By: Rodriguez H.B. No. 2167

A BILL TO BE ENTITLED

AN ACT

relating to notice regarding and the application for a residence homestead exemption from ad valorem taxation; imposing a civil penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 11, Tax Code, is amended by adding Sections 11.49 and 11.50 to read as follows:

Sec. 11.49. FEE FOR ASSISTANCE WITH RESIDENCE HOMESTEAD APPLICATION. (a) A person who assists another person by preparing or filing on behalf of the other person an application for an exemption under Section 11.13 for a parcel of real property after the first anniversary of the date of the sale or transfer of the property to the other person:

(1) may not charge a fee of more than $55 for that service; and

(2) must timely file the application with the chief appraiser for each appraisal district in which the property is located.

(b) A fee under Subsection (a) must be paid directly by the person who receives the service. A person providing a service described by Subsection (a) may not accept any part of a refund of taxes on any property in payment for those services.

(c) A person who assists another person by preparing or filing on behalf of the other person an application for an exemption under Section 11.13 for a parcel of real property may not charge a fee for the service if the application:

(1) is for an exemption that has already been granted to the purchaser or owner; or

(2) is submitted on or before the first anniversary of the date of the sale or transfer of the property to the purchaser or owner.

(d) A person who violates this section is liable to the purchaser or owner, as applicable, for:

(1) actual damages;

(2) a civil penalty in the amount of $1,000; and

(3) reasonable court costs and attorney's fees.

Sec. 11.50. ASSISTANCE WITH RESIDENCE HOMESTEAD EXEMPTION APPLICATION. (a) A settlement agent who conducts a closing on a sale or other transfer of title to a single-family residential structure or a single unit of other residential property shall provide to the purchaser or other transferee as applicable:

(1) a copy of the form used by each appraisal district in which the property is located for applying for residence homestead exemptions under Section 11.13; and

(2) the following information:

(A) the type of residence homestead exemptions available under Section 11.13 and instructions on how to file an application for applicable exemptions with each appraisal district in which the property is located;

(B) the location, including the mailing and physical address, of each appraisal district in which the property is located; and

(C) the deadline by which the appraisal district must receive the application for the purchaser or other transferee to qualify for any applicable residence homestead exemptions under Section 11.13.

(b) A person who is required to provide a form and information under this section is not liable to the purchaser or other transferee of the property for:

(1) an error in the information provided; or

(2) the person's failure to provide the form or information.

SECTION 2. (a) Section 25.19, Tax Code, is amended by adding Subsection (b-2) and amending Subsection (d) to read as follows:

(b-2) This subsection applies only to a notice of appraised value for residential real property that has not qualified for a residence homestead exemption in the current tax year. If the records of an appraisal district show that a property owner has the same address as that property, in addition to containing the applicable information required by Subsections (b), (b-1), and (f), the notice must contain the following statement in boldfaced 12-point type: "According to the records of the appraisal district, the residential real property described in this notice of appraised value is not currently being allowed a residence homestead exemption from ad valorem taxation. If the property is your home and you occupy it as your principal place of residence, the property may qualify for one or more residence homestead exemptions, which will reduce the amount of taxes imposed on the property. The form needed to apply for a residence homestead exemption is enclosed. Although the form may state that the deadline for filing an application for a residence homestead exemption is April 30, a late application for a residence homestead exemption will be accepted if filed before February 1, (insert year application must be filed). There is no fee or charge for filing an application or a late application for a residence homestead exemption." The notice must be accompanied by an application form for a residence homestead exemption.

(d) Failure to receive a [the] notice required by this section does not affect the validity of the appraisal of the property, the imposition of any tax on the basis of the appraisal, the existence of any tax lien, the deadline for filing an application for a residence homestead exemption, or any proceeding instituted to collect the tax.

(b) This section takes effect January 1, 2008.

SECTION 3. Section 41.0051, Property Code, is amended by amending Subsections (a) and (c) and adding Subsections (b-1) and (d) to read as follows:

(a) A person may not deliver a written advertisement offering, for a fee, to designate property as a homestead as provided by Section 41.005 unless there is a disclaimer on the advertisement that is conspicuous and printed in 14-point boldface type or 14-point uppercase typewritten letters that makes the following statement or a substantially similar statement:

THIS DOCUMENT IS AN ADVERTISEMENT OF SERVICES. IT IS NOT AN OFFICIAL DOCUMENT OF THE STATE OF TEXAS OR OF ANY COUNTY OR TAXING UNIT OF THE STATE OF TEXAS. A PERSON WHO CURRENTLY RECEIVES A RESIDENCE HOMESTEAD EXEMPTION FROM AD VALOREM TAXATION FOR A PARCEL OF REAL PROPERTY IS CONSIDERED TO HAVE DESIGNATED THE PROPERTY AS THE PERSON'S HOMESTEAD FOR PURPOSES OF TEXAS PROPERTY LAW AND NEED NOT FILE A HOMESTEAD DESIGNATION IN THE COUNTY DEED RECORDS.

(b-1) A person may not charge a fee to assist another person by preparing or filing on behalf of the other person an application to designate property as a homestead under Section 41.005 unless:

(1) the person:

(A) provides the other person with written materials that include the disclosure required by Subsection (a); and

(B) complies with Section 11.49, Tax Code; and

(2) the application is for an exemption authorized by Section 11.13, Tax Code.

(c) A person's failure to provide a disclaimer on an advertisement as required by Subsection (a), [or] to provide the disclosure required by Subsection (b), or to comply with the requirements of Subsection (b-1) is considered a false, misleading, or deceptive act or practice for purposes of Section 17.46(a), Business & Commerce Code, and is subject to action by the consumer protection division of the attorney general's office as provided by Section 17.46(a), Business & Commerce Code.

(d) In addition to any other remedy provided by law, a person who violates this section is liable to the purchaser or owner, as applicable, for:

(1) actual damages;

(2) a civil penalty in the amount of $1,000; and

(3) reasonable court costs and attorney's fees.

SECTION 4. Section 11.50, Tax Code, as added by this Act, applies only to a sale or other transfer of title to real property that occurs on or after the effective date of this Act.

SECTION 5. Except as otherwise provided by this Act, this Act takes effect September 1, 2007.