1-1 By: Wentworth S.B. No. 1866 1-2 (In the Senate - Filed March 14, 1997; March 24, 1997, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; May 16, 1997, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 11, Nays 0; 1-6 May 16, 1997, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1866 By: Madla 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to changes in the property tax calendar. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter A, Chapter 6, Tax Code, is amended by 1-13 adding Section 6.032 to read as follows: 1-14 Sec. 6.032. ALTERNATIVE TAX CALENDAR. (a) The taxing units 1-15 participating in an appraisal district may elect to adopt an 1-16 alternative tax calendar if the governing bodies of at least 1-17 three-fourths of the taxing units that are entitled to vote on the 1-18 appointment of the board of directors of the appraisal district 1-19 adopt a resolution, order, or ordinance providing for an 1-20 alternative tax calendar. 1-21 (b) An official copy of a resolution, order, or ordinance 1-22 providing for an alternative tax calendar adopted by the governing 1-23 body of a taxing unit must be filed with the chief appraiser of the 1-24 appraisal district before October 1 of the year before the 1-25 alternative tax calendar is effective. 1-26 (c) Before October 5 the chief appraiser shall determine 1-27 whether a sufficient number of taxing units have filed a valid 1-28 resolution, order, or ordinance proposing a change to the tax 1-29 calendar for the change to take effect. Before October 10 the 1-30 chief appraiser shall notify each taxing unit participating in the 1-31 district of a change that is adopted under this section. The 1-32 change to the tax calendar is effective January 1 of the year after 1-33 the chief appraiser determines that the change has been adopted. 1-34 (d) A change to the tax calendar made as provided by this 1-35 section may be rescinded by resolution of a majority of the 1-36 governing bodies that are entitled to vote on appointment of the 1-37 board of directors under Section 6.03. To be effective a 1-38 resolution providing for the rescission must be adopted by the 1-39 governing body and filed with the chief appraiser before October 1 1-40 of the year before the rescission is to take effect. The chief 1-41 appraiser by October 10 shall notify all taxing units participating 1-42 in the district that the rescission will become effective 1-43 January 1. 1-44 SECTION 2. Section 11.13, Tax Code, is amended by adding 1-45 Subsection (n-1) to read as follows: 1-46 (n-1) This subsection applies to a taxing entity that has 1-47 adopted the alternative tax calendar under Section 6.032. In 1-48 addition to any other exemptions provided by this section, an 1-49 individual is entitled to an exemption from taxation by a taxing 1-50 unit other than a county education district of a percentage of the 1-51 appraised value of his residence homestead if the exemption is 1-52 adopted by the governing body of the taxing unit before April 1 in 1-53 the manner provided by law for official action by the body. If the 1-54 percentage set by the taxing unit produces an exemption in a tax 1-55 year of less than $5,000 when applied to a particular residence 1-56 homestead, the individual is entitled to an exemption of $5,000 of 1-57 the appraised value. The percentage adopted by the taxing unit 1-58 shall not exceed 20 percent. In addition to any other exemptions 1-59 provided by this section, an individual is entitled to an exemption 1-60 from taxation by a county education district of a percentage of the 1-61 appraised value of his residence homestead if the exemption is 1-62 adopted by the voters of the district at an election held in the 1-63 district for that purpose under Section 20.946, Education Code. If 1-64 the percentage set by the voters produces an exemption in a tax 2-1 year of less than $5,000 when applied to a particular residence 2-2 homestead, the individual is entitled to an exemption of $5,000 of 2-3 the appraised value. The percentage adopted by the voters may not 2-4 exceed 20 percent. 2-5 SECTION 3. Section 11.43, Tax Code, is amended by adding 2-6 Subsections (d-1) and (g-1) to read as follows: 2-7 (d-1) This subsection applies to a taxing entity that has 2-8 adopted the alternative tax calendar under Section 6.032 of this 2-9 code. A person required to claim an exemption must file a 2-10 completed exemption application form before April 1 and must 2-11 furnish the information required by the form. For good cause shown 2-12 the chief appraiser may extend the deadline for filing an exemption 2-13 application by written order for a single period not to exceed 60 2-14 days. 2-15 (g-1) This subsection applies to a taxing entity that has 2-16 adopted the alternative tax calendar under Section 6.032 of this 2-17 code. A person who receives an exemption that is not required to 2-18 be claimed annually shall notify the appraisal office in writing 2-19 before April 1 after his entitlement to the exemption ends. 2-20 SECTION 4. Section 22.23, Tax Code, is amended by adding 2-21 Subsections (a-1) and (b-1) to read as follows: 2-22 (a-1) This subsection applies to a taxing entity that has 2-23 adopted the alternative tax calendar under Section 6.032 of this 2-24 code. Rendition statements and property reports must be delivered 2-25 to the chief appraiser after January 1 and before March 15, except 2-26 as provided by Section 22.02 of this code. 2-27 (b-1) This subsection applies to a taxing entity that has 2-28 adopted the alternative tax calendar under Section 6.032 of this 2-29 code. For good cause shown in writing by the property owner, the 2-30 chief appraiser may extend a deadline for filing a rendition 2-31 statement or property report by written order to a date not later 2-32 than March 30. However, if the property that is the subject of the 2-33 rendition is regulated by the Public Utility Commission of Texas or 2-34 the Railroad Commission of Texas, the chief appraiser, on written 2-35 request by the property owner, may further extend the deadline an 2-36 additional 15 days on good cause shown in writing by the property 2-37 owner. 2-38 SECTION 5. Section 23.20, Tax Code, is amended by adding 2-39 Subsection (c-1) to read as follows: 2-40 (c-1) This subsection applies to a taxing entity that has 2-41 adopted the alternative tax calendar under Section 6.032 of this 2-42 code. A waiver under this section is effective for 25 consecutive 2-43 tax years beginning on the first tax year in which the waiver is 2-44 effective without regard to whether the property is subject to 2-45 appraisal under Subchapter C, D, E, F, or G of this chapter. To be 2-46 effective in the year in which the waiver is executed, it must be 2-47 filed before April 1 of that year with the chief appraiser of the 2-48 appraisal district in which the property is located, unless for 2-49 good cause shown the chief appraiser extends the filing deadline 2-50 for not more than 60 days. An application filed after the year's 2-51 deadline takes effect in the next tax year. 2-52 SECTION 6. Section 23.43, Tax Code, is amended by adding 2-53 Subsection (b-1) to read as follows: 2-54 (b-1) This subsection applies to a taxing entity that has 2-55 adopted the alternative tax calendar under Section 6.032. A 2-56 claimant must deliver a completed application form to the chief 2-57 appraiser before April 1 and must furnish the information required 2-58 by the form. For good cause shown the chief appraiser may extend 2-59 the deadline for filing the application by written order for a 2-60 single period not to exceed 60 days. 2-61 SECTION 7. Section 23.54, Tax Code, is amended by adding 2-62 Subsection (d-1) to read as follows: 2-63 (d-1) This subsection applies to a taxing entity that has 2-64 adopted the alternative tax calendar under Section 6.032 of this 2-65 code. The form must be filed before April 1. However, for good 2-66 cause the chief appraiser may extend the filing deadline for not 2-67 more than 60 days. 2-68 SECTION 8. Section 23.75, Tax Code, is amended by adding 2-69 Subsection (d-1) to read as follows: 3-1 (d-1) This subsection applies to a taxing entity that has 3-2 adopted the alternative tax calendar under Section 6.032 of this 3-3 code. The form must be filed before April 1. However, for good 3-4 cause the chief appraiser may extend the filing deadline for not 3-5 more than 60 days. 3-6 SECTION 9. Section 23.84, Tax Code, is amended by adding 3-7 Subsections (b-1) and (d-1) to read as follows: 3-8 (b-1) This subsection applies to a taxing entity that has 3-9 adopted the alternative tax calendar under Section 6.032 of this 3-10 code. A claimant must deliver a completed application form to the 3-11 chief appraiser before April 1 and must furnish the information 3-12 required by the form. For good cause shown the chief appraiser may 3-13 extend the deadline for filing the application by written order for 3-14 a single period not to exceed 60 days. 3-15 (d-1) This subsection applies to a taxing entity that has 3-16 adopted the alternative tax calendar under Section 6.032 of this 3-17 code. A person whose land is allowed appraisal under this 3-18 subchapter shall notify the appraisal office in writing before 3-19 April 1 after eligibility of the land under this subchapter ends. 3-20 SECTION 10. Section 23.94, Tax Code, is amended by adding 3-21 Subsections (b-1) and (d-1) to read as follows: 3-22 (b-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 claimant must deliver a completed application form to the 3-25 chief appraiser before April 1 and must furnish the information 3-26 required by the form. For good cause shown the chief appraiser may 3-27 extend the deadline for filing the application by written order for 3-28 a single period not to exceed 60 days. 3-29 (d-1) This subsection applies to a taxing entity that has 3-30 adopted the alternative tax calendar under Section 6.032 of this 3-31 code. A person whose property is allowed appraisal under this 3-32 subchapter shall notify the appraisal office in writing before 3-33 April 1 after eligibility of the property under this subchapter 3-34 ends. 3-35 SECTION 11. Section 24.32, Tax Code, is amended by adding 3-36 Subsection (e-1) to read as follows: 3-37 (e-1) This subsection applies to a taxing entity that has 3-38 adopted the alternative tax calendar under Section 6.032 of this 3-39 code. A report must be filed before April 1. For good cause shown 3-40 the chief appraiser may extend the filing deadline by written order 3-41 for a single period not to exceed 15 days. 3-42 SECTION 12. Section 24.35, Tax Code, is amended by adding 3-43 Subsection (b-1) to read as follows: 3-44 (b-1) This subsection applies to a taxing entity that has 3-45 adopted the alternative tax calendar under Section 6.032 of this 3-46 code. Review and protests of appraisals of railroad rolling stock 3-47 must be completed by June 25 or as soon thereafter as practicable 3-48 and for that reason shall be given priority. 3-49 SECTION 13. Section 25.08, Tax Code, is amended by adding 3-50 Subsection (c-1) to read as follows: 3-51 (c-1) This subsection applies to a taxing entity that has 3-52 adopted the alternative tax calendar under Section 6.032 of this 3-53 code. When a person other than the owner of an improvement owns 3-54 the land on which the improvement is located, the land and the 3-55 improvement shall be listed separately in the name of the owner of 3-56 each if either owner files with the chief appraiser before April 1 3-57 a written request for separate taxation on a form furnished for 3-58 that purpose together with proof of separate ownership. After an 3-59 improvement qualifies for taxation separate from land, the 3-60 qualification remains effective in subsequent tax years and need 3-61 not be requested again. However, the qualification ceases when 3-62 ownership of the land or the improvement is transferred or either 3-63 owner files a request to cancel the separate taxation. 3-64 SECTION 14. Section 25.09, Tax Code, is amended by adding 3-65 Subsection (b-1) to read as follows: 3-66 (b-1) This subsection applies to a taxing entity that has 3-67 adopted the alternative tax calendar under Section 6.032 of this 3-68 code. Property owned by a planned unit development association may 3-69 be listed and taxes imposed proportionately against each member of 4-1 the association if the association files with the chief appraiser 4-2 before April 1 a resolution adopted by vote of a majority of all 4-3 members of the association authorizing the proportionate imposition 4-4 of taxes. A resolution adopted as provided by this subsection 4-5 remains effective in subsequent tax years unless it is revoked by a 4-6 similar resolution. 4-7 SECTION 15. Section 25.10, Tax Code, is amended by adding 4-8 Subsection (c-1) to read as follows: 4-9 (c-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. When a person other than the owner of standing timber owns 4-12 the land on which the timber is located, the land and the timber 4-13 shall be listed separately in the name of the owner of each if 4-14 either owner files with the chief appraiser before April 1 a 4-15 written request for separate taxation on a form furnished for that 4-16 purpose together with proof of separate ownership. A qualification 4-17 for separate taxation of timber expires at the end of the tax year. 4-18 SECTION 16. Section 25.11, Tax Code, is amended by adding 4-19 Subsection (b-1) to read as follows: 4-20 (b-1) This subsection applies to a taxing entity that has 4-21 adopted the alternative tax calendar under Section 6.032 of this 4-22 code. An undivided interest in a property shall be listed 4-23 separately from other undivided interests in the property in the 4-24 name of its owner if the interest is described in a duly executed 4-25 and recorded instrument of title and the owner files with the 4-26 appraisal office before April 1 a written request for separate 4-27 taxation on a form furnished for that purpose together with proof 4-28 of ownership and of the proportion his interest bears to the whole. 4-29 After an undivided interest qualifies for separate taxation, the 4-30 qualification remains effective in subsequent tax years and need 4-31 not be requested again. However, the qualification ceases when 4-32 ownership is transferred or when any owner files a request to 4-33 cancel separate taxation. 4-34 SECTION 17. Section 25.12, Tax Code, is amended by adding 4-35 Subsection (b-1) to read as follows: 4-36 (b-1) This subsection applies to a taxing entity that has 4-37 adopted the alternative tax calendar under Section 6.032. Separate 4-38 interests in minerals in place shall be listed jointly in the name 4-39 of the operator designated with the railroad commission or the name 4-40 of all owners or any combination of owners if the designated 4-41 operator files with the appraisal office before April 1 a written 4-42 request for joint taxation on a form furnished for that purpose. A 4-43 qualification pursuant to this subsection for joint taxation 4-44 remains effective in subsequent tax years and need not be requested 4-45 again. However, the qualification ceases when the designated 4-46 operator files a request to cancel joint taxation. 4-47 SECTION 18. Section 25.12, Tax Code, is amended by adding 4-48 Subsection (c-1) to read as follows: 4-49 (c-1) This subsection applies to a taxing entity that has 4-50 adopted the alternative tax calendar under Section 6.032. If a 4-51 written request for joint taxation has been filed under Subsection 4-52 (b), the notice of appraised value provided for by Section 25.19 4-53 for the owners included in the request for joint taxation shall be 4-54 delivered to the operator, owner, or owners of the mineral interest 4-55 in whose name the mineral interest is designated for joint 4-56 taxation. The chief appraiser is not required to deliver a 4-57 separate notice of appraised value to each owner included in the 4-58 request for joint taxation. However, the chief appraiser shall 4-59 deliver a separate notice of appraised value to an owner of an 4-60 interest in the property who before April 1 files a written request 4-61 to receive a separate notice of appraised value with the chief 4-62 appraiser on a form provided by the appraisal district for that 4-63 purpose. The request is effective for each subsequent year until 4-64 revoked by the owner or until the owner no longer owns an interest 4-65 in the property. 4-66 SECTION 19. Section 25.22, Tax Code, is amended by adding 4-67 Subsection (a-1) to read as follows: 4-68 (a-1) This subsection applies to a taxing entity that has 4-69 adopted the alternative tax calendar under Section 6.032. By 5-1 April 1 or as soon thereafter as practicable, the chief appraiser 5-2 shall submit the completed appraisal records to the appraisal 5-3 review board for review and determination of protests. However, 5-4 the chief appraiser may not submit the records until the chief 5-5 appraiser has delivered the notices required by Subsection (d) of 5-6 Section 11.45, Subsection (d) of Section 23.44, Subsection (d) of 5-7 Section 23.57, Subsection (d) of Section 23.79, Subsection (d) of 5-8 Section 23.85, Subsection (d) of Section 23.95, and Section 25.19. 5-9 SECTION 20. Section 26.01, Tax Code, is amended by adding 5-10 Subsection (a-1) to read as follows: 5-11 (a-1) This subsection applies to a taxing entity that has 5-12 adopted the alternative tax calendar under Section 6.032 of this 5-13 code. By July 1 the chief appraiser shall prepare and certify to 5-14 the assessor for each taxing unit participating in the district 5-15 that part of the appraisal roll for the district that lists the 5-16 property taxable by the unit. The part certified to the assessor 5-17 is the appraisal roll for the unit. The chief appraiser shall 5-18 consult with the assessor for each taxing unit and notify each unit 5-19 in writing by April 1 of the form in which the roll will be 5-20 provided to each unit. 5-21 SECTION 21. Section 26.12, Tax Code, is amended by adding 5-22 Subsections (a-1), (b-1), (d-1), and (e-1) to read as follows: 5-23 (a-1) This subsection applies to a taxing entity that has 5-24 adopted the alternative tax calendar under Section 6.032 of this 5-25 code. If a taxing unit is created after January 1 and before 5-26 June 1, the chief appraiser shall prepare and deliver an appraisal 5-27 roll for the unit as provided by Section 26.01 of this code as if 5-28 the unit had existed on January 1. 5-29 (b-1) This subsection applies to a taxing entity that has 5-30 adopted the alternative tax calendar under Section 6.032 of this 5-31 code. If the taxing unit created after January 1 and before June 1 5-32 imposes taxes for the year, it shall do so as provided by this 5-33 chapter as if it had existed on January 1. 5-34 (d-1) This subsection applies to a taxing entity that has 5-35 adopted the alternative tax calendar under Section 6.032 of this 5-36 code. Except as provided by Subsection (e-1), a taxing unit 5-37 created after May 31 may not impose property taxes in the year in 5-38 which the unit is created. 5-39 (e-1) This subsection applies to a taxing entity that has 5-40 adopted the alternative tax calendar under Section 6.032 of this 5-41 code. A county education district created after May 31 shall 5-42 impose property taxes in the year in which the district is created. 5-43 SECTION 22. Subchapter A, Chapter 41, Tax Code, is amended 5-44 by adding Section 41.041 to read as follows: 5-45 Sec. 41.041. CHALLENGE PETITION FOR ENTITIES ADOPTING 5-46 ALTERNATIVE TAX CALENDAR. This section applies to a taxing entity 5-47 that has adopted the alternative tax calendar under Section 6.032. 5-48 The appraisal review board is not required to hear or determine a 5-49 challenge unless the taxing unit initiating the challenge files a 5-50 petition with the board before April 15 or within 15 days after the 5-51 date that the appraisal records are submitted to the appraisal 5-52 review board, whichever is later. The petition must include an 5-53 explanation of the grounds for the challenge. 5-54 SECTION 23. Section 41.12, Tax Code, is amended by adding 5-55 Subsection (a-1) to read as follows: 5-56 (a-1) This subsection applies to a taxing entity that has 5-57 adopted the alternative tax calendar under Section 6.032. By June 5-58 25, the appraisal review board shall: 5-59 (1) hear and determine all or substantially all timely 5-60 filed protests; 5-61 (2) determine all timely filed challenges; 5-62 (3) submit a list of its approved changes in the 5-63 records to the chief appraiser; and 5-64 (4) approve the records. 5-65 SECTION 24. Section 41.44, Tax Code, is amended by adding 5-66 Subsection (a-1) to read as follows: 5-67 (a-1) This subsection applies to a taxing entity that has 5-68 adopted the alternative tax calendar under Section 6.032. Except 5-69 as provided by Subsections (b) and (c), to be entitled to a hearing 6-1 and determination of a protest, the property owner initiating the 6-2 protest must file a written notice of the protest with the 6-3 appraisal review board having authority to hear the matter 6-4 protested: 6-5 (1) before April 15 or not later than the 30th day 6-6 after the date that notice was delivered to the property owner as 6-7 provided by Section 25.19, whichever is later; 6-8 (2) in the case of a protest of a change in the 6-9 appraisal records ordered as provided by Subchapter A of this 6-10 chapter or by Chapter 25, not later than the 30th day after the 6-11 date notice of the change is delivered to the property owner; or 6-12 (3) in the case of a determination that a change in 6-13 the use of land appraised under Subchapter C, D, or E, Chapter 23, 6-14 has occurred, not later than the 30th day after the date the notice 6-15 of the determination is delivered to the property owner. 6-16 SECTION 25. Section 41.70, Tax Code, is amended by adding 6-17 Subsection (a-1) to read as follows: 6-18 (a-1) This subsection applies to a taxing entity that has 6-19 adopted the alternative tax calendar under Section 6.032. On or 6-20 after April 1 but not later than April 15, the chief appraiser 6-21 shall publish notice of the manner in which a protest under this 6-22 chapter may be brought by a property owner. The notice must 6-23 describe how to initiate a protest and must describe the deadlines 6-24 for filing a protest. The notice must also describe the manner in 6-25 which an order of the appraisal review board may be appealed. The 6-26 comptroller by rule shall adopt minimum standards for the form and 6-27 content of the notice required by this section. 6-28 SECTION 26. The importance of this legislation and the 6-29 crowded condition of the calendars in both houses create an 6-30 emergency and an imperative public necessity that the 6-31 constitutional rule requiring bills to be read on three several 6-32 days in each house be suspended, and this rule is hereby suspended. 6-33 * * * * *