1-1     By:  Cain                                              S.B. No. 694
 1-2           (In the Senate - Filed February 24, 1999; March 1, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 22, 1999, reported favorably, as amended, by the following
 1-5     vote:  Yeas 8, Nays 0; April 22, 1999, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                                 By:  Cain
 1-7     Amend S.B. No. 694 on page 1, lines 18-19, by inserting "clear and
 1-8     understandable" between the word "a" and the word "written".
 1-9                            A BILL TO BE ENTITLED
1-10                                   AN ACT
1-11     relating to the written notice of the appraised value of property
1-12     for ad valorem tax purposes delivered by a chief appraiser to the
1-13     property owner.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15           SECTION 1.  Section 25.19, Tax Code, is amended to read as
1-16     follows:
1-17           Sec. 25.19.  NOTICE OF APPRAISED VALUE.  (a)  By May 15 or as
1-18     soon thereafter as practicable, the chief appraiser shall deliver a
1-19     written notice to a property owner of the appraised value of the
1-20     property owner's [his] property if:
1-21                 (1)  the appraised value of the property is greater
1-22     than it was in the preceding year;
1-23                 (2)  the appraised value of the property is greater
1-24     than the value rendered by the property owner; or
1-25                 (3)  the property was not on the appraisal roll in the
1-26     preceding year.
1-27           (b)  The chief appraiser shall separate real from personal
1-28     property and include in the notice for each:
1-29                 (1)  a list of the taxing units in which the property
1-30     is taxable;
1-31                 (2)  the appraised value of the property in the
1-32     preceding year;
1-33                 (3)  [the taxable value of the property in the
1-34     preceding year for each taxing unit taxing the property;]
1-35                 [(4)]  the appraised value of the property for the
1-36     current year and the kind and amount of each partial exemption, if
1-37     any, approved for the current year;
1-38                 (4) [(5)]  if the appraised value is greater than it
1-39     was in the preceding year, [:]
1-40                       [(A)  the effective tax rate that would be
1-41     announced pursuant to Chapter 26 if the total values being
1-42     submitted to the appraisal review board were to be approved by the
1-43     board with an explanation that that rate would raise the same
1-44     amount of revenue from property taxed in the preceding year as the
1-45     unit raised for those purposes in the preceding year;]
1-46                       [(B)]  the amount of tax that would be imposed on
1-47     the property on the basis of the tax rate for the preceding year
1-48     [described by Paragraph (A); and]
1-49                       [(C)  a statement that the governing body of the
1-50     unit may not adopt a rate that will increase tax revenues above tax
1-51     revenues for the preceding year without publishing notice in a
1-52     newspaper that it is considering a tax increase and holding a
1-53     hearing for taxpayers to discuss the tax increase];
1-54                 (5) [(6)]  in italic typeface, the following statement:
1-55     "The Texas Legislature does not set the amount of your local taxes.
1-56     Your property tax burden is decided by your locally elected
1-57     officials, and all inquiries concerning your taxes should be
1-58     directed to those officials";
1-59                 (6) [(7)]  a detailed explanation of the time and
1-60     procedure for protesting the value;
1-61                 (7) [(8)]  the date and place the appraisal review
1-62     board will begin hearing protests; and
1-63                 (8) [(9)]  a brief explanation that[:]
 2-1                       [(A)]  the governing body of each taxing unit
 2-2     decides whether or not taxes on the property will increase and the
 2-3     appraisal district only determines the value of the property[; and]
 2-4                       [(B)  a taxpayer who objects to increasing taxes
 2-5     and government expenditures should complain to the governing bodies
 2-6     of the taxing units and only complaints about value should be
 2-7     presented to the appraisal office and the appraisal review board].
 2-8           (c)  [In making the preliminary calculation required by
 2-9     Subsection (b)(5)(A) of this section of the effective tax rate that
2-10     will not increase taxes, taxes imposed by a unit in the preceding
2-11     year on property not yet appraised and submitted to the appraisal
2-12     review board for the current year shall be excluded.]
2-13           [(d)]  In the case of the residence homestead of a person 65
2-14     years of age or older that is subject to the limitation on a tax
2-15     increase over the preceding year for school tax purposes, the chief
2-16     appraiser shall indicate on the notice that the preceding year's
2-17     taxes may not be increased.
2-18           (d) [(e)  On the notice, the chief appraiser shall enclose
2-19     the information required by Subsections (b)(2)-(6) of this section
2-20     in a printed rectangle with dimensions of not less than 15 square
2-21     inches.  The chief appraiser shall have the information required by
2-22     Subsections (b)(2)-(5) printed in bold-faced type that is distinct
2-23     from and located above the other information enclosed in the
2-24     rectangle.]
2-25           [(f)]  Failure to receive the notice required by this section
2-26     does not affect the validity of the appraisal of the property, the
2-27     imposition of any tax on the basis of the appraisal, the existence
2-28     of any tax lien, or any proceeding instituted to collect the tax.
2-29           (e) [(g)]  The chief appraiser, with the approval of the
2-30     appraisal district board of directors, may dispense with the notice
2-31     required by [Subdivision (1) of] Subsection (a)(1) [(a) of this
2-32     section] if the amount of increase in appraised value is $1,000 or
2-33     less.
2-34           (f) [(h)  In the notice of appraised value for real property,
2-35     the chief appraiser shall list separately:]
2-36                 [(1)  the market value of the land; and]
2-37                 [(2)  the total market value of the structures and
2-38     other improvements on the property.]
2-39           [(i)]  By May 15 or as soon thereafter as practicable, the
2-40     chief appraiser shall deliver a written notice to the owner of each
2-41     property not included in a notice required to be delivered under
2-42     Subsection (a), if the property was reappraised in the current tax
2-43     year, if the ownership of the property changed during the preceding
2-44     year, or if the property owner or the agent of a property owner
2-45     authorized under Section 1.111 makes a written request for the
2-46     notice.  The chief appraiser shall separate real from personal
2-47     property and include in the notice for each property:
2-48                 (1)  the appraised value of the property in the
2-49     preceding year;
2-50                 (2)  the appraised value of the property for the
2-51     current year and the kind of each partial exemption, if any,
2-52     approved for the current year;
2-53                 (3)  a detailed explanation of the time and procedure
2-54     for protesting the value; and
2-55                 (4)  the date and place the appraisal review board will
2-56     begin hearing protests.
2-57           (g)  A notice required by Subsection (a) or (f) must be in
2-58     the form of a letter.
2-59           (h) [(j)]  Delivery with a notice required by Subsection (a)
2-60     or (f) [(i)] of a copy of the pamphlet published by the comptroller
2-61     under Section 5.06 or a copy of the notice published by the chief
2-62     appraiser under Section 41.70 is sufficient to comply with the
2-63     requirement that the notice include the information specified by
2-64     Subsection (b)(6) [(b)(7)] or (f)(3) [(i)(3)], as applicable.
2-65           (i) [(k)]  The chief appraiser shall include with a notice
2-66     required by Subsection (a) or (f) [(i)]:
2-67                 (1)  a copy of a notice of protest form as prescribed
2-68     by the comptroller under Section 41.44(d); and
2-69                 (2)  instructions for completing and mailing the form
 3-1     to the appraisal review board and requesting a hearing on the
 3-2     protest.
 3-3           SECTION 2.  This Act takes effect January 1, 2000.
 3-4           SECTION 3.  The importance of this legislation and the
 3-5     crowded condition of the calendars in both houses create an
 3-6     emergency and an imperative public necessity that the
 3-7     constitutional rule requiring bills to be read on three several
 3-8     days in each house be suspended, and this rule is hereby suspended.
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