79R3155 MFC-D
By: Wentworth S.B. No. 243
A BILL TO BE ENTITLED
AN ACT
relating to requiring disclosure of certain information about the
conveyance of real property, including the purchase price of the
property, for use in appraising property for taxation; providing
penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter C, Chapter 22, Tax
Code, is amended to read as follows:
SUBCHAPTER C. [OTHER] REPORTS OF POLITICAL SUBDIVISION ACTIONS
SECTION 2. Chapter 22, Tax Code, is amended by adding
Subchapter D to read as follows:
SUBCHAPTER D. REAL PROPERTY CONVEYANCE REPORT
Sec. 22.61. REAL PROPERTY CONVEYANCE REPORT REQUIRED. (a)
Not later than the 10th business day after the date of closing on
the conveyance of real property, the transferee or a person acting
on behalf of a transferee shall file a real property conveyance
report as provided by this subchapter disclosing information
regarding the conveyance of the property.
(b) Subsection (a) does not apply to a conveyance:
(1) that is ordered by a court;
(2) made pursuant to a judicial or nonjudicial
foreclosure;
(3) by a trustee in bankruptcy;
(4) by a mortgagor or successor in interest to a
mortgagee;
(5) by a trustor or successor in interest to a
beneficiary of a deed of trust;
(6) by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(7) between owners of joint or undivided interests in
the property;
(8) between spouses or former spouses, including as a
result of a decree of dissolution of marriage, legal separation, or
property settlement agreement; or
(9) to or from a governmental entity.
Sec. 22.62. CIVIL PENALTY. (a) A transferee of a
single-family residential property who fails to file a report as
required by this subchapter is liable to the state for a civil
penalty in the amount of $1,000 for each violation.
(b) A transferee of any property other than a single-family
residential property who fails to file a report as required by this
subchapter is liable to the state for a civil penalty for each
violation in an amount equal to five percent of the appraised value
of the property for the tax year of the report.
(c) The attorney general or the county or district attorney
for the county in which the property is located may bring suit to
recover a penalty under this section.
(d) If there are two or more transferees, each transferee is
responsible for filing the report until at least one transferee
files a report, and each transferee is separately liable for a civil
penalty if a report for the conveyance is not filed as required by
this subchapter.
Sec. 22.63. PLACE OF FILING. A real property conveyance
report required by this subchapter must be filed with the chief
appraiser of the appraisal district established for the county in
which the property covered by the report is located.
Sec. 22.64. SIGNATURE REQUIRED. A real property conveyance
report must be signed by the transferee who files the report.
Sec. 22.65. REPORT FORMS. (a) The comptroller shall
prescribe the form and content of a real property conveyance report
filed under this subchapter. The comptroller may prescribe
different report forms for different kinds of property and shall
ensure that each form requires the person filing the report to
provide:
(1) the transferor's name and address;
(2) the transferee's name and address;
(3) information necessary to identify the property and
to determine its location;
(4) the address to which tax notices concerning the
property should be mailed;
(5) the value of any personal property included in the
conveyance;
(6) the purchase price of the property;
(7) the date the transaction was closed; and
(8) the name and address of the person preparing the
report.
(b) A form may not require information not relevant to the
appraisal of the property for tax purposes or to the assessment or
collection of property taxes.
(c) A person who files a report under this subchapter must:
(1) use the appropriate form prescribed by the
comptroller; and
(2) include all information required by the form.
Sec. 22.66. PUBLICIZING REQUIREMENTS. (a) The
comptroller shall publicize, in a manner reasonably designed to
come to the attention of title insurance companies, attorneys, and
property owners, the requirements of this subchapter and of the
availability of real property conveyance report forms.
(b) The Texas Real Estate Commission shall assist the
comptroller in publicizing the information required by Subsection
(a) to title insurance companies and attorneys.
(c) A chief appraiser shall assist the comptroller in
publicizing the information required by Subsection (a) to property
owners in the county for which the appraisal district is
established.
Sec. 22.67. PROVISION OF INFORMATION TO COMPTROLLER. An
appraisal district shall provide information from real property
conveyance reports to the comptroller in the manner and at the time
required by the comptroller.
SECTION 3. (a) As soon as practicable after the effective
date of this Act, but not later than January 1, 2006, the
comptroller shall:
(1) prescribe or approve real property conveyance
report forms as provided by Section 22.65, Tax Code, as added by
this Act; and
(2) begin to publicize the requirements of Subchapter
D, Chapter 22, Tax Code, as required by Section 22.66, Tax Code, as
added by this Act.
(b) This Act applies only to a conveyance of real property
that occurs on or after January 1, 2006.
SECTION 4. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2005.
(b) Sections 1 and 2 of this Act take effect January 1, 2006.