By Alexander H.B. No. 1361
75R2592 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to administrative and judicial review of property tax
1-3 determinations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 6.41(b)-(f), Tax Code, are amended to
1-6 read as follows:
1-7 (b) The board consists of three members. However, a
1-8 majority of the district judges having jurisdiction in the county
1-9 for which the appraisal district is established [board of directors
1-10 by resolution of a majority of its members] may increase the size
1-11 of the appraisal review board to not more than nine members or, in
1-12 a district established for a county with a population of at least
1-13 250,000, to not more than 15 members or, in a district established
1-14 for a county with a population of at least one million, to not more
1-15 than 30 members or, in a district established for a county with a
1-16 population of at least 1,500,000, to not more than 45 members.
1-17 (c) To be eligible to serve on the board, an individual must
1-18 be a resident of the district and must have resided in the district
1-19 for at least two years. A member of the appraisal district board
1-20 of directors, [or] an officer or employee of the comptroller or [,]
1-21 the appraisal office, or a current or former officer or employee of
1-22 a taxing unit is ineligible to serve on the board. In an appraisal
1-23 district established for a county having a population of more than
1-24 300,000, an individual who has served for all or part of three
2-1 previous terms as a board member or auxiliary board member on the
2-2 appraisal review board is ineligible to serve on the appraisal
2-3 review board. In an appraisal district established for any other
2-4 county, an individual who has served for all or part of three
2-5 consecutive terms as a board member or auxiliary board member on
2-6 the appraisal review board is ineligible to serve on the appraisal
2-7 review board during a term that begins on the next January 1
2-8 following the third of those consecutive terms.
2-9 (d) Members of the board are appointed by [resolution of] a
2-10 majority of the district judges having jurisdiction in the county
2-11 for which the appraisal district is established [board of
2-12 directors]. A vacancy on the board is filled in the same manner
2-13 for the unexpired portion of the term.
2-14 (e) Members of the board hold office for terms of two years
2-15 beginning January 1. A majority of the district judges having
2-16 jurisdiction in the county for which the [The] appraisal district
2-17 is established [board of directors by resolution] shall provide for
2-18 staggered terms, so that the terms of as close to one-half of the
2-19 members as possible expire each year. In making the initial
2-20 appointments, the district judges [board of directors] shall
2-21 designate those members who serve terms of one year.
2-22 (f) A member of the board may be removed from the board by a
2-23 majority [vote] of the district judges having jurisdiction in the
2-24 county for which the appraisal district is established [board of
2-25 directors]. Grounds for removal are:
2-26 (1) a violation of Section 6.412 or 6.413; or
2-27 (2) good cause relating to the attendance of members
3-1 at called meetings of the board as established by written policy
3-2 adopted by a majority of the appraisal district board of directors.
3-3 SECTION 2. Section 6.411, Tax Code, is amended to read as
3-4 follows:
3-5 Sec. 6.411. AUXILIARY [BOARD] MEMBERS IN CERTAIN COUNTIES.
3-6 (a) A majority of the district judges having jurisdiction in the
3-7 county for which [The board of directors of] an appraisal district
3-8 is established may appoint auxiliary members to [the appraisal
3-9 review board to] hear taxpayer protests before the appraisal review
3-10 board and to assist the board in performing its other duties.
3-11 (b) The number of auxiliary members that may be appointed
3-12 is:
3-13 (1) for a county with a population of 1,000,000 or
3-14 more, not more than 30 auxiliary members;
3-15 (2) for a county with a population of at least 500,000
3-16 but less than 1,000,000, not more than 20 auxiliary members;
3-17 (3) for a county with a population of at least 250,000
3-18 but less than 500,000, not more than 10 auxiliary members; and
3-19 (4) for a county with a population of less than
3-20 250,000, not more than 6 auxiliary members.
3-21 (c) Sections 6.41(c), (d), and (e) and Sections 6.412 and
3-22 6.413 apply to auxiliary [board] members [appointed under this
3-23 section].
3-24 (d) An auxiliary member [of the appraisal review board
3-25 appointed under this section] may not vote in a determination made
3-26 by the board, may not serve as chairman or secretary of the board,
3-27 and is not included in determining what constitutes a quorum of the
4-1 board or whether a quorum is present at any meeting of the board.
4-2 (e) An auxiliary member [of the appraisal review board
4-3 appointed under this section] is entitled to make a recommendation
4-4 to the board in a protest heard by the member but is not entitled
4-5 to vote on the determination of the protest by the board.
4-6 (f) An auxiliary member [of the appraisal review board
4-7 appointed under this section] is entitled to the per diem set by
4-8 the appraisal district budget for each day on which the member
4-9 actively engages in performing the member's duties under Subsection
4-10 (a) or (e) and is entitled to actual and necessary expenses
4-11 incurred in performing those duties in the same manner as [other]
4-12 members of the appraisal review board.
4-13 SECTION 3. The heading to Chapter 41, Tax Code, is amended
4-14 to read as follows:
4-15 CHAPTER 41. ADMINISTRATIVE [LOCAL] REVIEW
4-16 SECTION 4. Section 41.43, Tax Code, is amended to read as
4-17 follows:
4-18 Sec. 41.43. PROTEST OF DETERMINATION OF VALUE OR INEQUALITY
4-19 OF APPRAISAL. (a) In a protest authorized by Section 41.41(1) or
4-20 (2), the appraisal district has the burden of establishing the
4-21 value of the property.
4-22 (b) A protest on the ground of unequal appraisal of property
4-23 shall be determined in favor of the protesting party unless [if]
4-24 the appraisal district [protesting party] establishes that the
4-25 appraisal ratio of the property is not greater than the median
4-26 level of appraisal of:
4-27 (1) a reasonable and representative sample of other
5-1 properties in the appraisal district; or
5-2 (2) a sample of properties in the appraisal district
5-3 consisting of a reasonable number of other properties similarly
5-4 situated to, or of the same general kind or character as, the
5-5 property subject to the protest.
5-6 SECTION 5. Subchapter D, Chapter 41, Tax Code, is amended by
5-7 adding Section 41.71 to read as follows:
5-8 Sec. 41.71. LOCATION AND TIME OF HEARINGS. (a) An
5-9 appraisal review board may not conduct a hearing under Subchapter A
5-10 or C in a building in which an office of the appraisal district is
5-11 located.
5-12 (b) An appraisal review board shall regularly schedule
5-13 hearings in the evening.
5-14 SECTION 6. Chapter 41, Tax Code, is amended by adding
5-15 Subchapter E to read as follows:
5-16 SUBCHAPTER E. DETERMINATION OF PROTEST BY STATE OFFICE
5-17 OF ADMINISTRATIVE HEARINGS
5-18 Sec. 41.91. DEFINITION. In this subchapter, "office" means
5-19 the State Office of Administrative Hearings.
5-20 Sec. 41.92. RULES. The office shall adopt rules of practice
5-21 and procedure for protest proceedings under this subchapter.
5-22 Sec. 41.93. ELECTION OF REMEDIES. (a) A property owner is
5-23 entitled to have the office conduct a hearing and determine a
5-24 protest if the property owner:
5-25 (1) files a notice of protest with the appraisal
5-26 review board under Section 41.44;
5-27 (2) is entitled to a hearing and determination of a
6-1 protest under that section;
6-2 (3) requests in the notice of protest that the office
6-3 conduct the hearing and determine the protest; and
6-4 (4) pays a filing fee of $100 with the notice of
6-5 protest.
6-6 (b) A property owner who submits a request under this
6-7 section waives the right to a hearing and determination of the
6-8 protest by the appraisal review board.
6-9 Sec. 41.94. FORWARDING OF NOTICE OF PROTEST AND FILING FEE
6-10 TO OFFICE. On receipt of a notice under Section 41.93 and the
6-11 required filing fee, the appraisal review board shall forward the
6-12 notice and the filing fee to the office.
6-13 Sec. 41.95. CONTESTED CASE. Except as otherwise provided by
6-14 this subchapter, the provisions of Chapter 2001, Government Code,
6-15 applicable to a contested case apply to the determination of a
6-16 protest under this subchapter.
6-17 Sec. 41.96. BURDEN OF PROOF. Section 41.43 applies to the
6-18 determination of a protest under this subchapter.
6-19 Sec. 41.97. HEARING ON AND DETERMINATION OF PROTEST. The
6-20 administrative law judge to whom the protest is assigned shall
6-21 conduct a hearing on the protest and issue a proposal for decision
6-22 determining the protest. The proposal is binding on the parties
6-23 and the appraisal review board.
6-24 Sec. 41.98. NOTIFICATION OF DETERMINATION; CORRECTION OF
6-25 APPRAISAL RECORDS. (a) The office shall notify the property
6-26 owner, chief appraiser, and appraisal review board of the proposal
6-27 for decision.
7-1 (b) The appraisal review board by written order shall
7-2 determine the protest in accordance with the proposal for decision
7-3 and shall correct the appraisal records as necessary to conform to
7-4 the order.
7-5 Sec. 41.99. ATTORNEY'S FEES AND COSTS. (a) The appraisal
7-6 district shall reimburse the office for the office's costs of
7-7 conducting hearings under this subchapter.
7-8 (b) If a protest is authorized by Section 41.41(1) or (2)
7-9 and the administrative law judge determines that the appraised
7-10 value of the property that is the subject of the protest is less
7-11 than the appraised value of the property as determined by the chief
7-12 appraiser, the property owner is entitled to recover from the
7-13 appraisal district the owner's reasonable attorney's fees and costs
7-14 multiplied by a fraction the numerator of which is the difference
7-15 between the appraised value as determined by the chief appraiser
7-16 and the appraised value as determined by the administrative law
7-17 judge and the denominator of which is the difference between the
7-18 appraised value as determined by the chief appraiser and the
7-19 appraised value as claimed by the owner.
7-20 Sec. 41.100. SANCTIONS. The administrative law judge may
7-21 impose sanctions against a party or its representative as provided
7-22 by Sections 2003.047(i) and (j), Government Code, as added by
7-23 Chapter 765, Acts of the 74th Legislature, 1995.
7-24 Sec. 41.101. APPEAL. An order of the appraisal review board
7-25 determining a protest under this subchapter is considered to have
7-26 been issued under Subchapter C for purposes of appeal under Chapter
7-27 42, except that judicial review of the protest is under the
8-1 substantial evidence rule.
8-2 SECTION 7. Section 42.23, Tax Code, is amended by adding
8-3 Subsection (d) to read as follows:
8-4 (d) The burden of proof is on the appraisal district in an
8-5 appeal under Section 42.01(1) or 42.02.
8-6 SECTION 8. (a) The changes in law made by Sections 4-6 of
8-7 this Act apply only to a protest of a property appraisal the notice
8-8 of which is filed on or after the effective date of this Act. A
8-9 protest of a property appraisal the notice of which is filed before
8-10 the effective date of this Act is covered by the law in effect when
8-11 the notice of protest was filed, and the former law is continued in
8-12 effect for that purpose.
8-13 (b) The change in law made by Section 7 of this Act applies
8-14 only to an appeal from an order of an appraisal review board in
8-15 which the petition for review is filed on or after the effective
8-16 date of this Act. An appeal from an order of an appraisal review
8-17 board in which the petition for review was filed before the
8-18 effective date of this Act is covered by the law in effect when the
8-19 petition for review was filed, and the former law is continued in
8-20 effect for that purpose.
8-21 SECTION 9. (a) This Act takes effect January 1, 1998.
8-22 (b) As soon as practicable on or after the effective date of
8-23 this Act, the district judges having jurisdiction in the county for
8-24 which an appraisal district is established shall appoint the
8-25 members of the appraisal review board for the district. In making
8-26 the initial appointments, the district judges shall designate those
8-27 members who serve terms of one year.
9-1 (c) The term of an appraisal review board member serving on
9-2 December 31, 1997, expires on January 1, 1998.
9-3 (d) Auxiliary members may be appointed under Section 6.411,
9-4 Tax Code, as amended by this Act, by the district judges having
9-5 jurisdiction in the county for which an appraisal district is
9-6 established on or after January 1, 1998.
9-7 (e) The term of an auxiliary member serving on December 31,
9-8 1997, expires on January 1, 1998.
9-9 SECTION 10. The importance of this legislation and the
9-10 crowded condition of the calendars in both houses create an
9-11 emergency and an imperative public necessity that the
9-12 constitutional rule requiring bills to be read on three several
9-13 days in each house be suspended, and this rule is hereby suspended.