By Stiles H.B. No. 2201
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the payment of property taxes pending appeal and to
1-3 attorney's fees and penalties in a property tax appeal.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 42.08(b) and (c), Tax Code, are amended
1-6 to read as follows:
1-7 (b) Except as provided in Subsection (d), a property owner
1-8 who appeals as provided by this chapter must pay taxes on the
1-9 property subject to the appeal in the amount required by this
1-10 subsection before the delinquency date or the property owner
1-11 forfeits the right to proceed to a final determination of the
1-12 appeal. The amount of taxes the property owner must pay on the
1-13 property before the delinquency date to comply with this subsection
1-14 is the lesser of:
1-15 (1) the amount of taxes due on the portion of the
1-16 taxable value of the property that is not in dispute [or the amount
1-17 of taxes imposed on the property in the preceding year, whichever
1-18 is greater]; or
1-19 (2) the amount of taxes due on the property under the
1-20 order from which the appeal is taken.
1-21 (c) A property owner that pays an [the] amount of taxes
1-22 greater than that required by Subsection (b) does not forfeit the
1-23 property owner's right to a final determination of the appeal by
1-24 making the payment. If the property owner files a timely appeal
2-1 under this chapter, taxes paid on the property are considered paid
2-2 under protest, even if paid before the appeal is filed.
2-3 SECTION 2. Section 42.29, Tax Code, is amended to read as
2-4 follows:
2-5 Sec. 42.29. ATTORNEY'S FEES. (a) A property owner who
2-6 prevails in an appeal to the court under Section 42.25 or [Section]
2-7 42.26 [of this code] may be awarded reasonable attorney's fees not
2-8 to exceed $100,000 [the greater of $15,000 or 20 percent of the
2-9 total amount by which the property owner's tax liability is reduced
2-10 as a result of the appeal. The award of attorney's fees, however,
2-11 may not exceed the total amount by which the property owner's tax
2-12 liability is reduced as a result of the appeal].
2-13 (b) An appraisal district that prevails in an appeal to the
2-14 court under this chapter may be awarded reasonable attorney's fees
2-15 not to exceed $100,000 if the amount of taxes due on the property
2-16 as determined by the court exceeds by at least $5,000 the amount of
2-17 taxes due on the property as claimed by the property owner.
2-18 SECTION 3. Section 42.42, Tax Code, is amended by amending
2-19 Subsections (b) and (c) and adding Subsection (d) to read as
2-20 follows:
2-21 (b) If the final determination of an appeal that increases a
2-22 property owner's tax liability occurs after the property owner has
2-23 paid his taxes, the assessor for each affected taxing unit shall
2-24 prepare and mail a supplemental tax bill in the manner provided by
2-25 Chapter 31 [of this code] for tax bills generally. The assessor
2-26 shall include with the bill a brief explanation of the reason for
2-27 and effect of the supplemental bill. The additional tax is [taxes]
3-1 due on receipt of the supplemental bill and becomes delinquent if
3-2 not paid before the delinquency date prescribed by Chapter 31 [of
3-3 this code] or before the first day of the next month after the date
3-4 of mailing that will provide at least 21 days for payment of the
3-5 tax, whichever is later.
3-6 (c) If the final determination of an appeal occurs after the
3-7 property owner has paid a portion of the tax finally determined to
3-8 be due as required by Section 42.08 [of this code], the assessor
3-9 for each affected taxing unit shall prepare and mail a supplemental
3-10 tax bill in the form and manner prescribed by Subsection (b) [of
3-11 this section]. The additional tax is due and becomes delinquent as
3-12 provided by Subsection (b), but the property owner is liable for
3-13 penalties and interest on the tax included in the supplemental bill
3-14 calculated as provided by Section 33.01 as if the tax included in
3-15 the supplemental bill became delinquent on the original
3-16 delinquency date prescribed by Chapter 31 [at the rate prescribed
3-17 by this code for delinquent taxes].
3-18 (d) If the property owner did not pay any portion of the
3-19 taxes imposed on the property because the court found that payment
3-20 would constitute an unreasonable restraint on the owner's right of
3-21 access to the courts as provided by Section 42.08(d), after the
3-22 final determination of the appeal the assessor for each affected
3-23 taxing unit shall prepare and mail a supplemental tax bill in the
3-24 form and manner prescribed by Subsection (b). The additional tax
3-25 is due and becomes delinquent as provided by Subsection (b), but
3-26 the property owner is liable for interest on the tax included in
3-27 the supplemental bill calculated as provided by Section 33.01 as if
4-1 the tax included in the supplemental bill became delinquent on the
4-2 delinquency date prescribed by Chapter 31.
4-3 SECTION 4. (a) The changes in law made by Sections 1 and 2
4-4 of this Act apply only to an appeal filed under Chapter 42, Tax
4-5 Code, as amended by this Act, on or after the effective date of
4-6 this Act. An appeal filed under Chapter 42, Tax Code, as amended
4-7 by this Act, before the effective date of this Act is governed by
4-8 the law in effect when the appeal was filed, and that law is
4-9 continued in effect for that purpose.
4-10 (b) Except as provided by Subsection (c) of this section,
4-11 the change in law made by this Act to Section 42.42(c), Tax Code,
4-12 applies only to the accrual of penalties and interest on taxes on
4-13 property subject to an appeal that are paid on or after the
4-14 effective date of this Act or for which the supplemental tax bill
4-15 is mailed under Section 42.42(c), Tax Code, on or after the
4-16 effective date of this Act. For taxes on property subject to an
4-17 appeal for which the original delinquency date prescribed by
4-18 Chapter 31, Tax Code, occurred before the effective date of this
4-19 Act and that are paid on or after the effective date of this Act or
4-20 for which the supplemental tax bill is sent under Section 42.42(c),
4-21 Tax Code, on or after the effective date of this Act, penalties
4-22 imposed as provided by Section 42.42(c), Tax Code, as amended by
4-23 this Act, on the additional tax paid on or after the effective date
4-24 of this Act or included in the supplemental tax bill sent on or
4-25 after that date are calculated as provided by Section 33.01, Tax
4-26 Code, as if the delinquency date for those taxes is the first day
4-27 of the first calendar month that begins on or after the 21st day
5-1 after the effective date of this Act.
5-2 (c) The accrual of penalties and interest on taxes for which
5-3 a supplemental tax bill is sent as provided by Section 42.42(c),
5-4 Tax Code, before the effective date of this Act are governed by
5-5 Section 42.42(c), Tax Code, as that section existed when the
5-6 supplemental tax bill was mailed, and that law is continued in
5-7 effect for that purpose.
5-8 (d) Section 42.42(d), Tax Code, as added by this Act,
5-9 applies only to the accrual of interest on unpaid taxes covered by
5-10 that subsection on or after the effective date of this Act. The
5-11 accrual of penalties and interest on those taxes before the
5-12 effective date of this Act is governed by the applicable law in
5-13 effect before the effective date of this Act.
5-14 SECTION 5. The importance of this legislation and the
5-15 crowded condition of the calendars in both houses create an
5-16 emergency and an imperative public necessity that the
5-17 constitutional rule requiring bills to be read on three several
5-18 days in each house be suspended, and this rule is hereby suspended,
5-19 and that this Act take effect and be in force from and after its
5-20 passage, and it is so enacted.