By: Wentworth S.B. No. 1866 A BILL TO BE ENTITLED AN ACT 1-1 relating to changes in the property tax calendar. 1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-3 SECTION 1. Subchapter A, Chapter 6, Tax Code, is amended by 1-4 adding Section 6.032 to read as follows: 1-5 Sec. 6.032. ALTERNATIVE TAX CALENDAR. (a) The taxing units 1-6 participating in an appraisal district may elect to adopt an 1-7 alternative tax calendar if the governing bodies of at least 1-8 three-fourths of the taxing units that are entitled to vote on the 1-9 appointment of the board of directors of the appraisal district 1-10 adopt a resolution, order, or ordinance providing for an 1-11 alternative tax calendar. 1-12 (b) An official copy of a resolution, order, or ordinance 1-13 providing for an alternative tax calendar adopted by the governing 1-14 body of a taxing unit must be filed with the chief appraiser of the 1-15 appraisal district before October 1 of the year before the 1-16 alternative tax calendar is effective. 1-17 (c) Before October 5 the chief appraiser shall determine 1-18 whether a sufficient number of taxing units have filed a valid 1-19 resolution, order, or ordinance proposing a change to the tax 1-20 calendar for the change to take effect. Before October 10 the 1-21 chief appraiser shall notify each taxing unit participating in the 1-22 district of a change that is adopted under this section. The 1-23 change to the tax calendar is effective January 1 of the year after 2-1 the chief appraiser determines that the change has been adopted. 2-2 (d) A change to the tax calendar made as provided by this 2-3 section may be rescinded by resolution of a majority of the 2-4 governing bodies that are entitled to vote on appointment of the 2-5 board of directors under Section 6.03. To be effective a 2-6 resolution providing for the rescission must be adopted by the 2-7 governing body and filed with the chief appraiser before October 1 2-8 of the year before the rescission is to take effect. The chief 2-9 appraiser by October 10 shall notify all taxing units participating 2-10 in the district that the rescission will become effective 2-11 January 1. 2-12 SECTION 2. Section 11.13, Tax Code, is amended by adding 2-13 Subsection (n-1) to read as follows: 2-14 (n-1) This subsection applies to a taxing entity that has 2-15 adopted the alternative tax calendar under Section 6.032. In 2-16 addition to any other exemptions provided by this section, an 2-17 individual is entitled to an exemption from taxation by a taxing 2-18 unit other than a county education district of a percentage of the 2-19 appraised value of his residence homestead if the exemption is 2-20 adopted by the governing body of the taxing unit before April 1 in 2-21 the manner provided by law for official action by the body. If the 2-22 percentage set by the taxing unit produces an exemption in a tax 2-23 year of less than $5,000 when applied to a particular residence 2-24 homestead, the individual is entitled to an exemption of $5,000 of 2-25 the appraised value. The percentage adopted by the taxing unit 3-1 shall not exceed 20 percent. In addition to any other exemptions 3-2 provided by this section, an individual is entitled to an exemption 3-3 from taxation by a county education district of a percentage of the 3-4 appraised value of his residence homestead if the exemption is 3-5 adopted by the voters of the district at an election held in the 3-6 district for that purpose under Section 20.946, Education Code. If 3-7 the percentage set by the voters produces an exemption in a tax 3-8 year of less than $5,000 when applied to a particular residence 3-9 homestead, the individual is entitled to an exemption of $5,000 of 3-10 the appraised value. The percentage adopted by the voters may not 3-11 exceed 20 percent. 3-12 SECTION 3. Section 11.43, Tax Code, is amended by adding 3-13 Subsections (d-1) and (g-1) to read as follows: 3-14 (d-1) This subsection applies to a taxing entity that has 3-15 adopted the alternative tax calendar under Section 6.032 of this 3-16 code. A person required to claim an exemption must file a 3-17 completed exemption application form before April 1 and must 3-18 furnish the information required by the form. For good cause shown 3-19 the chief appraiser may extend the deadline for filing an exemption 3-20 application by written order for a single period not to exceed 60 3-21 days. 3-22 (g-1) This subsection applies to a taxing entity that has 3-23 adopted the alternative tax calendar under Section 6.032 of this 3-24 code. A person who receives an exemption that is not required to 3-25 be claimed annually shall notify the appraisal office in writing 4-1 before April 1 after his entitlement to the exemption ends. 4-2 SECTION 4. Section 22.23, Tax Code, is amended by adding 4-3 Subsections (a-1) and (b-1) to read as follows: 4-4 (a-1) This subsection applies to a taxing entity that has 4-5 adopted the alternative tax calendar under Section 6.032 of this 4-6 code. Rendition statements and property reports must be delivered 4-7 to the chief appraiser after January 1 and before March 15, except 4-8 as provided by Section 22.02 of this code. 4-9 (b-1) This subsection applies to a taxing entity that has 4-10 adopted the alternative tax calendar under Section 6.032 of this 4-11 code. For good cause shown in writing by the property owner, the 4-12 chief appraiser may extend a deadline for filing a rendition 4-13 statement or property report by written order to a date not later 4-14 than March 30. However, if the property that is the subject of the 4-15 rendition is regulated by the Public Utility Commission of Texas or 4-16 the Railroad Commission of Texas, the chief appraiser, on written 4-17 request by the property owner, may further extend the deadline an 4-18 additional 15 days on good cause shown in writing by the property 4-19 owner. 4-20 SECTION 5. Section 23.20, Tax Code, is amended by adding 4-21 Subsection (c-1) to read as follows: 4-22 (c-1) This subsection applies to a taxing entity that has 4-23 adopted the alternative tax calendar under Section 6.032 of this 4-24 code. A waiver under this section is effective for 25 consecutive 4-25 tax years beginning on the first tax year in which the waiver is 5-1 effective without regard to whether the property is subject to 5-2 appraisal under Subchapter C, D, E, F, or G of this chapter. To be 5-3 effective in the year in which the waiver is executed, it must be 5-4 filed before April 1 of that year with the chief appraiser of the 5-5 appraisal district in which the property is located, unless for 5-6 good cause shown the chief appraiser extends the filing deadline 5-7 for not more than 60 days. An application filed after the year's 5-8 deadline takes effect in the next tax year. 5-9 SECTION 6. Section 23.43, Tax Code, is amended by adding 5-10 Subsection (b-1) to read as follows: 5-11 (b-1) This subsection applies to a taxing entity that has 5-12 adopted the alternative tax calendar under Section 6.032. A 5-13 claimant must deliver a completed application form to the chief 5-14 appraiser before April 1 and must furnish the information required 5-15 by the form. For good cause shown the chief appraiser may extend 5-16 the deadline for filing the application by written order for a 5-17 single period not to exceed 60 days. 5-18 SECTION 7. Section 23.54, Tax Code, is amended by adding 5-19 Subsection (d-1) to read as follows: 5-20 (d-1) This subsection applies to a taxing entity that has 5-21 adopted the alternative tax calendar under Section 6.032 of this 5-22 code. The form must be filed before April 1. However, for good 5-23 cause the chief appraiser may extend the filing deadline for not 5-24 more than 60 days. 5-25 SECTION 8. Section 23.75, Tax Code, is amended by adding 6-1 Subsection (d-1) to read as follows: 6-2 (d-1) This subsection applies to a taxing entity that has 6-3 adopted the alternative tax calendar under Section 6.032 of this 6-4 code. The form must be filed before April 1. However, for good 6-5 cause the chief appraiser may extend the filing deadline for not 6-6 more than 60 days. 6-7 SECTION 9. Section 23.84, Tax Code, is amended by adding 6-8 Subsections (b-1) and (d-1) to read as follows: 6-9 (b-1) This subsection applies to a taxing entity that has 6-10 adopted the alternative tax calendar under Section 6.032 of this 6-11 code. A claimant must deliver a completed application form to the 6-12 chief appraiser before April 1 and must furnish the information 6-13 required by the form. For good cause shown the chief appraiser may 6-14 extend the deadline for filing the application by written order for 6-15 a single period not to exceed 60 days. 6-16 (d-1) This subsection applies to a taxing entity that has 6-17 adopted the alternative tax calendar under Section 6.032 of this 6-18 code. A person whose land is allowed appraisal under this 6-19 subchapter shall notify the appraisal office in writing before 6-20 April 1 after eligibility of the land under this subchapter ends. 6-21 SECTION 10. Section 23.94, Tax Code, is amended by adding 6-22 Subsections (b-1) and (d-1) to read as follows: 6-23 (b-1) This subsection applies to a taxing entity that has 6-24 adopted the alternative tax calendar under Section 6.032 of this 6-25 code. A claimant must deliver a completed application form to the 7-1 chief appraiser before April 1 and must furnish the information 7-2 required by the form. For good cause shown the chief appraiser may 7-3 extend the deadline for filing the application by written order for 7-4 a single period not to exceed 60 days. 7-5 (d-1) This subsection applies to a taxing entity that has 7-6 adopted the alternative tax calendar under Section 6.032 of this 7-7 code. A person whose property is allowed appraisal under this 7-8 subchapter shall notify the appraisal office in writing before 7-9 April 1 after eligibility of the property under this subchapter 7-10 ends. 7-11 SECTION 11. Section 24.32, Tax Code, is amended by adding 7-12 Subsection (e-1) to read as follows: 7-13 (e-1) This subsection applies to a taxing entity that has 7-14 adopted the alternative tax calendar under Section 6.032 of this 7-15 code. A report must be filed before April 1. For good cause shown 7-16 the chief appraiser may extend the filing deadline by written order 7-17 for a single period not to exceed 15 days. 7-18 SECTION 12. Section 24.35, Tax Code, is amended by adding 7-19 Subsection (b-1) to read as follows: 7-20 (b-1) This subsection applies to a taxing entity that has 7-21 adopted the alternative tax calendar under Section 6.032 of this 7-22 code. Review and protests of appraisals of railroad rolling stock 7-23 must be completed by June 25 or as soon thereafter as practicable 7-24 and for that reason shall be given priority. 7-25 SECTION 13. Section 25.08, Tax Code, is amended by adding 8-1 Subsection (c-1) to read as follows: 8-2 (c-1) This subsection applies to a taxing entity that has 8-3 adopted the alternative tax calendar under Section 6.032 of this 8-4 code. When a person other than the owner of an improvement owns 8-5 the land on which the improvement is located, the land and the 8-6 improvement shall be listed separately in the name of the owner of 8-7 each if either owner files with the chief appraiser before April 1 8-8 a written request for separate taxation on a form furnished for 8-9 that purpose together with proof of separate ownership. After an 8-10 improvement qualifies for taxation separate from land, the 8-11 qualification remains effective in subsequent tax years and need 8-12 not be requested again. However, the qualification ceases when 8-13 ownership of the land or the improvement is transferred or either 8-14 owner files a request to cancel the separate taxation. 8-15 SECTION 14. Section 25.09, Tax Code, is amended by adding 8-16 Subsection (b-1) to read as follows: 8-17 (b-1) This subsection applies to a taxing entity that has 8-18 adopted the alternative tax calendar under Section 6.032 of this 8-19 code. Property owned by a planned unit development association may 8-20 be listed and taxes imposed proportionately against each member of 8-21 the association if the association files with the chief appraiser 8-22 before April 1 a resolution adopted by vote of a majority of all 8-23 members of the association authorizing the proportionate imposition 8-24 of taxes. A resolution adopted as provided by this subsection 8-25 remains effective in subsequent tax years unless it is revoked by a 9-1 similar resolution. 9-2 SECTION 15. Section 25.10, Tax Code, is amended by adding 9-3 Subsection (c-1) to read as follows: 9-4 (c-1) This subsection applies to a taxing entity that has 9-5 adopted the alternative tax calendar under Section 6.032 of this 9-6 code. When a person other than the owner of standing timber owns 9-7 the land on which the timber is located, the land and the timber 9-8 shall be listed separately in the name of the owner of each if 9-9 either owner files with the chief appraiser before April 1 a 9-10 written request for separate taxation on a form furnished for that 9-11 purpose together with proof of separate ownership. A qualification 9-12 for separate taxation of timber expires at the end of the tax year. 9-13 SECTION 16. Section 25.11, Tax Code, is amended by adding 9-14 Subsection (b-1) to read as follows: 9-15 (b-1) This subsection applies to a taxing entity that has 9-16 adopted the alternative tax calendar under Section 6.032 of this 9-17 code. An undivided interest in a property shall be listed 9-18 separately from other undivided interests in the property in the 9-19 name of its owner if the interest is described in a duly executed 9-20 and recorded instrument of title and the owner files with the 9-21 appraisal office before April 1 a written request for separate 9-22 taxation on a form furnished for that purpose together with proof 9-23 of ownership and of the proportion his interest bears to the whole. 9-24 After an undivided interest qualifies for separate taxation, the 9-25 qualification remains effective in subsequent tax years and need 10-1 not be requested again. However, the qualification ceases when 10-2 ownership is transferred or when any owner files a request to 10-3 cancel separate taxation. 10-4 SECTION 17. Section 25.12, Tax Code, is amended by adding 10-5 Subsection (b-1) to read as follows: 10-6 (b-1) This subsection applies to a taxing entity that has 10-7 adopted the alternative tax calendar under Section 6.032. Separate 10-8 interests in minerals in place shall be listed jointly in the name 10-9 of the operator designated with the railroad commission or the name 10-10 of all owners or any combination of owners if the designated 10-11 operator files with the appraisal office before April 1 a written 10-12 request for joint taxation on a form furnished for that purpose. A 10-13 qualification pursuant to this subsection for joint taxation 10-14 remains effective in subsequent tax years and need not be requested 10-15 again. However, the qualification ceases when the designated 10-16 operator files a request to cancel joint taxation. 10-17 SECTION 18. Section 25.12, Tax Code, is amended by adding 10-18 Subsection (c-1) to read as follows: 10-19 (c-1) This subsection applies to a taxing entity that has 10-20 adopted the alternative tax calendar under Section 6.032. If a 10-21 written request for joint taxation has been filed under Subsection 10-22 (b), the notice of appraised value provided for by Section 25.19 10-23 for the owners included in the request for joint taxation shall be 10-24 delivered to the operator, owner, or owners of the mineral interest 10-25 in whose name the mineral interest is designated for joint 11-1 taxation. The chief appraiser is not required to deliver a 11-2 separate notice of appraised value to each owner included in the 11-3 request for joint taxation. However, the chief appraiser shall 11-4 deliver a separate notice of appraised value to an owner of an 11-5 interest in the property who before April 1 files a written request 11-6 to receive a separate notice of appraised value with the chief 11-7 appraiser on a form provided by the appraisal district for that 11-8 purpose. The request is effective for each subsequent year until 11-9 revoked by the owner or until the owner no longer owns an interest 11-10 in the property. 11-11 SECTION 19. Section 25.22, Tax Code, is amended by adding 11-12 Subsection (a-1) to read as follows: 11-13 (a-1) This subsection applies to a taxing entity that has 11-14 adopted the alternative tax calendar under Section 6.032. By 11-15 April 1 or as soon thereafter as practicable, the chief appraiser 11-16 shall submit the completed appraisal records to the appraisal 11-17 review board for review and determination of protests. However, 11-18 the chief appraiser may not submit the records until the chief 11-19 appraiser has delivered the notices required by Subsection (d) of 11-20 Section 11.45, Subsection (d) of Section 23.44, Subsection (d) of 11-21 Section 23.57, Subsection (d) of Section 23.79, Subsection (d) of 11-22 Section 23.85, Subsection (d) of Section 23.95, and Section 25.19. 11-23 SECTION 20. Section 26.01, Tax Code, is amended by adding 11-24 Subsection (a-1) to read as follows: 11-25 (a-1) This subsection applies to a taxing entity that has 12-1 adopted the alternative tax calendar under Section 6.032 of this 12-2 code. By July 1 the chief appraiser shall prepare and certify to 12-3 the assessor for each taxing unit participating in the district 12-4 that part of the appraisal roll for the district that lists the 12-5 property taxable by the unit. The part certified to the assessor 12-6 is the appraisal roll for the unit. The chief appraiser shall 12-7 consult with the assessor for each taxing unit and notify each unit 12-8 in writing by April 1 of the form in which the roll will be 12-9 provided to each unit. 12-10 SECTION 21. Section 26.12, Tax Code, is amended by adding 12-11 Subsections (a-1), (b-1), (d-1), and (e-1) to read as follows: 12-12 (a-1) This subsection applies to a taxing entity that has 12-13 adopted the alternative tax calendar under Section 6.032 of this 12-14 code. If a taxing unit is created after January 1 and before 12-15 June 1, the chief appraiser shall prepare and deliver an appraisal 12-16 roll for the unit as provided by Section 26.01 of this code as if 12-17 the unit had existed on January 1. 12-18 (b-1) This subsection applies to a taxing entity that has 12-19 adopted the alternative tax calendar under Section 6.032 of this 12-20 code. If the taxing unit created after January 1 and before June 1 12-21 imposes taxes for the year, it shall do so as provided by this 12-22 chapter as if it had existed on January 1. 12-23 (d-1) This subsection applies to a taxing entity that has 12-24 adopted the alternative tax calendar under Section 6.032 of this 12-25 code. Except as provided by Subsection (e-1), a taxing unit 13-1 created after May 31 may not impose property taxes in the year in 13-2 which the unit is created. 13-3 (e-1) This subsection applies to a taxing entity that has 13-4 adopted the alternative tax calendar under Section 6.032 of this 13-5 code. A county education district created after May 31 shall 13-6 impose property taxes in the year in which the district is created. 13-7 SECTION 22. Subchapter A, Chapter 41, Tax Code, is amended 13-8 by adding Section 41.041 to read as follows: 13-9 Sec. 41.041. CHALLENGE PETITION FOR ENTITIES ADOPTING 13-10 ALTERNATIVE TAX CALENDAR. This section applies to a taxing entity 13-11 that has adopted the alternative tax calendar under Section 6.032. 13-12 The appraisal review board is not required to hear or determine a 13-13 challenge unless the taxing unit initiating the challenge files a 13-14 petition with the board before April 15 or within 15 days after the 13-15 date that the appraisal records are submitted to the appraisal 13-16 review board, whichever is later. The petition must include an 13-17 explanation of the grounds for the challenge. 13-18 SECTION 23. Section 41.12, Tax Code, is amended by adding 13-19 Subsection (a-1) to read as follows: 13-20 (a-1) This subsection applies to a taxing entity that has 13-21 adopted the alternative tax calendar under Section 6.032. By June 13-22 25, the appraisal review board shall: 13-23 (1) hear and determine all or substantially all timely 13-24 filed protests; 13-25 (2) determine all timely filed challenges; 14-1 (3) submit a list of its approved changes in the 14-2 records to the chief appraiser; and 14-3 (4) approve the records. 14-4 SECTION 24. Section 41.44, Tax Code, is amended by adding 14-5 Subsection (a-1) to read as follows: 14-6 (a-1) This subsection applies to a taxing entity that has 14-7 adopted the alternative tax calendar under Section 6.032. Except 14-8 as provided by Subsections (b) and (c), to be entitled to a hearing 14-9 and determination of a protest, the property owner initiating the 14-10 protest must file a written notice of the protest with the 14-11 appraisal review board having authority to hear the matter 14-12 protested: 14-13 (1) before April 15 or not later than the 30th day 14-14 after the date that notice was delivered to the property owner as 14-15 provided by Section 25.19, whichever is later; 14-16 (2) in the case of a protest of a change in the 14-17 appraisal records ordered as provided by Subchapter A of this 14-18 chapter or by Chapter 25, not later than the 30th day after the 14-19 date notice of the change is delivered to the property owner; or 14-20 (3) in the case of a determination that a change in 14-21 the use of land appraised under Subchapter C, D, or E, Chapter 23, 14-22 has occurred, not later than the 30th day after the date the notice 14-23 of the determination is delivered to the property owner. 14-24 SECTION 25. Section 41.70, Tax Code, is amended by adding 14-25 Subsection (a-1) to read as follows: 15-1 (a-1) This subsection applies to a taxing entity that has 15-2 adopted the alternative tax calendar under Section 6.032. On or 15-3 after April 1 but not later than April 15, the chief appraiser 15-4 shall publish notice of the manner in which a protest under this 15-5 chapter may be brought by a property owner. The notice must 15-6 describe how to initiate a protest and must describe the deadlines 15-7 for filing a protest. The notice must also describe the manner in 15-8 which an order of the appraisal review board may be appealed. The 15-9 comptroller by rule shall adopt minimum standards for the form and 15-10 content of the notice required by this section. 15-11 SECTION 26. The importance of this legislation and the 15-12 crowded condition of the calendars in both houses create an 15-13 emergency and an imperative public necessity that the 15-14 constitutional rule requiring bills to be read on three several 15-15 days in each house be suspended, and this rule is hereby suspended.