AN ACT
1-1 relating to ad valorem taxation.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 1.07, Tax Code, is amended by amending
1-4 Subsection (a) and adding Subsection (d) to read as follows:
1-5 (a) An official or agency required by this title to deliver
1-6 a notice to a property owner may deliver the notice by regular
1-7 first-class mail, with postage prepaid, unless this section or
1-8 another provision of this title requires a different method of
1-9 delivery.
1-10 (d) A notice required by Section 11.45(d), 23.44(d),
1-11 23.57(d), 23.79(d), or 23.85(d) must be sent by certified mail.
1-12 SECTION 2. Subsections (a), (b), (c), and (l), Section 6.03,
1-13 Tax Code, are amended to read as follows:
1-14 (a) The appraisal district is governed by a board of [five]
1-15 directors. Five directors are appointed by the taxing units that
1-16 participate in the district as provided by this section. If the
1-17 county assessor-collector is not appointed to the board, the county
1-18 assessor-collector serves as a nonvoting director. The county
1-19 assessor-collector is ineligible to serve if the board enters into
1-20 a contract under Section 6.05(b) or if the commissioners court of
1-21 the county enters into a contract under Section 6.24(b). To be
1-22 eligible to serve on the board of directors, an individual other
1-23 than a county assessor-collector serving as a nonvoting director
2-1 must be a resident of the district and must have resided in the
2-2 district for at least two years immediately preceding the date the
2-3 individual takes office. An individual who is otherwise eligible
2-4 to serve on the board is not ineligible because of membership on
2-5 the governing body of a taxing unit. To be eligible to serve on
2-6 the board of an appraisal district established for a county having
2-7 a population of at least 200,000 bordering a county having a
2-8 population of at least 2,000,000 and the Gulf of Mexico, an
2-9 individual other than a county assessor-collector serving as a
2-10 nonvoting director must be a member of the governing body or an
2-11 elected officer of a taxing unit entitled to vote on the
2-12 appointment of board members under this section. However, an
2-13 employee of a taxing unit that participates in the district is not
2-14 eligible to serve on the board unless the individual is also a
2-15 member of the governing body or an elected official of a taxing
2-16 unit that participates in the district.
2-17 (b) Members of the board of directors other than a county
2-18 assessor-collector serving as a nonvoting director serve two-year
2-19 terms beginning on January 1 of even-numbered years.
2-20 (c) Members of the board of directors other than a county
2-21 assessor-collector serving as a nonvoting director are appointed by
2-22 vote of the governing bodies of the incorporated cities and towns,
2-23 the school districts, and, if entitled to vote, the conservation
2-24 and reclamation districts that participate in the district and of
2-25 the county. A governing body may cast all its votes for one
3-1 candidate or distribute them among candidates for any number of
3-2 directorships. Conservation and reclamation districts are not
3-3 entitled to vote unless at least one conservation and reclamation
3-4 district in the district delivers to the chief appraiser a written
3-5 request to nominate and vote on the board of directors by June 1 of
3-6 each odd-numbered year. On receipt of a request, the chief
3-7 appraiser shall certify a list by June 15 of all eligible
3-8 conservation and reclamation districts that are imposing taxes and
3-9 that participate in the district.
3-10 (l) If a vacancy occurs on the board of directors other than
3-11 a vacancy in the position held by a county assessor-collector
3-12 serving as a nonvoting director, each taxing unit that is entitled
3-13 to vote by this section may nominate by resolution adopted by its
3-14 governing body a candidate to fill the vacancy. The unit shall
3-15 submit the name of its nominee to the chief appraiser within 10
3-16 days after notification from the board of directors of the
3-17 existence of the vacancy, and the chief appraiser shall prepare and
3-18 deliver to the board of directors within the next five days a list
3-19 of the nominees. The board of directors shall elect by majority
3-20 vote of its members one of the nominees to fill the vacancy.
3-21 SECTION 3. Subsection (a), Section 6.034, Tax Code, is
3-22 amended to read as follows:
3-23 (a) The taxing units participating in an appraisal district
3-24 may provide that the terms of the appointed members of the board of
3-25 directors be staggered if the governing bodies of at least
4-1 three-fourths of the taxing units that are entitled to vote on the
4-2 appointment of board members adopt resolutions providing for the
4-3 staggered terms. A change to staggered terms may be adopted only
4-4 if the method or procedure for appointing board members is changed
4-5 under Section 6.031 of this code to eliminate or have the effect of
4-6 eliminating cumulative voting for board members as provided by
4-7 Section 6.03 of this code. A change to staggered terms may be
4-8 proposed concurrently with a change that eliminates or has the
4-9 effect of eliminating cumulative voting.
4-10 SECTION 4. Subsection (c), Section 6.41, Tax Code, is
4-11 amended to read as follows:
4-12 (c) To be eligible to serve on the board, an individual must
4-13 be a resident of the district and must have resided in the district
4-14 for at least two years. A member of the appraisal district board
4-15 of directors or an officer or employee of the comptroller, the
4-16 appraisal office, or a taxing unit is ineligible to serve on the
4-17 board. In an appraisal district established for a county having a
4-18 population of more than 300,000, an individual who has served for
4-19 all or part of three previous terms as a board member or auxiliary
4-20 board member on the appraisal review board, is a former member of
4-21 the governing body or an officer or employee of a taxing unit, or
4-22 is a former director, officer, or employee of the appraisal
4-23 district is ineligible to serve on the appraisal review board. In
4-24 an appraisal district established for any other county, an
4-25 individual who has served for all or part of three consecutive
5-1 terms as a board member or auxiliary board member on the appraisal
5-2 review board is ineligible to serve on the appraisal review board
5-3 during a term that begins on the next January 1 following the third
5-4 of those consecutive terms.
5-5 SECTION 5. Section 6.411, Tax Code, is amended to read as
5-6 follows:
5-7 Sec. 6.411. AUXILIARY [BOARD] MEMBERS IN CERTAIN COUNTIES.
5-8 (a) The board of directors of an appraisal district may appoint
5-9 auxiliary members to [the appraisal review board to] hear taxpayer
5-10 protests before the appraisal review board and to assist the board
5-11 in performing its other duties.
5-12 (b) The number of auxiliary members that may be appointed
5-13 is:
5-14 (1) for a county with a population of 1,000,000 or
5-15 more, not more than 66 [30] auxiliary members;
5-16 (2) for a county with a population of at least 500,000
5-17 but less than 1,000,000, not more than 45 [20] auxiliary members;
5-18 (3) for a county with a population of at least 250,000
5-19 but less than 500,000, not more than 25 [10] auxiliary members; and
5-20 (4) for a county with a population of less than
5-21 250,000, not more than 10 [6] auxiliary members.
5-22 (c) Sections 6.41(c), (d), and (e) and Sections 6.412 and
5-23 6.413 apply to auxiliary [board] members [appointed under this
5-24 section].
5-25 (d) An auxiliary member [of the appraisal review board
6-1 appointed under this section] may not vote in a determination made
6-2 by the board, may not serve as chairman or secretary of the board,
6-3 and is not included in determining what constitutes a quorum of the
6-4 board or whether a quorum is present at any meeting of the board.
6-5 (e) An auxiliary member [of the appraisal review board
6-6 appointed under this section] is entitled to make a recommendation
6-7 to the board in a protest heard by the member but is not entitled
6-8 to vote on the determination of the protest by the board.
6-9 (f) An auxiliary member [of the appraisal review board
6-10 appointed under this section] is entitled to the per diem set by
6-11 the appraisal district budget for each day on which the member
6-12 actively engages in performing the member's duties under Subsection
6-13 (a) or (e) and is entitled to actual and necessary expenses
6-14 incurred in performing those duties in the same manner as [other]
6-15 members of the appraisal review board.
6-16 SECTION 6. Subsections (h) and (q), Section 11.13, Tax Code,
6-17 are amended to read as follows:
6-18 (h) Joint or community owners may not each receive the same
6-19 exemption provided by or pursuant to this section for the same
6-20 residence homestead in the same year. An eligible disabled person
6-21 who is 65 or older may not receive both a disabled and an elderly
6-22 residence homestead exemption but may choose either. A person may
6-23 not receive an exemption under this section for more than one
6-24 residence homestead in the same year.
6-25 (q) The surviving spouse of an individual who qualifies for
7-1 [received] an exemption under Subsection (d) for the residence
7-2 homestead of a person 65 or older is entitled to an exemption for
7-3 the same property from the same taxing unit in an amount equal to
7-4 that of the exemption for which [received by] the deceased spouse
7-5 qualified if:
7-6 (1) the deceased spouse died in a year in which the
7-7 deceased spouse qualified for [received] the exemption;
7-8 (2) the surviving spouse was 55 or older when the
7-9 deceased spouse died; and
7-10 (3) the property was the residence homestead of the
7-11 surviving spouse when the deceased spouse died and remains the
7-12 residence homestead of the surviving spouse.
7-13 SECTION 7. Subsection (f), Section 11.18, Tax Code, is
7-14 amended to read as follows:
7-15 (f) A charitable organization must:
7-16 (1) use its assets in performing the organization's
7-17 charitable functions or the charitable functions of another
7-18 charitable organization; and
7-19 (2) [,] by charter, bylaw, or other regulation adopted
7-20 by the organization to govern its affairs[:]
7-21 [(1) pledge its assets for use in performing the
7-22 organization's charitable functions; and]
7-23 [(2)] direct that on discontinuance of the
7-24 organization by dissolution or otherwise:
7-25 (A) the assets are to be transferred to this
8-1 state, the United States, or [to] an educational, religious,
8-2 charitable, or other similar organization that is qualified as a
8-3 charitable organization under Section 501(c)(3), Internal Revenue
8-4 Code of 1986, as amended; or
8-5 (B) if required for the organization to qualify
8-6 as a tax-exempt organization under Section 501(c)(12), Internal
8-7 Revenue Code of 1986, as amended, the assets are to be transferred
8-8 directly to the organization's members, each of whom, by
8-9 application for an acceptance of membership in the organization,
8-10 has agreed to immediately transfer those assets to this state or to
8-11 an educational, religious, charitable, or other similar
8-12 organization that is qualified as a charitable organization under
8-13 Section 501(c)(3), Internal Revenue Code of 1986, as amended, as
8-14 designated in the bylaws, charter, or regulation adopted by the
8-15 organization.
8-16 SECTION 8. Subsection (d), Section 11.19, Tax Code, is
8-17 amended to read as follows:
8-18 (d) To qualify as a youth development association for the
8-19 purposes of this section, an association must:
8-20 (1) be organized and operated [engage] primarily for
8-21 the purpose of [in] promoting the threefold spiritual, mental, and
8-22 physical development of boys, girls, young men, or young women;
8-23 (2) be operated in a way that does not result in
8-24 accrual of distributable profits, realization of private gain
8-25 resulting from payment of compensation in excess of a reasonable
9-1 allowance for salary or other compensation for services rendered,
9-2 or realization of any other form of private gain;
9-3 (3) operate in conjunction with a state or national
9-4 organization that is organized and operated for the same purpose as
9-5 the association; [and]
9-6 (4) use its assets in performing the association's
9-7 youth development functions or the youth development functions of
9-8 another youth development association; and
9-9 (5) by charter, bylaw, or other regulation adopted by
9-10 the association to govern its affairs[:]
9-11 [(A) pledge its assets for use in performing the
9-12 association's youth development functions; and]
9-13 [(B)] direct that on discontinuance of the
9-14 association by dissolution or otherwise the assets are to be
9-15 transferred to this state, the United States, or [to] a charitable,
9-16 educational, religious, or other similar organization that is
9-17 qualified as a charitable organization under Section 501(c)(3),
9-18 Internal Revenue Code of 1954, as amended.
9-19 SECTION 9. Subsection (c), Section 11.20, Tax Code, is
9-20 amended to read as follows:
9-21 (c) To qualify as a religious organization for the purposes
9-22 of this section, an organization (whether operated by an
9-23 individual, as a corporation, or as an association) must:
9-24 (1) be organized and operated primarily for the
9-25 purpose of engaging in religious worship or promoting the spiritual
10-1 development or well-being of individuals;
10-2 (2) be operated in a way that does not result in
10-3 accrual of distributable profits, realization of private gain
10-4 resulting from payment of compensation in excess of a reasonable
10-5 allowance for salary or other compensation for services rendered,
10-6 or realization of any other form of private gain; [and]
10-7 (3) use its assets in performing the organization's
10-8 religious functions or the religious functions of another religious
10-9 organization; and
10-10 (4) by charter, bylaw, or other regulation adopted by
10-11 the organization to govern its affairs[:]
10-12 [(A) pledge its assets for use in performing the
10-13 organization's religious functions; and]
10-14 [(B)] direct that on discontinuance of the
10-15 organization by dissolution or otherwise the assets are to be
10-16 transferred to this state, the United States, or [to] a charitable,
10-17 educational, religious, or other similar organization that is
10-18 qualified as a charitable organization under Section 501(c)(3),
10-19 Internal Revenue Code of 1954, as amended.
10-20 SECTION 10. Subsection (d), Section 11.21, Tax Code, is
10-21 amended to read as follows:
10-22 (d) To qualify as a school for the purposes of this section,
10-23 an organization (whether operated by an individual, as a
10-24 corporation, or as an association) must:
10-25 (1) be organized and operated primarily for the
11-1 purpose of engaging in educational functions;
11-2 (2) normally maintain a regular faculty and curriculum
11-3 and normally have a regularly organized body of students in
11-4 attendance at the place where its educational functions are carried
11-5 on;
11-6 (3) [(2)] be operated in a way that does not result in
11-7 accrual of distributable profits, realization of private gain
11-8 resulting from payment of compensation in excess of a reasonable
11-9 allowance for salary or other compensation for services rendered,
11-10 or realization of any other form of private gain and, if the
11-11 organization is a corporation, be organized as a nonprofit
11-12 corporation as defined by the Texas Non-Profit Corporation Act;
11-13 [and]
11-14 (4) use its assets in performing the organization's
11-15 educational functions or the educational functions of another
11-16 educational organization; and
11-17 (5) [(3)] by charter, bylaw, or other regulation
11-18 adopted by the organization to govern its affairs[:]
11-19 [(A) pledge its assets for use in performing the
11-20 organization's educational functions; and]
11-21 [(B)] direct that on discontinuance of the
11-22 organization by dissolution or otherwise the assets are to be
11-23 transferred to this state, the United States, or [to] an
11-24 educational, charitable, religious, or other similar organization
11-25 that is qualified as a charitable organization under Section
12-1 501(c)(3), Internal Revenue Code of 1954, as amended.
12-2 SECTION 11. If the constitutional amendment proposed by
12-3 H.J.R. No. 4, Acts of the 75th Legislature, Regular Session, 1997,
12-4 is approved by the voters, Section 11.26, Tax Code, is amended by
12-5 amending Subsection (a) and adding Subsections (i), (j), and (k) to
12-6 read as follows:
12-7 (a) The tax officials shall appraise the property to which
12-8 this section applies and calculate taxes as on other property, but
12-9 if the tax so calculated exceeds the limitation imposed by this
12-10 section, the tax imposed is the amount of the tax as limited by
12-11 this section, except [Except] as otherwise provided by this
12-12 section. A [Subsection (b) of this section, a] school district may
12-13 not increase the total annual amount of ad valorem tax it imposes
12-14 on the residence homestead of an individual 65 years or older above
12-15 the amount of the tax it imposed in the first tax year the
12-16 individual qualified that residence homestead for the exemption
12-17 provided by [Subsection (c) of] Section 11.13(c) [11.13 of this
12-18 code]. If the individual qualified that residence homestead for
12-19 the exemption after the beginning of that first year, the maximum
12-20 amount of taxes that a school district may impose on that residence
12-21 homestead in a subsequent year is determined as provided by Section
12-22 26.112 as if the individual qualified that residence homestead for
12-23 the exemption for that entire first year, except as provided by
12-24 Subsection (b). If the individual qualified that residence
12-25 homestead for the exemption after the beginning of that first year
13-1 and the residence homestead remains eligible for the exemption for
13-2 the next year and if the school district taxes imposed on the
13-3 residence homestead in the next year are less than the amount of
13-4 taxes imposed in that first year, a school district may not
13-5 subsequently increase the total annual amount of ad valorem taxes
13-6 it imposes on the residence homestead above the amount it imposed
13-7 in the year immediately following the first year for which the
13-8 individual qualified that residence homestead for the exemption,
13-9 except as provided by Subsection (b). If the first tax year the
13-10 individual qualified the residence homestead for the exemption
13-11 provided by Section 11.13(c) was a tax year before the 1997 tax
13-12 year, the amount of the limitation provided by this section is the
13-13 amount of tax the school district imposed for the 1996 tax year
13-14 less an amount equal to the amount determined by multiplying
13-15 $10,000 times the tax rate of the school district for the 1997 tax
13-16 year, plus any 1997 tax attributable to improvements made in 1996,
13-17 other than improvements made to comply with governmental
13-18 regulations or repairs [The tax officials shall continue to
13-19 appraise the property and to calculate taxes as on other property,
13-20 but if the tax so calculated exceeds the limitation imposed by this
13-21 section, the tax imposed is the tax imposed in the first year the
13-22 individual qualified the residence homestead for the exemption].
13-23 (i) If an individual who qualifies for the exemption
13-24 provided by Section 11.13(c) for an individual 65 years of age or
13-25 older dies, the surviving spouse of the individual is entitled to
14-1 the limitation applicable to the residence homestead of the
14-2 individual if:
14-3 (1) the surviving spouse is 55 years of age or older
14-4 when the individual dies; and
14-5 (2) the residence homestead of the individual:
14-6 (A) is the residence homestead of the surviving
14-7 spouse on the date that the individual dies; and
14-8 (B) remains the residence homestead of the
14-9 surviving spouse.
14-10 (j) If an individual who qualifies for an exemption provided
14-11 by Section 11.13(c) for an individual 65 years of age or older dies
14-12 in the first year in which the individual qualified for the
14-13 exemption and the individual first qualified for the exemption
14-14 after the beginning of that year, except as provided by Subsection
14-15 (k), the amount to which the surviving spouse's school district
14-16 taxes are limited under Subsection (i) is the amount of school
14-17 district taxes imposed on the residence homestead in that year
14-18 calculated under Section 26.112 as if the individual qualifying for
14-19 the exemption had lived for the entire year.
14-20 (k) If in the first tax year after the year in which an
14-21 individual dies in the circumstances described by Subsection (j)
14-22 the amount of school district taxes imposed on the residence
14-23 homestead of the surviving spouse is less than the amount of school
14-24 district taxes imposed in the preceding year as limited by
14-25 Subsection (j), in a subsequent tax year the surviving spouse's
15-1 school district taxes on that residence homestead are limited to
15-2 the amount of taxes imposed by the district in that first tax year
15-3 after the year in which the individual dies.
15-4 SECTION 12. If the constitutional amendment proposed by
15-5 H.J.R. No. 4, Acts of the 75th Legislature, Regular Session, 1997,
15-6 is not approved by the voters and the constitutional amendment
15-7 proposed by S.J.R. No. 43, Acts of the 75th Legislature, Regular
15-8 Session, 1997, is approved by the voters, Section 11.26, Tax Code,
15-9 is amended by amending Subsections (a) and (b) and adding
15-10 Subsections (g), (h), (i), (j), and (k) to read as follows:
15-11 (a) Except as provided by Subsection (b) [of this section],
15-12 a school district may not increase the total annual amount of ad
15-13 valorem tax it imposes on the residence homestead of an individual
15-14 65 years or older above the amount of the tax it imposed in the
15-15 first year the individual qualified that residence homestead for
15-16 the exemption provided by [Subsection (c) of] Section 11.13(c) for
15-17 an individual 65 years of age or older [11.13 of this code]. If
15-18 the individual qualified that residence homestead for the exemption
15-19 after the beginning of that first year, the maximum amount of taxes
15-20 that a school district may impose on that residence homestead in a
15-21 subsequent year is determined as provided by Section 26.112 as if
15-22 the individual qualified that residence homestead for the exemption
15-23 for that entire first year, except as provided by Subsection (b).
15-24 If the individual qualified that residence homestead for the
15-25 exemption after the beginning of that first year and the residence
16-1 homestead remains eligible for the exemption for the next year and
16-2 if the school district taxes imposed on the residence homestead in
16-3 the next year are less than the amount of taxes imposed in that
16-4 first year, a school district may not subsequently increase the
16-5 total annual amount of ad valorem taxes it imposes on the residence
16-6 homestead above the amount it imposed in the year immediately
16-7 following the first year for which the individual qualified that
16-8 residence homestead for the exemption, except as provided by
16-9 Subsection (b). The tax officials shall continue to appraise the
16-10 property and to calculate taxes as on other property, but if the
16-11 tax so calculated exceeds the limitation imposed by this section,
16-12 the tax imposed is the tax imposed in the first year the individual
16-13 qualified the residence homestead for the exemption.
16-14 (b) If an individual makes improvements to the individual's
16-15 [his] residence homestead, other than improvements required to
16-16 comply with governmental requirements or repairs, the school
16-17 district may increase the tax on the homestead in the first year
16-18 the value of the homestead is increased on the appraisal roll
16-19 because of the enhancement of value by the improvements. The
16-20 amount of the tax increase is determined by applying the current
16-21 tax rate to the difference in the assessed value of the homestead
16-22 with the improvements and the assessed value it would have had
16-23 without the improvements. A limitation [The limitations] imposed
16-24 by [Subsection (a) of] this section then applies [apply] to the
16-25 increased amount of tax until more improvements, if any, are made.
17-1 (g) Except as provided by Subsection (b), if an individual
17-2 who receives a limitation on tax increases imposed by this section
17-3 subsequently qualifies a different residence homestead for an
17-4 exemption under Section 11.13, a school district may not impose ad
17-5 valorem taxes on the subsequently qualified homestead in a year in
17-6 an amount that exceeds the amount of taxes the school district
17-7 would have imposed on the subsequently qualified homestead in the
17-8 first year in which the individual receives that exemption for the
17-9 subsequently qualified homestead had the limitation on tax
17-10 increases imposed by this section not been in effect, multiplied by
17-11 a fraction the numerator of which is the total amount of school
17-12 district taxes imposed on the former homestead in the last year in
17-13 which the individual received that exemption for the former
17-14 homestead and the denominator of which is the total amount of
17-15 school district taxes that would have been imposed on the former
17-16 homestead in the last year in which the individual received that
17-17 exemption for the former homestead had the limitation on tax
17-18 increases imposed by this section not been in effect.
17-19 (h) An individual who receives a limitation on tax increases
17-20 under this section and who subsequently qualifies a different
17-21 residence homestead for an exemption under Section 11.13, or an
17-22 agent of the individual, is entitled to receive from the chief
17-23 appraiser of the appraisal district in which the former homestead
17-24 was located a written certificate providing the information
17-25 necessary to determine whether the individual may qualify for a
18-1 limitation on the subsequently qualified homestead under Subsection
18-2 (g) and to calculate the amount of taxes the school district may
18-3 impose on the subsequently qualified homestead.
18-4 (i) If an individual who qualifies for the exemption
18-5 provided by Section 11.13(c) for an individual 65 years of age or
18-6 older dies, the surviving spouse of the individual is entitled to
18-7 the limitation applicable to the residence homestead of the
18-8 individual if:
18-9 (1) the surviving spouse is 55 years of age or older
18-10 when the individual dies; and
18-11 (2) the residence homestead of the individual:
18-12 (A) is the residence homestead of the surviving
18-13 spouse on the date that the individual dies; and
18-14 (B) remains the residence homestead of the
18-15 surviving spouse.
18-16 (j) If an individual who qualifies for an exemption provided
18-17 by Section 11.13(c) for an individual 65 years of age or older dies
18-18 in the first year in which the individual qualified for the
18-19 exemption and the individual first qualified for the exemption
18-20 after the beginning of that year, except as provided by Subsection
18-21 (k), the amount to which the surviving spouse's school district
18-22 taxes are limited under Subsection (i) is the amount of school
18-23 district taxes imposed on the residence homestead in that year
18-24 calculated under Section 26.112 as if the individual qualifying for
18-25 the exemption had lived for the entire year.
19-1 (k) If in the first tax year after the year in which an
19-2 individual dies in the circumstances described by Subsection (j)
19-3 the amount of school district taxes imposed on the residence
19-4 homestead of the surviving spouse is less than the amount of school
19-5 district taxes imposed in the preceding year as limited by
19-6 Subsection (j), in a subsequent tax year the surviving spouse's
19-7 school district taxes on that residence homestead are limited to
19-8 the amount of taxes imposed by the district in that first tax year
19-9 after the year in which the individual dies.
19-10 SECTION 13. If neither the constitutional amendment proposed
19-11 by H.J.R. No. 4, Acts of the 75th Legislature, Regular Session,
19-12 1997, nor the constitutional amendment proposed by S.J.R. No. 43,
19-13 Acts of the 75th Legislature, Regular Session, 1997, is approved by
19-14 the voters, Section 11.26, Tax Code, is amended by amending
19-15 Subsection (a) and adding Subsections (g), (h), and (i) to read as
19-16 follows:
19-17 (a) Except as provided by Subsection (b) [of this section],
19-18 a school district may not increase the total annual amount of ad
19-19 valorem tax it imposes on the residence homestead of an individual
19-20 65 years or older above the amount of the tax it imposed in the
19-21 first year the individual qualified that residence homestead for
19-22 the exemption provided by [Subsection (c) of] Section 11.13(c) for
19-23 an individual 65 years of age or older [11.13 of this code]. If
19-24 the individual qualified that residence homestead for the exemption
19-25 after the beginning of that first year, the maximum amount of taxes
20-1 that a school district may impose on that residence homestead in a
20-2 subsequent year is determined as provided by Section 26.112 as if
20-3 the individual qualified that residence homestead for the exemption
20-4 for that entire first year, except as provided by Subsection (b).
20-5 If the individual qualified that residence homestead for the
20-6 exemption after the beginning of that first year and the residence
20-7 homestead remains eligible for the exemption for the next year and
20-8 if the school district taxes imposed on the residence homestead in
20-9 the next year are less than the amount of taxes imposed in that
20-10 first year, a school district may not subsequently increase the
20-11 total annual amount of ad valorem taxes it imposes on the residence
20-12 homestead above the amount it imposed in the year immediately
20-13 following the first year for which the individual qualified that
20-14 residence homestead for the exemption, except as provided by
20-15 Subsection (b). The tax officials shall continue to appraise the
20-16 property and to calculate taxes as on other property, but if the
20-17 tax so calculated exceeds the limitation imposed by this section,
20-18 the tax imposed is the tax imposed in the first year the individual
20-19 qualified the residence homestead for the exemption.
20-20 (g) If an individual who qualifies for the exemption
20-21 provided by Section 11.13(c) for an individual 65 years of age or
20-22 older dies, the surviving spouse of the individual is entitled to
20-23 the limitation applicable to the residence homestead of the
20-24 individual if:
20-25 (1) the surviving spouse is 55 years of age or older
21-1 when the individual dies; and
21-2 (2) the residence homestead of the individual:
21-3 (A) is the residence homestead of the surviving
21-4 spouse on the date that the individual dies; and
21-5 (B) remains the residence homestead of the
21-6 surviving spouse.
21-7 (h) If an individual who qualifies for an exemption provided
21-8 by Section 11.13(c) for an individual 65 years of age or older dies
21-9 in the first year in which the individual qualified for the
21-10 exemption and the individual first qualified for the exemption
21-11 after the beginning of that year, except as provided by Subsection
21-12 (i), the amount to which the surviving spouse's school district
21-13 taxes are limited under Subsection (g) is the amount of school
21-14 district taxes imposed on the residence homestead in that year
21-15 calculated under Section 26.112 as if the individual qualifying for
21-16 the exemption had lived for the entire year.
21-17 (i) If in the first tax year after the year in which an
21-18 individual dies in the circumstances described by Subsection (h)
21-19 the amount of school district taxes imposed on the residence
21-20 homestead of the surviving spouse is less than the amount of school
21-21 district taxes imposed in the preceding year as limited by
21-22 Subsection (h), in a subsequent tax year the surviving spouse's
21-23 school district taxes on that residence homestead are limited to
21-24 the amount of taxes imposed by the district in that first tax year
21-25 after the year in which the individual dies.
22-1 SECTION 14. If the constitutional amendment proposed by
22-2 S.J.R. No. 43, Acts of the 75th Legislature, Regular Session, 1997,
22-3 is approved by the voters, Section 11.26, Tax Code, is amended on
22-4 the effective date of the constitutional amendment by adding
22-5 Subsection (l) to read as follows:
22-6 (l) For purposes of the limitation on tax increases provided
22-7 by Subsection (g) as added by this Act or by H.B. No. 4, Acts of
22-8 the 75th Legislature, Regular Session, 1997, as applicable, the
22-9 governing body of a school district in a county with a population
22-10 of fewer than 75,000 in a manner provided by law for official
22-11 action by the governing body may elect to apply the limitation
22-12 provided by Subsection (g) to the residence homestead of an
22-13 individual as if that subsection were in effect on January 1, 1993.
22-14 The governing body must make the election before January 1, 1999.
22-15 The election applies only to taxes imposed in a tax year that
22-16 begins after the tax year in which the election is made.
22-17 SECTION 15. Section 11.41, Tax Code, is amended to read as
22-18 follows:
22-19 Sec. 11.41. Partial Ownership of Exempt Property. (a) If
22-20 [Except as provided by Subsection (b) of this section, if] a person
22-21 who qualifies for an exemption as provided by this chapter is not
22-22 the sole owner of the property to which the exemption applies, the
22-23 exemption shall be multiplied by a fraction, the numerator of which
22-24 is [limited to] the value of the property interest the person owns
22-25 and the denominator of which is the value of the property.
23-1 (b) [If a person who qualifies for an exemption as provided
23-2 by Section 11.13 or 11.22 of this code is not the sole owner of the
23-3 property to which the exemption applies, the amount of the
23-4 exemption is calculated on the basis of the value of the property
23-5 interest the person owns.]
23-6 [(c)] In the application of this section, community
23-7 ownership by a person who qualifies for the exemption and the
23-8 person's [his] spouse is treated as if the person owns the
23-9 community interest of the person's [his] spouse.
23-10 SECTION 16. Section 11.42, Tax Code, is amended by amending
23-11 Subsection (b) and adding Subsection (c) to read as follows:
23-12 (b) An exemption authorized by Section 11.11 or by Section
23-13 11.13(c) or (d) for an individual 65 years of age or older [of this
23-14 code] is effective immediately on qualification for the exemption.
23-15 (c) A person who acquires property after January 1 of a tax
23-16 year may receive an exemption authorized by Section 11.17, 11.18,
23-17 11.19, 11.20, 11.21, 11.23, or 11.30 for the applicable portion of
23-18 that tax year immediately on qualification for the exemption.
23-19 SECTION 17. Sections 11.421 and 11.422, Tax Code, are
23-20 amended to read as follows:
23-21 Sec. 11.421. Qualification of Religious Organization.
23-22 (a) If the chief appraiser denies a timely filed application for
23-23 an exemption under Section 11.20 [of this code] for an organization
23-24 that otherwise qualified for the exemption on January 1 of the year
23-25 but that did not satisfy the requirements of Subsection (c)(4)
24-1 [(c)(3)] of that section on that date, the organization is eligible
24-2 for the exemption for the tax year if the organization:
24-3 (1) satisfies the requirements of Section 11.20(c)(4)
24-4 [11.20(c)(3) of this code] before the later of [the following
24-5 dates]:
24-6 (A) June 1 of the year to which the exemption
24-7 applies; or
24-8 (B) the 60th [30th] day after the date the chief
24-9 appraiser notifies the organization of its failure to comply with
24-10 those requirements; and
24-11 (2) within the time provided by Subdivision (1) [of
24-12 this subsection] files with the chief appraiser a new completed
24-13 application for the exemption together with an affidavit stating
24-14 that the organization has complied with the requirements of Section
24-15 11.20(c)(4) [11.20(c)(3) of this code].
24-16 (b) If the chief appraiser cancels an exemption for a
24-17 religious organization under Section 11.20 [of this code] that was
24-18 erroneously allowed in a tax year because he determines that the
24-19 organization did not satisfy the requirements of Section
24-20 11.20(c)(4) [11.20(c)(3)] on January 1 of that year, the
24-21 organization is eligible for the exemption for that tax year if the
24-22 organization:
24-23 (1) was otherwise qualified for the exemption;
24-24 (2) satisfies the requirements of Section 11.20(c)(4)
24-25 [11.20(c)(3) of this code] on or before the 60th [30th] day after
25-1 the date the chief appraiser notifies the organization of the
25-2 cancellation; and
25-3 (3) within the time provided by Subdivision (2) [of
25-4 this subsection] files with the chief appraiser a new completed
25-5 application for the exemption together with an affidavit stating
25-6 that the organization has complied with the requirements of Section
25-7 11.20(c)(4) [11.20(c)(3) of this code].
25-8 Sec. 11.422. Qualifications of a School. (a) If the chief
25-9 appraiser denies a timely filed application for an exemption under
25-10 Section 11.21 [of this code] for a school that otherwise qualified
25-11 for the exemption on January 1 of the year but that did not satisfy
25-12 the requirements of Subsection (d)(5) [(d)(3)] of that section on
25-13 that date, the school is eligible for the exemption for the tax
25-14 year if the school:
25-15 (1) satisfies the requirements of Section 11.21(d)(5)
25-16 [11.21(d)(3) of this code] before the later of [the following
25-17 dates]:
25-18 (A) July 1 of the year for which the exemption
25-19 applies; or
25-20 (B) the 60th [30th] day after the date the chief
25-21 appraiser notifies the school of its failure to comply with those
25-22 requirements; and
25-23 (2) within the time provided by Subdivision (1) [of
25-24 this subsection], files with the chief appraiser a new completed
25-25 application for the exemption together with an affidavit stating
26-1 that the school has complied with the requirements of Section
26-2 11.21(d)(5) [11.21(d)(3) of this code].
26-3 (b) If the chief appraiser cancels an exemption for a school
26-4 under Section 11.21 [of this code] that was erroneously allowed in
26-5 a tax year because the appraiser determines that the school did not
26-6 satisfy the requirements of Section 11.21(d)(5) [11.21(d)(3) of
26-7 this code] on January 1 of that year, the school is eligible for
26-8 the exemption for that tax year if the school:
26-9 (1) was otherwise qualified for the exemption;
26-10 (2) satisfies the requirements of Section 11.21(d)(5)
26-11 [11.21(d)(3) of this code] on or before the 30th day after the date
26-12 the chief appraiser notifies the school of the cancellation; and
26-13 (3) in the time provided in Subdivision (2) [of this
26-14 subsection] files with the chief appraiser a new completed
26-15 application stating that the school has complied with the
26-16 requirements of Section 11.21(d)(5) [11.21(d)(3) of this code].
26-17 SECTION 18. Subchapter C, Chapter 11, Tax Code, is amended
26-18 by adding Sections 11.423 and 11.424 to read as follows:
26-19 Sec. 11.423. QUALIFICATION OF CHARITABLE ORGANIZATION OR
26-20 YOUTH ASSOCIATION. (a) If the chief appraiser denies a timely
26-21 filed application for an exemption under Section 11.18 or 11.19 for
26-22 an organization or association that otherwise qualified for the
26-23 exemption on January 1 of the year but that did not satisfy the
26-24 requirements of Section 11.18(f)(2) or 11.19(d)(5), as appropriate,
26-25 on that date, the organization or association is eligible for the
27-1 exemption for the tax year if the organization or association:
27-2 (1) satisfies the requirements of Section 11.18(f)(2)
27-3 or 11.19(d)(5), as appropriate, before the later of:
27-4 (A) June 1 of the year to which the exemption
27-5 applies; or
27-6 (B) the 60th day after the date the chief
27-7 appraiser notifies the organization or association of its failure
27-8 to comply with those requirements; and
27-9 (2) within the time provided by Subdivision (1) files
27-10 with the chief appraiser a new completed application for the
27-11 exemption together with an affidavit stating that the organization
27-12 or association has complied with the requirements of Section
27-13 11.18(f)(2) or 11.19(d)(5), as appropriate.
27-14 (b) If the chief appraiser cancels an exemption for an
27-15 organization or association under Section 11.18 or 11.19 that was
27-16 erroneously allowed in a tax year because the chief appraiser
27-17 determines that the organization or association did not satisfy the
27-18 requirements of Section 11.18(f)(2) or 11.19(d)(5), as appropriate,
27-19 on January 1 of that year, the organization or association is
27-20 eligible for the exemption for that tax year if the organization or
27-21 association:
27-22 (1) was otherwise qualified for the exemption;
27-23 (2) satisfies the requirements of Section 11.18(f)(2)
27-24 or 11.19(d)(5), as appropriate, on or before the 60th day after the
27-25 date the chief appraiser notifies the organization or association
28-1 of the cancellation; and
28-2 (3) within the time provided by Subdivision (2) files
28-3 with the chief appraiser a new completed application for the
28-4 exemption together with an affidavit stating that the organization
28-5 or association has complied with the requirements of Section
28-6 11.18(f)(2) or 11.19(d)(5), as appropriate.
28-7 Sec. 11.424. CONFLICT BETWEEN GOVERNING REGULATION OF
28-8 NONPROFIT ORGANIZATION, ASSOCIATION, OR ENTITY AND CONTRACT WITH
28-9 UNITED STATES. To the extent of a conflict between a provision in
28-10 a contract entered into by an organization, association, or entity
28-11 with the United States and a provision in the charter, a bylaw, or
28-12 other regulation adopted by the organization or entity to govern
28-13 its affairs in compliance with Section 11.18(f)(2), 11.19(d)(5),
28-14 11.20(c)(4), or 11.21(d)(5), the existence of the contract or the
28-15 organization's compliance with the contract does not affect the
28-16 eligibility of the organization, association, or entity to receive
28-17 an exemption under the applicable section of this code, and the
28-18 organization, association, or entity may comply with the provision
28-19 in the contract instead of the conflicting provision in the
28-20 charter, bylaw, or other regulation.
28-21 SECTION 19. Section 11.43, Tax Code, is amended by amending
28-22 Subsections (d) and (f) and adding Subsections (j) and (k) to read
28-23 as follows:
28-24 (d) To receive an exemption the eligibility for which is
28-25 determined by the claimant's qualifications on January 1 of the tax
29-1 year, a [A] person required to claim an exemption must file a
29-2 completed exemption application form before May 1 and must furnish
29-3 the information required by the form. A person who after January 1
29-4 of a tax year acquires property that qualifies for an exemption
29-5 covered by Section 11.42(c) must apply for the exemption for the
29-6 applicable portion of that tax year before the first anniversary of
29-7 the date the person acquires the property. For good cause shown
29-8 the chief appraiser may extend the deadline for filing an exemption
29-9 application by written order for a single period not to exceed 60
29-10 days.
29-11 (f) The comptroller, in prescribing the contents of the
29-12 application form for each kind of exemption, shall ensure that the
29-13 form requires an applicant to furnish the information necessary to
29-14 determine the validity of the exemption claim. The form must
29-15 require an applicant to provide the applicant's name and driver's
29-16 license number, personal identification certificate number, or
29-17 social security account number. The comptroller shall include on
29-18 the forms a notice of the penalties prescribed by Section 37.10,
29-19 Penal Code, for making or filing an application containing a false
29-20 statement. The comptroller shall include, on application forms for
29-21 exemptions that do not have to be claimed annually, a statement
29-22 explaining that the application need not be made annually and that
29-23 if the exemption is allowed, the applicant has a duty to notify the
29-24 chief appraiser when the applicant's [his] entitlement to the
29-25 exemption ends. In this subsection:
30-1 (1) "Driver's license" has the meaning assigned that
30-2 term by Section 521.001, Transportation Code.
30-3 (2) "Personal identification certificate" means a
30-4 certificate issued by the Department of Public Safety under
30-5 Subchapter E, Chapter 521, Transportation Code.
30-6 (j) An application for an exemption under Section 11.13
30-7 must:
30-8 (1) list each owner of the residence homestead and the
30-9 interest of each owner;
30-10 (2) state that the applicant does not claim an
30-11 exemption under that section on another residence homestead;
30-12 (3) state that each fact contained in the application
30-13 is true; and
30-14 (4) include a sworn statement that the applicant has
30-15 read and understands the notice of the penalties required by
30-16 Subsection (f).
30-17 (k) A person who qualifies for the exemption authorized by
30-18 Section 11.13(c) or (d) for an individual 65 years of age or older
30-19 for a portion of a tax year must apply for the exemption no later
30-20 than the first anniversary of the date the person qualified for the
30-21 exemption.
30-22 SECTION 20. Subsection (a), Section 22.23, Tax Code, is
30-23 amended to read as follows:
30-24 (a) Rendition statements and property reports must be
30-25 delivered to the chief appraiser after January 1 and not later than
31-1 [before] April 15, except as provided by Section 22.02 [of this
31-2 code].
31-3 SECTION 21. Subsection (b), Section 23.01, Tax Code, is
31-4 amended to read as follows:
31-5 (b) The market value of property shall be determined by the
31-6 application of generally accepted appraisal methods and techniques.
31-7 If the appraisal district determines the appraised value of a
31-8 property using mass appraisal standards, the mass appraisal
31-9 standards must comply with the Uniform Standards of Professional
31-10 Appraisal Practice. The[, and the] same or similar appraisal
31-11 methods and techniques shall be used in appraising the same or
31-12 similar kinds of property. However, each property shall be
31-13 appraised based upon the individual characteristics that affect the
31-14 property's market value.
31-15 SECTION 22. Subchapter A, Chapter 23, Tax Code, is amended
31-16 by adding Sections 23.0101, 23.011, 23.012, and 23.013 to read as
31-17 follows:
31-18 Sec. 23.0101. CONSIDERATION OF ALTERNATE APPRAISAL METHODS.
31-19 In determining the market value of property, the chief appraiser
31-20 shall consider the cost, income, and market data comparison methods
31-21 of appraisal and use the method the chief appraiser considers most
31-22 appropriate.
31-23 Sec. 23.011. COST METHOD OF APPRAISAL. If the chief
31-24 appraiser uses the cost method of appraisal to determine the market
31-25 value of real property, the chief appraiser shall:
32-1 (1) use cost data obtained from generally accepted
32-2 sources;
32-3 (2) make any appropriate adjustment for physical,
32-4 functional, or economic obsolescence;
32-5 (3) make available to the public on request cost data
32-6 developed and used by the chief appraiser as applied to all
32-7 properties within a property category and may charge a reasonable
32-8 fee to the public for the data;
32-9 (4) clearly state the reason for any variation between
32-10 generally accepted cost data and locally produced cost data if the
32-11 data vary by more than 10 percent; and
32-12 (5) make available to the property owner on request
32-13 all applicable market data that demonstrate the difference between
32-14 the replacement cost of the improvements to the property and the
32-15 depreciated value of the improvements.
32-16 Sec. 23.012. INCOME METHOD OF APPRAISAL. If the chief
32-17 appraiser uses the income method of appraisal to determine the
32-18 market value of real property, the chief appraiser shall:
32-19 (1) use rental income and expense data pertaining to
32-20 the property if possible and applicable;
32-21 (2) make any projections of future rental income and
32-22 expenses only from clear and appropriate evidence;
32-23 (3) use data from generally accepted sources in
32-24 determining an appropriate capitalization rate; and
32-25 (4) determine a capitalization rate for
33-1 income-producing property that includes a reasonable return on
33-2 investment, taking into account the risk associated with the
33-3 investment.
33-4 Sec. 23.013. MARKET DATA COMPARISON METHOD OF APPRAISAL. If
33-5 the chief appraiser uses the market data comparison method of
33-6 appraisal to determine the market value of real property, the chief
33-7 appraiser shall use comparable sales data if possible and shall
33-8 adjust the comparable sales to the subject property.
33-9 SECTION 23. Subchapter B, Chapter 23, Tax Code, is amended
33-10 by adding Sections 23.21 and 23.22 to read as follows:
33-11 Sec. 23.21. LAND USE OF WHICH IS RESTRICTED BY GOVERNMENTAL
33-12 ENTITY. In appraising land the use of which is subject to a
33-13 restriction that is imposed by a governmental entity and to which
33-14 the owner of the land has not consented, including a restriction to
33-15 preserve wildlife habitat, the chief appraiser shall consider the
33-16 effect of the restriction on the value of the property.
33-17 Sec. 23.22. PROPERTY USED TO PROVIDE AFFORDABLE HOUSING. In
33-18 appraising real property that is rented or leased to a low-income
33-19 individual or family meeting income-eligibility standards
33-20 established by a governmental entity or under a governmental
33-21 contract for affordable housing limiting the amount that the
33-22 individual or family may be required to pay for the rental or lease
33-23 of the property, the chief appraiser shall take into account the
33-24 extent to which that use and limitation reduce the market value of
33-25 the property.
34-1 SECTION 24. Section 25.19, Tax Code, is amended by amending
34-2 Subsections (b) and (i) and adding Subsections (j) and (k) to read
34-3 as follows:
34-4 (b) The chief appraiser shall separate real from personal
34-5 property and include in the notice for each:
34-6 (1) a list of the taxing units in which the property
34-7 is taxable;
34-8 (2) the appraised value of the property in the
34-9 preceding year;
34-10 (3) the [assessed and] taxable value of the property
34-11 in the preceding year for each taxing unit taxing the property;
34-12 (4) the appraised value of the property for the
34-13 current year and the kind and amount of each partial exemption, if
34-14 any, approved for the current year;
34-15 (5) if the appraised value is greater than it was in
34-16 the preceding year:
34-17 (A) the effective tax rate that would be
34-18 announced pursuant to Chapter 26 [Section 26.04 of this code] if
34-19 the total values being submitted to the appraisal review board were
34-20 to be approved by the board with an explanation that that rate
34-21 would raise the same amount of revenue from property taxed in the
34-22 preceding year as the unit raised for those purposes in the
34-23 preceding year;
34-24 (B) the amount of tax that would be imposed on
34-25 the property on the basis of the rate described by Paragraph (A)
35-1 [of this subdivision]; and
35-2 (C) a statement that the governing body of the
35-3 unit may not adopt a rate that will increase tax revenues above tax
35-4 revenues for [operating purposes from properties taxed in] the
35-5 preceding year without publishing notice in a newspaper that it is
35-6 considering a tax increase and holding a hearing for taxpayers to
35-7 discuss the tax increase;
35-8 (6) in italic typeface, the following statement: "The
35-9 Texas Legislature does not set the amount of your local taxes.
35-10 Your property tax burden is decided by your locally elected
35-11 officials, and all inquiries concerning your taxes should be
35-12 directed to those officials";
35-13 (7) a detailed [brief] explanation of the time and
35-14 procedure for protesting the value;
35-15 (8) the date and place the appraisal review board will
35-16 begin hearing protests; and
35-17 (9) a brief explanation that:
35-18 (A) the governing body of each taxing unit
35-19 decides whether or not taxes on the property will increase and the
35-20 appraisal district only determines the value of the property; and
35-21 (B) a taxpayer who objects to increasing taxes
35-22 and government expenditures should complain to the governing bodies
35-23 of the taxing units and only complaints about value should be
35-24 presented to the appraisal office and the appraisal review board.
35-25 (i) By May 15 or as soon thereafter as practicable, the
36-1 chief appraiser shall deliver a written notice to the owner of each
36-2 property not included in a notice required to be delivered under
36-3 Subsection (a), if the property was reappraised in the current tax
36-4 year, if the ownership of the property changed during the preceding
36-5 year, or if the property owner or the agent of a property owner
36-6 authorized under Section 1.111 makes a written request for the
36-7 notice. The chief appraiser shall separate real from personal
36-8 property and include in the notice for each property:
36-9 (1) the appraised value of the property in the
36-10 preceding year;
36-11 (2) the appraised value of the property for the
36-12 current year and the kind of each partial exemption, if any,
36-13 approved for the current year;
36-14 (3) a detailed [brief] explanation of the time and
36-15 procedure for protesting the value; and
36-16 (4) the date and place the appraisal review board will
36-17 begin hearing protests.
36-18 (j) Delivery with a notice required by Subsection (a) or (i)
36-19 of a copy of the pamphlet published by the comptroller under
36-20 Section 5.06 or a copy of the notice published by the chief
36-21 appraiser under Section 41.70 is sufficient to comply with the
36-22 requirement that the notice include the information specified by
36-23 Subsection (b)(7) or (i)(3), as applicable.
36-24 (k) The chief appraiser shall include with a notice required
36-25 by Subsection (a) or (i):
37-1 (1) a copy of a notice of protest form as prescribed
37-2 by the comptroller under Section 41.44(d); and
37-3 (2) instructions for completing and mailing the form
37-4 to the appraisal review board and requesting a hearing on the
37-5 protest.
37-6 SECTION 25. Section 25.195, Tax Code, is amended to read as
37-7 follows:
37-8 Sec. 25.195. INSPECTION BY PROPERTY OWNER. (a) After the
37-9 chief appraiser has submitted the appraisal records to the
37-10 appraisal review board as provided by Section 25.22(a) [of this
37-11 code], a property owner or the owner's [his] designated agent may
37-12 inspect the appraisal records relating to property of the property
37-13 owner, together with supporting data, [and] schedules, and, except
37-14 as provided by Subsection (b), any other material or information
37-15 held by the chief appraiser, including material or information
37-16 obtained under Section 22.27, that is obtained or used in making
37-17 appraisals for the appraisal records relating to that property.
37-18 (b) The owner of property other than vacant land or real
37-19 property used for residential purposes or the owner's agent may not
37-20 inspect any material or information obtained under Section 22.27.
37-21 SECTION 26. Section 25.25, Tax Code, is amended by amending
37-22 Subsection (e) and adding Subsections (l) and (m) to read as
37-23 follows:
37-24 (e) If the chief appraiser and the property owner do not
37-25 agree to the correction before the 15th day after the date the
38-1 motion is filed, a [A] party bringing a motion under Subsection (c)
38-2 or (d) [of this section] is entitled on request to a hearing on and
38-3 a determination of the motion by the appraisal review board. A
38-4 party bringing a motion under this section must describe the error
38-5 or errors that the motion is seeking to correct. Not later than 15
38-6 days before the date of the hearing, the board shall [must] deliver
38-7 written notice of the date, time, and place of the hearing to the
38-8 chief appraiser, the property owner, and the presiding officer of
38-9 the governing body of each taxing unit in which the property is
38-10 located. The chief appraiser, the property owner, and each taxing
38-11 unit are entitled to present evidence and argument at the hearing
38-12 and to receive written notice of the board's determination of the
38-13 motion. A property owner who files the motion must comply with the
38-14 payment requirements of Section 42.08 [of this code] or forfeit the
38-15 [he forfeits his] right to a final determination of the motion.
38-16 (l) A motion may be filed under Subsection (c) regardless of
38-17 whether, for a tax year to which the motion relates, the owner of
38-18 the property protested under Chapter 41 an action relating to the
38-19 value of the property that is the subject of the motion.
38-20 (m) The hearing on a motion under Subsection (c) or (d)
38-21 shall be conducted in the manner provided by Subchapter C, Chapter
38-22 41.
38-23 SECTION 27. Subsection (d), Section 26.05, Tax Code, is
38-24 amended to read as follows:
38-25 (d) The governing body may not adopt a tax rate that if
39-1 applied to the total taxable value would impose an amount of taxes
39-2 that exceeds last year's levy [exceeds the lower of the rollback
39-3 tax rate or 103 percent of the effective tax rate calculated as
39-4 provided by Section 26.04 of this code] until it has held a public
39-5 hearing on the proposed tax rate [increase] and has otherwise
39-6 complied with Section 26.06 [of this code. The governing body of a
39-7 taxing unit shall reduce a tax rate set by law or by vote of the
39-8 electorate to the lower of the rollback tax rate or 103 percent of
39-9 the effective tax rate and may not adopt a higher rate unless it
39-10 first complies with Section 26.06 of this code].
39-11 SECTION 28. Subsection (b), Section 26.06, Tax Code, as
39-12 amended by Chapters 456 and 947, Acts of the 70th Legislature,
39-13 Regular Session, 1987, is amended to read as follows:
39-14 (b) The notice of a public hearing may not be smaller than
39-15 one-quarter page of a standard-size or a tabloid-size newspaper,
39-16 and the headline on the notice must be in 18-point or larger type.
39-17 The notice must:
39-18 (1) contain a statement in the following form:
39-19 "NOTICE OF PUBLIC HEARING ON TAX INCREASE
39-20 "The (name of the taxing unit) will hold a public hearing on
39-21 a proposal to increase total tax revenues from properties on the
39-22 tax roll [in (the preceding year)] by (percentage by which taxes to
39-23 be imposed under proposed tax rate exceed last year's levy [of
39-24 increase over the lower of the effective or rollback tax rates])
39-25 percent. Your individual taxes may increase [at a greater or
40-1 lesser rate,] or [even] decrease, depending on the change in the
40-2 taxable value of your property in relation to the change in taxable
40-3 value of all other property and the tax rate that is adopted.
40-4 "The public hearing will be held on (date and time) at
40-5 (meeting place).
40-6 "(Names of all members of the governing body, showing how
40-7 each voted on the proposal to consider the [tax] increase in total
40-8 tax revenues or, if one or more were absent, [or] indicating the
40-9 absences.)"; and
40-10 (2) contain the following information:
40-11 (A) the unit's adopted tax rate for the
40-12 preceding year and the proposed tax rate, expressed as an amount
40-13 per $100;
40-14 (B) the difference, expressed as an amount per
40-15 $100 and as a percent increase or decrease, as applicable, in the
40-16 proposed tax rate compared to the adopted tax rate for the
40-17 preceding year;
40-18 (C) the average appraised value of a residence
40-19 homestead in the taxing unit in the preceding year and in the
40-20 current year; the unit's homestead exemption, other than an
40-21 exemption available only to disabled persons or persons 65 years of
40-22 age or older, applicable to that appraised value in each of those
40-23 years; and the average taxable value of a residence homestead in
40-24 the unit in each of those years, disregarding any homestead
40-25 exemption available only to disabled persons or persons 65 years of
41-1 age or older;
41-2 (D) the amount of tax that would have been
41-3 imposed by the unit in the preceding year on a residence homestead
41-4 appraised at the average appraised value of a residence homestead
41-5 in that year, disregarding any homestead exemption available only
41-6 to disabled persons or persons 65 years of age or older;
41-7 (E) the amount of tax that would be imposed by
41-8 the unit in the current year on a residence homestead appraised at
41-9 the average appraised value of a residence homestead in the current
41-10 year, disregarding any homestead exemption available only to
41-11 disabled persons or persons 65 years of age or older, if the
41-12 proposed tax rate is adopted; and
41-13 (F) the difference between the amounts of tax
41-14 calculated under Paragraphs (D) and (E) of this subdivision,
41-15 expressed in dollars and cents and described as the annual increase
41-16 or decrease, as applicable, in the tax to be imposed by the unit on
41-17 the average residence homestead in the unit in the current year if
41-18 the proposed tax rate is adopted.
41-19 SECTION 29. Subsections (d), (e), and (g), Section 26.06,
41-20 Tax Code, are amended to read as follows:
41-21 (d) At the public hearing the governing body shall announce
41-22 the date, time, and place of the meeting at which it will vote on
41-23 the proposed tax rate to increase total tax revenues [rate
41-24 increase]. After the hearing it shall give notice of the meeting
41-25 at which it will vote on the proposed tax rate to increase total
42-1 tax revenues [rate] and the notice shall be in the same form as
42-2 prescribed by Subsections (b) and (c) [of this section], except
42-3 that it must state the following:
42-4 "NOTICE OF VOTE ON TAX RATE
42-5 "The (name of the taxing unit) conducted a public hearing on
42-6 a proposal to increase the total tax revenues of the (name of the
42-7 taxing unit) [your property taxes] by (percentage by which taxes to
42-8 be imposed under proposed tax rate exceed last year's levy [of
42-9 increase over the lower of the effective tax rate or rollback tax
42-10 rate]) percent on (date and time public hearing was conducted).
42-11 "The (governing body of the taxing unit) is scheduled to vote
42-12 on the tax rate that will result in that tax increase at a public
42-13 meeting to be held on (date and time) at (meeting place)."
42-14 (e) The meeting to vote on the increase may not be earlier
42-15 than the third day or later than the 14th day after the date of the
42-16 public hearing. The meeting must be held inside the boundaries of
42-17 the unit in a publicly owned building or, if a suitable publicly
42-18 owned building is not available, in a suitable building to which
42-19 the public normally has access. If the governing body does not
42-20 adopt a [an increased] rate that would impose an amount of taxes
42-21 that exceeds last year's levy by the 14th day, it must give a new
42-22 notice under Subsection (d) [of this section] before it may adopt a
42-23 rate that would impose an amount of taxes that exceeds last year's
42-24 levy [exceeds the tax rate calculated as provided by Section 26.04
42-25 of this code].
43-1 (f) [(g)] The comptroller by rule shall prescribe the
43-2 language and format to be used in the part of the notice required
43-3 by Subsection (b)(2) [of this section]. A notice under Subsection
43-4 (b) is not valid if it does not substantially conform to the
43-5 language and format prescribed by the comptroller under this
43-6 subsection.
43-7 SECTION 30. Section 26.10, Tax Code, is amended to read as
43-8 follows:
43-9 Sec. 26.10. Prorating Taxes--Loss of Exemption. (a) If the
43-10 appraisal roll shows that a property is eligible for taxation for
43-11 only part of a year because an exemption, other than a residence
43-12 homestead exemption, applicable on January 1 of that year
43-13 terminated during the year, the tax due against the property is
43-14 calculated by multiplying the tax due for the entire year as
43-15 determined as provided by Section 26.09 of this code by a fraction,
43-16 the denominator of which is 365 and the numerator of which is the
43-17 number of days the exemption is not applicable.
43-18 (b) If the appraisal roll shows that a property is eligible
43-19 for taxation at its full appraised value for only part of a year
43-20 because a residence homestead exemption for an individual 65 years
43-21 of age or older applicable on January 1 of that year terminated
43-22 during the year, the tax due against the property is calculated by:
43-23 (1) subtracting:
43-24 (A) the amount of the taxes that otherwise would
43-25 be imposed on the residence homestead for the entire year had the
44-1 individual qualified for the residence homestead exemption for the
44-2 entire year; from
44-3 (B) the amount of the taxes that otherwise would
44-4 be imposed on the residence homestead for the entire year had the
44-5 individual not qualified for the residence homestead exemption
44-6 during the year;
44-7 (2) multiplying the remainder determined under
44-8 Subdivision (1) by a fraction, the denominator of which is 365 and
44-9 the numerator of which is the number of days that elapsed after the
44-10 date the exemption terminated; and
44-11 (3) adding the product determined under Subdivision
44-12 (2) and the amount described by Subdivision (1)(B).
44-13 SECTION 31. Chapter 26, Tax Code, is amended by adding
44-14 Sections 26.112 and 26.113 to read as follows:
44-15 Sec. 26.112. PRORATING TAXES--QUALIFICATION BY ELDERLY
44-16 PERSON FOR 65 OR OVER RESIDENCE HOMESTEAD EXEMPTION. If an
44-17 individual qualifies for the exemption under Section 11.13(c) or
44-18 (d) for an individual 65 years of age or older after the beginning
44-19 of a tax year, the amount of the taxes due on the residence
44-20 homestead of the individual for the tax year is calculated by:
44-21 (1) subtracting:
44-22 (A) the amount of the taxes that otherwise would
44-23 be imposed on the residence homestead for the entire year had the
44-24 individual qualified for the residence homestead exemption on
44-25 January 1; from
45-1 (B) the amount of the taxes that otherwise would
45-2 be imposed on the residence homestead for the entire year had the
45-3 individual not qualified for the residence homestead exemption;
45-4 (2) multiplying the remainder determined under
45-5 Subdivision (1) by a fraction, the denominator of which is 365 and
45-6 the numerator of which is the number of days that elapsed prior to
45-7 the date that the individual qualified for the exemption; and
45-8 (3) adding the product determined under Subdivision
45-9 (2) and the amount described by Subdivision (1)(A).
45-10 Sec. 26.113. PRORATING TAXES--ACQUISITION BY NONPROFIT
45-11 ORGANIZATION. (a) If a person acquires taxable property that
45-12 qualifies for and is granted an exemption covered by Section
45-13 11.42(c) for a portion of the year in which the property was
45-14 acquired, the amount of tax due on the property for that year is
45-15 computed by multiplying the amount of taxes imposed on the property
45-16 for the entire year as provided by Section 26.09 by a fraction, the
45-17 denominator of which is 365 and the numerator of which is the
45-18 number of days in that year before the date the property qualified
45-19 for the exemption.
45-20 (b) If the exemption terminates during the year of
45-21 acquisition, the tax due is computed by multiplying the taxes
45-22 imposed for the entire year as provided by Section 26.09 by a
45-23 fraction, the denominator of which is 365 and the numerator of
45-24 which is the number of days the property does not qualify for the
45-25 exemption.
46-1 SECTION 32. Subsection (c), Section 31.01, Tax Code, is
46-2 amended to read as follows:
46-3 (c) The tax bill or a separate statement accompanying the
46-4 tax bill shall:
46-5 (1) identify the property subject to the tax;
46-6 (2) state the appraised value, assessed value, and
46-7 taxable value of the property;
46-8 (3) if the property is land appraised as provided by
46-9 Subchapter C, D, or E, Chapter 23 of this code, state the market
46-10 value and the taxable value for purposes of deferred or additional
46-11 taxation as provided by Section 23.46, 23.55, or 23.76, as
46-12 applicable, of this code;
46-13 (4) state the assessment ratio for the unit;
46-14 (5) state the type and amount of any partial exemption
46-15 applicable to the property, indicating whether it applies to
46-16 appraised or assessed value;
46-17 (6) state the total tax rate for the unit;
46-18 (7) state the amount of tax due, the due date, and the
46-19 delinquency date;
46-20 (8) explain the payment option and discounts provided
46-21 by Sections 31.03 and 31.05 of this code, if available to the
46-22 unit's taxpayers, and state the date on which each of the discount
46-23 periods provided by Section 31.05 concludes, if the discounts are
46-24 available;
46-25 (9) state the rates of penalty and interest imposed
47-1 for delinquent payment of the tax; [and]
47-2 (10) include the name and telephone number of the
47-3 assessor for the unit and, if different, of the collector for the
47-4 unit; and
47-5 (11) include any other information required by the
47-6 comptroller.
47-7 SECTION 33. Section 33.01, Tax Code, is amended by adding
47-8 Subsections (d) and (e) to read as follows:
47-9 (d) In lieu of the penalty imposed under Subsection (a), a
47-10 delinquent tax incurs a penalty of 50 percent of the amount of the
47-11 tax without regard to the number of months the tax has been
47-12 delinquent if the tax is delinquent because the property owner
47-13 received an exemption under:
47-14 (1) Section 11.13 and the chief appraiser subsequently
47-15 cancels the exemption because the residence was not the principal
47-16 residence of the property owner and the property owner received an
47-17 exemption for two or more additional residence homesteads for the
47-18 tax year in which the tax was imposed;
47-19 (2) Section 11.13(c) or (d) for a person who is 65
47-20 years of age or older and the chief appraiser subsequently cancels
47-21 the exemption because the property owner was younger than 65 years
47-22 of age; or
47-23 (3) Section 11.13(q) and the chief appraiser
47-24 subsequently cancels the exemption because the property owner was
47-25 younger than 55 years of age when the property owner's spouse died.
48-1 (e) A penalty imposed under Subsection (d) does not apply
48-2 if:
48-3 (1) the exemption was granted by the appraisal
48-4 district or board and not at the request or application of the
48-5 property owner or the property owner's agent; or
48-6 (2) at any time before the date the tax becomes
48-7 delinquent, the property owner gives to the chief appraiser of the
48-8 appraisal district in which the property is located written notice
48-9 of circumstances that would disqualify the owner for the exemption.
48-10 SECTION 34. The heading to Section 33.06, Tax Code, is
48-11 amended to read as follows:
48-12 Sec. 33.06. DEFERRED COLLECTION OF [CERTAIN] TAXES ON
48-13 RESIDENCE HOMESTEAD OF ELDERLY PERSON.
48-14 SECTION 35. Subsection (c), Section 33.06, Tax Code, is
48-15 amended to read as follows:
48-16 (c) To obtain an abatement, the individual must file in the
48-17 court in which suit is pending an affidavit stating the facts
48-18 required to be established by Subsection (a) of this section. If
48-19 no controverting affidavit is filed by the taxing unit filing suit
48-20 or if, after a hearing, the court finds the individual is entitled
48-21 to the deferral, the court shall abate the suit until the
48-22 individual no longer owns and occupies the property as a residence
48-23 homestead. The clerk of the court shall deliver a copy of the
48-24 judgment abating the suit to the chief appraiser of each appraisal
48-25 district that appraises the property.
49-1 SECTION 36. Subchapter A, Chapter 33, Tax Code, is amended
49-2 by adding Section 33.065 to read as follows:
49-3 Sec. 33.065. DEFERRED COLLECTION OF TAXES ON APPRECIATING
49-4 RESIDENCE HOMESTEAD. (a) An individual is entitled to defer or
49-5 abate a suit to collect a delinquent tax imposed on the portion of
49-6 the appraised value of property the individual owns and occupies as
49-7 the individual's residence homestead that exceeds the sum of:
49-8 (1) 105 percent of the appraised value of the property
49-9 for the preceding year; and
49-10 (2) the market value of all new improvements to the
49-11 property.
49-12 (b) An individual may not obtain a deferral or abatement
49-13 under this section, and any deferral or abatement previously
49-14 received expires, if the taxes on the portion of the appraised
49-15 value of the property that does not exceed the amount provided by
49-16 Subsection (a) are delinquent.
49-17 (c) To obtain a deferral, an individual must file with the
49-18 chief appraiser for the appraisal district in which the property is
49-19 located an affidavit stating the facts required to be established
49-20 by Subsection (a). The chief appraiser shall notify each taxing
49-21 unit participating in the district of the filing. After an
49-22 affidavit is filed under this subsection, a taxing unit may not
49-23 file suit to collect delinquent taxes on the property for which
49-24 collection is deferred until the individual no longer owns and
49-25 occupies the property as a residence homestead.
50-1 (d) To obtain an abatement, the individual must file in the
50-2 court in which the delinquent tax suit is pending an affidavit
50-3 stating the facts required to be established by Subsection (a). If
50-4 the taxing unit that filed the suit does not file a controverting
50-5 affidavit or if, after a hearing, the court finds the individual is
50-6 entitled to the deferral, the court shall abate the suit until the
50-7 individual no longer owns and occupies the property as the
50-8 individual's residence homestead. The clerk of the court shall
50-9 deliver a copy of the judgment abating the suit to the chief
50-10 appraiser of each appraisal district that appraises the property.
50-11 (e) A deferral or abatement under this section applies only
50-12 to ad valorem taxes imposed beginning with the tax year following
50-13 the first tax year the individual entitled to the deferral or
50-14 abatement qualifies the property for an exemption under Section
50-15 11.13. For purposes of this subsection, the owner of a residence
50-16 homestead that is qualified for an exemption under Section 11.13 on
50-17 January 1, 1998, is considered to have qualified the property for
50-18 the first time in the 1997 tax year.
50-19 (f) If the collection of delinquent taxes on the property
50-20 was deferred in a prior tax year and the sum of the amounts
50-21 described by Subsections (a)(1) and (2) exceeds the appraised value
50-22 of the property for the current tax year, the amount of taxes the
50-23 collection of which may be deferred is reduced by the amount
50-24 calculated by multiplying the taxing unit's tax rate for the
50-25 current year by the amount by which that sum exceeds the appraised
51-1 value of the property.
51-2 (g) A tax lien remains on the property and interest
51-3 continues to accrue during the period collection of delinquent
51-4 taxes is deferred as provided by this section. The annual interest
51-5 rate during the deferral period is eight percent instead of the
51-6 rate provided by Section 33.01. A penalty may not be imposed on
51-7 the delinquent taxes for which collection is deferred during a
51-8 deferral period. The additional penalty provided by Section 33.07
51-9 may be imposed only if the delinquent taxes for which collection is
51-10 deferred remain delinquent on or after the 91st day after the date
51-11 the deferral period expires. A plea of limitation, laches, or want
51-12 of prosecution does not apply against the taxing unit because of
51-13 deferral of collection as provided by this section.
51-14 (h) Each year the chief appraiser for each appraisal
51-15 district shall publicize in a manner reasonably designed to notify
51-16 all residents of the county for which the appraisal district is
51-17 established of the provisions of this section and, specifically,
51-18 the method by which an eligible person may obtain a deferral.
51-19 (i) In this section:
51-20 (1) "New improvement" means an improvement to a
51-21 residence homestead that is made after the appraisal of the
51-22 property for the preceding year and that increases the market value
51-23 of the property. The term does not include ordinary maintenance of
51-24 an existing structure or the grounds or another feature of the
51-25 property.
52-1 (2) "Residence homestead" has the meaning assigned
52-2 that term by Section 11.13.
52-3 SECTION 37. Sections 41.01 and 41.43, Tax Code, are amended
52-4 to read as follows:
52-5 Sec. 41.01. DUTIES OF APPRAISAL REVIEW BOARD. (a) The
52-6 appraisal review board shall:
52-7 (1) determine protests initiated by property owners;
52-8 (2) determine challenges initiated by taxing units;
52-9 (3) correct clerical errors in the appraisal records
52-10 and the appraisal rolls;
52-11 (4) act on motions to correct appraisal rolls under
52-12 Section 25.25;
52-13 (5) determine whether an exemption or a partial
52-14 exemption is improperly granted and whether land is improperly
52-15 granted appraisal as provided by Subchapter C, D, or E, Chapter 23;
52-16 and
52-17 (6) take any other action or make any other
52-18 determination that this title specifically authorizes or requires.
52-19 (b) The board may not review or reject an agreement between
52-20 a property owner or the owner's agent and the chief appraiser under
52-21 Section 1.111(e).
52-22 Sec. 41.43. PROTEST OF DETERMINATION OF VALUE OR INEQUALITY
52-23 OF APPRAISAL. (a) In a protest authorized by Section 41.41(1) or
52-24 (2), the appraisal district has the burden of establishing the
52-25 value of the property by a preponderance of the evidence presented
53-1 at the hearing. If the appraisal district fails to meet that
53-2 standard, the protest shall be determined in favor of the property
53-3 owner.
53-4 (b) A protest on the ground of unequal appraisal of property
53-5 shall be determined in favor of the protesting party unless [if]
53-6 the appraisal district [protesting party] establishes that the
53-7 appraisal ratio of the property is not greater than the median
53-8 level of appraisal of:
53-9 (1) a reasonable and representative sample of other
53-10 properties in the appraisal district; [or]
53-11 (2) a sample of properties in the appraisal district
53-12 consisting of a reasonable number of other properties similarly
53-13 situated to, or of the same general kind or character as, the
53-14 property subject to the protest; or
53-15 (3) a reasonable number of comparable properties
53-16 appropriately adjusted.
53-17 (c) For purposes of this section, evidence includes the
53-18 data, schedules, formulas, or other information used to establish
53-19 the matter at issue.
53-20 SECTION 38. Section 41.45, Tax Code, is amended by adding
53-21 Subsections (g) and (h) to read as follows:
53-22 (g) In addition to the grounds for a postponement under
53-23 Subsection (e), the board shall postpone the hearing to a later
53-24 date if:
53-25 (1) the owner of the property or the owner's agent is
54-1 also scheduled to appear at a hearing on a protest filed with the
54-2 appraisal review board of another appraisal district;
54-3 (2) the hearing before the other appraisal review
54-4 board is scheduled to occur on the same date as the hearing set by
54-5 the appraisal review board from which the postponement is sought;
54-6 (3) the notice of hearing delivered to the property
54-7 owner or the owner's agent by the other appraisal review board
54-8 bears an earlier postmark than the notice of hearing delivered by
54-9 the board from which the postponement is sought or, if the date of
54-10 the postmark is identical, the property owner or agent has not
54-11 requested a postponement of the other hearing; and
54-12 (4) the property owner or the owner's agent includes
54-13 with the request for a postponement a copy of the notice of hearing
54-14 delivered to the property owner or the owner's agent by the other
54-15 appraisal review board.
54-16 (h) Before the hearing on a protest or immediately after the
54-17 hearing begins, the chief appraiser and the property owner or the
54-18 owner's agent shall each provide the other with a copy of any
54-19 written material that the person intends to offer or submit to the
54-20 appraisal review board at the hearing.
54-21 SECTION 39. Subsection (a), Section 41.46, Tax Code, is
54-22 amended to read as follows:
54-23 (a) The appraisal review board before which a protest
54-24 hearing is scheduled shall deliver written notice to the property
54-25 owner initiating a protest of the date, time, and place fixed for
55-1 the hearing on the protest unless the property owner waives in
55-2 writing notice of the hearing. The board shall deliver the notice
55-3 not later than the 15th day before the date of the hearing.
55-4 SECTION 40. Subchapter D, Chapter 41, Tax Code, is amended
55-5 by adding Section 41.71 to read as follows:
55-6 Sec. 41.71. EVENING AND WEEKEND HEARINGS. An appraisal
55-7 review board by rule shall provide for hearings on protests in the
55-8 evening or on a Saturday or Sunday.
55-9 SECTION 41. Sections 42.01 and 42.06, Tax Code, are amended
55-10 to read as follows:
55-11 Sec. 42.01. RIGHT OF APPEAL BY PROPERTY OWNER. A property
55-12 owner is entitled to appeal:
55-13 (1) an order of the appraisal review board
55-14 determining:
55-15 (A) a protest by the property owner as provided
55-16 by Subchapter C of Chapter 41 [of this code]; or
55-17 (B) a determination of an appraisal review board
55-18 on a motion filed under Section 25.25; or
55-19 (2) [an order of the comptroller determining a protest
55-20 by the property owner of the appraisal, interstate allocation, or
55-21 intrastate apportionment of transportation business intangibles as
55-22 provided by Subchapter A, Chapter 24 of this code; or]
55-23 [(3)] an order of the comptroller issued as provided
55-24 by Subchapter B, Chapter 24, [of this code] apportioning among the
55-25 counties the appraised value of railroad rolling stock owned by the
56-1 property owner.
56-2 Sec. 42.06. NOTICE OF APPEAL. (a) To exercise the party's
56-3 right to appeal an order of an appraisal review board, a party
56-4 other than a property owner must file written notice of appeal
56-5 within 15 days after the date the party receives the notice
56-6 required by Section 41.47 or, in the case of a taxing unit, by
56-7 Section 41.07 that the order appealed has been issued. To exercise
56-8 the right to appeal an order of the comptroller, a party other than
56-9 a property owner must file written notice of appeal within 15 days
56-10 after the date the party receives the comptroller's order. A
56-11 property owner is not required to file a notice of appeal under
56-12 this section.
56-13 (b) [The owner of an item of property having an appraised
56-14 value in excess of $1 million who appeals an order of the appraisal
56-15 review board or comptroller under this chapter must file a written
56-16 notice of appeal not later than the 15th day after the date the
56-17 owner receives the notice required by Section 41.47 or the order of
56-18 the comptroller, as applicable. A property owner who fails to
56-19 comply with this subsection does not forfeit the right to appeal,
56-20 but is liable for a penalty to each taxing unit in which the
56-21 property is taxable in an amount equal to five percent of the taxes
56-22 finally determined to be due on the property. For purposes of this
56-23 subsection, the appraised value of the property is its appraised
56-24 value for the current year according to the certified appraisal
56-25 roll or the determination of the comptroller, as applicable, as
57-1 modified by order of the appraisal review board or comptroller
57-2 pursuant to a protest.]
57-3 [(c)] A party required to file a notice of appeal under this
57-4 section other than a chief appraiser who appeals an order of an
57-5 appraisal review board shall file the notice with the chief
57-6 appraiser of the appraisal district for which the appraisal review
57-7 board is established. A chief appraiser who appeals an order of an
57-8 appraisal review board shall file the notice with the appraisal
57-9 review board. A party who appeals an order of the comptroller
57-10 shall file the notice with the comptroller.
57-11 (c) [(d)] If the chief appraiser, a taxing unit, or a county
57-12 appeals, the chief appraiser, if the appeal is of an order of the
57-13 appraisal review board, or the comptroller, if the appeal is of an
57-14 order of the comptroller, shall deliver a copy of the notice to the
57-15 property owner whose property is involved in the appeal within 10
57-16 days after the date the notice is filed.
57-17 (d) [(e)] On the filing of a notice of appeal, the chief
57-18 appraiser shall indicate where appropriate those entries on the
57-19 appraisal records that are subject to the appeal.
57-20 SECTION 42. Section 42.26, Tax Code, is amended by adding
57-21 Subsection (d) to read as follows:
57-22 (d) The district court shall grant relief on the ground that
57-23 a property is appraised unequally if the appraised value of the
57-24 property exceeds the median appraised value of a reasonable number
57-25 of comparable properties appropriately adjusted.
58-1 SECTION 43. Subsection (b), Section 42.43, Tax Code, is
58-2 amended to read as follows:
58-3 (b) For a refund made under this section because an
58-4 exemption under Section 11.20 that was denied by the chief
58-5 appraiser or appraisal review board is granted, the taxing unit
58-6 shall include with the refund interest on the amount refunded
58-7 calculated at an annual rate that is equal to the auction average
58-8 rate quoted on a bank discount basis for three-month treasury bills
58-9 issued by the United States government, as published by the Federal
58-10 Reserve Board, for the week in which the taxes became delinquent,
58-11 but not more than 10 percent, calculated from the delinquency date
58-12 for the taxes until the date the refund is made. For any other
58-13 refund made under this section, the taxing unit shall include with
58-14 the refund interest on the amount refunded at an annual rate of
58-15 [that is equal to the auction average rate quoted on a bank
58-16 discount basis for three-month treasury bills issued by the United
58-17 States government, as published by the Federal Reserve Board, for
58-18 the week in which the taxes became delinquent, but not more than]
58-19 eight percent, calculated from the delinquency date for the taxes
58-20 until the date the refund is made.
58-21 SECTION 44. Subsection (d), Section 403.302, Government
58-22 Code, is amended to read as follows:
58-23 (d) For the purposes of this section, "taxable value" means
58-24 market value less:
58-25 (1) the total dollar amount of any exemptions of part
59-1 but not all of the value of taxable property required by the
59-2 constitution or a statute that a district lawfully granted in the
59-3 year that is the subject of the study;
59-4 (2) the total dollar amount of any exemptions granted
59-5 before May 31, 1993, within a reinvestment zone under agreements
59-6 authorized by Chapter 312, Tax Code;
59-7 (3) the total dollar amount of any captured appraised
59-8 value of property that is located in a reinvestment zone and that
59-9 is eligible for tax increment financing under Chapter 311, Tax
59-10 Code;
59-11 (4) the total dollar amount of any exemptions granted
59-12 under Section 11.251, Tax Code;
59-13 (5) the difference between the market value and the
59-14 productivity value of land that qualifies for appraisal on the
59-15 basis of its productive capacity, except that the productivity
59-16 value may not exceed the fair market value of the land;
59-17 (6) the portion of the appraised value of residence
59-18 homesteads of the elderly on which school district taxes are not
59-19 imposed in the year that is the subject of the study, calculated as
59-20 if the residence homesteads were appraised at the full value
59-21 required by law;
59-22 (7) a portion of the market value of property not
59-23 otherwise fully taxable by the district at market value because of
59-24 action required by statute or the constitution of this state that,
59-25 if the tax rate adopted by the district is applied to it, produces
60-1 an amount equal to the difference between the tax that the district
60-2 would have imposed on the property if the property were fully
60-3 taxable at market value and the tax that the district is actually
60-4 authorized to impose on the property; [and]
60-5 (8) the market value of all tangible personal
60-6 property, other than manufactured homes, owned by a family or
60-7 individual and not held or used for the production of income;
60-8 (9) the appraised value of property the collection of
60-9 delinquent taxes on which is deferred under Section 33.06, Tax
60-10 Code;
60-11 (10) the portion of the appraised value of property
60-12 the collection of delinquent taxes on which is deferred under
60-13 Section 33.065, Tax Code; and
60-14 (11) the amount by which the market value of a
60-15 residence homestead to which Section 23.23, Tax Code, applies
60-16 exceeds the appraised value of that property as calculated under
60-17 that section.
60-18 SECTION 45. Chapter 550, Acts of the 63rd Legislature,
60-19 Regular Session, 1973 (Article 2372p-3, Vernon's Texas Civil
60-20 Statutes), is amended by adding Section 6A to read as follows:
60-21 Sec. 6A. REAPPRAISAL OF REAL PROPERTY. An appraisal
60-22 district may not reappraise real property solely because the owner
60-23 of the property is an applicant for or the holder of a license
60-24 under this Act. This section does not prohibit an appraisal
60-25 district from reappraising real property in connection with the
61-1 appraisal of real property in the same general area or if requested
61-2 to do so by the board or by the applicant or license holder.
61-3 SECTION 46. Section 1.12, Tax Code, is amended by adding
61-4 Subsection (d) to read as follows:
61-5 (d) For purposes of this section, the appraisal ratio of a
61-6 homestead to which Section 23.23 applies is the ratio of the
61-7 property's market value as determined by the appraisal district or
61-8 appraisal review board, as applicable, to the market value of the
61-9 property according to law. The appraisal ratio is not calculated
61-10 according to the appraised value of the property as limited by
61-11 Section 23.23.
61-12 SECTION 47. Subchapter B, Chapter 23, Tax Code, is amended
61-13 by adding Section 23.23 to read as follows:
61-14 Sec. 23.23. LIMITATION ON APPRAISED VALUE OF RESIDENCE
61-15 HOMESTEAD. (a) The appraised value of a residence homestead for a
61-16 tax year may not exceed the lesser of:
61-17 (1) the market value of the property; or
61-18 (2) the sum of:
61-19 (A) 10 percent of the appraised value of the
61-20 property for the last year in which the property was appraised for
61-21 taxation times the number of years since the property was last
61-22 appraised;
61-23 (B) the appraised value of the property for the
61-24 last year in which the property was appraised; and
61-25 (C) the market value of all new improvements to
62-1 the property.
62-2 (b) When appraising a residence homestead, the chief
62-3 appraiser shall:
62-4 (1) appraise the property at its market value; and
62-5 (2) include in the appraisal records both the market
62-6 value of the property and the amount computed under Subsection
62-7 (a)(2).
62-8 (c) The limitation provided by Subsection (a) takes effect
62-9 as to a residence homestead on January 1 of the tax year following
62-10 the first tax year the owner qualifies the property for an
62-11 exemption under Section 11.13. The limitation expires on January 1
62-12 of the first tax year that neither the owner of the property when
62-13 the limitation took effect nor the owner's spouse or surviving
62-14 spouse qualifies for an exemption under Section 11.13.
62-15 (d) This section does not apply to property appraised under
62-16 Subchapter C, D, E, F, or G.
62-17 (e) In this section, "new improvement" means an improvement
62-18 to a residence homestead that is made after the appraisal of the
62-19 property for the preceding year and that increases the market value
62-20 of the property. The term does not include ordinary maintenance of
62-21 an existing structure or the grounds or another feature of the
62-22 property.
62-23 SECTION 48. Section 26.052, Tax Code, is repealed.
62-24 SECTION 49. Subsection (j), Section 23.55, Tax Code, as
62-25 added by Chapter 471, Acts of the 74th Legislature, 1995, applies
63-1 to a change of use of land:
63-2 (1) on or after June 12, 1995; or
63-3 (2) before June 12, 1995, if:
63-4 (A) the change of use occurred on or after June
63-5 12, 1990; and
63-6 (B) on June 12, 1995, the owner of the land had
63-7 not been determined to be liable for the sanctions provided by
63-8 Subsection (a), Section 23.55, Tax Code, by a final and
63-9 nonappealable order or judgment.
63-10 SECTION 50. (a) Except as otherwise provided by this
63-11 section or another provision of this Act, this Act takes effect
63-12 January 1, 1998.
63-13 (b) This Act applies to each tax year that begins on or
63-14 after the effective date of this Act. The changes in law made by
63-15 this Act do not apply to ad valorem taxes imposed before the
63-16 effective date of this Act, and the law as it existed before the
63-17 effective date of this Act is continued in effect for those
63-18 purposes.
63-19 (c) The change in law made by this Act to Section 6.41, Tax
63-20 Code, relating to the qualifications of an appraisal review board
63-21 member applies only to the appointment of a member on or after the
63-22 effective date of this Act.
63-23 (d) The change in law made by this Act to Section 11.43, Tax
63-24 Code, applies only to an application for an exemption from ad
63-25 valorem taxation filed on or after the effective date of this Act.
64-1 An application for an exemption from ad valorem taxation filed
64-2 before the effective date of this Act is covered by the law in
64-3 effect on the date the application was filed, and that law is
64-4 continued in effect for that purpose.
64-5 (e) The change in law made by this Act to Section 25.25, Tax
64-6 Code, applies only to a motion to correct an appraisal roll filed
64-7 on or after the effective date of this Act. A motion filed before
64-8 the effective date of this Act is covered by the law in effect when
64-9 the motion was filed, and that law is continued in effect for that
64-10 purpose.
64-11 (f) The change in law made by the addition by this Act of
64-12 Subsection (d), Section 33.01, Tax Code, applies only to a penalty
64-13 incurred on ad valorem taxes that become delinquent on or after the
64-14 effective date of this Act. A penalty incurred on ad valorem taxes
64-15 that became delinquent before the effective date of this Act is
64-16 covered by the law in effect when the taxes became delinquent, and
64-17 that law is continued in effect for that purpose.
64-18 (g) Sections 37 through 40 of this Act apply only to a
64-19 protest of a property appraisal the notice of which is filed on or
64-20 after the effective date of this Act. A protest of a property
64-21 appraisal the notice of which is filed before the effective date of
64-22 this Act is covered by the law in effect when the notice of protest
64-23 was filed, and the former law is continued in effect for that
64-24 purpose.
64-25 SECTION 51. The importance of this legislation and the
S.B. No. 841
65-1 crowded condition of the calendars in both houses create an
65-2 emergency and an imperative public necessity that the
65-3 constitutional rule requiring bills to be read on three several
65-4 days in each house be suspended, and this rule is hereby suspended.
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 841 passed the Senate on
April 22, 1997, by the following vote: Yeas 30, Nays 0;
May 28, 1997, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 29, 1997, House
granted request of the Senate; June 1, 1997, Senate adopted
Conference Committee Report by the following vote: Yeas 25,
Nays 1.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 841 passed the House, with
amendments, on May 25, 1997, by a non-record vote; May 29, 1997,
House granted request of the Senate for appointment of Conference
Committee; June 1, 1997, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor