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A BILL TO BE ENTITLED
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AN ACT
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relating to disclosure and use of sales price information for ad |
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valorem tax purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter C, Chapter 22, |
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Tax |
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Code, is amended to read as follows: |
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SUBCHAPTER C. [OTHER] REPORTS OF POLITICAL SUBDIVISION ACTIONS |
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SECTION 2. Chapter 22, Tax Code, is amended by adding |
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Subchapter D to read as follows: |
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SUBCHAPTER D. REPORT OF SALES PRICE |
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Sec. 22.61. SALES PRICE DISCLOSURE REPORT. (a) Except as |
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provided by Subsection (b), not later than the 10th day after the |
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date the deed is recorded in the county real property records, the |
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purchaser or grantee of real property under a recorded deed |
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conveying an interest in the real property shall file a sales price |
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disclosure report with the chief appraiser of the appraisal |
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district established for the county in which the property is |
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located. |
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(b) This section does not apply to a sale or other transfer |
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of real property if: |
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(1) the sale or other transfer is made: |
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(A) pursuant to a court order; |
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(B) to or from a trustee in bankruptcy; |
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(C) pursuant to a power of sale under a deed of |
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trust or other encumbrance secured by the property; |
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(D) by a deed in lieu of foreclosure; |
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(E) by one co-owner to one or more other |
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co-owners; |
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(F) to a spouse or to a person or persons in the |
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first degree of lineal consanguinity of one or more of the sellers |
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or grantors; |
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(G) to or from a governmental entity; |
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(H) pursuant to the power of eminent domain; or |
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(I) to a utility company and the real property is |
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an easement, license, or right-of-way; or |
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(2) the real property is a severed mineral interest. |
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(c) A sales price disclosure report must be signed by the |
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purchaser or grantee of the real property described in the report. |
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Sec. 22.62. REPORT FORM. (a) A sales price disclosure |
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report filed under this subchapter must read as follows, with the |
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appropriate information included in the blanks: |
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SALES PRICE DISCLOSURE REPORT |
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Section 22.61, Tax Code, requires a purchaser or grantee |
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under a deed to prepare this report, sign it, and file it with the |
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chief appraiser of the appraisal district established for the |
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county in which the property is located not later than the 10th day |
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after the date the deed is recorded. This report is not required to |
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be filed if the sale or transfer is made: (1) under a court order; |
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(2) to or from a trustee in bankruptcy; (3) under a deed of trust or |
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other encumbrance secured by the property; (4) by a deed in lieu of |
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foreclosure; (5) between co-owners; (6) between spouses or between |
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family members in the first degree of lineal consanguinity; (7) to |
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or from a governmental entity; (8) pursuant to the power of eminent |
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domain; or (9) to a utility company and the property is an easement, |
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license, or right-of-way. In addition, this report is not required |
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to be filed if the property being sold or transferred is a severed |
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mineral interest. Knowingly making a false statement on this form |
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is grounds for prosecution of a Class A misdemeanor or a state jail |
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felony under Section 37.10, Penal Code. The chief appraiser may not |
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use the information in this form as the sole basis on which to |
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increase the market value of the property. |
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Seller's or grantor's name: ___________________ |
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Purchaser's or grantee's name: ________________ |
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Purchaser's or grantee's address: _____________ |
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Property description (as stated in deed): _____ |
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Sales price of or other consideration paid for the property: |
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________ |
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The method used to finance the sales price or other |
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consideration was: none (cash sale) cash and third-party |
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financing cash and seller financing exchange of other |
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property other, describe: _________________________________ |
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Describe any unusual or extraordinary terms of the sale or |
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transfer that affected the amount of the sales price or other |
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consideration: _____________________________ |
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Provide any additional information relevant to the sale or |
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transfer, including: |
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(1) whether the sale or transfer involved property |
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other than real property and the type of property, whether tangible |
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or intangible, involved in the sale or transfer; |
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(2) whether the sale or transfer involved property |
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located in more than one county and, if so, the portion of the sales |
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price or other consideration allocated to the portion of the |
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property located in each county; |
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(3) in the case of a sale, whether the sale is the sale |
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of an entire business or business unit; and |
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(4) any other facts or circumstances that affected the |
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sales price or other consideration (optional): |
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_____________________________ |
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To the best of my knowledge, this statement is true and |
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accurate. |
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Purchaser's or grantee's signature: _______________ |
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Date: ____________ |
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Return this form to: ______________________________. |
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(b) The appraisal district shall include at the end of the |
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form instructions for the filing of the form by mail, hand delivery, |
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or, if permitted by the chief appraiser, facsimile machine or other |
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electronic means. |
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(c) Each appraisal district shall prepare and make |
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available sales price disclosure report forms that conform to the |
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requirements of this section. Except for instructions for the |
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filing of the form, no additional information may be required to be |
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included in a sales price disclosure report form. |
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Sec. 22.63. FILING AND RECEIPT OF REPORT. (a) A purchaser |
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or grantee may file a sales price disclosure report with a chief |
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appraiser by mail, hand delivery, or, if permitted by the chief |
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appraiser, facsimile machine or other electronic means. |
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(b) On receipt of the completed sales price disclosure |
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report, the chief appraiser shall provide to the purchaser or |
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grantee a written acknowledgement that the report has been |
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received. If the acknowledgement of receipt is mailed, the chief |
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appraiser shall mail it to the purchaser or grantee at the address |
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provided in the report. |
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Sec. 22.64. PREPARATION OF REPORT; IMMUNITY FROM LIABILITY. |
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(a) A sales price disclosure report must be prepared by the |
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purchaser or grantee of the property described in the report or by |
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another person on behalf of the purchaser or grantee. |
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(b) A person who prepares a sales price disclosure report on |
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behalf of a purchaser or grantee of the property described in the |
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report is not liable to any person for preparing the report or for |
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any unintentional error or omission in the report. |
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Sec. 22.65. ACTION TO COMPEL COMPLIANCE. The chief |
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appraiser may bring an action for an injunction to compel a person |
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to comply with the requirements of this subchapter. If the court |
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finds that this subchapter applies and that the person has failed to |
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fully comply with its requirements, the court: |
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(1) shall order the person to comply; and |
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(2) may assess costs and reasonable attorney's fees |
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against the person. |
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Sec. 22.66. PUBLIC INFORMATION. A sales price disclosure |
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report filed with the chief appraiser under this subchapter is a |
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public record and must be made available on request for inspection |
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and copying during normal business hours. |
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SECTION 3. Section 23.013, Tax Code, is amended to read as |
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follows: |
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Sec. 23.013. MARKET DATA COMPARISON METHOD OF APPRAISAL. |
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(a) If the chief appraiser uses the market data comparison method |
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of appraisal to determine the market value of real property, the |
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chief appraiser shall use comparable sales data and shall adjust |
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the comparable sales to the subject property. |
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(b) The chief appraiser may use information contained in a |
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sales price disclosure report filed under Subchapter D, Chapter 22, |
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in determining the market value of real property but may not |
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increase the market value of the real property described in the |
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report solely on the basis of the information contained in the |
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report. |
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SECTION 4. (a) As soon as practicable after the effective |
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date of this Act, but not later than January 1, 2008, each appraisal |
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district shall prepare and make available sales price disclosure |
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report forms as provided by Section 22.62, Tax Code, as added by |
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this Act. |
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(b) This Act applies only to a sale or other transfer of real |
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property that occurs on or after January 1, 2008. |
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SECTION 5. (a) Except as provided by Subsection (b) of this |
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section, this Act takes effect September 1, 2007. |
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(b) Sections 1-3 of this Act take effect January 1, 2008. |