80R928 EJI-D

By: Rodriguez H.B. No. 2167

A BILL TO BE ENTITLED

AN ACT

relating to the authority of a person to charge a fee for assisting another person in applying for a residence homestead tax exemption; 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 Section 11.49 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.

SECTION 2. 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 3. This Act takes effect September 1, 2007.