By: Armbrister S.B. No. 1326
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the appraisal of property for tax purposes.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 1.07, Tax Code, is amended by adding a
1-4 new Subsection (d) to read as follows:
1-5 (d) Notices relating to omitted property, rollbacks,
1-6 exemption denials, special valuation denials, and correction of
1-7 appraisal rolls pursuant to Section 25.25 of this Code, shall be
1-8 delivered by certified mail.
1-9 SECTION 2. Section 1.111, Tax Code, is amended by adding a
1-10 new subsection (i) to read as follows:
1-11 (i) Upon the written request of the owner of property
1-12 subject to appraisal by an appraisal district, the comptroller
1-13 shall conduct a preliminary investigation to determine whether
1-14 there is reasonable cause to believe that the appraisal review
1-15 board is in violation of Section 41.01 of this code. If the
1-16 comptroller determines that reasonable cause exists, the
1-17 comptroller shall appoint a special master who may exercise
1-18 supervision and control over operations of the appraisal review
1-19 board until the appraisal review board is in compliance with this
1-20 code. The appraisal district shall bear the costs related to the
1-21 master's supervision and control.
1-22 SECTION 3. Subchapter C, Chapter 6, Tax Code, is amended by
1-23 adding Section 6.414 to read as follows:
2-1 Sec. 6.414. TRAINING. (a) The Comptroller shall establish
2-2 a program to provide training for all members of appraisal review
2-3 boards.
2-4 (b) A person appointed as a member of an appraisal review
2-5 board is required to attend and receive certification of
2-6 participation in the training program established by the
2-7 Comptroller in accordance with rules adopted by the Comptroller as
2-8 a prerequisite to participation in hearings.
2-9 SECTION 4. Subchapter C, Chapter 6, Tax Code, is amended by
2-10 adding Section 6.415 to read as follows:
2-11 Sec. 6.415. ELIGIBILITY OF FORMER OFFICERS AND DIRECTORS OF
2-12 TAX ENTITIES. Any person who has been an officer, director, or
2-13 employee of a taxing entity or an appraisal district is not
2-14 eligible to serve on an appraisal review board that reviews
2-15 appraisals of property within such taxing entity or appraisal
2-16 district.
2-17 SECTION 5. Subsection (h), Section 11.251, Tax Code, is
2-18 amended to read as follows:
2-19 (h) The chief appraiser by written notice delivered to a
2-20 property owner who claims an exemption under this section may
2-21 require the property owner to provide copies of inventory or
2-22 property records in order to determine the amount and value of
2-23 freeport goods. If the property owner fails to deliver the
2-24 information requested in the notice before approval of the
2-25 appraisal records by the appraisal review board <the 31st day after
3-1 the date the notice is delivered to the property owner>, the
3-2 property owner forfeits the right to claim or receive the exemption
3-3 for that year.
3-4 SECTION 6. Chapter 11, Tax Code, is amended by adding a new
3-5 Section 11.437 to read as follows:
3-6 Sec. 11.437. LATE APPLICATION FOR FREEPORT EXEMPTION.
3-7 (a) The chief appraiser shall accept and approve or deny an
3-8 application for exemption under Section 11.251 of this Code after
3-9 the deadline for filing it has passed if it is filed before
3-10 approval of the appraisal records by the appraisal review board.
3-11 (b) If an exemption under Section 11.251 of this Code is
3-12 approved when the application is filed late, the owner is liable
3-13 for a penalty of 10 percent of the difference between the amount of
3-14 tax imposed on the property and the amount that would be imposed if
3-15 the property were taxed at market value.
3-16 (c) The chief appraiser shall make an entry on the appraisal
3-17 records indicating the person's liability for the penalty and shall
3-18 deliver written notice of imposition of the penalty, explaining the
3-19 reason for its imposition, to the person.
3-20 (d) The tax assessor for a taxing unit that taxes property
3-21 subject to exemption under Section 11.251 of this Code after a late
3-22 application shall add the amount of the penalty to the owner's tax
3-23 bill, and the tax collector for the unit shall collect the penalty
3-24 at the time and in the manner he collects the tax. The amount of
3-25 the penalty constitutes a lien against the property against which
4-1 the penalty is imposed, as if it were a tax, and accrues penalty
4-2 and interest in the same manner as a delinquent tax.
4-3 SECTION 7. Subsection (a), Section 22.23, Tax Code, is
4-4 amended to read as follows:
4-5 (a) Rendition statements and property reports must be
4-6 delivered to the chief appraiser after January 1 and not later than
4-7 <before> April 15, except as provided by Section 22.02 of this
4-8 code.
4-9 SECTION 8. Subsection (f), Section 23.55, Tax Code, is
4-10 amended to read as follows:
4-11 (f) The sanctions provided by Subsection (a) of this section
4-12 do not apply if the change of use occurs as a result of the
4-13 transfer by sale, gift, or otherwise, <a sale> for right-of way or
4-14 other public purpose, or a condemnation.
4-15 SECTION 9. Section 25.25, Tax Code, is amended to read as
4-16 follows:
4-17 Sec. 25.25. Correction of Appraisal Roll. (a) Except as
4-18 provided by Chapters 41 and 42 of this code and by this section,
4-19 the appraisal roll may not be changed.
4-20 (b) The chief appraiser may change the appraisal roll at any
4-21 time to correct a name or address, a description of property, or a
4-22 clerical error that does not affect the amount of tax liability.
4-23 (C) At any time before the end of five years after January 1
4-24 of a tax year, the appraisal review board, on motion of the chief
4-25 appraiser or of a property owner, may direct by written order
5-1 changes in the appraisal roll to correct:
5-2 (1) clerical errors that affect a property owner's
5-3 liability for a tax imposed in that tax year;
5-4 (2) multiple appraisals of a property in that tax
5-5 year; <or>
5-6 (3) the inclusion of property that does not exist in
5-7 the form or at the location described in the appraisal roll, or
5-8 (4) the listing of a person as the property owner if
5-9 the person does not own the property.
5-10 (d) At any time prior to the date the taxes become
5-11 delinquent, a property owner or the chief appraiser may file a
5-12 motion with the appraisal review board to change the appraisal roll
5-13 to correct an error that resulted in an incorrect appraised value
5-14 for the owner's property. However, the error may not be corrected
5-15 unless it resulted in an appraised value that exceeds by more than
5-16 one-third the correct appraised value. If the appraisal roll is
5-17 changed under this subsection, the property owner must pay to each
5-18 affected taxing unit a late-correction penalty equal to 10 percent
5-19 of the amount of taxes as calculated on the basis of the corrected
5-20 appraised value. The roll may not be changed under this subsection
5-21 if the property was the subject of a protest brought by the
5-22 property owner under Chapter 41 or if the appraised value of the
5-23 property was established as a result of a written agreement between
5-24 the property owner or his agent and the appraisal district.
5-25 (e) A party bringing a motion under Subsection (c) or (d) of
6-1 this section is entitled to a hearing on and a determination of the
6-2 motion by the appraisal review board. Not later than 15 days
6-3 before the hearing, the board must deliver written notice of the
6-4 date, time, and place of the hearing to the chief appraiser, the
6-5 property owner, and the presiding officer of the governing body of
6-6 each taxing unit in which the property is located. The chief
6-7 appraiser, the property owner, and each taxing unit are entitled to
6-8 present evidence and argument at the hearing and to receive written
6-9 notice of the board's determination of the motion. A property
6-10 owner who files the motion must comply with the payment
6-11 requirements of Section 42.08 of this code or he forfeits his right
6-12 to a final determination of the motion.
6-13 (f) The chief appraiser shall certify each change made as
6-14 provided by this section to the assessor for each unit affected by
6-15 the change within five days after the date the change is entered.
6-16 (g) Within 45 days after receiving notice of the appraisal
6-17 review board's determination of a motion under this section, the
6-18 property owner or the chief appraiser may file suit to compel the
6-19 board to order a change in the appraisal roll as required by this
6-20 section.
6-21 (h) The chief appraiser shall change the appraisal records
6-22 and school district appraisal rolls promptly to reflect the
6-23 detachment and annexation of property among school districts under
6-24 Subchapter C or G, Chapter 36, Education Code.
6-25 <(h)> (i) The appraisal review board, on the joint motion of
7-1 the property owner and the chief appraiser filed at any time prior
7-2 to the date the taxes become delinquent, shall by written order
7-3 correct an error that resulted in an incorrect appraised value for
7-4 the owner's property.
7-5 <(i)> (j) A person who acquires property after January 1 of
7-6 the tax year at issue is entitled to file any motion that this
7-7 section authorizes the person who owned the property on January 1
7-8 of that year to file, if the deadline for filing the motion has not
7-9 passed.
7-10 <(j)> (k) If during the pendency of a motion under this
7-11 section the ownership of property subject to the motion changes,
7-12 the new owner of the property is entitled to proceed with the
7-13 motion in the same manner as the property owner who filed the
7-14 motion.
7-15 (l) Motions may be filed under Subsection (c) of this
7-16 section whether or not a protest under Chapter 41 was filed
7-17 regarding the value of the property for any year to be corrected.
7-18 (m) A hearing on a motion filed under Subsection (c) or (d)
7-19 of this Section shall be held in accordance with the provisions of
7-20 Subchapter C, Chapter 41 of this Code governing protests and shall
7-21 be subject to judicial review in accordance with Chapter 42 of this
7-22 Code.
7-23 (n) The appraisal review board shall accept and consider a
7-24 motion filed by an agent of a property owner if an agency
7-25 authorization is filed at or before the hearing on the motion.
8-1 (o) The decision of the board must be based only on
8-2 information presented at the hearing on the motion.
8-3 SECTION 10. Section 41.01, Tax Code, is amended to read as
8-4 follows:
8-5 Sec. 41.01. Duties of Appraisal Review Board. (a) The
8-6 appraisal review board shall have the authority to:
8-7 (1) determine protests initiated by property owners;
8-8 (2) determine challenges initiated by taxing units;
8-9 (3) correct clerical errors in the appraisal records
8-10 and the appraisal rolls;
8-11 (4) act on motions to correct appraisal rolls under
8-12 Section 25.25;
8-13 (5) determine whether an exemption or a partial
8-14 exemption is improperly granted and whether land is improperly
8-15 granted appraisal as provided by Subchapter C, D, or E, Chapter 23;
8-16 and
8-17 (6) take any other action or make any other
8-18 determination that this title specifically authorizes or requires.
8-19 (b) The appraisal review board may not engage in any
8-20 activity or make any determination not specifically authorized by
8-21 this Code. No other authority is granted or implied.
8-22 SECTION 11. Section 41.44, Tax Code, is amended by adding a
8-23 new Subsection (e) to read as follows:
8-24 (e) The appraisal review board shall accept and consider a
8-25 protest filed by an agent of a property owner if an agency
9-1 authorization is filed at or before the hearing on the protest.
9-2 SECTION 12. Section 41.45, Tax Code, is amended by amending
9-3 Subsections (b), (d), and (e), and adding a new Subsection (g) to
9-4 read as follows:
9-5 (b) The property owner initiating the protest is entitled to
9-6 an opportunity to appear to offer evidence or argument. The
9-7 property owner may offer his evidence or argument by affidavit
9-8 without personally appearing if he attests to the affidavit before
9-9 an officer authorized to administer oaths and submits the affidavit
9-10 to the board hearing the protest before it begins the hearing on
9-11 the protest. On receipt of an affidavit, the board shall notify
9-12 the chief appraiser. The chief appraiser may inspect the affidavit
9-13 and is entitled to a copy on request. An affidavit is sufficient
9-14 if it identifies the protesting property owner, identifies the
9-15 property that is the subject of the protest, and indicates apparent
9-16 dissatisfaction with some determination of the appraisal office.
9-17 (d) An appraisal review board consisting of more than three
9-18 members may sit in panels of not fewer than three members to
9-19 conduct protest hearings. However, the determination of a protest
9-20 heard by a panel must be made by the board. If the recommendation
9-21 of a panel is not accepted by the board, the full board shall
9-22 schedule a hearing on the protest. Notice of the hearing by the
9-23 full board shall be given and the hearing shall be conducted in
9-24 accordance with the provisions of this Subchapter.
9-25 (e) The board shall postpone the hearing to a later date if
10-1 the property owner or the owner's agent shows good cause for the
10-2 postponement or if the chief appraiser consents to the
10-3 postponement. A hearing set on the same date as a hearing
10-4 previously set by another appraisal district involving the same
10-5 property owner or the owner's agent shall be good cause for a
10-6 postponement. The hearing may not be postponed to a date less than
10-7 five or more that 15 days after the date scheduled for the original
10-8 hearing unless the date and time of the hearing as postponed are
10-9 agreed to by the appraisal review board, the property owner, and
10-10 the chief appraiser. Postponement under this subsection does not
10-11 require the delivery of additional written notice to the property
10-12 owner.
10-13 (g) Prior to or immediately upon opening a hearing on a
10-14 protest, the chief appraiser shall provide copies of all written
10-15 materials that will be provided to the appraisal review board
10-16 during the hearing to the property owner or to an agent
10-17 representing the owner at the hearing.
10-18 SECTION 13. Section 41.47, Tax Code, is amended to read as
10-19 follows:
10-20 Sec. 41.47. Determination of Protest. (a) The appraisal
10-21 review board hearing a protest shall determine the protest and make
10-22 its decision by written order.
10-23 (b) The decision of the board must be based only on
10-24 information presented at the hearing on the protest.
10-25 <(b)> (c) If on determining a protest the board finds that
11-1 the appraisal records are incorrect in some respect raised by the
11-2 protest, the board by its order shall correct the appraisal records
11-3 by changing the appraised value place on the protesting property
11-4 owner's property or by making the other changes in the appraisal
11-5 records that are necessary to conform the records to the
11-6 requirement of law. If the appraised value of a taxable property
11-7 interest, other that an interest owned by a public utility or by a
11-8 cooperative corporation organized to provide utility service, is
11-9 changed as the result of a protest or challenge, the board shall
11-10 change the appraised value of all other interests, other than an
11-11 interest owned by a public utility or by a cooperative corporation
11-12 organized to provide utility service, in the same property,
11-13 including a mineral in place, in proportion to the ownership
11-14 interests.
11-15 (d) The board shall deliver by certified mail a notice of
11-16 issuance of the order and a copy of the order to the property owner
11-17 and the chief appraiser.
11-18 (e) The notice of the issuance of the order must contain a
11-19 prominently printed statement in upper-case bold lettering
11-20 informing the property owner in clear and concise language of the
11-21 property owner's right to appeal the board's decision to district
11-22 court. The statement must describe the deadline prescribed by
11-23 Section 42.06(a) of this code for filing a written notice of
11-24 appeal, and the deadline prescribed by Section 42.21(a) of this
11-25 code for filing the petition for review with the district court.
12-1 SECTION 14. Chapter 41, Tax Code, is amended by adding a new
12-2 Section 41.48 to read as follows:
12-3 Section 41.48. SETTLEMENT AGREEMENTS. The appraisal review
12-4 board must change the appraisal records or the appraisal roll to
12-5 reflect any agreement between a property owner or the owner's agent
12-6 and the chief appraiser that is final pursuant to Section 1.111 (e)
12-7 of this Code. A property owner or the owner's agent may file suit
12-8 in a court having jurisdiction to compel the appraisal review board
12-9 to comply with this section.
12-10 SECTION 15. Subsection (c), Section 41.61, Tax Code, is
12-11 amended to read as follows:
12-12 (c) An appraisal review board may not issue a subpoena under
12-13 this section unless the board holds a hearing at which the board
12-14 determines that good cause exists for the issuance of the subpoena.
12-15 The appraisal review board shall notify all parties to the protest
12-16 and the person to whom the subpoena is to be addressed of the date,
12-17 time, and place of the hearing. All parties to the protest and the
12-18 person to whom the subpoena is to be addressed may participate in
12-19 the hearing.
12-20 SECTION 16. Section 41.66, Tax Code, is amended by adding a
12-21 new Subsection (i) to read as follows:
12-22 (i) A violation of Subsection (f) of this section is a class
12-23 B misdemeanor.
12-24 SECTION 17. Subsection (d), Section 41.67, Tax Code, is
12-25 amended to read as follows:
13-1 (d) Information that was previously requested under Section
13-2 41.461 by the protesting party <or the chief appraiser> that was
13-3 not made available to the protesting party <or the chief appraiser>
13-4 at least 14 days before the scheduled or postponed hearing may not
13-5 be used as evidence in the hearing.
13-6 SECTION 18. Subsection (b), Section 42.06, Tax Code, is
13-7 repealed and Subsections (c), (d), and (e), Section 42.06 are
13-8 amended to read as follows:
13-9 (b) <(c)> A party other than a chief appraiser or property
13-10 owner who appeals an order of an appraisal review board shall file
13-11 the notice with the chief appraiser of the appraisal district for
13-12 which the appraisal review board is established. A chief appraiser
13-13 who appeals an order of an appraisal review board shall file the
13-14 notice with the appraisal review board. A party who appeals an
13-15 order of the comptroller shall file the notice with the
13-16 comptroller.
13-17 (c) <(d)> If the chief appraiser, a taxing unit, or a county
13-18 appeals, the chief appraiser, if the appeal is of an order of the
13-19 appraisal review board, or the comptroller, if the appeal is of an
13-20 order of the comptroller, shall deliver a copy of the notice to the
13-21 property owner whose property is involved in the appeal within 10
13-22 days after the date the notice is filed.
13-23 (d) <(e)> On the filing of a notice of appeal, the chief
13-24 appraiser shall indicate where appropriate those entries on the
13-25 appraisal records that are subject to the appeal.
14-1 SECTION 19. Section 42.07, Tax Code, is amended to read as
14-2 follows:
14-3 Sec. 42.07. Costs of Appeal. (a) The reviewing court in
14-4 its discretion may charge all or part of the costs of an appeal
14-5 taken as provided by this chapter against any of the parties.
14-6 (b) If an appraisal review board is found to have violated
14-7 the provisions of Section 25.25 or Chapter 41 of this Code relating
14-8 to procedures for hearings, the reviewing court shall charge all of
14-9 the costs of an appeal taken as provided by this chapter and the
14-10 reasonable attorneys fees of the parties against the appraisal
14-11 district.
14-12 SECTION 20. Subsection (b), Section 42.43, Tax Code, is
14-13 amended to read as follows:
14-14 (b) For a refund made under this section because an
14-15 exemption under Section 11.20 that was denied by the chief
14-16 appraiser or appraisal review board is granted, the taxing unit
14-17 shall include with the refund interest on the amount refunded
14-18 calculated at an annual rate that is equal to the auction average
14-19 rate quoted on a bank discount basis for three-month treasury bills
14-20 issued by the United States government, as published by the Federal
14-21 Reserve Board, for the week in which the taxes became delinquent,
14-22 but not more that 10 percent, calculated from the delinquency date
14-23 for the taxes until the date the refund is made. For any other
14-24 refund made under this section, the taxing unity shall include with
14-25 the refund interest on the amount refunded at an annual rate of
15-1 <that is equal to the auction average rate quoted on a bank
15-2 discount basis for three-month treasury bills issued by the United
15-3 States government, as published by the Federal Reserve Board, for
15-4 the week in which the taxes became delinquent, but not more than>
15-5 eight percent, calculated from the delinquency date for the taxes
15-6 until the date the refund is made.
15-7 SECTION 21. Section 43.01, Tax Code, is amended to read as
15-8 follows:
15-9 Sec. 43.01. Authority to Bring Suit. A taxing unit may sue
15-10 the appraisal district that appraises property for the unit and a
15-11 property owner may sue the appraisal district that appraises
15-12 property owned by the property owner to compel the appraisal
15-13 district to comply with the provisions of this title, rules of the
15-14 comptroller, or other applicable law.
15-15 SECTION 22. Subsection (c), Section 3, Art. 8886, Texas
15-16 Revised Civil Statutes, is amended read as follows:
15-17 (c) To be eligible to register as a senior property tax
15-18 consultant under this article, an applicant must:
15-19 (1) acquire at least 25 credits as provided by
15-20 Subsections (d) through (h) of this section;
15-21 (2) have performed or supervised other persons in the
15-22 performance of property tax consulting services as the applicant's
15-23 primary occupation for at least four of the seven years preceding
15-24 the date of the application; provided, however, that "property tax
15-25 consulting services," as used in this subsection, shall not include
16-1 service with an appraisal district or an appraisal firm, and
16-2 (3) pass the examination required under this article
16-3 for registration as a senior property tax consultant or hold a
16-4 professional designation in property taxation granted by a
16-5 nonprofit, voluntary trade association, institute, or organization
16-6 that has a membership primarily composed of persons who represent
16-7 property owners in property tax and transactional tax matters and
16-8 that:
16-9 (A) has written experience and examination
16-10 requirements for granting the professional designation; and
16-11 (B) subscribes to a code of professional conduct
16-12 or ethics.
16-13 SECTION 23. The importance of this legislation and the
16-14 crowded condition of the calendars in both houses create an
16-15 emergency and an imperative public necessity that the
16-16 constitutional rule requiring bills to be read on three several
16-17 days in each house be suspended, and this rule is hereby suspended.