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A BILL TO BE ENTITLED
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AN ACT
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relating to the determination through binding arbitration of |
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certain ad valorem tax protests brought by property owners. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 41, Tax Code, is amended by adding |
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Subchapter E to read as follows: |
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SUBCHAPTER E. PROTEST THROUGH BINDING ARBITRATION |
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Sec. 41.81. RIGHT TO ARBITRATION. As an alternative to |
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having a protest brought under Section 41.41 heard by the appraisal |
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review board, a property owner is entitled to have a protest |
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concerning the appraised or market value of property determined |
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through binding arbitration under this subchapter if the appraised |
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or market value, as applicable, of the property as determined by the |
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appraisal district is at least five percent greater than the |
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appraised or market value, as applicable, of the property for the |
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preceding tax year. |
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Sec. 41.82. NOTICE OF RIGHT TO ARBITRATION. An appraisal |
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district that delivers a notice of appraised value under Section |
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25.19 shall include with the notice: |
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(1) a notice of the property owner's rights under this |
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subchapter; |
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(2) a notice of the right to pursue a protest and |
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appeal as authorized by Subchapter C and Chapters 41A and 42; and |
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(3) a copy of the form required by Section 41.83(a). |
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Sec. 41.83. REQUEST FOR ARBITRATION. (a) To request that a |
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protest be determined by an arbitrator under this subchapter, a |
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property owner must file with the appraisal district a completed |
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request for binding arbitration under this subchapter that complies |
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with Section 41.84 not later than the deadline for filing a protest |
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established by Section 41.44. |
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(b) After filing, a request for arbitration is a valid and |
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enforceable arbitration agreement for purposes of Chapter 171, |
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Civil Practice and Remedies Code. |
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Sec. 41.84. CONTENTS OF REQUEST FORM. (a) The chief |
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appraiser shall prescribe the form of a request for binding |
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arbitration under this subchapter. The form must require the |
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property owner to provide only: |
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(1) a brief statement that explains the basis for the |
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property owner's protest of the action of the appraisal district; |
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(2) a statement containing the appraised or market |
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value, as applicable, of the property: |
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(A) as determined by the appraisal district and |
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modified after any protest or appeal for the preceding tax year; and |
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(B) as determined by the appraisal district for |
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the current tax year; |
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(3) a statement of the owner's opinion of the appraised |
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or market value of the property for the current tax year; and |
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(4) any other information reasonably necessary for the |
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appraisal district to request appointment of an arbitrator. |
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(b) The comptroller by rule shall prescribe a model form for |
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purposes of this section. |
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Sec. 41.85. PROCESSING OF ARBITRATION REQUEST. Not later |
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than the 10th day after the date an appraisal district receives from |
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a property owner a completed request for binding arbitration under |
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this subchapter, the appraisal district shall: |
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(1) endorse the request; |
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(2) submit the request to the comptroller accompanied |
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by an arbitration deposit in the amount of $500 from the appraisal |
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district, made payable to the comptroller; and |
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(3) request that the comptroller appoint a qualified |
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arbitrator to conduct the arbitration. |
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Sec. 41.86. REGISTRY AND QUALIFICATIONS OF ARBITRATORS. |
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(a) The comptroller shall maintain a registry listing the |
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qualified persons who have agreed to serve as arbitrators under |
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this subchapter. |
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(b) To qualify to serve as an arbitrator under this |
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subchapter, a person must: |
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(1) have completed at least 30 hours of training in |
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arbitration and alternative dispute resolution procedures from a |
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university, college, or legal or real estate trade association; |
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(2) be licensed as a real estate broker or salesperson |
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under Chapter 1101, Occupations Code, or be licensed or certified |
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as a real estate appraiser under Chapter 1103, Occupations Code; |
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and |
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(3) agree to conduct an arbitration for a fee that is |
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not more than $500. |
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Sec. 41.87. APPOINTMENT OF ARBITRATOR. (a) On receipt of |
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the request and deposit under Section 41.85, the comptroller shall |
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send the property owner and the appraisal district a copy of the |
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comptroller's registry of qualified arbitrators and request that |
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the parties jointly select an arbitrator from the registry. The |
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comptroller may send a paper copy of the registry to the parties by |
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regular mail or may send the parties written notice of the Internet |
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address of a website at which the registry is maintained and may be |
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accessed. The parties shall attempt to select an arbitrator from |
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the registry. |
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(b) Not later than the 20th day after the date the parties |
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receive the registry, the appraisal district shall notify the |
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comptroller that: |
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(1) the parties have selected an arbitrator, if the |
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parties have done so, and request that the comptroller appoint the |
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selected arbitrator; or |
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(2) the parties were unable to agree on the selection |
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of an arbitrator and request that the comptroller appoint an |
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arbitrator. |
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(c) On receipt of notice from the appraisal district under |
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Subsection (b), the comptroller shall: |
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(1) appoint: |
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(A) the arbitrator selected under Subsection |
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(b)(1), if applicable; or |
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(B) any arbitrator included in the comptroller's |
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registry, if Subsection (b)(2) applies; and |
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(2) send notice to the arbitrator appointed, |
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requesting that the arbitrator conduct the arbitration. |
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(d) If the arbitrator appointed is unable or unwilling to |
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conduct the arbitration for any reason, the arbitrator shall |
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promptly notify the comptroller that the arbitrator does not accept |
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the appointment and state the reason. The comptroller shall |
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appoint a substitute arbitrator promptly after receipt of the |
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notice. |
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Sec. 41.88. NOTICE AND HEARING; REPRESENTATION OF PARTIES. |
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(a) On acceptance of an appointment to conduct an arbitration under |
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this subchapter, the arbitrator shall set the date, time, and place |
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of a hearing on the arbitration. The arbitrator shall give notice |
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of and conduct the hearing in the manner provided by Subchapter C, |
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Chapter 171, Civil Practice and Remedies Code. |
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(b) The arbitrator: |
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(1) shall continue the hearing if both parties agree |
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to the continuance; and |
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(2) may continue a hearing for reasonable cause. |
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(c) In an arbitration hearing, a property owner may |
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represent himself or herself or may be represented by: |
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(1) an attorney licensed in this state; |
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(2) a person licensed as a real estate broker or |
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salesperson under Chapter 1101, Occupations Code, or licensed and |
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certified as a real estate appraiser under Chapter 1103, |
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Occupations Code; or |
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(3) a property tax consultant registered under Chapter |
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1103, Occupations Code. |
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(d) In an arbitration hearing, an appraisal district may be |
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represented by: |
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(1) a person authorized to represent a property owner |
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under Subsection (c); or |
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(2) an employee of the appraisal district. |
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(e) Each party is responsible for the fees of its own |
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representative. |
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Sec. 41.89. AWARD; PAYMENT OF ARBITRATOR'S FEE. (a) Not |
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later than the 20th day after the date the hearing under Section |
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41.88 is concluded, the arbitrator shall make an arbitration award |
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and deliver a copy of the award to the property owner, appraisal |
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district, and comptroller. |
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(b) An award under this section: |
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(1) may include any remedy or relief that an appraisal |
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review board may order under this chapter, including a |
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determination of the appraised or market value, as applicable, of |
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the property that is the subject of the appeal; |
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(2) shall specify the arbitrator's fee, which may not |
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exceed $500; |
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(3) is final and may not be appealed except as |
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permitted under Section 171.088, Civil Practice and Remedies Code, |
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for an award subject to that section; and |
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(4) may be enforced in the manner provided by |
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Subchapter D, Chapter 171, Civil Practice and Remedies Code. |
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(c) If the arbitrator determines that the appraised or |
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market value, as applicable, of the property that is the subject of |
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the protest is nearer to the property owner's opinion of the |
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appraised or market value, as applicable, of the property as stated |
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in the request for binding arbitration submitted under Section |
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41.83 than the value determined by the appraisal district: |
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(1) the comptroller, on receipt of a copy of the award, |
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shall: |
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(A) pay the arbitrator's fee out of the |
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arbitration deposit; and |
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(B) refund to the appraisal district any |
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remaining amount of the arbitration deposit; and |
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(2) the chief appraiser shall correct the appraised or |
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market value, as applicable, of the property as shown in the |
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appraisal roll to reflect the arbitrator's determination. |
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(d) If the arbitrator determines that the appraised or |
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market value, as applicable, of the property that is the subject of |
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the protest is not nearer to the property owner's opinion of the |
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appraised or market value, as applicable, of the property as stated |
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in the request for binding arbitration submitted under Section |
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41.83 than the value determined by the appraisal district: |
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(1) the comptroller, on receipt of a copy of the award, |
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shall: |
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(A) pay the arbitrator's fee out of the |
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arbitration deposit; and |
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(B) refund to the appraisal district any |
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remaining amount of the arbitration deposit; |
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(2) the chief appraiser shall correct the appraised or |
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market value, as applicable, of the property as shown in the |
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appraisal roll to reflect the arbitrator's determination if the |
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value as determined by the arbitrator is less than the value as |
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determined by the appraisal review board; and |
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(3) the property owner not later than the 60th day |
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after the date of the award shall reimburse the appraisal district |
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for the arbitrator's fee that was paid out of the appraisal |
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district's deposit. |
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(e) The appraisal district may bring an action against the |
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property owner to collect the amount of the reimbursement due under |
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Subsection (d)(3). |
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Sec. 41.90. RULES; DELEGATION OF APPOINTMENT AUTHORITY. |
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The comptroller may: |
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(1) adopt rules necessary to implement and administer |
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this subchapter; and |
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(2) designate employees authorized to appoint |
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arbitrators under this subchapter. |
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SECTION 2. As soon as practicable after the effective date |
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of this Act, but not later than October 1, 2007: |
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(1) each appraisal district shall prescribe the form |
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of an arbitration request as provided by Section 41.84, Tax Code, as |
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added by this Act; and |
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(2) the comptroller shall: |
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(A) prescribe the model form for an arbitration |
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request as provided by Section 41.84, Tax Code, as added by this |
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Act; and |
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(B) establish a registry of qualified |
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arbitrators as provided by Section 41.86, Tax Code, as added by this |
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Act. |
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SECTION 3. Subchapter E, Chapter 41, Tax Code, as added by |
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this Act, applies only to a protest filed by a property owner under |
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that chapter on or after the effective date of this Act. A protest |
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filed by a property owner under Chapter 41, Tax Code, before the |
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effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and the former |
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law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |