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AN ACT
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relating to the requirement to prepay ad valorem taxes as a |
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prerequisite to determining certain motions or protests and the |
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authority of an appraisal review board to determine compliance with |
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the requirement. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 25.25(e) and (g), Tax Code, are amended |
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to read as follows: |
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(e) If the chief appraiser and the property owner do not |
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agree to the correction before the 15th day after the date the |
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motion is filed, a party bringing a motion under Subsection (c) or |
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(d) is entitled on request to a hearing on and a determination of |
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the motion by the appraisal review board. A party bringing a motion |
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under this section must describe the error or errors that the motion |
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is seeking to correct. Not later than 15 days before the date of the |
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hearing, the board shall deliver written notice of the date, time, |
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and place of the hearing to the chief appraiser, the property owner, |
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and the presiding officer of the governing body of each taxing unit |
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in which the property is located. The chief appraiser, the property |
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owner, and each taxing unit are entitled to present evidence and |
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argument at the hearing and to receive written notice of the board's |
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determination of the motion. A property owner who files the motion |
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must comply with the payment requirements of Section 25.26 [42.08] |
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or forfeit the right to a final determination of the motion. |
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(g) Within 45 days after receiving notice of the appraisal |
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review board's determination of a motion under this section or of a |
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determination of the appraisal review board that the property owner |
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has forfeited the right to a final determination of a motion under |
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this section for failing to comply with the prepayment requirements |
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of Section 25.26, the property owner or the chief appraiser may file |
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suit to compel the board to order a change in the appraisal roll as |
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required by this section. |
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SECTION 2. Chapter 25, Tax Code, is amended by adding |
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Section 25.26 to read as follows: |
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Sec. 25.26. FORFEITURE OF REMEDY FOR NONPAYMENT OF TAXES. |
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(a) The pendency of a motion filed under Section 25.25 does not |
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affect the delinquency date for the taxes on the property that is |
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the subject of the motion. However, that delinquency date applies |
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only to the amount of taxes required to be paid under Subsection |
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(b). If the property owner complies with Subsection (b), the |
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delinquency date for any additional amount of taxes due on the |
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property is determined in the manner provided by Section 42.42(c) |
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for the determination of the delinquency date for additional taxes |
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finally determined to be due in an appeal under Chapter 42, and that |
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additional amount is not delinquent before that date. |
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(b) Except as provided by Subsection (d), a property owner |
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who files a motion under Section 25.25 must pay the amount of taxes |
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due on the portion of the taxable value of the property that is the |
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subject of the motion that is not in dispute before the delinquency |
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date or the property owner forfeits the right to proceed to a final |
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determination of the motion. |
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(c) A property owner who pays an amount of taxes greater |
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than that required by Subsection (b) does not forfeit the property |
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owner's right to a final determination of the motion by making the |
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payment. If the property owner files a timely motion under Section |
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25.25, taxes paid on the property are considered paid under |
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protest, even if paid before the motion is filed. |
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(d) After filing an oath of inability to pay the taxes at |
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issue, a property owner may be excused from the requirement of |
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prepayment of tax as a prerequisite to the determination of a motion |
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if the appraisal review board, after notice and hearing, finds that |
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such prepayment would constitute an unreasonable restraint on the |
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property owner's right of access to the board. On the motion of a |
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party, the board shall determine compliance with this section in |
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the same manner and by the same procedure as provided by Section |
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41.4115(d) and may set such terms and conditions on any grant of |
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relief as may be reasonably required by the circumstances. |
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SECTION 3. Section 41.411(c), Tax Code, is amended to read |
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as follows: |
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(c) A property owner who protests as provided by this |
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section must comply with the payment requirements of Section |
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41.4115 [42.08] or the property owner forfeits the property owner's |
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right to a final determination of the protest. [The delinquency
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date for purposes of Section 42.08(b) for the taxes on the property
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subject to a protest under this section is postponed to the 125th
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day after the date that one or more taxing units first delivered
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written notice of the taxes due on the property, as determined by
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the appraisal review board at a hearing under Section 41.44(c-3).] |
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SECTION 4. Subchapter C, Chapter 41, Tax Code, is amended by |
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adding Section 41.4115 to read as follows: |
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Sec. 41.4115. FORFEITURE OF REMEDY FOR NONPAYMENT OF TAXES. |
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(a) The pendency of a protest under Section 41.411 does not affect |
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the delinquency date for the taxes on the property subject to the |
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protest. However, that delinquency date applies only to the amount |
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of taxes required to be paid under Subsection (b) and, for purposes |
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of Subsection (b), that delinquency date is postponed to the 125th |
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day after the date one or more taxing units first delivered written |
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notice of the taxes due on the property, as determined by the |
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appraisal review board at a hearing under Section 41.44(c-3). If |
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the property owner complies with Subsection (b), the delinquency |
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date for any additional amount of taxes due on the property is |
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determined in the manner provided by Section 42.42(c) for the |
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determination of the delinquency date for additional taxes finally |
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determined to be due in an appeal under Chapter 42, and that |
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additional amount is not delinquent before that date. |
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(b) Except as provided in Subsection (d), a property owner |
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who files a protest under Section 41.411 must pay the amount of |
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taxes due on the portion of the taxable value of the property |
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subject to the protest that is not in dispute before the delinquency |
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date or the property owner forfeits the right to proceed to a final |
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determination of the protest. |
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(c) A property owner who pays an amount of taxes greater |
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than that required by Subsection (b) does not forfeit the property |
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owner's right to a final determination of the protest by making the |
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payment. If the property owner files a timely protest under Section |
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41.411, taxes paid on the property are considered paid under |
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protest, even if paid before the protest is filed. |
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(d) After filing an oath of inability to pay the taxes at |
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issue, a property owner may be excused from the requirement of |
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prepayment of tax as a prerequisite to the determination of a |
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protest if the appraisal review board, after notice and hearing, |
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finds that such prepayment would constitute an unreasonable |
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restraint on the property owner's right of access to the board. On |
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the motion of a party, the board shall hold a hearing to review and |
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determine compliance with this section, and the reviewing board may |
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set such terms and conditions on any grant of relief as may be |
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reasonably required by the circumstances. If the board determines |
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that the property owner has not substantially complied with this |
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section, the board shall dismiss the pending protest. If the board |
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determines that the property owner has substantially but not fully |
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complied with this section, the board shall dismiss the pending |
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protest unless the property owner fully complies with the board's |
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determination within 30 days of the determination. |
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SECTION 5. Section 42.01, Tax Code, is amended to read as |
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follows: |
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Sec. 42.01. RIGHT OF APPEAL BY PROPERTY OWNER. (a) A |
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property owner is entitled to appeal: |
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(1) an order of the appraisal review board |
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determining: |
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(A) a protest by the property owner as provided |
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by Subchapter C of Chapter 41; [or] |
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(B) a determination of an appraisal review board |
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on a motion filed under Section 25.25; or |
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(C) a determination of an appraisal review board |
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that the property owner has forfeited the right to a final |
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determination of a motion filed under Section 25.25 or of a protest |
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under Section 41.411 for failing to comply with the prepayment |
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requirements of Section 25.26 or 41.4115, as applicable; or |
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(2) an order of the comptroller issued as provided by |
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Subchapter B, Chapter 24, apportioning among the counties the |
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appraised value of railroad rolling stock owned by the property |
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owner. |
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(b) A property owner who establishes that the owner did not |
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forfeit the right to a final determination of a motion or of a |
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protest in an appeal under Subsection (a)(1)(C) is entitled to a |
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final determination of the court, as applicable: |
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(1) of the motion filed under Section 25.25; or |
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(2) of the protest under Section 41.411 of the failure |
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of the chief appraiser or appraisal review board to provide or |
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deliver a notice to which the property owner is entitled, and, if |
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failure to provide or deliver the notice is established, of a |
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protest made by the property owner on any other grounds of protest |
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authorized by this title relating to the property to which the |
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notice applies. |
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SECTION 6. The changes in law made by this Act apply only to |
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a motion to correct an appraisal roll or a protest filed on or after |
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the effective date of this Act. A motion to correct an appraisal |
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roll or a protest filed before the effective date of this Act is |
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governed by the law in effect on the date the motion or protest was |
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filed, and the former law is continued in effect for that purpose. |
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SECTION 7. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2220 was passed by the House on May 5, |
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2011, by the following vote: Yeas 142, Nays 4, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2220 was passed by the Senate on May |
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25, 2011, by the following vote: Yeas 31, Nays 0 |
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. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |