property owner or the owner's
6-21 agent furnished an incorrect mailing address to the appraisal
6-22 district or the taxing unit or to an employee or agent of the
6-23 district or unit.
6-24 (g) Taxes for which penalties and interest have been waived
6-25 under Subsection (b) of this section must be paid within 21 days of
6-26 the property owner having received a bill for those taxes at the
6-27 current mailing address.
7-1 SECTION 12. Subsections (b) and (d), Section 42.08, Tax
7-2 Code, are amended to read as follows:
7-3 (b) Except as provided in Subsection (d), a <A> property
7-4 owner who appeals as provided by this chapter must pay taxes on the
7-5 property subject to the appeal in the amount required by this
7-6 subsection before the delinquency date or the property owner
7-7 forfeits the right to proceed to a final determination of the
7-8 appeal. The amount of taxes the property owner must pay on the
7-9 property before the delinquency date to comply with this subsection
7-10 is:
7-11 (1) the amount of taxes due on the portion of the
7-12 taxable value of the property that is not in dispute or the amount
7-13 of taxes imposed on the property in the preceding year, whichever
7-14 is greater; or
7-15 (2) the amount of taxes due on the property under the
7-16 order from which the appeal is taken.
7-17 (d) After filing an oath of inability to pay the taxes at
7-18 issue, a party may be excused from the requirement of prepayment of
7-19 tax as a prerequisite to appeal if the court, after notice and
7-20 hearing, finds that such prepayment would constitute an
7-21 unreasonable restraint on the party's right of access to the
7-22 courts. On the motion of a party, the court shall hold a hearing
7-23 to review and determine compliance with this section, and the
7-24 reviewing court may set such terms and conditions on any grant of
7-25 relief as may be reasonably required by the circumstances. If the
7-26 court determines that the property owner has not substantially
7-27 complied with this section, the court shall dismiss the pending
8-1 action. If the court determines that the property owner has
8-2 substantially but not fully complied with this section, the court
8-3 shall dismiss the pending action unless the property owner fully
8-4 complies with the court's determination within 30 days of the
8-5 determination.
8-6 SECTION 13. Section 112.108, Tax Code, is amended to read as
8-7 follows:
8-8 Sec. 112.108. OTHER ACTIONS PROHIBITED. Except for a
8-9 restraining order or injunction issued as provided by this
8-10 subchapter, a court may not issue a restraining order, injunction,
8-11 declaratory judgment, writ of mandamus or prohibition, order
8-12 requiring the payment of taxes or fees into the registry or custody
8-13 of the court, or other similar legal or equitable relief against
8-14 the state or a state agency relating to the applicability,
8-15 assessment, collection, or constitutionality of a tax or fee
8-16 covered by this subchapter or the amount of the tax or fee due,
8-17 provided, however, that after filing an oath of inability to pay
8-18 the tax, penalties, and interest due, a party may be excused from
8-19 the requirement of prepayment of tax as a prerequisite to appeal if
8-20 the court, after notice and hearing, finds that such prepayment
8-21 would constitute an unreasonable restraint on the party's right of
8-22 access to the courts. The court may grant such relief as may be
8-23 reasonably required by the circumstances. A grant of declaratory
8-24 relief against the state or a state agency shall not entitle the
8-25 winning party to recover attorney fees.
8-26 SECTION 14. (a) This section applies only to a county with
8-27 a population of more than 225,000.
9-1 (b) An exemption from ad valorem taxation adopted by the
9-2 commissioners court of a county under Subsection (n), Section
9-3 11.13, Tax Code, after May 1, 1995, for the 1995 tax year is
9-4 validated as of the date the exemption was adopted.
9-5 (c) The ad valorem taxation proceedings of the county
9-6 occurring after the adoption of the exemption are validated and may
9-7 not be held invalid because the exemption under Subsection (n),
9-8 Section 11.13, Tax Code, was not adopted in accordance with that
9-9 section.
9-10 (d) This section does not apply to any matter that on the
9-11 effective date of this Act:
9-12 (1) is involved in litigation if the litigation
9-13 ultimately results in the matter being held invalid by a final
9-14 judgment of a court of competent jurisdiction; or
9-15 (2) has been held invalid by a final judgment of a
9-16 court of competent jurisdiction.
9-17 (e) This section expires January 1, 1996.
9-18 SECTION 15. The change in law made by Section 1 of this Act
9-19 applies only to service of process in a suit filed on or after the
9-20 effective date of this Act. Service of process in a suit filed
9-21 before the effective date of this Act is covered by the law in
9-22 effect when the suit was filed, and the former law is continued in
9-23 effect for that purpose.
9-24 SECTION 16. (a) Except as provided by Subsection (b) of
9-25 this section, this Act takes effect January 1, 1996.
9-26 (b) Section 14 of this Act takes effect immediately.
9-27 SECTION 17. The importance of this legislation and the
10-1 crowded condition of the calendars in both houses create an
10-2 emergency and an imperative public necessity that the
10-3 constitutional rule requiring bills to be read on three several
10-4 days in each house be suspended, and this rule is hereby suspended,
10-5 and that this Act take effect and be in force according to its
10-6 terms, and it is so enacted.