79R1959 MFC-F
By: Rose H.B. No. 2818
A BILL TO BE ENTITLED
AN ACT
relating to the appeal of certain ad valorem tax determinations
through binding arbitration.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 1, Tax Code, is amended by
adding Chapter 41A to read as follows:
CHAPTER 41A. APPEAL THROUGH BINDING ARBITRATION
Sec. 41A.01. RIGHT OF APPEAL BY PROPERTY OWNER. As an
alternative to filing an appeal under Section 42.01, a property
owner is entitled to appeal through binding arbitration under this
chapter an appraisal review board order determining a protest
concerning the appraised or market value of real property if the
appraised or market value, as applicable, of the property as
determined by the order is $1 million or less.
Sec. 41A.02. NOTICE OF RIGHT TO ARBITRATION. An appraisal
review board that delivers notice of issuance of an order described
by Section 41A.01 and a copy of the order to a property owner as
required by Section 41.47 shall include with the notice and copy:
(1) a notice of the property owner's rights under this
chapter; and
(2) a copy of the form prescribed under Section
41A.03(1).
Sec. 41A.03. REQUEST FOR ARBITRATION. To appeal an
appraisal review board order under this chapter, a property owner
must file with the appraisal district not later than the 15th day
after the date the property owner receives notice of the order:
(1) a completed request for binding arbitration under
this chapter in the form prescribed by Section 41A.04; and
(2) an arbitration deposit in the amount of $500, made
payable to the comptroller.
Sec. 41A.04. CONTENTS OF REQUEST FORM. (a) The chief
appraiser shall prescribe the form of a request for binding
arbitration under this chapter. The form must require the property
owner to provide only:
(1) a brief statement that explains the basis for the
property owner's appeal of the appraisal review board order; and
(2) any other information reasonably necessary for the
appraisal district to request appointment of an arbitrator.
(b) The comptroller by rule shall prescribe a model form for
purposes of this section.
Sec. 41A.05. PROCESSING OF REGISTRATION REQUEST. (a) Not
later than the 10th day after the date an appraisal district
receives from a property owner a completed request for binding
arbitration under this chapter and an arbitration deposit as
required by Section 41A.03, the appraisal district shall:
(1) certify the request;
(2) submit the request and deposit to the comptroller;
and
(3) request the comptroller to appoint a qualified
arbitrator to conduct the arbitration.
(b) The comptroller may retain an amount equal to 10 percent
of the deposit to cover the comptroller's administrative costs.
Sec. 41A.06. REGISTRY AND QUALIFICATIONS OF ARBITRATORS.
(a) The comptroller shall maintain a registry listing the
qualified persons who have agreed to serve as arbitrators under
this chapter.
(b) To qualify to serve as an arbitrator under this chapter,
a person must:
(1) have completed at least 30 hours of training in
arbitration and alternative dispute resolution procedures from a
university, college, or legal or real estate trade association;
(2) be licensed as a real estate broker or salesperson
under Chapter 1101, Occupations Code, or be licensed or certified
as a real estate appraiser under Chapter 1103, Occupations Code;
and
(3) agree to conduct an arbitration for a fee that is
not more than 90 percent of the amount of the arbitration deposit
required by Section 41A.03.
Sec. 41A.07. APPOINTMENT OF ARBITRATOR. (a) On receipt of
the request and deposit under Section 41A.05, the comptroller shall
send the property owner and the appraisal district a copy of the
comptroller's registry of qualified arbitrators and request that
the parties select an arbitrator from the registry. The parties
shall attempt to select an arbitrator from the registry.
(b) Not later than the 10th day after the date the parties
receive the registry, the appraisal district shall notify the
comptroller that:
(1) the parties have selected an arbitrator and
request that the comptroller appoint the selected arbitrator; or
(2) the parties were unable to select an arbitrator
and request the comptroller to appoint an arbitrator.
(c) On receipt of notice from the appraisal district under
Subsection (b), the comptroller shall:
(1) appoint:
(A) the arbitrator selected under Subsection
(b)(1), if applicable; or
(B) any arbitrator included in the comptroller's
registry, if Subsection (b)(2) applies; and
(2) send notice to the arbitrator appointed,
requesting that the arbitrator conduct the arbitration.
(d) If the arbitrator appointed is unable or unwilling to
conduct the arbitration for any reason, the arbitrator shall
promptly notify the comptroller that the arbitrator does not accept
the appointment and state the reason. The comptroller shall
appoint a substitute arbitrator promptly after receipt of the
notice.
Sec. 41A.08. NOTICE AND HEARING; REPRESENTATION OF PARTIES.
(a) On acceptance of an appointment to conduct an arbitration under
this chapter, the arbitrator shall set the date, time, and place of
a hearing on the arbitration. The arbitrator shall give notice of
and conduct the hearing in the manner provided by Subchapter C,
Chapter 171, Civil Practice and Remedies Code.
(b) The parties to an arbitration proceeding under this
chapter may be represented by an attorney or by a property tax
consultant, real estate appraiser, or real estate broker acting
under power of attorney. Each party is responsible for the fees of
its own representative.
Sec. 41A.09. AWARD; PAYMENT OF ARBITRATOR'S FEE. (a) Not
later than the 20th day after the date the hearing under Section
41A.08 is concluded, the arbitrator shall make an arbitration award
and deliver a copy of the award to the property owner, appraisal
district, and comptroller.
(b) An award under this section:
(1) shall include a determination of the appraised or
market value, as applicable, of the property that is the subject of
the appeal;
(2) may include any remedy or relief a court may order
under Chapter 42;
(3) shall specify the arbitrator's fee, which may not
exceed the amount provided by Section 41A.06(b)(3);
(4) is final and may not be appealed except as
permitted under Section 171.088, Civil Practice and Remedies Code,
for an award subject to that section; and
(5) may be enforced in the manner provided by
Subchapter D, Chapter 171, Civil Practice and Remedies Code.
(c) If the arbitrator determines that the appraised or
market value, as applicable, of the property that is the subject of
the appeal is less than 99 percent of the appraised or market value,
as applicable, of the property as determined by the appraisal
review board:
(1) the comptroller, on receipt of a copy of the award,
shall refund the property owner's arbitration deposit, less the
amount retained by the comptroller under Section 41A.05(b); and
(2) the appraisal district, on receipt of a copy of the
award, shall pay the arbitrator's fee.
(d) If the arbitrator determines that the appraised or
market value, as applicable, of the property that is the subject of
the appeal is at least 99 percent of the appraised or market value,
as applicable, of the property as determined by the appraisal
review board, the comptroller, on receipt of a copy of the award,
shall:
(1) pay the arbitrator's fee out of the property
owner's arbitration deposit; and
(2) refund to the property owner the property owner's
arbitration deposit, less the arbitrator's fee and the amount
retained by the comptroller under Section 41A.05(b).
Sec. 41A.10. POSTAPPEAL ADMINISTRATIVE PROCEDURES. An
arbitration award under this chapter is considered to be a final
determination of an appeal for purposes of Subchapter C, Chapter
42.
Sec. 41A.11. RULES. The comptroller may adopt rules
necessary to implement and administer this chapter.
SECTION 2. As soon as practicable after the effective date
of this Act, but not later than January 1, 2006:
(1) each appraisal district shall prescribe the form
of an arbitration request as provided by Section 41A.04, Tax Code,
as added by this Act; and
(2) the comptroller shall:
(A) prescribe the model form for an arbitration
request as provided by Section 41A.04, Tax Code, as added by this
Act; and
(B) establish a registry of qualified
arbitrators as provided by Section 41A.06(a), Tax Code, as added by
this Act.
SECTION 3. This Act takes effect September 1, 2005.