79R7453 MFC-F
By: Hill H.B. No. 3046
A BILL TO BE ENTITLED
AN ACT
relating to the administration of ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.08, Tax Code, is amended to read as
follows:
Sec. 1.08. TIMELINESS OF ACTION BY MAIL. When a property
owner is required by this title to make a payment or to file or
deliver a report, application, statement, or other document or
paper by [before] a specified due date, his action is timely if:
(1) it is sent by regular first-class mail, properly
addressed with postage prepaid; and
(2) it bears a post office cancellation mark of a date
earlier than or on the specified due date and within the specified
period or the property owner furnishes satisfactory proof that it
was deposited in the mail on or before the specified due date and
within the specified period.
SECTION 2. Section 1.085(b), Tax Code, as amended by
Chapters 984 and 1173, Acts of the 78th Legislature, Regular
Session, 2003, is reenacted to read as follows:
(b) An agreement between a chief appraiser and a property
owner must:
(1) be in writing;
(2) be signed by the chief appraiser and the property
owner; and
(3) specify:
(A) the medium of communication;
(B) the type of communication covered;
(C) the means for protecting the security of a
communication;
(D) the means for confirming delivery of a
communication; and
(E) the electronic mail address of the property
owner or person designated to represent the property owner under
Section 1.111, as applicable.
SECTION 3. Section 6.05, Tax Code, is amended by adding
Subsection (i) to read as follows:
(i) To ensure adherence with generally accepted appraisal
practices, the board of directors of an appraisal district shall
develop biennially a written plan for the periodic appraisal of all
property within the boundaries of the district according to the
requirements of Section 25.18 and shall hold a public hearing to
consider the proposed plan. Not later than the 10th day before the
date of the hearing, the secretary of the board shall deliver to the
presiding officer of the governing body of each taxing unit
participating in the district a written notice of the date, time,
and place for the hearing. Not later than September 15 of each
even-numbered year, the board shall complete its hearings, make any
amendments, and by resolution finally approve the plan. Copies of
the approved plan shall be distributed to the presiding officer of
the governing body of each taxing unit participating in the
district and to the comptroller within 60 days of the approval date.
SECTION 4. Section 11.161, Tax Code, is amended to read as
follows:
Sec. 11.161. IMPLEMENTS OF HUSBANDRY. Machinery and
equipment items [Implements of husbandry] that are used in the
production of farm or ranch products or of timber, regardless of
their primary design, are considered to be implements of husbandry
and are exempt from ad valorem taxation.
SECTION 5. Section 11.26(i), Tax Code, is amended to read as
follows:
(i) If an individual who qualifies for the exemption
provided by Section 11.13(c) for an individual 65 years of age or
older dies, the surviving spouse of the individual is entitled to
the limitation applicable to the residence homestead of the
individual if:
(1) the surviving spouse is 55 years of age or older in
the year in which [when] the individual dies; and
(2) the residence homestead of the individual:
(A) is the residence homestead of the surviving
spouse on the date that the individual dies; and
(B) remains the residence homestead of the
surviving spouse.
SECTION 6. Section 11.261(i), Tax Code, is amended to read
as follows:
(i) If an individual who qualifies for a limitation on
county, municipal, or junior college district tax increases under
this section dies, the surviving spouse of the individual is
entitled to the limitation on taxes imposed by the county,
municipality, or junior college district on the residence homestead
of the individual if:
(1) the surviving spouse is disabled or is 55 years of
age or older in the year in which [when] the individual dies; and
(2) the residence homestead of the individual:
(A) is the residence homestead of the surviving
spouse on the date that the individual dies; and
(B) remains the residence homestead of the
surviving spouse.
SECTION 7. Sections 25.18(a) and (b), Tax Code, are amended
to read as follows:
(a) Each appraisal office shall implement the [a] plan for
periodic reappraisal of property approved by the board of directors
under Section 6.05(i) [to update appraised values].
(b) The plan shall provide for the following reappraisal
activities for [of] all real and personal property in the district
at least once every three years:
(1) identifying properties to be appraised through
physical inspection or by other reliable means of identification,
including deeds or other legal documentation, aerial photographs,
land-based photographs, surveys, maps, and property sketches;
(2) identifying and updating relevant characteristics
of each property in the appraisal records;
(3) defining market areas in the district;
(4) identifying property characteristics that affect
property value in each market area, including:
(A) the location and market area of property;
(B) physical attributes of property, such as
size, age, and condition;
(C) legal and economic attributes; and
(D) easements, covenants, leases, reservations,
contracts, declarations, special assessments, ordinances, or legal
restrictions;
(5) developing an appraisal model that reflects the
relationship among the property characteristics affecting values
in each market area and determines the contribution of individual
property characteristics;
(6) applying the conclusions reflected in the model to
the characteristics of the properties being appraised; and
(7) reviewing the appraisal results to determine
value.
SECTION 8. Section 25.19(b), Tax Code, as amended by
Chapters 1358 and 1517, Acts of the 76th Legislature, Regular
Session, 1999, is reenacted 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 in which the property is
taxable;
(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;
(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 the preceding year;
(6) in italic typeface, the following statement: "The
Texas Legislature does not set the amount of your local taxes. Your
property tax burden is decided by your locally elected officials,
and all inquiries concerning your 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 taxing unit decides whether or not taxes on the property will
increase and the appraisal district only determines the value of
the property.
SECTION 9. Section 312.204(a), Tax Code, as amended by
Chapters 560, 640, and 1258, Acts of the 77th Legislature, Regular
Session, 2001, is reenacted to read as follows:
(a) The governing body of a municipality eligible to enter
into tax abatement agreements under Section 312.002 may agree in
writing with the owner of taxable real property that is located in a
reinvestment zone, but that is not in an improvement project
financed by tax increment bonds, to exempt from taxation a portion
of the value of the real property or of tangible personal property
located on the real property, or both, for a period not to exceed 10
years, on the condition that the owner of the property make specific
improvements or repairs to the property. The governing body of an
eligible municipality may agree in writing with the owner of a
leasehold interest in tax-exempt real property that is located in a
reinvestment zone, but that is not in an improvement project
financed by tax increment bonds, to exempt a portion of the value of
property subject to ad valorem taxation, including the leasehold
interest, improvements, or tangible personal property located on
the real property, for a period not to exceed 10 years, on the
condition that the owner of the leasehold interest make specific
improvements or repairs to the real property. A tax abatement
agreement under this section is subject to the rights of holders of
outstanding bonds of the municipality. An agreement exempting
taxable real property or leasehold interests or improvements on
tax-exempt real property may provide for the exemption of such
taxable interests in each year covered by the agreement only to the
extent its value for that year exceeds its value for the year in
which the agreement is executed. An agreement exempting tangible
personal property located on taxable or tax-exempt real property
may provide for the exemption of tangible personal property located
on the real property in each year covered by the agreement other
than tangible personal property that was located on the real
property at any time before the period covered by the agreement with
the municipality, including inventory and supplies. In a
municipality that has a comprehensive zoning ordinance, an
improvement, repair, development, or redevelopment taking place
under an agreement under this section must conform to the
comprehensive zoning ordinance.
SECTION 10. Sections 1.085(e) and (f), as added by Chapter
984, Acts of the 78th Legislature, Regular Session, 2003, are
repealed.
SECTION 11. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2005.
(b) Section 4 of this Act takes effect January 1, 2006.