By: Madla, et al. S.B. No. 282
A BILL TO BE ENTITLED
AN ACT
relating to disclosure and use of sales price information for ad
valorem tax purposes.
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. REPORT OF SALES PRICE
Sec. 22.61. SALES PRICE DISCLOSURE REPORT. (a) Except as
provided by Subsection (b), not later than the 10th day after the
date the deed is recorded in the county real property records, the
purchaser or grantee of real property under a recorded deed
conveying an interest in the real property shall file a sales price
disclosure report with the chief appraiser of the appraisal
district established for the county in which the property is
located.
(b) This section does not apply to a sale or other transfer
of real property if:
(1) the sale or other transfer is made:
(A) pursuant to a court order;
(B) to or from a trustee in bankruptcy;
(C) pursuant to a power of sale under a deed of
trust or other encumbrance secured by the property;
(D) by a deed in lieu of foreclosure;
(E) by one co-owner to one or more other
co-owners;
(F) to a spouse or to a person or persons in the
first degree of lineal consanguinity of one or more of the sellers
or grantors;
(G) to or from a governmental entity;
(H) pursuant to the power of eminent domain; or
(I) to a utility company and the real property is
an easement, license, or right-of-way; or
(2) the real property is a severed mineral interest.
(c) A sales price disclosure report must be signed by the
purchaser or grantee of the real property described in the report.
Sec. 22.62. REPORT FORM. (a) A sales price disclosure
report filed under this subchapter must read as follows, with the
appropriate information included in the blanks:
SALES PRICE DISCLOSURE REPORT
Section 22.61, Tax Code, requires a purchaser or grantee
under a deed to prepare this report, sign it, and file it with the
chief appraiser of the appraisal district established for the
county in which the property is located not later than the 10th day
after the date the deed is recorded. This report is not required to
be filed if the sale or transfer is made: (1) under a court order;
(2) to or from a trustee in bankruptcy; (3) under a deed of trust or
other encumbrance secured by the property; (4) by a deed in lieu of
foreclosure; (5) between co-owners; (6) between spouses or between
family members in the first degree of lineal consanguinity; (7) to
or from a governmental entity; (8) pursuant to the power of eminent
domain; or (9) to a utility company and the property is an easement,
license, or right-of-way. In addition, this report is not required
to be filed if the property being sold or transferred is a severed
mineral interest. Knowingly making a false statement on this form
is grounds for prosecution of a Class A misdemeanor or a state jail
felony under Section 37.10, Penal Code. The chief appraiser may not
use the information in this form as the sole basis on which to
increase the market value of the property.
Seller's or grantor's name: ___________________
Purchaser's or grantee's name: ________________
Purchaser's or grantee's address: _____________
Property description (as stated in deed): _____
Sales price of or other consideration paid for the property:
________
The method used to finance the sales price or other
consideration was: ⌖ none (cash sale) ⌖ cash and third-party
financing ⌖ cash and seller financing ⌖ exchange of other
property ⌖ other, describe: _________________________________
Describe any unusual or extraordinary terms of the sale or
transfer that affected the amount of the sales price or other
consideration: _____________________________
Provide any additional information relevant to the sale or
transfer, including:
(1) whether the sale or transfer involved property
other than real property and the type of property, whether tangible
or intangible, involved in the sale or transfer;
(2) whether the sale or transfer involved property
located in more than one appraisal district and, if so, the portion
of the sales price or other consideration allocated to the property
located in the appraisal district with which the report is filed;
(3) in the case of a sale, whether the sale is the sale
of an entire business or business unit; and
(4) any other facts or circumstances that affected the
sales price or other consideration (optional):
_____________________________
To the best of my knowledge, this statement is true and
accurate.
Purchaser's or grantee's signature: _______________
Date: ____________
Return this form to: ______________________________.
(b) The appraisal district shall include at the end of the
form instructions for the filing of the form by mail, hand delivery,
or, if permitted by the chief appraiser, facsimile machine or other
electronic means.
(c) Each appraisal district shall prepare and make
available sales price disclosure report forms that conform to the
requirements of this section. Except for instructions for the
filing of the form, no additional information may be required to be
included in a sales price disclosure report form.
Sec. 22.63. FILING AND RECEIPT OF REPORT. (a) A purchaser
or grantee may file a sales price disclosure report with a chief
appraiser by mail, hand delivery, or, if permitted by the chief
appraiser, facsimile machine or other electronic means.
(b) On receipt of the completed sales price disclosure
report, the chief appraiser shall provide to the purchaser or
grantee a written acknowledgement that the report has been
received. If the acknowledgement of receipt is mailed, the chief
appraiser shall mail it to the purchaser or grantee at the address
provided in the report.
Sec. 22.64. PREPARATION OF REPORT; IMMUNITY FROM LIABILITY.
(a) A sales price disclosure report must be prepared by the
purchaser or grantee of the property described in the report or by a
person on behalf of the purchaser or grantee.
(b) A person who prepares a sales price disclosure report on
behalf of a purchaser or grantee of the property described in the
report is not liable to any person for preparing the report or for
any unintentional error or omission in the report.
Sec. 22.65. ACTION TO COMPEL COMPLIANCE. The chief
appraiser may bring an action for an injunction to compel a person
to comply with the requirements of this subchapter. If the court
finds that this subchapter applies and that the person has failed to
fully comply with its requirements, the court:
(1) shall order the person to comply; and
(2) may assess costs and reasonable attorney's fees
against the person.
Sec. 22.66. PUBLIC INFORMATION. A sales price disclosure
report filed with the chief appraiser under this subchapter is a
public record and must be made available on request for inspection
and copying during normal business hours.
SECTION 3. Section 23.013, Tax Code, is amended to read as
follows:
Sec. 23.013. MARKET DATA COMPARISON METHOD OF APPRAISAL.
(a) If the chief appraiser uses the market data comparison method
of appraisal to determine the market value of real property, the
chief appraiser shall use comparable sales data and shall adjust
the comparable sales to the subject property.
(b) The chief appraiser may use information contained in a
sales price disclosure report filed under Subchapter D, Chapter 22,
in determining the market value of real property but may not
increase the market value of the real property described in the
report solely on the basis of the information contained in the
report.
SECTION 4. (a) As soon as practicable after the effective
date of this Act, but not later than January 1, 2006, each appraisal
district shall prepare and make available sales price disclosure
report forms as provided by Section 22.62, Tax Code, as added by
this Act.
(b) This Act applies only to a sale of real property that
occurs on or after January 1, 2006.
SECTION 5. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2005.
(b) Sections 1, 2, and 3 of this Act take effect January 1,
2006.
COMMITTEE AMENDMENT NO. 1
Amend S.B. No. 282 in SECTION 2 of the bill, proposed
Subchapter D, Chapter 22, Tax Code (Senate engrossment, page 5,
lines 24-27), by striking proposed Section 22.66, Tax Code, and
substituting:
Sec. 22.66. CONFIDENTIAL INFORMATION. (a) A sales price
disclosure report filed with a chief appraiser under this
subchapter is confidential and not open to public inspection. The
report and the information it contains may not be disclosed to
another person other than an employee of the appraisal district who
appraises property, except as provided by Subsection (b).
(b) Information that is confidential under Subsection (a)
may be disclosed:
(1) in a judicial or administrative proceeding under a
lawful subpoena;
(2) to a purchaser, grantee, seller, or grantor named
in the report or in the deed to which the report applies or to a
representative of the purchaser, grantee, seller, or grantor under
a written authorization signed by the purchaser, grantee, seller,
or grantor;
(3) to the comptroller or to an assessor for a taxing
unit in which the property described in the report is located;
(4) in a judicial or administrative proceeding related
to real property taxation:
(A) to which the purchaser, grantee, seller, or
grantor is a party;
(B) to which an owner of the property described
in the report is a party; or
(C) by the appraisal district for the purpose of
establishing a value of the property or of providing evidence of
comparable sales to appraise another property;
(5) for statistical purposes if the information is
provided in a form that does not identify a specific property or
specific purchaser, grantee, seller, or grantor;
(6) if and to the extent that the information is
required to be included in a public document or record that the
appraisal office is required to prepare or maintain; or
(7) to a taxing unit or its legal representative that
is engaged in the collection of delinquent taxes on the property
described in the report.
(c) Information that is disclosed under this section does
not lose its confidential character.
(d) A person, other than the purchaser, grantee, seller, or
grantor, who obtains a sales price disclosure report or information
from the report commits an offense if the person:
(1) discloses the report or information to a person
who is not authorized under this section to receive the report or
information; or
(2) permits such a person to view, read, or copy the
report or information.
(e) An offense under Subsection (d) is a Class B
misdemeanor.
(f) It is a defense to prosecution under Subsection (d) that
the person who received information contained in the sales price
disclosure report obtained the information from:
(1) a purchaser, grantee, seller, or grantor of the
property described in the report; or
(2) a document or record other than the sales price
disclosure report.
Villarreal
COMMITTEE AMENDMENT NO. 2
Amend S.B. No. 282 as follows:
(1) In SECTION 2 of the bill, proposed Subchapter D, Chapter
22, Tax Code (Senate engrossment, page 1, between lines 10 and 11),
insert the following new section to proposed Subchapter D and
renumber subsequent sections of proposed Subchapter D accordingly:
Sec. 22.61. APPLICABILITY. (a) In this section,
"residential real property" means real property that is used
primarily for residential purposes and on which a structure used
for residential purposes is located, including a single-family
residence, a multifamily residence, or a mobile home. The term also
includes the residential portion, not to exceed 20 acres, of farm or
ranch property. The term does not include real property on which a
hotel, motel, or similar structure is located that is designed to
provide temporary lodging or accommodations.
(b) This subchapter applies only to residential real
property.
(2) In SECTION 2 of the bill, strike proposed Subsection
(b), Section 22.61, Tax Code (Senate engrossment, page 1, line 19
through page 2, line 12), and substitute:
(b) This section does not apply to a sale or other transfer
of real property if the sale or other transfer is made:
(1) pursuant to a court order;
(2) to or from a trustee in bankruptcy;
(3) pursuant to a power of sale under a deed of trust
or other encumbrance secured by the property;
(4) by a deed in lieu of foreclosure;
(5) by one co-owner to one or more other co-owners;
(6) to a spouse or to a person or persons in the first
degree of lineal consanguinity of one or more of the sellers or
grantors;
(7) to or from a governmental entity; or
(8) pursuant to the power of eminent domain.
(3) In SECTION 2 of the bill, in proposed Subsection (a),
Section 22.62, Tax Code (Senate engrossment, page 2, line 19,
strike "22.61" and substitute "22.62".
(4) In SECTION 2 of the bill, proposed Subsection (a),
Section 22.62, Tax Code (Senate engrossment, page 3, line 2),
between "entity;" and "(8)", insert "or".
(5) In SECTION 2 of the bill, proposed Subsection (a),
Section 22.62, Tax Code (Senate engrossment, page 3, lines 3-6,
strike "; or (9) to a utility company and the property is an
easement, license, or right-of-way. In addition, this report is
not required if the property being sold is a severed mineral
interest".
(6) In SECTION 2 of the bill, proposed Subsection (a),
Section 22.62, Tax Code (Senate engrossment, page 4, at the end of
line 5) add "and".
(7) In SECTION 2 of the bill, proposed Subsection (a),
Section 22.62, Tax Code (Senate engrossment, page 4, lines 6 and 7),
strike proposed Subdivision (3).
(8) In SECTION 2 of the bill, proposed Subsection (a),
Section 22.62, Tax Code (Senate engrossment, page 4, line 8, strike
"(4)", and substitute "(3)".
(9) In SECTION 3 of the bill, proposed Subsection (b),
Section 23.013, Tax Code (Senate engrossment, page 6, line 10),
between "real" and "property", insert "residential".
Villarreal