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A BILL TO BE ENTITLED
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AN ACT
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relating to the appraisal for ad valorem tax purposes of historic |
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property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 23, Tax Code, is amended by adding |
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Subchapter I to read as follows: |
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SUBCHAPTER I. APPRAISAL OF HISTORIC PROPERTY |
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Sec. 23.9851. DEFINITIONS. In this subchapter: |
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(1) "Historic property" means real property listed in |
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a local register of historic places created by a comprehensive |
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ordinance and certified by the secretary of the interior as |
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provided by Pub. L. No. 96-515, real property listed in the National |
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Register of Historic Places, or a structure and the land necessary |
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for acccess to and use of the structure, if the structure is |
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designated as a Recorded Texas Historic Landmark under Chapter 442, |
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Government Code, by the Texas Historical Commission. The term does |
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not include property listed in a register that is primarily for |
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objects buried below ground. |
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(2) "Rehabilitation" means the process of returning |
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property to a state of utility through repair or alteration so as to |
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make possible an efficient contemporary use of the property while |
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preserving those portions and features of the property that are |
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significant to its architectural and cultural values. |
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Sec. 23.9852. APPRAISAL OF HISTORIC PROPERTY. A person is |
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entitled to have property the person owns appraised under this |
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subchapter for purposes of taxation by a taxing unit if: |
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(1) the property is historic property; |
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(2) the property is in a class of historic property |
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determined by the governing body of the taxing unit to be eligible |
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for appraisal under this subchapter; |
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(3) within 24 months before the date the owner applied |
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for appraisal of the property under this subchapter, the owner |
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rehabilitated the property at a cost equal to at least 25 percent of |
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the appraised value of the property, excluding the appraised value |
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of the land, for the tax year preceding the year in which the owner |
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began rehabilitating the property; and |
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(4) the owner has entered into an agreement with the |
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governing body of the taxing unit as described by Section 23.9854. |
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Sec. 23.9853. APPLICATION. (a) A person claiming that the |
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person's property is eligible for appraisal under this subchapter |
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must file an application with the chief appraiser. |
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(b) To be valid, the application must: |
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(1) be on a form provided by the appraisal office and |
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prescribed by the comptroller; and |
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(2) contain the information necessary to determine the |
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validity of the claim, including evidence that the property is |
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described by Sections 23.9852(1) and (2) and that the owner of the |
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property has complied with Section 23.9852(3). |
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(c) The application form must include a statement that the |
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applicant is aware of the potential tax liability involved when the |
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property ceases to be eligible for appraisal under this subchapter. |
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(d) The application must be filed not later than October 1 |
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of the tax year preceding the first tax year for which the appraisal |
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of the property under this subchapter is sought. |
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Sec. 23.9854. FORWARDING OF APPLICATION TO TAXING UNIT; |
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AGREEMENT; ACTION ON APPLICATION. (a) Not later than the 10th day |
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after the date the application is filed, the chief appraiser shall |
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send a copy of the application to the governing body of each taxing |
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unit that taxes the property. |
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(b) The governing body of a taxing unit to which a copy of |
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the application is sent shall approve the application if: |
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(1) the property meets the criteria specified by |
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Sections 23.9852(1) and (2) and has not been altered in a way that |
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adversely affects the elements that qualify it as historically |
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significant; |
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(2) the owner of the property has complied with |
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Section 23.9852(3); and |
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(3) the owner of the property has entered into an |
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agreement with the governing body of the taxing unit that requires |
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the owner for the period for which the property is eligible to be |
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appraised under this subchapter to: |
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(A) monitor the property for its continued |
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qualification for appraisal under this subchapter; |
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(B) comply with any rehabilitation plans and |
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minimum standards of maintenance provided by the agreement; |
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(C) make the historically significant aspects of |
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the property accessible to public view at least one day a year, if |
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the property is not visible from the public right-of-way; |
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(D) obtain the taxing unit's approval of any |
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demolition or alteration; and |
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(E) comply with any other provisions of the |
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agreement as applicable. |
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(c) After an agreement under this section between an owner |
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of property and the governing body of a taxing unit takes effect, |
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the provisions of the agreement, including the provisions described |
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by Subsections (b)(3)(A)-(D), may not be changed during the period |
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in which the property is appraised under this subchapter without |
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the approval of all parties to the agreement. |
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(d) Not later than December 31 of the tax year in which the |
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chief appraiser sends an application for appraisal of property |
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under this subchapter to the governing body of a taxing unit that |
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has designated a class of historic property to be eligible for |
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appraisal under this subchapter, the governing body shall approve |
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or deny the application. |
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(e) The governing body of a taxing unit may require the |
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applicant to submit records for purposes of determining whether the |
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applicant's property qualifies for appraisal under this |
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subchapter. |
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Sec. 23.9855. NOTICE TO CHIEF APPRAISER AND APPLICANT OF |
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ACTION ON APPLICATION. (a) Not later than the 10th day after the |
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date the governing body of a taxing unit that has designated a class |
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of historic property to be eligible for appraisal under this |
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subchapter determines whether property qualifies for the |
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appraisal, the governing body shall notify the chief appraiser and |
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the applicant of the determination. |
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(b) The governing body of a taxing unit that has not |
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designated a class of historic property to be eligible for |
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appraisal under this subchapter shall promptly return to the chief |
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appraiser an application for appraisal of property under this |
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subchapter sent to the governing body and notify the chief |
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appraiser and the applicant that the governing body has not made |
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such a designation. |
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Sec. 23.9856. APPRAISAL OF PROPERTY. If the governing body |
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of a taxing unit notifies the chief appraiser that property |
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qualifies for appraisal under this subchapter, the chief appraiser |
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shall, for the first 10 tax years following the tax year in which |
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the application is approved, appraise the property for purposes of |
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taxation by the taxing unit by subtracting from the market value of |
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the property the actual cost of rehabilitating the property. |
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Sec. 23.9857. CESSATION OF QUALIFICATION FOR SPECIAL |
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APPRAISAL. (a) Property ceases to qualify for appraisal under this |
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subchapter before the date provided by Section 23.9856 if: |
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(1) the owner notifies the chief appraiser that the |
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owner does not want the property to be appraised under this |
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subchapter; |
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(2) the property is sold or otherwise transferred to |
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an owner who is entitled to an exemption of the property from |
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taxation; or |
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(3) the governing body of the taxing unit notifies the |
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chief appraiser that the property does not qualify for appraisal |
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under this subchapter because the property no longer qualifies as |
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historic property or the owner has failed to comply with the |
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conditions established under Section 23.9854. |
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(b) A transfer of ownership of the property does not |
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disqualify the property from appraisal under this subchapter if: |
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(1) the property continues to qualify as historic |
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property; and |
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(2) the new owner files a notice of compliance with the |
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chief appraiser on a form provided by the appraisal office and |
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prescribed by the comptroller. |
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(c) A notice under Subsection (b)(2) must contain a |
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statement that the new owner is aware that the property is appraised |
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under this subchapter and of the potential tax liability involved |
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when the property ceases to be appraised under this subchapter. |
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(d) If property ceases to qualify for appraisal under this |
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subchapter, the owner shall immediately notify the chief appraiser. |
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Sec. 23.9858. ADDITIONAL TAX. (a) If property that has |
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been appraised under this subchapter ceases to qualify for |
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appraisal under this subchapter before the expiration of the period |
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provided by Section 23.9856, an additional tax is imposed on the |
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property by each taxing unit for which the property was appraised |
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under this subchapter equal to the difference between the taxes |
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imposed by the taxing unit on the property for each year preceding |
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the year in which the property ceased to qualify for appraisal under |
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this subchapter and the tax that would have been imposed by the |
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taxing unit had the property been taxed on the basis of market value |
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in each of those years, plus interest at an annual rate of seven |
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percent calculated from the dates on which the differences would |
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have become due. |
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(b) A tax lien attaches to the property on the date the |
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property ceases to qualify for appraisal under this subchapter to |
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secure payment of the additional tax and interest imposed by this |
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section and any penalties incurred. The lien exists in favor of |
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each taxing unit for which the additional tax is imposed. |
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(c) The additional tax imposed by this section does not |
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apply to a year for which the tax has already been imposed. |
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(d) A determination that property has ceased to qualify for |
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appraisal under this subchapter is made by the chief appraiser. The |
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chief appraiser shall deliver a notice of the determination to the |
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owner of the property as soon as possible after making the |
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determination and shall include in the notice an explanation of the |
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owner's right to protest the determination. If the owner does not |
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file a timely protest or if the final determination of the protest |
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is that the additional taxes are due, the assessor for each taxing |
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unit for which the property was appraised under this subchapter |
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shall prepare and deliver a bill for the additional taxes plus |
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interest as soon as practicable. The taxes and interest are due and |
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become delinquent and incur penalties and interest as provided by |
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law for ad valorem taxes imposed by the taxing unit if not paid |
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before the next February 1 that is at least 20 days after the date |
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the bill is delivered to the owner of the property. |
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(e) The sanctions provided by Subsection (a) do not apply if |
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property ceases to qualify for appraisal under this subchapter as a |
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result of: |
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(1) a sale or other transfer of ownership of the |
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property to an owner who is entitled to an exemption of the property |
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from taxation; |
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(2) alteration or destruction of the property through |
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no fault of the owner; or |
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(3) a condemnation. |
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Sec. 23.9859. ASSISTANCE OF STATE HISTORIC PRESERVATION |
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OFFICER. The governing body of a taxing unit may request the |
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assistance of the state historic preservation officer in conducting |
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activities under this subchapter. |
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Sec. 23.9860. RULES. The Texas Historical Commission shall |
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adopt rules as necessary to be used by appraisal districts and |
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taxing units in implementing this subchapter. The rules must |
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include rehabilitation and maintenance standards for historic |
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properties to be used by taxing units as minimum requirements for |
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ensuring that a historic property is safe and habitable, including: |
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(1) elimination of visual blight because of past |
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neglect of maintenance and repair to the exterior of the building, |
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including replacement of broken or missing doors and windows, |
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repair of deteriorated architectural features, and painting of |
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exterior surfaces; |
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(2) correction of structural defects and hazards; |
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(3) protection from weather damage because of |
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defective roofing, flashing, glazing, caulking, or lack of heat; |
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and |
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(4) elimination of any condition on the premises that |
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could cause or augment a fire or explosion. |
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SECTION 2. Section 25.02(a), Tax Code, is amended to read as |
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follows: |
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(a) The appraisal records shall be in the form prescribed by |
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the comptroller and shall 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 appraised and market value of property |
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appraised under Subchapter I, Chapter 23; |
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(11) the tax year to which the appraisal applies; and |
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(12) [(11)] an identification of each taxing unit in |
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which the property is taxable. |
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SECTION 3. Section 25.22(a), Tax Code, is amended to read as |
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follows: |
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(a) By May 15 or as soon thereafter as practicable, the |
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chief appraiser shall submit the completed appraisal records to the |
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appraisal review board for review and determination of protests. |
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However, the chief appraiser may not submit the records until the |
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chief appraiser has delivered the notices required by Subsection |
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(d) of Section 11.45, Subsection (d) of Section 23.44, Subsection |
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(d) of Section 23.57, Subsection (d) of Section 23.79, Subsection |
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(d) of Section 23.85, Subsection (d) of Section 23.95, Subsection |
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(d) of Section 23.9805, and Section 25.19, and each taxing unit has |
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delivered the notice required by Section 23.9855. |
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SECTION 4. Section 31.01(c), Tax Code, is amended to read as |
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follows: |
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(c) The tax bill or a separate statement accompanying the |
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tax bill shall: |
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(1) identify the property subject to the tax; |
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(2) state the appraised value, assessed value, and |
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taxable value of the property; |
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(3) if the property is land appraised as provided by |
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Subchapter C, D, E, or H, Chapter 23, or is historic property |
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appraised as provided by Subchapter I, Chapter 23, state the market |
|
value and the taxable value for purposes of deferred or additional |
|
taxation as provided by Section 23.46, 23.55, 23.76, [or] 23.9807, |
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or 23.9858, as applicable; |
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(4) state the assessment ratio for the unit; |
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(5) state the type and amount of any partial exemption |
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applicable to the property, indicating whether it applies to |
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appraised or assessed value; |
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(6) state the total tax rate for the unit; |
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(7) state the amount of tax due, the due date, and the |
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delinquency date; |
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(8) explain the payment option and discounts provided |
|
by Sections 31.03 and 31.05, if available to the unit's taxpayers, |
|
and state the date on which each of the discount periods provided by |
|
Section 31.05 concludes, if the discounts are available; |
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(9) state the rates of penalty and interest imposed |
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for delinquent payment of the tax; |
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(10) include the name and telephone number of the |
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assessor for the unit and, if different, of the collector for the |
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unit; |
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(11) for real property, state for the current tax year |
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and each of the preceding five tax years: |
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(A) the appraised value and taxable value of the |
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property; |
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(B) the total tax rate for the unit; |
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(C) the amount of taxes imposed on the property |
|
by the unit; and |
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(D) the difference, expressed as a percent |
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increase or decrease, as applicable, in the amount of taxes imposed |
|
on the property by the unit compared to the amount imposed for the |
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preceding tax year; and |
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(12) for real property, state the differences, |
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expressed as a percent increase or decrease, as applicable, in the |
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following for the current tax year as compared to the fifth tax year |
|
before that tax year: |
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(A) the appraised value and taxable value of the |
|
property; |
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(B) the total tax rate for the unit; and |
|
(C) the amount of taxes imposed on the property |
|
by the unit. |
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SECTION 5. Section 41.01(a), Tax Code, is amended to read as |
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follows: |
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(a) The appraisal review board shall: |
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(1) determine protests initiated by property owners; |
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(2) determine challenges initiated by taxing units; |
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(3) correct clerical errors in the appraisal records |
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and the appraisal rolls; |
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(4) act on motions to correct appraisal rolls under |
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Section 25.25; |
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(5) determine whether an exemption or a partial |
|
exemption is improperly granted, [and] whether land is improperly |
|
granted appraisal as provided by Subchapter C, D, E, or H, Chapter |
|
23, and whether property is improperly granted appraisal as |
|
provided by Subchapter I, Chapter 23; and |
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(6) take any other action or make any other |
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determination that this title specifically authorizes or requires. |
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SECTION 6. Section 41.41(a), Tax Code, is amended to read as |
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follows: |
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(a) A property owner is entitled to protest before the |
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appraisal review board the following actions: |
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(1) determination of the appraised value of the |
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owner's property or, in the case of land appraised as provided by |
|
Subchapter C, D, E, or H, Chapter 23, or property appraised as |
|
provided by Subchapter I, Chapter 23, determination of its |
|
appraised or market value; |
|
(2) unequal appraisal of the owner's property; |
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(3) inclusion of the owner's property on the appraisal |
|
records; |
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(4) denial to the property owner in whole or in part of |
|
a partial exemption; |
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(5) determination that the owner's land does not |
|
qualify for appraisal as provided by Subchapter C, D, E, or H, |
|
Chapter 23, or that the owner's property does not qualify for |
|
appraisal as provided by Subchapter I, Chapter 23; |
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(6) identification of the taxing units in which the |
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owner's property is taxable in the case of the appraisal district's |
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appraisal roll; |
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(7) determination that the property owner is the owner |
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of property; |
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(8) a determination that a change in use of land |
|
appraised under Subchapter C, D, E, or H, Chapter 23, has occurred |
|
or that property has ceased to be eligible for appraisal under |
|
Subchapter I, Chapter 23; or |
|
(9) any other action of the chief appraiser, appraisal |
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district, or appraisal review board that applies to and adversely |
|
affects the property owner. |
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SECTION 7. Section 41.44(a), Tax Code, is amended to read as |
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follows: |
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(a) Except as provided by Subsections (b), (b-1), (c), |
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(c-1), and (c-2), to be entitled to a hearing and determination of a |
|
protest, the property owner initiating the protest must file a |
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written notice of the protest with the appraisal review board |
|
having authority to hear the matter protested: |
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(1) before May 1 or not later than the 30th day after |
|
the date that notice to the property owner was delivered to the |
|
property owner as provided by Section 25.19, if the property is a |
|
single-family residence that qualifies for an exemption under |
|
Section 11.13, whichever is later; |
|
(2) before June 1 or not later than the 30th day after |
|
the date that notice was delivered to the property owner as provided |
|
by Section 25.19 in connection with any other property, whichever |
|
is later; |
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(3) in the case of a protest of a change in the |
|
appraisal records ordered as provided by Subchapter A of this |
|
chapter or by Chapter 25, not later than the 30th day after the date |
|
notice of the change is delivered to the property owner; [or] |
|
(4) in the case of a determination that a change in the |
|
use of land appraised under Subchapter C, D, E, or H, Chapter 23, |
|
has occurred, not later than the 30th day after the date the notice |
|
of the determination is delivered to the property owner; or |
|
(5) in the case of a determination that property has |
|
ceased to be eligible for appraisal under Subchapter I, Chapter 23, |
|
not later than the 30th day after the date the notice of the |
|
determination is delivered to the property owner. |
|
SECTION 8. Section 403.302(d), Government Code, is amended |
|
to read as follows: |
|
(d) For the purposes of this section, "taxable value" means |
|
the market value of all taxable property less: |
|
(1) the total dollar amount of any residence homestead |
|
exemptions lawfully granted under Section 11.13(b) or (c), Tax |
|
Code, in the year that is the subject of the study for each school |
|
district; |
|
(2) one-half of the total dollar amount of any |
|
residence homestead exemptions granted under Section 11.13(n), Tax |
|
Code, in the year that is the subject of the study for each school |
|
district; |
|
(3) the total dollar amount of any exemptions granted |
|
before May 31, 1993, within a reinvestment zone under agreements |
|
authorized by Chapter 312, Tax Code; |
|
(4) subject to Subsection (e), the total dollar amount |
|
of any captured appraised value of property that: |
|
(A) is within a reinvestment zone created on or |
|
before May 31, 1999, or is proposed to be included within the |
|
boundaries of a reinvestment zone as the boundaries of the zone and |
|
the proposed portion of tax increment paid into the tax increment |
|
fund by a school district are described in a written notification |
|
provided by the municipality or the board of directors of the zone |
|
to the governing bodies of the other taxing units in the manner |
|
provided by Section 311.003(e), Tax Code, before May 31, 1999, and |
|
within the boundaries of the zone as those boundaries existed on |
|
September 1, 1999, including subsequent improvements to the |
|
property regardless of when made; |
|
(B) generates taxes paid into a tax increment |
|
fund created under Chapter 311, Tax Code, under a reinvestment zone |
|
financing plan approved under Section 311.011(d), Tax Code, on or |
|
before September 1, 1999; and |
|
(C) is eligible for tax increment financing under |
|
Chapter 311, Tax Code; |
|
(5) for a school district for which a deduction from |
|
taxable value is made under Subdivision (4), an amount equal to the |
|
taxable value required to generate revenue when taxed at the school |
|
district's current tax rate in an amount that, when added to the |
|
taxes of the district paid into a tax increment fund as described by |
|
Subdivision (4)(B), is equal to the total amount of taxes the |
|
district would have paid into the tax increment fund if the district |
|
levied taxes at the rate the district levied in 2005; |
|
(6) the total dollar amount of any captured appraised |
|
value of property that: |
|
(A) is within a reinvestment zone: |
|
(i) created on or before December 31, 2008, |
|
by a municipality with a population of less than 18,000; and |
|
(ii) the project plan for which includes |
|
the alteration, remodeling, repair, or reconstruction of a |
|
structure that is included on the National Register of Historic |
|
Places and requires that a portion of the tax increment of the zone |
|
be used for the improvement or construction of related facilities |
|
or for affordable housing; |
|
(B) generates school district taxes that are paid |
|
into a tax increment fund created under Chapter 311, Tax Code; and |
|
(C) is eligible for tax increment financing under |
|
Chapter 311, Tax Code; |
|
(7) the total dollar amount of any exemptions granted |
|
under Section 11.251 or 11.253, Tax Code; |
|
(8) the difference between the comptroller's estimate |
|
of the market value and the productivity value of land that |
|
qualifies for appraisal on the basis of its productive capacity, |
|
except that the productivity value estimated by the comptroller may |
|
not exceed the fair market value of the land; |
|
(9) the portion of the appraised value of residence |
|
homesteads of individuals who receive a tax limitation under |
|
Section 11.26, Tax Code, on which school district taxes are not |
|
imposed in the year that is the subject of the study, calculated as |
|
if the residence homesteads were appraised at the full value |
|
required by law; |
|
(10) a portion of the market value of property not |
|
otherwise fully taxable by the district at market value because of: |
|
(A) action required by statute or the |
|
constitution of this state that, if the tax rate adopted by the |
|
district is applied to it, produces an amount equal to the |
|
difference between the tax that the district would have imposed on |
|
the property if the property were fully taxable at market value and |
|
the tax that the district is actually authorized to impose on the |
|
property, if this subsection does not otherwise require that |
|
portion to be deducted; or |
|
(B) action taken by the district under Subchapter |
|
B or C, Chapter 313, Tax Code; |
|
(11) the market value of all tangible personal |
|
property, other than manufactured homes, owned by a family or |
|
individual and not held or used for the production of income; |
|
(12) the appraised value of property the collection of |
|
delinquent taxes on which is deferred under Section 33.06, Tax |
|
Code; |
|
(13) the portion of the appraised value of property |
|
the collection of delinquent taxes on which is deferred under |
|
Section 33.065, Tax Code; [and] |
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(14) the amount by which the market value of a |
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residence homestead to which Section 23.23, Tax Code, applies |
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exceeds the appraised value of that property as calculated under |
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that section; and |
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(15) the amount by which the market value of property |
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appraised under Subchapter I, Chapter 23, Tax Code, exceeds the |
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appraised value of that property as calculated under that |
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subchapter. |
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SECTION 9. 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 10. This Act takes effect January 1, 2010. |