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78R7090 SMH-D
By: Hill H.B. No. 1807
A BILL TO BE ENTITLED
AN ACT
relating to the rendition of property for ad valorem tax purposes
and to the consequences of a 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 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.
SECTION 2. Section 22.24(d), Tax Code, is amended to read as
follows:
(d) A rendition or report form shall require an owner of
property described by Section 22.01(a) to state the owner's opinion
about the market value of the property. A rendition or report form
shall permit but may not require an [a property] owner of property
other than property described by Section 22.01(a) to state the
owner's [his] opinion about the market value of the [his] property.
An owner of property described by Section 22.01(a) shall base the
owner's opinion about the market value of the property on the cost
of the property less an amount for any depreciation in the value of
the property, except that if the owner believes that use of that
method does not accurately establish the market value of the
property and the owner provides documentation in support of that
belief and in support of the accuracy of another valuation method,
the owner may base the owner's opinion on the other valuation
method.
SECTION 3. Subchapter B, Chapter 22, Tax Code, is amended by
adding Sections 22.28 and 22.29 to read as follows:
Sec. 22.28. PENALTY FOR FAILURE TO DELIVER RENDITION
STATEMENT OR PROPERTY REPORT. (a) If a person required by Section
22.01, 22.04, or 22.05 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, the chief appraiser may
provide written notice to the person that a penalty will be imposed
unless the person delivers the statement or report. If the person
fails to deliver the statement or report before the 60th day after
the date the notice is given, 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.
(b) The amount of the penalty is equal to the product of:
(1) the amount of taxes ultimately imposed by the
taxing unit for the tax year on the property divided by the
aggregate amount of taxes ultimately imposed by all taxing units
for the tax year on the property; and
(2) the sum of:
(A) $10,000; and
(B) $1,000 for each day that the rendition
statement or property report is not delivered following the 60th
day after the date notice is given under Subsection (a).
(c) If a person required by Section 22.01, 22.04, or 22.05
to deliver a rendition statement or property report to the chief
appraiser fails to deliver the statement or report in the time
required by Subsection (a), the chief appraiser shall:
(1) appraise the property as of January 1 of the year
in which the person was required to deliver the rendition statement
or property 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 the amount of the penalty, if known; and
(3) send a 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.
Sec. 22.29. INVESTIGATIONS AND AUDITS. (a) The chief
appraiser, or a person authorized by the chief appraiser in
writing, may:
(1) examine, copy, and photograph the books, records,
and papers of a person who files a rendition statement or property
report required by this chapter to verify the accuracy of the
statement or report; and
(2) by delivery of written notice to the property
owner or to an employee, representative, or agent of the property
owner, not later than the 10th working day after the date the notice
is delivered, require the property owner to produce to the chief
appraiser or an agent or designated representative of the chief
appraiser for inspection the books, records, and papers used as a
basis for the preparation of the rendition statement or property
report.
(b) If the chief appraiser determines as the result of an
investigation under this section that the chief appraiser's
reliance on a rendition statement or property report resulted in
the omission or undervaluation of taxable property in the current
tax year or in any one of the two preceding tax years in the case of
tangible personal property or in any one of the five preceding tax
years in the case of real property, the chief appraiser shall add
the omitted property or the portion of the appraised value of
undervalued property that was erroneously omitted for each tax year
to the appraisal roll as provided by Section 25.21 for other
property that escapes taxation.
(c) Copies of books, records, or papers made or retained by
the chief appraiser or an agent or representative of the chief
appraiser in the course of an investigation under this section are
confidential to the same degree that a rendition statement or
property report is confidential under Section 22.27.
(d) If a property owner fails to comply with Subsection
(a)(2), the chief appraiser may provide written notice to the
property owner that a penalty will be imposed unless the person
complies with that subsection. If the person fails to comply with
that subsection before the 60th day after the date the notice is
given, a penalty is imposed on the property required to be included
on the rendition statement or report by each taxing unit that
imposes taxes on the property. Section 22.28 applies to a penalty
imposed under this subsection as if the penalty were imposed under
that section.
SECTION 4. Section 41.41(a), Tax Code, is amended to read as
follows:
(a) A property owner is entitled to protest before the
appraisal review board the following actions:
(1) determination of the appraised value of the
owner's property or, in the case of land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, determination of its appraised
or market value;
(2) unequal appraisal of the owner's property;
(3) inclusion of the owner's property on the appraisal
records;
(4) denial to the property owner in whole or in part of
a partial exemption;
(5) determination that the owner's land does not
qualify for appraisal as provided by Subchapter C, D, E, or H,
Chapter 23;
(6) identification of the taxing units in which the
owner's property is taxable in the case of the appraisal district's
appraisal roll;
(7) determination that the property owner is the owner
of property;
(8) a determination that a change in use of land
appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
[or]
(9) the imposition of a penalty under Section 22.28 or
22.29; or
(10) any other action of the chief appraiser,
appraisal district, or appraisal review board that applies to and
adversely affects the property owner.
SECTION 5. Section 42.29, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) A taxing unit that prevails in an appeal by a property
owner of the imposition of a penalty under Section 22.28 or 22.29
may be awarded court costs and reasonable attorney's fees.
SECTION 6. This Act takes effect January 1, 2004, and
applies only to ad valorem taxes imposed for a tax year beginning on
or after that date and the rendition of property for ad valorem tax
purposes for a tax year that begins on or after that date.