Floor Packet Page No. 61
Amend CSHB 4 as follows:
(1) On page 108, between lines 1 and 2, insert the
following:
SECTION 2.____. Section 1.12, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) For purposes of this section, the appraisal ratio of
real property to which Section 23.21 applies is the ratio of the
property's market value as determined by the appraisal district or
appraisal review board, as applicable, to the market value of the
property according to law. The appraisal ratio is not calculated
according to the appraised value of the property as limited by
Section 23.21.
(2) On page 108, strike lines 16-22 and substitute the
following:
SECTION 2.____. Section 5.12(b), Tax Code, is amended to
read as follows:
(b) At the written request of the governing bodies of a
majority of the taxing units participating in an appraisal district
or of a majority of the group of taxing units composed of the
municipalities, school districts, and county participating in an
<entitled to vote on the appointment of> appraisal district
<directors>, the comptroller shall audit the performance of the
appraisal district. The governing bodies may request a general
audit of the performance of the appraisal district or may request
an audit of only one or more particular duties, practices,
functions, departments, or other appraisal district matters.
SECTION 2.____. Sections 5.13(c), (f), and (h), Tax Code,
are amended to read as follows:
(c) The comptroller must approve the specific plan for the
performance audit of an appraisal district. Before approving an
audit plan, the comptroller must provide any interested person an
opportunity to appear before the comptroller and to comment on the
proposed plan. Not later than the 20th day before the date the
comptroller considers the plan for an appraisal district
performance audit, the comptroller must notify the county
assessor-collector who governs <presiding officer of> the appraisal
district <board of directors> that the comptroller intends to
consider the plan. The notice must include the time, date, and
place of the meeting to consider the plan. <Immediately after
receiving the notice, the presiding officer shall deliver a copy of
the notice to the other members of the appraisal district board of
directors.>
(f) The comptroller shall report the results of the <its>
audit in writing to the governing body of each taxing unit that
participates in the appraisal district and<,> to the county
assessor-collector who governs <chief appraiser, and to the
presiding officer of> the appraisal district <board of directors>.
If the audit was requested under Section 5.12(c) <of this code>,
the comptroller shall also provide a report to a representative of
the property owners who requested the audit.
(h) At any time after the request for an audit is made, the
comptroller may discontinue the audit in whole or in part if
requested to do so by:
(1) the governing bodies of a majority of the taxing
units participating in the district, if the audit was requested by
a majority of those units;
(2) the governing bodies of a majority of the group of
taxing units composed of the municipalities, school districts, and
county participating in the <entitled to vote on the appointment
of> appraisal district <directors>, if the audit was requested by a
majority of those units; or
(3) if the audit was requested under Section 5.12(c)
<of this code>, by the taxpayers who requested the audit.
SECTION 2.____. Section 6.01(a), Tax Code, is amended to
read as follows:
(a) An appraisal district is established in each county.
The district is governed by the assessor-collector of the county
for which the district is established, who serves as the chief
appraiser for the district.
SECTION 2.____. Section 6.02(b), Tax Code, is amended to
read as follows:
(b) A taxing unit that has boundaries extending into two or
more counties may choose to participate in only one of the
appraisal districts. In that event, the boundaries of the district
chosen extend outside the county to the extent of the unit's
boundaries. To be effective, the choice must be approved by the
county assessor-collector who governs <resolution of the board of
directors of> the district chosen. The choice of a school district
to participate in a single appraisal district does not apply to
property annexed to the school district under Subchapter C or G,
Chapter 36, Education Code, unless:
(1) the school district taxes property other than
property annexed to the district under Subchapter C or G, Chapter
36, Education Code, in the same county as the annexed property; or
(2) the annexed property is contiguous to property in
the school district other than property annexed to the district
under Subchapter C or G, Chapter 36, Education Code.
(3) On page 109, strike lines 17 and 18 and substitute the
following:
SECTION 2.____. Section 6.05(b), Tax Code, is amended to
read as follows:
(b) The county assessor-collector who governs <board of
directors of> an appraisal district may contract with an appraisal
office in another district or with a taxing unit in the district to
perform the duties of the appraisal office for the district.
SECTION 2.____. Section 6.051, Tax Code, is amended to read
as follows:
Sec. 6.051. ]SOWNERSHIP OR LEASE OF REAL PROPERTY . (a) The
county assessor-collector who governs <board of directors of> an
appraisal district may purchase or lease real property and may
construct improvements as necessary to establish and operate the
appraisal office or a branch appraisal office.
(b) The acquisition or conveyance of real property or the
construction or renovation of a building or other improvement by an
appraisal district must be approved by the governing bodies of
three-fourths of the group of taxing units composed of the
municipalities, school districts, and county participating in the
appraisal district <entitled to vote on the appointment of board
members>. The county assessor-collector <board of directors by
resolution> may propose a property transaction or other action for
which this subsection requires approval of the taxing units. The
chief appraiser shall notify the presiding officer of each
governing body entitled to vote on the approval of the proposal by
delivering a copy of the proposal <board's resolution>, together
with information showing the costs of other available alternatives
to the proposal. On or before the 30th day after the date the
presiding officer receives notice of the proposal, the governing
body of a taxing unit by resolution may approve or disapprove the
proposal. If a governing body fails to act on or before that 30th
day or fails to file its resolution with the chief appraiser on or
before the 10th day after that 30th day, the proposal is treated as
if it were disapproved by the governing body.
(c) The county assessor-collector <board of directors> may
convey real property owned by the district, and the proceeds shall
be credited to each taxing unit that participates in the district
in proportion to the unit's allocation of the appraisal district
budget in the year in which the transaction occurs. A conveyance
must be approved as provided by Subsection (b) <of this section>,
and any proceeds shall be apportioned by an amendment to the annual
budget made as provided by Section 6.06(c) <Subsection (c) of
Section 6.06 of this code>.
<(d) An acquisition of real property by an appraisal
district before January 1, 1988, may be validated before March 1,
1988, in the manner provided by Subsection (b) of this section for
the acquisition of real property.>
SECTION 2.____. Section 6.06, Tax Code, is amended by
amending Subsections (a), (b), (c), (d), (f), (h), (i), and (j) and
adding Subsection (l) to read as follows:
(a) Each year the county assessor-collector <chief
appraiser> shall prepare a proposed budget for the operations of
the district for the following tax year and shall submit copies to
each taxing unit participating in the district <and to the district
board of directors> before June 15. The county assessor-collector
<He> shall include in the budget a list showing each proposed
position, the proposed salary for the position, all benefits
proposed for the position, each proposed capital expenditure, and
an estimate of the amount of the budget that will be allocated to
each taxing unit. Each municipality, each school district, and the
county participating in the district <taxing unit entitled to vote
on the appointment of board members> shall maintain a copy of the
proposed budget for public inspection at its principal
administrative office.
(b) The county assessor-collector <board of directors> shall
hold a public hearing to consider the budget. The county
assessor-collector <secretary of the board> shall deliver to the
presiding officer of the governing body of each taxing unit
participating in the district not later than the 10th day before
the date of the hearing a written notice of the date, time, and
place fixed for the hearing. The county assessor-collector <board>
shall complete the <its> hearings, make necessary <any> amendments
to the proposed budget <it desires>, and finally approve a budget
before September 15. If governing bodies of a majority of the
group of taxing units composed of the municipalities, school
districts, and county participating in the appraisal district
<taxing units entitled to vote on the appointment of board members>
adopt resolutions disapproving a budget and file them with the
county assessor-collector <secretary of the board> within 30 days
after its adoption, the budget does not take effect, and the county
assessor-collector <board> shall adopt a new budget within 30 days
of the disapproval.
(c) The county assessor-collector <board> may amend the
approved budget at any time<,> but <the secretary of the board>
must deliver a written copy of a proposed amendment to the
presiding officer of the governing body of each taxing unit
participating in the district not later than the 30th day before
the date the county assessor-collector <board> acts on it.
(4) On page 110, between lines 12 and 13, insert the
following:
(f) Payments shall be made to a depository designated by the
county assessor-collector <district board of directors>. The
district's funds may be disbursed only by a written check, draft,
or order signed by the county assessor-collector <chairman and
secretary of the board or, if authorized by resolution of the
board, by the chief appraiser>.
(h) If a newly formed taxing unit or a taxing unit that did
not impose taxes in the preceding year imposes taxes in any tax
year, that unit is allocated a portion of the amount budgeted to
operate the district as if it had imposed taxes in the preceding
year, except that the amount of taxes the unit imposes in the
current year is used to calculate its allocation. Before the
amount of taxes to be imposed for the current year is known, the
allocation may be based on an estimate to which the county
assessor-collector <district board of directors> and the governing
body of the unit agree, and the payments made after that amount is
known shall be adjusted to reflect the amount imposed. The
payments of a newly formed taxing unit that has no source of funds
are postponed until the unit has received adequate tax or other
revenues.
(i) The fiscal year of an appraisal district is the calendar
year unless the governing bodies of three-fourths of the group of
taxing units composed of the municipalities, school districts, and
county participating in the appraisal district <taxing units
entitled to vote on the appointment of board members> adopt
resolutions proposing a different fiscal year and file them with
the county assessor-collector <secretary of the board> not more
than 12 and not less than eight months before the first day of the
fiscal year proposed by the resolutions. If the fiscal year of an
appraisal district is changed under this subsection, the county
assessor-collector <chief appraiser> shall prepare a proposed
budget for the fiscal year as provided by Subsection (a) <of this
section> before the 15th day of the seventh month preceding the
first day of the fiscal year established by the change, and <the
board of directors> shall adopt a budget for the fiscal year as
provided by Subsection (b) <of this section> before the 15th day of
the fourth month preceding the first day of the fiscal year
established by the change. Unless the appraisal district adopts a
different method of allocation under Section 6.061 <of this code>,
the allocation of the budget to each taxing unit shall be
calculated as provided by Subsection (d) <of this section> using
the amount of property taxes imposed by each participating taxing
unit in the most recent tax year preceding the fiscal year
established by the change for which the necessary information is
available. Each taxing unit shall pay its allocation as provided
by Subsection (e) <of this section>, except that the first payment
shall be made before the first day of the fiscal year established
by the change and subsequent payments shall be made quarterly. In
the year in which a change in the fiscal year occurs, the budget
that takes effect on January 1 of that year may be amended as
necessary as provided by Subsection (c) <of this section> in order
to accomplish the change in fiscal years.
(j) If the total amount of the payments made or due to be
made by the taxing units participating in an appraisal district
exceeds the amount actually spent or obligated to be spent during
the fiscal year for which the payments were made, the county
assessor-collector <chief appraiser> shall credit the excess amount
against each taxing unit's allocated payments for the following
year in proportion to the amount of each unit's budget allocation
for the fiscal year for which the payments were made. If a taxing
unit that paid its allocated amount is not allocated a portion of
the district's budget for the following fiscal year, the county
assessor-collector <chief appraiser> shall refund to the taxing
unit its proportionate share of the excess funds not later than the
150th day after the end of the fiscal year for which the payments
were made.
(5) On page 110, between lines 17 and 18, insert the
following:
SECTION 2.____. Section 6.061, Tax Code, is amended to read
as follows:
Sec. 6.061. CHANGES IN METHOD OF FINANCING. (a) The county
assessor-collector who governs <board of directors of> an appraisal
district, by signed order <resolution adopted> and delivered to
each taxing unit participating in the district after June 15 and
before August 15, may prescribe a different method of allocating
the costs of operating the district unless the governing body of
any taxing unit that participates in the district adopts a
resolution opposing the different method<,> and files it with the
county assessor-collector <board of directors> before September 1.
If a <board> proposal is rejected, the county assessor-collector
<board> shall notify, in writing, each taxing unit participating in
the district before September 15.
(b) The taxing units participating in an appraisal district
may adopt a different method of allocating the costs of operating
the district if the governing bodies of three-fourths of the group
of taxing units composed of the municipalities, school districts,
and county participating in the appraisal district <taxing units
that are entitled to vote on the appointment of board members>
adopt resolutions providing for the other method. However, a
change under this subsection is not valid if it requires any taxing
unit to pay a greater proportion of the appraisal district's costs
than the unit would pay under Section 6.06 <of this code> without
the consent of the governing body of that unit.
(c) An official copy of a resolution under this section must
be filed with the county assessor-collector <chief appraiser of the
appraisal district> after April 30 and before May 15 or the
resolution is ineffective.
(d) Before May 20, the county assessor-collector <chief
appraiser> shall determine whether a sufficient number of eligible
taxing units have filed valid resolutions proposing a change in the
allocation of district costs for the change to take effect. Before
May 25, the county assessor-collector <chief appraiser> shall
notify each taxing unit participating in the district of each
change that is adopted.
(e) A change in allocation of district costs made as
provided by this section remains in effect until changed in a
manner provided by this section or rescinded by resolution of a
majority of the governing bodies of the group of taxing units
composed of the municipalities, school districts, and county
participating in the appraisal district <that are entitled to vote
on appointment of board members under Section 6.03 of this code>.
SECTION 2.____. Sections 6.062(a) and (c), Tax Code, are
amended to read as follows:
(a) Not later than the 10th day before the date of the
public hearing at which the county assessor-collector <board of
directors> considers the appraisal district budget, the county
assessor-collector <chief appraiser> shall give notice of the
public hearing by publishing the notice in a newspaper having
general circulation in the county for which the appraisal district
is established. The notice may not be smaller than one-quarter
page of a standard-size or tabloid-size newspaper and may not be
published in the part of the paper in which legal notices and
classified advertisements appear.
(c) The notice must state that the appraisal district is
supported solely by payments from the local taxing units served by
the appraisal district. The notice must also contain the following
statement: "If approved by the appraisal district's county
assessor-collector <district board of directors> at the public
hearing, this proposed budget will take effect automatically unless
disapproved by the governing bodies of the county, school
districts, cities, and towns served by the appraisal district. A
copy of the proposed budget is available for public inspection in
the office of each of those governing bodies."
SECTION 2.____. Section 6.063, Tax Code, is amended to read
as follows:
Sec. 6.063. ]SFINANCIAL AUDIT . (a) At least once each year,
the county assessor-collector who governs <board of directors of>
an appraisal district shall have prepared an audit of its affairs
by an independent certified public accountant or a firm of
independent certified public accountants.
(b) The report of the audit is a public record. A copy of
the report shall be delivered to the county assessor-collector, the
county judge, and the presiding officer of the governing body of
each municipality and school district participating in the
appraisal district <taxing unit eligible to vote on the appointment
of district directors>, and a reasonable number of copies shall be
available for inspection at the appraisal office.
SECTION 2.____. Sections 6.09(b) and (c), Tax Code, are
amended to read as follows:
(b) The county assessor-collector who governs an appraisal
district <board of directors> shall designate as the district
depository the financial institution or institutions that offer the
most favorable terms and conditions for the handling of the
district's funds.
(c) The county assessor-collector <board> shall solicit bids
to be designated as depository for the district at least once in
each two-year period.
SECTION 2.____. Sections 6.11(a) and (b), Tax Code, are
amended to read as follows:
(a) The county assessor-collector who governs <board of
directors of> an appraisal district may not make a contract for the
district requiring an expenditure of more than $15,000 unless the
proposed contract is submitted to competitive bidding.
(b) The county assessor-collector <board of directors> is
subject to the same requirements and has the same powers regarding
the following matters as apply to a commissioners court under the
Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271,
Local Government Code):
(1) notice of the contract;
(2) issuance of the contract to the lowest responsible
bidder;
(3) rejection of bids;
(4) expenditure of funds on the completion and
acceptance of the contract;
(5) exceptions to the competitive bidding requirement;
(6) change orders; and
(7) effect of noncompliance with the competitive
bidding requirements.
SECTION 2.____. Section 6.12(a), Tax Code, is amended to
read as follows:
(a) The county assessor-collector who governs an <chief
appraiser of each> appraisal district shall appoint<, with the
advice and consent of the board of directors,> an agricultural
advisory board composed of three or more members as determined by
the board.
SECTION 2.____. Sections 6.24(a) and (b), Tax Code, are
amended to read as follows:
(a) The governing body of a taxing unit other than a county
may contract as provided by the Interlocal Cooperation Act with the
governing body of another unit <or with the board of directors of
an appraisal district> for the other unit <or the district> to
perform duties relating to the assessment or collection of taxes.
(b) The commissioners court with the approval of the county
assessor-collector may contract as provided by the Interlocal
Cooperation Act with the governing body of another taxing unit in
the county <or with the board of directors of the appraisal
district> for the other unit <or the district> to perform duties
relating to the assessment or collection of taxes for the county.
If a county contracts to have its taxes assessed and collected by
another taxing unit <or by the appraisal district>, the contract
shall require the other unit <or the district> to assess and
collect all taxes the county is required to assess and collect.
SECTION 2.____. Sections 6.41(b), (c), (d), (e), and (f),
Tax Code, are amended to read as follows:
(b) The board consists of three members. However, the
county assessor-collector who governs the appraisal district <board
of directors by resolution of a majority of its members> may
increase the size of the appraisal review board to not more than
nine members or, in a district established for a county with a
population of at least 250,000, to not more than 15 members or, in
a district established for a county with a population of at least
one million, to not more than 30 members or, in a district
established for a county with a population of at least 1,500,000,
to not more than 45 members.
(c) To be eligible to serve on the board, an individual must
be a resident of the district and must have resided in the district
for at least two years. An <A member of the appraisal district
board of directors or an> officer or employee of the comptroller,
the appraisal office, or a taxing unit is ineligible to serve on
the board. In an appraisal district established for a county
having a population of more than 300,000, an individual who has
served for all or part of three previous terms as a board member or
auxiliary board member on the appraisal review board is ineligible
to serve on the appraisal review board. In an appraisal district
established for any other county, an individual who has served for
all or part of three consecutive terms as a board member or
auxiliary board member on the appraisal review board is ineligible
to serve on the appraisal review board during a term that begins on
the next January 1 following the third of those consecutive terms.
(d) Members of the board are appointed by the
assessor-collector of the county for which the appraisal district
is established <resolution of a majority of the appraisal district
board of directors>. A vacancy on the board is filled in the same
manner for the unexpired portion of the term.
(e) Members of the board hold office for terms of two years
beginning January 1. The county assessor-collector <appraisal
district board of directors by resolution> shall provide for
staggered terms, so that the terms of as close to one-half of the
members as possible expire each year. In making the initial
appointments, the county assessor-collector <board of directors>
shall designate those members who serve terms of one year.
(f) A member of the board may be removed from the board by
the county assessor-collector <a majority vote of the appraisal
district board of directors>. Grounds for removal are:
(1) a violation of Section 6.412 or 6.413; or
(2) good cause relating to the attendance of members
at called meetings of the board as established by written policy
adopted by the county assessor-collector <a majority of the
appraisal district board of directors>.
(6) On page 117, between lines 12 and 13, insert the
following:
SECTION 2.____. Subchapter B, Chapter 23, Tax Code, is
amended by adding Section 23.21 to read as follows:
Sec. 23.21. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY.
(a) The appraised value of real property for the first tax year
after the tax year in which the owner acquires the property may not
exceed the market value of the property. Notwithstanding Section
23.01, the appraised value of the property in each subsequent tax
year until the end of the tax year in which the ownership of the
property changes may not exceed the sum of:
(1) the appraised value of the property for the
preceding tax year as adjusted by the chief appraiser for the
current tax year to reflect the change from the preceding tax year
in the purchasing power of the dollar for consumers in this state;
and
(2) the market value of all new improvements to the
property.
(b) For each tax year, using the index that the comptroller
considers to most accurately report changes in the purchasing power
of the dollar for consumers in this state, the comptroller shall
determine and publicize the percentage by which the appraised value
of real property may be increased under Subsection (a)(1). Each
chief appraiser shall use the percentage determined by the
comptroller under this subsection to determine the maximum increase
in the appraised value of real property appraised by that chief
appraiser.
(c) When appraising real property, the chief appraiser
shall:
(1) appraise the property at its market value; and
(2) include in the appraisal records both the market
value of the property and the amount calculated under Subsection
(a).
(d) This section does not apply to property appraised under
Subchapter C, D, E, F, or G.
(e) In Subsection (a), "new improvement" means an
improvement to real property that is made after the appraisal of
the property for the preceding tax year and that increases the
market value of the property. The term does not include ordinary
maintenance of an existing structure or the grounds or another
feature of the property.
(f) For purposes of this section, the owner of real property
on January 1, 1998, is considered to have acquired the property in
the 1997 tax year.
(7) On page 119, between lines 6 and 7, insert the
following:
SECTION 2.____. Section 25.01(b), Tax Code, is amended to
read as follows:
(b) The county assessor-collector who governs the appraisal
district <chief appraiser with the approval of the board of
directors of the district> may contract with a private appraisal
firm to perform appraisal services for the district<, subject to
his approval>. A contract for private appraisal services is void
if the amount of compensation to be paid the private appraisal firm
is contingent on the amount of or increase in appraised, assessed,
or taxable value of property appraised by the appraisal firm.
(8) On page 119, line 8, strike "Subsection (b)" and
substitute "Subsections (b) and (g)".
(9) On page 121, between lines 5 and 6, insert the
following:
(g) The county assessor-collector who governs the appraisal
district <chief appraiser, with the approval of the appraisal
district board of directors,> may dispense with the notice required
by Subdivision (1) of Subsection (a) <of this section> if the
amount of increase in appraised value is $1,000 or less.
(10) On page 138, between lines 16 and 17, insert the
following:
SECTION 2.____. Subchapter C, Chapter 41, Tax Code, is
amended by adding Section 41.414 to read as follows:
Sec. 41.414. PROTEST OF APPRAISED VALUE OF REAL PROPERTY.
In a protest of the appraised value of real property, if the
appraised value for the current year is the value calculated as
provided by Section 23.21(a), the property owner is not entitled to
protest the appraised value for the preceding year that is used in
the calculation of the appraised value for the current year.
SECTION 2.____. Section 42.02, Tax Code, is amended to read
as follows:
Sec. 42.02. RIGHT OF APPEAL BY CHIEF APPRAISER. The chief
appraiser is entitled to appeal an order of the appraisal review
board determining a taxpayer protest as provided by Subchapter C,
Chapter 41 <of this code if he has written approval of the local
appraisal district board of directors to appeal>.
(11) On page 102, line 23, strike "and" and substitute
"<and>".
(12) On page 102, line 26, between "income" and the period,
insert the following:
(9) the amount by which the market value of real
property to which Section 23.21, Tax Code, applies exceeds the
appraised value of that property as calculated under that section
(13) On page 145, between lines 14 and 15, insert the
following:
SECTION 2.____. The following provisions of the Tax Code are
repealed:
(1) Section 6.03;
(2) Section 6.031;
(3) Section 6.033;
(4) Section 6.034;
(5) Section 6.035;
(6) Section 6.036;
(7) Section 6.037;
(8) Section 6.04;
(9) Sections 6.05(c), (d), (f), (g), and (h);
(10) Section 6.052;
(11) Section 6.10; and
(12) Section 31.03(c).
(14) On page 145, between lines 22 and 23, insert the
following:
(__) On the effective date of this Act, the tax
assessor-collector of each county begins to govern the appraisal
district established for that county, and the board of directors of
each appraisal district ceases to exist. On that date, the
appraisal district as governed by the county assessor-collector
succeeds to all the rights, duties, privileges, property,
obligations, and liabilities of the appraisal district as governed
by the board of directors.
(__) A measure taken or adopted by an appraisal district
board of directors before the effective date of this Act that is in
effect on the effective date continues in effect after the
effective date of this Act until superseded by a measure taken or
adopted by the county assessor-collector governing the district.
(__) The amendment by this Act of Section 6.41, Tax Code,
does not affect the term of a member of an appraisal review board
appointed before the effective date of this Act.
(15) Renumber and reletter the sections and subsections of
the bill appropriately.