By Cain, et al. S.B. No. 841
Substitute the following for S.B. No. 841:
By Hilbert C.S.S.B. No. 841
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to ad valorem taxation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1.12, Tax Code, is amended by adding
1-5 Subsection (d) to read as follows:
1-6 (d) For purposes of this section, the appraisal ratio of a
1-7 homestead to which Section 23.21 or 23.22 applies is the ratio of
1-8 the property's market value as determined by the appraisal district
1-9 or appraisal review board, as applicable, to the market value of
1-10 the property according to law. The appraisal ratio is not
1-11 calculated according to the appraised value of the property as
1-12 limited by Section 23.21.
1-13 SECTION 2. Section 6.03, Tax Code, is amended by amending
1-14 Subsections (a), (b), (c), and (l) to read as follows:
1-15 (a) The appraisal district is governed by a board of six
1-16 [five] directors. Five directors are appointed by the taxing units
1-17 that participate in the district as provided by this section. The
1-18 county assessor-collector is an ex officio director. To be
1-19 eligible to serve on the board of directors, an individual other
1-20 than the county assessor-collector must be a resident of the
1-21 district and must have resided in the district for at least two
1-22 years immediately preceding the date the individual takes office.
1-23 An [To be eligible to serve on the board of an appraisal district
1-24 established for a county having a population of at least 200,000
2-1 bordering a county having a population of at least 2,000,000 and
2-2 the Gulf of Mexico, an individual must be a member of the governing
2-3 body or an elected officer of a taxing unit entitled to vote on the
2-4 appointment of board members under this section. However, an]
2-5 employee of a taxing unit that participates in the district is not
2-6 eligible to serve on the board unless the individual is also a
2-7 member of the governing body or an elected official of a taxing
2-8 unit that participates in the district.
2-9 (b) Members of the board of directors other than the county
2-10 assessor-collector serve two-year terms beginning on January 1 of
2-11 even-numbered years.
2-12 (c) Members of the board of directors other than the county
2-13 assessor-collector are appointed by vote of the governing bodies of
2-14 the incorporated cities and towns, the school districts, and, if
2-15 entitled to vote, the conservation and reclamation districts that
2-16 participate in the district and of the county. A governing body
2-17 may cast all its votes for one candidate or distribute them among
2-18 candidates for any number of directorships. Conservation and
2-19 reclamation districts are not entitled to vote unless at least one
2-20 conservation and reclamation district in the district delivers to
2-21 the chief appraiser a written request to nominate and vote on the
2-22 board of directors by June 1 of each odd-numbered year. On receipt
2-23 of a request, the chief appraiser shall certify a list by June 15
2-24 of all eligible conservation and reclamation districts that are
2-25 imposing taxes and that participate in the district.
2-26 (l) If a vacancy occurs on the board of directors other than
2-27 a vacancy in the position held by the county assessor-collector,
3-1 each taxing unit that is entitled to vote by this section may
3-2 nominate by resolution adopted by its governing body a candidate to
3-3 fill the vacancy. The unit shall submit the name of its nominee to
3-4 the chief appraiser within 10 days after notification from the
3-5 board of directors of the existence of the vacancy, and the chief
3-6 appraiser shall prepare and deliver to the board of directors
3-7 within the next five days a list of the nominees. The board of
3-8 directors shall elect by majority vote of its members one of the
3-9 nominees to fill the vacancy.
3-10 SECTION 3. Section 6.034(a), Tax Code, is amended to read as
3-11 follows:
3-12 (a) The taxing units participating in an appraisal district
3-13 may provide that the terms of the appointed members of the board of
3-14 directors be staggered if the governing bodies of at least
3-15 three-fourths of the taxing units that are entitled to vote on the
3-16 appointment of board members adopt resolutions providing for the
3-17 staggered terms. A change to staggered terms may be adopted only
3-18 if the method or procedure for appointing board members is changed
3-19 under Section 6.031 of this code to eliminate or have the effect of
3-20 eliminating cumulative voting for board members as provided by
3-21 Section 6.03 of this code. A change to staggered terms may be
3-22 proposed concurrently with a change that eliminates or has the
3-23 effect of eliminating cumulative voting.
3-24 SECTION 4. Section 6.04(a), Tax Code, is amended to read as
3-25 follows:
3-26 (a) A majority of the appraisal district board of directors
3-27 constitutes a quorum. The county assessor-collector is the
4-1 chairman of the board. At its first meeting each calendar year,
4-2 the board shall elect from its members a [chairman and a]
4-3 secretary.
4-4 SECTION 5. Section 6.41(c), Tax Code, is amended to read as
4-5 follows:
4-6 (c) To be eligible to serve on the board, an individual must
4-7 be a resident of the district and must have resided in the district
4-8 for at least two years. A member of the appraisal district board
4-9 of directors or an officer or employee of the comptroller, the
4-10 appraisal office, or a taxing unit is ineligible to serve on the
4-11 board. In an appraisal district established for a county having a
4-12 population of more than 300,000, an individual who has served for
4-13 all or part of three previous terms as a board member or auxiliary
4-14 board member on the appraisal review board or is a former officer
4-15 or employee of a taxing unit is ineligible to serve on the
4-16 appraisal review board. In an appraisal district established for
4-17 any other county, an individual who has served for all or part of
4-18 three consecutive terms as a board member or auxiliary board member
4-19 on the appraisal review board is ineligible to serve on the
4-20 appraisal review board during a term that begins on the next
4-21 January 1 following the third of those consecutive terms.
4-22 SECTION 6. Section 6.411, Tax Code, is amended to read as
4-23 follows:
4-24 Sec. 6.411. AUXILIARY [BOARD] MEMBERS IN CERTAIN COUNTIES.
4-25 (a) The board of directors of an appraisal district may appoint
4-26 auxiliary members to [the appraisal review board to] hear taxpayer
4-27 protests before the appraisal review board and to assist the board
5-1 in performing its other duties.
5-2 (b) The number of auxiliary members that may be appointed
5-3 is:
5-4 (1) for a county with a population of 1,000,000 or
5-5 more, not more than 66 [30] auxiliary members;
5-6 (2) for a county with a population of at least 500,000
5-7 but less than 1,000,000, not more than 45 [20] auxiliary members;
5-8 (3) for a county with a population of at least 250,000
5-9 but less than 500,000, not more than 25 [10] auxiliary members; and
5-10 (4) for a county with a population of less than
5-11 250,000, not more than 10 [6] auxiliary members.
5-12 (c) Sections 6.41(c), (d), and (e) and Sections 6.412 and
5-13 6.413 apply to auxiliary [board] members [appointed under this
5-14 section].
5-15 (d) An auxiliary member [of the appraisal review board
5-16 appointed under this section] may not vote in a determination made
5-17 by the board, may not serve as chairman or secretary of the board,
5-18 and is not included in determining what constitutes a quorum of the
5-19 board or whether a quorum is present at any meeting of the board.
5-20 (e) An auxiliary member [of the appraisal review board
5-21 appointed under this section] is entitled to make a recommendation
5-22 to the board in a protest heard by the member but is not entitled
5-23 to vote on the determination of the protest by the board.
5-24 (f) An auxiliary member [of the appraisal review board
5-25 appointed under this section] is entitled to the per diem set by
5-26 the appraisal district budget for each day on which the member
5-27 actively engages in performing the member's duties under Subsection
6-1 (a) or (e) and is entitled to actual and necessary expenses
6-2 incurred in performing those duties in the same manner as [other]
6-3 members of the appraisal review board.
6-4 SECTION 7. Sections 11.13 (h) and (q), Tax Code, are amended
6-5 to read as follows:
6-6 (h) Joint or community owners may not each receive the same
6-7 exemption provided by or pursuant to this section for the same
6-8 residence homestead in the same year. An eligible disabled person
6-9 who is 65 or older may not receive both a disabled and an elderly
6-10 residence homestead exemption but may choose either. A person may
6-11 not receive an exemption under this section for more than one
6-12 residence homestead in the same year.
6-13 (q) The surviving spouse of an individual who qualifies for
6-14 [received] an exemption under Subsection (d) for the residence
6-15 homestead of a person 65 or older is entitled to an exemption for
6-16 the same property from the same taxing unit in an amount equal to
6-17 that of the exemption for which [received by] the deceased spouse
6-18 qualified if:
6-19 (1) the deceased spouse died in a year in which the
6-20 deceased spouse qualified for [received] the exemption;
6-21 (2) the surviving spouse was 55 or older when the
6-22 deceased spouse died; and
6-23 (3) the property was the residence homestead of the
6-24 surviving spouse when the deceased spouse died and remains the
6-25 residence homestead of the surviving spouse.
6-26 SECTION 8. Section 11.18(f), Tax Code, is amended to read as
6-27 follows:
7-1 (f) A charitable organization must:
7-2 (1) use its assets in performing the organization's
7-3 charitable functions or the charitable functions of another
7-4 charitable organization; and
7-5 (2) [,] by charter, bylaw, or other regulation adopted
7-6 by the organization to govern its affairs[:]
7-7 [(1) pledge its assets for use in performing the
7-8 organization's charitable functions; and]
7-9 [(2)] direct that on discontinuance of the
7-10 organization by dissolution or otherwise:
7-11 (A) the assets are to be transferred to this
7-12 state, the United States, or [to] an educational, religious,
7-13 charitable, or other similar organization that is qualified as a
7-14 charitable organization under Section 501(c)(3), Internal Revenue
7-15 Code of 1986, as amended; or
7-16 (B) if required for the organization to qualify
7-17 as a tax-exempt organization under Section 501(c)(12), Internal
7-18 Revenue Code of 1986, as amended, the assets are to be transferred
7-19 directly to the organization's members, each of whom, by
7-20 application for an acceptance of membership in the organization,
7-21 has agreed to immediately transfer those assets to this state or to
7-22 an educational, religious, charitable, or other similar
7-23 organization that is qualified as a charitable organization under
7-24 Section 501(c)(3), Internal Revenue Code of 1986, as amended, as
7-25 designated in the bylaws, charter, or regulation adopted by the
7-26 organization.
7-27 SECTION 9. Section 11.19(d), Tax Code, is amended to read as
8-1 follows:
8-2 (d) To qualify as a youth development association for the
8-3 purposes of this section, an association must:
8-4 (1) be organized and operated [engage] primarily for
8-5 the purpose of [in] promoting the threefold spiritual, mental, and
8-6 physical development of boys, girls, young men, or young women;
8-7 (2) be operated in a way that does not result in
8-8 accrual of distributable profits, realization of private gain
8-9 resulting from payment of compensation in excess of a reasonable
8-10 allowance for salary or other compensation for services rendered,
8-11 or realization of any other form of private gain;
8-12 (3) operate in conjunction with a state or national
8-13 organization that is organized and operated for the same purpose as
8-14 the association; [and]
8-15 (4) use its assets in performing the association's
8-16 youth development functions or the youth development functions of
8-17 another youth development association; and
8-18 (5) by charter, bylaw, or other regulation adopted by
8-19 the association to govern its affairs[:]
8-20 [(A) pledge its assets for use in performing the
8-21 association's youth development functions; and]
8-22 [(B)] direct that on discontinuance of the
8-23 association by dissolution or otherwise the assets are to be
8-24 transferred to this state, the United States, or [to] a charitable,
8-25 educational, religious, or other similar organization that is
8-26 qualified as a charitable organization under Section 501(c)(3),
8-27 Internal Revenue Code of 1954, as amended.
9-1 SECTION 10. Section 11.20(c), Tax Code, is amended to read
9-2 as follows:
9-3 (c) To qualify as a religious organization for the purposes
9-4 of this section, an organization (whether operated by an
9-5 individual, as a corporation, or as an association) must:
9-6 (1) be organized and operated primarily for the
9-7 purpose of engaging in religious worship or promoting the spiritual
9-8 development or well-being of individuals;
9-9 (2) be operated in a way that does not result in
9-10 accrual of distributable profits, realization of private gain
9-11 resulting from payment of compensation in excess of a reasonable
9-12 allowance for salary or other compensation for services rendered,
9-13 or realization of any other form of private gain; [and]
9-14 (3) use its assets in performing the organization's
9-15 religious functions or the religious functions of another religious
9-16 organization; and
9-17 (4) by charter, bylaw, or other regulation adopted by
9-18 the organization to govern its affairs[:]
9-19 [(A) pledge its assets for use in performing the
9-20 organization's religious functions; and]
9-21 [(B)] direct that on discontinuance of the
9-22 organization by dissolution or otherwise the assets are to be
9-23 transferred to this state, the United States, or [to] a charitable,
9-24 educational, religious, or other similar organization that is
9-25 qualified as a charitable organization under Section 501(c)(3),
9-26 Internal Revenue Code of 1954, as amended.
9-27 SECTION 11. Section 11.21(d), Tax Code, is amended to read
10-1 as follows:
10-2 (d) To qualify as a school for the purposes of this section,
10-3 an organization (whether operated by an individual, as a
10-4 corporation, or as an association) must:
10-5 (1) be organized and operated primarily for the
10-6 purpose of engaging in educational functions;
10-7 (2) normally maintain a regular faculty and curriculum
10-8 and normally have a regularly organized body of students in
10-9 attendance at the place where its educational functions are carried
10-10 on;
10-11 (3) [(2)] be operated in a way that does not result in
10-12 accrual of distributable profits, realization of private gain
10-13 resulting from payment of compensation in excess of a reasonable
10-14 allowance for salary or other compensation for services rendered,
10-15 or realization of any other form of private gain and, if the
10-16 organization is a corporation, be organized as a nonprofit
10-17 corporation as defined by the Texas Non-Profit Corporation Act;
10-18 [and]
10-19 (4) use its assets in performing the organization's
10-20 educational functions or the educational functions of another
10-21 educational organization; and
10-22 (5) [(3)] by charter, bylaw, or other regulation
10-23 adopted by the organization to govern its affairs[:]
10-24 [(A) pledge its assets for use in performing the
10-25 organization's educational functions; and]
10-26 [(B)] direct that on discontinuance of the
10-27 organization by dissolution or otherwise the assets are to be
11-1 transferred to this state, the United States, or [to] an
11-2 educational, charitable, religious, or other similar organization
11-3 that is qualified as a charitable organization under Section
11-4 501(c)(3), Internal Revenue Code of 1954, as amended.
11-5 SECTION 12. Section 11.26, Tax Code, is amended by amending
11-6 Subsection (b) and adding Subsections (g), (h), (i), (j), and (k)
11-7 to read as follows:
11-8 (b) If an individual makes improvements to the individual's
11-9 [his] residence homestead, other than improvements required to
11-10 comply with governmental requirements or repairs, the school
11-11 district may increase the tax on the homestead in the first year
11-12 the market value of the homestead is increased on the appraisal
11-13 roll because of the enhancement of value by the improvements. The
11-14 amount of the tax increase is determined by applying the current
11-15 tax rate to the difference in the assessed value of the homestead
11-16 with the improvements and the assessed value it would have had
11-17 without the improvements. The limitations imposed by Subsection
11-18 (a), (g), or (i), as applicable, [of this section] then apply to
11-19 the increased amount of tax until more improvements, if any, are
11-20 made.
11-21 (g) Except as provided by Subsection (b), if an individual
11-22 who receives a limitation on tax increases imposed by this section
11-23 subsequently qualifies a different residence homestead for an
11-24 exemption under Section 11.13, a school district may not impose ad
11-25 valorem taxes on the subsequently qualified homestead in a year in
11-26 an amount that exceeds the amount of taxes the school district
11-27 would have imposed on the subsequently qualified homestead in the
12-1 first year in which the individual receives that exemption for the
12-2 subsequently qualified homestead had the limitation on tax
12-3 increases imposed by this section not been in effect, multiplied by
12-4 a fraction the numerator of which is the total amount of school
12-5 district taxes imposed on the former homestead in the last year in
12-6 which the individual received that exemption for the former
12-7 homestead and the denominator of which is the total amount of
12-8 school district taxes that would have been imposed on the former
12-9 homestead in the last year in which the individual received that
12-10 exemption for the former homestead had the limitation on tax
12-11 increases imposed by this section not been in effect.
12-12 (h) An individual who receives a limitation on tax increases
12-13 under this section and who subsequently qualifies a different
12-14 residence homestead for an exemption under Section 11.13, or an
12-15 agent of the individual, is entitled to receive from the chief
12-16 appraiser of the appraisal district in which the former homestead
12-17 was located a written certificate providing the information
12-18 necessary to determine whether the individual may qualify for a
12-19 limitation on the subsequently qualified homestead under Subsection
12-20 (g) and to calculate the amount of taxes the school district may
12-21 impose on the subsequently qualified homestead.
12-22 (i) If an individual who qualifies for the exemption
12-23 provided by Section 11.13(c) for an individual 65 years of age or
12-24 older dies, the surviving spouse of the individual is entitled to
12-25 the limitation applicable to the residence homestead of the
12-26 individual if:
12-27 (1) the surviving spouse is 55 years of age or older
13-1 when the individual dies; and
13-2 (2) the residence homestead of the individual:
13-3 (A) is the residence homestead of the surviving
13-4 spouse on the date that the individual dies; and
13-5 (B) remains the residence homestead of the
13-6 surviving spouse.
13-7 (j) If the individual who qualifies for an exemption
13-8 provided by Section 11.13(c) for an individual 65 years of age or
13-9 older dies in the year in which the person turned 65 years of age,
13-10 except as provided by Subsection (h), the amount to which the
13-11 surviving spouse's school district taxes are limited under
13-12 Subsection (g) is the amount of school district taxes imposed on
13-13 the residence homestead in that year calculated under Section
13-14 26.112 as if the individual qualifying for the exemption had lived
13-15 for the entire year.
13-16 (k) If in the first tax year after the individual died, the
13-17 amount of school district taxes imposed on the residence homestead
13-18 of the surviving spouse is less than the amount of school district
13-19 taxes imposed in the preceding year as limited by Subsection (g),
13-20 in a subsequent tax year the surviving spouse's school district
13-21 taxes on that residence homestead are limited to the taxes imposed
13-22 by the district in that first tax year.
13-23 SECTION 13. Section 11.41, Tax Code, is amended to read as
13-24 follows:
13-25 Sec. 11.41. Partial Ownership of Exempt Property. (a) If
13-26 [Except as provided by Subsection (b) of this section, if] a person
13-27 who qualifies for an exemption as provided by this chapter is not
14-1 the sole owner of the property to which the exemption applies, the
14-2 exemption shall be multiplied by a fraction, the numerator of which
14-3 is [limited to] the value of the property interest the person owns
14-4 and the denominator of which is the value of the property.
14-5 (b) [If a person who qualifies for an exemption as provided
14-6 by Section 11.13 or 11.22 of this code is not the sole owner of the
14-7 property to which the exemption applies, the amount of the
14-8 exemption is calculated on the basis of the value of the property
14-9 interest the person owns.]
14-10 [(c)] In the application of this section, community
14-11 ownership by a person who qualifies for the exemption and the
14-12 person's [his] spouse is treated as if the person owns the
14-13 community interest of the person's [his] spouse.
14-14 SECTION 14. Section 11.42(b), Tax Code, is amended to read
14-15 as follows:
14-16 (b) An exemption authorized by Section 11.11 or by Section
14-17 11.13(c) or (d) for an individual 65 years of age or older [of this
14-18 code] is effective immediately on qualification for the exemption.
14-19 SECTION 15. Sections 11.421 and 11.422, Tax Code, are
14-20 amended to read as follows:
14-21 Sec. 11.421. Qualification of Religious Organization. (a)
14-22 If the chief appraiser denies a timely filed application for an
14-23 exemption under Section 11.20 [of this code] for an organization
14-24 that otherwise qualified for the exemption on January 1 of the year
14-25 but that did not satisfy the requirements of Subsection (c)(4)
14-26 [(c)(3)] of that section on that date, the organization is eligible
14-27 for the exemption for the tax year if the organization:
15-1 (1) satisfies the requirements of Section 11.20(c)(4)
15-2 [11.20(c)(3) of this code] before the later of [the following
15-3 dates]:
15-4 (A) June 1 of the year to which the exemption
15-5 applies; or
15-6 (B) the 60th [30th] day after the date the chief
15-7 appraiser notifies the organization of its failure to comply with
15-8 those requirements; and
15-9 (2) within the time provided by Subdivision (1) [of
15-10 this subsection] files with the chief appraiser a new completed
15-11 application for the exemption together with an affidavit stating
15-12 that the organization has complied with the requirements of Section
15-13 11.20(c)(4) [11.20(c)(3) of this code].
15-14 (b) If the chief appraiser cancels an exemption for a
15-15 religious organization under Section 11.20 [of this code] that was
15-16 erroneously allowed in a tax year because he determines that the
15-17 organization did not satisfy the requirements of Section
15-18 11.20(c)(4) [11.20(c)(3)] on January 1 of that year, the
15-19 organization is eligible for the exemption for that tax year if the
15-20 organization:
15-21 (1) was otherwise qualified for the exemption;
15-22 (2) satisfies the requirements of Section 11.20(c)(4)
15-23 [11.20(c)(3) of this code] on or before the 60th [30th] day after
15-24 the date the chief appraiser notifies the organization of the
15-25 cancellation; and
15-26 (3) within the time provided by Subdivision (2) [of
15-27 this subsection] files with the chief appraiser a new completed
16-1 application for the exemption together with an affidavit stating
16-2 that the organization has complied with the requirements of Section
16-3 11.20(c)(4) [11.20(c)(3) of this code].
16-4 Sec. 11.422. Qualifications of a School. (a) If the chief
16-5 appraiser denies a timely filed application for an exemption under
16-6 Section 11.21 [of this code] for a school that otherwise qualified
16-7 for the exemption on January 1 of the year but that did not satisfy
16-8 the requirements of Subsection (d)(5) [(d)(3)] of that section on
16-9 that date, the school is eligible for the exemption for the tax
16-10 year if the school:
16-11 (1) satisfies the requirements of Section 11.21(d)(5)
16-12 [11.21(d)(3) of this code] before the later of [the following
16-13 dates]:
16-14 (A) July 1 of the year for which the exemption
16-15 applies; or
16-16 (B) the 60th [30th] day after the date the chief
16-17 appraiser notifies the school of its failure to comply with those
16-18 requirements; and
16-19 (2) within the time provided by Subdivision (1) [of
16-20 this subsection], files with the chief appraiser a new completed
16-21 application for the exemption together with an affidavit stating
16-22 that the school has complied with the requirements of Section
16-23 11.21(d)(5) [11.21(d)(3) of this code].
16-24 (b) If the chief appraiser cancels an exemption for a school
16-25 under Section 11.21 [of this code] that was erroneously allowed in
16-26 a tax year because the appraiser determines that the school did not
16-27 satisfy the requirements of Section 11.21(d)(5) [11.21(d)(3) of
17-1 this code] on January 1 of that year, the school is eligible for
17-2 the exemption for that tax year if the school:
17-3 (1) was otherwise qualified for the exemption;
17-4 (2) satisfies the requirements of Section 11.21(d)(5)
17-5 [11.21(d)(3) of this code] on or before the 30th day after the date
17-6 the chief appraiser notifies the school of the cancellation; and
17-7 (3) in the time provided in Subdivision (2) [of this
17-8 subsection] files with the chief appraiser a new completed
17-9 application stating that the school has complied with the
17-10 requirements of Section 11.21(d)(5) [11.21(d)(3) of this code].
17-11 SECTION 16. Subchapter C, Chapter 11, Tax Code, is amended
17-12 by adding Sections 11.423 and 11.424 to read as follows:
17-13 Sec. 11.423. QUALIFICATION OF CHARITABLE ORGANIZATION OR
17-14 YOUTH ASSOCIATION. (a) If the chief appraiser denies a timely
17-15 filed application for an exemption under Section 11.18 or 11.19 for
17-16 an organization or association that otherwise qualified for the
17-17 exemption on January 1 of the year but that did not satisfy the
17-18 requirements of Section 11.18(f)(2) or 11.19(d)(5), as appropriate,
17-19 on that date, the organization or association is eligible for the
17-20 exemption for the tax year if the organization or association:
17-21 (1) satisfies the requirements of Section 11.18(f)(2)
17-22 or 11.19(d)(5), as appropriate, before the later of:
17-23 (A) June 1 of the year to which the exemption
17-24 applies; or
17-25 (B) the 60th day after the date the chief
17-26 appraiser notifies the organization or association of its failure
17-27 to comply with those requirements; and
18-1 (2) within the time provided by Subdivision (1) files
18-2 with the chief appraiser a new completed application for the
18-3 exemption together with an affidavit stating that the organization
18-4 or association has complied with the requirements of Section
18-5 11.18(f)(2) or 11.19(d)(5), as appropriate.
18-6 (b) If the chief appraiser cancels an exemption for an
18-7 organization or association under Section 11.18 or 11.19 that was
18-8 erroneously allowed in a tax year because the chief appraiser
18-9 determines that the organization or association did not satisfy the
18-10 requirements of Section 11.18(f)(2) or 11.19(d)(5), as appropriate,
18-11 on January 1 of that year, the organization or association is
18-12 eligible for the exemption for that tax year if the organization or
18-13 association:
18-14 (1) was otherwise qualified for the exemption;
18-15 (2) satisfies the requirements of Section 11.18(f)(2)
18-16 or 11.19(d)(5), as appropriate, on or before the 60th day after the
18-17 date the chief appraiser notifies the organization or association
18-18 of the cancellation; and
18-19 (3) within the time provided by Subdivision (2) files
18-20 with the chief appraiser a new completed application for the
18-21 exemption together with an affidavit stating that the organization
18-22 or association has complied with the requirements of Section
18-23 11.18(f)(2) or 11.19(d)(5), as appropriate.
18-24 Sec. 11.424. CONFLICT BETWEEN GOVERNING REGULATION OF
18-25 NONPROFIT ORGANIZATION, ASSOCIATION, OR ENTITY AND CONTRACT WITH
18-26 UNITED STATES. To the extent of a conflict between a provision in
18-27 a contract entered into by an organization, association, or entity
19-1 with the United States and a provision in the charter, a bylaw, or
19-2 other regulation adopted by the organization or entity to govern
19-3 its affairs in compliance with Section 11.18(f)(2), 11.19(d)(5),
19-4 11.20(c)(4), or 11.21(d)(5), the existence of the contract or the
19-5 organization's compliance with the contract does not affect the
19-6 eligibility of the organization, association, or entity to receive
19-7 an exemption under the applicable section of this code, and the
19-8 organization, association, or entity may comply with the provision
19-9 in the contract instead of the conflicting provision in the
19-10 charter, bylaw, or other regulation.
19-11 SECTION 17. Section 11.43, Tax Code, is amended by amending
19-12 Subsections (d) and (f) and adding Subsections (j) and (k) to read
19-13 as follows:
19-14 (d) Except as provided by Subsection (k), a [A] person
19-15 required to claim an exemption must file a completed exemption
19-16 application form before May 1 and must furnish the information
19-17 required by the form. For good cause shown the chief appraiser may
19-18 extend the deadline for filing an exemption application by written
19-19 order for a single period not to exceed 60 days.
19-20 (f) The comptroller, in prescribing the contents of the
19-21 application form for each kind of exemption, shall ensure that the
19-22 form requires an applicant to furnish the information necessary to
19-23 determine the validity of the exemption claim. The form must
19-24 require an applicant to provide the applicant's name and driver's
19-25 license number, personal identification certificate number, or
19-26 social security account number. The comptroller shall include on
19-27 the forms a notice of the penalties prescribed by Section 37.10,
20-1 Penal Code, for making or filing an application containing a false
20-2 statement. The comptroller shall include, on application forms for
20-3 exemptions that do not have to be claimed annually, a statement
20-4 explaining that the application need not be made annually and that
20-5 if the exemption is allowed, the applicant has a duty to notify the
20-6 chief appraiser when the applicant's [his] entitlement to the
20-7 exemption ends. In this subsection:
20-8 (1) "Driver's license" has the meaning assigned that
20-9 term by Section 521.001, Transportation Code.
20-10 (2) "Personal identification certificate" means a
20-11 certificate issued by the Department of Public Safety under
20-12 Subchapter E, Chapter 521, Transportation Code.
20-13 (j) An application for an exemption under Section 11.13
20-14 must:
20-15 (1) list each owner of the residence homestead and the
20-16 interest of each owner;
20-17 (2) state that the applicant does not claim an
20-18 exemption under that section on another residence homestead;
20-19 (3) state that each fact contained in the application
20-20 is true; and
20-21 (4) include a signed statement that the applicant has
20-22 read and understands the notice of the penalties required by
20-23 Subsection (f).
20-24 (k) A person who qualifies for the exemption authorized by
20-25 Section 11.13(c) or (d) for an individual 65 years of age or older
20-26 for a portion of a tax year shall notify the chief appraiser of the
20-27 person's qualification for the exemption no later than the first
21-1 anniversary of the date the person qualified for the exemption.
21-2 SECTION 18. Section 23.01(b), Tax Code, is amended to read
21-3 as follows:
21-4 (b) The market value of property shall be determined by the
21-5 application of generally accepted appraisal methods and techniques,
21-6 including the mass appraisal standards recognized by the Uniform
21-7 Standards of Professional Appraisal Practice. The [and the] same
21-8 or similar appraisal methods and techniques shall be used in
21-9 appraising the same or similar kinds of property. However, each
21-10 property shall be appraised based upon the individual
21-11 characteristics that affect the property's market value.
21-12 SECTION 19. Subchapter A, Chapter 23, Tax Code, is amended
21-13 by adding Sections 23.011-23.013 to read as follows:
21-14 Sec. 23.011. COST METHOD OF APPRAISAL. If the chief
21-15 appraiser uses the cost method of appraisal to determine the market
21-16 value of real property, the chief appraiser shall:
21-17 (1) use cost data obtained from generally accepted
21-18 sources;
21-19 (2) make any appropriate adjustment for physical,
21-20 functional, or economic obsolescence;
21-21 (3) make available to the public on request cost data
21-22 developed and used by the chief appraiser and may charge a
21-23 reasonable fee to the public for the data;
21-24 (4) clearly state the reason for any variation between
21-25 generally accepted cost data and locally produced cost data if the
21-26 data vary by more than 10 percent; and
21-27 (5) make available on request all applicable market
22-1 data that demonstrate the difference between the replacement cost
22-2 of the improvements to the property and the depreciated value of
22-3 the improvements.
22-4 Sec. 23.012. INCOME METHOD OF APPRAISAL. If the chief
22-5 appraiser uses the income method of appraisal to determine the
22-6 market value of real property, the chief appraiser shall:
22-7 (1) use rental income and expense data pertaining to
22-8 the property if possible and applicable;
22-9 (2) make any projections of future rental income and
22-10 expenses only from clear and appropriate evidence;
22-11 (3) use data from generally accepted sources in
22-12 determining an appropriate capitalization rate; and
22-13 (4) determine a capitalization rate for
22-14 income-producing property that includes a reasonable return on
22-15 investment, taking into account the risk associated with the
22-16 investment.
22-17 Sec. 23.013. MARKET DATA COMPARISON METHOD OF APPRAISAL. If
22-18 the chief appraiser uses the market data comparison method of
22-19 appraisal to determine the market value of real property, the chief
22-20 appraiser shall use comparable sales data if possible.
22-21 SECTION 20. Subchapter B, Chapter 23, Tax Code, is amended
22-22 by adding Sections 23.176, 23.21, and 23.22 to read as follows:
22-23 Sec. 23.176. APPRAISAL METHOD USED TO CALCULATE VALUE OF OIL
22-24 OR GAS PRODUCING PROPERTY. (a) This section applies only to
22-25 property consisting of a separate interest in oil or gas and from
22-26 which oil or gas is produced.
22-27 (b) Each year, the owner of property who renders the
23-1 property under Section 22.01 may request the chief appraiser to
23-2 calculate the market value of the property using:
23-3 (1) a discounted cash-flow analysis;
23-4 (2) a gross-income multiplier;
23-5 (3) another generally recognized appraisal method; or
23-6 (4) any combination of Subdivisions (1)-(3).
23-7 (c) The owner shall include the owner's proposed appraisal
23-8 method or combination of methods on the rendition statement or
23-9 property report filed with the chief appraiser. If the property is
23-10 owned by more than one person, all of the owners must join in the
23-11 request.
23-12 (d) If the chief appraiser determines that use of the
23-13 appraisal method or combination of methods requested by the owner
23-14 of the property will result in an accurate calculation of the
23-15 market value of the property, the chief appraiser shall calculate
23-16 the market value of the property using that method or combination.
23-17 (e) If the chief appraiser determines that use of the
23-18 appraisal method or combination of methods requested by the owner
23-19 of the property will not result in an accurate calculation of the
23-20 market value of the property, the chief appraiser shall:
23-21 (1) notify the owner that the chief appraiser will not
23-22 calculate the market value of the property using that method or
23-23 combination; and
23-24 (2) inform the owner of the alternative appraisal
23-25 method or combination of methods that the chief appraiser intends
23-26 to use to calculate the market value of the property.
23-27 (f) Notice to the owner must:
24-1 (1) be in writing and delivered before the 15th day
24-2 after the date the rendition statement or property report is filed;
24-3 and
24-4 (2) inform the owner that the owner is entitled to
24-5 appeal the chief appraiser's determination to the appraisal review
24-6 board of the appraisal district by filing a notice of appeal with
24-7 the board before the 15th day after the date the notice is
24-8 delivered to the owner.
24-9 (g) If an appeal is timely filed with the appraisal review
24-10 board, the board shall hold a hearing on the appeal. The board
24-11 shall hold the hearing no later than the 15th day after the date
24-12 that the notice of appeal is filed. The hearing shall be conducted
24-13 in the manner provided by Subchapter C, Chapter 41.
24-14 (h) The board shall determine whether the taxable value of
24-15 the property shall be calculated by use of:
24-16 (1) the appraisal method or combination of methods
24-17 requested by the owner;
24-18 (2) the appraisal method or combination of methods
24-19 proposed by the chief appraiser; or
24-20 (3) if the board determines that neither method will
24-21 result in an accurate calculation of the market value of the
24-22 property, another method determined by the chief appraiser and
24-23 approved by the board at the hearing.
24-24 (i) The determination of the appraisal review board on the
24-25 appeal is final and may not be appealed by the property owner or
24-26 the chief appraiser.
24-27 (j) The comptroller shall adopt rules and forms to implement
25-1 this section and provide sufficient copies to each appraisal office
25-2 in this state. The rules must include a definition of each
25-3 appraisal method listed in Subsections (b)(1) and (2). An
25-4 appraisal office shall provide, without charge, a copy of the
25-5 definitions adopted by the comptroller under this section to a
25-6 person requesting the definitions.
25-7 Sec. 23.21. LIMITATIONS ON APPRAISED VALUE OF RESIDENCE
25-8 HOMESTEADS. (a) The appraised value of a residence homestead for
25-9 a tax year may not exceed the lesser of:
25-10 (1) the market value of the property; or
25-11 (2) the sum of:
25-12 (A) 105 percent of the appraised value of the
25-13 property for the preceding year; and
25-14 (B) the market value of all new improvements to
25-15 the property.
25-16 (b) When appraising a residence homestead, the chief
25-17 appraiser shall:
25-18 (1) appraise the property at its market value; and
25-19 (2) include in the appraisal records both the market
25-20 value of the property and the amount computed under Subsection
25-21 (a)(2).
25-22 (c) The limitation provided by Subsection (a) takes effect
25-23 as to a residence homestead on January 1 of the tax year following
25-24 the first tax year the owner qualifies the property for an
25-25 exemption under Section 11.13. The limitation expires on January 1
25-26 of the first tax year that neither the owner of the property when
25-27 the limitation took effect, the owner's spouse or surviving spouse,
26-1 nor a minor child of the owner qualifies for an exemption under
26-2 Section 11.13.
26-3 (d) This section does not apply to property appraised under
26-4 Subchapter C, D, E, F, or G.
26-5 (e) In this section, "new improvement" means an improvement
26-6 to a residence homestead that is made after the appraisal of the
26-7 property for the preceding year and that increases the market value
26-8 of the property. The term does not include ordinary maintenance of
26-9 an existing structure or the grounds or another feature of the
26-10 property.
26-11 Sec. 23.22. LIMITATIONS ON FREQUENCY OF APPRAISAL RESIDENCE
26-12 HOMESTEAD. (a) Except as provided by Subsection (b), the
26-13 appraiser may not recognize an increase in the appraised value of
26-14 residential property more than once every three years.
26-15 (b) The chief appraiser shall recognize an increase in the
26-16 appraised value of residential property before the third
26-17 anniversary of the date of the preceding recognition of an increase
26-18 in the appraised value of the property if, after the date, the
26-19 property owner makes an improvement to the property that increases
26-20 the market value of the property at least 10 percent.
26-21 (c) An application is not required for an owner of
26-22 residential property to receive a benefit under this section.
26-23 (d) The chief appraiser shall include in the appraisal
26-24 records both the market value of the property and its appraised
26-25 value as determined by this section.
26-26 (e) This section does not apply to property appraised under
26-27 Subchapter C, D, E, F, or G.
27-1 SECTION 21. Section 23.56, Tax Code, is amended to read as
27-2 follows:
27-3 Sec. 23.56. LAND INELIGIBLE FOR APPRAISAL AS OPEN-SPACE
27-4 LAND. (a) Land is not eligible for appraisal as provided by this
27-5 subchapter if:
27-6 (1) the land is located inside the corporate limits of
27-7 an incorporated city or town, unless:
27-8 (A) the city or town is not providing the land
27-9 with governmental and proprietary services substantially equivalent
27-10 in standard and scope to those services it provides in other parts
27-11 of the city or town with similar topography, land utilization, and
27-12 population density; or
27-13 (B) the land has been devoted principally to
27-14 agricultural use continuously for the preceding five years;
27-15 (2) the land is owned by an individual who is a
27-16 nonresident alien or by a foreign government if that individual or
27-17 government is required by federal law or by rule adopted pursuant
27-18 to federal law to register his ownership or acquisition of that
27-19 property; [or]
27-20 (3) the land is owned by a corporation, partnership,
27-21 trust, or other legal entity if the entity is required by federal
27-22 law or by rule adopted pursuant to federal law to register its
27-23 ownership or acquisition of that land and a nonresident alien or a
27-24 foreign government or any combination of nonresident aliens and
27-25 foreign governments own a majority interest in the entity; or
27-26 (4) the land consists of a parcel of real property
27-27 that is contiguous to one or more parcels of real property owned by
28-1 the same person and all parcels taken together would not be
28-2 eligible for appraisal under this subchapter.
28-3 (b) A parcel is not ineligible under Subsection (a)(4) for
28-4 appraisal under this subchapter because one of the contiguous
28-5 parcels is the residence homestead of the person.
28-6 (c) In this section, "same person" includes:
28-7 (1) an individual's spouse or an individual related
28-8 within the first degree of consanguinity; or
28-9 (2) affiliated legal entities.
28-10 SECTION 22. Section 25.19, Tax Code, is amended by amending
28-11 Subsections (b) and (i) and adding Subsection (j) to read as
28-12 follows:
28-13 (b) The chief appraiser shall separate real from personal
28-14 property and include in the notice for each:
28-15 (1) a list of the taxing units in which the property
28-16 is taxable;
28-17 (2) the appraised value of the property in the
28-18 preceding year;
28-19 (3) the [assessed and] taxable value of the property
28-20 in the preceding year for each taxing unit taxing the property;
28-21 (4) the appraised value of the property for the
28-22 current year and the kind and amount of each partial exemption, if
28-23 any, approved for the current year;
28-24 (5) if the appraised value is greater than it was in
28-25 the preceding year:
28-26 (A) the effective tax rate that would be
28-27 announced pursuant to Chapter 26 [Section 26.04 of this code] if
29-1 the total values being submitted to the appraisal review board were
29-2 to be approved by the board with an explanation that that rate
29-3 would raise the same amount of revenue from property taxed in the
29-4 preceding year as the unit raised for those purposes in the
29-5 preceding year;
29-6 (B) the amount of tax that would be imposed on
29-7 the property on the basis of the rate described by Paragraph (A)
29-8 [of this subdivision]; and
29-9 (C) a statement that the governing body of the
29-10 unit may not adopt a rate that will increase tax revenues for
29-11 operating purposes from properties taxed in the preceding year
29-12 without publishing notice in a newspaper that it is considering a
29-13 tax increase and holding a hearing for taxpayers to discuss the tax
29-14 increase;
29-15 (6) in italic typeface, the following statement: "The
29-16 Texas Legislature does not set the amount of your local taxes.
29-17 Your property tax burden is decided by your locally elected
29-18 officials, and all inquiries concerning your taxes should be
29-19 directed to those officials";
29-20 (7) a detailed [brief] explanation of the time and
29-21 procedure for protesting the value;
29-22 (8) the date and place the appraisal review board will
29-23 begin hearing protests; and
29-24 (9) a brief explanation that:
29-25 (A) the governing body of each taxing unit
29-26 decides whether or not taxes on the property will increase and the
29-27 appraisal district only determines the value of the property; and
30-1 (B) a taxpayer who objects to increasing taxes
30-2 and government expenditures should complain to the governing bodies
30-3 of the taxing units and only complaints about value should be
30-4 presented to the appraisal office and the appraisal review board.
30-5 (i) By May 15 or as soon thereafter as practicable, the
30-6 chief appraiser shall deliver a written notice to the owner of each
30-7 property not included in a notice required to be delivered under
30-8 Subsection (a), if the property was reappraised in the current tax
30-9 year, if the ownership of the property changed during the preceding
30-10 year, or if the property owner or the agent of a property owner
30-11 authorized under Section 1.111 makes a written request for the
30-12 notice. The chief appraiser shall separate real from personal
30-13 property and include in the notice for each property:
30-14 (1) the appraised value of the property in the
30-15 preceding year;
30-16 (2) the appraised value of the property for the
30-17 current year and the kind of each partial exemption, if any,
30-18 approved for the current year;
30-19 (3) a detailed [brief] explanation of the time and
30-20 procedure for protesting the value; and
30-21 (4) the date and place the appraisal review board will
30-22 begin hearing protests.
30-23 (j) Delivery with a notice required by Subsection (a) or (i)
30-24 of a copy of the pamphlet published by the comptroller under
30-25 Section 5.06 is sufficient to comply with the requirement that the
30-26 notice include the information specified by Subsection (b)(7) or
30-27 (i)(3), as applicable.
31-1 SECTION 23. Section 26.10, Tax Code, is amended to read as
31-2 follows:
31-3 Sec. 26.10. Prorating Taxes--Loss of Exemption. (a) If the
31-4 appraisal roll shows that a property is eligible for taxation for
31-5 only part of a year because an exemption, other than a residence
31-6 homestead exemption, applicable on January 1 of that year
31-7 terminated during the year, the tax due against the property is
31-8 calculated by multiplying the tax due for the entire year as
31-9 determined as provided by Section 26.09 of this code by a fraction,
31-10 the denominator of which is 365 and the numerator of which is the
31-11 number of days the exemption is not applicable.
31-12 (b) If the appraisal roll shows that a property is eligible
31-13 for taxation at its full appraised value for only part of a year
31-14 because a residence homestead exemption for an individual 65 years
31-15 of age or older applicable on January 1 of that year terminated
31-16 during the year, the tax due against the property is calculated by:
31-17 (1) subtracting from:
31-18 (A) the amount of the taxes that otherwise would
31-19 be imposed on the residence homestead for the entire year had the
31-20 individual not qualified for the residence homestead exemption on
31-21 January 1;
31-22 (B) the amount of the taxes that otherwise would
31-23 be imposed on the residence homestead for the entire year had the
31-24 individual qualified for the residence homestead exemption for the
31-25 entire year;
31-26 (2) multiplying the remainder determined under
31-27 Subdivision (1) by a fraction, the denominator of which is 365 and
32-1 the numerator of which is the number of days that elapsed after the
32-2 date the exemption terminated; and
32-3 (3) adding the product determined under Subdivision
32-4 (2) and the amount described by Subdivision (1)(B).
32-5 SECTION 24. Chapter 26, Tax Code, is amended by adding
32-6 Section 26.112 to read as follows:
32-7 Sec. 26.112. PRORATING TAXES--QUALIFICATION BY ELDERLY
32-8 PERSON FOR 65 OR OVER RESIDENCE HOMESTEAD EXEMPTION. If an
32-9 individual qualifies for the exemption under Section 11.13(c) or
32-10 (d) for an individual 65 years of age or older after the beginning
32-11 of a tax year, the amount of the taxes due on the residence
32-12 homestead of the individual for the tax year is calculated by:
32-13 (1) subtracting:
32-14 (A) the amount of the taxes that otherwise would
32-15 be imposed on the residence homestead for the entire year had the
32-16 individual qualified for the residence homestead exemption on
32-17 January 1; from
32-18 (B) the amount of the taxes that otherwise would
32-19 be imposed on the residence homestead for the entire year had the
32-20 individual not qualified for the residence homestead exemption;
32-21 (2) multiplying the remainder determined under
32-22 Subdivision (1) by a fraction, the denominator of which is 365 and
32-23 the numerator of which is the number of days that elapsed prior to
32-24 the date that the individual qualified for the exemption; and
32-25 (3) adding the product determined under Subdivision
32-26 (2) and the amount described by Subdivision (1)(A).
32-27 SECTION 25. Section 33.01, Tax Code, is amended by adding
33-1 Subsections (d) and (e) to read as follows:
33-2 (d) In lieu of the penalty imposed under Subsection (a), a
33-3 delinquent tax incurs a penalty of 50 percent of the amount of the
33-4 tax without regard to the number of months the tax has been
33-5 delinquent if the tax is delinquent because the property owner
33-6 received an exemption under:
33-7 (1) Section 11.13 and the chief appraiser subsequently
33-8 cancels the exemption because the residence was not the principal
33-9 residence of the property owner and the property owner received an
33-10 exemption for two or more additional residence homesteads for the
33-11 tax year in which the tax was imposed;
33-12 (2) Section 11.13(c) or (d) for a person who is 65
33-13 years of age or older and the chief appraiser subsequently cancels
33-14 the exemption because the property owner was younger than 65 years
33-15 of age; or
33-16 (3) Section 11.13(g) and the chief appraiser
33-17 subsequently cancels the exemption because the property owner was
33-18 younger than 55 years of age when the property owner's spouse died.
33-19 (e) A penalty imposed under Subsection (d) does not apply
33-20 if, at any time before the date the tax becomes delinquent, the
33-21 property owner gives to the chief appraiser of the appraisal
33-22 district in which the property is located written notice of
33-23 circumstances that would disqualify the owner for the exemption.
33-24 SECTION 26. The heading to Section 33.06, Tax Code, is
33-25 amended to read as follows:
33-26 Sec. 33.06. DEFERRED COLLECTION OF [CERTAIN] TAXES ON
33-27 RESIDENCE HOMESTEAD OF ELDERLY PERSON.
34-1 SECTION 27. Subchapter A, Chapter 33, Tax Code, is amended
34-2 by adding Section 33.065 to read as follows:
34-3 Sec. 33.065. DEFERRED COLLECTION OF TAXES ON APPRECIATING
34-4 RESIDENCE HOMESTEAD. (a) An individual is entitled to defer or
34-5 abate a suit to collect a delinquent tax imposed on the portion of
34-6 the appraised value of property the individual owns and occupies as
34-7 the individual's residence homestead that exceeds the sum of:
34-8 (1) 105 percent of the appraised value of the property
34-9 for the preceding year; and
34-10 (2) the market value of all new improvements to the
34-11 property.
34-12 (b) An individual may not obtain a deferral or abatement
34-13 under this section, and any deferral or abatement previously
34-14 received expires, if the taxes on the portion of the appraised
34-15 value of the property that does not exceed the amount provided by
34-16 Subsection (a) are delinquent.
34-17 (c) To obtain a deferral, an individual must file with the
34-18 chief appraiser for the appraisal district in which the property is
34-19 located an affidavit stating the facts required to be established
34-20 by Subsection (a). The chief appraiser shall notify each taxing
34-21 unit participating in the district of the filing. After an
34-22 affidavit is filed under this subsection, a taxing unit may not
34-23 file suit to collect delinquent taxes on the property for which
34-24 collection is deferred until the individual no longer owns and
34-25 occupies the property as a residence homestead.
34-26 (d) To obtain an abatement, the individual must file in the
34-27 court in which the delinquent tax suit is pending an affidavit
35-1 stating the facts required to be established by Subsection (a). If
35-2 the taxing unit that filed the suit does not file a controverting
35-3 affidavit or if, after a hearing, the court finds the individual is
35-4 entitled to the deferral, the court shall abate the suit until the
35-5 individual no longer owns and occupies the property as the
35-6 individual's residence homestead.
35-7 (e) A deferral or abatement under this section applies only
35-8 to ad valorem taxes imposed beginning with the tax year following
35-9 the first tax year the individual entitled to the deferral or
35-10 abatement qualifies the property for an exemption under Section
35-11 11.13. For purposes of this subsection, the owner of a residence
35-12 homestead that is qualified for an exemption under Section 11.13 on
35-13 January 1, 1998, is considered to have qualified the property for
35-14 the first time in the 1997 tax year.
35-15 (f) A tax lien remains on the property and interest
35-16 continues to accrue during the period collection of delinquent
35-17 taxes is deferred as provided by this section. The annual interest
35-18 rate during the deferral period is eight percent instead of the
35-19 rate provided by Section 33.01. A penalty may not be imposed on
35-20 the delinquent taxes for which collection is deferred during a
35-21 deferral period. The additional penalty provided by Section 33.07
35-22 may be imposed only if the delinquent taxes for which collection is
35-23 deferred remain delinquent on or after the 91st day after the date
35-24 the deferral period expires. A plea of limitation, laches, or want
35-25 of prosecution does not apply against the taxing unit because of
35-26 deferral of collection as provided by this section.
35-27 (g) Each year the chief appraiser for each appraisal
36-1 district shall publicize in a manner reasonably designed to notify
36-2 all residents of the county for which the appraisal district is
36-3 established of the provisions of this section and, specifically,
36-4 the method by which an eligible person may obtain a deferral.
36-5 (h) In this section:
36-6 (1) "New improvement" means an improvement to a
36-7 residence homestead that is made after the appraisal of the
36-8 property for the preceding year and that increases the market value
36-9 of the property. The term does not include ordinary maintenance of
36-10 an existing structure or the grounds or another feature of the
36-11 property.
36-12 (2) "Residence homestead" has the meaning assigned
36-13 that term by Section 11.13.
36-14 SECTION 28. The heading to Chapter 41, Tax Code, is amended
36-15 to read as follows:
36-16 CHAPTER 41. ADMINISTRATIVE [LOCAL] REVIEW
36-17 SECTION 29. Section 41.12, Tax Code, is amended by adding
36-18 Subsection (c) to read as follows:
36-19 (c) A protest upon which a determination is pending under
36-20 Subchapter E is not considered to be an undetermined protest for
36-21 the purposes of Subsection (b).
36-22 SECTION 30. Section 41.43, Tax Code, is amended to read as
36-23 follows:
36-24 Sec. 41.43. PROTEST OF DETERMINATION OF VALUE OR INEQUALITY
36-25 OF APPRAISAL. (a) In a protest authorized by Section 41.41(1) or
36-26 (2), the appraisal district has the burden of establishing the
36-27 value of the property by a preponderance of the evidence presented
37-1 at the hearing. If the appraisal district fails to meet that
37-2 standard, the protest shall be determined in favor of the property
37-3 owner.
37-4 (b) A protest on the ground of unequal appraisal of property
37-5 shall be determined in favor of the protesting party unless [if]
37-6 the appraisal district [protesting party] establishes that the
37-7 appraisal ratio of the property is not greater than the median
37-8 level of appraisal of:
37-9 (1) a reasonable and representative sample of other
37-10 properties in the appraisal district; or
37-11 (2) a sample of properties in the appraisal district
37-12 consisting of a reasonable number of other properties similarly
37-13 situated to, or of the same general kind or character as, the
37-14 property subject to the protest.
37-15 (c) For purposes of this section, evidence includes the
37-16 data, schedules, formulas, or other information used to establish
37-17 the matter at issue.
37-18 SECTION 31. Section 41.46(a), Tax Code, is amended to read
37-19 as follows:
37-20 (a) The appraisal review board before which a protest
37-21 hearing is scheduled shall deliver written notice to the property
37-22 owner initiating a protest of the date, time, and place fixed for
37-23 the hearing on the protest unless the property owner waives in
37-24 writing notice of the hearing. The board shall deliver the notice
37-25 not later than the 15th day before the date of the hearing.
37-26 SECTION 32. Subchapter D, Chapter 41, Tax Code, is amended
37-27 by adding Section 41.71 to read as follows:
38-1 Sec. 41.71. EVENING AND WEEKEND HEARINGS. At the request of
38-2 a property owner, an appraisal review board shall schedule a
38-3 hearing on a protest in the evening or on a Saturday or Sunday.
38-4 SECTION 33. Chapter 41, Tax Code, is amended by adding
38-5 Subchapter E to read as follows:
38-6 SUBCHAPTER E. DETERMINATION OF PROTEST BY STATE
38-7 OFFICE OF ADMINISTRATIVE HEARINGS
38-8 Sec. 41.91. DEFINITION. In this subchapter, "office" means
38-9 the State Office of Administrative Hearings.
38-10 Sec. 41.92. RULES. The office shall adopt rules of practice
38-11 and procedure for protest proceedings under this subchapter.
38-12 Sec. 41.93. ELECTION OF REMEDIES. (a) A property owner is
38-13 entitled to have the office conduct a hearing and determine a
38-14 protest if:
38-15 (1) the property has an appraised value of at least $1
38-16 million as determined by the chief appraiser; and
38-17 (2) the property owner:
38-18 (A) files a notice of protest with the appraisal
38-19 review board under Section 41.44;
38-20 (B) is entitled to a hearing and determination
38-21 of a protest under that section;
38-22 (C) requests in the notice of protest that the
38-23 office conduct the hearing and determine the protest;
38-24 (D) states in the notice of protest the
38-25 appraised value of the property in the opinion of the property
38-26 owner; and
38-27 (E) pays a filing fee of $100 with the notice of
39-1 protest.
39-2 (b) A property owner who submits a request under this
39-3 section waives the right to a hearing and determination of the
39-4 protest by the appraisal review board.
39-5 (c) A property owner forfeits the right to a determination
39-6 by the office of a protest under this subchapter if the property
39-7 owner does not pay before the delinquency date each taxing unit the
39-8 amount of taxes the property owner would be required to pay under
39-9 Section 42.08 to preserve the right to judicial review of a
39-10 determination by the appraisal review board.
39-11 Sec. 41.94. FORWARDING OF NOTICE OF PROTEST AND FILING FEE
39-12 TO OFFICE. On receipt of a notice under Section 41.93 and the
39-13 required filing fee, the appraisal review board shall forward the
39-14 notice and the filing fee to the office.
39-15 Sec. 41.95. CONTESTED CASE. Except as otherwise provided by
39-16 this subchapter, the provisions of Chapter 2001, Government Code,
39-17 applicable to a contested case apply to the determination of a
39-18 protest under this subchapter.
39-19 Sec. 41.96. BURDEN OF PROOF. Section 41.43 applies to the
39-20 determination of a protest under this subchapter.
39-21 Sec. 41.97. HEARING ON AND DETERMINATION OF PROTEST. (a)
39-22 The administrative law judge to whom the protest is assigned shall
39-23 conduct a hearing on the protest.
39-24 (b) The hearing shall be held at:
39-25 (1) the appraisal office; or
39-26 (2) another location convenient to the property owner
39-27 and the chief appraiser.
40-1 (c) The administrative law judge shall issue a final order
40-2 determining the protest. The final order is binding on the parties
40-3 and the appraisal review board.
40-4 Sec. 41.98. NOTIFICATION OF DETERMINATION; CORRECTION OF
40-5 APPRAISAL RECORDS. (a) The office shall notify the property
40-6 owner, chief appraiser, and appraisal review board of the final
40-7 order determining the protest.
40-8 (b) The appraisal review board by written order shall
40-9 determine the protest in accordance with the final order and shall
40-10 correct the appraisal records as necessary to conform to the order.
40-11 Sec. 41.99. COSTS OF HEARING. The appraisal district shall
40-12 reimburse the office for the office's costs of conducting hearings
40-13 under this subchapter.
40-14 Sec. 41.100. SANCTIONS. The administrative law judge may
40-15 impose sanctions against a party or its representative as provided
40-16 by Sections 2003.047(i) and (j), Government Code, as added by
40-17 Chapter 765, Acts of the 74th Legislature, 1995.
40-18 Sec. 41.101. APPEAL. An order of the appraisal review board
40-19 determining a protest under this subchapter is considered to have
40-20 been issued under Subchapter C for purposes of appeal under Chapter
40-21 42, except that judicial review of the protest is under the
40-22 substantial evidence rule.
40-23 SECTION 34. Section 403.302(d), Government Code, is amended
40-24 to read as follows:
40-25 (d) For the purposes of this section, "taxable value" means
40-26 market value less:
40-27 (1) the total dollar amount of any exemptions of part
41-1 but not all of the value of taxable property required by the
41-2 constitution or a statute that a district lawfully granted in the
41-3 year that is the subject of the study;
41-4 (2) the total dollar amount of any exemptions granted
41-5 before May 31, 1993, within a reinvestment zone under agreements
41-6 authorized by Chapter 312, Tax Code;
41-7 (3) the total dollar amount of any captured appraised
41-8 value of property that is located in a reinvestment zone and that
41-9 is eligible for tax increment financing under Chapter 311, Tax
41-10 Code;
41-11 (4) the total dollar amount of any exemptions granted
41-12 under Section 11.251, Tax Code;
41-13 (5) the difference between the market value and the
41-14 productivity value of land that qualifies for appraisal on the
41-15 basis of its productive capacity, except that the productivity
41-16 value may not exceed the fair market value of the land;
41-17 (6) the portion of the appraised value of residence
41-18 homesteads of the elderly on which school district taxes are not
41-19 imposed in the year that is the subject of the study, calculated as
41-20 if the residence homesteads were appraised at the full value
41-21 required by law;
41-22 (7) a portion of the market value of property not
41-23 otherwise fully taxable by the district at market value because of
41-24 action required by statute or the constitution of this state that,
41-25 if the tax rate adopted by the district is applied to it, produces
41-26 an amount equal to the difference between the tax that the district
41-27 would have imposed on the property if the property were fully
42-1 taxable at market value and the tax that the district is actually
42-2 authorized to impose on the property; [and]
42-3 (8) the market value of all tangible personal
42-4 property, other than manufactured homes, owned by a family or
42-5 individual and not held or used for the production of income; and
42-6 (9) the amount by which the market value of a
42-7 residence homestead to which Section 23.21 or 23.22, Tax Code,
42-8 applies exceeds the appraised value of that property as calculated
42-9 under that section.
42-10 SECTION 35. Section 26.052, Tax Code, is repealed.
42-11 SECTION 36. (a) This Act takes effect January 1, 1998, but
42-12 only if the constitutional amendment proposed by H.J.R. No. 4,
42-13 Acts of the 75th Legislature, Regular Session, 1997, is not
42-14 approved by the voters and if S.J.R. No. 43, Acts of the 75th
42-15 Legislature, Regular Session, 1997, is approved by the voters. If
42-16 the constitutional amendment proposed by H.J.R. No. 4, Acts of the
42-17 75th Legislature, Regular Session, 1997, is approved by the voters
42-18 or if the constitutional amendment proposed by S.J.R. No. 43, Acts
42-19 of the 75th Legislature, Regular Session, 1997, is not approved by
42-20 the voters, this Act has no effect.
42-21 (b) This Act applies to each tax year that begins on or
42-22 after the effective date of this Act. The changes in law made by
42-23 this Act do not apply to ad valorem taxes imposed before the
42-24 effective date of this Act, and the law as it existed before the
42-25 effective date of this Act is continued in effect for those
42-26 purposes.
42-27 (c) The change in law made by this Act to Section 6.41, Tax
43-1 Code, relating to the qualifications of an appraisal review board
43-2 member applies only to the appointment of a member on or after the
43-3 effective date of this Act.
43-4 (d) The change in law made by this Act to Section 11.43, Tax
43-5 Code, applies only to an application for an exemption from ad
43-6 valorem taxation filed on or after the effective date of this Act.
43-7 An application for an exemption from ad valorem taxation filed
43-8 before the effective date of this Act is covered by the law in
43-9 effect on the date the application was filed, and that law is
43-10 continued in effect for that purpose.
43-11 (e) The change in law made by the addition by this Act of
43-12 Section 33.01(d), Tax Code, applies only to a penalty incurred on
43-13 ad valorem taxes that become delinquent on or after the effective
43-14 date of this Act. A penalty incurred on ad valorem taxes that
43-15 became delinquent before the effective date of this Act is covered
43-16 by the law in effect when the taxes became delinquent, and that law
43-17 is continued in effect for that purpose.
43-18 (f) Sections 28-33 of this Act apply only to a protest of a
43-19 property appraisal the notice of which is filed on or after the
43-20 effective date of this Act. A protest of a property appraisal the
43-21 notice of which is filed before the effective date of this Act is
43-22 covered by the law in effect when the notice of protest was filed,
43-23 and the former law is continued in effect for that purpose.
43-24 SECTION 37. The importance of this legislation and the
43-25 crowded condition of the calendars in both houses create an
43-26 emergency and an imperative public necessity that the
43-27 constitutional rule requiring bills to be read on three several
44-1 days in each house be suspended, and this rule is hereby suspended.