By Merritt H.B. No. 2028
76R7340 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration of appraisal districts and the
1-3 appraisal of property for ad valorem tax purposes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.12(d), Tax Code, is amended to read as
1-6 follows:
1-7 (d) For purposes of this section, the appraisal ratio of
1-8 real property [a homestead] to which Section 23.23 applies is the
1-9 ratio of the property's market value as determined by the appraisal
1-10 district or appraisal review board, as applicable, to the market
1-11 value of the property according to law. The appraisal ratio is not
1-12 calculated according to the appraised value of the property as
1-13 limited by Section 23.23 if that value is less than market value.
1-14 SECTION 2. Sections 5.102(b) and (c), Tax Code, are amended
1-15 to read as follows:
1-16 (b) If the review results in a finding that an appraisal
1-17 district is not in compliance with generally accepted appraisal
1-18 standards and practices, the comptroller shall deliver a report
1-19 that details the comptroller's findings and recommendations for
1-20 improvement to the county assessor-collector who governs the
1-21 appraisal district [district's chief appraiser and board of
1-22 directors].
1-23 (c) If noncompliance by an appraisal district with generally
1-24 accepted appraisal standards and practices is found in two
2-1 consecutive reviews and if the county assessor-collector who
2-2 governs the [an affected] appraisal district fails [district's
2-3 chief appraiser and board of directors fail] to take effective
2-4 remedial action as determined by the comptroller, the comptroller
2-5 may appoint a special master who may exercise supervision and
2-6 control over the operations of the district until full compliance
2-7 with generally accepted appraisal standards and practices is
2-8 achieved. The appraisal district shall bear the costs related to
2-9 the master's supervision and control.
2-10 SECTION 3. Section 5.12(b), Tax Code, is amended to read as
2-11 follows:
2-12 (b) At the written request of the governing bodies of a
2-13 majority of the taxing units participating in an appraisal district
2-14 or of a majority of the group of taxing units composed of the
2-15 municipalities, school districts, and county participating in an
2-16 [entitled to vote on the appointment of] appraisal district
2-17 [directors], the comptroller shall audit the performance of the
2-18 appraisal district. The governing bodies may request a general
2-19 audit of the performance of the appraisal district or may request
2-20 an audit of only one or more particular duties, practices,
2-21 functions, departments, or other appraisal district matters.
2-22 SECTION 4. Sections 5.13(c), (f), and (h), Tax Code, are
2-23 amended to read as follows:
2-24 (c) The comptroller must approve the specific plan for the
2-25 performance audit of an appraisal district. Before approving an
2-26 audit plan, the comptroller must provide any interested person an
2-27 opportunity to appear before the comptroller and to comment on the
3-1 proposed plan. Not later than the 20th day before the date the
3-2 comptroller considers the plan for an appraisal district
3-3 performance audit, the comptroller must notify the county
3-4 assessor-collector who governs [presiding officer of] the appraisal
3-5 district [board of directors] that the comptroller intends to
3-6 consider the plan. The notice must include the time, date, and
3-7 place of the meeting to consider the plan. [Immediately after
3-8 receiving the notice, the presiding officer shall deliver a copy of
3-9 the notice to the other members of the appraisal district board of
3-10 directors.]
3-11 (f) The comptroller shall report the results of its audit in
3-12 writing to the governing body of each taxing unit that participates
3-13 in the appraisal district and[,] to the county assessor-collector
3-14 who governs [chief appraiser, and to the presiding officer of] the
3-15 appraisal district [board of directors]. If the audit was
3-16 requested under Section 5.12(c) [of this code], the comptroller
3-17 shall also provide a report to a representative of the property
3-18 owners who requested the audit.
3-19 (h) At any time after the request for an audit is made, the
3-20 comptroller may discontinue the audit in whole or in part if
3-21 requested to do so by:
3-22 (1) the governing bodies of a majority of the taxing
3-23 units participating in the district, if the audit was requested by
3-24 a majority of those units;
3-25 (2) the governing bodies of a majority of the group of
3-26 taxing units composed of the municipalities, school districts, and
3-27 county participating in the [entitled to vote on the appointment
4-1 of] appraisal district [directors], if the audit was requested by a
4-2 majority of those units; or
4-3 (3) if the audit was requested under Section 5.12(c)
4-4 [of this code], by the taxpayers who requested the audit.
4-5 SECTION 5. Section 6.01(a), Tax Code, is amended to read as
4-6 follows:
4-7 (a) An appraisal district is established in each county.
4-8 The district is governed by the assessor-collector of the county
4-9 for which the district is established, who serves as the chief
4-10 appraiser for the district.
4-11 SECTION 6. Sections 6.02(b) and (c), Tax Code, are amended
4-12 to read as follows:
4-13 (b) A taxing unit that has boundaries extending into two or
4-14 more counties may choose to participate in only one of the
4-15 appraisal districts. In that event, the boundaries of the district
4-16 chosen extend outside the county to the extent of the unit's
4-17 boundaries. To be effective, the choice must be approved by the
4-18 county assessor-collector who governs [resolution of the board of
4-19 directors of] the district chosen. The choice of a school district
4-20 to participate in a single appraisal district does not apply to
4-21 property annexed to the school district under Subchapter C or G,
4-22 Chapter 41, Education Code, unless:
4-23 (1) the school district taxes property other than
4-24 property annexed to the district under Subchapter C or G, Chapter
4-25 41, Education Code, in the same county as the annexed property; or
4-26 (2) the annexed property is contiguous to property in
4-27 the school district other than property annexed to the district
5-1 under Subchapter C or G, Chapter 41, Education Code.
5-2 (c) A taxing unit that has chosen to participate in a single
5-3 appraisal district under Subsection (b) [of this section] may
5-4 revoke that choice and, if permitted to do so by Subsection (b),
5-5 choose to participate in a single appraisal district other than the
5-6 one previously chosen. [A taxing unit that has withdrawn from an
5-7 appraisal district under this subsection and chosen to participate
5-8 in another single appraisal district may not under this subsection
5-9 withdraw from that district.]
5-10 SECTION 7. Sections 6.05(b) and (c), Tax Code, are amended
5-11 to read as follows:
5-12 (b) The county assessor-collector who governs [board of
5-13 directors of] an appraisal district may contract with an appraisal
5-14 office in another district or with a taxing unit in the district to
5-15 perform the duties of the appraisal office for the district.
5-16 (c) The chief appraiser is the chief administrator of the
5-17 appraisal office. [The chief appraiser is appointed by and serves
5-18 at the pleasure of the appraisal district board of directors. If a
5-19 taxing unit performs the duties of the appraisal office pursuant to
5-20 a contract, the assessor for the unit is the chief appraiser.]
5-21 SECTION 8. Section 6.051, Tax Code, is amended to read as
5-22 follows:
5-23 Sec. 6.051. Ownership or Lease of Real Property. (a) The
5-24 county assessor-collector who governs [board of directors of] an
5-25 appraisal district may purchase or lease real property and may
5-26 construct improvements as necessary to establish and operate the
5-27 appraisal office or a branch appraisal office.
6-1 (b) The acquisition or conveyance of real property or the
6-2 construction or renovation of a building or other improvement by an
6-3 appraisal district must be approved by the governing bodies of
6-4 three-fourths of the group of taxing units composed of the
6-5 municipalities, school districts, and county participating in the
6-6 appraisal district [entitled to vote on the appointment of board
6-7 members]. The county assessor-collector [board of directors by
6-8 resolution] may propose a property transaction or other action for
6-9 which this subsection requires approval of the taxing units. The
6-10 county assessor-collector [chief appraiser] shall notify the
6-11 presiding officer of each governing body entitled to vote on the
6-12 approval of the proposal by delivering a copy of the proposal
6-13 [board's resolution], together with information showing the costs
6-14 of other available alternatives to the proposal. On or before the
6-15 30th day after the date the presiding officer receives notice of
6-16 the proposal, the governing body of a taxing unit by resolution may
6-17 approve or disapprove the proposal. If a governing body fails to
6-18 act on or before that 30th day or fails to file its resolution with
6-19 the county assessor-collector [chief appraiser] on or before the
6-20 10th day after that 30th day, the proposal is treated as if it were
6-21 disapproved by the governing body.
6-22 (c) The county assessor-collector [board of directors] may
6-23 convey real property owned by the district, and the proceeds shall
6-24 be credited to each taxing unit that participates in the district
6-25 in proportion to the unit's allocation of the appraisal district
6-26 budget in the year in which the transaction occurs. A conveyance
6-27 must be approved as provided by Subsection (b) [of this section],
7-1 and any proceeds shall be apportioned by an amendment to the annual
7-2 budget made as provided by Section 6.06(c) [Subsection (c) of
7-3 Section 6.06 of this code].
7-4 [(d) An acquisition of real property by an appraisal
7-5 district before January 1, 1988, may be validated before March 1,
7-6 1988, in the manner provided by Subsection (b) of this section for
7-7 the acquisition of real property.]
7-8 SECTION 9. Sections 6.06(a), (b), (c), (f), (h), (i), and
7-9 (j), Tax Code, are amended to read as follows:
7-10 (a) Each year the county assessor-collector [chief
7-11 appraiser] shall prepare a proposed budget for the operations of
7-12 the district for the following tax year and shall submit copies to
7-13 each taxing unit participating in the district [and to the district
7-14 board of directors] before June 15. The county assessor-collector
7-15 [He] shall include in the budget a list showing each proposed
7-16 position, the proposed salary for the position, all benefits
7-17 proposed for the position, each proposed capital expenditure, and
7-18 an estimate of the amount of the budget that will be allocated to
7-19 each taxing unit. Each municipality, each school district, and the
7-20 county participating in the district [taxing unit entitled to vote
7-21 on the appointment of board members] shall maintain a copy of the
7-22 proposed budget for public inspection at its principal
7-23 administrative office.
7-24 (b) The county assessor-collector [board of directors] shall
7-25 hold a public hearing to consider the budget. The county
7-26 assessor-collector [secretary of the board] shall deliver to the
7-27 presiding officer of the governing body of each taxing unit
8-1 participating in the district not later than the 10th day before
8-2 the date of the hearing a written notice of the date, time, and
8-3 place fixed for the hearing. The county assessor-collector [board]
8-4 shall complete the [its] hearings, make necessary [any] amendments
8-5 to the proposed budget [it desires], and finally approve a budget
8-6 before September 15. If governing bodies of a majority of the
8-7 group of taxing units composed of the municipalities, school
8-8 districts, and county participating in the appraisal district
8-9 [taxing units entitled to vote on the appointment of board members]
8-10 adopt resolutions disapproving a budget and file them with the
8-11 county assessor-collector [secretary of the board] within 30 days
8-12 after its adoption, the budget does not take effect, and the county
8-13 assessor-collector [board] shall adopt a new budget within 30 days
8-14 of the disapproval.
8-15 (c) The county assessor-collector [board] may amend the
8-16 approved budget at any time, but [the secretary of the board] must
8-17 deliver a written copy of a proposed amendment to the presiding
8-18 officer of the governing body of each taxing unit participating in
8-19 the district not later than the 30th day before the date the county
8-20 assessor-collector approves the amendment [board acts on it].
8-21 (f) Payments shall be made to a depository designated by the
8-22 county assessor-collector [district board of directors]. The
8-23 district's funds may be disbursed only by a written check, draft,
8-24 or order signed by the county assessor-collector [chairman and
8-25 secretary of the board or, if authorized by resolution of the
8-26 board, by the chief appraiser].
8-27 (h) If a newly formed taxing unit or a taxing unit that did
9-1 not impose taxes in the preceding year imposes taxes in any tax
9-2 year, that unit is allocated a portion of the amount budgeted to
9-3 operate the district as if it had imposed taxes in the preceding
9-4 year, except that the amount of taxes the unit imposes in the
9-5 current year is used to calculate its allocation. Before the
9-6 amount of taxes to be imposed for the current year is known, the
9-7 allocation may be based on an estimate to which the county
9-8 assessor-collector [district board of directors] and the governing
9-9 body of the unit agree, and the payments made after that amount is
9-10 known shall be adjusted to reflect the amount imposed. The
9-11 payments of a newly formed taxing unit that has no source of funds
9-12 are postponed until the unit has received adequate tax or other
9-13 revenues.
9-14 (i) The fiscal year of an appraisal district is the calendar
9-15 year unless the governing bodies of three-fourths of the group of
9-16 taxing units composed of the municipalities, school districts, and
9-17 county participating in the appraisal district [taxing units
9-18 entitled to vote on the appointment of board members] adopt
9-19 resolutions proposing a different fiscal year and file them with
9-20 the county assessor-collector [secretary of the board] not more
9-21 than 12 and not less than eight months before the first day of the
9-22 fiscal year proposed by the resolutions. If the fiscal year of an
9-23 appraisal district is changed under this subsection, the county
9-24 assessor-collector [chief appraiser] shall prepare a proposed
9-25 budget for the fiscal year as provided by Subsection (a) [of this
9-26 section] before the 15th day of the seventh month preceding the
9-27 first day of the fiscal year established by the change, and [the
10-1 board of directors] shall adopt a budget for the fiscal year as
10-2 provided by Subsection (b) [of this section] before the 15th day of
10-3 the fourth month preceding the first day of the fiscal year
10-4 established by the change. Unless the appraisal district adopts a
10-5 different method of allocation under Section 6.061 [of this code],
10-6 the allocation of the budget to each taxing unit shall be
10-7 calculated as provided by Subsection (d) [of this section] using
10-8 the amount of property taxes imposed by each participating taxing
10-9 unit in the most recent tax year preceding the fiscal year
10-10 established by the change for which the necessary information is
10-11 available. Each taxing unit shall pay its allocation as provided
10-12 by Subsection (e) [of this section], except that the first payment
10-13 shall be made before the first day of the fiscal year established
10-14 by the change and subsequent payments shall be made quarterly. In
10-15 the year in which a change in the fiscal year occurs, the budget
10-16 that takes effect on January 1 of that year may be amended as
10-17 necessary as provided by Subsection (c) [of this section in order]
10-18 to accomplish the change in fiscal years.
10-19 (j) If the total amount of the payments made or due to be
10-20 made by the taxing units participating in an appraisal district
10-21 exceeds the amount actually spent or obligated to be spent during
10-22 the fiscal year for which the payments were made, the county
10-23 assessor-collector [chief appraiser] shall credit the excess amount
10-24 against each taxing unit's allocated payments for the following
10-25 year in proportion to the amount of each unit's budget allocation
10-26 for the fiscal year for which the payments were made. If a taxing
10-27 unit that paid its allocated amount is not allocated a portion of
11-1 the district's budget for the following fiscal year, the county
11-2 assessor-collector [chief appraiser] shall refund to the taxing
11-3 unit its proportionate share of the excess funds not later than the
11-4 150th day after the end of the fiscal year for which the payments
11-5 were made.
11-6 SECTION 10. Section 6.061, Tax Code, is amended to read as
11-7 follows:
11-8 Sec. 6.061. CHANGES IN METHOD OF FINANCING. (a) The county
11-9 assessor-collector who governs [board of directors of] an appraisal
11-10 district, by signed order [resolution adopted and] delivered to
11-11 each taxing unit participating in the district after June 15 and
11-12 before August 15, may prescribe a different method of allocating
11-13 the costs of operating the district unless the governing body of
11-14 any taxing unit that participates in the district adopts a
11-15 resolution opposing the different method, and files it with the
11-16 county assessor-collector [board of directors] before September 1.
11-17 If a [board] proposal is rejected, the county assessor-collector
11-18 [board] shall notify, in writing, each taxing unit participating in
11-19 the district before September 15.
11-20 (b) The taxing units participating in an appraisal district
11-21 may adopt a different method of allocating the costs of operating
11-22 the district if the governing bodies of three-fourths of the group
11-23 of taxing units composed of the municipalities, school districts,
11-24 and county participating in the appraisal district [taxing units
11-25 that are entitled to vote on the appointment of board members]
11-26 adopt resolutions providing for the other method. However, a
11-27 change under this subsection is not valid if it requires any taxing
12-1 unit to pay a greater proportion of the appraisal district's costs
12-2 than the unit would pay under Section 6.06 [of this code] without
12-3 the consent of the governing body of that unit.
12-4 (c) An official copy of a resolution under this section must
12-5 be filed with the county assessor-collector [chief appraiser of the
12-6 appraisal district] after April 30 and before May 15 or the
12-7 resolution is ineffective.
12-8 (d) Before May 20, the county assessor-collector [chief
12-9 appraiser] shall determine whether a sufficient number of eligible
12-10 taxing units have filed valid resolutions proposing a change in the
12-11 allocation of district costs for the change to take effect. Before
12-12 May 25, the county assessor-collector [chief appraiser] shall
12-13 notify each taxing unit participating in the district of each
12-14 change that is adopted.
12-15 (e) A change in allocation of district costs made as
12-16 provided by this section remains in effect until changed in a
12-17 manner provided by this section or rescinded by resolution of a
12-18 majority of the governing bodies of the group of taxing units
12-19 composed of the municipalities, school districts, and county
12-20 participating in the appraisal district [that are entitled to vote
12-21 on appointment of board members under Section 6.03 of this code].
12-22 SECTION 11. Sections 6.062(a) and (c), Tax Code, are
12-23 amended to read as follows:
12-24 (a) Not later than the 10th day before the date of the
12-25 public hearing at which the county assessor-collector [board of
12-26 directors] considers the appraisal district budget, the county
12-27 assessor-collector [chief appraiser] shall give notice of the
13-1 public hearing by publishing the notice in a newspaper having
13-2 general circulation in the county for which the appraisal district
13-3 is established. The notice may not be smaller than one-quarter
13-4 page of a standard-size or tabloid-size newspaper and may not be
13-5 published in the part of the paper in which legal notices and
13-6 classified advertisements appear.
13-7 (c) The notice must state that the appraisal district is
13-8 supported solely by payments from the local taxing units served by
13-9 the appraisal district. The notice must also contain the following
13-10 statement: "If approved by the county assessor-collector
13-11 [appraisal district board of directors] at the public hearing, this
13-12 proposed budget will take effect automatically unless disapproved
13-13 by the governing bodies of the county, school districts, and
13-14 municipalities [cities, and towns] served by the appraisal
13-15 district. A copy of the proposed budget is available for public
13-16 inspection in the office of each of those governing bodies."
13-17 SECTION 12. Section 6.063, Tax Code, is amended to read as
13-18 follows:
13-19 Sec. 6.063. Financial Audit. (a) At least once each year,
13-20 the county assessor-collector who governs [board of directors of]
13-21 an appraisal district shall have prepared an audit of its affairs
13-22 by an independent certified public accountant or a firm of
13-23 independent certified public accountants.
13-24 (b) The report of the audit is a public record. A copy of
13-25 the report shall be delivered to the county assessor-collector, the
13-26 county judge, and the presiding officer of the governing body of
13-27 each municipality and school district participating in the
14-1 appraisal district [taxing unit eligible to vote on the appointment
14-2 of district directors], and a reasonable number of copies shall be
14-3 available for inspection at the appraisal office.
14-4 SECTION 13. Sections 6.09(b) and (c), Tax Code, are amended
14-5 to read as follows:
14-6 (b) The county assessor-collector who governs an appraisal
14-7 district [board of directors] shall designate as the district
14-8 depository the financial institution or institutions that offer the
14-9 most favorable terms and conditions for the handling of the
14-10 district's funds.
14-11 (c) The county assessor-collector [board] shall solicit bids
14-12 to be designated as depository for the district at least once in
14-13 each two-year period.
14-14 SECTION 14. Sections 6.11(a) and (b), Tax Code, are amended
14-15 to read as follows:
14-16 (a) The county assessor-collector who governs [board of
14-17 directors of] an appraisal district may not make a contract for the
14-18 district requiring an expenditure of more than $15,000 unless the
14-19 proposed contract is submitted to competitive bidding.
14-20 (b) The county assessor-collector [board of directors] is
14-21 subject to the same requirements and has the same powers regarding
14-22 the following matters as apply to a commissioners court under the
14-23 Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271,
14-24 Local Government Code):
14-25 (1) notice of the contract;
14-26 (2) issuance of the contract to the lowest responsible
14-27 bidder;
15-1 (3) rejection of bids;
15-2 (4) expenditure of funds on the completion and
15-3 acceptance of the contract;
15-4 (5) exceptions to the competitive bidding requirement;
15-5 (6) change orders; and
15-6 (7) effect of noncompliance with the competitive
15-7 bidding requirements.
15-8 SECTION 15. Section 6.12(a), Tax Code, is amended to read
15-9 as follows:
15-10 (a) The county assessor-collector who governs an [chief
15-11 appraiser of each] appraisal district shall appoint[, with the
15-12 advice and consent of the board of directors,] an agricultural
15-13 advisory board composed of three or more members as determined by
15-14 the board.
15-15 SECTION 16. Sections 6.24(a) and (b), Tax Code, are amended
15-16 to read as follows:
15-17 (a) The governing body of a taxing unit other than a county
15-18 may contract as provided by the Interlocal Cooperation Act with the
15-19 governing body of another taxing unit [or with the board of
15-20 directors of an appraisal district] for the other unit [or the
15-21 district] to perform duties relating to the assessment or
15-22 collection of taxes.
15-23 (b) The commissioners court with the approval of the county
15-24 assessor-collector may contract as provided by the Interlocal
15-25 Cooperation Act with the governing body of another taxing unit in
15-26 the county [or with the board of directors of the appraisal
15-27 district] for the other unit [or the district] to perform duties
16-1 relating to the assessment or collection of taxes for the county.
16-2 If a county contracts to have its taxes assessed and collected by
16-3 another taxing unit [or by the appraisal district], the contract
16-4 shall require the other unit [or the district] to assess and
16-5 collect all taxes the county is required to assess and collect.
16-6 SECTION 17. Section 6.26(f), Tax Code, is amended to read as
16-7 follows:
16-8 (f) If a majority of the qualified voters voting on the
16-9 question in the election favor the proposition, the entity or
16-10 office named by the ballot shall perform the functions named by the
16-11 ballot beginning with the next time property taxes are assessed or
16-12 collected, as applicable, that is more than 90 days after the date
16-13 of the election. If the governing bodies, [(]and the county
16-14 assessor-collector who governs the appraisal district [board of
16-15 directors] when the district is involved,[)] agree, a function may
16-16 be consolidated when performance of the function begins in less
16-17 than 90 days after the date of the election.
16-18 SECTION 18. Sections 6.41(b), (c), (d), (e), and (f), Tax
16-19 Code, are amended to read as follows:
16-20 (b) The board consists of three members. However, the
16-21 county assessor-collector who governs the appraisal district [board
16-22 of directors by resolution of a majority of its members] may
16-23 increase the size of the appraisal review board to not more than
16-24 nine members or, in a district established for a county with a
16-25 population of at least 250,000, to not more than 15 members or, in
16-26 a district established for a county with a population of at least
16-27 one million, to not more than 30 members or, in a district
17-1 established for a county with a population of at least 1,500,000,
17-2 to not more than 45 members.
17-3 (c) To be eligible to serve on the board, an individual must
17-4 be a resident of the district and must have resided in the district
17-5 for at least two years. An [A member of the appraisal district
17-6 board of directors or an] officer or employee of the comptroller,
17-7 the appraisal office, or a taxing unit is ineligible to serve on
17-8 the board. In an appraisal district established for a county
17-9 having a population of more than 300,000, an individual who has
17-10 served for all or part of three previous terms as a board member or
17-11 auxiliary board member on the appraisal review board, is a former
17-12 member of the governing body or an officer or employee of a taxing
17-13 unit, or is a former director, officer, or employee of the
17-14 appraisal district is ineligible to serve on the appraisal review
17-15 board. In an appraisal district established for any other county,
17-16 an individual who has served for all or part of three consecutive
17-17 terms as a board member or auxiliary board member on the appraisal
17-18 review board is ineligible to serve on the appraisal review board
17-19 during a term that begins on the next January 1 following the third
17-20 of those consecutive terms.
17-21 (d) Members of the board are appointed by the
17-22 assessor-collector of the county for which the appraisal district
17-23 is established [resolution of a majority of the appraisal district
17-24 board of directors]. A vacancy on the board is filled in the same
17-25 manner for the unexpired portion of the term.
17-26 (e) Members of the board hold office for terms of two years
17-27 beginning January 1. The county assessor-collector [appraisal
18-1 district board of directors by resolution] shall provide for
18-2 staggered terms, so that the terms of as close to one-half of the
18-3 members as possible expire each year. In making the initial
18-4 appointments, the county assessor-collector [board of directors]
18-5 shall designate those members who serve terms of one year.
18-6 (f) A member of the board may be removed from the board by
18-7 the county assessor-collector who governs [a majority vote of] the
18-8 appraisal district [board of directors]. Grounds for removal are:
18-9 (1) a violation of Section 6.412 or 6.413; or
18-10 (2) good cause relating to the attendance of members
18-11 at called meetings of the board as established by written policy
18-12 adopted by the county assessor-collector [a majority of the
18-13 appraisal district board of directors].
18-14 SECTION 19. Section 6.411(a), Tax Code, is amended to read
18-15 as follows:
18-16 (a) The county assessor-collector who governs [board of
18-17 directors of] an appraisal district may appoint auxiliary members
18-18 to hear taxpayer protests before the appraisal review board and to
18-19 assist the board in performing its other duties.
18-20 SECTION 20. Section 23.23, Tax Code, is amended to read as
18-21 follows:
18-22 Sec. 23.23. LIMITATION ON APPRAISED VALUE OF REAL PROPERTY
18-23 [RESIDENCE HOMESTEAD]. (a) The appraised value of real property
18-24 for the first tax year after the tax year in which the owner
18-25 acquires the property may not exceed the market value of the
18-26 property. Notwithstanding Section 23.01, the appraised value of
18-27 the property in each subsequent tax year until the end of the tax
19-1 year in which the ownership of the property changes may not exceed
19-2 the sum of:
19-3 (1) the appraised value of the property for the
19-4 preceding tax year as adjusted by the chief appraiser for the
19-5 current tax year to reflect the change from the preceding tax year
19-6 in the purchasing power of the dollar for consumers in the regional
19-7 water planning area designated under Section 16.053, Water Code, in
19-8 which the property is located; and
19-9 (2) the market value of all new improvements to the
19-10 property.
19-11 (b) For each tax year, using the index that the comptroller
19-12 considers to most accurately report changes in the purchasing power
19-13 of the dollar for consumers in each regional water planning area
19-14 designated under Section 16.053, Water Code, the comptroller shall
19-15 determine and publicize the percentage by which the appraised value
19-16 of real property may be increased under Subsection (a)(1). Each
19-17 chief appraiser shall use the applicable percentage determined by
19-18 the comptroller under this subsection to determine the maximum
19-19 increase in the appraised value of real property appraised by that
19-20 chief appraiser [a residence homestead for a tax year may not
19-21 exceed the lesser of:]
19-22 [(1) the market value of the property; or]
19-23 [(2) the sum of:]
19-24 [(A) 10 percent of the appraised value of the
19-25 property for the last year in which the property was appraised for
19-26 taxation times the number of years since the property was last
19-27 appraised;]
20-1 [(B) the appraised value of the property for the
20-2 last year in which the property was appraised; and]
20-3 [(C) the market value of all new improvements to
20-4 the property].
20-5 (c) [(b)] When appraising real property [a residence
20-6 homestead], the chief appraiser shall:
20-7 (1) appraise the property at its market value; and
20-8 (2) include in the appraisal records both the market
20-9 value of the property and the amount computed under Subsection
20-10 (a)[(2)].
20-11 [(c) The limitation provided by Subsection (a) takes effect
20-12 as to a residence homestead on January 1 of the tax year following
20-13 the first tax year the owner qualifies the property for an
20-14 exemption under Section 11.13. The limitation expires on January 1
20-15 of the first tax year that neither the owner of the property when
20-16 the limitation took effect nor the owner's spouse or surviving
20-17 spouse qualifies for an exemption under Section 11.13.]
20-18 (d) This section does not apply to property appraised under
20-19 Subchapter C, D, E, F, or G.
20-20 (e) In this section, "new improvement" means an improvement
20-21 to real property [a residence homestead] that is made after the
20-22 appraisal of the property for the preceding year and that increases
20-23 the market value of the property. The term does not include
20-24 ordinary maintenance of an existing structure or the grounds or
20-25 another feature of the property.
20-26 (f) For purposes of this section, the owner of real property
20-27 on January 1, 2000, is considered to have acquired the property in
21-1 the 1999 tax year.
21-2 SECTION 21. Section 25.19(g), Tax Code, is amended to read
21-3 as follows:
21-4 (g) The county assessor-collector who governs the appraisal
21-5 district [chief appraiser, with the approval of the appraisal
21-6 district board of directors,] may dispense with the notice required
21-7 by [Subdivision (1) of] Subsection (a)(1) [of this section] if the
21-8 amount of increase in appraised value is $1,000 or less.
21-9 SECTION 22. Section 25.25(b), Tax Code, is amended to read
21-10 as follows:
21-11 (b) The chief appraiser may change the appraisal roll at any
21-12 time to correct a name or address, a description of property, or a
21-13 clerical error or other inaccuracy as prescribed by board rule that
21-14 does not increase the amount of tax liability. Before the 10th day
21-15 after the end of each calendar quarter, the chief appraiser shall
21-16 submit to the appraisal review board [and to the board of directors
21-17 of the appraisal district] a written report of each change made
21-18 under this subsection that decreases the tax liability of the owner
21-19 of the property. The report must include:
21-20 (1) a description of each property; and
21-21 (2) the name of the owner of that property.
21-22 SECTION 23. Subchapter C, Chapter 41, Tax Code, is amended
21-23 by adding Section 41.414 to read as follows:
21-24 Sec. 41.414. PROTEST OF APPRAISED VALUE OF REAL PROPERTY.
21-25 In a protest of the appraised value of real property, if the
21-26 appraised value for the current year is the value calculated as
21-27 provided by Section 23.23(a), the property owner is not entitled to
22-1 protest the appraised value for the preceding year that is used in
22-2 the calculation of the appraised value for the current year.
22-3 SECTION 24. Section 41.66(g), Tax Code, is amended to read
22-4 as follows:
22-5 (g) At the beginning of a hearing on a protest, each member
22-6 of the appraisal review board hearing the protest must sign an
22-7 affidavit stating that the board member has not communicated with
22-8 another person in violation of Subsection (f). If a board member
22-9 has communicated with another person in violation of Subsection
22-10 (f), the member must be recused from the proceeding and may not
22-11 hear, deliberate on, or vote on the determination of the protest.
22-12 The county assessor-collector who governs [board of directors of]
22-13 the appraisal district shall adopt and implement a policy
22-14 concerning the temporary replacement of an appraisal review board
22-15 member who has communicated with another person in violation of
22-16 Subsection (f).
22-17 SECTION 25. Section 42.02, Tax Code, is amended to read as
22-18 follows:
22-19 Sec. 42.02. Right of Appeal by Chief Appraiser. The chief
22-20 appraiser is entitled to appeal an order of the appraisal review
22-21 board determining a taxpayer protest as provided by Subchapter C,
22-22 Chapter 41 [of this code if he has written approval of the local
22-23 appraisal district board of directors to appeal].
22-24 SECTION 26. Section 403.302(d), Government Code, as amended
22-25 by Section 44, Chapter 1039, Section 63, Chapter 1040, and Section
22-26 27, Chapter 1071, Acts of the 75th Legislature, Regular Session,
22-27 1997, is reenacted and amended to read as follows:
23-1 (d) For the purposes of this section, "taxable value" means
23-2 the market value of all taxable property less:
23-3 (1) the total dollar amount of any residence homestead
23-4 exemptions lawfully granted under Section 11.13(b) or (c), Tax
23-5 Code, in the year that is the subject of the study for each school
23-6 district;
23-7 (2) the total dollar amount of any exemptions granted
23-8 before May 31, 1993, within a reinvestment zone under agreements
23-9 authorized by Chapter 312, Tax Code;
23-10 (3) the total dollar amount of any captured appraised
23-11 value of property that is located in a reinvestment zone on August
23-12 31, 1999, generates a tax increment paid into a tax increment fund,
23-13 and is eligible for tax increment financing under Chapter 311, Tax
23-14 Code, under a reinvestment zone financing plan approved under
23-15 Section 311.011(d), Tax Code, before September 1, 1999;
23-16 (4) the total dollar amount of any exemptions granted
23-17 under Section 11.251, Tax Code;
23-18 (5) the difference between the comptroller's estimate
23-19 of the market value and the productivity value of land that
23-20 qualifies for appraisal on the basis of its productive capacity,
23-21 except that the productivity value estimated by the comptroller may
23-22 not exceed the fair market value of the land;
23-23 (6) the portion of the appraised value of residence
23-24 homesteads of the elderly on which school district taxes are not
23-25 imposed in the year that is the subject of the study, calculated as
23-26 if the residence homesteads were appraised at the full value
23-27 required by law;
24-1 (7) a portion of the market value of property not
24-2 otherwise fully taxable by the district at market value because of
24-3 action required by statute or the constitution of this state that,
24-4 if the tax rate adopted by the district is applied to it, produces
24-5 an amount equal to the difference between the tax that the district
24-6 would have imposed on the property if the property were fully
24-7 taxable at market value and the tax that the district is actually
24-8 authorized to impose on the property, if this subsection does not
24-9 otherwise require that portion to be deducted;
24-10 (8) the market value of all tangible personal
24-11 property, other than manufactured homes, owned by a family or
24-12 individual and not held or used for the production of income;
24-13 (9) the appraised value of property the collection of
24-14 delinquent taxes on which is deferred under Section 33.06, Tax
24-15 Code;
24-16 (10) the portion of the appraised value of property
24-17 the collection of delinquent taxes on which is deferred under
24-18 Section 33.065, Tax Code; and
24-19 (11) the amount by which the market value of real
24-20 property [a residence homestead] to which Section 23.23, Tax Code,
24-21 applies exceeds the appraised value of that property as calculated
24-22 under that section.
24-23 SECTION 27. Section 22, The Property Taxation Professional
24-24 Certification Act (Article 8885, Revised Statutes), is amended to
24-25 read as follows:
24-26 Sec. 22. The county assessor-collector who governs an [No]
24-27 appraisal district [board of directors] or the governing body of a
25-1 taxing unit of this state may not, as a necessity for employment,
25-2 require that an appraiser, assessor, or collector act in an
25-3 unprofessional manner or commit acts in violation of this Act. A
25-4 complaint of a violation of this section shall be thoroughly
25-5 investigated by the board.
25-6 SECTION 28. The following provisions of the Tax Code are
25-7 repealed:
25-8 (1) Section 6.03;
25-9 (2) Section 6.031;
25-10 (3) Section 6.033;
25-11 (4) Section 6.034;
25-12 (5) Section 6.035;
25-13 (6) Section 6.036;
25-14 (7) Section 6.037;
25-15 (8) Section 6.04;
25-16 (9) Sections 6.05(d), (f), (g), and (h);
25-17 (10) Section 6.052;
25-18 (11) Section 6.10; and
25-19 (12) Section 31.03(c).
25-20 SECTION 29. (a) On the effective date of this Act, the tax
25-21 assessor-collector of each county begins to govern the appraisal
25-22 district established for that county and begins to serve as the
25-23 chief appraiser of the appraisal district, and the board of
25-24 directors of each appraisal district ceases to exist. On that
25-25 date, the appraisal district as governed by the county
25-26 assessor-collector succeeds to all the rights, duties, privileges,
25-27 property, obligations, and liabilities of the appraisal district as
26-1 governed by the board of directors.
26-2 (b) A measure taken or adopted by an appraisal district
26-3 board of directors before the effective date of this Act that is in
26-4 effect on the effective date continues in effect after the
26-5 effective date of this Act until superseded by the county
26-6 assessor-collector governing the district.
26-7 (c) The amendment by this Act of Section 6.02, Tax Code,
26-8 does not affect the choice of a taxing unit to participate in a
26-9 single appraisal district before the effective date of this Act.
26-10 (d) The amendment by this Act of Section 6.41, Tax Code,
26-11 does not affect the term of a member of an appraisal review board
26-12 appointed before the effective date of this Act.
26-13 SECTION 30. This Act takes effect January 1, 2000.
26-14 SECTION 31. The importance of this legislation and the
26-15 crowded condition of the calendars in both houses create an
26-16 emergency and an imperative public necessity that the
26-17 constitutional rule requiring bills to be read on three several
26-18 days in each house be suspended, and this rule is hereby suspended.