78R4922 SMH-D


By:  Talton                                                       H.B. No. 2726



A BILL TO BE ENTITLED

AN ACT

relating to authorizing an owner of inventory to waive the right to 
have the inventory appraised for ad valorem tax purposes at the 
price for which it would sell as a unit.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 23.20(a)-(e), Tax Code, are amended to 
read as follows: 
	(a)  An owner of inventory or real property may in writing 
waive the right to special appraisal provided by Section 23.12 or
Subchapter C, D, E, F, or G [of this chapter] as to one or more 
taxing units designated in the waiver.  In a tax year in which a 
waiver is in effect, the property is appraised for each taxing unit 
to which the waiver applies at the value determined under 
Subchapter A of this chapter or the value determined under Section 
23.12 or Subchapter C, D, E, F, or G [of this chapter], whichever is 
the greater value.
	(b)  A waiver of the right to special appraisal provided by 
Section 23.12 may be submitted at any time.  A waiver of the right to 
special appraisal provided by Subchapter C, D, E, F, or G may be 
submitted with an application for appraisal under that subchapter
[Subchapter C, D, E, F, or G of this chapter] or at any other time.  
A property owner who has waived special appraisal under this 
section as to one or more taxing units may make additional waivers 
under this section as to other taxing units in which the property is 
located.
	(c)  A waiver under this section is effective for 25 
consecutive tax years beginning on the first tax year in which the 
waiver is effective without regard to whether the property is 
subject to appraisal under Section 23.12 or Subchapter C, D, E, F, 
or G [of this chapter].  To be effective in the year in which the 
waiver is executed, it must be filed before May 1 of that year with 
the chief appraiser of the appraisal district in which the property 
is located, unless for good cause shown the chief appraiser extends 
the filing deadline for not more than 60 days.  An application filed 
after the year's deadline takes effect in the next tax year.
	(d)  A waiver filed under this section is applicable to the 
property for the term of the waiver, runs with any [the] land to 
which the waiver applies, and is binding on the owner who executed 
the waiver and any successor in interest.  A waiver may not be 
revoked as to any taxing unit except on approval by official action 
of the governing body of the taxing unit on a finding by the 
governing body that the revocation of the waiver would not 
materially impair the contractual, bond, or other debt obligation 
of the taxing unit wholly or partly payable from property taxes to 
which the property is subject.  An application for revocation must 
be filed with the governing body of each taxing unit to which the 
revocation is to apply.  A waiver may not be revoked if revocation 
is prohibited under a rule adopted under Subsection (e) [of this 
section].  The revocation is effective in the year in which the 
governing body approves the revocation if the chief appraiser 
receives a written notice of the approval before the appraisal 
review board approves the appraisal records.  If the notice is not 
received before the deadline the revocation takes effect in the 
next tax year.
	(e)  The Texas [Natural Resource Conservation] Commission on 
Environmental Quality, a commissioners court, and the Texas 
Transportation Commission each, by rule, may ensure that a waiver 
under this section that applies to real property is properly and 
timely executed, and is irrevocable by the owner of the property to 
which the waiver applies or by any other related person receiving or 
proposing to receive, directly or indirectly, the proceeds of any 
bonds issued by or to be issued by the taxing unit.  The rules of the 
Texas [Natural Resource Conservation] Commission on Environmental 
Quality apply to waivers applicable to taxing units that are 
conservation and reclamation districts subject to the jurisdiction 
of the commission.  The rules of the commissioners court apply to 
waivers applicable to taxing units that are road districts created 
by the commissioners court.  The rules of the Texas Transportation 
Commission apply to waivers applicable to taxing units that are 
road utility districts subject to the jurisdiction of the 
commission.
	SECTION 2.  This Act takes effect January 1, 2004, and 
applies only to the appraisal of property for ad valorem tax 
purposes for a tax year beginning on or after that date.