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78R1342 SMH-D

By:  Merritt                                                      H.B. No. 395



A BILL TO BE ENTITLED

AN ACT

relating to the rendition of property for ad valorem tax purposes 
and to the imposition of a penalty for failure to render property.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 22.01(a), Tax Code, is amended to read as 
follows:       
	(a)  Except as provided by Chapter 24 of this code, a person 
shall render for taxation:
		(1)  all tangible personal property used for the 
production of income that the person [he] owns or that the person
[he] manages and controls as a fiduciary on January 1; and
		(2)  all residential real property, and all real 
property used for the production of income other than property 
appraised under Subchapter C, D, E, F, G, or H, Chapter 23, that the 
person owns or that the person manages and controls as a fiduciary 
on January 1 if the person did not own the property or manage and 
control the property as a fiduciary on the preceding January 1.
	SECTION 2.  Subchapter B, Chapter 22, Tax Code, is amended by 
adding Section 22.28 to read as follows:
	Sec. 22.28.  PENALTY FOR FAILURE TO DELIVER RENDITION 
STATEMENT OR PROPERTY REPORT.  (a) If a person required by this 
chapter to deliver a rendition statement or property report to the 
chief appraiser fails to deliver the statement or report in the time 
required by this chapter, a penalty is imposed on the property 
required to be included on the statement or report by each taxing 
unit that imposes taxes on the property.  The penalty is equal to 10 
percent of the taxes imposed by the taxing unit for the tax year on 
the property.
	(b)  If a person delivers a rendition statement or property 
report required by this chapter to the chief appraiser after May 15 
but before June 1, the chief appraiser shall:
		(1)  appraise the property as of January 1 of the year 
in which the person was required to deliver the statement or report 
and enter in the appraisal records the appraised and taxable value 
of the property, if the property was not previously included in the 
appraisal records;
		(2)  make an entry in the appraisal records for the  
property indicating liability for the penalty imposed under 
Subsection (a); and
		(3)  send a written notice of imposition of the penalty 
to the person who delivered the statement or report that includes an 
explanation of the procedures for protesting the imposition of the 
penalty.
	(c)  If on or after June 1 the chief appraiser discovers that 
a person required by this chapter to deliver a rendition statement 
or property report failed to deliver the statement or report before 
June 1, the chief appraiser shall:
		(1)  appraise the property as of January 1 of the year 
in which the person was required to deliver the statement or report 
and enter in the appraisal records the appraised and taxable value 
of the property, if the property was not previously included in the 
appraisal records;
		(2)  make an entry in the appraisal records for the 
property indicating liability for the penalty imposed under 
Subsection (a); and
		(3)  send written notice of imposition of the penalty 
to the person required to deliver the statement or report that 
includes an explanation of the procedures for protesting the 
imposition of the penalty.
	(d)  The assessor for each taxing unit that imposes taxes on 
the property shall add the amount of the penalty to the unit's tax 
bill for taxes on the property or, if the tax bill has been 
delivered, shall deliver to the property owner a supplemental bill 
for the penalty.  The penalty is due and shall be collected at the 
same time and in the same manner as the taxes on the property.
	(e)  A penalty imposed under Subsection (a) that becomes 
delinquent accrues penalties and interest in the same manner as a 
delinquent tax.
	(f)  A penalty imposed under Subsection (a) and any penalty 
or interest accruing on the penalty:
		(1)  are the personal obligation of the property owner; 
and          
		(2)  constitute a lien on the property on which the 
penalty is imposed.
	(g)  This section does not apply to a rendition statement or 
property report required or permitted by Section 22.02 or 22.03.
	SECTION 3.  This Act takes effect January 1, 2004, and 
applies only to the rendition of property for ad valorem tax 
purposes for a tax year beginning on or after that date.