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1-35     section may be rescinded by resolution of a majority of the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                                  * * * * *