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A BILL TO BE ENTITLED
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AN ACT
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relating to ad valorem taxation administered by the comptroller; |
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relying on self-reports; sales disclosure by taxpayers; and the |
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abolition of central appraisal districts and all related functions; |
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providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2, Tax Code, is added to read as follows: |
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CHAPTER 2. STATE ADMINISTRATION OF PROPERTY TAXES |
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Sec. 2.01. COUNTY APPRAISAL OFFICE; CHIEF ADMINISTRATOR |
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(a) The comptroller shall operate an appraisal office in each |
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county. |
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(b) The appraisal office is responsible for appraising |
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property in the county for ad valorem tax purposes of each taxing |
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unit that imposes ad valorem taxes on property in the county. |
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(c) For purposes of this title, each taxing unit with |
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territory in the county is considered to participate in the |
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appraisal office established for that county. |
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Sec. 2.02. CHIEF ADMINISTRATOR; APPRAISAL OFFICE STAFF. |
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(a) The chief administrator is appointed by and serves at the |
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pleasure of the comptroller. A chief administrator appointed under |
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this section is not eligible to serve if the person held the |
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position of chief appraiser or executive director of a central |
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appraisal district 5 years preceding the effective date of this |
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Act. |
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(b) The chief administrator is entitled to compensation as |
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provided by the budget approved by the comptroller. The chief |
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administrator may employ and compensate professional, clerical, |
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and other personnel for the appraisal office as provided by the |
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budget. |
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(c) The chief administrator may delegate authority to |
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employees of the appraisal office. |
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Sec. 2.03. BUDGET AND FINANCING. (a) Each year the chief |
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administrator shall prepare a proposed budget for the operations of |
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the appraisal office for the following tax year and shall submit |
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copies to the comptroller and to each taxing unit for which the |
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office appraises property. The chief administrator shall include |
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in the budget a list showing each proposed position, the proposed |
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salary for the position, all benefits proposed for the position, |
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each proposed capital expenditure, and an estimate of the amount of |
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the budget that will be allocated to each taxing unit. Each taxing |
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unit entitled to vote on the appointment of board members shall |
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maintain a copy of the proposed budget for public inspection at its |
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principal administrative office. |
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(d) Each taxing unit for which the office appraises property |
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is allocated a portion of the amount of the budget equal to the |
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proportion that the total dollar amount of property taxes imposed |
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in the county for which the appraisal office is established by the |
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unit for the tax year in which the budget proposal is prepared bears |
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to the sum of the total dollar amount of property taxes imposed in |
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the county by each participating unit for that year. |
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Sec. 2.03. RENDITION GENERALLY. (a) Except as provided by |
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subsection (b), a person shall render for taxation all tangible |
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real and personal property that is not otherwise exempt that the |
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person owns or that the person manages and controls as a fiduciary |
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on January 1. A rendition statement shall contain: |
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(1) the name and address of the property owner; |
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(2) a description of the property by type or category; |
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(3) if the property is inventory, a description of |
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each type of inventory and a general estimate of the quantity of |
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each type of inventory; |
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(4) the physical location or taxable situs of the |
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property; and |
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(5) the property owner's good faith estimate of the |
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market value of the property and the historical cost when new and |
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the year of acquisition of the property. |
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(b) A rendition of real property remains in effect for |
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subsequent years and a property owner is not required to file a |
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rendition for subsequent years. |
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Sec. 2.04. DISCLOSURE AND USE OF SALES INFORMATION. (a) |
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The comptroller shall prescribe the form and content of a real |
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property conveyance report filed under this subchapter. The |
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comptroller may prescribe different report forms for different |
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kinds of property and shall ensure that each form requires the |
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person filing the report to provide: |
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(1) the transferor's name and address; |
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(2) the transferee's name and address; |
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(3) information necessary to identify the property and |
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to determine its location; |
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(4) the address to which tax notices concerning the |
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property should be mailed; |
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(5) the value of any personal property included in the |
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conveyance; |
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(6) the purchase price of the property; |
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(7) the date the transaction was closed; and |
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(8) the name and address of the person preparing the |
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report. |
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(b) A person who files a report under this subchapter must: |
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(1) use the appropriate form prescribed by the |
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comptroller; and |
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(2) include all information required by the form. |
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(c) The sales price of the property shall form the person's |
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good faith estimate of market value and its presumed to be the |
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appraised value of the property. |
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Sec. 2.05. RENDITION OF PROPERTY LOSING EXEMPTION DURING |
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TAX YEAR OR FOR WHICH EXEMPTION APPLICATION IS DENIED. (a) If an |
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exemption applicable to a property on January 1 terminates during |
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the tax year, the person who owns or acquires the property on the |
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date applicability of the exemption terminates shall render the |
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property for taxation within 30 days after the date of termination. |
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(b) If the chief administrator denies an application for an |
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exemption for property, the person who owns the property on the date |
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the application is denied shall render the property for taxation in |
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the manner provided by herein within 30 days after the date of |
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denial. |
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Sec. 2.06. REPORT OF DECREASED VALUE. (a) A person who |
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believes the assessed value of his property decreased during the |
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preceding tax year for any reason other than normal depreciation |
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may file an information report describing the property involved and |
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stating the nature and cause of the decrease. |
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(b) Except as provided by Subsection (d) of this section, |
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before determining the appraised value of property that is the |
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subject of a completed and timely filed report as provided by |
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Subsection (a) of this section, the chief administrator must view |
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the property to verify any reported change in appraised value and |
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its cause and nature. The person who views the property shall note |
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on the back of the property owner's report his name, the date he |
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viewed the property, and his determination of any decrease in |
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appraised value and its cause and nature. |
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(c) The chief administrator shall deliver a written notice |
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to the property owner of the determination made as provided by |
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Subsection (b) of this section. |
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Sec. 2.07. REPORT BY BAILEE, LESSEE, OR OTHER POSSESSOR. |
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(a) When required by the chief administrator, a person shall file a |
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report listing the name and address of each owner of property that |
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is in his possession or under his management on January 1 by |
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bailment, lease, consignment, or other arrangement. |
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(b) When required by the chief administrator, a person who |
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leases or otherwise provides space to another for storage of |
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personal property shall file an information report stating the name |
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and address of each person to whom he leased or otherwise provided |
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storage space on January 1. |
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Sec. 2.08. INSPECTION OF PROPERTY. (a) The chief |
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administrator or his authorized representative may enter the |
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premises of a business, trade, or profession and inspect the |
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property to determine the existence and market value of tangible |
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real or personal property having a taxable situs in the district. |
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(b) An inspection under this section must be during normal |
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business hours or at a time mutually agreeable to the chief |
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administrator or his representative and the person in control of |
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the premises. |
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(c) The chief administrator may request, either in writing |
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or by electronic means, that the property owner provide a statement |
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containing supporting information indicating how the value |
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rendered was determined. The statement must: |
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(1) summarize information sufficient to identify the |
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property, including: |
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(A) the physical and economic characteristics |
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relevant to the opinion of value, if appropriate; and |
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(B) the source of the information used; |
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(2) state the effective date of the opinion of value; |
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and |
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(3) explain the basis of the value rendered. |
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(d) The property owner shall deliver the statement to the |
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chief administrator, either in writing or by electronic means, not |
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later than the 21st day after the date the chief administrator's |
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request is received. |
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(e) A statement provided under this section is confidential |
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information and may not be disclosed, except as provided herein. |
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(f) Failure to comply with this section in a timely manner |
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is considered to be a failure to timely render and penalties as |
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described herein shall be applied by the chief administrator. |
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Sec. 2.09. PUBLICIZING REQUIREMENTS. Each year the |
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comptroller and each chief administrator shall publicize in a |
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manner reasonably designed to notify all property owners the |
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requirements of the law relating to filing rendition statements and |
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property reports and of the availability of forms. |
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Sec. 2.10. FILING DATE. (a) For residential real property, |
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rendition statements and property reports must be delivered to the |
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chief administrator no later than 60 days after the date of closing |
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of the real estate transaction and shall be submitted by a title |
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agent or escrow agent. |
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(b) For all other real property, rendition statements and |
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property reports must be delivered to the chief administrator after |
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January 1 and not later than April 15. |
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(c) On written request by the property owner, the chief |
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administrator shall extend a deadline for filing a rendition |
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statement or property report to May 15. The chief administrator may |
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further extend the deadline an additional 15 days upon good cause |
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shown in writing by the property owner. |
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Sec. 2.11. RENDITION AND REPORT FORMS. (a) A person |
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required to render property or to file a report as provided by this |
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chapter shall use a form that complies with the appropriate form |
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prescribed or approved by the comptroller. |
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(b) A person filing a rendition or report shall include all |
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information required hereunder. |
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(c) The comptroller may prescribe or approve different |
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forms for different kinds of property but shall ensure that each |
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form requires a property owner to furnish the information necessary |
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to identify the property and to determine its ownership, |
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taxability, and situs. In addition, a form prescribed or approved |
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under this subsection must contain the following statement in bold |
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type: "If you make a false statement on this form you could be found |
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guilty of a Class A misdemeanor or a state jail felony under Section |
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37.10, Penal Code." |
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(d) To be valid, a rendition or report must be sworn to |
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before an officer authorized by law to administer an oath. The |
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comptroller may not prescribe or approve a rendition or report form |
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unless the form provides for the person filing the form to swear |
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that the information provided in the rendition or report is true and |
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accurate to the best of the person's knowledge and belief. |
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Sec. 2.12. PLACE AND MANNER OF FILING. A rendition |
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statement or property report required or authorized by this chapter |
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must be filed with the chief administrator for the district in which |
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the property listed in the statement or report is taxable. |
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Sec. 2.13. SIGNATURE. (a) Each rendition statement or |
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property report required or authorized by this chapter must be |
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signed by an individual who is required to file the statement or |
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report. |
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(b) When a corporation is required to file a statement or |
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report, an officer of the corporation or an employee or agent who |
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has been designated in writing by the board of directors or by an |
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authorized officer to sign in behalf of the corporation must sign |
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the statement or report. |
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Sec. 2.14. CONFIDENTIAL INFORMATION. (a) Rendition |
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statements, real and personal property reports, attachments to |
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those statements and reports, and other information the owner of |
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property provides to the appraisal office in connection with the |
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appraisal of the property are confidential and not open to public |
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inspection. The information they contain will be held confidential |
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and may not be disclosed to anyone other than an employee of the |
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appraisal office who appraises property except as authorized by |
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Subsection (b) of this section. |
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(b) Information made confidential by this section may be |
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disclosed: |
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(1) in a judicial or administrative proceeding |
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pursuant to a lawful subpoena; |
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(2) to the person who filed the statement or report or |
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the owner of property subject to the statement, report, or |
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information or to a representative of either authorized in writing |
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to receive the information; |
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(3) to the comptroller and the comptroller's employees |
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authorized by the comptroller in writing to receive the information |
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or to an assessor or a chief administrator if requested in writing; |
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(4) in a judicial or administrative proceeding |
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relating to property taxation to which the person who filed the |
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statement or report or the owner of the property that is a subject |
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of the statement, report, or information is a party; or |
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(5) for statistical purposes if in a form that does not |
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identify specific property or a specific property owner. |
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(c) A person who legally has access to a statement or report |
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or to other information made confidential by this section or who |
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legally obtains the confidential information commits a Class B |
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misdemeanor if he knowingly: |
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(1) permits inspection of the statement or report by a |
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person not authorized to inspect it by Subsection (b) of this |
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section; or |
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(2) discloses the confidential information to a person |
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not authorized to receive the information by Subsection (b) of this |
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section. |
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(d) No person who directly or indirectly provides |
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information to the comptroller or appraisal office about real or |
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personal property sales prices shall be liable to any other person |
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as the result of providing such information. |
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Sec. 2.15. MARGIN OF ERROR OF RENDITION STATEMENT FILED BY |
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PROPERTY OWNER. A person who files a rendition statement for real |
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property with the chief administrator shall not be subject to a |
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penalty of fraud or intent to evade tax if the market value rendered |
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for real property is within 5 percent of the market value as |
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determined by an audit order of the comptroller. |
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Sec. 2.16. PENALTY FOR FRAUD OR INTENT TO EVADE TAX. (a) |
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The chief administrator shall impose an additional penalty on the |
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person equal to 25 percent of the total amount of taxes imposed on |
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the property for the tax year of the statement or report by the |
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taxing units participating in the appraisal district if it is |
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finally determined by a court that: |
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(1) the person filed a false statement or report with |
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the intent to commit fraud or to evade the tax; or |
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(2) the person alters, destroys, or conceals any |
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record, document, or thing, or presents to the chief administrator |
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any altered or fraudulent record, document, or thing, or otherwise |
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engages in fraudulent conduct, for the purpose of affecting the |
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course or outcome of an inspection, investigation, determination, |
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or other proceeding before the appraisal district. |
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(b) Enforcement of this section shall be by a proceeding |
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initiated by the district or county attorney of the county in which |
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the appraisal is established, on behalf of the appraisal district. |
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(c) In making a determination of liability under this |
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section, the court shall consider: |
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(1) the person's compliance history with respect to |
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paying taxes and filing statements or reports; |
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(2) the type, nature, and taxability of the specific |
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property involved; |
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(3) the type, nature, size, and sophistication of the |
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person's business or other entity for which property is rendered; |
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(4) the completeness of the person's records; |
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(5) the person's reliance on advice provided by the |
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appraisal district that may have contributed to the violation; |
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(6) any change in appraisal district policy during the |
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current or preceding tax year that may affect how property is |
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rendered; and |
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(7) any other factor the court considers relevant. |
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(d) The chief administrator may retain a portion of a |
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penalty collected under this section, not to exceed 20 percent of |
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the amount of the penalty, to cover the chief administrator's costs |
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of collecting the penalty. The chief administrator shall |
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distribute the remainder of the penalty to each taxing unit |
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participating in the appraisal district that imposes taxes on the |
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property in proportion to the taxing unit's share of the total |
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amount of taxes imposed on the property by all taxing units |
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participating in the district. |
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Sec. 2.17. WAIVER OF PENALTY. (a) The chief administrator |
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may waive the penalty imposed if the chief administrator determines |
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that the person exercised reasonable diligence to comply with or |
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has substantially complied with the requirements of this chapter. A |
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written request, accompanied by supporting documentation, stating |
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the grounds on which penalties should be waived must be sent to the |
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chief administrator not later than the 30th day after the date the |
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person received notification of the imposition of the penalty. The |
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chief administrator shall make a determination of the penalty |
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waiver request based on the information submitted. |
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(b) the chief administrator shall notify the person of the |
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chief administrator's determination regarding the penalty waiver |
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request after considering: |
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(1) the person's compliance history with respect to |
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paying taxes and filing statements or reports; |
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(2) the type, nature, and taxability of the specific |
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property involved; |
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(3) the type, nature, size, and sophistication of the |
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person's business or other entity for which property is rendered; |
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(4) the completeness of the person's records; |
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(5) the person's reliance on advice provided by the |
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appraisal district or any other licensed professional with |
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experience in the real estate market that may have contributed to |
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the person's failure to comply and the imposition of the penalty; |
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(6) any change in appraisal district policy during the |
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current or preceding tax year that may affect how property is |
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rendered; and |
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(7) any other factors that may have caused the person |
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to fail to timely file a statement or report. |
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Sec. 2.18. APPRAISALS GENERALLY. (a) All taxable property |
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is appraised at its market value as of January 1. The market value |
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of property shall be determined based upon the good faith estimate |
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of value set forth in the owner's rendition. |
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Sec. 2.19. PREPARATION OF APPRAISAL RECORDS. (a) By May 15 |
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or as soon thereafter as practicable, the chief administrator shall |
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prepare appraisal records listing all property that is taxable in |
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the district and stating the appraised value of each. |
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Sec. 2.20. SPECIAL APPRAISAL RECORDS. (a) The chief |
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administrator for each appraisal district shall prepare and |
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maintain a record of property specially appraised under Chapter 23 |
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of this code and subject, in the future, to additional taxation for |
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change in use or status. |
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(b) The record for each type of specially appraised property |
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must be maintained in a separate document for each 12-month period |
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beginning June 1. The document must include the name of at least one |
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owner of the property, the acreage of the property, and other |
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information sufficient to identify the property as required by the |
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comptroller. All entries in each document must be kept in |
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alphabetical order according to the last name of each owner whose |
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name is part of the record. |
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Sec. 2.21. FORM AND CONTENT. (a) The appraisal records |
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shall be in the form prescribed by the comptroller and shall |
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include: |
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(1) the name and address of the owner or, if the name |
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or address is unknown, a statement that it is unknown; |
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(2) real property; |
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(3) separately taxable estates or interests in real |
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property, including taxable possessory interests in exempt real |
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property; |
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(4) personal property; |
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(5) the appraised value of land and, if the land is |
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appraised as provided by Subchapter C, D, E, or H, Chapter 23, the |
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market value of the land; |
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(6) the appraised value of improvements to land; |
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(7) the appraised value of a separately taxable estate |
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or interest in land; |
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(8) the appraised value of personal property; |
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(9) the kind of any partial exemption the owner is |
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entitled to receive, whether the exemption applies to appraised or |
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assessed value, and, in the case of an exemption authorized by |
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Section 11.23, the amount of the exemption; |
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(10) the tax year to which the appraisal applies; and |
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(11) an identification of each taxing unit in which |
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the property is taxable. |
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(b) A mistake in the name or address of an owner does not |
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affect the validity of the appraisal records, of any appraisal or |
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tax roll based on them, or of the tax imposed. The mistake may be |
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corrected as provided by this code. |
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Sec. 2.22. DESCRIPTION. (a) Property shall be described in |
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the appraisal records with sufficient certainty to identify it. The |
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description of a manufactured home shall include the correct |
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identification or serial number of the home or the Department of |
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Housing and Urban Development label number or the state seal number |
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in addition to the information required in Subsection (c) of this |
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Section. A manufactured home shall not be included in the appraisal |
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records unless this identification and descriptive information is |
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included. |
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(b) The comptroller may adopt rules establishing minimum |
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standards for descriptions of property. |
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(c) Each description of a manufactured home shall include |
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the approximate square footage, the approximate age, the general |
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physical condition, and any characteristics which distinguish the |
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particular manufactured home. |
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Sec. 2.23. SEPARATE ESTATES OR INTERESTS. Except as |
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otherwise provided by this chapter, when different persons own land |
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and improvements in separate estates or interests, each separately |
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owned estate or interest shall be listed separately in the name of |
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the owner of each if the estate or interest is described in a duly |
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executed and recorded instrument of title. |
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Sec. 2.24. LIFE ESTATES. Real property owned by a life |
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tenant and remainderman shall be listed in the name of the life |
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tenant. |
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Sec. 2.25. PROPERTY ENCUMBERED BY POSSESSORY OR SECURITY |
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INTEREST. (a) Property encumbered by a leasehold or other |
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possessory interest or by a mortgage, deed of trust, or other |
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interest securing payment or performance of an obligation shall be |
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listed in the name of the owner of the property so encumbered. |
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(b) Except as otherwise directed in writing, real property |
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that is subject to an installment contract of sale shall be listed |
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in the name of the seller if the installment contract is not filed |
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of record in the real property records of the county. |
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(c) This section does not apply to: |
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(1) any portion of a facility owned by the Texas |
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Department of Transportation that is part of the Trans-Texas |
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Corridor, is a rail facility or system, or is a highway in the state |
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highway system and that is licensed or leased to a private entity by |
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that department under Chapter 91, 227, or 361, Transportation Code; |
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or |
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(2) a leasehold or other possessory interest granted |
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by the Texas Department of Transportation in a facility owned by |
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that department that is part of the Trans-Texas Corridor, is a rail |
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facility or system, or is a highway in the state highway system. |
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Sec. 2.26. LEASEHOLD AND OTHER POSSESSORY INTERESTS IN |
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EXEMPT PROPERTY. (a) Except as provided by Subsection (b) of this |
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section, a leasehold or other possessory interest in real property |
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that is exempt from taxation to the owner of the estate or interest |
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encumbered by the possessory interest shall be listed in the name of |
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the owner of the possessory interest if the duration of the interest |
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may be at least one year. |
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(b) Except as provided by Subsections (b)and (c) of Section |
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11.11 of this code, a leasehold or other possessory interest in |
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exempt property may not be listed if: |
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(1) the property is permanent university fund land; |
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(2) the property is county public school fund |
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agricultural land; |
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(3) the property is a part of a public transportation |
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facility owned by an incorporated city or town and: |
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(A) is an airport passenger terminal building or |
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a building used primarily for maintenance of aircraft or other |
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aircraft services, for aircraft equipment storage, or for air |
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cargo; |
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(B) is an airport fueling system facility; |
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(C) is in a foreign-trade zone: |
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(i) that has been granted to a joint airport |
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board under Chapter 129, Acts of the 65th Legislature, Regular |
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Session, 1977 (Article 1446.8, Vernon's Texas Civil Statutes); |
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(ii) the area of which in the portion of the |
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zone located in the airport operated by the joint airport board does |
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not exceed 2,500 acres; and |
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(iii) that is established and operating |
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pursuant to federal law; or |
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(D)(i) is in a foreign trade zone established |
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pursuant to federal law after June 1, 1991, which operates pursuant |
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to federal law; |
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(ii) it is contiguous to or has access via a |
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taxiway to an airport located in two counties, one of which has a |
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population of 500,000 or more according to the federal decennial |
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census most recently preceding the establishment of the foreign |
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trade zone; and |
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(iii) is owned, directly or through a |
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corporation organized under the Development Corporation Act of 1979 |
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(Article 5190.6, Vernon's Texas Civil Statutes), by the same |
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incorporated city or town which owns the airport; |
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(4) the interest is in a part of: |
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(A) a park, market, fairground, or similar public |
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facility that is owned by an incorporated city or town; or |
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(B) a convention center, visitor center, sports |
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facility with permanent seating, concert hall, arena, or stadium |
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that is owned by an incorporated city or town as such leasehold or |
|
possessory interest serves a governmental, municipal, or public |
|
purpose or function when the facility is open to the public, |
|
regardless of whether a fee is charged for admission; |
|
(5) the interest involves only the right to use the |
|
property for grazing or other agricultural purposes; |
|
(6) the property is owned by the Texas National |
|
Research Laboratory Commission or by a corporation formed by the |
|
Texas National Research Laboratory Commission under Section |
|
465.008(g), Government Code, and is used or is useful in connection |
|
with an eligible undertaking as defined by Section 465.021, |
|
Government Code; or |
|
(7) the property is: |
|
(A) owned by a municipality, a public port, or a |
|
navigation district created or operating under Section 59, Article |
|
XVI, Texas Constitution, or under a statute enacted under Section |
|
59, Article XVI, Texas Constitution; and |
|
(B) used as an aid or facility incidental to or |
|
useful in the operation or development of a port or waterway or in |
|
aid of navigation-related commerce. |
|
(c) Subsection (a) does not apply to: |
|
(1) any portion of a facility owned by the Texas |
|
Department of Transportation that is part of the Trans-Texas |
|
Corridor, is a rail facility or system, or is a highway in the state |
|
highway system and that is licensed or leased to a private entity by |
|
that department under Chapter 91, 227, or 361, Transportation Code; |
|
or |
|
(2) a leasehold or other possessory interest granted |
|
by the Texas Department of Transportation in a facility owned by |
|
that department that is part of the Trans-Texas Corridor, is a rail |
|
facility or system, or is a highway in the state highway system. |
|
Sec. 2.27. IMPROVEMENTS. (a) Except as provided by |
|
Subsections (b) through (f), an improvement may be listed in the |
|
name of the owner of the land on which the improvement is located. |
|
(b) If a person who is not entitled to exemption owns an |
|
improvement on exempt land, the improvement shall be listed in the |
|
name of the owner of the improvement. |
|
(c) When a person other than the owner of an improvement |
|
owns the land on which the improvement is located, the land and the |
|
improvement shall be listed separately in the name of the owner of |
|
each if either owner files with the chief administrator before May 1 |
|
a written request for separate taxation on a form furnished for that |
|
purpose together with proof of separate ownership. After an |
|
improvement qualifies for taxation separate from land, the |
|
qualification remains effective in subsequent tax years and need |
|
not be requested again. However, the qualification ceases when |
|
ownership of the land or the improvement is transferred or either |
|
owner files a request to cancel the separate taxation. |
|
(d) Within 30 days after an owner of land or an improvement |
|
qualifies for separate taxation or cancels a qualification, the |
|
chief administrator shall deliver a written notice of the |
|
qualification or cancellation to the other owner. |
|
(e) A manufactured home shall be listed together with the |
|
land on which the home is located if: |
|
(1) the statement of ownership and location for the |
|
home issued under Section 1201.207, Occupations Code, reflects that |
|
the owner has elected to treat the home as real property; and |
|
(2) a certified copy of the statement of ownership and |
|
location has been filed in the real property records in the county |
|
in which the home is located. |
|
(f) A manufactured home shall be listed separately from the |
|
land on which the home is located if either of the conditions |
|
provided by Subsection (e) is not satisfied. |
|
Sec. 2.28. CONDOMINIUMS AND PLANNED UNIT DEVELOPMENTS. (a) |
|
A separately owned apartment or unit in a condominium as defined in |
|
the Condominium Act shall be listed in the name of the owner of each |
|
particular apartment or unit. The value of each apartment or unit |
|
shall include the value of its fractional share in the common |
|
elements of the condominium. |
|
(b) Property owned by a planned unit development |
|
association may be listed and taxes imposed proportionately against |
|
each member of the association if the association files with the |
|
chief administrator before May 1 a resolution adopted by vote of a |
|
majority of all members of the association authorizing the |
|
proportionate imposition of taxes. A resolution adopted as |
|
provided by this subsection remains effective in subsequent tax |
|
years unless it is revoked by a similar resolution. |
|
(c) If property is listed and taxes imposed proportionately |
|
as authorized by Subsection (b) of this section, the amount of tax |
|
to be imposed on the associations's property shall be divided by the |
|
number of parcels of real property in the development. The quotient |
|
is the proportionate amount of tax to be imposed on each parcel, and |
|
a tax lien attaches to each parcel to secure payment of its |
|
proportionate share of the tax on the association's property. |
|
(d) For purposes of this section, "planned unit development |
|
association" means an association that owns and maintains property |
|
in a real property development project for the benefit of its |
|
members, who are owners of individual parcels of real property in |
|
the development and are members of the association because of that |
|
ownership. |
|
Sec. 2.29. STANDING TIMBER. (a) Except as provided by |
|
Subsections (b) and (c) of this section, standing timber may be |
|
listed together with the land on which it is located in the name of |
|
the owner of the land. |
|
(b) If a person who is not entitled to exemption owns |
|
standing timber on exempt land, the timber shall be listed |
|
separately in the name of the owner of the timber. |
|
(c) When a person other than the owner of standing timber |
|
owns the land on which the timber is located, the land and the |
|
timber shall be listed separately in the name of the owner of each |
|
if either owner files with the chief administrator before May 1 a |
|
written request for separate taxation on a form furnished for that |
|
purpose together with proof of separate ownership. A qualification |
|
for separate taxation of timber expires at the end of the tax year. |
|
(d) Within 30 days after an owner of land or timber |
|
qualifies for separate taxation, the shall deliver a written notice |
|
of the qualification to the other owner. |
|
Sec. 2.30. UNDIVIDED INTERESTS. (a) Except as provided by |
|
Section 25.12 of this code and by Subsection (b) of this section, a |
|
property owned in undivided interests may be listed jointly in the |
|
name of all owners of undivided interests in the property or in the |
|
name of any one or more owners. |
|
(b) An undivided interest in a property shall be listed |
|
separately from other undivided interests in the property in the |
|
name of its owner if the interest is described in a duly executed |
|
and recorded instrument of title and the owner files with the |
|
appraisal office before May 1 a written request for separate |
|
taxation on a form furnished for that purpose together with proof of |
|
ownership and of the proportion his interest bears to the whole. |
|
After an undivided interest qualifies for separate taxation, the |
|
qualification remains effective in subsequent tax years and need |
|
not be requested again. However, the qualification ceases when |
|
ownership is transferred or when any owner files a request to cancel |
|
separate taxation. |
|
(c) Within 30 days after an owner qualifies for separate |
|
taxation or cancels a qualification, the chief administrator shall |
|
deliver a written notice of the qualification or cancellation to |
|
the other owners. |
|
Sec. 2.31. MINERAL INTEREST (a) Except as provided by |
|
Subsection (b) of this section, each separate interest in minerals |
|
in place shall be listed separately from other interests in the |
|
minerals in place in the name of the owner of the interest. |
|
(b) Separate interests in minerals in place, other that |
|
interests having a taxable value of less than $500, shall be listed |
|
jointly in the name of the operator designated with the railroad |
|
commission or the name of all owners or any combination of owners if |
|
the designated operator files with the appraisal office before May |
|
1 a written request for joint taxation on a form furnished for that |
|
purpose. A qualification pursuant to this subsection for joint |
|
taxation remains effective in subsequent tax years and need not be |
|
requested again. However, the qualification ceases when the |
|
designated operator files a request to cancel joint taxation. |
|
(c) If a written request for joint taxation has been filed |
|
under Subsection (b), the notice of appraised value provided for by |
|
Section 25.19 for the owners included in the request for joint |
|
taxation shall be delivered to the operator, owner, or owners of the |
|
mineral interest in whose name the mineral interest is designated |
|
for joint taxation. The chief administrator is not required to |
|
deliver a separate notice of appraised value to each owner included |
|
in the request for joint taxation. However, the chief |
|
administrator shall deliver a separate notice of appraised value to |
|
an owner of an interest in the property who before May 1 files a |
|
written request to receive a separate notice of appraised value |
|
with the chief administrator on a form provided by the appraisal |
|
district for that purpose. The request is effective for each |
|
subsequent year until revoked by the owner or until the owner no |
|
longer owns an interest in the property. |
|
Sec. 2.32. EXEMPT PROPERTY SUBJECT TO CONTRACT OF SALE. |
|
Property that is exempt from taxation to the titleholder but is |
|
subject on January 1 to a contract of sale to a person not entitled |
|
to exemption shall be listed in the name of the purchaser. |
|
Sec. 2.33. QUALIFYING TRUSTS. The interest of a qualifying |
|
trust as defined by Section 11.13(j) in a residence homestead shall |
|
be listed in the name of the trustor of the trust. |
|
Sec. 2.34. PROPERTY LOSING EXEMPTION DURING TAX YEAR. (a) |
|
If an exemption applicable to a property on January 1 terminates |
|
during the tax year, the property shall be listed in the name of the |
|
person who owns or acquires the property on the date applicability |
|
of the exemption terminates. |
|
(b) The chief administrator shall make an entry on the |
|
appraisal records showing that taxes on the property are to be |
|
calculated as provided by Section 26.10 of this code and showing the |
|
date on which exemption terminated. |
|
Sec. 2.35. PROPERTY OVERLAPPING TAXING UNIT BOUNDARIES. If |
|
real property is located partially outside and partially inside a |
|
taxing unit's boundaries, the portion inside the unit's boundaries |
|
shall be listed separately from the remaining portion. |
|
Sec. 2.36. OMITTED PROPERTY. (a) If the chief |
|
administrator discovers that the real property was omitted from an |
|
appraisal roll in any one of the five preceding years or that |
|
personal property was omitted from an appraisal roll in one of the |
|
two preceding years, he shall appraise the property as of January 1 |
|
of each year that it was omitted and enter the property and its |
|
appraised value in the appraisal records. |
|
(b) The entry shall show that the appraisal is for property |
|
that was omitted from an appraisal roll in a prior year and shall |
|
indicate the year and the appraised value for each year. |
|
Sec. 2.37. SUPPLEMENTAL APPRAISAL RECORDS. (a) After |
|
submission of appraisal records, the chief administrator shall |
|
prepare supplemental appraisal records listing: |
|
(1) each taxable property the chief administrator |
|
discovers that is not included in the records already submitted, |
|
including property that was omitted from an appraisal roll in a |
|
prior tax year; |
|
(2) property on which the appraisal review board has |
|
not determined a protest at the time of its approval of the |
|
appraisal records; and |
|
(3) property that qualifies for an exemption under |
|
Section 11.13(n) that was adopted by the governing body of a taxing |
|
unit after the date the appraisal records were submitted. |
|
(b) Supplemental appraisal records shall be in the form |
|
prescribed by the comptroller and shall include the items required |
|
by Section 25.02 of this code. |
|
Sec. 2.38. APPRAISAL ROLL. The appraisal records as |
|
approved by the chief administrator constitute the appraisal roll |
|
for the district. |
|
Sec. 2.39. CORRECTION OF APPRAISAL ROLL. (a) The chief |
|
administrator may change the appraisal roll at any time to correct a |
|
name or address, a determination of ownership, a description of |
|
property, multiple appraisals of a property, or a clerical error or |
|
other inaccuracy as prescribed by board rule that does not increase |
|
the amount of tax liability. Before the 10th day after the end of |
|
each calendar quarter, the chief administrator shall submit to the |
|
appraisal review board and to the board of directors of the |
|
appraisal district a written report of each change made under this |
|
subsection that decreases the tax liability of the owner of the |
|
property. The report must include: |
|
(1) a description of each property; and |
|
(2) the name of the owner of that property. |
|
Sec. 2.40. AUDITS. The chief administrator shall have the |
|
authority to conduct audits of taxpayers to determine whether the |
|
taxpayer's good faith estimate of value is a reasonable estimate of |
|
the market value of the property. If the chief administrator |
|
determines that the good faith estimate of value is not a reasonable |
|
estimate of value, the chief administrator may add the additional |
|
value to the appraisal roll as omitted property. |
|
Sec. 2.41. TAXPAYER CHALLENGES. The comptroller shall |
|
adopt rules consistent with Chapter 111, Tax Code, and Section 112, |
|
Tax Code, for taxpayer challenges to the imposition of the |
|
appraised value of the property by the chief administrator. |
|
SECTION 2. (a) A reference in a law other than the Tax Code |
|
to an appraisal district means the appraisal office established for |
|
a county. |
|
(b) A reference in law to the chief appraiser of an |
|
appraisal district or to the board or directors of an appraisal |
|
district means the chief administrator of an appraisal office. |
|
SECTION 3. (a) Chapters 5, 6, 22, 24, 41, 41A, 42 and 43 of |
|
the Tax Code are repealed. |
|
(b) Subchapters A and B of Chapter 25, Tax Code, are |
|
repealed. |
|
SECTION 4. (a) This Act takes effect January 1, 2008. |
|
(b) On the effective date of this Act: |
|
(1) each appraisal district, appraisal district board |
|
of directors, and appraisal review board is abolished; |
|
(2) all personnel, property, records, and funds of an |
|
appraisal district are transferred to the Comptroller of Public |
|
Accounts for the benefit of the appraisal office for the county for |
|
which the appraisal district was established; and |
|
(3) the comptroller is substituted for an appraisal |
|
district in any pending action, including a protest or challenge |
|
before an appraisal review board or an appeal or other action in a |
|
court. |
|
(c) On the effective date of this Act, all unpaid debts |
|
incurred by an appraisal district become debts of this state. |
|
SECTION 5. The comptroller shall have rule making authority |
|
for purposes of the effective implementation of this act. The rules |
|
shall be consistent with other provisions relating to the |
|
administration of taxes by the comptroller. |
|
SECTION 6. This Act takes effect on the date on which the |
|
constitutional amendment proposed by the 80th Legislature, Regular |
|
Session, 2007, authorizing the legislature to allow for ad valorem |
|
taxation be administered by the comptroller; relying on |
|
self-reports; sales disclosure by taxpayers; abolition of central |
|
appraisal districts and all related functions; and requiring a |
|
statewide referendum before the legislature may impose a real |
|
estate transfer fee or tax, takes effect, if that constitutional |
|
amendment is approved by the voters. If that constitutional |
|
amendment is not approved by the voters, this Act has no effect. |