By Berman H.B. No. 277
77R43 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the repeal of the additional ad valorem taxes imposed
1-3 as a result of certain changes in the use of open-space land
1-4 appraised as agricultural land.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 23.20(g), Tax Code, is amended to read as
1-7 follows:
1-8 (g) A waiver of a special appraisal of property under
1-9 Subchapter C, [D,] E, F, or G of this chapter does not constitute a
1-10 change of use of the property or diversion of the property to
1-11 another use for purposes of the imposition of additional taxes
1-12 under any of those subchapters.
1-13 SECTION 2. Section 23.52(e), Tax Code, is amended to read as
1-14 follows:
1-15 (e) The [For the purposes of Section 23.55 of this code,
1-16 the] chief appraiser [also] shall determine the market value of
1-17 qualified open-space land and shall record both the market value
1-18 and the appraised value in the appraisal records.
1-19 SECTION 3. Sections 23.58(c)-(e), Tax Code, are amended to
1-20 read as follows:
1-21 (c) [A provision in an instrument pertaining to a loan
1-22 secured by a lien in favor of the lender on land appraised
1-23 according to this subchapter that requires the borrower to make a
1-24 payment to protect the lender from loss because of the imposition
2-1 of additional taxes and interest under Section 23.55 is void unless
2-2 the provision:]
2-3 [(1) requires the borrower to pay into an escrow
2-4 account established by the lender an amount equal to the additional
2-5 taxes and interest that would be due under Section 23.55 if a
2-6 change of use occurred on January 1 of the year in which the loan
2-7 is granted or amended;]
2-8 [(2) requires the escrow account to bear interest to
2-9 be credited to the account monthly;]
2-10 [(3) permits the lender to apply money in the escrow
2-11 account to the payment of a bill for additional taxes and interest
2-12 under Section 23.55 before the loan is paid and requires the lender
2-13 to refund the balance remaining in the escrow account after the
2-14 bill is paid to the borrower; and]
2-15 [(4) requires the lender to refund the money in the
2-16 escrow account to the borrower on the payment of the loan.]
2-17 [(d) On the request of the borrower or the borrower's
2-18 representative, the assessor for each taxing unit shall compute the
2-19 additional taxes and interest that would be due that taxing unit
2-20 under Section 23.55 if a change of use occurred on January 1 of the
2-21 year in which the loan is granted or amended. The assessor may
2-22 charge a reasonable fee not to exceed the actual cost of making the
2-23 computation.]
2-24 [(e)] In this section, "lender" has the meaning assigned by
2-25 Section 23.47(e).
2-26 SECTION 4. Section 31.01(c), Tax Code, is amended to read as
2-27 follows:
3-1 (c) The tax bill or a separate statement accompanying the
3-2 tax bill shall:
3-3 (1) identify the property subject to the tax;
3-4 (2) state the appraised value, assessed value, and
3-5 taxable value of the property;
3-6 (3) if the property is land appraised as provided by
3-7 Subchapter C, [D,] E, or H, Chapter 23, state the market value and
3-8 the taxable value for purposes of deferred or additional taxation
3-9 as provided by Section 23.46, [23.55,] 23.76, or 23.9807, as
3-10 applicable;
3-11 (4) if the property is land appraised as provided by
3-12 Subchapter D, Chapter 23, state the market value of the land;
3-13 (5) [(4)] state the assessment ratio for the unit;
3-14 (6) [(5)] state the type and amount of any partial
3-15 exemption applicable to the property, indicating whether it applies
3-16 to appraised or assessed value;
3-17 (7) [(6)] state the total tax rate for the unit;
3-18 (8) [(7)] state the amount of tax due, the due date,
3-19 and the delinquency date;
3-20 (9) [(8)] explain the payment option and discounts
3-21 provided by Sections 31.03 and 31.05, if available to the unit's
3-22 taxpayers, and state the date on which each of the discount periods
3-23 provided by Section 31.05 concludes, if the discounts are
3-24 available;
3-25 (10) [(9)] state the rates of penalty and interest
3-26 imposed for delinquent payment of the tax;
3-27 (11) [(10)] include the name and telephone number of
4-1 the assessor for the unit and, if different, of the collector for
4-2 the unit; and
4-3 (12) [(11)] include any other information required by
4-4 the comptroller.
4-5 SECTION 5. Section 41.41(a), Tax Code, is amended to read as
4-6 follows:
4-7 (a) A property owner is entitled to protest before the
4-8 appraisal review board the following actions:
4-9 (1) determination of the appraised value of the
4-10 owner's property or, in the case of land appraised as provided by
4-11 Subchapter C, D, E, or H, Chapter 23, determination of its
4-12 appraised or market value;
4-13 (2) unequal appraisal of the owner's property;
4-14 (3) inclusion of the owner's property on the appraisal
4-15 records;
4-16 (4) denial to the property owner in whole or in part
4-17 of a partial exemption;
4-18 (5) determination that the owner's land does not
4-19 qualify for appraisal as provided by Subchapter C, D, E, or H,
4-20 Chapter 23;
4-21 (6) identification of the taxing units in which the
4-22 owner's property is taxable in the case of the appraisal district's
4-23 appraisal roll;
4-24 (7) determination that the property owner is the owner
4-25 of property;
4-26 (8) a determination that a change in use of land
4-27 appraised under Subchapter C, [D,] E, or H, Chapter 23, has
5-1 occurred; or
5-2 (9) any other action of the chief appraiser, appraisal
5-3 district, or appraisal review board that applies to and adversely
5-4 affects the property owner.
5-5 SECTION 6. Section 41.44(a), Tax Code, is amended to read as
5-6 follows:
5-7 (a) Except as provided by Subsections (b) and (c), to be
5-8 entitled to a hearing and determination of a protest, the property
5-9 owner initiating the protest must file a written notice of the
5-10 protest with the appraisal review board having authority to hear
5-11 the matter protested:
5-12 (1) before June 1 or not later than the 30th day after
5-13 the date that notice was delivered to the property owner as
5-14 provided by Section 25.19, whichever is later;
5-15 (2) in the case of a protest of a change in the
5-16 appraisal records ordered as provided by Subchapter A of this
5-17 chapter or by Chapter 25, not later than the 30th day after the
5-18 date notice of the change is delivered to the property owner; or
5-19 (3) in the case of a determination that a change in
5-20 the use of land appraised under Subchapter C, [D,] E, or H, Chapter
5-21 23, has occurred, not later than the 30th day after the date the
5-22 notice of the determination is delivered to the property owner.
5-23 SECTION 7. Section 23.55, Tax Code, is repealed.
5-24 SECTION 8. (a) This Act takes effect September 1, 2001.
5-25 (b) The repeal of Section 23.55, Tax Code, by this Act does
5-26 not affect an additional tax imposed as a result of a change of use
5-27 of land appraised under Subchapter D, Chapter 23, Tax Code, that
6-1 occurred before the effective date of this Act, and the former law
6-2 is continued in effect for purposes of that tax.