1-1 By: Montford S.B. No. 642
1-2 (In the Senate - Filed February 17, 1995; February 20, 1995,
1-3 read first time and referred to Committee on Finance;
1-4 April 3, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 10, Nays 0; April 3, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 642 By: Montford
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the appraisal of property for ad valorem taxation and
1-11 the assessment and collection of ad valorem taxes.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subsections (a), (b), and (e), Section 17.091,
1-14 Civil Practice and Remedies Code, are amended to read as follows:
1-15 (a) In a suit growing out of property taxation by the state
1-16 or a legal subdivision of the state in which a person who is a
1-17 defendant is a nonresident, the secretary of state <comptroller> is
1-18 an agent for service of process on that defendant if the defendant
1-19 owned, had, or claimed a taxable interest in property in this state
1-20 on the first day of a tax year for which taxes have not been paid.
1-21 (b) Process may be served on the secretary of state
1-22 <comptroller> in accordance with this section for a nonresident who
1-23 was a resident at the time the cause of action accrued but has
1-24 subsequently moved.
1-25 (e) Service of process on the secretary of state
1-26 <comptroller> under this section must be accompanied by the <a $25>
1-27 fee provided by Section A(20), Article 10.01, Texas Business
1-28 Corporation Act, for the maintenance by the secretary of state
1-29 <comptroller> of a record of the service of process. <The fee for
1-30 the comptroller's certification of the service of process on the
1-31 defendant or of any other matter related to the service of process
1-32 is $10.>
1-33 SECTION 2. Subsection (d), Section 11.86, Education Code, is
1-34 amended to read as follows:
1-35 (d) On request of the commissioner of education or a school
1-36 district, the comptroller may <shall> audit a school district to
1-37 determine the total taxable value of property in the school
1-38 district, including the productivity values of land only if the
1-39 land qualifies for appraisal on that basis and the owner of the
1-40 land has applied for and received a productivity appraisal. The
1-41 comptroller shall certify the <its> findings of the audit to the
1-42 commissioner.
1-43 SECTION 3. Subsection (i), Section 825.405, Government Code,
1-44 is amended to read as follows:
1-45 (i) Not later than the seventh day after the final date the
1-46 comptroller certifies to the commissioner of education changes to
1-47 the property value study conducted under Section 11.86, Education
1-48 Code, the <The> comptroller shall certify to the Teacher Retirement
1-49 System of Texas <by June 7 of each year>:
1-50 (1) the effective tax rate for school district
1-51 maintenance and operation revenues for each school district in the
1-52 state for the immediately preceding tax year; and
1-53 (2) the statewide average effective tax rate for
1-54 school district maintenance and operation revenues for the
1-55 immediately preceding tax year.
1-56 SECTION 4. Section 23.53, Tax Code, is amended to read as
1-57 follows:
1-58 Sec. 23.53. Capitalization Rate. The capitalization rate to
1-59 be used in determining the appraised value of qualified open-space
1-60 land as provided by this subchapter is 10 percent or the interest
1-61 rate specified by the Farm Credit Bank of Texas or its successor
1-62 <Federal Land Bank of Houston> on December 31 of the preceding year
1-63 plus 2 1/2 percentage points, whichever percentage is greater.
1-64 SECTION 5. Section 23.74, Tax Code, is amended to read as
1-65 follows:
1-66 Sec. 23.74. Capitalization Rate. The capitalization rate to
1-67 be used in determining the appraised value of qualified timber land
1-68 as provided by this subchapter is the interest rate specified by
2-1 the Farm Credit Bank of Texas or its successor <Federal Land Bank
2-2 of Houston> on December 31 of the preceding year plus 2 1/2
2-3 percentage points.
2-4 SECTION 6. Subsection (j), Section 23.75, Tax Code, is
2-5 amended to read as follows:
2-6 (j) If the chief appraiser discovers that appraisal under
2-7 this subchapter has been erroneously allowed in any one of the five
2-8 <10> preceding years because of failure of the person whose land
2-9 was allowed appraisal under this subchapter to give notice that its
2-10 eligibility had ended, the chief appraiser <he> shall add the
2-11 difference between the appraised value of the land under this
2-12 subchapter and the market value of the land to the appraisal roll
2-13 as provided by Section 25.21 of this code for other property that
2-14 escapes taxation.
2-15 SECTION 7. Subsection (e), Section 23.84, Tax Code, is
2-16 amended to read as follows:
2-17 (e) If the chief appraiser discovers that appraisal under
2-18 this subchapter has been erroneously allowed in any one of the five
2-19 <10> preceding years, the chief appraiser <he> shall add the
2-20 difference between the appraised value of the land under this
2-21 subchapter and the market value of the land if it had not been
2-22 restricted to recreational, park, or scenic uses to the appraisal
2-23 roll as provided by Section 25.21 of this code for other property
2-24 that escapes taxation.
2-25 SECTION 8. Subsection (e), Section 23.94, Tax Code, is
2-26 amended to read as follows:
2-27 (e) If the chief appraiser discovers that appraisal under
2-28 this subchapter has been erroneously allowed in any one of the five
2-29 <10> preceding years, the chief appraiser <he> shall add the
2-30 difference between the appraised value of the property under this
2-31 subchapter and the value of the property if it had not been
2-32 restricted to use as public access airport property to the
2-33 appraisal roll as provided by Section 25.21 of this code for other
2-34 property that escapes taxation.
2-35 SECTION 9. Section 25.06, Tax Code, is amended to read as
2-36 follows:
2-37 Sec. 25.06. PROPERTY ENCUMBERED BY POSSESSORY OR SECURITY
2-38 INTEREST. Except as provided by Section <Sections> 25.07 <and
2-39 25.15> of this code, property encumbered by a leasehold or other
2-40 possessory interest or by a mortgage, deed of trust, or other
2-41 interest securing payment or performance of an obligation shall be
2-42 listed in the name of the owner of the property so encumbered.
2-43 SECTION 10. Subsection (b), Section 32.07, Tax Code, is
2-44 amended to read as follows:
2-45 (b) The person in whose name a property is required to be
2-46 listed by Section 25.13 <or 25.15> of this code is personally
2-47 liable for the taxes imposed on the property.
2-48 SECTION 11. Section 31.015, Tax Code, is transferred to
2-49 Section 33.011, Tax Code, as Subsections (b) through (g) of that
2-50 section, and Section 33.011 is amended to read as follows:
2-51 Sec. 33.011. Waiver of Penalties and Interest. (a) The
2-52 governing body of a taxing unit shall waive penalties and may
2-53 provide for the waiver of interest on a delinquent tax if an act or
2-54 omission of an officer, employee, or agent of the taxing unit or
2-55 the appraisal district in which the taxing unit participates caused
2-56 or resulted in the taxpayer's failure to pay the tax before
2-57 delinquency and if the tax is paid within 21 days after the
2-58 taxpayer knows or should know of the delinquency. <A request for a
2-59 waiver of penalties under this section must be made within six
2-60 months of the delinquency date.>
2-61 (b) <Sec. 31.015. CERTAIN TAX BILLS: PENALTY AND INTEREST
2-62 EXCLUDED. (a)> If a tax bill is returned undelivered to the
2-63 taxing unit by the United States Postal Service, the governing body
2-64 of the taxing unit shall waive penalties and interest <on the
2-65 amount of the tax to which the bill applies shall be waived> if:
2-66 (1) the taxing unit does not send another tax bill on
2-67 the property in question at least 21 days before the delinquency
2-68 date to the current mailing address furnished by the taxpayer
2-69 <property owner> and the taxpayer <property owner> establishes that
2-70 a current mailing address was furnished to the appraisal district
3-1 by the taxpayer <property owner> for the tax bill before September
3-2 1 of the year in which the tax is assessed; or
3-3 (2) the tax bill was returned because of an act or
3-4 omission of an officer, employee, or agent of the taxing unit or
3-5 the appraisal district in which the taxing unit participates and
3-6 the taxing unit or appraisal district did not send another tax bill
3-7 on the property in question at least 21 days before the delinquency
3-8 date to the proper mailing address.
3-9 (c) <(b)> For the purposes of this section, a taxpayer
3-10 <property owner> is considered to have furnished a current mailing
3-11 address to the taxing unit or to the appraisal district if the
3-12 current address is expressly communicated to the appraisal district
3-13 in writing or if the appraisal district received a copy of a
3-14 recorded instrument transferring ownership of real property and the
3-15 current mailing address of the new owner is included in the
3-16 instrument or in accompanying communications or letters of
3-17 transmittal.
3-18 (d) <(c)> A request for a waiver of penalties and interest
3-19 under this section must be made before the 181st day after the
3-20 delinquency date <within six months of the delinquency date>.
3-21 (e) <(d)> Penalties and interest do not accrue during the
3-22 period that a bill is not sent under Section 31.01(f).
3-23 (f) <(e)> A taxpayer <property owner> is not entitled to
3-24 relief under Subsection (b) of this section if the taxpayer
3-25 <property owner> or the taxpayer's <owner's> agent furnished an
3-26 incorrect mailing address to the appraisal district or the taxing
3-27 unit or to an employee or agent of the district or unit.
3-28 (g) Taxes for which penalties and interest have been waived
3-29 under Subsection (b) of this section must be paid within 21 days
3-30 after <of> the taxpayer <property owner having> received a bill for
3-31 those taxes at the current mailing address.
3-32 SECTION 12. The change in law made by Section 1 of this Act
3-33 applies only to service of process in a suit filed on or after the
3-34 effective date of this Act. Service of process in a suit filed
3-35 before the effective date of this Act is covered by the law in
3-36 effect when the suit was filed, and the former law is continued in
3-37 effect for that purpose.
3-38 SECTION 13. This Act takes effect January 1, 1996.
3-39 SECTION 14. The importance of this legislation and the
3-40 crowded condition of the calendars in both houses create an
3-41 emergency and an imperative public necessity that the
3-42 constitutional rule requiring bills to be read on three several
3-43 days in each house be suspended, and this rule is hereby suspended.
3-44 * * * * *