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78R5751 SMH-D
By: Giddings H.B. No. 2803
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. Subchapter B, Chapter 22, Tax Code, is amended by
adding Section 22.231 to read as follows:
Sec. 22.231. REQUIREMENT TO DELIVER RENDITION STATEMENT OR
PROPERTY REPORT; INJUNCTION. (a) A requirement under this chapter
to deliver a rendition statement or property report to a chief
appraiser is mandatory.
(b) 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, the chief appraiser may bring suit for an injunction
requiring the person to deliver the statement or report.
SECTION 2. Section 22.24, Tax Code, is amended by amending
Subsections (c) and (d) and adding Subsections (c-1) and (c-2) to
read as follows:
(c) The comptroller may prescribe or approve different
forms for different kinds of property but shall ensure that each
form requires a property owner to furnish the information necessary
to identify the property and to determine its ownership,
taxability, and situs.
(c-1) A rendition or report form for tangible personal
property used for the production of income must require the
property owner to describe the property and to state:
(1) the location of the property;
(2) the original cost of the property as reflected in
the books and records of the property owner;
(3) the tax year in which the property owner acquired
the property; and
(4) the property owner's good faith estimate of the
market value of the property.
(c-2) A rendition or report form may require a property
owner to include other information that the comptroller determines
to be necessary for the proper administration of taxation of
property subject to this chapter but may not require a property
owner to furnish information not relevant to the appraisal of
property for tax purposes or to the assessment or collection of
property taxes.
(d) A rendition or report form for property other than
tangible personal property used for the production of income shall
permit but may not require a property owner to state the property
owner's [his] opinion about the market value of the [his] property.
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, 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:
(1) five percent of the amount of taxes ultimately
imposed by the taxing unit for the tax year on the property if the
person delivers the rendition statement or property report to the
chief appraiser before the 31st day after the date the statement or
report is due; or
(2) 10 percent of the amount of taxes ultimately
imposed by the taxing unit for the tax year on the property if the
person fails to deliver the rendition statement or property report
to the chief appraiser before the 31st day after the date the
statement or report is due.
(c) Notwithstanding Subsection (b), if the amount of the
penalty computed under that subsection is less than $1, the amount
of the penalty is $1.
(d) The penalty provided by this section is not imposed if:
(1) the rendition statement or property report was
required by Section 22.01; and
(2) the chief appraiser determines that the appraised
value of the property for which the statement or report was required
does not exceed $10,000.
(e) 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 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.
(f) 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.
(g) A penalty imposed under Subsection (a) that becomes
delinquent accrues penalties and interest in the same manner as a
delinquent tax.
(h) 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 may apply to the appraisal review board for authorization
to conduct an investigation of a property owner under this section.
The appraisal review board may authorize the investigation on a
showing of good cause for the investigation. If the appraisal
review board authorizes the investigation, 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 five preceding tax years, 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) The chief appraiser may not conduct an investigation of
a property owner under this section more frequently than once every
three years, except that if the chief appraiser takes action under
Subsection (b) as a result of an investigation of a property owner,
the chief appraiser, with the authorization of the appraisal review
board, may conduct an investigation of the property owner in the
following year.
(d) 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.
(e) The chief appraiser may not employ a person on a
contingency fee basis to conduct an audit under this section.
SECTION 4. The heading to Section 23.011, Tax Code, is
amended to read as follows:
Sec. 23.011. COST METHOD OF APPRAISAL: REAL PROPERTY.
SECTION 5. Subchapter A, Chapter 23, Tax Code, is amended by
adding Section 23.0115 to read as follows:
Sec. 23.0115. COST METHOD OF APPRAISAL: TANGIBLE PERSONAL
PROPERTY. (a) If the chief appraiser uses the cost method of
appraisal to determine the value of tangible personal property used
for the production of income on the basis of information provided in
a rendition statement or property report, the chief appraiser shall
use the methods and procedures specified by the appraisal manuals
developed under Subsection (b) to determine the depreciated value
of the property.
(b) The comptroller by rule shall develop and distribute to
each appraisal office appraisal manuals that:
(1) prescribe depreciation schedules for common types
of tangible personal property used for the production of income;
(2) specify the methods of applying the schedules to
appraise property on the basis of information provided in a
rendition statement or property report; and
(3) prescribe the method that a chief appraiser shall
use to calculate depreciation for any type of tangible personal
property used for the production of income that is not covered by a
depreciation schedule prescribed by the comptroller.
SECTION 6. Section 41.43, Tax Code, is amended by amending
Subsection (a) and adding Subsection (d) to read as follows:
(a) Except as provided by Subsection (d), in [In] a protest
authorized by Section 41.41(a)(1) [41.41(1)] or (2), the appraisal
district has the burden of establishing the value of the property by
a preponderance of the evidence presented at the hearing. If the
appraisal district fails to meet that standard, the protest shall
be determined in favor of the property owner.
(d) If before the date of the hearing the property owner
fails to deliver a rendition statement or property report as
required by Chapter 22 for the property that is the subject of the
protest:
(1) the property owner has the burden of establishing
the value of the property by a preponderance of the evidence
presented at the hearing; and
(2) if the property owner fails to meet the standard
provided by Subdivision (1), the protest shall be determined in
favor of the appraisal district.
SECTION 7. Section 42.29, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) Notwithstanding Subsection (a), a property owner may
not be awarded attorney's fees if the property owner fails to timely
deliver a rendition statement or property report as required by
Chapter 22 for the property that is the subject of the appeal.
SECTION 8. (a) 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.
(b) Section 22.29, Tax Code, as added by this Act,
authorizes the addition to an appraisal roll of omitted property or
the portion of the appraised value of undervalued property that was
erroneously omitted only for a tax year beginning on or after the
effective date of this Act.
(c) If a person failed to render or report property for
taxation as required by Chapter 22, Tax Code, for a tax year that
began before January 1, 2004, but, before a chief appraiser
requests the person to render or report the property or brings a
suit to require the person to render or report the property,
voluntarily renders or reports the property for taxation as
required by that chapter for a tax year that begins on or after
January 1, 2004, a chief appraiser may not add the property to an
appraisal roll for a tax year beginning before January 1, 2004. For
purposes of this subsection, an inventory of tangible personal
property is considered the same property in different tax years if
the inventory is located at the same place and consists of similar
tangible personal property in each tax year.