H.B. No. 2726
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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2726 was passed by the House on May
10, 2003, by a non-record vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2726 was passed by the Senate on May
28, 2003, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor