80R8118 JD-F

By: Williams S.B. No. 1062

A BILL TO BE ENTITLED

AN ACT

relating to the authority of an owner of real property to require that ad valorem taxes, other than taxes imposed for public school purposes, be imposed on that real property on the basis of a five-year average of the property's taxable value.

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

SECTION 1. Section 25.19, Tax Code, is amended by adding Subsection (b-2) to read as follows:

(b-2) In addition to the information required by Subsections (b), (b-1), and (f), the chief appraiser shall include in a notice required to be delivered under Subsection (a) or (g) for real property:

(1) the taxable value of the property in each of the four years preceding the current tax year;

(2) the average taxable value of the property over the five-year period ending with the current tax year; and

(3) a statement that the property owner may elect to require taxes, other than taxes imposed by a school district, for the current tax year and the next nine tax years to be imposed on the property on the basis of the five-year average taxable value in each year instead of on the basis of the taxable value for that year by filing a request with the assessor for each taxing unit that taxes the property, including an explanation of the deadline for filing the request.

SECTION 2. Section 26.09(c), Tax Code, is amended to read as follows:

(c) Except as provided by Section 26.095, the [The] tax is calculated by:

(1) subtracting from the appraised value of a property as shown on the appraisal roll for the unit the amount of any partial exemption allowed the property owner that applies to appraised value to determine net appraised value;

(2) multiplying the net appraised value by the assessment ratio to determine assessed value;

(3) subtracting from the assessed value the amount of any partial exemption allowed the property owner to determine taxable value; and

(4) multiplying the taxable value by the tax rate.

SECTION 3. Chapter 26, Tax Code, is amended by adding Section 26.095 to read as follows:

Sec. 26.095. ALTERNATIVE METHOD FOR CALCULATION OF TAX ON REAL PROPERTY. (a) An owner of real property may require that taxes, other than taxes imposed by a school district, imposed on that property for the current tax year and each of the subsequent nine tax years be calculated on the basis of the average taxable value of the property over the five-year period ending with the tax year for which the taxes are imposed.

(b) To require that taxes imposed by a taxing unit be calculated under this section, the owner of the property must file a request with the assessor for the taxing unit. The request must include a statement by the property owner requesting that, for the current tax year and each of the subsequent nine tax years, the taxes imposed by the taxing unit on the property described in the request be calculated under the method described by Subsection (a), subject to Subsections (d)-(g). The comptroller by rule shall prescribe the form of the request.

(c) A completed request must be filed not later than the later of June 15 or, if the notice is required to be delivered to the property owner, the 21st day after the date the property owner receives notice of the appraised value of the real property for the current tax year. If a property owner timely files a completed request with the assessor for a taxing unit, the taxes of that taxing unit for the current tax year on the real property described in the request shall be calculated under the method described by Subsection (a). If a property owner fails to timely file a completed request, the taxes of a taxing unit may not be calculated under the method described by Subsection (a) unless in a prior tax year the property owner requested the taxes imposed by the taxing unit on the property to be calculated under that method in the current tax year as one of the subsequent nine years covered by the request made in the prior tax year.

(d) Notwithstanding Subsections (a) and (b), the owner of real property who has previously requested that taxes imposed by a taxing unit on the property be calculated under the method described by Subsection (a) may revoke the owner's request for taxation of that property under that method in the current tax year. A revocation under this subsection must be made in writing and filed with the assessor for the taxing unit not later than the later of June 15 or, if the notice is required to be delivered to the property owner, the 21st day after the date the property owner receives notice of the appraised value of the real property for the current tax year.

(e) If a property owner timely revokes the owner's request that taxes imposed by a taxing unit be calculated under this section:

(1) the taxes of that taxing unit for the current tax year on the owner's real property may not be calculated under the method described by Subsection (a);

(2) an additional tax is imposed on the real property equal to the positive difference, if any, between the taxes imposed on the property for each of the 10 preceding tax years, if any, in which taxes imposed by the taxing unit on the property were calculated under the method described by Subsection (a) and the taxes that would have been imposed had those taxes on the property in each of those tax years not been calculated under that method; and

(3) as soon as practicable, the assessor for the taxing unit shall prepare and deliver a bill to the property owner for the additional taxes plus interest at an annual rate of seven percent calculated from the dates on which the differences in taxes would have become due.

(f) The additional tax and interest are due and become delinquent if not paid before the next February 1 that is at least 20 days after the date the bill is delivered to the property owner. A tax lien attaches to the real property to secure payment of the additional tax and interest imposed by Subsection (e). The lien exists in favor of each taxing unit for which the additional tax is imposed.

(g) If property on which taxes are calculated under the method provided by Subsection (a) ceases to be owned by the property owner who filed the request under Subsection (b) or by a subsequent owner, the taxes on the property shall continue to be calculated under that method for each of the tax years covered by the request of the prior owner unless the new owner of the property requests that the taxes on the property not be calculated under Subsection (a). A request under this subsection must be filed in the time and manner required for a revocation under Subsection (d). If the new owner timely files a request under this subsection:

(1) the taxes for the current tax year on the property may not be calculated under the method described by Subsection (a); and

(2) the property is subject to the additional tax and lien provided by Subsections (e) and (f).

(h) This subsection expires January 1, 2010. Notwithstanding the reference in Subsection (a) to a five-year period:

(1) for the 2008 tax year, the taxes calculated under the method provided by Subsection (a) shall be calculated on the basis of the average taxable value of the property over the three-year period ending with the tax year for which the taxes are imposed; and

(2) for the 2009 tax year, the taxes calculated under the method provided by Subsection (a) shall be calculated on the basis of the average taxable value of the property over the four-year period ending with the tax year for which the taxes are imposed.

SECTION 4. Section 31.01, Tax Code, is amended by adding Subsection (c-2) to read as follows:

(c-2) In addition to the information required by Subsections (c) and (c-1), the assessor shall include in the tax bill or separate statement for real property the taxable value of the property in each of the four years before the current tax year and the average taxable value of the property over the five-year period ending with the current tax year.

SECTION 5. This Act applies only to ad valorem taxes imposed for a tax year beginning on or after the effective date of this Act.

SECTION 6. This Act takes effect January 1, 2008, but only if the constitutional amendment authorizing the legislature to permit the owner of real property to require that ad valorem taxes, other than taxes imposed for public school purposes, be imposed on the real property on the basis of a five-year average of the property's taxable value is approved by the voters. If that amendment is not approved by the voters, this Act has no effect.