84R8262 CJC-D
 
  By: Raymond H.B. No. 1464
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the procedure for determining that certain land is no
  longer eligible for appraisal for ad valorem tax purposes as
  agricultural or open-space land.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1.07(d), Tax Code, is amended to read as
  follows:
         (d)  A notice required by Section 11.45(d), 23.44(d),
  23.46(c) or (f), 23.54(e), 23.541(c), 23.55(e), 23.551(a),
  23.57(d), 23.76(e), 23.79(d), or 23.85(d) must be sent by certified
  mail.
         SECTION 2.  Section 23.43(d), Tax Code, is amended to read as
  follows:
         (d)  The comptroller in prescribing the contents of the
  application forms shall ensure that each form requires a claimant
  to furnish the information necessary to determine the validity of
  the claim. The comptroller shall require that the form permit a
  claimant who has previously been allowed an agricultural
  designation to indicate that previously reported information has
  not changed and to supply only the eligibility information not
  previously reported. The form must include a space for the claimant
  to state the claimant's date of birth. Failure to provide the date
  of birth does not affect a claimant's right to an agricultural
  designation under this subchapter.
         SECTION 3.  Section 23.46, Tax Code, is amended by amending
  Subsection (c) and adding Subsection (f) to read as follows:
         (c)  If land that has been designated for agricultural use in
  any year is sold or diverted to a nonagricultural use, the total
  amount of additional taxes for the three years preceding the year in
  which the land is sold or diverted plus interest at the rate
  provided for delinquent taxes becomes due. Subject to Subsection
  (f), a [A] determination that the land has been diverted to a
  nonagricultural use is made by the chief appraiser. For purposes of
  this subsection, the chief appraiser may not consider any period
  during which land is owned by the state in determining whether the
  land has been diverted to a nonagricultural use. The chief
  appraiser shall deliver a notice of the determination to the owner
  of the land as soon as possible after making the determination and
  shall include in the notice an explanation of the owner's right to
  protest the determination. If the owner does not file a timely
  protest or if the final determination of the protest is that the
  additional taxes are due, the assessor for each taxing unit shall
  prepare and deliver a bill for the additional taxes plus interest as
  soon as practicable after the change of use occurs. If the
  additional taxes are due because of a sale of the land, the assessor
  for each taxing unit shall prepare and deliver the bill as soon as
  practicable after the sale occurs. The taxes and interest are due
  and become delinquent and incur penalties and interest as provided
  by law for ad valorem taxes imposed by the taxing unit if not paid
  before the next February 1 that is at least 20 days after the date
  the bill is delivered to the owner of the land.
         (f)  If land designated for agricultural use under this
  subchapter is owned by an individual 65 years of age or older,
  before making a determination that the land has been diverted to a
  nonagricultural use, the chief appraiser shall deliver a written
  notice to the owner stating that the chief appraiser believes the
  land may have been diverted to a nonagricultural use. The notice
  must include a form on which the owner may indicate that the owner
  remains entitled to have the land designated for agricultural use
  and a self-addressed postage prepaid envelope with instructions for
  returning the form to the chief appraiser. The chief appraiser
  shall consider the owner's response on the form in determining
  whether the land has been diverted to a nonagricultural use. If the
  chief appraiser does not receive a response on or before the 60th
  day after the date the notice is mailed, the chief appraiser must
  make a reasonable effort to locate the owner and determine whether
  the owner remains entitled to have the land designated for
  agricultural use before determining that the land has been diverted
  to a nonagricultural use. The comptroller by rule shall adopt
  standards for determining what constitutes a reasonable effort on
  the part of a chief appraiser for purposes of this subsection and
  distribute those rules to each appraisal district.
         SECTION 4.  Sections 23.54(c) and (e), Tax Code, are amended
  to read as follows:
         (c)  The comptroller shall include on the form a notice of
  the penalties prescribed by Section 37.10, Penal Code, for making
  or filing an application containing a false statement. The
  comptroller, in prescribing the contents of the application form,
  shall require that the form permit a claimant who has previously
  been allowed appraisal under this subchapter to indicate that
  previously reported information has not changed and to supply only
  the eligibility information not previously reported. The form must
  include a space for the claimant to state the claimant's date of
  birth. Failure to provide the date of birth does not affect a
  claimant's eligibility to have the claimant's land appraised under
  this subchapter.
         (e)  If a person fails to file a valid application on time,
  the land is ineligible for appraisal as provided by this subchapter
  for that year. Once an application is filed and appraisal under
  this subchapter is allowed, the land is eligible for appraisal
  under this subchapter in subsequent years without a new application
  unless the ownership of the land changes or its eligibility under
  this subchapter ends. However, subject to Section 23.551, if the
  chief appraiser [if he] has good cause to believe that land is no
  longer eligible for appraisal [the land's eligibility] under this
  subchapter [has ended], the chief appraiser may require a person
  allowed appraisal under this subchapter in a prior year to file a
  new application to confirm that the land is currently eligible for
  appraisal under this subchapter by delivering a written notice that
  a new application is required, accompanied by the application form,
  to the person who filed the application that was previously
  allowed.
         SECTION 5.  Section 23.55(e), Tax Code, is amended to read as
  follows:
         (e)  Subject to Section 23.551, a [A] determination that a
  change in use of the land has occurred is made by the chief
  appraiser. The chief appraiser shall deliver a notice of the
  determination to the owner of the land as soon as possible after
  making the determination and shall include in the notice an
  explanation of the owner's right to protest the determination. If
  the owner does not file a timely protest or if the final
  determination of the protest is that the additional taxes are due,
  the assessor for each taxing unit shall prepare and deliver a bill
  for the additional taxes plus interest as soon as practicable. The
  taxes and interest are due and become delinquent and incur
  penalties and interest as provided by law for ad valorem taxes
  imposed by the taxing unit if not paid before the next February 1
  that is at least 20 days after the date the bill is delivered to the
  owner of the land.
         SECTION 6.  Subchapter D, Chapter 23, Tax Code, is amended by
  adding Section 23.551 to read as follows:
         Sec. 23.551.  ADDITIONAL NOTICE TO CERTAIN LANDOWNERS. (a)
  If land appraised as provided by this subchapter is owned by an
  individual 65 years of age or older, before making a determination
  that a change in use of the land has occurred, the chief appraiser
  shall deliver a written notice to the owner stating that the chief
  appraiser believes a change in use of the land may have occurred.
         (b)  The notice must include a form on which the owner may
  indicate that the land remains eligible to be appraised as provided
  by this subchapter and a self-addressed postage prepaid envelope
  with instructions for returning the form to the chief appraiser.
         (c)  The chief appraiser shall consider the owner's response
  on the form in determining whether the land remains eligible for
  appraisal under this subchapter.
         (d)  If the chief appraiser does not receive a response on or
  before the 60th day after the date the notice is mailed, the chief
  appraiser must make a reasonable effort to locate the owner and
  determine whether the land remains eligible to be appraised as
  provided by this subchapter before determining that a change in use
  of the land has occurred.
         (e)  The comptroller by rule shall adopt standards for
  determining what constitutes a reasonable effort on the part of a
  chief appraiser for purposes of this section and distribute those
  rules to each appraisal district.
         SECTION 7.  Section 521.049(d), Transportation Code, is
  amended to read as follows:
         (d)  To assist chief appraisers in determining the
  eligibility of individuals for residence homestead exemptions from
  ad valorem taxation under Section 11.13, Tax Code, and the
  applicability to certain individuals of additional notice
  provisions under Subchapters C and D, Chapter 23, Tax Code, the
  department shall provide, without charge, to the chief appraiser of
  each appraisal district in this state:
               (1)  a copy of each driver's license record or personal
  identification certificate record held by the department; or
               (2)  information relating to the name, date of birth,
  driver's license or personal identification certificate number,
  and most recent address as shown in the records of individuals
  included in the department's driver's license or personal
  identification certificate records.
         SECTION 8.  The change in law made by this Act applies only
  to a determination by a chief appraiser that an individual 65 years
  of age or older is no longer eligible to have land appraised as
  provided by Subchapter C or D, Chapter 23, Tax Code, that is made on
  or after the effective date of this Act. A determination by a chief
  appraiser that an individual 65 years of age or older is no longer
  eligible to have land appraised as provided by Subchapter C or D,
  Chapter 23, Tax Code, that is made before the effective date of this
  Act is governed by the law in effect at the time the determination
  was made, and that law is continued in effect for that purpose.
         SECTION 9.  This Act takes effect September 1, 2015.