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79R3170 JD-D
By: Oliveira H.B. No. 626
A BILL TO BE ENTITLED
AN ACT
relating to the imposition, administration, enforcement, and
collection of a state property tax for general elementary and
secondary public school purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 45, Education Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. STATE AD VALOREM TAX
Sec. 45.251. STATE AD VALOREM TAX. (a) The state ad
valorem tax rate is $1.25 per $100 of taxable value of property
subject to the tax.
(b) Except as otherwise provided by law, the state shall be
treated, for purposes of the state ad valorem tax, as a taxing unit
under Title 1, Tax Code.
Sec. 45.252. APPRAISAL OF PROPERTY. (a) Property subject
to the state ad valorem tax shall be appraised by the appraisal
district for the county in which the property has taxable situs
under Chapter 21, Tax Code.
(b) Property subject to the state ad valorem tax shall be
appraised in the manner provided by Title 1, Tax Code, for the
appraisal of property subject to ad valorem taxation by a county.
Sec. 45.253. TAX COLLECTION. (a) The assessor-collector
for each county shall assess and collect state ad valorem taxes
imposed on property included on the appraisal roll for state
taxation certified to the county assessor-collector under Section
26.01, Tax Code, unless the commissioners court of the county
contracts with an official, taxing unit, or political subdivision
of this state for the assessment or collection of the ad valorem
taxes of the county, in which event the official, taxing unit, or
political subdivision shall also assess or collect, as applicable,
the state ad valorem taxes.
(b) Each assessor or collector of state ad valorem taxes is
entitled to be reimbursed by the comptroller for the actual costs
incurred by the assessor or collector in assessing or collecting
state ad valorem taxes. However, an assessor or collector is not
entitled to be reimbursed for any amount that is greater than the
additional incremental costs incurred in assessing or collecting
the state ad valorem taxes.
(c) The comptroller shall:
(1) prescribe methods of accounting for and remitting
state ad valorem taxes;
(2) prescribe methods for establishing an assessor's
or collector's additional incremental costs incurred in assessing
or collecting state ad valorem taxes;
(3) prescribe and furnish forms for periodic reports
relating to state ad valorem taxes; and
(4) periodically examine the records of each assessor
or collector of state ad valorem taxes to verify the accuracy of any
reports required under this subsection.
(d) The comptroller may require an assessor or collector of
state ad valorem taxes to give a bond to the state, conditioned on
the faithful performance of the person's duties as assessor or
collector, and may require a county assessor-collector to increase
the bond for state taxes given under Section 6.28, Tax Code, in the
amount the comptroller considers appropriate to protect the state
from potential losses with regard to collection of state ad valorem
taxes.
Sec. 45.254. DUTIES AND POWERS OF COMPTROLLER. (a) Except
as otherwise provided by this subchapter, a duty imposed on or power
granted to the governing body of a taxing unit by Title 1, Tax Code,
may, for purposes of the state ad valorem tax under this subchapter,
be exercised by the comptroller. A reference to the presiding
officer of a governing body in Title 1, Tax Code, is a reference to
the comptroller for the purposes of the state tax under this
subchapter.
(b) The comptroller may delegate to the county
assessor-collector any function of the comptroller with respect to
the state ad valorem tax and may designate the county
assessor-collector as the comptroller's agent for purposes of
administration of the state ad valorem tax.
Sec. 45.255. ADMINISTRATION AND REFUND ACCOUNTS. The
comptroller shall deposit to the credit of the general revenue fund
in appropriately designated accounts an amount of revenue collected
from the state ad valorem tax to pay for the comptroller's expenses
in administering this subchapter and for the payment of tax refunds
that may become payable.
Sec. 45.256. NONAPPLICABILITY OF CERTAIN OTHER TAX LAWS.
Title 2, Tax Code, does not apply to the state ad valorem tax under
this subchapter.
Sec. 45.257. TAX INCREMENT FINANCING. (a) Except as
otherwise provided by this section, the state may not pay any
portion of the tax increment produced by the state into the tax
increment fund for a reinvestment zone designated under Chapter
311, Tax Code.
(b) If a reinvestment zone was designated under Chapter 311,
Tax Code, before January 1, 2006, and a school district entered into
an agreement with the governing body of the municipality that
created the zone to pay into the tax increment fund for the zone any
portion of the school district's tax increment produced from
property located in the zone, the portion of the tax increment
produced by the school district that must be paid into the tax
increment fund shall be determined as provided by this subsection,
notwithstanding the terms of the agreement, and the state shall pay
a portion of the tax increment produced by the state into the tax
increment fund as determined by this subsection. The collector for
the municipality shall calculate the portion of the total amount of
tax increment produced by the school district and the state that the
school district would be required to pay into the tax increment fund
under the agreement if that total amount of tax increment were
produced solely by the school district. That amount shall be
apportioned between the school district and the state in proportion
to the amount of tax increment produced by each of those entities,
and each entity shall pay the amount apportioned to it into the tax
increment fund.
(c) If the reinvestment zone was designated under Chapter
311, Tax Code, before this subchapter took effect, the tax
increment base of the state is calculated under Section 311.012,
Tax Code, as if this subchapter were in effect for the year in which
the zone was designated.
(d) If the reinvestment zone includes property taxable by
more than one school district, the amount of tax increment required
to be paid into the tax increment fund by each school district and
the state shall be calculated as provided by Subsection (b)
separately for the portion of the reinvestment zone located in each
school district.
Sec. 45.258. TAX ABATEMENT. (a) Except as otherwise
provided by this section, the state may not participate in tax
abatement under Section 311.0125 or 311.013(g) or Chapter 312, Tax
Code.
(b) If school district property taxes on property located in
the taxing jurisdiction of a school district are abated under a tax
abatement agreement entered into by the school district under
Chapter 312, Tax Code, the terms of the agreement regarding the
portion of the value of the property that is to be exempted from
taxation in each year of the agreement apply to the taxation of the
property by the state. A modification of the agreement by the
parties to the agreement under Section 312.208, Tax Code, that
increases the portion of the value of the property that is to be
exempted from taxation or that extends the duration of the
agreement does not apply to the taxation of the property by the
state unless the modification is entered into before January 1,
2006.
Sec. 45.259. LIMITATION ON APPRAISED VALUE OF CERTAIN
PROPERTY FOR STATE TAXATION. This section applies only in
connection with property for which before January 1, 2006, the
governing body of a school district has entered into a written
agreement with a property owner under Section 313.027, Tax Code,
for the implementation of a limitation on appraised value under
Subchapter B or C, Chapter 313, Tax Code. In each tax year in which
the appraised value of the property is subject to the limitation,
the appraised value of the property for purposes of the taxation of
the property by the state is the same as the appraised value of the
property for school district tax purposes.
SECTION 2. Subchapter A, Chapter 6, Tax Code, is amended by
adding Section 6.038 to read as follows:
Sec. 6.038. STATE PARTICIPATION. (a) The comptroller and
the state do not participate in the election of the board of
directors of an appraisal district, the governance or management of
the district, or the determination of the district's finances and
budget.
(b) The comptroller by rule shall establish guidelines and
criteria under which, if the comptroller finds that generally
accepted appraisal standards and practices were not used by the
appraisal district appraising property subject to the state ad
valorem tax or that the appraised values assigned to property
subject to that tax are invalid, the comptroller may:
(1) withhold payment of all or part of the portion of
the amount of the budget of the appraisal district that is allocated
to the state until the district takes appropriate actions to remedy
the deficiencies in appraisals found by the comptroller; or
(2) direct that all or any part of the portion of the
amount of the budget of the district allocated to the state be
applied to remedying those deficiencies.
SECTION 3. Section 6.06(d), Tax Code, is amended to read as
follows:
(d) The state and each [Each] taxing unit participating in
the district are each [is] allocated a portion of the amount of the
budget equal to the proportion that the total dollar amount of
property taxes imposed in the district by the state or taxing unit
for the tax year in which the budget proposal is prepared bears to
the sum of the total dollar amount of property taxes imposed in the
district by the state and each participating unit for that year.
For purposes of this subsection, only state ad valorem taxes
imposed in the county for which the district is established are
considered as state ad valorem taxes imposed in the district. If a
taxing unit participates in two or more districts, only the taxes
imposed in a district are used to calculate the unit's cost
allocations in that district. If the number of real property
parcels in a taxing unit is less than 5 percent of the total number
of real property parcels in the district and the taxing unit imposes
in excess of 25 percent of the total amount of the property taxes
imposed in the district by all of the participating taxing units for
a year, the unit's allocation may not exceed a percentage of the
appraisal district's budget equal to three times the unit's
percentage of the total number of real property parcels appraised
by the district.
SECTION 4. Sections 11.13(b) and (c), Tax Code, are amended
to read as follows:
(b) An adult is entitled to exemption from taxation by a
school district of $40,000 [$15,000] of the appraised value of the
adult's residence homestead, except that $35,000 [$10,000] of the
school district exemption does not apply to an entity operating
under former Chapter 17, 18, 25, 26, 27, or 28, Education Code, as
those chapters existed on May 1, 1995, as permitted by Section
11.301, Education Code.
(c) In addition to the exemption provided by Subsection (b)
[of this section], an adult who is disabled or is 65 years of age or
older is entitled to an exemption from taxation by the state for
public school purposes or by a school district of $10,000 of the
appraised value of the adult's [his] residence homestead.
SECTION 5. Section 11.14, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) Subsection (c) does not apply to the comptroller or to
the state ad valorem tax.
SECTION 6. Section 11.26, Tax Code, is amended by amending
Subsection (a) and adding Subsection (a-1) to read as follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. A school
district may not increase the total annual amount of ad valorem tax
it imposes on the residence homestead of an individual 65 years of
age or older or on the residence homestead of an individual who is
disabled, as defined by Section 11.13, above the amount of the tax
it imposed in the first tax year in which the individual qualified
that residence homestead for the applicable exemption provided by
Section 11.13(c) for an individual who is 65 years of age or older
or is disabled. If the individual qualified that residence
homestead for the exemption after the beginning of that first year
and the residence homestead remains eligible for the same exemption
for the next year, and if the school district taxes imposed on the
residence homestead in the next year are less than the amount of
taxes imposed in that first year, a school district may not
subsequently increase the total annual amount of ad valorem taxes
it imposes on the residence homestead above the amount it imposed in
the year immediately following the first year for which the
individual qualified that residence homestead for the same
exemption, except as provided by Subsection (b). [If the first tax
year the individual qualified the residence homestead for the
exemption provided by Section 11.13(c) for individuals 65 years of
age or older was a tax year before the 1997 tax year, the amount of
the limitation provided by this section is the amount of tax the
school district imposed for the 1996 tax year less an amount equal
to the amount determined by multiplying $10,000 times the tax rate
of the school district for the 1997 tax year, plus any 1997 tax
attributable to improvements made in 1996, other than improvements
made to comply with governmental regulations or repairs.]
(a-1) If the first tax year the individual qualified the
residence homestead for the applicable exemption provided by
Section 11.13(c) for individuals 65 years of age or older or
disabled was a tax year before the 1997 tax year, the amount of the
limitation on school district taxes provided by this section is the
amount of tax the school district imposed on the residence
homestead for the 2005 tax year less the sum of an amount equal to
the amount determined by multiplying $10,000 times the tax rate of
the school district for the 1997 tax year and an amount equal to the
amount determined by multiplying $25,000 times the tax rate of the
school district for the 2006 tax year, plus any 2006 tax
attributable to improvements made in 2005, other than improvements
made to comply with governmental regulations or repairs. If the
first tax year the individual qualified the residence homestead for
the applicable exemption provided by Section 11.13(c) for an
individual who is 65 years of age or older or disabled was a tax year
before the 2006 tax year but not before the 1997 tax year, the
amount of the limitation on school district taxes provided by this
section is the amount of tax the school district imposed on the
residence homestead for the 2005 tax year less an amount equal to
the amount determined by multiplying $25,000 times the tax rate of
the school district for the 2006 tax year, plus any 2006 tax
attributable to improvements made in 2005, other than improvements
made to comply with governmental regulations or repairs.
SECTION 7. Section 11.251(i), Tax Code, is amended to read
as follows:
(i) The exemption provided by Subsection (b) does not apply
to a taxing unit that takes action to tax the property under Article
VIII, Section 1-j, Subsection (b), of the Texas Constitution. If
the property is located in a school district that taxes the property
in the tax year, the property is not exempt from state ad valorem
taxes imposed under Section 1-n, Article VIII, Texas Constitution,
in that tax year.
SECTION 8. Section 21.03(a), Tax Code, is amended to read as
follows:
(a) If personal property that is taxable by this state or a
taxing unit of this state is used continually outside this state,
whether regularly or irregularly, the appraisal office shall
allocate to this state the portion of the total market value of the
property that fairly reflects its use in this state.
SECTION 9. Section 21.031(a), Tax Code, is amended to read
as follows:
(a) If a vessel or other watercraft that is taxable by this
state or a taxing unit of this state is used continually outside
this state, whether regularly or irregularly, the appraisal office
shall allocate to this state the portion of the total market value
of the vessel or watercraft that fairly reflects its use in this
state. The appraisal office shall not allocate to this state the
portion of the total market value of the vessel or watercraft that
fairly reflects its use in another state or country, in
international waters, or beyond the Gulfward boundary of this
state.
SECTION 10. Section 22.28, Tax Code, is amended to read as
follows:
Sec. 22.28. PENALTY FOR DELINQUENT REPORT. (a) Except as
otherwise provided by Section 22.30, the chief appraiser shall
impose a penalty on a person who fails to timely file a rendition
statement or property report required by this chapter in an amount
equal to 10 percent of the total amount of taxes imposed on the
property for that year by the state, if the property has taxable
situs in the county for which the appraisal district is
established, and by the other taxing units participating in the
appraisal district.
(b) The chief appraiser may retain a portion of a penalty
collected under this section, not to exceed 20 percent of the amount
of the penalty, to cover the chief appraiser's costs of collecting
the penalty. The chief appraiser shall distribute the remainder of
the penalty to the state and each taxing unit participating in the
appraisal district that imposes taxes on the property in proportion
to the state's or the taxing unit's share of the total amount of
taxes imposed on the property by the state and all other taxing
units participating in the district used to determine the amount of
the penalty.
SECTION 11. Sections 22.29(a) and (d), Tax Code, are
amended to read as follows:
(a) The chief appraiser shall impose an additional penalty
on the person equal to 50 percent of the total amount of taxes
imposed on the property for the tax year of the statement or report
by the state, if the property has taxable situs in the county for
which the appraisal district is established, and by the other
taxing units participating in the appraisal district if it is
finally determined by a court that:
(1) the person filed a false statement or report with
the intent to commit fraud or to evade the tax; or
(2) the person alters, destroys, or conceals any
record, document, or thing, or presents to the chief appraiser any
altered or fraudulent record, document, or thing, or otherwise
engages in fraudulent conduct, for the purpose of affecting the
course or outcome of an inspection, investigation, determination,
or other proceeding before the appraisal district.
(d) The chief appraiser may retain a portion of a penalty
collected under this section, not to exceed 20 percent of the amount
of the penalty, to cover the chief appraiser's costs of collecting
the penalty. The chief appraiser shall distribute the remainder of
the penalty to the state and each taxing unit participating in the
appraisal district that imposes taxes on the property in proportion
to the state's or the taxing unit's share of the total amount of
taxes imposed on the property by the state and all other taxing
units participating in the district used to determine the amount of
the penalty.
SECTION 12. Section 23.46(d), Tax Code, is amended to read
as follows:
(d) A tax lien attaches to the land on the date the sale or
change of use occurs to secure payment of the additional tax and
interest imposed by Subsection (c) [of this section] and any
penalties incurred. The lien exists in favor of the state and all
other taxing units for which the additional tax is imposed.
SECTION 13. Section 23.55(b), Tax Code, is amended to read
as follows:
(b) A tax lien attaches to the land on the date the change of
use occurs to secure payment of the additional tax and interest
imposed by this section and any penalties incurred. The lien exists
in favor of the state and all other taxing units for which the
additional tax is imposed.
SECTION 14. Section 23.76(b), Tax Code, is amended to read
as follows:
(b) A tax lien attaches to the land on the date the change of
use occurs to secure payment of the additional tax and interest
imposed by this section and any penalties incurred. The lien exists
in favor of the state and all other taxing units for which the
additional tax is imposed.
SECTION 15. Section 23.86(b), Tax Code, is amended to read
as follows:
(b) A tax lien attaches to the land on the date the change of
use occurs or the deed restriction expires to secure payment of the
additional tax and interest imposed by this section and any
penalties incurred. The lien exists in favor of the state and all
other taxing units for which the additional tax is imposed.
SECTION 16. Section 23.96(b), Tax Code, is amended to read
as follows:
(b) A tax lien attaches to the property on the date the deed
restriction expires to secure payment of the additional tax and
interest imposed by this section and any penalties incurred. The
lien exists in favor of the state and all other taxing units for
which the additional tax is imposed.
SECTION 17. Section 23.9807(c), Tax Code, is amended to
read as follows:
(c) A tax lien attaches to the land on the date the change of
use occurs to secure payment of the additional tax and interest
imposed by this section and any penalties incurred. The lien exists
in favor of the state and all other taxing units for which the
additional tax is imposed.
SECTION 18. Section 25.19(b), Tax Code, as amended by
Chapters 1358 and 1517, Acts of the 76th Legislature, Regular
Session, 1999, is reenacted and amended to read as follows:
(b) The chief appraiser shall separate real from personal
property and include in the notice for each:
(1) a list of the taxing units other than the state in
which the property is taxable and, if the property is appraised by
the appraisal district for state taxation, a statement that the
property is subject to the state tax for education purposes;
(2) the appraised value of the property in the
preceding year;
(3) the taxable value of the property in the preceding
year for each taxing unit taxing the property and, if the property
is appraised by the appraisal district for state taxation, for
state taxation;
(4) the appraised value of the property for the
current year and the kind and amount of each partial exemption, if
any, approved for the current year;
(5) if the appraised value is greater than it was in
the preceding year, the amount of tax that would be imposed on the
property on the basis of the tax rate for each taxing unit other
than the state for the preceding year;
(6) in italic typeface, the following statement: "The
Texas Legislature does not set the amount of your local taxes. Your
local property tax burden is decided by your locally elected
officials, and all inquiries concerning your local taxes should be
directed to those officials";
(7) a detailed explanation of the time and procedure
for protesting the value;
(8) the date and place the appraisal review board will
begin hearing protests; and
(9) a brief explanation that the governing body of
each local taxing unit decides whether [or not] taxes on the
property will increase and the appraisal district only determines
the value of the property.
SECTION 19. The heading to Section 26.01, Tax Code, is
amended to read as follows:
Sec. 26.01. SUBMISSION OF ROLLS TO STATE AND TAXING UNITS.
SECTION 20. Sections 26.01(a), (c), and (d), Tax Code, are
amended to read as follows:
(a) By July 25, the chief appraiser shall prepare and
certify to the assessor for each taxing unit participating in the
district that part of the appraisal roll for the district that lists
the property taxable by the unit. By that date the chief appraiser
shall prepare and certify to the comptroller that part of the
appraisal roll for the district that lists property taxable by the
state in the county for which the appraisal district is
established. The part certified to the assessor or the comptroller
is the appraisal roll for the taxing unit or the state. The chief
appraiser shall consult with the assessor for each taxing unit and
the comptroller and notify each taxing unit and the comptroller in
writing by April 1 of the form in which the roll will be provided to
each unit and to the comptroller.
(c) The chief appraiser shall prepare and certify to the
assessor for each taxing unit and to the comptroller a listing of
those properties which are taxable by that unit or the state, as
applicable, but that [which] are under protest and therefore not
included on the appraisal roll approved by the appraisal review
board and certified by the chief appraiser. This listing shall
include the appraised market value, productivity value (if
applicable), and taxable value as determined by the appraisal
district and shall also include the market value, taxable value,
and productivity value (if applicable) as claimed by the property
owner filing the protest if available. If the property owner does
not claim a value and the appraised value of the property in the
current year is equal to or less than its value in the preceding
year, the listing shall include a reasonable estimate of the market
value, taxable value, and productivity value (if applicable) that
would be assigned to the property if the taxpayer's claim is upheld.
If the property owner does not claim a value and the appraised value
of the property is higher than its appraised value in the preceding
year, the listing shall include the appraised market value,
productivity value (if applicable) and taxable value of the
property in the preceding year, except that if there is a reasonable
likelihood that the appraisal review board will approve a lower
appraised value for the property than its appraised value in the
preceding year, the chief appraiser shall make a reasonable
estimate of the taxable value that would be assigned to the property
if the property owner's claim is upheld. The taxing unit shall use
the lower value for calculations as prescribed in Sections 26.04
and 26.041 [of this code].
(d) The chief appraiser shall prepare and certify to the
assessor for each taxing unit and to the comptroller a list of those
properties of which the chief appraiser has knowledge that are
reasonably likely to be taxable by that unit or the state, as
applicable, but that are not included on the appraisal roll
certified to the assessor or the comptroller under Subsection (a)
or included on the listing certified to the assessor or the
comptroller under Subsection (c). The chief appraiser shall
include on the list for each property the market value, appraised
value, and kind and amount of any partial exemptions as determined
by the appraisal district for the preceding year and a reasonable
estimate of the market value, appraised value, and kind and amount
of any partial exemptions for the current year. Until the
property is added to the appraisal roll, the assessor for the taxing
unit shall include each property on the list in the calculations
prescribed by Sections 26.04 and 26.041, and for that purpose shall
use the lower market value, appraised value, or taxable value, as
appropriate, included on or computed using the information included
on the list for the property.
SECTION 21. Chapter 26, Tax Code, is amended by adding
Section 26.011 to read as follows:
Sec. 26.011. PROVISIONS NOT APPLICABLE TO STATE TAX.
Sections 26.04, 26.041, 26.05, 26.051, 26.06, 26.07, and 26.08 do
not apply to the state ad valorem tax or to the comptroller.
SECTION 22. Section 26.09(c), Tax Code, is amended to read
as follows:
(c) The tax is calculated by:
(1) subtracting from the appraised value of a property
as shown on the appraisal roll for a taxing [the] unit or the state
the amount of any partial exemption allowed the property owner that
applies to appraised value to determine taxable [net appraised]
value; and
(2) [multiplying the net appraised value by the
assessment ratio to determine assessed value;
[(3) subtracting from the assessed value the amount of
any partial exemption allowed the property owner to determine
taxable value; and
[(4)] multiplying the taxable value by the applicable
tax rate.
SECTION 23. Section 26.12, Tax Code, is amended by adding
Subsection (e) to read as follows:
(e) For purposes of this section, the state is not a taxing
unit.
SECTION 24. Section 26.15(c), Tax Code, is amended to read
as follows:
(c) At any time, the governing body of a taxing unit, on
motion of the assessor for the unit or of a property owner, shall
direct by written order changes in the tax roll to correct errors in
the mathematical computation of a tax. The assessor shall enter the
corrections ordered by the governing body. The comptroller may
order changes in the state tax roll to correct errors in the
mathematical computation of the state tax.
SECTION 25. Section 31.11(a), Tax Code, is amended to read
as follows:
(a) If a taxpayer applies to the tax collector of a taxing
unit for a refund of an overpayment or erroneous payment of taxes
and the auditor for the unit or the comptroller in the case of the
state ad valorem tax determines that the payment was erroneous or
excessive, the tax collector shall refund the amount of the
excessive or erroneous payment from available current tax
collections or from funds appropriated by the unit for making
refunds. For taxes other than state ad valorem taxes [However], the
collector may not make the refund unless:
(1) in the case of a collector who collects taxes for
one taxing unit, the governing body of the taxing unit also
determines that the payment was erroneous or excessive and approves
the refund if the amount of the refund exceeds:
(A) $2,500 for a refund to be paid by a county
with a population of 1.5 million or more; or
(B) $500 for a refund to be paid by any other
taxing unit; or
(2) in the case of a collector who collects taxes for
more than one taxing unit, the governing body of the taxing unit
that employs the collector also determines that the payment was
erroneous or excessive and approves the refund if the amount of the
refund exceeds $2,500.
SECTION 26. Sections 32.01(a) and (d), Tax Code, are
amended to read as follows:
(a) On January 1 of each year, a tax lien attaches to
property to secure the payment of all taxes, penalties, and
interest ultimately imposed for the year by the state or a taxing
unit on the property, whether or not the taxes are imposed in the
year the lien attaches. The lien to secure the payment of state ad
valorem taxes and applicable penalties and interest exists in favor
of the state. The lien to secure the payment of taxes imposed by a
taxing unit and applicable penalties and interest exists in favor
of the [each] taxing unit having power to tax the property.
(d) The lien under this section is perfected on attachment
and, except as provided by Section 32.03(b), perfection requires no
further action by the state or taxing unit.
SECTION 27. Section 33.01(a), Tax Code, is amended to read
as follows:
(a) A delinquent tax, including a delinquent state ad
valorem tax, incurs a penalty of six percent of the amount of the
tax for the first calendar month it is delinquent plus one percent
for each additional month or portion of a month the tax remains
unpaid prior to July 1 of the year in which it becomes delinquent.
However, a tax delinquent on July 1 incurs a total penalty of twelve
percent of the amount of the delinquent tax without regard to the
number of months the tax has been delinquent. A delinquent tax
continues to incur the penalty provided by this subsection as long
as the tax remains unpaid, regardless of whether a judgment for the
delinquent tax has been rendered.
SECTION 28. Subchapter A, Chapter 33, Tax Code, is amended
by adding Section 33.11 to read as follows:
Sec. 33.11. COLLECTION OF DELINQUENT STATE AD VALOREM
TAXES; PENALTY. (a) Except as provided by Subsection (b), the
attorney general shall represent the state to enforce the
collection of delinquent state ad valorem taxes. The attorney
general may delegate the attorney general's duties under this
subsection to a county or district attorney or may contract with a
private attorney for the performance of those duties.
(b) If the commissioners court of a county contracts with a
private attorney for the collection of delinquent county ad valorem
taxes, the contract applies to the collection of delinquent state
ad valorem taxes on property taxable in that county without further
action. The compensation of the private attorney for collecting
delinquent state ad valorem taxes is equal to a percentage of the
amount collected that represents the portion of that amount
attributable to the additional penalty provided by Subsection (c).
If the commissioners court of a county contracts with an official,
taxing unit, or political subdivision of this state for the
collection of the ad valorem taxes of the county that includes the
collection of delinquent county taxes, the contract applies to the
collection of delinquent state ad valorem taxes on property taxable
in that county without further action.
(c) State ad valorem taxes that remain delinquent on July 1
of the year in which they become delinquent incur an additional
penalty to defray costs of collection if the collection of the
delinquent taxes is covered by a contract with a private attorney
under Subsection (a) or (b). The amount of the penalty is 15
percent of the amount of the taxes, penalty, and interest due.
(d) A tax lien attaches in favor of the state to the property
on which the tax is imposed to secure payment of the penalty.
(e) The attorney general or the person responsible for
collecting the delinquent tax shall deliver a notice of delinquency
and of the penalty to the property owner at least 30 and not more
than 60 days before July 1.
(f) Sections 6.30, 33.07, and 33.08 do not apply to the
state ad valorem tax.
SECTION 29. Sections 33.21(a) and (b), Tax Code, are
amended to read as follows:
(a) A person's personal property is subject to seizure for
the payment of a delinquent tax, penalty, and interest the person
[he] owes the state or other [a] taxing unit on property.
(b) A person's personal property is subject to seizure for
the payment of a tax imposed by the state or other [a] taxing unit on
the person's [his] property before the tax becomes delinquent if:
(1) the collector discovers that property on which the
tax has been or will be imposed is about to be removed from the
county; and
(2) the collector knows of no other personal property
in the county from which the tax may be satisfied.
SECTION 30. Section 33.23(b), Tax Code, is amended to read
as follows:
(b) A bond may not be required of the state or other [a]
taxing unit for issuance or delivery of a tax warrant, and a fee or
court cost may not be charged for issuance or delivery of a warrant.
SECTION 31. Section 33.44(b), Tax Code, is amended to read
as follows:
(b) For purposes of joining a county, citation may be served
on the county [tax] assessor-collector. For purposes of joining
any other taxing unit, citation may be served on the officer charged
with collecting taxes for the unit or on the presiding officer or
secretary of the governing body of the unit. For purposes of
joining the state, citation shall be served on the county
assessor-collector. Citation may be served by certified mail,
return receipt requested. A person on whom service is authorized by
this subsection may waive the issuance and service of citation in
behalf of the person's [his] taxing unit.
SECTION 32. Section 34.04(b), Tax Code, is amended to read
as follows:
(b) A copy of the petition shall be served, in the manner
prescribed by Rule 21a, Texas Rules of Civil Procedure, as amended,
or that rule's successor, on all parties to the underlying action
not later than the 20th day before the date set for a hearing on the
petition. The attorney general represents the state at the hearing
unless the attorney general delegates that duty to the county or
district attorney.
SECTION 33. The heading to Chapter 41, Tax Code, is amended
to read as follows:
CHAPTER 41. ADMINISTRATIVE [LOCAL] REVIEW
SECTION 34. Section 41.03, Tax Code, is amended to read as
follows:
Sec. 41.03. CHALLENGE BY STATE OR TAXING UNIT. (a) The
state or another [A] taxing unit is entitled to challenge before the
appraisal review board:
(1) the level of appraisals of any category of
property in the district or in any territory in the district, but
not the appraised value of a single taxpayer's property;
(2) an exclusion of property from the appraisal
records;
(3) a grant in whole or in part of a partial exemption;
(4) a determination that land qualifies for appraisal
as provided by Subchapter C, D, E, or H, Chapter 23; or
(5) failure to identify the taxing unit as one in which
a particular property is taxable.
(b) If the state or other [a] taxing unit challenges a
determination that land qualifies for appraisal under Subchapter H,
Chapter 23, on the ground that the land is not located in an
aesthetic management zone, critical wildlife habitat zone, or
streamside management zone, the state or other taxing unit must
first seek a determination letter from the director of the Texas
Forest Service. The appraisal review board shall accept the letter
as conclusive proof of the type, size, and location of the zone.
SECTION 35. Subchapter A, Chapter 41, Tax Code, is amended
by adding Section 41.031 to read as follows:
Sec. 41.031. CHALLENGE BY COMPTROLLER. The comptroller is
entitled to challenge before the appraisal review board the
exclusion of property from the appraisal roll for state ad valorem
taxes.
SECTION 36. Section 41.06(a), Tax Code, is amended to read
as follows:
(a) The secretary of the appraisal review board shall
deliver to the comptroller and the presiding officer of the
governing body of each taxing unit entitled to appear at a challenge
hearing written notice of the date, time, and place fixed for the
hearing. The secretary shall deliver the notice not later than the
10th day before the date of the hearing.
SECTION 37. Section 41.07(d), Tax Code, is amended to read
as follows:
(d) The board shall deliver by certified mail a notice of
the issuance of the order and a copy of the order to the taxing unit.
If the order of the board excludes property from the appraisal roll
for state ad valorem taxes, the board shall also deliver a notice of
issuance and a copy of the order to the comptroller in the manner
prescribed by the comptroller.
SECTION 38. Section 41.47(d), Tax Code, is amended to read
as follows:
(d) The board shall deliver by certified mail a notice of
issuance of the order and a copy of the order to the property owner
and the chief appraiser. If the order of the board excludes
property from the appraisal roll for state ad valorem taxes, the
board shall also deliver a notice of issuance and a copy of the
order to the comptroller in the manner prescribed by the
comptroller.
SECTION 39. Subchapter A, Chapter 42, Tax Code, is amended
by adding Section 42.032 to read as follows:
Sec. 42.032. RIGHT OF APPEAL BY COMPTROLLER. (a) The
comptroller is entitled to appeal an order of the appraisal review
board excluding property from the appraisal roll for state ad
valorem taxes.
(b) The attorney general shall represent the comptroller in
an appeal under this section. The attorney general may delegate its
duties under this section to a county or district attorney or may
contract with a private attorney for the performance of those
duties.
SECTION 40. Sections 42.06(a) and (c), Tax Code, are
amended to read as follows:
(a) To exercise the party's right to appeal an order of an
appraisal review board, a party other than a property owner must
file written notice of appeal within 15 days after the date the
party receives the notice required by Section 41.47 or, in the case
of a taxing unit or the comptroller, by Section 41.07 that the order
appealed has been issued. To exercise the right to appeal an order
of the comptroller, a party other than a property owner must file
written notice of appeal within 15 days after the date the party
receives the comptroller's order. A property owner is not required
to file a notice of appeal under this section.
(c) If the chief appraiser, a taxing unit, [or] a county, or
the comptroller appeals[, the chief appraiser, if the appeal is of]
an order of the appraisal review board, the chief appraiser [or the
comptroller, if the appeal is of an order of the comptroller,] shall
deliver a copy of the notice to the property owner whose property is
involved in the appeal. If the appeal is of an order of the
comptroller, the comptroller shall deliver a copy of the notice to
the property owner. The chief appraiser or the comptroller shall
deliver the copy of the notice within 10 days after the date the
notice is filed.
SECTION 41. Sections 42.43(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) If the final determination of an appeal that decreases a
property owner's tax liability occurs after the property owner has
paid the owner's [his] taxes, the taxing unit and the comptroller,
if the property is subject to the state ad valorem tax, shall refund
to the property owner the difference between the amount of taxes
paid and amount of taxes for which the property owner is liable.
(b) For a refund made under this section because an
exemption under Section 11.20 that was denied by the chief
appraiser or appraisal review board is granted, the taxing unit or
the comptroller shall include with the refund interest on the
amount refunded calculated at an annual rate that is equal to the
auction average rate quoted on a bank discount basis for
three-month treasury bills issued by the United States government,
as published by the Federal Reserve Board, for the week in which the
taxes became delinquent, but not more than 10 percent, calculated
from the delinquency date for the taxes until the date the refund is
made. For any other refund made under this section, the taxing unit
or the comptroller shall include with the refund interest on the
amount refunded at an annual rate of eight percent, calculated from
the delinquency date for the taxes until the date the refund is
made.
(c) Notwithstanding Subsection (b), if a taxing unit or the
comptroller does not make a refund, including interest, required by
this section before the 60th day after the date the chief appraiser
certifies a correction to the appraisal roll under Section 42.41,
the taxing unit or the comptroller shall include with the refund
interest on the amount refunded at an annual rate of 12 percent,
calculated from the delinquency date for the taxes until the date
the refund is made.
SECTION 42. Sections 43.01 and 43.04, Tax Code, are amended
to read as follows:
Sec. 43.01. AUTHORITY TO BRING SUIT. The comptroller or a
[A] taxing unit may sue the appraisal district that appraises
property for the state or the unit to compel the appraisal district
to comply with the provisions of this title, rules of the
comptroller, or other applicable law.
Sec. 43.04. SUIT TO COMPEL COMPLIANCE WITH DEADLINES. The
comptroller or the governing body of a taxing unit may sue the chief
appraiser or members of the appraisal review board, as applicable,
for failure to comply with the deadlines imposed by Section
25.22(a), 26.01(a), or 41.12. If the court finds that the chief
appraiser or appraisal review board failed to comply for good cause
shown, the court shall enter an order fixing a reasonable deadline
for compliance. If the court finds that the chief appraiser or
appraisal review board failed to comply without good cause, the
court shall enter an order requiring the chief appraiser or
appraisal review board to comply with the deadline not later than
the 10th day after the date the judgment is signed. In a suit
brought under this section, the court may enter any other order the
court considers necessary to ensure compliance with the court's
deadline or the applicable statutory requirements. Failure to obey
an order of the court is punishable as contempt.
SECTION 43. Section 42.2511(a), Education Code, is amended
to read as follows:
(a) Notwithstanding any other provision of this chapter, a
school district is entitled to additional state aid to the extent
that state aid under this chapter based on the determination of the
school district's taxable value of property as provided under
Subchapter M, Chapter 403, Government Code, does not fully
compensate the district for ad valorem tax revenue lost due to:
(1) the increase in the homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, as proposed by
H.J.R. No. 4, 75th Legislature, Regular Session, 1997, or as
proposed by the joint resolution to amend that section adopted by
the 79th Legislature, Regular Session, 2005; and
(2) the additional limitation on tax increases under
Section 1-b(d), Article VIII, Texas Constitution, as proposed by
H.J.R. No. 4, 75th Legislature, Regular Session, 1997, or as
proposed by the joint resolution to amend that section adopted by
the 79th Legislature, Regular Session, 2005.
SECTION 44. Section 403.302(j), Government Code, is amended
to read as follows:
(j) For purposes of Section 42.2511, Education Code, the
comptroller shall certify to the commissioner of education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $5,000; [and]
(2) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
Regular Session, 1997; and
(3) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $40,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by the joint resolution to amend that
section adopted by the 79th Legislature, Regular Session, 2005.
SECTION 45. The changes in law made by this Act apply to
each tax year that begins on or after January 1, 2006. The changes
in law do not apply to a tax year that begins before January 1, 2006,
and the law as it existed before January 1, 2006, is continued in
effect for purposes of taxes imposed in that tax year.
SECTION 46. This Act takes effect January 1, 2006, but only
if the constitutional amendment proposed by the 79th Legislature,
Regular Session, 2005, imposing a state property tax for public
education, establishing a residence homestead exemption from the
state property tax, and increasing the amount of the school
district residence homestead property tax exemption is approved by
the voters. If that amendment is not approved by the voters, this
Act has no effect.