SRC-TJG S.B. 340 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 340
By: Staples
Finance
3/5/2003
As Filed


DIGEST AND PURPOSE 

Currently, Section 22.01, Tax Code, requires the rendering of personal
property used in the production of income for ad valorem tax purposes.
However, no penalty exists for the failure to render such property.  As
proposed, S.B. 340 creates a penalty for the failure to render such
properties and provides criteria for the information that is required to
be included in the rendition statement. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 22.01, Tax Code, by amending Subsection (a) and
adding Subsections (f) through (i), as follows: 

(a) Requires a rendition statement to contain certain information related
to tangible property for taxation.  Deletes existing text "he" and
replaces it with "the person."  Makes a nonsubstantive change. 

(f) Provides that notwithstanding Subsections (a) and (b), a person who
owns tangible personal property used for the production of income located
in the appraisal district that, in the owner's opinion, has an aggregate
value of less than $20,000 is only required to render the name and address
of the property owner and the physical location or situs of the property. 

(g) Provides that a person's good faith estimate of the market value of
the property under Subsection (a)(5) is solely for the purpose of
compliance with the requirement to render tangible personal property and
is inadmissible in any subsequent protest, hearing, appeal, suit, or other
proceeding involving whether the person complied with this section. 

(h) Provides that if the property is the subject of the rendition is
regulated by certain state or federal regulatory entities, the owner of
the property is deemed to have complied with the requirements of this
section if the owner provides to the chief appraiser, on written request
of the chief appraiser, a copy of the annual regulatory report covering
the property and sufficient information to enable the chief appraiser to
allocate the value of the property among the appropriate taxing
jurisdiction in the appraisal district. 

(i) Provides that Subsection (a) does not apply to a property owner whose
property is subject to appraisal by a third party retained by the
appraisal district if the property owner provides information regarding
the property directly to the third party appraiser. 

SECTION 2.  Amends Section 22.07, Tax Code, by adding Subsection (c), to
authorize the chief appraiser to request either in writing or by
electronic means, that the property owner provide a statement containing
supporting information indicating how the owner's good faith estimate of
value  rendered under Section 22.01(a)(5) was determined.  Requires the
property owner to provide the statement, either in writing or by
electronic means, not later than the 15th day after the date the chief
appraiser's request is received.  Provides that the owner's statement is
solely for informational purposes and is not admissible as evidence in any
subsequent protest, suit, appeal, or other proceeding involving the
property. 

SECTION 3.  Amends Section 22.23(b), Tax Code, to require, rather than
authorize, the chief appraiser, on written request of the property owner,
rather than for good cause shown in writing, to extend a deadline for
filing a rendition statement or property report to May 15, rather than by
written order to a date not later than April 30.  Authorizes the chief
appraiser to further extend the deadline an additional 15 days upon good
cause shown in writing by the property owner.  Deletes existing text
related to extending the filing deadline until April 30, for property
regulated by the Public Utility Commission of Texas or the Railroad
Commission of Texas. 

SECTION 4.  Amends Sections 22.24(b), (c), and (d), Tax Code, as follows:

(b) Requires a person filing a rendition or report to include all
information required by Section 22.01, rather than by the form. 

(c) Provides that a form may not require, but may permit, a property owner
to furnish information not specifically required by this chapter to be
reported.  Deletes existing text related to information not relevant to
the appraisal of property for tax purposes or to the assessment or
collection of property taxes. 

(d)  Requires a rendition or report form to permit but not require a
property owner to state the owner's good faith estimate of the market
value of the property, except as required by Section 22.01(a), rather than
providing a form must permit but may not require a property owner to state
an opinion about the market value of the owner's property.  Makes a
nonsubstantive change. 

SECTION 5.  Amends Chapter 22B, Tax Code, by adding Sections 22.28, 22.29,
and 22.30, as follows: 

Sec. 22.28.  PENALTY FOR DELINQUENT REPORT.  Authorizes the chief
appraiser, except as otherwise provided by Section 22.30, to impose a
penalty of 10 percent of the amount of the tax due on a person who fails
to timely file a rendition statement or property report required by this
chapter. 

Sec. 22.29.  PENALTY FOR FRAUD OR INTENT TO EVADE TAX.  Requires the chief
appraiser to impose an additional penalty of 50 percent of the amount of
the tax due if it is finally determined by a court of competent
jurisdiction that the person took certain actions related to fraud or the
intent to evade the tax. 

Sec. 22.30.  WAIVER OF PENALTY.  (a) Requires the chief appraiser to waive
the penalty imposed by Section 22.28 or 22.29 if the person exercised
reasonable diligence to comply with or has substantially complied with the
requirements of this chapter.  Requires a written request, accompanied by
supporting documentation, stating the grounds on which penalties should be
waived to be sent to the chief appraiser not later than the 30th day after
the date the person received notification of the imposition of the
penalty.  Requires the chief appraiser to make a determination of the
penalty waiver request based on the information submitted. 

(b) Requires the chief appraiser to notify the person of the chief
appraiser's determination regarding the penalty waiver request after
considering certain factors. 

SECTION 6.  Amends Section 25.19, Tax Code, by adding Subsection (k), to
prohibit the chief  appraiser, not withstanding any other provision of
this section, from delivering a written notice concerning property that is
required to be rendered under Chapter 22 until the applicable deadline for
filing the rendition statement has passed. 

SECTION 7.  Amends Section 41.43, Tax Code, by amending Subsection (a) and
adding Subsection (d), as follows: 

(a) Makes a conforming change related to the creation of Subsection (d),
as added by this Act. Provides that in a protest authorized by Section
41.41(a)(1), rather than 41.41(1), the appraisal district has the burden
of establishing the value of the property by a preponderance of the
evidence presented at the hearing. 

(d) Provides that if the property owner fails to deliver, before the date
of the hearing, a rendition statement or property report required by
Chapter 22, the property owner has the burden of establishing the value of
the property by a preponderance of the evidence presented at the hearing.
Requires the protest to be determined in favor of the appraisal district,
if the property owner fails to meet the standard. 

SECTION 8.  Effective date: January 1, 2004.
            Makes application of this Act prospective.