By Heflin H.B. No. 3308
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appraisal of property for tax purposes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1.07, Tax Code, is amended by adding a
1-5 new Subsection (d) to read as follows:
1-6 (d) A notice required by Sec. 11.45, 23.44(d), 23.57(d),
1-7 23.79(d), 23.85, or 23.95(e) shall be delivered by certified mail.
1-8 SECTION 2. Subchapter C, Chapter 6, Tax Code, is amended by
1-9 adding Section 6.414 to read as follows:
1-10 Sec. 6.414. TRAINING. (a) The Comptroller shall establish
1-11 minimum standards for training all members of appraisal review
1-12 boards.
1-13 (b) A person appointed as a member of an appraisal review
1-14 board is required to attend and receive certification of
1-15 participation in a training program approved by the Comptroller in
1-16 accordance with rules adopted by the Comptroller as a prerequisite
1-17 to participation in hearings.
1-18 SECTION 3. Subchapter C, Tax Code, is amended by adding
1-19 Section 6.415 to read as follows:
1-20 Sec. 6.415. ELIGIBILITY OF FORMER OFFICERS AND DIRECTORS OF
1-21 TAX ENTITIES IN COUNTIES OF MORE THAN 50,000 POPULATION. Any
1-22 person who has been an elected or appointed officer, director,
2-1 employee in a tax collection office, or employee in a budgetary or
2-2 fiscal planning office of a taxing unit or an appraisal district in
2-3 a county of more than 50,000 population is not eligible to serve on
2-4 an appraisal review board that reviews appraisals of property
2-5 within such taxing entity or appraisal district.
2-6 SECTION 4. Subsection (h), Section 11.251, Tax Code, is
2-7 amended to read as follows:
2-8 (h) The chief appraiser by written notice delivered to a
2-9 property owner who claims an exemption under this section may
2-10 require the property owner to provide copies of inventory or
2-11 property records in order to determine the amount and value of
2-12 freeport goods. If the property owner fails to deliver the
2-13 information requested in the notice before approval of the
2-14 appraisal records by the appraisal review board [the 31st day after
2-15 the date the notice is delivered to the property owner], the
2-16 property owner forfeits the right to claim or receive the exemption
2-17 for that year.
2-18 SECTION 5. Chapter 11, Tax Code, is amended by adding a new
2-19 Section 11.437 to read as follows:
2-20 Sec. 11.437. LATE APPLICATION FOR FREEPORT EXEMPTION. (a)
2-21 The chief appraiser shall accept and approve or deny an application
2-22 for exemption under Section 11.251 of this Code after the deadline
2-23 for filing it has passed if it is filed before approval of the
2-24 appraisal records by the appraisal review board.
2-25 (b) If an exemption under Section 11.251 of this Code is
2-26 approved when the application is filed late, the owner is liable
2-27 for a penalty of 10 percent of the difference between the amount of
3-1 tax imposed on the property and the amount that would be imposed if
3-2 the property were taxed at market value.
3-3 (c) The chief appraiser shall make an entry on the appraisal
3-4 records indicating the person's liability for the penalty and shall
3-5 deliver written notice of imposition of the penalty, explaining the
3-6 reason for its imposition, to the person.
3-7 (d) The tax assessor for a taxing unit that taxes property
3-8 subject to exemption under Section 11.251 of this Code after a late
3-9 application shall add the amount of the penalty to the owner's tax
3-10 bill, and the tax collector for the unit shall collect the penalty
3-11 at the time and in the manner he collects the tax. The amount of
3-12 the penalty constitutes a lien against the property against which
3-13 the penalty is imposed, as if it were a tax, and accrues penalty
3-14 and interest in the same manner as a delinquent tax.
3-15 SECTION 6. Subsection (a), Section 22.23, Tax Code, is
3-16 amended to read as follows:
3-17 (a) Rendition statements and property reports must be
3-18 delivered to the chief appraiser after January 1 and not later than
3-19 [before] April 15, except as provided by Section 22.02 of this
3-20 code.
3-21 SECTION 7. Subsection (f), Section 23.55, Tax Code, is
3-22 amended to read as follows:
3-23 (f) The sanctions provided by Subsection (a) of this section
3-24 do not apply if the change of use occurs as a result of the
3-25 transfer by sale, gift, or otherwise, [a sale] for right-of-way or
3-26 other public purpose, or a condemnation.
3-27 SECTION 8. Subsection (c), Section 33.01, Tax Code, is
4-1 amended to read as follows:
4-2 (c) A delinquent tax accrues interest at a rate of one
4-3 percent for each month or portion of a month the tax remains
4-4 unpaid. Interest payable under this section is to compensate the
4-5 taxing unit for revenue lost because of the delinquency. A
4-6 delinquent tax continues to accrue lost because of the delinquency.
4-7 A delinquent tax continues to accrue interest under this subsection
4-8 as long as the tax remains unpaid, regardless of whether a
4-9 judgement for the delinquent tax has been rendered.
4-10 SECTION 9. Section 33.41, Tax Code, is amended by adding a
4-11 new Subsection (d) to read as follows:
4-12 (d) A suit brought under Subsection (a) against the personal
4-13 representative of an estate who is acting under the control and
4-14 supervision of a probate court need not be filed in that probate
4-15 court, but may instead be brought in a court of competent
4-16 jurisdiction of the county in which the tax was imposed. All
4-17 provisions relative to the presentment of a claim against an estate
4-18 as a prerequisite for judgement shall not be construed as to apply
4-19 to any claim for delinquent taxes owing to a taxing unit.
4-20 SECTION 10. Subsection (c), Section 33.47, Tax Code, is
4-21 amended to read as follows:
4-22 (c) In a suit to collect a tax, a tax receipt issued under
4-23 Section 31.075 of this code, or an electronic replica of the
4-24 receipt, that states that a tax has been paid is [constitutes]
4-25 prima facie evidence that the tax has been paid as stated by the
4-26 receipt or electronic replica.
4-27 SECTION 11. Section 33.51, Tax Code, is amended to read as
5-1 follows:
5-2 Sec. 33.51. Writ of Possession. If the court orders the
5-3 foreclosure of a tax lien and the sale of real property, the
5-4 judgement shall provide for the issuance by the clerk of said court
5-5 of a writ of possession to the purchaser at the sale or to the
5-6 purchaser's [his] assigns no sooner than 20 days following the date
5-7 on which the purchaser's deed from the sheriff or constable is
5-8 filed of record [within 20 days after the period of redemption
5-9 expires].
5-10 SECTION 12. Subsections (a) and (b) of Section 33.52, Tax
5-11 Code, are amended, and Subsection (c) of Section 33.52 is added, to
5-12 read as follows:
5-13 Sec. 33.52. Judgement for Current Taxes. (a) If the court
5-14 orders the foreclosure of a tax lien and the sale of real property
5-15 the judgement shall, on motion of the taxing unit, order that the
5-16 taxing unit recover from the proceed of the sale the amount of tax
5-17 on the property for the current tax year [prorated to the date of
5-18 the judgement].
5-19 (b) If the amount of tax for the current tax year has not
5-20 been determined on the date of judgement the court shall, on motion
5-21 of the taxing unit, order recovery of the amount of tax imposed on
5-22 the property for the preceding tax year[, prorated to the date of
5-23 judgement].
5-24 (c) If the judgement does not provide for recovery of taxes
5-25 imposed for the current tax year, or for recovery of estimated
5-26 taxes that cannot then be calculated for the current year, the real
5-27 property is subject to the taxes for the current tax year and to
6-1 the lien that secures those taxes, and any subsequent purchaser
6-2 takes the property subject to those taxes and the tax lien.
6-3 SECTION 13. Subsection (a) of Section 34.05, Tax Code, is
6-4 amended to read as follows:
6-5 (a) If property is sold to a taxing unit that is a party to
6-6 the judgement the taxing unit may sell the property at any time
6-7 subject to any right of redemption existing at the time of the
6-8 sale. In selling the property, the taxing unit may, but is not
6-9 required to, use the procedures provided by Section 272.001, Local
6-10 Government Code.
6-11 SECTION 14. Section 34.21, Tax Code, is amended to read as
6-12 follows:
6-13 Sec. 34.21. Right of Redemption. (a) The owner of real
6-14 property sold at a tax sale to a purchaser other than a taxing unit
6-15 and that was the residence homestead of the owner or that was land
6-16 designated for agricultural use when the suit to collect the tax
6-17 was filed may redeem the property within two years after the date
6-18 on which the purchaser's deed is filed for record by paying the
6-19 purchaser the amount the purchaser bid for the property, the amount
6-20 of the deed recording fee, and the amount paid by the purchaser as
6-21 taxes, penalties, interest, and costs on the property, plus a
6-22 redemption premium of 25 percent of the aggregate total if the
6-23 property is redeemed during the first year of the redemption period
6-24 or 50 percent of the aggregate total if the property is redeemed
6-25 during the second year of the redemption period.
6-26 (b) If property that was the owner's residence homestead or
6-27 was land designated for agricultural use when the suit to collect
7-1 the tax was filed is bid off to a taxing unit under Section
7-2 34.01(c) and has not been resold by the taxing unit, the owner
7-3 having a right of redemption may redeem the property within two
7-4 years after the date on which the deed or the taxing unit is filed
7-5 for record by paying the taxing unit the amount of the judgement
7-6 against the property or the market value of the property as
7-7 specified in that judgement, whichever is less, plus the amount of
7-8 the fee for filing the taxing unit's deed and the amount expended
7-9 by the taxing unit as costs on the property.
7-10 (c) If real property that was the owner's residence
7-11 homestead or was land designated for agricultural use when the suit
7-12 to collect the tax was filed has been resold by the taxing unit
7-13 under Section 34.05, the owner of the property having a right of
7-14 redemption may redeem the property within two years after the date
7-15 on which the taxing unit files for record the deed from the sheriff
7-16 or constable by paying the person who purchased the property from
7-17 the taxing unit the amount the purchaser paid for the property, the
7-18 amount of fee for filing the purchaser's deed for record, the
7-19 amount paid by the purchaser as taxes, penalties, interest and
7-20 costs on the property, plus a redemption premium of 25 percent of
7-21 the aggregate total if the property is redeemed in the first year
7-22 of the redemption period or 50 percent of the aggregate total if
7-23 the property is redeemed in the second year of the redemption
7-24 period.
7-25 (d) [(b)] The owner of real property sold at a tax sale
7-26 other than property [covered by Subsection (a)] that was the
7-27 residence homestead of the owner or that was land designated for
8-1 agricultural use when the suit to collect the tax was filed may
8-2 redeem the property [within] in the same manner and by paying the
8-3 same amounts as prescribed by Subsection (a), (b), or (c), as
8-4 applicable, except that:
8-5 (1) the owner's right of redemption expires after six
8-6 months [after] following the date on which the purchaser's or
8-7 taxing unit's deed is filed for record [by paying the purchaser the
8-8 amount the purchaser bid for the property, the amount of the deed
8-9 recording fee, and the amount paid by the purchaser as taxes,
8-10 penalties, interest, and costs on the property, plus 25 percent of
8-11 the aggregate total.], and
8-12 (2) the redemption premium payable by the owner to a
8-13 purchaser other than a taxing unit shall not exceed 25 percent.
8-14 (e) [(c)] If the owner of the real property makes an
8-15 affidavit that the owner [he] has made diligent search in the
8-16 county on which the property is located for the purchaser at the
8-17 tax sale or for the purchaser at resale, and has failed to find
8-18 that purchaser [him], that the purchaser [at the sale] is not a
8-19 resident of the county in which the property is located, that the
8-20 owner [he] and the purchaser cannot agree on the amount of
8-21 redemption money due, or that the purchaser refuses to give the
8-22 owner [him] a quitclaim deed to the property, the owner may redeem
8-23 the property [land] by paying the required amount as prescribed by
8-24 this section [Subsection (a) or (b), as applicable,] to the
8-25 assessor-collector for the county in which the property is located.
8-26 The assessor-collector receiving the payment shall give the owner a
8-27 signed receipt witnessed by two persons. The receipt, when
9-1 recorded, is notice to all persons that the property described has
9-2 been redeemed. The assessor-collector shall on demand pay the
9-3 money received by the assessor-collector [him] to the purchaser [at
9-4 the tax sale].
9-5 (f) [(d)] The right of redemption does not grant or reserve
9-6 in the former owner of the real property the right to the use or
9-7 possession of the property, or to receive rents, income or other
9-8 benefits from the property while the right of redemption exists.
9-9 (g) [(e)] In this section, "residence homestead" has the
9-10 meaning assigned by Section 11.13.
9-11 (h) [(f)] In this section, "agricultural use" has the
9-12 meaning assigned by Section 23.51.
9-13 (i) In this section, "costs" is defined to include all those
9-14 amounts reasonably expended by a purchaser or taxing unit in the
9-15 maintenance, preservation, and safekeeping of the property,
9-16 included but not limited to:
9-17 (1) insurance against fire, flood. and other hazards,
9-18 (2) repairs and improvements required by local
9-19 ordinance, building code, or by the terms of any existing lease of
9-20 the property, whether written or oral,
9-21 (3) discharge of mowing, cleaning, or demolition liens
9-22 against the property which secure expenses incurred by a
9-23 municipality,
9-24 (4) dues, assessments for maintenance, or liens
9-25 provided by recorded restrictive covenants affecting the property
9-26 and payable to a property owners' association, and
9-27 (5) standby fees payable to a water district, fresh
10-1 water supply district, or other municipality as authorized by law.
10-2 SECTION 15. Section 34.23, Tax Code, is amended to read as
10-3 follows:
10-4 Sec. 34.23. Distribution of Redemption Proceeds. [(a)] If
10-5 the owner of property sold for taxes to a taxing unit redeems the
10-6 property before the property is resold, the taxing unit shall
10-7 distribute the redemption proceeds in the manner that proceeds of
10-8 the resale of property are distributed.
10-9 [(b) If the owner of the property sold for taxes redeems
10-10 from the taxing unit after the property has been resold, the taxing
10-11 unit shall pay the purchaser at the resale the amount he paid for
10-12 the property, plus 25 percent of that amount if the redemption
10-13 occurs within one year of the date the property is resold or 50
10-14 percent of that amount if the redemption occurs more than one year
10-15 after the date the property is resold. The taxing unit shall
10-16 distribute the redemption proceeds remaining after payment of the
10-17 amount due the purchaser at resale to the taxing units adjudged to
10-18 have tax liens against the property in the proportion the amount of
10-19 each unit's lien bears to the total amount of all liens established
10-20 in the foreclosure suit.]
10-21 SECTION 16. Section 41.01, Tax Code, is amended to read as
10-22 follows:
10-23 Sec. 41.01. Duties of Appraisal Review Board. (a) The
10-24 appraisal review board shall have the authority to:
10-25 (1) determine protests initiated by property owners;
10-26 (2) determine challenges initiated by taxing units;
10-27 (3) correct clerical errors in the appraisal records
11-1 and the appraisal rolls;
11-2 (4) act on motions to correct appraisal rolls under
11-3 Section 25.25;
11-4 (5) determine whether an exemption or a partial
11-5 exemption is improperly granted and whether land is improperly
11-6 granted appraisal as provided by Subchapter C, D, or E, Chapter 23;
11-7 and
11-8 (6) take any other action or make any other
11-9 recommendation that this title specifically authorizes or requires.
11-10 (b) the appraisal review board may not engage in any
11-11 activity or make any determination not specifically authorized by
11-12 this Code. No other authority is granted or implied.
11-13 SECTION 17. Section 41.44, Tax Code, is amended by adding a
11-14 new Subsection (e) to read as follows:
11-15 (e) The appraisal review board shall accept and consider a
11-16 protest filed by an agent of a property owner if an agency
11-17 authorization is filed at or before the hearing on the protest.
11-18 SECTION 18. Section 41.45, Tax Code, is amended by amending
11-19 Subsections (b), (d), and (e), and adding a new Subsection (g) to
11-20 read as follows:
11-21 (b) The property owner initiating the protest is entitled to
11-22 an opportunity to appear to offer evidence or argument. The
11-23 property owner may offer his evidence or argument by affidavit
11-24 without personally appearing if he attests to the affidavit before
11-25 an officer authorized to administer oaths and submits the affidavit
11-26 to the board hearing the protest before it begins the hearing on
11-27 the protest. On receipt of an affidavit, the board shall notify
12-1 the chief appraiser. The chief appraiser may inspect the affidavit
12-2 and is entitled to a copy on request. An affidavit shall identify
12-3 the protesting property owner, the property that is the subject of
12-4 the protest, and a statement by the owner on a determination of the
12-5 appraisal district relevant to the property that is the subject of
12-6 the protest. The comptroller shall prescribe a standard form for
12-7 an affidavit that requires the property owner to provide this
12-8 information. Appraisal districts shall make copies of the form
12-9 available to property owners.
12-10 (d) An appraisal review board consisting of more than three
12-11 members may sit in panels of not fewer than three members to
12-12 conduct protest hearings. However, the determination of a protest
12-13 heard by a panel must be made by the board. If the determination
12-14 of a panel is not accepted by the board, the board may refer the
12-15 matter for rehearing to a panel composed of members who did not
12-16 hear the original hearing or, if there are not at least three
12-17 members who did not hear the original protest, the board may
12-18 determine the protest. Before determining a protest or conducting
12-19 a rehearing before a new panel, the board shall deliver notice of
12-20 the hearing or meeting to determine the protest in accordance with
12-21 the provisions of this subchapter.
12-22 (e) The board shall postpone the hearing to a later date if:
12-23 (1) the property owner or the owner's agent shows good
12-24 cause for the postponement;
12-25 (2) the property owner or the owner's agent provides a
12-26 copy of a notice for a hearing addressed to the property owner or
12-27 to the individual representing the property owner set by another
13-1 appraisal district for the same date and bearing a postmark earlier
13-2 than the date on which the appraisal review board delivered its
13-3 notice of the hearing, or
13-4 (3) [if] the chief appraiser consents to the
13-5 postponement. The hearing may not be postponed to a date less than
13-6 five or more than 15 days after the date scheduled for the original
13-7 hearing unless the date and time of the hearing as postponed are
13-8 agreed to by the appraisal review board, the property owner, and
13-9 the chief appraiser. Postponement under this subsection does not
13-10 require the delivery of additional written notice to the property
13-11 owner.
13-12 (g) Prior to or immediately upon opening a hearing on a
13-13 protest, the chief appraiser and the property owner or the owner's
13-14 agent shall exchange copies of all written materials that will be
13-15 provided to the appraisal review board during the hearing.
13-16 SECTION 19. Chapter 41, Tax Code, is amended by adding a new
13-17 Section 41.48 to read as follows:
13-18 Sec. 41.48. SETTLEMENT AGREEMENTS. The chief appraiser
13-19 shall change the appraisal records or the appraisal roll to reflect
13-20 any agreement between the property owner or the owner's agent and
13-21 the chief appraiser that is final pursuant to Section 1.111(e) of
13-22 this Code. A property owner or the owner's agent may file suit in
13-23 a court having jurisdiction to compel the chief appraiser to comply
13-24 with this section.
13-25 SECTION 20. Subsection (c), Section 41.61, Tax Code, is
13-26 amended to read as follows:
13-27 (c) An appraisal review board may not issue a subpoena under
14-1 this section unless the board holds a hearing at which the board
14-2 determines that good cause exists for the issuance of the subpoena.
14-3 The appraisal review board before which a good cause hearing is
14-4 scheduled shall deliver written notice to the party being
14-5 subpoenaed and parties to the protest of the date, time, and place
14-6 of the hearing. The board shall deliver the notice not later than
14-7 the 5th day before the date of the good cause hearing. The party
14-8 being subpoenaed must have an opportunity to be heard at the good
14-9 cause hearing.
14-10 SECTION 21. Subsection (b), Section 42.06, Tax Code, is
14-11 repealed and Subsections (c), (d), and (e) of Section 42.06 are
14-12 amended to read as follows:
14-13 (b) [(c)] A party other than a chief appraiser or property
14-14 owner who appeals an order of an appraisal review board shall file
14-15 the notice with the chief appraiser of the appraisal district for
14-16 which the appraisal review board is established. A chief appraiser
14-17 who appeals an order of an appraisal review board shall file the
14-18 notice with the appraisal review board. A party who appeals an
14-19 order of the comptroller shall file the notice with the
14-20 comptroller.
14-21 (c) [(d)] If the chief appraiser, a taxing unit, or a county
14-22 appeals, the chief appraiser, if the appeal is of an order of the
14-23 appraisal review board, or the comptroller, if the appeal is of an
14-24 order of the comptroller, shall deliver a copy of the notice to the
14-25 property owner whose property is involved in the appeal within 10
14-26 days after the date the notice is filed.
14-27 (d) [(e)] On the filing of a notice of appeal, the chief
15-1 appraiser shall indicate where appropriate those entries on the
15-2 appraisal records that are subject to appeal.
15-3 SECTION 22. Subsection (b), Section 42.43, Tax Code, is
15-4 amended to read as follows:
15-5 (b) For a refund made under this section because an
15-6 exemption under Section 11.20 that was denied by the chief
15-7 appraiser or appraisal review board is granted, the taxing unit
15-8 shall include with the refund interest on the amount refunded
15-9 calculated at an annual rate that is equal to the auction average
15-10 rate quoted on a bank discount basis for three-month treasury bills
15-11 issued by the United States government, as published by the Federal
15-12 Reserve Board, for the week in which the taxes became delinquent,
15-13 but not more than 10 percent, calculated from the delinquency date
15-14 for the taxes until the date the refund is made. For any other
15-15 refund made under this section, the taxing unit shall include with
15-16 the refund interest on the amount refunded at an annual rate of
15-17 [that is equal to the auction average rate quoted on a bank
15-18 discount basis for three-month treasury bills issued by the United
15-19 States government, as published by the Federal Reserve Board, for
15-20 the week in which the taxes became delinquent, but not more than]
15-21 eight percent, calculated from the delinquency date for the taxes
15-22 until the date the refund is made.
15-23 SECTION 23. Section 6.035, Tax Code, is amended by adding
15-24 Subsection (e) to read as follows:
15-25 represent a property owner before the appraisal review board for
15-26 the county in which that individual served as chief appraiser in a
15-27 protest or other proceeding related to an appraisal record or
16-1 appraisal roll created during that individual's service as chief
16-2 appraiser.
16-3 SECTION 24. The provisions of Section 2 and Section 3 apply
16-4 to an appraisal review board member whose term begins on or after
16-5 January 1, 1998.
16-6 SECTION 25. The importance of this legislation and the
16-7 crowded condition of the calendars in both houses create an
16-8 emergency and an imperative public necessity that the
16-9 constitutional rule requiring bills to be read on three several
16-10 days in each house be suspended, and this rule is hereby suspended.