75R9641 SMH-D
By Stiles, Price H.B. No. 2201
Substitute the following for H.B. No. 2201:
By Craddick C.S.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 $5,000 [the greater of $15,000 or 20 percent of the total
2-9 amount by which the property owner's tax liability is reduced as a
2-10 result of the appeal. The award of attorney's fees, however, may
2-11 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 $5,000 if the amount of taxes due on the property as
2-16 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. Subchapter B, Chapter 42, Tax Code, is amended by
2-19 adding Section 42.30 to read as follows:
2-20 Sec. 42.30. PENALTY FOR APPEAL BROUGHT IN BAD FAITH.
2-21 (a) If the court finds that a property owner brought an appeal
2-22 under this chapter in bad faith, the court may impose a penalty on
2-23 behalf of each taxing unit that taxes the property not to exceed
2-24 five percent of the amount of taxes due to each taxing unit on the
2-25 property as determined by the court.
2-26 (b) The penalty is in addition to other penalties imposed
2-27 under this title. The assessor for each taxing unit shall add the
3-1 amount of the penalty to the unit's tax bill for taxes on the
3-2 property against which the penalty is imposed or include the
3-3 penalty on a supplemental tax bill if necessary. The penalty is
3-4 due on the first day of the next month after the date the bill
3-5 including the penalty is mailed that provides the property owner at
3-6 least 21 days to pay the penalty after the date the bill is mailed.
3-7 The penalty constitutes a lien on the property for which the appeal
3-8 was brought.
3-9 SECTION 4. Section 42.42, Tax Code, is amended by amending
3-10 Subsections (b) and (c) and adding Subsection (d) to read as
3-11 follows:
3-12 (b) If the final determination of an appeal that increases a
3-13 property owner's tax liability occurs after the property owner has
3-14 paid his taxes, the assessor for each affected taxing unit shall
3-15 prepare and mail a supplemental tax bill in the manner provided by
3-16 Chapter 31 [of this code] for tax bills generally. The assessor
3-17 shall include with the bill a brief explanation of the reason for
3-18 and effect of the supplemental bill. The additional tax is [taxes]
3-19 due on receipt of the supplemental bill and becomes delinquent if
3-20 not paid before the delinquency date prescribed by Chapter 31 [of
3-21 this code] or before the first day of the next month after the date
3-22 of mailing that will provide at least 21 days for payment of the
3-23 tax, whichever is later.
3-24 (c) If the final determination of an appeal occurs after the
3-25 property owner has paid a portion of the tax finally determined to
3-26 be due as required by Section 42.08 [of this code], the assessor
3-27 for each affected taxing unit shall prepare and mail a supplemental
4-1 tax bill in the form and manner prescribed by Subsection (b) [of
4-2 this section]. The additional tax is due and becomes delinquent as
4-3 provided by Subsection (b), but the property owner is liable for
4-4 penalties and interest on the tax included in the supplemental bill
4-5 calculated as provided by Section 33.01 as if the tax included in
4-6 the supplemental bill became delinquent on the delinquency date
4-7 prescribed by Chapter 31 [at the rate prescribed by this code for
4-8 delinquent taxes].
4-9 (d) If the property owner did not pay any portion of the
4-10 taxes imposed on the property because the court found that payment
4-11 would constitute an unreasonable restraint on the owner's right of
4-12 access to the courts as provided by Section 42.08(d), after the
4-13 final determination of the appeal the assessor for each affected
4-14 taxing unit shall prepare and mail a supplemental tax bill in the
4-15 form and manner prescribed by Subsection (b). The additional tax
4-16 is due and becomes delinquent as provided by Subsection (b), but
4-17 the property owner is liable for interest on the tax included in
4-18 the supplemental bill calculated as provided by Section 33.01 as if
4-19 the tax included in the supplemental bill became delinquent on the
4-20 delinquency date prescribed by Chapter 31.
4-21 SECTION 5. (a) The changes in law made by Sections 1-3 of
4-22 this Act apply only to an appeal filed under Chapter 42, Tax Code,
4-23 as amended by this Act, on or after the effective date of this Act.
4-24 An appeal filed under Chapter 42, Tax Code, as amended by this Act,
4-25 before the effective date of this Act is governed by the law in
4-26 effect when the appeal was filed, and that law is continued in
4-27 effect for that purpose.
5-1 (b) The change in law made by Section 4 of this Act applies
5-2 only to the accrual on or after the effective date of this Act of
5-3 penalties and interest on ad valorem taxes. The accrual before the
5-4 effective date of this Act of penalties and interest on ad valorem
5-5 taxes is governed by the law in effect when the penalties and
5-6 interest accrued, and that law is continued in effect for that
5-7 purpose.
5-8 SECTION 6. The importance of this legislation and the
5-9 crowded condition of the calendars in both houses create an
5-10 emergency and an imperative public necessity that the
5-11 constitutional rule requiring bills to be read on three several
5-12 days in each house be suspended, and this rule is hereby suspended,
5-13 and that this Act take effect and be in force from and after its
5-14 passage, and it is so enacted.