78S10015 SMH-F
By: Smith of Tarrant H.B. No. 15
A BILL TO BE ENTITLED
AN ACT
relating to the transfer of the powers and duties of the comptroller
of public accounts relating to state administration of the property
tax system to the State Board on Property Valuation or the
commissioner of the State Board on Property Valuation, as
applicable.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 1, Tax Code, is amended by adding Subtitle
G to read as follows:
SUBTITLE G. DETERMINATION OF SCHOOL DISTRICT PROPERTY VALUES
AND APPRAISAL DISTRICT ACCOUNTABILITY
CHAPTER 51. DETERMINATION OF SCHOOL DISTRICT PROPERTY VALUES AND
APPRAISAL DISTRICT ACCOUNTABILITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 51.01. PURPOSE. It is the policy of this state to
ensure equity among taxpayers in the burden of school district
taxes and among school districts in the distribution of state
financial aid for public education. The purpose of this chapter is
to promote that policy by providing for uniformity in local
property appraisal practices and procedures and in the
determination of property values for schools in order to distribute
state funding equitably.
Sec. 51.02. DEFINITIONS. In this chapter:
(1) "Annual study" means a study conducted under
Section 51.21.
(2) "Eligible school district" means a school district
for which the commissioner has determined the following:
(A) in the most recent annual study, the local
value is invalid under Section 51.21(c) and does not exceed the
state value for the school district determined in the annual study;
(B) in the annual study for each of the two years
preceding the most recent annual study, the school district's local
value was valid under Section 51.21(c); and
(C) in the most recent annual study, the
aggregate local value of all of the categories of property sampled
by the commissioner is not less than 90 percent of the lower limit
of the margin of error as determined by the commissioner of the
aggregate value as determined by the commissioner of all of the
categories of property sampled by the commissioner.
(3) "Local value" means the market value of property
in a school district as determined by the appraisal district that
appraises property for the school district, less the total amounts
and values listed in Section 51.21(d) as determined by that
appraisal district.
(4) "Ratio study" means a study conducted under
Section 51.41.
(5) "State value" means the value of property in a
school district as determined in the annual study.
[Sections 51.03-51.20 reserved for expansion]
SUBCHAPTER B. DETERMINATION OF SCHOOL DISTRICT PROPERTY VALUES
Sec. 51.21. DETERMINATION OF SCHOOL DISTRICT PROPERTY
VALUES. (a) The commissioner shall conduct an annual study to
determine the total taxable value of all property in each school
district. The annual study shall determine the total taxable value
of all property and of each category of property in each school
district. The annual study shall also determine the productivity
value of all land designated as agricultural, open-space, or timber
land under Chapter 23. The commissioner shall make appropriate
adjustments in the study to account for actions taken under Chapter
41, Education Code.
(b) In conducting the annual study, the commissioner shall
determine the taxable value of property in each school district:
(1) using, if appropriate, samples selected through
generally accepted sampling techniques;
(2) according to generally accepted standard
valuation, statistical compilation, and analysis techniques;
(3) ensuring that different levels of appraisal on
sold and unsold property do not adversely affect the accuracy of the
study; and
(4) using current technology and techniques in
appraising commercial personal property.
(c) If after conducting the annual study the commissioner
determines that the local value for a school district is valid, the
local value is presumed to represent taxable value for the school
district. In the absence of that presumption, taxable value for a
school district is the state value for the school district
determined by the commissioner under Subsections (a) and (b) unless
the local value exceeds the state value, in which case the taxable
value for the school district is the district's local value. In
determining whether the local value for a school district is valid,
the commissioner shall use a margin of error that does not exceed
five percent unless the commissioner determines that the size of
the sample of properties necessary to make the determination makes
the use of such a margin of error not feasible, in which case the
commissioner may use a larger margin of error.
(d) For purposes of this section, "taxable value" means the
market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c) in the
year that is the subject of the study for each school district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n) in
the year that is the subject of the study for each school district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e) before May 31, 1999, and within the
boundaries of the zone as those boundaries existed on September 1,
1999, including subsequent improvements to the property regardless
of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311 under a reinvestment zone financing
plan approved under Section 311.011(d) on or before September 1,
1999; and
(C) is eligible for tax increment financing under
Chapter 311;
(5) the total dollar amount of any exemptions granted
under Section 11.251;
(6) the difference between the commissioner's
determination of the market value and the productivity value of
land that qualifies for appraisal on the basis of its productive
capacity under Chapter 23;
(7) the portion of the appraised value of residence
homesteads of the elderly on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(8) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313;
(9) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(10) the appraised value of property for which the
collection of delinquent taxes is deferred under Section 33.06;
(11) the portion of the appraised value of property
for which the collection of delinquent taxes is deferred under
Section 33.065; and
(12) the amount by which the market value of a
residence homestead to which Section 23.23 applies exceeds the
appraised value of that property as calculated under that section.
(e) The total dollar amount deducted in each year as
required by Subsection (d)(4) in a reinvestment zone created after
January 1, 1999, may not exceed the captured appraised value
estimated for that year as required by Section 311.011(c)(8) in the
reinvestment zone financing plan approved under Section 311.011(d)
before September 1, 1999. The number of years for which the total
dollar amount may be deducted under Subsection (d)(4) shall for any
zone, including those created on or before January 1, 1999, be
limited to the duration of the zone as specified as required by
Section 311.011(c)(9) in the reinvestment zone financing plan
approved under Section 311.011(d) before September 1, 1999. The
total dollar amount deducted under Subsection (d)(4) for any zone,
including a zone created on or before January 1, 1999, may not be
increased by any reinvestment zone financing plan amendments that
occur after August 31, 1999. The total dollar amount deducted under
Subsection (d)(4) for any zone, including a zone created on or
before January 1, 1999, may not be increased by a change made after
August 31, 1999, in the portion of the tax increment retained by the
school district.
(f) The annual study shall determine the school district
values as of January 1 of each study year.
(g) If after conducting the annual study for the year 2003
or a subsequent year the commissioner determines that a school
district is an eligible school district, for that year and the
following year the taxable value for the school district is the
district's local value. Not later than the first anniversary of the
date of the determination that a school district is an eligible
school district, the commissioner shall complete an appraisal
standards review as provided by Section 51.42 of each appraisal
district that appraises property for the school district.
(g-1) If the commissioner determines in the annual study
conducted for the year 2002 that the taxable value for a school
district is the local value because the local value is invalid and
exceeds the state value, the commissioner of education shall
compute the amount by which the funding under Chapter 42, Education
Code, of the school district is reduced for the 2003-2004 school
year because of the use of local value rather than state value as
taxable value. The commissioner of education shall allocate an
amount equal to the amount of the reduction for that school year to
the school districts that receive funding under Chapter 42,
Education Code, whose taxable value for the applicable year is the
state value, and whose maintenance and operations tax rate for the
applicable year exceeds $1.42 on the $100 valuation of taxable
property. The allocation shall be made in proportion to the amount
of funding under Chapter 42, Education Code, that each of those
school districts would otherwise have received in that year. This
subsection expires September 30, 2004.
(h) The commissioner shall publish preliminary findings,
listing values by school district, before February 1 of the year
following the study year. Preliminary findings shall be delivered
to each school district and shall be certified to the commissioner
of education.
(i) For purposes of Section 42.2511, Education Code, the
commissioner shall certify to the commissioner of education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $5,000; and
(2) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution.
(j) For purposes of Section 42.2522, Education Code, the
commissioner shall certify to the commissioner of education:
(1) a final value for each school district computed
without any deduction for residence homestead exemptions granted
under Section 11.13(n); and
(2) a final value for each school district computed
after deducting one-half the total dollar amount of residence
homestead exemptions granted under Section 11.13(n).
Sec. 51.22. ADMINISTRATIVE AND JUDICIAL REVIEW. (a) A
school district, or a property owner whose property is included in
the annual study and whose tax liability on the property is $100,000
or more, may protest the commissioner's findings by filing a
petition with the commissioner. The petition must be filed not
later than the 40th day after the date on which the commissioner's
findings are certified to the commissioner of education and must
include specific pleadings stating the legal and appraisal issues
in dispute and the value claimed to be correct.
(b) On receipt of a petition, the commissioner shall hold a
hearing. The commissioner has the burden to prove the accuracy of
the findings. Until a final decision is made by the commissioner,
the taxable value of property in the district is determined, with
respect to the property subject to the protest, according to the
value of the property claimed by the school district or property
owner, except that the value to be used while a final decision is
pending may not be less than the value of the property as listed on
the school district's appraisal roll for the year of the study. If
after the hearing the commissioner concludes that the findings
should be changed, the commissioner shall order the appropriate
changes and shall certify the changes to the commissioner of
education. The commissioner shall complete all protest hearings
and certify all changes as necessary to comply with Chapter 42,
Education Code. A hearing conducted under this subsection is not a
contested case for purposes of Section 2001.003, Government Code.
(c) The commissioner shall adopt procedural rules governing
the conduct of protest hearings. The rules shall provide for each
protesting school district and property owner to:
(1) be informed of the requirements for submitting a
petition initiating a protest;
(2) receive adequate notice of a hearing;
(3) have an opportunity to present evidence and oral
argument; and
(4) be given notice by the commissioner of the
commissioner's decision on the hearing.
(d) A protesting school district may appeal a determination
of protest by the commissioner to a district court in Travis County
by filing a petition with the court. An appeal must be filed not
later than the 30th day after the date the school district receives
notice from the commissioner of the determination. Review is
conducted by the court sitting without a jury. The court shall
remand the determination to the commissioner if on review the court
discovers that substantial rights of the school district have been
prejudiced and that:
(1) the commissioner has acted arbitrarily and without
regard to the facts; or
(2) the determination of the commissioner is not
reasonably supported by substantial evidence introduced before the
court.
Sec. 51.23. AUDIT. (a) On request of a school district or
the commissioner of education, the commissioner may audit the total
taxable value of property in a school district and may revise the
annual study findings. The request for audit is limited to
corrections and changes in a school district's appraisal roll that
occurred after preliminary certification of the annual study
findings by the commissioner.
(b) Except as provided by Subsection (c), the request for
audit must be filed with the commissioner not later than the third
anniversary of the date of the final certification of the annual
study findings.
(c) The request for audit may be filed not later than the
first anniversary of the date the chief appraiser certifies a
change to the appraisal roll if:
(1) the chief appraiser corrects the appraisal roll
under Section 25.25 or 42.41; and
(2) the change results in a material reduction in the
total taxable value of property in the school district.
(d) The commissioner shall certify the findings of the audit
to the commissioner of education.
Sec. 51.24. CONFIDENTIALITY. (a) All information the
commissioner obtains from a person, other than a governmental
entity, under an assurance that the information will be kept
confidential, in the course of conducting the annual study is
confidential and may not be disclosed, except as provided by
Subsection (b).
(b) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who gave the information to the
commissioner; or
(3) for statistical purposes if in a form that does not
identify specific property or a specific owner.
[Sections 51.25-51.40 reserved for expansion]
SUBCHAPTER C. DETERMINATION OF APPRAISAL DISTRICT ACCOUNTABILITY
Sec. 51.41. APPRAISAL DISTRICT RATIO STUDY. (a) The
commissioner shall conduct a study in each appraisal district for
each tax year to determine the degree of uniformity of and the
median level of appraisals by the appraisal district within each
major category of property for that tax year. In conducting the
study, the commissioner shall apply appropriate standard
statistical analysis techniques to data collected as part of the
annual study of school district property values required by Section
51.21.
(b) The commissioner shall publish a report of the findings
of the study, including the median level of appraisal for each major
category of property, the coefficient of dispersion around the
median level of appraisal for each major category of property, and
any other standard statistical measure that the commissioner
considers appropriate. A copy of the published report of the
commissioner shall be distributed to each member of the legislature
and to each appraisal district.
(c) In conducting a study under this section, the
commissioner or the commissioner's authorized representatives may
enter the premises of a business, trade, or profession and inspect
the property to determine the existence and market value of
property used for the production of income. An inspection under
this subsection must be made during normal business hours or at a
time mutually agreeable to the commissioner or the commissioner's
authorized representatives and the person in control of the
premises.
Sec. 51.42. APPRAISAL STANDARDS REVIEW. (a) The
commissioner shall review the appraisal standards, procedures, and
methodology used by each appraisal district that appraises property
for an eligible school district to determine compliance with
generally accepted appraisal standards and practices. The
commissioner by rule may establish procedures and standards for
conducting the review.
(b) In conducting the review, the commissioner is entitled
to access to all records and reports of the appraisal district and
to the assistance of the appraisal district's officers and
employees.
(c) If the review results in a finding that an appraisal
district is not in compliance with generally accepted appraisal
standards and practices, the commissioner shall deliver a report
that details the commissioner's findings and recommendations for
improvement to:
(1) the appraisal district's chief appraiser and board
of directors; and
(2) the superintendent and board of trustees of each
school district participating in the appraisal district.
(d) If the appraisal district fails to comply with the
recommendations in the report and the commissioner finds that the
board of directors of the appraisal district failed to take
remedial action before the first anniversary of the date the report
was issued, the commissioner shall notify the judge of each
district court in the county for which the appraisal district is
established, who shall appoint a board of conservators consisting
of five members to implement the recommendations. The board of
conservators shall exercise supervision and control over the
operations of the appraisal district until the commissioner
determines under Section 51.21 that in the same year the taxable
value of each school district for which the appraisal district
appraises property is the local value for the district. The
appraisal district shall bear the costs related to the supervision
and control of the district by the board of conservators.
Sec. 51.43. APPRAISAL DISTRICT PERFORMANCE AUDITS. (a)
The commissioner shall audit the performance of an appraisal
district if one or more of the following conditions exist according
to each of two consecutive ratio studies conducted under Section
51.41, regardless of whether the prescribed condition or conditions
that exist are the same for each of those studies:
(1) the overall median level of appraisal for all
property in the district for which the commissioner determines a
median level of appraisal is less than 0.75;
(2) the coefficient of dispersion around the overall
median level of appraisal of the properties used to determine the
overall median level of appraisal for all property in the district
for which the commissioner determines a median level of appraisal
is more than 0.30; or
(3) the difference between the median levels of
appraisal for any two classes of property in the district for which
the commissioner determines a median level of appraisal is more
than 0.45.
(b) At the written request of the governing bodies of a
majority of the taxing units participating in an appraisal district
or of a majority of the taxing units entitled to vote on the
appointment of appraisal district directors, the commissioner
shall audit the performance of the appraisal district. The
governing bodies may request a general audit of the performance of
the appraisal district or may request an audit of only one or more
specific duties, practices, functions, departments, or other
appraisal district matters.
(c) At the written request of the owners of not less than 10
percent of the number of accounts or parcels of property in an
appraisal district belonging to a single class of property, if the
class constitutes at least five percent of the appraised value of
taxable property within the district in the preceding year, or at
the written request of the owners of property representing not less
than 10 percent of the appraised value of all property in the
district belonging to a single class of property, if the class
constitutes at least five percent of the appraised value of taxable
property in the district in the preceding year, the commissioner
shall audit the performance of the appraisal district. The
property owners may request a general audit of the performance of
the appraisal district or may request an audit of only one or more
specific duties, practices, functions, departments, or other
appraisal district matters. A property owner may authorize an
agent to sign a request for an audit under this subsection on the
property owner's behalf. The commissioner may require a person
signing a request for an audit to provide proof that the person is
entitled to sign the request as a property owner or as the agent of a
property owner.
(d) A request for a performance audit of an appraisal
district may not be made under Subsection (b) or (c) if according to
each of the two most recently published ratio studies conducted by
the commissioner under Section 51.41:
(1) the overall median level of appraisal for all
property in the district for which the commissioner determines a
median level of appraisal is more than 0.90 and less than 1.10;
(2) the coefficient of dispersion around the overall
median level of appraisal of the properties used to determine the
overall median level of appraisal for all property in the district
for which the commissioner determines a median level of appraisal
is less than 0.15; and
(3) the difference between the highest and lowest
median levels of appraisal in the district for the classes of
property for which the commissioner determines a median level of
appraisal is less than 0.20.
(e) A request for a performance audit of an appraisal
district may not be made under Subsection (b) or (c):
(1) during the two years following the publication of
the second of two consecutive ratio studies according to which the
commissioner is required to conduct an audit of the district under
Subsection (a); or
(2) during the year immediately following the date the
results of an audit of the district conducted by the commissioner
under Subsection (a) are reported to the chief appraiser of the
district.
(f) For purposes of this section, "class of property" means
a major kind of property for which the commissioner determines a
median level of appraisal under Section 51.41.
(g) In addition to the performance audits required by
Subsections (a), (b), and (c) and the appraisal standards review
required by Section 51.42, the commissioner may audit an appraisal
district to analyze the effectiveness and efficiency of the
policies, management, and operations of the appraisal district.
The results of the audit shall be delivered in a report that details
the commissioner's findings and recommendations for improvement to
the appraisal district's chief appraiser and board of directors and
the governing body of each taxing unit participating in the
appraisal district. The commissioner may require reimbursement by
the appraisal district for some or all of the costs of the audit,
not to exceed the actual costs associated with conducting the
audit.
Sec. 51.44. ADMINISTRATION OF PERFORMANCE AUDITS. (a) The
commissioner shall complete an audit required by Section 51.43(a)
not later than the second anniversary of the date of the publication
of the second of the two ratio studies the results of which required
the audit to be conducted. The commissioner shall complete an audit
requested under Section 51.43(b) or (c) as soon as practicable
after the request is made. The commissioner shall complete an audit
conducted under Section 51.43(g) not later than the first
anniversary of the date that it is initiated by the commissioner.
(b) The commissioner may not audit the financial condition
of an appraisal district or a district's tax collections. If the
request is for an audit limited to one or more particular matters,
the commissioner's audit must be limited to those matters.
(c) The commissioner must approve the specific plan for the
performance audit of an appraisal district. Before approving an
audit plan, the commissioner must provide any interested person an
opportunity to appear before the commissioner and to comment on the
proposed plan. Not later than the 20th day before the date the
commissioner considers the plan for an appraisal district
performance audit, the commissioner must notify the presiding
officer of the appraisal district's board of directors that the
commissioner intends to consider the plan. The notice must include
the time, date, and location of the meeting to consider the plan.
Immediately after receiving the notice, the presiding officer shall
deliver a copy of the notice to the other members of the appraisal
district's board of directors.
(d) In conducting a general audit, the commissioner shall
consider and report on:
(1) the extent to which the district complies with
applicable law and generally accepted standards of appraisal or
other relevant practice;
(2) the uniformity and level of appraisal of major
kinds of property and the cause of any significant deviation from
ideal uniformity and equality of appraisal of major kinds of
property;
(3) duplication of effort and efficiency of operation;
(4) the general efficiency, quality of service, and
qualification of appraisal district personnel; and
(5) except as otherwise provided by Subsection (b),
any other matter included in the request for the audit.
(e) In conducting the audit, the commissioner is entitled to
have access at all times to the books, appraisal and other records,
reports, vouchers, and other information, confidential or not, of
the appraisal district. The commissioner may require the
assistance of appraisal district officers and employees that does
not interfere significantly with the ordinary functions of the
appraisal district. The commissioner may rely on any previous
analysis the commissioner has made relating to the appraisal
district if the previous analysis is useful or relevant to the
audit.
(f) The commissioner shall report the results of the audit
in writing to the governing body of each taxing unit that
participates in the appraisal district, to the chief appraiser, and
to the presiding officer of the appraisal district's board of
directors. If the audit was requested under Section 51.43(c), the
commissioner shall also provide a report to a representative of the
property owners who requested the audit.
(g) If the audit is required or requested under Section
51.43(a) or (b), the appraisal district shall reimburse the
commissioner for the costs incurred in conducting the audit and
making the commissioner's report of the audit. The costs shall be
allocated among the taxing units participating in the district in
the same manner as an operating expense of the district. If the
audit is requested under Section 51.43(c), the property owners who
requested the audit shall reimburse the commissioner for the costs
incurred in conducting the audit and making the report of the audit
and shall allocate the costs among those property owners in
proportion to the appraised value of each property owner's property
in the district or on any other basis agreed to by the property
owners. If the audit confirms that the median level of appraisal
for a class of property exceeds 1.10 or that the median level of
appraisal for a class of property varies at least 10 percent from
the overall median level of appraisal for all property in the
district for which the commissioner determines a median level of
appraisal, not later than the 90th day after the date a request is
made by the property owners for reimbursement the appraisal
district shall reimburse the property owners who requested the
audit for the amount paid to the commissioner for the costs incurred
in conducting the audit and making the report. Before conducting an
audit under Section 51.43(c), the commissioner may require the
requesting property owners to provide the commissioner with a bond,
deposit, or other financial security sufficient to cover the
projected costs of conducting the audit and making the report. For
purposes of this subsection, "costs" include expenses related to
salaries, professional fees, travel, reproduction or other
printing services, and consumable supplies that are directly
attributable to conducting the audit.
(h) At any time after the request for an audit is made, the
commissioner may discontinue the audit in whole or in part if
requested to do so by:
(1) the governing bodies of a majority of the taxing
units participating in the district, if the audit was requested by a
majority of those units;
(2) the governing bodies of a majority of the taxing
units entitled to vote on the appointment of appraisal district
directors, if the audit was requested by a majority of those units;
or
(3) if the audit was requested under Section 51.43(c),
by the property owners who requested the audit.
(i) The commissioner by rule may adopt procedures, audit
standards, and forms for the administration of performance audits.
Sec. 51.45. ADMINISTRATIVE PROVISIONS. (a) The
commissioner may inspect the records or other materials of an
appraisal district or taxing unit, including relevant records and
materials in the possession or control of a consultant, advisor, or
expert hired by the appraisal district or taxing unit, for the
purpose of conducting an annual study, ratio study, appraisal
standards review, or performance audit required or authorized by
this chapter.
(b) On request of the commissioner, the appraisal district
or administrative officer of the taxing unit shall produce the
records or other materials in the form and manner prescribed by the
commissioner.
(c) The commissioner shall prescribe a uniform record
system to be used by all appraisal districts for the purpose of
submitting data to be used in the annual study and ratio study. The
record system shall include a compilation of information concerning
sales of real property within the boundaries of the appraisal
district. The sales information maintained in the uniform record
system shall be submitted annually in a form prescribed by the
commissioner.
SECTION 2. If the constitutional amendment proposed by
H.J.R. No. 21, Acts of the 78th Legislature, Regular Session, 2003,
is approved by the voters, Section 51.21(d), Tax Code, as added by
this Act, is amended effective January 1, 2004, to read as follows:
(d) For purposes of this section, "taxable value" means the
market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c) in the
year that is the subject of the study for each school district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n) in
the year that is the subject of the study for each school district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e) before May 31, 1999, and within the
boundaries of the zone as those boundaries existed on September 1,
1999, including subsequent improvements to the property regardless
of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311 under a reinvestment zone financing
plan approved under Section 311.011(d) on or before September 1,
1999; and
(C) is eligible for tax increment financing under
Chapter 311;
(5) the total dollar amount of any exemptions granted
under Section 11.251;
(6) the difference between the commissioner's
determination of the market value and the productivity value of
land that qualifies for appraisal on the basis of its productive
capacity under Chapter 23;
(7) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26 [the elderly] on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(8) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313;
(9) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(10) the appraised value of property for which the
collection of delinquent taxes is deferred under Section 33.06;
(11) the portion of the appraised value of property
for which the collection of delinquent taxes is deferred under
Section 33.065; and
(12) the amount by which the market value of a
residence homestead to which Section 23.23 applies exceeds the
appraised value of that property as calculated under that section.
SECTION 3. Section 13.051(c), Education Code, is amended to
read as follows:
(c) Territory that does not have residents may be detached
from a school district and annexed to another school district if:
(1) the total taxable value of the property in the
territory according to the most recent certified appraisal roll for
each school district is not greater than:
(A) five percent of the district's taxable value
of all property in that district as determined under Subchapter B,
Chapter 51, Tax [Subchapter M, Chapter 403, Government] Code; and
(B) $5,000 property value per student in average
daily attendance as determined under Section 42.005; and
(2) the school district from which the property will
be detached does not own any real property located in the territory.
SECTION 4. Section 13.231(b), Education Code, is amended to
read as follows:
(b) In this section, "taxable value" has the meaning
assigned by Section 51.21, Tax [403.302, Government] Code.
SECTION 5. Section 41.001(2), Education Code, is amended to
read as follows:
(2) "Wealth per student" means the taxable value of
property, as determined under Subchapter B, Chapter 51, Tax
[Subchapter M, Chapter 403, Government] Code, divided by the number
of students in weighted average daily attendance.
SECTION 6. Section 41.002(f), Education Code, is amended to
read as follows:
(f) For purposes of Subsection (e), a school district's
effective tax rate is determined by dividing the total amount of
taxes collected by the district for the applicable school year less
any amounts paid into a tax increment fund under Chapter 311, Tax
Code, by the quotient of the district's taxable value of property,
as determined under Subchapter B, Chapter 51, Tax [Subchapter M,
Chapter 403, Government] Code, divided by 100.
SECTION 7. Section 41.005, Education Code, is amended to
read as follows:
Sec. 41.005. [COMPTROLLER AND APPRAISAL DISTRICT]
COOPERATION. The chief appraiser of each appraisal district and
the commissioner of the State Board on Property Valuation
[comptroller] shall cooperate with the commissioner and school
districts in implementing this chapter.
SECTION 8. Section 41.202(a), Education Code, is amended to
read as follows:
(a) For purposes of this subchapter, the taxable value of an
individual parcel or other item of property and the total taxable
value of property in a school district resulting from the
detachment of property from or annexation of property to that
district is determined by applying the appraisal ratio for the
appropriate category of property determined under Subchapter B,
Chapter 51, Tax [Subchapter M, Chapter 403, Government] Code, for
the preceding tax year to the taxable value of the detached or
annexed property determined under Title 1, Tax Code, for the
preceding tax year.
SECTION 9. Section 42.106, Education Code, as amended by
Section 2, H.B. No. 1619, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
Sec. 42.106. ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT
OFFERING ALL GRADE LEVELS. For purposes of this chapter, the
taxable value of property of a school district that contracts for
students residing in the district to be educated in another
district under Section 25.039(a) is adjusted by applying the
formula:
ADPV = DPV - (TN/.015)
where:
"ADPV" is the district's adjusted taxable value of property;
"DPV" is the taxable value of property in the district for the
preceding tax year determined under Subchapter B, Chapter 51, Tax
[Subchapter M, Chapter 403, Government] Code; and
"TN" is the total amount of tuition required to be paid by the
district under Section 25.039 for the school year for which the
adjustment is made, not to exceed the amount specified by
commissioner rule under Section 25.039(b).
SECTION 10. Section 42.2511, Education Code, is amended to
read as follows:
Sec. 42.2511. ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION.
(a) Notwithstanding any other provision of this chapter, a school
district is entitled to additional state aid to the extent that
state aid under this chapter based on the determination of the
school district's taxable value of property as provided under
Subchapter B, Chapter 51, Tax [Subchapter M, Chapter 403,
Government] Code, does not fully compensate the district for ad
valorem tax revenue lost due to the increase in the homestead
exemption under Section 1-b(c), Article VIII, Texas Constitution,
as proposed by H.J.R. No. 4, 75th Legislature, Regular Session,
1997, and the additional limitation on tax increases under Section
1-b(d), Article VIII, Texas Constitution, as proposed by H.J.R. No.
4, 75th Legislature, Regular Session, 1997.
(b) The commissioner, using information provided by the
commissioner of the State Board on Property Valuation
[comptroller], shall compute the amount of additional state aid to
which a district is entitled under this section. A determination by
the commissioner under this section is final and may not be
appealed.
SECTION 11. Sections 42.252(a) and (c), Education Code, are
amended to read as follows:
(a) Each school district's share of the Foundation School
Program is determined by the following formula:
LFA = TR X DPV
where:
"LFA" is the school district's local share;
"TR" is a tax rate which for each hundred dollars of valuation
is an effective tax rate of $0.86; and
"DPV" is the taxable value of property in the school district
for the preceding tax year determined under Subchapter B, Chapter
51, Tax [Subchapter M, Chapter 403, Government] Code.
(c) Appeals of district values shall be held pursuant to
Section 51.22, Tax [403.303, Government] Code.
SECTION 12. Sections 42.2522(a) and (d), Education Code,
are amended to read as follows:
(a) In any school year, the commissioner may not provide
funding under this chapter based on a school district's taxable
value of property computed in accordance with Section 51.21(d)(2),
Tax [403.302(d)(2), Government] Code, unless:
(1) funds are specifically appropriated for purposes
of this section; or
(2) the commissioner determines that the total amount
of state funds appropriated for purposes of the Foundation School
Program for the school year exceeds the amount of state funds
distributed to school districts in accordance with Section 42.253
based on the taxable values of property in school districts
computed in accordance with Section 51.21(d), Tax [403.302(d),
Government] Code, without any deduction for residence homestead
exemptions granted under Section 11.13(n), Tax Code.
(d) If the commissioner determines that the amount of funds
available under Subsection (a)(1) or (2) does not at least equal the
total amount of state funding to which districts would be entitled
if state funding under this chapter were based on the taxable values
of property in school districts computed in accordance with Section
51.21(d)(2), Tax [403.302(d)(2), Government] Code, the
commissioner may, to the extent necessary, provide state funding
based on a uniform lesser fraction of the deduction under Section
51.21(d)(2), Tax [403.302(d)(2), Government] Code.
SECTION 13. Section 42.253(h), Education Code, is amended
to read as follows:
(h) If the legislature fails during the regular session to
enact the transfer and appropriation proposed under Subsection (f)
and there are not funds available under Subsection (j), the
commissioner shall reduce the total amount of state funds allocated
to each district by an amount determined by a method under which the
application of the same number of cents of increase in tax rate in
all districts applied to the taxable value of property of each
district, as determined under Subchapter B, Chapter 51, Tax
[Subchapter M, Chapter 403, Government] Code, results in a total
levy equal to the total reduction. The following fiscal year, a
district's entitlement under this section is increased by an amount
equal to the reduction made under this subsection.
SECTION 14. Section 42.254, Education Code, is amended to
read as follows:
Sec. 42.254. ESTIMATES REQUIRED. (a) Not later than
October 1 of each even-numbered year:
(1) the agency shall submit to the legislature an
estimate of the tax rate and student enrollment of each school
district for the following biennium; and
(2) the commissioner of the State Board on Property
Valuation [comptroller] shall submit to the legislature an estimate
of the total taxable value of all property in the state as
determined under Subchapter B, Chapter 51, Tax [Subchapter M,
Chapter 403, Government] Code, for the following biennium.
(b) The agency and the commissioner of the State Board on
Property Valuation [comptroller] shall update the information
provided to the legislature under Subsection (a) not later than
March 1 of each odd-numbered year.
SECTION 15. Section 42.257(a), Education Code, is amended
to read as follows:
(a) If the final determination of an appeal under Chapter
42, Tax Code, results in a reduction in the taxable value of
property that exceeds five percent of the total taxable value of
property in the school district for the same tax year determined
under Subchapter B, Chapter 51, Tax [Subchapter M, Chapter 403,
Government] Code, the commissioner shall request the commissioner
of the State Board on Property Valuation [comptroller] to adjust
the [its] taxable property value findings for that year consistent
with the final determination of the appraisal appeal.
SECTION 16. Section 42.302(a), Education Code, is amended
to read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount of
state support, subject only to the maximum amount under Section
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is $27.14
or a greater amount for any year provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment under Section
42.158, and 50 percent of the adjustment under Section 42.102, by
the basic allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter B, Chapter 51, Tax [Subchapter M, Chapter 403,
Government] Code, or, if applicable, under Section 42.2521, divided
by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter B, Chapter 51, Tax [Subchapter M,
Chapter 403, Government] Code, or, if applicable, under Section
42.2521, divided by 100.
SECTION 17. Section 46.003(a), Education Code, is amended
to read as follows:
(a) For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility. The amount of state support
is determined by the formula:
FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the greater of the number of students in average
daily attendance, as determined under Section 42.005, in the
district or 400;
"BTR" is the district's bond tax rate for the current year,
which is determined by dividing the amount budgeted by the district
for payment of eligible bonds by the quotient of the district's
taxable value of property as determined under Subchapter B, Chapter
51, Tax [Subchapter M, Chapter 403, Government] Code, or, if
applicable, Section 42.2521, divided by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter B, Chapter 51, Tax [Subchapter M,
Chapter 403, Government] Code, or, if applicable, Section 42.2521.
SECTION 18. Section 46.006(g), Education Code, is amended
to read as follows:
(g) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
B, Chapter 51, Tax [Subchapter M, Chapter 403, Government] Code,
or, if applicable, Section 42.2521, divided by the district's
average daily attendance as determined under Section 42.005.
SECTION 19. Section 46.032(a), Education Code, is amended
to read as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the number of students in average daily attendance,
as determined under Section 42.005, in the district;
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds by the quotient of the district's taxable
value of property as determined under Subchapter B, Chapter 51, Tax
[Subchapter M, Chapter 403, Government] Code, or, if applicable,
under Section 42.2521, divided by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter B, Chapter 51, Tax [Subchapter M,
Chapter 403, Government] Code, or, if applicable, under Section
42.2521.
SECTION 20. Sections 825.405(h) and (i), Government Code,
are amended to read as follows:
(h) This section does not apply to state contributions for
members employed by a school district in a school year if the
district's effective tax rate for maintenance and operation
revenues for the tax year that ended in the preceding school year
equals or exceeds 125 percent of the statewide average effective
tax rate for school district maintenance and operation revenues for
that tax year. For a tax year, the statewide average effective tax
rate for school district maintenance and operation revenues is the
tax rate that, if applied to the statewide total appraised value of
taxable property for every school district in the state determined
under Section 51.21, Tax Code [403.302], would produce an amount
equal to the statewide total amount of maintenance and operation
taxes imposed in the tax year for every school district in the
state.
(i) Not later than the seventh day after the final date the
commissioner of the State Board on Property Valuation [comptroller]
certifies to the commissioner of education changes to the property
value study conducted under Section 51.21, Tax Code [Subchapter M,
Chapter 403], the commissioner of the State Board on Property
Valuation [comptroller] shall certify to the Teacher Retirement
System of Texas:
(1) the effective tax rate for school district
maintenance and operation revenues for each school district in the
state for the immediately preceding tax year; and
(2) the statewide average effective tax rate for
school district maintenance and operation revenues for the
immediately preceding tax year.
SECTION 21. Section 61.040, Health and Safety Code, is
amended to read as follows:
Sec. 61.040. TAX INFORMATION. (a) The commissioner of the
State Board on Property Valuation [comptroller] shall give the
department information relating to[:
[(1)] the taxable value of property taxable by each
county and each county's applicable general revenue tax levy for
the relevant period.
(b) The comptroller shall give the department information
relating to[; and
[(2)] the amount of sales and use tax revenue received
by each county for the relevant period.
SECTION 22. Section 1151.1015, Occupations Code, as added
by Section 8, S.B. No. 276, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
Sec. 1151.1015. INTERAGENCY CONTRACT WITH STATE BOARD ON
PROPERTY VALUATION [COMPTROLLER]. (a) The board and the State
Board on Property Valuation [comptroller] shall provide under an
interagency contract for the State Board on Property Valuation
[comptroller] to provide administrative support to the board. The
contract must include terms for fees to be paid by the board to the
State Board on Property Valuation [comptroller] for services
provided under the contract.
(b) Under the interagency contract, the State Board on
Property Valuation [comptroller] shall provide to the board:
(1) information on the educational needs of and
opportunities for tax professionals;
(2) assistance with outreach efforts to inform
taxpayers of their rights and remedies;
(3) information on appraisal district enforcement
efforts; and
(4) assistance with administrative services,
including:
(A) payroll services;
(B) budgeting services;
(C) information technology support;
(D) human resources services; and
(E) other administrative services necessary for
the board to perform its powers and duties under this chapter.
SECTION 23. Section 1152.204(c), Occupations Code, as
amended by Section 12.012, S.B. No. 279, Acts of the 78th
Legislature, Regular Session, 2003, is amended to read as follows:
(c) The commission may recognize an educational program or
course:
(1) related to property tax consulting services; and
(2) offered or sponsored by a public provider or a
recognized private provider, including:
(A) the commissioner of the State Board on
Property Valuation [comptroller];
(B) the State Bar of Texas;
(C) the Texas Real Estate Commission;
(D) an institution of higher education that meets
program and accreditation standards comparable to those for public
institutions of higher education as determined by the Texas Higher
Education Coordinating Board; or
(E) a nonprofit and voluntary trade association,
institute, or organization:
(i) whose membership consists primarily of
persons who represent property owners in property tax or
transactional tax matters;
(ii) that has written experience and
examination requirements for membership or for granting
professional designation to its members; and
(iii) that subscribes to a code of
professional conduct or ethics.
SECTION 24. Section 1.04, Tax Code, is amended by amending
Subdivision (19) and adding Subdivision (20) to read as follows:
(19) "Commissioner" ["Comptroller"] means the
commissioner of the State Board on Property Valuation [Comptroller
of Public Accounts of the State of Texas].
(20) "Board" means the State Board on Property
Valuation.
SECTION 25. Effective January 1, 2005, Sections 1.085(e),
(f), and (g), Tax Code, as added by Section 1, S.B. No. 340, Acts of
the 78th Legislature, Regular Session, 2003, are amended to read as
follows:
(e) The commissioner [comptroller] by rule:
(1) shall prescribe acceptable media, formats,
content, and methods for the electronic transmission of notices
required by Section 25.19; and
(2) may prescribe acceptable media, formats, content,
and methods for the electronic transmission of other notices,
renditions, and applications.
(f) In an agreement entered into under this section, a chief
appraiser may select the medium, format, content, and method to be
used by the appraisal district from among those prescribed by the
commissioner [comptroller] under Subsection (e).
(g) Notwithstanding Subsection (a), if a property owner
whose property is included in 25 or more accounts in the appraisal
records of the appraisal district requests the chief appraiser to
enter into an agreement for the delivery of the notice required by
Section 25.19 in an electronic format, the chief appraiser must
enter into an agreement under this section for that purpose and
shall deliver the notice in accordance with an electronic medium,
format, content, and method prescribed by the commissioner
[comptroller] under Subsection (e).
SECTION 26. Section 1.111(h), Tax Code, is amended to read
as follows:
(h) The commissioner [comptroller] shall prescribe forms
and adopt rules to facilitate compliance with this section. The
commissioner [comptroller] shall include on any form used for
designation of an agent for a single-family residential property in
which the property owner resides the following statement in
boldfaced type:
"In some cases, you may want to contact your appraisal
district or other local taxing units for free information and/or
forms concerning your case before designating an agent."
SECTION 27. Chapter 5, Tax Code, is amended by adding
Sections 5.01 and 5.02 to read as follows:
Sec. 5.01. STATE BOARD ON PROPERTY VALUATION. (a) The
State Board on Property Valuation is established. The board
consists of five members appointed by the governor.
(b) Members of the board hold office for terms of six years,
with the terms of one or two members expiring March 1 of each
odd-numbered year.
(c) To be eligible to serve on the board, a person must:
(1) have been a resident of this state for at least 10
years; and
(2) possess knowledge, skill, and experience in
property tax administration, property appraisal, or school
finance.
(d) A person is not eligible to serve as a member of the
board if the person or the person's spouse:
(1) is registered with or certified by the Board of Tax
Professional Examiners;
(2) is employed by or participates in the management
of a school district, an appraisal district, the office of an
assessor or collector, or a business entity or other organization
that is substantially and directly affected by the activities of
the board or that does substantial business with the board; or
(3) uses or receives a substantial amount of tangible
goods, services, or funds from the board, other than compensation
or reimbursement authorized by law for board membership,
attendance, or expenses.
(e) Appointments to the board shall be made without regard
to the race, color, disability, sex, religion, age, or national
origin of the appointees.
(f) The governor shall designate one of the members of the
board to serve as presiding officer of the board. The presiding
officer serves in that capacity for a term of two years expiring on
March 1 of an odd-numbered year.
(g) The board shall maintain its principal office in Austin.
(h) The board shall meet at least once in each calendar
quarter and shall meet at other times at the call of the presiding
officer or as provided by the rules of the board.
(i) The board is subject to the open meetings law, Chapter
551, Government Code, and the administrative procedure law, Chapter
2001, Government Code.
(j) A member of the board may not receive compensation for
service on the board but is entitled to reimbursement for actual and
necessary expenses incurred in performing functions as a board
member, subject to any applicable limitation on reimbursement
provided by the General Appropriations Act.
(k) It is a ground for removal from the board if a member:
(1) violates a prohibition established by Subsection
(d);
(2) cannot because of illness or disability discharge
the member's duties for a substantial part of the term for which the
member is appointed; or
(3) is absent from more than half of the regularly
scheduled board meetings that the member is eligible to attend
during a calendar year unless the absence is excused by majority
vote of the board.
Sec. 5.02. BOARD PERSONNEL AND OPERATIONS. (a) The board
shall employ the commissioner, who shall administer board policies
and perform all duties as provided by law.
(b) The commissioner shall employ and supervise
professional, clerical, and other personnel necessary to perform
all duties as required by law, board policy, and direction of the
board or commissioner.
(c) The commissioner shall provide to board staff, as often
as necessary, information regarding their qualifications for
employment under this chapter and their responsibilities under
applicable laws relating to standards of conduct for state
employees.
(d) The comptroller, by interagency contract, may provide
support to the board for payroll, human resources, computer
maintenance and technical assistance, printing and distribution of
publications, and similar administrative services.
SECTION 28. Section 5.03, Tax Code, is amended to read as
follows:
Sec. 5.03. POWERS AND DUTIES GENERALLY. (a) The board
[comptroller] shall adopt rules establishing minimum standards for
the administration and operation of an appraisal district. The
minimum standards may vary according to the number of parcels and
the kinds of property the district is responsible for appraising.
(b) The board [comptroller] may require from each district
engaged in appraising property for taxation an annual report on a
form prescribed by the commissioner [comptroller] on the
administration and operation of the appraisal office.
(c) The board [comptroller] may contract with consultants
to assist in performance of the duties imposed by this chapter.
(d) The board is responsible for ensuring that the
commissioner performs the duties required by law of the
commissioner.
(e) The board has the powers necessary to carry out its
powers and duties under this title.
(f) The board may:
(1) adopt rules necessary to carry out the board's
powers and duties under this title;
(2) sue and be sued;
(3) enter into contracts and other necessary
instruments;
(4) impose administrative fees and charges for the
costs of publications;
(5) purchase liability insurance covering the board
and employees and agents of the board; and
(6) establish other policies, procedures, and
eligibility criteria necessary to carry out the board's powers and
duties under this title.
SECTION 29. Section 5.04(a), Tax Code, is amended to read as
follows:
(a) The commissioner [comptroller] shall consult and
cooperate with the Board of Tax Professional Examiners or any
successor agency responsible for certifying tax professionals in
this state in setting standards for and approving curricula and
materials for use in training and educating appraisers and
assessor-collectors, and the commissioner [comptroller] may
cooperate with the board or with other public agencies, educational
institutions, or private organizations in sponsoring courses of
instruction and training programs.
SECTION 30. Sections 5.041(a), (c), (d), and (f), Tax Code,
are amended to read as follows:
(a) The board [comptroller] shall:
(1) approve curricula and provide materials for use in
training and educating members of an appraisal review board; and
(2) supervise a course for training and education of
appraisal review board members and issue certificates indicating
course completion.
(c) The board [comptroller] may contract with service
providers to assist with the duties imposed under Subsection (a),
but the course required may not be provided by an appraisal district
or a taxing unit. The board [comptroller] may assess a fee to
recover a portion of the costs incurred for the training course, but
the fee may not exceed $50 per person trained.
(d) The course material for the course required under
Subsection (a) is the [comptroller's] Appraisal Review Board Manual
prepared by the commissioner in use on the effective date of this
section. The manual shall be updated regularly. It may be revised
on request, in writing, to the board [comptroller]. The revision
language must be approved on the unanimous agreement of a committee
selected by the board [comptroller] and representing, equally,
taxpayers and chief appraisers. The person requesting the revision
shall pay the costs of mediation if the board [comptroller]
determines that mediation is required.
(f) The commissioner [comptroller] may not advise a
property owner, a property owner's agent, an appraisal district, or
an appraisal review board on a matter that the commissioner
[comptroller] knows is the subject of a protest to the appraisal
review board.
SECTION 31. Sections 5.05(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) The commissioner [comptroller] shall prepare and issue:
(1) a general appraisal manual;
(2) special appraisal manuals;
(3) cost, price, and depreciation schedules, with
provision for inserting local market index factors and with a
standard procedure for determining local market index factors;
(4) news and reference bulletins;
(5) annotated digests of all laws relating to property
taxation; and
(6) a handbook of all rules promulgated by the board or
commissioner [comptroller] relating to the property tax and its
administration.
(b) The commissioner [comptroller] shall revise or
supplement all materials periodically as necessary to keep them
current.
(c) The commissioner [comptroller] shall provide without
charge one copy of all materials to officials of local government
who are responsible for administering the property tax system. If a
local government official requests more than one copy, the
commissioner [comptroller] may charge a reasonable fee to offset
the costs of printing and distributing the materials. The
commissioner [comptroller] shall make the materials available to
members of the public but may charge a reasonable fee to offset the
costs of printing and distributing the materials.
SECTION 32. Sections 5.06, 5.07, 5.08, 5.09, 5.101, 5.14,
and 5.16, Tax Code, are amended to read as follows:
Sec. 5.06. EXPLANATION OF TAXPAYER REMEDIES. (a) The
commissioner [comptroller] shall prepare and publish a pamphlet
explaining the remedies available to dissatisfied taxpayers and the
procedures to be followed in seeking remedial action. The
commissioner [comptroller] shall include in the pamphlet advice on
preparing and presenting a protest.
(b) The commissioner [comptroller] shall provide without
charge a reasonable number of copies of the pamphlet to any person
on request. The commissioner [comptroller] may charge a person who
requests multiple copies of the pamphlet a reasonable fee to offset
the costs of printing and distributing those copies. The
commissioner [comptroller] at its discretion shall determine the
number of copies that a person may receive without charge.
Sec. 5.07. PROPERTY TAX FORMS AND RECORDS SYSTEMS. (a) The
commissioner [comptroller] shall prescribe the contents of all
forms necessary for the administration of the property tax system
and on request shall furnish sufficient copies of model forms of
each type to the appropriate local officials. The commissioner
[comptroller] may require reimbursement for the costs of printing
and distributing the forms.
(b) The commissioner [comptroller] shall make the contents
of the forms uniform to the extent practicable but may prescribe or
approve additional or substitute forms for special circumstances.
(c) The commissioner [comptroller] shall also prescribe a
uniform record system to be used by all appraisal districts [for the
purpose of submitting data to be used in the annual studies required
by Section 5.10 of this code and by Section 403.302, Government
Code. The record system shall include a compilation of information
concerning sales of real property within the boundaries of the
appraisal district. The sales information maintained in the
uniform record system shall be submitted annually in a form
prescribed by the comptroller].
Sec. 5.08. PROFESSIONAL AND TECHNICAL ASSISTANCE. (a) The
commissioner [comptroller] may provide professional and technical
assistance on request in appraising property, installing or
updating tax maps, purchasing equipment, developing recordkeeping
systems, or performing other appraisal activities. The
commissioner [comptroller] may also provide professional and
technical assistance on request to an appraisal review board. The
commissioner [comptroller] may require reimbursement for the costs
of providing the assistance.
(b) The commissioner [comptroller] may provide information
to and consult with persons actively engaged in appraising property
for tax purposes about any matter relating to property taxation
without charge.
Sec. 5.09. ANNUAL REPORTS. (a) The commissioner
[comptroller] shall publish an annual report of the operations of
the appraisal districts. The report shall include for each
appraisal district, each county, and each school district and may
include for other taxing units the total appraised values, assessed
values, and taxable values of taxable property by class of
property, the assessment ratio, and the tax rate.
(b) The commissioner [comptroller] shall deliver a copy of
each annual report published under Subsection (a) of this section
to the governor, the lieutenant governor, and each member of the
legislature.
Sec. 5.101. TECHNICAL ADVISORY COMMITTEE. (a) The board
[comptroller] shall appoint a technical advisory committee for the
purpose of providing professional and practical expertise to the
board [comptroller] and to review and comment on the methodology
used by the commissioner [comptroller] to conduct the annual
studies required by Section 51.21 and the ratio studies required by
Section 51.41 [Section 5.10 of this code and by Section 403.302,
Government Code]. A member of the committee serves at the will of
the board [comptroller].
(b) The committee shall:
(1) review the methodology used by the commissioner
[comptroller] to conduct the studies described in Subsection (a);
(2) make an annual report to the commissioner
[comptroller] that includes the committee's findings and
recommendations relating to the methodology used to conduct the
studies; and
(3) meet as often as necessary to perform its duties,
but not less often than semiannually.
(c) The board [comptroller] shall appoint the committee to
provide for a balanced representation of the general public and of
professionals affiliated with the entities affected by the studies.
(d) Each member of the committee must have expertise
sufficient to determine the accuracy of the [annual] studies and
the appropriateness of the methods used to develop the findings of
the studies.
(e) The board [comptroller] shall specify the committee's
purpose, powers, and duties and shall require the committee to
report to the board [comptroller] in a manner specified by the board
[comptroller] relating to the committee's activities and the
results of its work.
(f) A member of the committee may receive compensatory per
diem for serving on the committee and is entitled to reimbursement
for transportation expenses and the per diem meals and lodging
allowance as provided for the board [comptroller] and for
commission members in the General Appropriations Act.
(g) The commissioner [comptroller] shall make the
committee's annual report available to the public on request.
Sec. 5.14. PUBLIC ACCESS, INFORMATION, AND COMPLAINTS. (a)
The board [comptroller] shall develop and implement policies that
provide the public with a reasonable opportunity to submit
information on any property tax issue under the jurisdiction of the
board [comptroller].
(b) The board [comptroller] shall prepare and maintain a
written plan that describes how a person who does not speak English
or who has a physical, mental, or developmental disability may be
provided reasonable access to the board's [comptroller's] programs.
(c) The board [comptroller] shall prepare information of
public interest describing the property tax functions of the office
of the board [comptroller] and the board's [comptroller's]
procedures by which complaints are filed with and resolved by the
board [comptroller]. The board [comptroller] shall make the
information available to the public and appropriate state agencies.
(d) If a written complaint is filed with the board
[comptroller] that the board [comptroller] has authority to
resolve, the board [comptroller], at least quarterly and until
final disposition of the complaint, shall notify the parties to the
complaint of the status of the complaint unless notice would
jeopardize an undercover investigation.
(e) The board [comptroller] shall keep an information file
about each complaint filed with the board [comptroller] that the
board [comptroller] has authority to resolve.
Sec. 5.16. ADMINISTRATIVE PROVISIONS. (a) The
commissioner [comptroller] may inspect the records or other
materials of an appraisal office or taxing unit, including the
relevant records and materials in the possession or control of a
consultant, advisor, or expert hired by the appraisal office or
taxing unit, for the purpose of[:
[(1)] establishing, reviewing, or evaluating the
value of or an appraisal of any property[; or
[(2) conducting a study, review, or audit required by
Section 5.10 or 5.102 or by Section 403.302, Government Code].
(b) On request of the commissioner [comptroller], the chief
appraiser or administrative head of the taxing unit shall produce
the materials in the form and manner prescribed by the commissioner
[comptroller].
SECTION 33. Section 6.025(a), Tax Code, is amended to read
as follows:
(a) The chief appraisers of two or more appraisal districts
that have boundaries that include any part of the same territory
shall enter into a written understanding that, with respect to the
property located in the territory in which each of the districts has
appraisal jurisdiction:
(1) permits each appraiser to have access to and use
information appropriate to appraisals, including a record of an
exemption application, rendition, or other property owner report;
(2) eliminates differences in the information in
appraisal records of the districts, including information relating
to ownership of property, the description of property, and the
physical characteristics of property; and
(3) contains the form of a written advisory prescribed
by the commissioner [comptroller] informing the owners of property
that reports and other documents required of the owners must be
filed with or sent to each appraisal district and that the owners
should consider sending any other document relating to the property
to each appraisal district.
SECTION 34. Sections 6.28(b), (d), and (e), Tax Code, are
amended to read as follows:
(b) The bond for state taxes must be payable to the governor
and his successors in office in an amount equal to five percent of
the net state collections from motor vehicle sales and use taxes and
motor vehicle registration fees in the county during the year
ending August 31 preceding the date bond is given, except that the
amount of bond may not be less than $2,500 or more than $100,000. To
be effective, the bond must be approved by the commissioners court
of the county and the commissioner [state comptroller of public
accounts].
(d) The commissioner [state comptroller of public accounts]
or the commissioners court of the county may require a new bond for
state taxes at any time. The commissioners court may require a new
bond for county taxes at any time. However, the total amount of
state bonds or county bonds required of an assessor-collector may
not exceed $100,000 at one time. The commissioners court shall
suspend the assessor-collector from office and begin removal
proceedings if the assessor-collector [he] fails to give new bond
within a reasonable time after demand.
(e) The assessor-collector's official oath and bonds for
state and county taxes shall be recorded in the office of the county
clerk, and the county judge shall submit the bond for state taxes to
the commissioner [state comptroller of public accounts].
SECTION 35. Section 6.412(c), Tax Code, is amended to read
as follows:
(c) A person is ineligible to serve on the appraisal review
board if the person is a member of the board of directors, an
officer, or employee of the appraisal district, an employee of the
commissioner [comptroller], or a member of the governing body,
officer, or employee of a taxing unit.
SECTION 36. Section 11.11(b), Tax Code, is amended to read
as follows:
(b) Land owned by the Permanent University Fund is taxable
for county purposes. Any notice required by Section 25.19 of this
code shall be sent to the commissioner [comptroller], and the
commissioner [comptroller] shall appear in behalf of the state in
any protest or appeal relating to taxation of Permanent University
Fund land.
SECTION 37. Section 11.182(f), Tax Code, as added by
Chapter 842, Acts of the 77th Legislature, Regular Session, 2001,
is relettered and amended to read as follows:
(i) [(f)] If any property owned by an organization
receiving an exemption under this section has been acquired or sold
during the preceding year, such organization shall file by March 31
of the following year with the chief appraiser in the county in
which the relevant property is located, on a form promulgated by the
commissioner [comptroller of public accounts], a list of such
properties acquired or sold during the preceding year.
SECTION 38. Sections 11.252(c), (d), (i), and (j), Tax
Code, are amended to read as follows:
(c) The commissioner [comptroller] by rule shall establish
exemption application requirements and appropriate procedures to
determine whether a motor vehicle subject to a lease qualifies for
an exemption under Subsection (a).
(d) In connection with the requirements and procedures
under Subsection (c), the commissioner [comptroller] by rule shall
adopt a form to be completed by the lessee of a motor vehicle for
which the owner of the vehicle may apply for an exemption under
Subsection (a). The form shall require the lessee to provide the
lessee's name, address, and driver's license or personal
identification certificate number and to certify under oath that
the lessee does not hold the vehicle for the production of income
and that the vehicle is used primarily for activities that do not
involve the production of income. The commissioner [comptroller]
shall include on the form a notice of the penalties prescribed by
Section 37.10, Penal Code, for making a false statement on the form.
(i) In addition to the requirements of Subsections (c) and
(d), the commissioner [comptroller] by rule shall prescribe a
property report form to be completed by the lessor describing the
leased motor vehicles that the lessor owns. The property report
form shall require the lessor to list each leased vehicle the lessor
owns on January 1, to provide the year, make, model, and vehicle
identification number of each leased vehicle, and to provide the
name of the lessee, the address at which the vehicle is kept, and an
indication of whether the lessee has designated the vehicle as not
held for the production and not used for the production of income.
(j) The lessor shall provide the chief appraiser with the
completed property report form adopted by the commissioner
[comptroller] in the manner provided by Subchapter B, Chapter 22.
SECTION 39. Effective November 1, 2003, Section 11.26(e),
Tax Code, is amended to read as follows:
(e) For each school district in an appraisal district, the
chief appraiser shall determine the portion of the appraised value
of residence homesteads of the elderly on which school district
taxes are not imposed in a tax year because of the limitation on tax
increases imposed by this section. That portion is calculated by
determining the taxable value that, if multiplied by the tax rate
adopted by the school district for the tax year, would produce an
amount equal to the amount of tax that would have been imposed by
the school district on residence homesteads of the elderly if the
limitation on tax increases imposed by this section were not in
effect, but that was not imposed because of that limitation. The
chief appraiser shall determine that taxable value and certify it
to the commissioner [comptroller] as soon as practicable for each
tax year.
SECTION 40. If the constitutional amendment proposed by
H.J.R. No. 21, Acts of the 78th Legislature, Regular Session, 2003,
is approved by the voters, Section 11.26(e), Tax Code, as amended by
Section 2, H.B. No. 217, Acts of the 78th Legislature, Regular
Session, 2003, is amended effective January 1, 2004, to read as
follows:
(e) For each school district in an appraisal district, the
chief appraiser shall determine the portion of the appraised value
of residence homesteads of individuals on which school district
taxes are not imposed in a tax year because of the limitation on tax
increases imposed by this section. That portion is calculated by
determining the taxable value that, if multiplied by the tax rate
adopted by the school district for the tax year, would produce an
amount equal to the amount of tax that would have been imposed by
the school district on those residence homesteads if the limitation
on tax increases imposed by this section were not in effect, but
that was not imposed because of that limitation. The chief
appraiser shall determine that taxable value and certify it to the
commissioner [comptroller] as soon as practicable for each tax
year.
SECTION 41. Section 11.27(b), Tax Code, is amended to read
as follows:
(b) The commissioner [comptroller], with the assistance of
the Texas Energy and Natural Resources Advisory Council, or its
successor, shall develop guidelines to assist local officials in
the administration of this section.
SECTION 42. Section 11.43(f), Tax Code, is amended to read
as follows:
(f) The commissioner [comptroller], in prescribing the
contents of the application form for each kind of exemption, shall
ensure that the form requires an applicant to furnish the
information necessary to determine the validity of the exemption
claim. The form must require an applicant to provide the
applicant's name and driver's license number, personal
identification certificate number, or social security account
number. The commissioner [comptroller] shall include on the forms
a notice of the penalties prescribed by Section 37.10, Penal Code,
for making or filing an application containing a false statement.
The commissioner [comptroller] shall include, on application forms
for exemptions that do not have to be claimed annually, a statement
explaining that the application need not be made annually and that
if the exemption is allowed, the applicant has a duty to notify the
chief appraiser when the applicant's entitlement to the exemption
ends. In this subsection:
(1) "Driver's license" has the meaning assigned that
term by Section 521.001, Transportation Code.
(2) "Personal identification certificate" means a
certificate issued by the Department of Public Safety under
Subchapter E, Chapter 521, Transportation Code.
SECTION 43. Section 11.44(c), Tax Code, is amended to read
as follows:
(c) The commissioner [comptroller] shall prescribe by rule
the content of the explanation required by Subsection (a) [of this
section], and shall require that each exemption application form be
printed and prepared:
(1) as a separate form from any other form; or
(2) on the front of the form if the form also provides
for other information.
SECTION 44. Section 11.48(b), Tax Code, as added by Section
1, H.B. No. 500, Acts of the 78th Legislature, Regular Session,
2003, is amended to read as follows:
(b) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the application or to the
person's representative authorized in writing to receive the
information;
(3) to the commissioner [comptroller] and the
commissioner's [comptroller's] employees authorized by the
commissioner [comptroller] in writing to receive the information or
to an assessor or a chief appraiser if requested in writing;
(4) in a judicial or administrative proceeding
relating to property taxation to which the person who filed the
application is a party; or
(5) if and to the extent the information is required to
be included in a public document or record that the appraisal office
is required by law to prepare or maintain.
SECTION 45. Section 21.03(b), Tax Code, is amended to read
as follows:
(b) The commissioner [comptroller] shall adopt rules:
(1) identifying the kinds of property subject to this
section; and
(2) establishing formulas for calculating the
proportion of total market value to be allocated to this state.
SECTION 46. Sections 21.031(e) and (f), Tax Code, are
amended to read as follows:
(e) To receive an allocation of value under this section, a
property owner must apply for the allocation on a form that
substantially complies with the form prescribed by the commissioner
[comptroller]. The application must be filed with the chief
appraiser for the district in which the property to which the
application applies is taxable before the approval of the appraisal
records by the appraisal review board as provided by Section 41.12
[of this code].
(f) The commissioner [comptroller] shall promulgate forms
and may adopt rules consistent with the provisions of this section.
SECTION 47. Section 22.21, Tax Code, is amended to read as
follows:
Sec. 22.21. PUBLICIZING REQUIREMENTS. Each year the
commissioner [comptroller] and each chief appraiser shall
publicize in a manner reasonably designed to notify all property
owners the requirements of the law relating to filing rendition
statements and property reports and of the availability of forms.
SECTION 48. Effective November 1, 2003, Sections 22.24(a),
(c), and (e), Tax Code, are amended to read as follows:
(a) A person required to render property or to file a report
as provided by this chapter shall use a form that substantially
complies with the appropriate form prescribed or approved by the
commissioner [comptroller].
(c) The commissioner [comptroller] may prescribe or approve
different forms for different kinds of property but shall ensure
that each form requires a property owner to furnish the information
necessary to identify the property and to determine its ownership,
taxability, and situs. A form may not require a property owner to
furnish information not relevant to the appraisal of property for
tax purposes or to the assessment or collection of property taxes.
(e) To be valid, a rendition or report must be sworn to
before an officer authorized by law to administer an oath. The
commissioner [comptroller] may not prescribe or approve a rendition
or report form unless the form provides for the person filing the
form to swear that the information provided in the rendition or
report is true and accurate to the best of the person's knowledge
and belief. This subsection does not apply to a rendition or report
filed by the property owner, an employee of the property owner, or
an employee of a property owner on behalf of an affiliated entity of
the property owner.
SECTION 49. Effective January 1, 2004, Section 22.24(c),
Tax Code, as amended by Section 7, S.B. No. 340, Acts of the 78th
Legislature, Regular Session, 2003, is amended to read as follows:
(c) The commissioner [comptroller] may prescribe or approve
different forms for different kinds of property but shall ensure
that each form requires a property owner to furnish the information
necessary to identify the property and to determine its ownership,
taxability, and situs. A form may not require but may permit a
property owner to furnish information not specifically required by
this chapter to be reported. In addition, a form prescribed or
approved under this subsection must contain the following statement
in bold type: "If you make a false statement on this form, you could
be found guilty of a Class A misdemeanor or a state jail felony
under Section 37.10, Penal Code."
SECTION 50. Sections 22.27(a), (b), and (d), Tax Code, are
amended to read as follows:
(a) Rendition statements, real and personal property
reports, attachments to those statements and reports, and other
information the owner of property provides to the appraisal office
in connection with the appraisal of the property, including income
and expense information related to a property filed with an
appraisal office and information voluntarily disclosed to an
appraisal office or the commissioner [comptroller] about real or
personal property sales prices after a promise it will be held
confidential, are confidential and not open to public inspection.
The statements and reports and the information they contain about
specific real or personal property or a specific real or personal
property owner and information voluntarily disclosed to an
appraisal office about real or personal property sales prices after
a promise it will be held confidential may not be disclosed to
anyone other than an employee of the appraisal office who appraises
property except as authorized by Subsection (b) [of this section].
(b) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the statement or report or
the owner of property subject to the statement, report, or
information or to a representative of either authorized in writing
to receive the information;
(3) to the commissioner [comptroller] and the
commissioner's [comptroller's] employees authorized by the
commissioner [comptroller] in writing to receive the information or
to an assessor or a chief appraiser if requested in writing;
(4) in a judicial or administrative proceeding
relating to property taxation to which the person who filed the
statement or report or the owner of the property that is a subject
of the statement, report, or information is a party;
(5) for statistical purposes if in a form that does not
identify specific property or a specific property owner;
(6) if and to the extent the information is required to
be included in a public document or record that the appraisal office
is required to prepare or maintain; or
(7) to a taxing unit or its legal representative that
is engaged in the collection of delinquent taxes on the property
that is the subject of the information.
(d) No person who directly or indirectly provides
information to the commissioner [comptroller] or appraisal office
about real or personal property sales prices, either as set forth in
Subsection (a) [of this section] under a promise of
confidentiality, or otherwise, shall be liable to any other person
as the result of providing such information.
SECTION 51. Section 23.121(a)(6), Tax Code, is amended to
read as follows:
(6) "Declaration" means the dealer's motor vehicle
inventory declaration form promulgated by the commissioner
[comptroller] as required by this section.
SECTION 52. Section 23.121(f), Tax Code, is amended to read
as follows:
(f) The commissioner [comptroller] shall promulgate a form
entitled Dealer's Motor Vehicle Inventory Declaration. Except as
provided by Section 23.122(l) [of this code], not later than
February 1 of each year, or, in the case of a dealer who was not in
business on January 1, not later than 30 days after commencement of
business, each dealer shall file a declaration with the chief
appraiser and file a copy with the collector. For purposes of this
subsection, a dealer is presumed to have commenced business on the
date of issuance to the dealer of a dealer's general distinguishing
number as provided by Chapter 503, Transportation Code.
Notwithstanding the presumption created by this subsection, a chief
appraiser may, at the chief appraiser's [his or her] sole
discretion, designate as the date on which a dealer commenced
business a date other than the date of issuance to the dealer of a
dealer's general distinguishing number. The declaration is
sufficient to comply with this subsection if it sets forth the
following information:
(1) the name and business address of each location at
which the dealer owner conducts business;
(2) each of the dealer's general distinguishing
numbers issued by the Texas Department of Transportation;
(3) a statement that the dealer owner is the owner of a
dealer's motor vehicle inventory; and
(4) the market value of the dealer's motor vehicle
inventory for the current tax year as computed under Section
23.121(b) [of this code].
SECTION 53. Section 23.122(a)(9), Tax Code, is amended to
read as follows:
(9) "Statement" means the Dealer's Motor Vehicle
Inventory Tax Statement filed on a form promulgated by the
commissioner [comptroller] as required by this section.
SECTION 54. Section 23.122(e), Tax Code, is amended to read
as follows:
(e) The commissioner [comptroller] shall promulgate a form
entitled a Dealer's Motor Vehicle Inventory Tax Statement. A
dealer shall complete the form with respect to each motor vehicle
sold. A dealer may use no other form for that purpose. The
statement may include the information the commissioner
[comptroller] deems appropriate but shall include at least the
following:
(1) a description of the motor vehicle sold;
(2) the sales price of the motor vehicle;
(3) the unit property tax of the motor vehicle if any;
and
(4) the reason no unit property tax is assigned if no
unit property tax is assigned.
SECTION 55. Section 23.123(c), Tax Code, is amended to read
as follows:
(c) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the declaration or
statement or to that person's representative authorized by the
person in writing to receive the information;
(3) to the commissioner [comptroller] or an employee
of the commissioner [comptroller] authorized by the commissioner
[comptroller] to receive the information;
(4) to a collector or chief appraiser;
(5) to a district attorney, criminal district attorney
or county attorney involved in the enforcement of a penalty imposed
pursuant to Section 23.121 or Section 23.122 [of this code];
(6) for statistical purposes if in a form that does not
identify specific property or a specific property owner;
(7) if and to the extent that the information is
required for inclusion in a public document or record that the
appraisal or collection office is required by law to prepare or
maintain; or
(8) to the Texas Department of Transportation for use
by that department in auditing compliance of its licensees with
appropriate provisions of applicable law.
SECTION 56. Section 23.124(a)(6), Tax Code, is amended to
read as follows:
(6) "Declaration" means the dealer's vessel and
outboard motor inventory declaration form promulgated by the
commissioner [comptroller] as required by this section.
SECTION 57. Section 23.124(f), Tax Code, is amended to read
as follows:
(f) The commissioner [comptroller] shall promulgate a form
entitled "Dealer's Vessel and Outboard Motor Inventory
Declaration." Except as provided by Section 23.125(l) [of this
code], not later than February 1 of each year or, in the case of a
dealer who was not in business on January 1, not later than 30 days
after commencement of business, each dealer shall file a
declaration with the chief appraiser and file a copy with the
collector. The declaration is sufficient to comply with this
subsection if it sets forth the following information:
(1) the name and business address of each location at
which the dealer owner conducts business;
(2) each of the dealer's and manufacturer's numbers
issued by the Parks and Wildlife Department;
(3) a statement that the dealer owner is the owner of a
dealer's vessel and outboard motor inventory; and
(4) the market value of the dealer's vessel and
outboard motor inventory for the current tax year as computed under
Subsection (b) of this section.
SECTION 58. Section 23.1241(a)(4), Tax Code, is amended to
read as follows:
(4) "Declaration" means a dealer's heavy equipment
inventory declaration form adopted by the commissioner
[comptroller] under this section.
SECTION 59. Section 23.1241(f), Tax Code, is amended to
read as follows:
(f) The commissioner [comptroller] by rule shall adopt a
dealer's heavy equipment inventory declaration form. Except as
provided by Section 23.1242(k), not later than February 1 of each
year, or, in the case of a dealer who was not in business on January
1, not later than 30 days after commencement of business, each
dealer shall file a declaration with the chief appraiser and file a
copy with the collector. The declaration is sufficient to comply
with this subsection if it sets forth:
(1) the name and business address of each location at
which the declarant conducts business;
(2) a statement that the declarant is the owner of a
dealer's heavy equipment inventory; and
(3) the market value of the declarant's heavy
equipment inventory for the current tax year as computed under
Subsection (b).
SECTION 60. Section 23.1242(a)(3), Tax Code, is amended to
read as follows:
(3) "Statement" means the dealer's heavy equipment
inventory tax statement filed on a form adopted by the commissioner
[comptroller] under this section.
SECTION 61. Section 23.1242(e), Tax Code, is amended to
read as follows:
(e) The commissioner [comptroller] by rule shall adopt a
dealer's heavy equipment inventory tax statement form. A dealer
shall complete the form with respect to each item of heavy equipment
sold. A dealer may use no other form for that purpose. The
statement may include the information the commissioner
[comptroller] considers appropriate but shall include at least the
following:
(1) a description of the item of heavy equipment sold,
including any unique identification or serial number affixed to the
item by the manufacturer;
(2) the sales price of the item of heavy equipment;
(3) the unit property tax of the item of heavy
equipment, if any; and
(4) the reason no unit property tax is assigned if no
unit property tax is assigned.
SECTION 62. Section 23.125(a)(9), Tax Code, is amended to
read as follows:
(9) "Statement" means the dealer's vessel and outboard
motor inventory tax statement filed on a form promulgated by the
commissioner [comptroller] as required by this section.
SECTION 63. Section 23.125(e), Tax Code, is amended to read
as follows:
(e) The commissioner [comptroller] shall promulgate a form
entitled "Dealer's Vessel and Outboard Motor Inventory Tax
Statement." A dealer shall complete the form with respect to each
vessel and outboard motor sold. A dealer may use no other form for
that purpose. The statement may include the information the
commissioner [comptroller] deems appropriate but shall include at
least the following:
(1) a description of the vessel or outboard motor
sold;
(2) the sales price of the vessel or outboard motor;
(3) the unit property tax of the vessel or outboard
motor, if any; and
(4) the reason no unit property tax is assigned if no
unit property tax is assigned.
SECTION 64. Section 23.126(c), Tax Code, is amended to read
as follows:
(c) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the declaration or
statement or to that person's representative authorized by the
person in writing to receive the information;
(3) to the commissioner [comptroller] or an employee
of the commissioner [comptroller] authorized by the commissioner
[comptroller] to receive the information;
(4) to a collector or chief appraiser;
(5) to a district attorney, criminal district
attorney, or county attorney involved in the enforcement of a
penalty imposed pursuant to Section 23.124 or Section 23.125 [of
this code];
(6) for statistical purposes if in a form that does not
identify specific property or a specific property owner; or
(7) if and to the extent that the information is
required for inclusion in a document or record that the appraisal or
collection office is required by law to prepare or maintain.
SECTION 65. Section 23.127(a)(3), Tax Code, is amended to
read as follows:
(3) "Declaration" means a retail manufactured housing
inventory declaration form adopted by the commissioner
[comptroller] under this section.
SECTION 66. Section 23.127(f), Tax Code, is amended to read
as follows:
(f) The commissioner [comptroller] by rule shall adopt a
form entitled "Retail Manufactured Housing Inventory Declaration."
Except as provided by Section 23.128(k), not later than February 1
of each year or, in the case of a retailer who was not in business on
January 1, not later than the 30th day after the date the retailer
commences business, each retailer shall file a declaration with the
chief appraiser and file a copy with the collector. The declaration
is sufficient to comply with this subsection if it sets forth the
following information:
(1) the name and business address of each location at
which the retailer conducts business;
(2) the retailer's license number issued by the
department;
(3) a statement that the retailer is the owner of a
retail manufactured housing inventory; and
(4) the market value of the retailer's manufactured
housing inventory for the current tax year as computed under
Subsection (b).
SECTION 67. Section 23.128(a)(4), Tax Code, is amended to
read as follows:
(4) "Statement" means the retail manufactured housing
inventory tax statement filed on a form adopted by the commissioner
[comptroller] under this section.
SECTION 68. Section 23.128(e), Tax Code, is amended to read
as follows:
(e) The commissioner [comptroller] by rule shall adopt a
form entitled "Retail Manufactured Housing Inventory Tax
Statement." A retailer shall complete the form with respect to each
unit of manufactured housing sold. A retailer may not use another
form for that purpose. The statement shall include:
(1) a description of the unit of manufactured housing
sold, including any unique identification or serial number affixed
to the unit by the manufacturer;
(2) the sales price of the unit of manufactured
housing;
(3) any unit property tax of the unit of manufactured
housing;
(4) the reason a unit property tax is not assigned if
that is the case; and
(5) any other information the commissioner
[comptroller] considers appropriate.
SECTION 69. Section 23.175(b), Tax Code, is amended to read
as follows:
(b) The commissioner [comptroller] by rule shall develop
and distribute to each appraisal office appraisal manuals that
specify methods and procedures to discount future income from the
sale of oil or gas from the interest to present value.
SECTION 70. Sections 23.41(b) and (e), Tax Code, are
amended to read as follows:
(b) The commissioner [comptroller] shall promulgate rules
specifying the methods to apply and the procedures to use in
appraising land designated for agricultural use.
(e) Improvements other than appurtenances to the land, the
mineral estate, and all land used for residential purposes and for
processing harvested agricultural products are appraised
separately at market value. Riparian water rights, private roads,
dams, reservoirs, water wells, and canals, ditches, terraces, and
similar reshaping of or additions to the soil for agricultural
purposes are appurtenances to the land, and the effect of each on
the value of the land for agricultural use shall be considered in
appraising the land. However, the commissioner [comptroller] shall
provide that in calculating average net income from land a
deduction from income be allowed for an appurtenance subject to
depreciation or depletion.
SECTION 71. Section 23.43(d), Tax Code, is amended to read
as follows:
(d) The commissioner [comptroller] in prescribing the
contents of the application forms shall ensure that each form
requires a claimant to furnish the information necessary to
determine the validity of the claim. The commissioner
[comptroller] shall require that the form permit a claimant who has
previously been allowed an agricultural designation to indicate
that previously reported information has not changed and to supply
only the eligibility information not previously reported.
SECTION 72. Section 23.45(b), Tax Code, is amended to read
as follows:
(b) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the application or to his
representative authorized in writing to receive the information;
(3) to the commissioner [comptroller] and his
employees authorized by him in writing to receive the information
or to an assessor or a chief appraiser if requested in writing;
(4) in a judicial or administrative proceeding
relating to property taxation to which the person who filed the
application is a party;
(5) for statistical purposes if in a form that does not
identify specific property or a specific property owner; or
(6) if and to the extent the information is required to
be included in a public document or record that the appraisal office
is required to prepare or maintain.
SECTION 73. Section 23.52(d), Tax Code, is amended to read
as follows:
(d) The commissioner [comptroller] by rule shall develop
and distribute to each appraisal office appraisal manuals setting
forth this method of appraising qualified open-space land, and each
appraisal office shall use the appraisal manuals in appraising
qualified open-space land. The commissioner [comptroller] by rule
shall develop and the appraisal office shall enforce procedures to
verify that land meets the conditions contained in Subdivision (1)
of Section 23.51 [of this code]. The rules, before taking effect,
must be approved by a majority vote of a committee comprised of the
following officials or their designees: the governor, the
comptroller, the attorney general, the agriculture commissioner,
and the Commissioner of the General Land Office.
SECTION 74. Section 23.521(a), Tax Code, is amended to read
as follows:
(a) The Parks and Wildlife Department, with the assistance
of the commissioner [comptroller], shall develop standards for
determining whether land qualifies under Section 23.51(7) for
appraisal under this subchapter. The commissioner [comptroller] by
rule shall adopt the standards developed by the Parks and Wildlife
Department and distribute those rules to each appraisal district.
On request of the Parks and Wildlife Department, the Texas
Agricultural Extension Service shall assist the department in
developing the standards.
SECTION 75. Sections 23.54(b) and (c), Tax Code, are
amended to read as follows:
(b) To be valid, the application must:
(1) be on a form provided by the appraisal office and
prescribed by the commissioner [comptroller]; and
(2) contain the information necessary to determine the
validity of the claim.
(c) The commissioner [comptroller] shall include on the
form a notice of the penalties prescribed by Section 37.10, Penal
Code, for making or filing an application containing a false
statement. The commissioner [comptroller], in prescribing the
contents of the application form, shall require that the form
permit a claimant who has previously been allowed appraisal under
this subchapter to indicate that previously reported information
has not changed and to supply only the eligibility information not
previously reported.
SECTION 76. Section 23.73(b), Tax Code, is amended to read
as follows:
(b) The commissioner [comptroller] by rule shall develop
and distribute to each appraisal office appraisal manuals setting
forth this method of appraising qualified timber land, and each
appraisal office shall use the appraisal manuals in appraising
qualified timber land. The commissioner [comptroller] by rule
shall develop and the appraisal office shall enforce procedures to
verify that land meets the conditions contained in Section 23.72
[of this code]. The rules, before taking effect, must be approved
by majority vote of a committee comprised of the following
officials or their designees: the governor, the comptroller, the
attorney general, the agriculture commissioner, and the
Commissioner of the General Land Office.
SECTION 77. Sections 23.75(b) and (c), Tax Code, are
amended to read as follows:
(b) To be valid, the application must:
(1) be on a form provided by the appraisal office and
prescribed by the commissioner [comptroller]; and
(2) contain the information necessary to determine the
validity of the claim.
(c) The commissioner [comptroller] shall include on the
form a notice of the penalties prescribed by Section 37.10, Penal
Code, for making or filing an application containing a false
statement. The commissioner [comptroller], in prescribing the
contents of the application form, shall require that the form
permit a claimant who has previously been allowed appraisal under
this subchapter to indicate that previously reported information
has not changed and to supply only the eligibility information not
previously reported.
SECTION 78. Section 23.83(e), Tax Code, is amended to read
as follows:
(e) The commissioner [comptroller] shall promulgate rules
specifying the methods to apply and the procedures to use in
appraising land under this subchapter.
SECTION 79. Section 23.84(f), Tax Code, is amended to read
as follows:
(f) The commissioner [comptroller] in prescribing the
contents of the application forms shall ensure that each form
requires a claimant to furnish the information necessary to
determine the validity of the claim and that the form requires the
claimant to state that the land for which the claimant [he] claims
appraisal under this subchapter will be used exclusively for
recreational, park, or scenic uses in the current year.
SECTION 80. Section 23.93(e), Tax Code, is amended to read
as follows:
(e) The commissioner [comptroller] shall promulgate rules
specifying the methods to apply and the procedures to use in
appraising property under this subchapter.
SECTION 81. Section 23.94(f), Tax Code, is amended to read
as follows:
(f) The commissioner [comptroller] in prescribing the
contents of the application forms shall ensure that each form
requires a claimant to furnish the information necessary to
determine the validity of the claim and that the form requires the
claimant to state that the airport property for which the claimant
[he] claims appraisal under this subchapter will be used
exclusively as public access airport property in the current year.
SECTION 82. Sections 23.9804(b), (c), and (d), Tax Code,
are amended to read as follows:
(b) To be valid, an application for appraisal under Section
23.9802(a) must:
(1) be on a form provided by the appraisal office and
prescribed by the commissioner [comptroller];
(2) provide evidence that the land qualifies for
designation as an aesthetic management zone, critical wildlife
habitat zone, or streamside management zone;
(3) specify the location of the proposed zone and the
quantity of land, in acres, in the proposed zone; and
(4) contain other information necessary to determine
the validity of the claim.
(c) To be valid, an application for appraisal under Section
23.9802(b) must:
(1) be on a form provided by the appraisal office and
prescribed by the commissioner [comptroller];
(2) provide evidence that the land on which the timber
was harvested was appraised under Subchapter E in the year in which
the timber was harvested;
(3) provide evidence that all of the land has been
regenerated in compliance with Section 23.9802(b)(2); and
(4) contain other information necessary to determine
the validity of the claim.
(d) The commissioner [comptroller] shall include on the
form a notice of the penalties prescribed by Section 37.10, Penal
Code, for making or filing an application containing a false
statement. The commissioner [comptroller], in prescribing the
contents of the application form, shall require that the form
permit a claimant who has previously been allowed appraisal under
this subchapter to indicate that the previously reported
information has not changed and to supply only the eligibility
information not previously reported.
SECTION 83. Section 24.32(c), Tax Code, is amended to read
as follows:
(c) A report required by this section must be on a form
prescribed by the commissioner [comptroller]. In prescribing the
form, the commissioner [comptroller] shall ensure that it requires
the information necessary to determine market value of rolling
stock used in this state.
SECTION 84. Section 24.34(b), Tax Code, is amended to read
as follows:
(b) The commissioner [comptroller] shall adopt rules
establishing formulas for interstate allocation of the value of
railroad rolling stock.
SECTION 85. Sections 24.36, 24.365, 24.37, and 24.38, Tax
Code, are amended to read as follows:
Sec. 24.36. CERTIFICATION TO COMMISSIONER [COMPTROLLER].
On approval of the appraised value of the rolling stock as provided
by Chapter 41 [of this code], the chief appraiser shall certify to
the commissioner [comptroller] the amount of market value allocated
to this state for each owner whose rolling stock is appraised in the
county and the name and business address of each owner.
Sec. 24.365. CORRECTION OF CERTIFIED AMOUNT. (a) A chief
appraiser who discovers that the chief appraiser's certification to
the commissioner [comptroller] of the amount of the market value of
rolling stock allocated to this state under Section 24.36 was
incomplete or incorrect shall immediately certify the correct
amount of that market value to the commissioner [comptroller].
(b) As soon as practicable after the commissioner
[comptroller] receives the correct certification from the chief
appraiser, the commissioner [comptroller] shall certify to the
county assessor-collector for each affected county the information
required by Section 24.38 as corrected.
Sec. 24.37. INTRASTATE APPORTIONMENT. The commissioner
[comptroller] shall apportion the appraised value of each owner's
rolling stock to each county in which the railroad using it operates
according to the ratio the mileage of road owned by the railroad in
the county bears to the total mileage of road the railroad owns in
this state.
Sec. 24.38. CERTIFICATION OF APPORTIONED VALUE. Before
August 1, the commissioner [comptroller] shall certify to the
county assessor-collector for each county in which a railroad
operates:
(1) the county's apportioned amount of the market
value of each owner's rolling stock; and
(2) the name and business address of each owner.
SECTION 86. Section 24.40(a), Tax Code, is amended to read
as follows:
(a) If a chief appraiser discovers that rolling stock used
in this state and subject to appraisal by the chief appraiser [him]
has not been appraised and apportioned to the counties in one of the
two preceding years, he shall appraise the property as of January 1
for each year it was omitted, submit the appraisal for review and
protest, and certify the approved value to the commissioner
[comptroller].
SECTION 87. Section 25.011(b), Tax Code, is amended to read
as follows:
(b) The record for each type of specially appraised property
must be maintained in a separate document for each 12-month period
beginning June 1. The document must include the name of at least one
owner of the property, the acreage of the property, and other
information sufficient to identify the property as required by the
commissioner [comptroller]. All entries in each document must be
kept in alphabetical order according to the last name of each owner
whose name is part of the record.
SECTION 88. Section 25.02(a), Tax Code, is amended to read
as follows:
(a) The appraisal records shall be in the form prescribed by
the commissioner [comptroller] and shall include:
(1) the name and address of the owner or, if the name
or address is unknown, a statement that it is unknown;
(2) real property;
(3) separately taxable estates or interests in real
property, including taxable possessory interests in exempt real
property;
(4) personal property;
(5) the appraised value of land and, if the land is
appraised as provided by Subchapter C, D, E, or H, Chapter 23, the
market value of the land;
(6) the appraised value of improvements to land;
(7) the appraised value of a separately taxable estate
or interest in land;
(8) the appraised value of personal property;
(9) the kind of any partial exemption the owner is
entitled to receive, whether the exemption applies to appraised or
assessed value, and, in the case of an exemption authorized by
Section 11.23, the amount of the exemption;
(10) the tax year to which the appraisal applies; and
(11) an identification of each taxing unit in which
the property is taxable.
SECTION 89. Section 25.025(b), Tax Code, is amended to read
as follows:
(b) Information in appraisal records under Section 25.02 is
confidential and is available only for the official use of the
appraisal district, this state, the commissioner [comptroller],
and taxing units and political subdivisions of this state if:
(1) the information identifies the home address of a
named individual to whom this section applies; and
(2) the individual chooses to restrict public access
to the information on the form prescribed for that purpose by the
commissioner [comptroller] under Section 5.07.
SECTION 90. Section 25.026(b), Tax Code, is amended to read
as follows:
(b) Information in appraisal records under Section 25.02 is
confidential and is available only for the official use of the
appraisal district, this state, the commissioner [comptroller],
and taxing units and political subdivisions of this state if the
information identifies the address of a family violence shelter
center or a sexual assault program.
SECTION 91. Section 25.03(b), Tax Code, is amended to read
as follows:
(b) The commissioner [comptroller] may adopt rules
establishing minimum standards for descriptions of property.
SECTION 92. Sections 25.19(i) and (j), Tax Code, are
amended to read as follows:
(i) Delivery with a notice required by Subsection (a) or (g)
of a copy of the pamphlet published by the commissioner
[comptroller] under Section 5.06 or a copy of the notice published
by the chief appraiser under Section 41.70 is sufficient to comply
with the requirement that the notice include the information
specified by Subsection (b)(7) or (g)(3), as applicable.
(j) The chief appraiser shall include with a notice required
by Subsection (a) or (g):
(1) a copy of a notice of protest form as prescribed by
the commissioner [comptroller] under Section 41.44(d); and
(2) instructions for completing and mailing the form
to the appraisal review board and requesting a hearing on the
protest.
SECTION 93. Section 25.23(b), Tax Code, is amended to read
as follows:
(b) Supplemental appraisal records shall be in the form
prescribed by the commissioner [comptroller] and shall include the
items required by Section 25.02 [of this code].
SECTION 94. Section 26.01(b), Tax Code, is amended to read
as follows:
(b) When a chief appraiser submits an appraisal roll for
county taxes to a county assessor-collector, the chief appraiser
also shall certify the appraisal district appraisal roll to the
commissioner [comptroller]. However, the commissioner
[comptroller] by rule may provide for submission of only a summary
of the appraisal roll. The chief appraiser shall certify the
district appraisal roll or the summary of that roll in the form and
manner prescribed by the commissioner's [comptroller's] rule.
SECTION 95. Section 26.04(e), Tax Code, is amended to read
as follows:
(e) By August 7 or as soon thereafter as practicable, the
designated officer or employee shall submit the rates to the
governing body. The designated officer or employee [He] shall
deliver by mail to each property owner in the unit or publish in a
newspaper in the form prescribed by the commissioner [comptroller]:
(1) the effective tax rate, the rollback tax rate, and
an explanation of how they were calculated;
(2) the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding existing debt
obligation;
(3) a schedule of the unit's debt obligations showing:
(A) the amount of principal and interest that
will be paid to service the unit's debts in the next year from
property tax revenue, including payments of lawfully incurred
contractual obligations providing security for the payment of the
principal of and interest on bonds and other evidences of
indebtedness issued on behalf of the unit by another political
subdivision and, if the unit is created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, payments on
debts that the unit anticipates to incur in the next calendar year;
(B) the amount by which taxes imposed for debt
are to be increased because of the unit's anticipated collection
rate; and
(C) the total of the amounts listed in Paragraphs
(A)-(B), less any amount collected in excess of the previous year's
anticipated collections certified as provided in Subsection (b);
(4) the amount of additional sales and use tax revenue
anticipated in calculations under Section 26.041;
(5) a statement that the adoption of a tax rate equal
to the effective tax rate would result in an increase or decrease,
as applicable, in the amount of taxes imposed by the unit as
compared to last year's levy, and the amount of the increase or
decrease;
(6) in the year that a taxing unit calculates an
adjustment under Subsection (i) or (j), a schedule that includes
the following elements:
(A) the name of the unit discontinuing the
department, function, or activity;
(B) the amount of property tax revenue spent by
the unit listed under Paragraph (A) to operate the discontinued
department, function, or activity in the 12 months preceding the
month in which the calculations required by this chapter are made;
and
(C) the name of the unit that operates a distinct
department, function, or activity in all or a majority of the
territory of a taxing unit that has discontinued operating the
distinct department, function, or activity; and
(7) in the year following the year in which a taxing
unit raised its rollback rate as required by Subsection (j), a
schedule that includes the following elements:
(A) the amount of property tax revenue spent by
the unit to operate the department, function, or activity for which
the taxing unit raised the rollback rate as required by Subsection
(j) for the 12 months preceding the month in which the calculations
required by this chapter are made; and
(B) the amount published by the unit in the
preceding tax year under Subdivision (6)(B).
SECTION 96. Section 26.06(f), Tax Code, is amended to read
as follows:
(f) The commissioner [comptroller] by rule shall prescribe
the language and format to be used in the part of the notice
required by Subsection (b)(2). A notice under Subsection (b) is not
valid if it does not substantially conform to the language and
format prescribed by the commissioner [comptroller] under this
subsection.
SECTION 97. Section 31.01(c), Tax Code, is amended to read
as follows:
(c) The tax bill or a separate statement accompanying the
tax bill shall:
(1) identify the property subject to the tax;
(2) state the appraised value, assessed value, and
taxable value of the property;
(3) if the property is land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, state the market value and the
taxable value for purposes of deferred or additional taxation as
provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
(4) state the assessment ratio for the unit;
(5) state the type and amount of any partial exemption
applicable to the property, indicating whether it applies to
appraised or assessed value;
(6) state the total tax rate for the unit;
(7) state the amount of tax due, the due date, and the
delinquency date;
(8) explain the payment option and discounts provided
by Sections 31.03 and 31.05, if available to the unit's taxpayers,
and state the date on which each of the discount periods provided by
Section 31.05 concludes, if the discounts are available;
(9) state the rates of penalty and interest imposed
for delinquent payment of the tax;
(10) include the name and telephone number of the
assessor for the unit and, if different, of the collector for the
unit; and
(11) include any other information required by the
commissioner [comptroller].
SECTION 98. Section 31.032(f), Tax Code, is amended to read
as follows:
(f) The commissioner [comptroller] shall adopt rules to
implement this section.
SECTION 99. Section 31.075(a), Tax Code, is amended to read
as follows:
(a) At the request of a property owner or a property owner's
agent, the collector for a taxing unit shall issue a receipt showing
the taxable value and the amount of tax imposed by the unit on the
property in one or more tax years for which the information is
requested, the tax rate for each of those tax years, and the amount
of tax paid in each of those years. The receipt must describe the
property in the manner prescribed by the commissioner
[comptroller].
SECTION 100. Section 31.11(c), Tax Code, is amended to read
as follows:
(c) An application for a refund must be made within three
years after the date of the payment or the taxpayer waives the right
to the refund. A taxpayer may apply for a refund by filing:
(1) an application on a form prescribed by the
commissioner [comptroller] by rule; or
(2) a written request that includes information
sufficient to enable the auditor for the taxing unit and, if
applicable, the governing body of the taxing unit to determine
whether the taxpayer is entitled to the refund.
SECTION 101. Section 33.43(e), Tax Code, is amended to read
as follows:
(e) The commissioner [comptroller] shall prepare forms for
petitions initiating suits to collect delinquent taxes. An
attorney representing a taxing unit may use the forms or develop a
[his own] form.
SECTION 102. Section 41.44(d), Tax Code, is amended to read
as follows:
(d) A notice of protest is sufficient if it identifies the
protesting property owner, including a person claiming an ownership
interest in the property even if that person is not listed on the
appraisal records as an owner of the property, identifies the
property that is the subject of the protest, and indicates apparent
dissatisfaction with some determination of the appraisal office.
The notice need not be on an official form, but the commissioner
[comptroller] shall prescribe a form that provides for more detail
about the nature of the protest. The form must permit a property
owner to include each property in the appraisal district that is the
subject of a protest. The commissioner [comptroller], each
appraisal office, and each appraisal review board shall make the
forms readily available and deliver one to a property owner on
request.
SECTION 103. Sections 41.45(k) and (l), Tax Code, are
amended to read as follows:
(k) The commissioner [comptroller] shall prescribe a
standard form for an affidavit offered under Subsection (b). Each
appraisal district shall make copies of the affidavit form
available to property owners without charge.
(l) A property owner is not required to use the affidavit
form prescribed by the commissioner [comptroller] when offering an
affidavit under Subsection (b).
SECTION 104. Section 41.461(a), Tax Code, is amended to
read as follows:
(a) At least 14 days before a hearing on a protest, the chief
appraiser shall:
(1) deliver a copy of the pamphlet prepared by the
commissioner [comptroller] under Section 5.06(a) to the property
owner initiating the protest if the owner is not represented by
another person [representing himself], or to an agent representing
the owner if requested by the agent;
(2) inform the property owner that the owner or the
agent of the owner may inspect and may obtain a copy of the data,
schedules, formulas, and all other information the chief appraiser
plans to introduce at the hearing to establish any matter at issue;
and
(3) deliver a copy of the hearing procedures
established by the appraisal review board under Section 41.66 to
the property owner.
SECTION 105. Sections 41.65 and 41.68, Tax Code, are
amended to read as follows:
Sec. 41.65. REQUEST FOR STATE ASSISTANCE. The appraisal
review board may request the commissioner [comptroller] to assist
in determining the accuracy of appraisals by the appraisal office
or to provide other professional assistance. The appraisal office
shall reimburse the costs of providing assistance if the
commissioner [comptroller] requests reimbursement.
Sec. 41.68. RECORD OF PROCEEDING. The appraisal review
board shall keep a record of its proceedings in the form and manner
prescribed by the commissioner [comptroller].
SECTION 106. Section 41.70(a), Tax Code, is amended to read
as follows:
(a) On or after May 1 but not later than May 15, the chief
appraiser shall publish notice of the manner in which a protest
under this chapter may be brought by a property owner. The notice
must describe how to initiate a protest and must describe the
deadlines for filing a protest. The notice must also describe the
manner in which an order of the appraisal review board may be
appealed. The commissioner [comptroller] by rule shall adopt
minimum standards for the form and content of the notice required by
this section.
SECTION 107. Sections 42.01, 42.03, and 42.05, Tax Code,
are amended to read as follows:
Sec. 42.01. RIGHT OF APPEAL BY PROPERTY OWNER. A property
owner is entitled to appeal:
(1) an order of the appraisal review board
determining:
(A) a protest by the property owner as provided
by Subchapter C of Chapter 41; or
(B) a determination of an appraisal review board
on a motion filed under Section 25.25; or
(2) an order of the commissioner [comptroller] issued
as provided by Subchapter B, Chapter 24, apportioning among the
counties the appraised value of railroad rolling stock owned by the
property owner.
Sec. 42.03. RIGHT OF APPEAL BY COUNTY. A county may appeal
the order of the commissioner [comptroller] issued as provided by
Subchapter B, Chapter 24 of this code apportioning among the
counties the appraised value of railroad rolling stock.
Sec. 42.05. COMMISSIONER [COMPTROLLER] AS PARTY. The
commissioner [comptroller] is an opposing party in an appeal by:
(1) a property owner of an order of the commissioner
[comptroller] determining a protest of the appraisal, interstate
allocation, or intrastate apportionment of transportation business
intangibles; or
(2) a county or a property owner of an order of the
commissioner [comptroller] apportioning among the counties the
appraised value of railroad rolling stock.
SECTION 108. Sections 42.06(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) To exercise the party's right to appeal an order of an
appraisal review board, a party other than a property owner must
file written notice of appeal within 15 days after the date the
party receives the notice required by Section 41.47 or, in the case
of a taxing unit, by Section 41.07 that the order appealed has been
issued. To exercise the right to appeal an order of the
commissioner [comptroller], a party other than a property owner
must file written notice of appeal within 15 days after the date the
party receives the commissioner's [comptroller's] order. A
property owner is not required to file a notice of appeal under this
section.
(b) A party required to file a notice of appeal under this
section other than a chief appraiser who appeals an order of an
appraisal review board shall file the notice with the chief
appraiser of the appraisal district for which the appraisal review
board is established. A chief appraiser who appeals an order of an
appraisal review board shall file the notice with the appraisal
review board. A party who appeals an order of the commissioner
[comptroller] shall file the notice with the commissioner
[comptroller].
(c) If the chief appraiser, a taxing unit, or a county
appeals, the chief appraiser, if the appeal is of an order of the
appraisal review board, or the commissioner [comptroller], if the
appeal is of an order of the commissioner [comptroller], shall
deliver a copy of the notice to the property owner whose property is
involved in the appeal within 10 days after the date the notice is
filed.
SECTION 109. Section 42.21(b), Tax Code, is amended to read
as follows:
(b) A petition for review brought under Section 42.02 must
be brought against the owner of the property involved in the appeal.
A petition for review brought under Section 42.031 must be brought
against the appraisal district and against the owner of the
property involved in the appeal. A petition for review brought
under Subdivision (2) or (3) of Section 42.01 or under Section 42.03
must be brought against the commissioner [comptroller]. Any other
petition for review under this chapter must be brought against the
appraisal district. A petition for review is not required to be
brought against the appraisal review board, but may be brought
against the appraisal review board in addition to any other
required party, if appropriate.
SECTION 110. Section 42.22, Tax Code, as amended by
Chapters 667 and 1033, Acts of the 73rd Legislature, Regular
Session, 1993, is reenacted and amended to read as follows:
Sec. 42.22. VENUE. (a) Except as provided by Subsections
(b) and (c), and by Section 42.221, venue is in the county in which
the appraisal review board that issued the order appealed is
located.
(b) Venue of an action brought under Section 42.01(1) is in
the county in which the property is located or in the county in
which the appraisal review board that issued the order is located.
(c) Venue is in Travis County if the order appealed was
issued by the commissioner [comptroller].
SECTION 111. Section 42.23(b), Tax Code, is amended to read
as follows:
(b) The court may not admit in evidence the fact of prior
action by the appraisal review board or commissioner [comptroller],
except to the extent necessary to establish its jurisdiction.
SECTION 112. Section 42.26(c), Tax Code, is amended to read
as follows:
(c) For purposes of establishing the median level of
appraisal under Subsection (a)(1), the median level of appraisal in
the appraisal district as determined by the commissioner
[comptroller] under Section 51.41 [5.10] is admissible as evidence
of the median level of appraisal of a reasonable and representative
sample of properties in the appraisal district for the year of the
commissioner's [comptroller's] determination, subject to the Texas
Rules of Evidence and the Texas Rules of Civil Procedure.
SECTION 113. Sections 42.28 and 43.01, Tax Code, are
amended to read as follows:
Sec. 42.28. APPEAL OF DISTRICT COURT JUDGMENT. A party may
appeal the final judgment of the district court as provided by law
for appeal of civil suits generally, except that an appeal bond is
not required of the chief appraiser, the county, the commissioner
[comptroller], or the commissioners court of a county.
Sec. 43.01. AUTHORITY TO BRING SUIT. A taxing unit may sue
the appraisal district that appraises property for the unit to
compel the appraisal district to comply with the provisions of this
title, rules of the commissioner [comptroller], or other applicable
law.
SECTION 114. Section 313.022(b), Tax Code, is amended to
read as follows:
(b) For purposes of determining the required minimum amount
of a qualified investment under Section 313.021(2)(A)(iv)(a), and
the minimum amount of a limitation on appraised value under Section
313.027(b), school districts to which this subchapter applies are
categorized according to the taxable value of property in the
district for the preceding tax year determined under Subchapter B,
Chapter 51, Tax [Subchapter M, Chapter 403, Government] Code, as
follows:CATEGORY TAXABLE VALUE OF PROPERTY
I $10 billion or more
II $1 billion or more but less than $10 billion
III $500 million or more but less than $1 billion
IV $100 million or more but less than $500 millio
on
V less than $100 million
SECTION 115. Section 313.052, Tax Code, is amended to read
as follows:
Sec. 313.052. CATEGORIZATION OF SCHOOL DISTRICTS. For
purposes of determining the required minimum amount of a qualified
investment under Section 313.021(2)(A)(iv)(a) and the minimum
amount of a limitation on appraised value under this subchapter,
school districts to which this subchapter applies are categorized
according to the taxable value of industrial property in the
district for the preceding tax year determined under Subchapter B,
Chapter 51, Tax [Subchapter M, Chapter 403, Government] Code, as
follows:CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
I $200 million or more
II $90 million or more but less than $200 million
III $1 million or more but less than $90 million
IV $100,000 or more but less than $1 million
V less than $100,000
SECTION 116. Sections 39.901(a), (b), (c), and (e),
Utilities Code, are amended to read as follows:
(a) Not later than August 31 each year, the commissioner of
the State Board on Property Valuation [comptroller] shall certify
to the Texas Education Agency the statewide net loss in electric
generating facility property value attributable to electric
utility restructuring. In calculating the statewide net loss in
electric generating facility property value, the commissioner of
the State Board on Property Valuation [comptroller] shall:
(1) subtract current year electric generating
facility appraisal roll values, as defined by Section 25.24, Tax
Code, from 1999 electric generating facility appraised values in
each school district;
(2) sum the resulting property value losses (positive
differences);
(3) sum the resulting property value gains (negative
differences); and
(4) subtract the absolute value of the property value
gains, subject to the limitation in Section 39.9011, from the
absolute value of the property value losses to calculate a
statewide net loss.
(b) The Texas Education Agency shall determine the amount
necessary to compensate the state for the statewide net loss
certified under Subsection (a) by multiplying the statewide net
loss by the average adopted property tax rate of the school
districts that had losses, weighted by the value losses in each
school district, and dividing the result by 100 and shall notify the
commission of the amount necessary to compensate the state for the
reduction. The commissioner of the State Board on Property
Valuation [comptroller] shall provide the Texas Education Agency
the electric generating facility value losses in each school
district used in Subsection (a)(2) for use in calculating the
weighted average property tax rate.
(c) The amounts determined by the commissioner of the State
Board on Property Valuation [comptroller] and the Texas Education
Agency under this section, for the purposes of this section, are
final and may not be appealed.
(e) The commissioner of education and the commissioner of
the State Board on Property Valuation [comptroller] shall adopt
rules necessary to implement this section, including rules
providing for public input.
SECTION 117. The following laws are repealed:
(1) Sections 5.10, 5.102, 5.12, and 5.13, Tax Code;
(2) Subchapter M, Chapter 403, Government Code; and
(3) S.B. No. 1833, Acts of the 78th Legislature,
Regular Session, 2003.
SECTION 118. (a) As soon as practicable on or after the
effective date of this Act, the governor shall appoint the members
of the State Board on Property Valuation. The initial members
appointed shall draw lots so that one member's term expires March 1,
2005, two members' terms expire March 1, 2007, and two members'
terms expire March 1, 2009. The board shall employ a commissioner
as soon as practicable after a majority of the members of the board
qualify for office.
(b) The comptroller of public accounts and the commissioner
of the State Board on Property Valuation shall coordinate the
transfer of all aspects and functions of the comptroller relating
to state administration of the property tax system to the board or
commissioner, as applicable. The transfer shall be accomplished as
soon as practicable but not later than the 45th day after the date
the board employs the initial commissioner.
(c) The transfer required by Subsection (b) of this section
includes all assets, obligations, and liabilities of any kind
relating to state administration of the property tax system,
including all contracts, leases, real or personal property,
personnel, furniture, computers and other equipment, files, and
related materials used by the comptroller for that purpose.
(d) All appropriations made to the comptroller for the
operation of the property tax division, as well as the personnel
assigned to the division, are transferred to the State Board on
Property Valuation, except for the appropriations for support
services provided by other divisions of the comptroller's office.
Notwithstanding Section 5.02(d), Tax Code, as added by this Act,
until the end of the state fiscal biennium that begins September 1,
2003, the comptroller, by interagency contract, shall continue to
provide support to the State Board on Property Valuation for
payroll, human resources, computer maintenance and technical
assistance, printing and distribution of publications created by
the board, and similar administrative services currently provided.
(e) All forms, rules, and procedures relating to state
administration of the property tax system adopted by the
comptroller or administratively transferred to the comptroller and
in effect on the effective date of this Act remain in effect on or
after that date as if adopted by the State Board on Property
Valuation or the commissioner of the State Board on Property
Valuation, as applicable, until amended, repealed, withdrawn, or
otherwise superseded by the board or commissioner.
(f) In any protest, appeal, or other administrative or
judicial action in which the comptroller is a party on the effective
date of this Act in connection with a duty or function transferred
from the comptroller to the State Board on Property Valuation or the
commissioner of the State Board on Property Valuation, as
applicable, by this Act, the board or commissioner is substituted
for the comptroller on the effective date of this Act.
(g) A reference in law to the comptroller in connection with
state administration of the property tax system means the State
Board on Property Valuation or the commissioner of the State Board
on Property Valuation, as applicable.
SECTION 119. Except as otherwise provided by this Act, this
Act takes effect November 1, 2003.