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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of an owner of real property to require |
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that ad valorem taxes, other than taxes imposed for public school |
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purposes, be imposed on that real property on the basis of a |
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five-year average of the property's taxable value. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 25.19, Tax Code, is amended by adding |
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Subsection (b-2) to read as follows: |
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(b-2) In addition to the information required by |
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Subsections (b), (b-1), and (f), the chief appraiser shall include |
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in a notice required to be delivered under Subsection (a) or (g) for |
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real property: |
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(1) the taxable value of the property in each of the |
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four years preceding the current tax year; |
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(2) the average taxable value of the property over the |
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five-year period ending with the current tax year; and |
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(3) a statement that the property owner may elect to |
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require taxes, other than taxes imposed by a school district, for |
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the current tax year and the next nine tax years to be imposed on the |
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property on the basis of the five-year average taxable value in each |
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year instead of on the basis of the taxable value for that year by |
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filing a request with the assessor for each taxing unit that taxes |
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the property, including an explanation of the deadline for filing |
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the request. |
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SECTION 2. Section 26.09(c), Tax Code, is amended to read as |
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follows: |
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(c) Except as provided by Section 26.095, the [The] tax is |
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calculated by: |
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(1) subtracting from the appraised value of a property |
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as shown on the appraisal roll for the unit the amount of any |
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partial exemption allowed the property owner that applies to |
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appraised value to determine net appraised value; |
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(2) multiplying the net appraised value by the |
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assessment ratio to determine assessed value; |
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(3) subtracting from the assessed value the amount of |
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any partial exemption allowed the property owner to determine |
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taxable value; and |
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(4) multiplying the taxable value by the tax rate. |
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SECTION 3. Chapter 26, Tax Code, is amended by adding |
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Section 26.095 to read as follows: |
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Sec. 26.095. ALTERNATIVE METHOD FOR CALCULATION OF TAX ON |
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REAL PROPERTY. (a) An owner of real property may require that |
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taxes, other than taxes imposed by a school district, imposed on |
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that property for the current tax year and each of the subsequent |
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nine tax years be calculated on the basis of the average taxable |
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value of the property over the five-year period ending with the tax |
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year for which the taxes are imposed. |
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(b) To require that taxes imposed by a taxing unit be |
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calculated under this section, the owner of the property must file a |
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request with the assessor for the taxing unit. The request must |
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include a statement by the property owner requesting that, for the |
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current tax year and each of the subsequent nine tax years, the |
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taxes imposed by the taxing unit on the property described in the |
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request be calculated under the method described by Subsection (a), |
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subject to Subsections (d)-(g). The comptroller by rule shall |
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prescribe the form of the request. |
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(c) A completed request must be filed not later than the |
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later of June 15 or, if the notice is required to be delivered to the |
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property owner, the 21st day after the date the property owner |
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receives notice of the appraised value of the real property for the |
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current tax year. If a property owner timely files a completed |
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request with the assessor for a taxing unit, the taxes of that |
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taxing unit for the current tax year on the real property described |
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in the request shall be calculated under the method described by |
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Subsection (a). If a property owner fails to timely file a |
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completed request, the taxes of a taxing unit may not be calculated |
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under the method described by Subsection (a) unless in a prior tax |
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year the property owner requested the taxes imposed by the taxing |
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unit on the property to be calculated under that method in the |
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current tax year as one of the subsequent nine years covered by the |
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request made in the prior tax year. |
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(d) Notwithstanding Subsections (a) and (b), the owner of |
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real property who has previously requested that taxes imposed by a |
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taxing unit on the property be calculated under the method |
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described by Subsection (a) may revoke the owner's request for |
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taxation of that property under that method in the current tax year. |
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A revocation under this subsection must be made in writing and filed |
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with the assessor for the taxing unit not later than the later of |
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June 15 or, if the notice is required to be delivered to the |
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property owner, the 21st day after the date the property owner |
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receives notice of the appraised value of the real property for the |
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current tax year. |
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(e) If a property owner timely revokes the owner's request |
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that taxes imposed by a taxing unit be calculated under this |
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section: |
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(1) the taxes of that taxing unit for the current tax |
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year on the owner's real property may not be calculated under the |
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method described by Subsection (a); |
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(2) an additional tax is imposed on the real property |
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equal to the positive difference, if any, between the taxes imposed |
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on the property for each of the 10 preceding tax years, if any, in |
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which taxes imposed by the taxing unit on the property were |
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calculated under the method described by Subsection (a) and the |
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taxes that would have been imposed had those taxes on the property |
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in each of those tax years not been calculated under that method; |
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and |
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(3) as soon as practicable, the assessor for the |
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taxing unit shall prepare and deliver a bill to the property owner |
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for the additional taxes plus interest at an annual rate of seven |
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percent calculated from the dates on which the differences in taxes |
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would have become due. |
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(f) The additional tax and interest are due and become |
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delinquent if not paid before the next February 1 that is at least |
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20 days after the date the bill is delivered to the property owner. |
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A tax lien attaches to the real property to secure payment of the |
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additional tax and interest imposed by Subsection (e). The lien |
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exists in favor of each taxing unit for which the additional tax is |
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imposed. |
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(g) If property on which taxes are calculated under the |
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method provided by Subsection (a) ceases to be owned by the property |
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owner who filed the request under Subsection (b) or by a subsequent |
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owner, the taxes on the property shall continue to be calculated |
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under that method for each of the tax years covered by the request |
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of the prior owner unless the new owner of the property requests |
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that the taxes on the property not be calculated under Subsection |
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(a). A request under this subsection must be filed in the time and |
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manner required for a revocation under Subsection (d). If the new |
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owner timely files a request under this subsection: |
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(1) the taxes for the current tax year on the property |
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may not be calculated under the method described by Subsection (a); |
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and |
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(2) the property is subject to the additional tax and |
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lien provided by Subsections (e) and (f). |
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(h) This subsection expires January 1, 2010. |
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Notwithstanding the reference in Subsection (a) to a five-year |
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period: |
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(1) for the 2008 tax year, the taxes calculated under |
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the method provided by Subsection (a) shall be calculated on the |
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basis of the average taxable value of the property over the |
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three-year period ending with the tax year for which the taxes are |
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imposed; and |
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(2) for the 2009 tax year, the taxes calculated under |
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the method provided by Subsection (a) shall be calculated on the |
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basis of the average taxable value of the property over the |
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four-year period ending with the tax year for which the taxes are |
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imposed. |
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SECTION 4. Section 31.01, Tax Code, is amended by adding |
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Subsection (c-2) to read as follows: |
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(c-2) In addition to the information required by |
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Subsections (c) and (c-1), the assessor shall include in the tax |
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bill or separate statement for real property the taxable value of |
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the property in each of the four years before the current tax year |
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and the average taxable value of the property over the five-year |
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period ending with the current tax year. |
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SECTION 5. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 6. This Act takes effect January 1, 2008, but only |
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if the constitutional amendment authorizing the legislature to |
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permit the owner of real property to require that ad valorem taxes, |
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other than taxes imposed for public school purposes, be imposed on |
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the real property on the basis of a five-year average of the |
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property's taxable value is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |