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A BILL TO BE ENTITLED
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AN ACT
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relating to notice regarding and the application for a residence |
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homestead exemption from ad valorem taxation; imposing a civil |
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penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 11, Tax Code, is amended by |
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adding Sections 11.49 and 11.50 to read as follows: |
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Sec. 11.49. FEE FOR ASSISTANCE WITH RESIDENCE HOMESTEAD |
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APPLICATION. (a) A person who assists another person by preparing |
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or filing on behalf of the other person an application for an |
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exemption under Section 11.13 for a parcel of real property after |
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the first anniversary of the date of the sale or transfer of the |
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property to the other person: |
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(1) may not charge a fee of more than $55 for that |
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service; and |
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(2) must timely file the application with the chief |
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appraiser for each appraisal district in which the property is |
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located. |
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(b) A fee under Subsection (a) must be paid directly by the |
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person who receives the service. A person providing a service |
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described by Subsection (a) may not accept any part of a refund of |
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taxes on any property in payment for those services. |
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(c) A person who assists another person by preparing or |
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filing on behalf of the other person an application for an exemption |
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under Section 11.13 for a parcel of real property may not charge a |
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fee for the service if the application: |
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(1) is for an exemption that has already been granted |
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to the purchaser or owner; or |
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(2) is submitted on or before the first anniversary of |
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the date of the sale or transfer of the property to the purchaser or |
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owner. |
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(d) A person who violates this section is liable to the |
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purchaser or owner, as applicable, for: |
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(1) actual damages; |
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(2) a civil penalty in the amount of $1,000; and |
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(3) reasonable court costs and attorney's fees. |
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Sec. 11.50. ASSISTANCE WITH RESIDENCE HOMESTEAD EXEMPTION |
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APPLICATION. (a) A settlement agent who conducts a closing on a |
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sale or other transfer of title to a single-family residential |
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structure or a single unit of other residential property shall |
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provide to the purchaser or other transferee as applicable: |
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(1) a copy of the form used by each appraisal district |
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in which the property is located for applying for residence |
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homestead exemptions under Section 11.13; and |
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(2) the following information: |
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(A) the type of residence homestead exemptions |
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available under Section 11.13 and instructions on how to file an |
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application for applicable exemptions with each appraisal district |
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in which the property is located; |
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(B) the location, including the mailing and |
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physical address, of each appraisal district in which the property |
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is located; and |
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(C) the deadline by which the appraisal district |
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must receive the application for the purchaser or other transferee |
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to qualify for any applicable residence homestead exemptions under |
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Section 11.13. |
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(b) A person who is required to provide a form and |
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information under this section is not liable to the purchaser or |
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other transferee of the property for: |
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(1) an error in the information provided; or |
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(2) the person's failure to provide the form or |
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information. |
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SECTION 2. (a) Section 25.19, Tax Code, is amended by |
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adding Subsection (b-2) and amending Subsection (d) to read as |
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follows: |
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(b-2) This subsection applies only to a notice of appraised |
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value for residential real property that has not qualified for a |
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residence homestead exemption in the current tax year. If the |
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records of an appraisal district show that a property owner has the |
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same address as that property, in addition to containing the |
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applicable information required by Subsections (b), (b-1), and (f), |
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the notice must contain the following statement in boldfaced |
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12-point type: "According to the records of the appraisal |
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district, the residential real property described in this notice of |
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appraised value is not currently being allowed a residence |
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homestead exemption from ad valorem taxation. If the property is |
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your home and you occupy it as your principal place of residence, |
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the property may qualify for one or more residence homestead |
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exemptions, which will reduce the amount of taxes imposed on the |
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property. The form needed to apply for a residence homestead |
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exemption is enclosed. Although the form may state that the |
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deadline for filing an application for a residence homestead |
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exemption is April 30, a late application for a residence homestead |
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exemption will be accepted if filed before February 1, (insert year |
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application must be filed). There is no fee or charge for filing an |
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application or a late application for a residence homestead |
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exemption." The notice must be accompanied by an application form |
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for a residence homestead exemption. |
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(d) Failure to receive a [the] notice required by this |
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section does not affect the validity of the appraisal of the |
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property, the imposition of any tax on the basis of the appraisal, |
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the existence of any tax lien, the deadline for filing an |
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application for a residence homestead exemption, or any proceeding |
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instituted to collect the tax. |
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(b) This section takes effect January 1, 2008. |
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SECTION 3. Section 41.0051, Property Code, is amended by |
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amending Subsections (a) and (c) and adding Subsections (b-1) and |
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(d) to read as follows: |
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(a) A person may not deliver a written advertisement |
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offering, for a fee, to designate property as a homestead as |
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provided by Section 41.005 unless there is a disclaimer on the |
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advertisement that is conspicuous and printed in 14-point boldface |
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type or 14-point uppercase typewritten letters that makes the |
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following statement or a substantially similar statement: |
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THIS DOCUMENT IS AN ADVERTISEMENT OF SERVICES. IT IS |
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NOT AN OFFICIAL DOCUMENT OF THE STATE OF TEXAS OR OF |
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ANY COUNTY OR TAXING UNIT OF THE STATE OF TEXAS. A |
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PERSON WHO CURRENTLY RECEIVES A RESIDENCE HOMESTEAD |
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EXEMPTION FROM AD VALOREM TAXATION FOR A PARCEL OF REAL |
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PROPERTY IS CONSIDERED TO HAVE DESIGNATED THE PROPERTY |
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AS THE PERSON'S HOMESTEAD FOR PURPOSES OF TEXAS |
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PROPERTY LAW AND NEED NOT FILE A HOMESTEAD DESIGNATION |
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IN THE COUNTY DEED RECORDS. |
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(b-1) A person may not charge a fee to assist another person |
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by preparing or filing on behalf of the other person an application |
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to designate property as a homestead under Section 41.005 unless: |
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(1) the person: |
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(A) provides the other person with written |
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materials that include the disclosure required by Subsection (a); |
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and |
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(B) complies with Section 11.49, Tax Code; and |
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(2) the application is for an exemption authorized by |
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Section 11.13, Tax Code. |
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(c) A person's failure to provide a disclaimer on an |
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advertisement as required by Subsection (a), [or] to provide the |
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disclosure required by Subsection (b), or to comply with the |
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requirements of Subsection (b-1) is considered a false, misleading, |
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or deceptive act or practice for purposes of Section 17.46(a), |
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Business & Commerce Code, and is subject to action by the consumer |
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protection division of the attorney general's office as provided by |
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Section 17.46(a), Business & Commerce Code. |
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(d) In addition to any other remedy provided by law, a |
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person who violates this section is liable to the purchaser or |
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owner, as applicable, for: |
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(1) actual damages; |
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(2) a civil penalty in the amount of $1,000; and |
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(3) reasonable court costs and attorney's fees. |
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SECTION 4. Section 11.50, Tax Code, as added by this Act, |
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applies only to a sale or other transfer of title to real property |
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that occurs on or after the effective date of this Act. |
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SECTION 5. Except as otherwise provided by this Act, this |
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Act takes effect September 1, 2007. |