|
INTRODUCED
|
HOUSE COMMITTEE
SUBSTITUTE
|
|
SECTION 1. Chapter 5, Tax
Code, is amended by designating Sections 5.03, 5.04, 5.041, 5.042, 5.05,
5.06, 5.07, 5.08, 5.09, 5.091, 5.10, 5.102, 5.103, 5.12, 5.13, 5.14, and
5.16 as Subchapter A and adding a subchapter heading to read as follows:
SUBCHAPTER A. COMPTROLLER
OF PUBLIC ACCOUNTS
|
No
equivalent provision.
|
|
SECTION 2. Section 5.041, Tax
Code, is amended by amending Subsections (a), (d), and (e-1) and adding
Subsection (i) to read as follows:
(a) The comptroller shall:
(1) in consultation with
property owners, individuals engaged in the business of representing
property owners in proceedings under this title, and chief appraisers,
approve curricula and provide materials for use in training and educating
members of an appraisal review board;
(2) supervise a comprehensive
course for training and education of appraisal review board members and
issue certificates indicating course completion;
(3) make all materials for
use in training and educating members of an appraisal review board freely
available online;
(4) establish and maintain a
toll-free telephone number that appraisal review board members may call for
answers to technical questions relating to the duties and responsibilities
of appraisal review board members and property appraisal issues; and
(5) provide, as feasible,
online technological assistance to improve the operations of appraisal
review boards and appraisal districts.
(d) The written course
material for the course required under Subsection (a) is the comptroller's
Appraisal Review Board Manual [in use on the effective date of this
section]. The manual shall be updated regularly. It may be revised on
request, in writing, to the comptroller. The revision language must be
approved on the unanimous agreement of a committee selected by the
comptroller and representing, equally, property owners, individuals
engaged in the business of representing property owners in proceedings
under this title, [taxpayers] and chief appraisers. The person
requesting the revision shall pay the costs of mediation if the comptroller
determines that mediation is required.
(e-1) In addition to the
course established under Subsection (a), the comptroller, in
consultation with property owners, individuals engaged in the business of
representing property owners in proceedings under this title, and chief
appraisers, shall approve curricula and provide materials for use in a
continuing education course for members of an appraisal review board. The
curricula and materials must include information regarding:
(1) the cost, income, and
market data comparison methods of appraising property;
(2) the appraisal of business
personal property;
(3) the determination of
capitalization rates for property appraisal purposes;
(4) the duties of an
appraisal review board;
(5) the requirements
regarding the independence of an appraisal review board from the board of
directors and the chief appraiser and other employees of the appraisal
district;
(6) the prohibitions against
ex parte communications applicable to appraisal review board members;
(7) the Uniform Standards of
Professional Appraisal Practice;
(8) the duty of the appraisal
district to substantiate the district's determination of the value of
property;
(9) the requirements
regarding the equal and uniform appraisal of property;
(10) the right of a property
owner to protest the appraisal of the property as provided by Chapter 41;
and
(11) a detailed explanation
of each of the actions described by Sections 25.25, 41.41(a), 41.411,
41.412, 41.413, 41.42, and 41.43 so that members are fully aware of each of
the grounds on which a property appraisal can be appealed.
(i) Notwithstanding
Subsections (c) and (e-3), the comptroller shall ensure that a course
required by this section includes at least one component in which property
owners, individuals engaged in the business of representing property owners
in proceedings under this title, and chief appraisers or other
representatives of an appraisal district or appraisal review board are
allowed to participate.
|
No
equivalent provision.
|
|
SECTION 3. Section 5.05, Tax
Code, is amended.
|
SECTION 1. Same as introduced
version.
|
|
SECTION 4. Chapter 5, Tax
Code, is amended by adding Subchapter B to read as follows:
SUBCHAPTER B. OFFICE OF
LOCAL PROPERTY TAX OMBUDSMAN
Sec. 5.051. DEFINITIONS.
In this subchapter:
(1) "Complaint"
means a complaint filed under Section 5.056.
(2) "Office"
means the Office of Local Property Tax Ombudsman.
(3) "Ombudsman"
means the local property tax ombudsman appointed under this subchapter.
Sec. 5.052. ESTABLISHMENT
OF OFFICE. The Office of Local Property Tax Ombudsman is established in the
office of the comptroller to resolve complaints involving alleged
violations of procedural requirements imposed by law, by comptroller rule,
or by the rules of procedure established by an appraisal review board
regarding the activities of an appraisal district, appraisal review board,
chief appraiser, or appraisal review board member under this title.
Sec. 5.053. SUNSET
PROVISION. The office is subject to Chapter 325, Government Code (Texas
Sunset Act). Unless continued in existence as provided by that chapter, the
office is abolished and this subchapter expires on September 1, 2021.
Sec. 5.054. LOCAL PROPERTY
TAX OMBUDSMAN. (a) The office is headed by the local property tax
ombudsman.
(b) The ombudsman is
appointed by the comptroller with the advice of the governor, lieutenant
governor, and speaker of the house of representatives.
(c) Appointment of the
ombudsman shall be made without regard to the race, color, disability, sex,
religion, age, or national origin of the appointee.
(d) The ombudsman serves a
two-year term beginning on February 1 of each even-numbered year.
(e) To be eligible for appointment
as the ombudsman, an individual must:
(1) be licensed to
practice law in this state;
(2) have demonstrated a
strong commitment to and involvement in efforts to safeguard the rights of
the public; and
(3) possess the knowledge
and experience necessary to practice effectively in property tax
proceedings.
(f) An individual is not
eligible for appointment as the ombudsman if the individual or the
individual's spouse:
(1) is employed by or
participates in the management of a business entity or other organization
the employees of which are regulated by the comptroller;
(2) is employed by an
appraisal district or taxing unit; or
(3) has during the
preceding five-year period been a member or employee of a law firm that
rendered legal services to an appraisal district, appraisal review board,
or taxing unit.
Sec. 5.055. STAFF AND
OFFICES. (a) The comptroller shall provide the ombudsman with sufficient
funds to employ the professional and administrative staff necessary for the
efficient operation of the office.
(b) The comptroller shall
provide the ombudsman with sufficient office space, equipment, and supplies
necessary for the efficient operation of the office.
Sec. 5.056. FILING OF
COMPLAINT. (a) A property owner may file a written complaint with the office
alleging that an appraisal district, appraisal review board, chief
appraiser, or appraisal review board member has failed to comply with a
procedural requirement imposed by law, by comptroller rule, or by the rules
of procedure established by an appraisal review board regarding the
activities of an appraisal district, appraisal review board, chief
appraiser, or appraisal review board member under this title.
(b) A complaint filed
under this section may allege the violation of any procedural requirement
described by Subsection (a), including a complaint involving:
(1) the application of
hearing procedures;
(2) the provision of a
required notice;
(3) the scheduling of a
hearing;
(4) the postponement of a
hearing;
(5) the evidence presented
at a hearing;
(6) the issuance of a
subpoena;
(7) conflicts of interest;
(8) the selection of
appraisal review board members;
(9) the assignment of
protests to a panel of an appraisal review board;
(10) the occurrence of an
ex parte communication; and
(11) any other matter affecting
a procedural matter or right under this title.
(c) A complaint may not
address a substantive issue or the merits of a motion filed under Section
25.25 or a protest filed under Chapter 41.
(d) The filing of a
complaint or assertion that a complaint will be filed is not a ground to
postpone a hearing before an appraisal review board.
Sec. 5.057. NOTICE OF
COMPLAINT. (a) Not later than the 15th day after the date a complaint is
filed, the office must notify the chief appraiser of the appraisal district
from which the complaint was filed.
(b) The notice must be in
writing, include a copy of the complaint, and be sent by certified mail,
return receipt requested.
Sec. 5.058. RESOLUTION OF
COMPLAINT. (a) The ombudsman may resolve a complaint through an alternative
dispute resolution process agreed to by the parties, including through
mediation or binding arbitration.
(b) The office may
investigate a complaint and gather information and documents necessary to
resolve a complaint.
(c) The office shall
encourage the parties to a complaint to agree to a resolution of the
complaint.
(d) The office may resolve
a complaint without a hearing.
Sec. 5.059. OMBUDSMAN
RULING. (a) The ombudsman shall issue a ruling resolving a complaint.
(b) A ruling by the
ombudsman must be in writing and may provide for any appropriate remedy,
including:
(1) dismissal of the
complaint; and
(2) a public reprimand of
an appraisal district, appraisal review board, chief appraiser, appraisal
review board member, or other person.
(c) Not later than the
third day after the date the ombudsman issues the ruling under this
section, the ombudsman shall send notice of the ruling and a copy of the
ruling to each party to the complaint by certified mail, return receipt
requested.
Sec. 5.060. APPEAL. (a) Except
as provided by Subsection (b), a party to a complaint resolved by the
ombudsman under this subchapter may appeal the ruling of the ombudsman to
district court.
(b) A party to a complaint
resolved under this subchapter through binding arbitration may not appeal
the ruling.
(c) The appeal must be
filed not later than the 60th day after the date the ombudsman sends notice
of the ruling to the parties to the complaint under Section 5.059.
(d) Review by district
court shall be de novo.
Sec. 5.061. COMPTROLLER
RULES. The comptroller shall adopt rules necessary to implement this
subchapter, including rules requiring and establishing filing and
administrative fees necessary to defray the costs to administer this
subchapter.
|
No
equivalent provision.
|
|
SECTION 5. Section 6.41, Tax
Code, is amended by amending Subsections (b), (d-1), and (d-9) and adding
Subsections (b-1), (b-2), and (d-10) to read as follows:
(b) Except as provided by
Subsection (b-1) or (b-2), an appraisal review [The] board
consists of three members.
(b-1) An appraisal [However,
the] district board of directors by resolution of a majority of the
board's [its] members may increase the size of the district's
appraisal review board to the number of members the board of directors
considers appropriate.
(b-2) An appraisal
district board of directors for a district established in a county
described by Subsection (d-1) by resolution of a majority of the board's
members shall increase the size of the district's appraisal review board to
the number of members the board of directors considers appropriate to
manage the duties of the appraisal review board, including the duties of
each special panel established under Section 6.425.
(d-1) In a county with a
population of 75,000 [120,000] or more the members of the
board are appointed by the local administrative district judge under
Subchapter D, Chapter 74, Government Code, in the county in which the
appraisal district is established. All applications submitted to the
appraisal district or to the appraisal review board from persons seeking
appointment as a member of the appraisal review board shall be delivered to
the local administrative district judge. The appraisal district may provide
the local administrative district judge with information regarding whether
an applicant for appointment to or a member of the board owes any
delinquent ad valorem taxes to a taxing unit participating in the appraisal
district.
(d-9) In selecting
individuals who are to serve as members of the appraisal review board, the local
administrative district judge shall select an adequate number of qualified
individuals to permit the chairman of the appraisal review board to fill
the positions on each special panel established under Section 6.425.
(d-10) Upon selection
of the individuals who are to serve as members of the appraisal review
board, the local administrative district judge shall enter an appropriate
order designating such members and setting each member's respective term of
office, as provided elsewhere in this section.
|
No
equivalent provision.
|
|
SECTION 6. Section 6.412(d),
Tax Code, is amended to read as follows:
(d) A person is ineligible to
serve on the appraisal review board of an appraisal district established
for a county with [having] a population of 120,000 or
more [than 100,000] if the person:
(1) is a former member of the
board of directors, former officer, or former employee of the appraisal
district;
(2) served as a member of the
governing body or officer of a taxing unit for which the appraisal district
appraises property, until the fourth anniversary of the date the person
ceased to be a member or officer; [or]
(3) appeared before the
appraisal review board for compensation during the two-year period
preceding the date the person is appointed; or
(4) served for all or part
of three previous terms as a board member or auxiliary board member under
former Section 6.414 on the appraisal review board.
|
No
equivalent provision.
|
|
SECTION 7. Section 6.42, Tax
Code, is amended by amending Subsections (a) and (c) and adding Subsection
(d) to read as follows:
(a) A majority of the
appraisal review board constitutes a quorum. The appraisal review
board [of directors of the
appraisal district] by
resolution shall select a chairman and a secretary from among its
[the] members [of the
appraisal review board]. The appraisal
review board [of
directors of the appraisal district] is encouraged to select as
chairman [of the appraisal review board] a member of the appraisal
review board, if any, who has a background in law and property appraisal.
(c)
Members of the board are entitled to per diem in the amount determined
[set] by the comptroller [appraisal district budget]
for each day the board meets and to reimbursement for actual and necessary
expenses incurred in the performance of board functions [as provided by
the district budget]. The comptroller may provide that a member of a
panel established under Section 6.425 is entitled to a per diem in an
amount greater than the amount of the standard per diem determined by the
comptroller. The comptroller shall periodically pay to each member the
amount to which the member is entitled under this subsection. The
comptroller shall make the payment from funds provided by the appraisal
district for which the member's appraisal review board is established. The
comptroller shall establish separate bank accounts outside the state
treasury for the purposes of this subsection. The comptroller shall assess
the costs required to make payments under this subsection to each appraisal
district at least quarterly. The comptroller shall adopt rules necessary to
implement this subsection.
(d) The concurrence of a
majority of the members of the appraisal review board or a panel of the
board present at a meeting of the board or panel is sufficient for a
recommendation, determination, decision, or other action by the board or
panel, and the concurrence of more than a majority of the members of the
board or panel may not be required.
|
SECTION 2. Section 6.42, Tax
Code, is amended by amending Subsection (a) and adding Subsection (d) to
read as follows:
(a) A majority of the
appraisal review board constitutes a quorum. The local administrative district judge under Subchapter D, Chapter
74, Government Code, in the county in which [board of directors of]
the appraisal district is established [by resolution] shall select a
chairman and a secretary from among the members of the appraisal review
board. The judge [board of directors of the
appraisal district] is encouraged to select as chairman [of the
appraisal review board] a member of the appraisal review board, if any,
who has a background in law and property appraisal.
(d) The concurrence of a
majority of the members of the appraisal review board or a panel of the
board present at a meeting of the board or panel is sufficient for a
recommendation, determination, decision, or other action by the board or
panel, and the concurrence of more than a majority of the members of the
board or panel may not be required.
|
|
SECTION 8. Subchapter C,
Chapter 6, Tax Code, is amended by adding Section 6.425 to read as follows:
Sec. 6.425. SPECIAL
APPRAISAL REVIEW BOARD PANELS IN CERTAIN DISTRICTS. (a) This section
applies only to the appraisal review board of an appraisal district
established for a county with a population of 120,000 or more.
(b) The appraisal review
board shall establish a separate special panel for each of the following
classifications of property to conduct protest hearings under Chapter 41
relating to property included in that classification:
(1) real property
interests in oil, gas, or other minerals;
(2) commercial real and
personal property with an appraised value of $50 million or more;
(3) real and personal
property of utilities;
(4) industrial and
manufacturing real and personal property; and
(5) multifamily
residential real property.
(c) The chairman of the
appraisal review board may establish additional special panels described by
this section to conduct protest hearings relating to property included in a
classification described by Subsection (b) if the chairman determines that
additional panels are necessary.
(d) Each special panel
described by this section consists of three members of the appraisal review
board appointed by the chairman of the board.
(e) To be eligible to be
appointed to a special panel described by this section, a member of the
appraisal review board must:
(1) hold a juris doctor or
equivalent degree;
(2) hold a master of
business administration degree;
(3) be licensed as a
certified public accountant under Chapter 901, Occupations Code;
(4) be accredited by the
American Society of Appraisers as an accredited senior appraiser;
(5) possess an MAI
professional designation from the Appraisal Institute;
(6) possess a Certified
Assessment Evaluator (CAE) professional designation from the International
Association of Assessing Officers; or
(7) have at least 20 years
of experience in property tax appraisal or consulting.
(f) Notwithstanding
Subsection (e), the chairman of the appraisal review board may appoint to a
special panel described by this section a member of the appraisal review
board who does not meet the qualifications prescribed by that subsection
if:
(1) the number of persons
appointed to the board by the local administrative district judge who meet those
qualifications is not sufficient to fill the positions on each special
panel; and
(2) the board member being
appointed to the panel:
(A) holds a bachelor's
degree in any field; or
(B) is licensed as a real
estate broker or sales agent under Chapter 1101, Occupations Code.
|
No
equivalent provision.
|
|
No
equivalent provision.
|
SECTION 3. Chapter 6, Tax
Code, is amended by adding Subchapter D to read as follows:
SUBCHAPTER D. LIMITED
APPEAL OF NONCOMPLIANCE WITH PROCEDURAL REQUIREMENT
Sec. 6.61. LIMITED APPEAL.
(a) Notwithstanding any other law or the Texas Rules of Civil Procedure, an
affected property owner may file a petition directly with the district
court to compel an appraisal district, chief appraiser, or appraisal review
board to comply with a procedural requirement that:
(1) is imposed on the
district, chief appraiser, or board under this title, a comptroller rule,
or a rule of procedure established by an appraisal review board under
Chapter 41; and
(2) the property owner
alleges has not been complied with by the district, chief appraiser, or
board.
(b) A property owner may
not file a petition authorized by this section before the 10th day after
the date the property owner provides written notice as provided by this
subsection of the owner's intent to file the petition. The notice must
state whether the appraisal district, chief appraiser, or appraisal review
board failed to comply with a procedural requirement described by
Subsection (a) and must identify the procedural requirement. The notice must
be sent by certified mail, return receipt requested, to:
(1) the chief appraiser of
the appraisal district if the owner alleges that the chief appraiser or
appraisal district failed to comply with the requirement;
(2) except as provided by
Subdivision (3), the chair of the appraisal review board if the owner
alleges that the board failed to comply with the requirement; or
(3) the local
administrative district judge if the judge appoints the members of the
appraisal review board and the owner alleges that the board failed to
comply with the requirement.
(c) A suit brought under
this section is for the limited purpose of determining whether the
defendant failed to comply with the procedural requirement that is the
subject of the suit. The suit may not address the merits of a motion filed
under Section 25.25 or a protest filed under Chapter 41.
(d) Neither party may
conduct discovery in a suit brought under this section.
(e) A property owner may
set the matter that is the subject of the suit for an evidentiary hearing
in accordance with the notice requirements provided by Rule 21, Texas Rules
of Civil Procedure. A property owner may not set the matter for a hearing
under this subsection until the petition initiating the suit has been
served on the defendant.
(f) At the end of a
hearing under Subsection (e), the court must determine the merits of the
suit. If the court determines that the defendant failed to comply with a
procedural requirement imposed on the defendant, the court:
(1) shall order the
defendant to comply with the procedural requirement;
(2) shall enter any order
necessary to preserve rights protected by, and impose duties required by,
the law; and
(3) may award court costs
and reasonable attorney's fees to the property owner.
(g) An order entered under
Subsection (f) is final and may not be appealed.
|
|
No
equivalent provision.
|
SECTION 4. Section 21.10(b),
Tax Code, is amended to read as follows:
(b) Except as otherwise
provided by this subsection, if [If] the application is
approved, the property owner is liable to each taxing unit for a penalty in
an amount equal to 10 percent of the [difference between the] amount
of tax imposed by the taxing unit on the property [without the
allocation and the amount of tax imposed on the property] with the allocation.
A property owner is not liable for the penalty prescribed by this
subsection if the chief appraiser who received the owner's allocation
application determines that the owner:
(1) exercised reasonable
diligence in attempting to file the application before the deadline imposed
by Section 21.09; or
(2) substantially complied
with the requirements of that section.
|
|
SECTION 9. Section 25.19, Tax
Code, is amended by amending Subsections (a) and (g) and adding Subsection
(b-3) to read as follows:
(a) By April 1 or as soon
thereafter as practicable [if the property is a single-family residence
that qualifies for an exemption under Section 11.13, or by May 1 or as soon
thereafter as practicable in connection with any other property], the
chief appraiser shall deliver a clear and understandable written notice to
a property owner of the appraised value of the property owner's property
if:
(1) the appraised value of
the property is greater than it was in the preceding year;
(2) the appraised value of
the property is greater than the value rendered by the property owner;
(3) the property was not on
the appraisal roll in the preceding year; or
(4) an exemption or partial
exemption approved for the property for the preceding year was canceled or
reduced for the current year.
(b-3) This subsection applies only to an appraisal district
established for a county with a population of 120,000 or more. In addition
to the information required by Subsection (b), the chief appraiser shall
state in a notice of appraised value of property included in a
classification described by Section 6.425(b) that the property owner has
the right to have a protest relating to the property heard by a special
panel of the appraisal review board.
(g) By April 1 or as soon
thereafter as practicable [if the property is a single-family residence
that qualifies for an exemption under Section 11.13, or by May 1 or as soon
thereafter as practicable in connection with any other property], the
chief appraiser shall deliver a written notice to the owner of each
property not included in a notice required to be delivered under Subsection
(a), if the property was reappraised in the current tax year, if the
ownership of the property changed during the preceding year, or if the
property owner or the agent of a property owner authorized under Section
1.111 makes a written request for the notice. The chief appraiser shall
separate real from personal property and include in the notice for each
property:
(1) the appraised value of
the property in the preceding year;
(2) the appraised value of
the property for the current year and the kind of each partial exemption,
if any, approved for the current year;
(3) a detailed explanation of
the time and procedure for protesting the value; and
(4) the date and place the
appraisal review board will begin hearing protests.
|
SECTION 5. Sections 25.19(a)
and (g), Tax Code, are amended to read as follows:
(a) By April 1 or as soon
thereafter as practicable [if the property is a single-family residence
that qualifies for an exemption under Section 11.13, or by May 1 or as soon
thereafter as practicable in connection with any other property], the
chief appraiser shall deliver a clear and understandable written notice to
a property owner of the appraised value of the property owner's property
if:
(1) the appraised value of
the property is greater than it was in the preceding year;
(2) the appraised value of
the property is greater than the value rendered by the property owner;
(3) the property was not on
the appraisal roll in the preceding year; or
(4) an exemption or partial
exemption approved for the property for the preceding year was canceled or
reduced for the current year.
(g) By April 1 or as soon
thereafter as practicable [if the property is a single-family residence
that qualifies for an exemption under Section 11.13, or by May 1 or as soon
thereafter as practicable in connection with any other property], the
chief appraiser shall deliver a written notice to the owner of each
property not included in a notice required to be delivered under Subsection
(a), if the property was reappraised in the current tax year, if the
ownership of the property changed during the preceding year, or if the
property owner or the agent of a property owner authorized under Section
1.111 makes a written request for the notice. The chief appraiser shall
separate real from personal property and include in the notice for each
property:
(1) the appraised value of
the property in the preceding year;
(2) the appraised value of
the property for the current year and the kind of each partial exemption,
if any, approved for the current year;
(3) a detailed explanation of
the time and procedure for protesting the value; and
(4) the date and place the
appraisal review board will begin hearing protests.
|
|
SECTION 10. Section 25.25(d),
Tax Code, is amended.
|
SECTION 6. Same as introduced
version.
|
|
SECTION 11. Section 41.03(a),
Tax Code, is amended.
|
SECTION 7. Same as introduced
version.
|
|
SECTION 12. Section 41.11(a),
Tax Code, is amended.
|
SECTION 8. Same as introduced
version.
|
|
SECTION 13. Sections
41.44(a), (c), and (d), Tax Code, are amended to read as follows:
(a) Except as provided by
Subsections (b), [(b-1),] (c), (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 written notice of the protest with the appraisal review
board having authority to hear the matter protested:
(1) before June [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;
[(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;
(3) [(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
(4) [(5)] in
the case of a determination of eligibility for a refund under Section
23.1243, not later than the 30th day after the date the notice of the
determination is delivered to the property owner.
(c) A property owner who
files notice of a protest authorized by Section 41.411 is entitled to a hearing
and determination of the protest if the property owner files the notice
prior to the date the taxes on the property to which the notice applies
become delinquent. An owner of land who files a notice of protest under
Subsection (a)(3) [(a)(4)] is entitled to a hearing and
determination of the protest without regard to whether the appraisal
records are approved.
(d)
A notice of protest is sufficient if it identifies the protesting property
owner, including a person claiming an ownership interest in the property
even if that person is not listed on the appraisal records as an owner of
the property, identifies the property that is the subject of the protest,
and indicates apparent dissatisfaction with some determination of the
appraisal office. The notice need not be on an official form, but the
comptroller shall prescribe a form that provides for more detail about the
nature of the protest. The form must permit a property owner to include
each property in the appraisal district that is the subject of a protest. The
form must permit a property owner to request that the protest be heard by a
special panel established under Section 6.425 if the protest will be
determined by an appraisal review board to which that section applies and
the property is included in a classification described by that section.
The comptroller, each appraisal office, and each appraisal review board
shall make the forms readily available and deliver one to a property owner
on request.
|
SECTION 9. Sections 41.44(a)
and (c), Tax Code, are amended to read as follows:
(a) Except as provided by
Subsections (b), [(b-1),] (c), (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 written notice of the protest with the appraisal review
board having authority to hear the matter protested:
(1) before June [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;
[(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;
(3) [(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
(4) [(5)] in
the case of a determination of eligibility for a refund under Section
23.1243, not later than the 30th day after the date the notice of the
determination is delivered to the property owner.
(c) A property owner who
files notice of a protest authorized by Section 41.411 is entitled to a
hearing and determination of the protest if the property owner files the
notice prior to the date the taxes on the property to which the notice
applies become delinquent. An owner of land who files a notice of protest
under Subsection (a)(3) [(a)(4)] is entitled to a hearing and
determination of the protest without regard to whether the appraisal
records are approved.
|
|
SECTION 14. Section 41.45,
Tax Code, is amended by amending Subsection (d) and adding Subsections
(d-1), (d-2), and (d-3) to read as follows:
(d) This subsection does
not apply to a special panel established under Section 6.425. An
appraisal review board consisting of more than three members may sit in
panels of not fewer than three members to conduct protest hearings. [However,
the determination of a protest heard by a panel must be made by the board.]
If the recommendation of a panel is not accepted by the board, the board
may refer the matter for rehearing to a panel composed of members who did
not hear the original hearing or, if there are not at least three members
who did not hear the original protest, the board may determine the protest.
[Before determining a protest or conducting a rehearing before a new
panel or the board, the board shall deliver notice of the hearing or
meeting to determine the protest in accordance with the provisions of this
subchapter.]
(d-1) An appraisal review
board to which Section 6.425 applies shall sit in special panels
established under that section to conduct protest hearings. A special panel
may conduct a protest hearing relating to property only if the property is
included in the classification for which the panel was established and the
property owner has requested that the panel conduct the hearing. The board
may rehear a protest heard by a special panel if the board elects not to
accept the recommendation of the panel.
(d-2) The determination of
a protest heard by a panel under Subsection (d) or (d-1) must be made by
the board.
(d-3) The board must
deliver notice of a hearing or meeting to determine a protest heard by a
panel, or to rehear a protest, under Subsection (d) or (d-1) in accordance
with the provisions of this subchapter.
|
No
equivalent provision.
|
|
SECTION 15. Section 41.66,
Tax Code, is amended by amending Subsection (k) and adding Subsection (k-1)
to read as follows:
(k) This subsection does
not apply to a special panel established under Section 6.425. If an
appraisal review board sits in panels to conduct protest hearings, protests
shall be randomly assigned to panels, except that the board may consider
the type of property subject to the protest or the ground of the protest
for the purpose of using the expertise of a particular panel in hearing
protests regarding particular types of property or based on particular
grounds. If a protest is scheduled to be heard by a particular panel, the
protest may not be reassigned to another panel without the consent of the
property owner or designated agent. If the appraisal review board has cause
to reassign a protest to another panel, a property owner or designated
agent may agree to reassignment of the protest or may request that the
hearing on the protest be postponed. The board shall postpone the hearing
on that request. A change of members of a panel because of a conflict of
interest, illness, or inability to continue participating in hearings for
the remainder of the day does not constitute reassignment of a protest to
another panel.
(k-1) On the request of a
property owner, an appraisal review board to which Section 6.425 applies
shall assign a protest relating to property included in a classification
described by that section to the special panel established to conduct
protest hearings relating to property included in that classification. If
the board has established more than one special panel to conduct protest
hearings relating to property included in a particular classification,
protests relating to property included in that classification shall be
randomly assigned to those special panels. If a protest is scheduled to be
heard by a particular special panel, the protest may not be reassigned to
another special panel without the consent of the property owner or
designated agent. If the board has cause to reassign a protest to another
special panel, a property owner or designated agent may agree to
reassignment of the protest or may request that the hearing on the protest
be postponed. The board shall postpone the hearing on that request. A
change of members of a special panel because of a conflict of interest,
illness, or inability to continue participating in hearings for the
remainder of the day does not constitute reassignment of a protest to
another special panel.
|
No
equivalent provision.
|
|
SECTION 16. Section 41.71,
Tax Code, is amended.
|
SECTION 10. Same as
introduced version.
|
|
SECTION 17. Section 41A.01,
Tax Code, is amended to read as follows:
Sec. 41A.01. RIGHT OF APPEAL
BY PROPERTY OWNER. As an alternative to filing an appeal under Section
42.01, a property owner is entitled to appeal through binding arbitration
under this chapter an appraisal review board order determining a protest
filed under Section 41.41(a)(1) or (2), or a motion filed under Section 25.25, concerning the
appraised or market value of property if:
(1) the property qualifies as
the owner's residence homestead under Section 11.13; or
(2) the appraised or market
value, as applicable, of the property as determined by the order is $5
[$3] million or less.
|
SECTION 11. Section 41A.01,
Tax Code, is amended to read as follows:
Sec. 41A.01. RIGHT OF APPEAL
BY PROPERTY OWNER. As an alternative to filing an appeal under Section
42.01, a property owner is entitled to appeal through binding arbitration
under this chapter an appraisal review board order determining a protest
filed under Section 41.41(a)(1) or (2), or a motion filed under Section 25.25(d), concerning the appraised
or market value of property if:
(1) the property qualifies as
the owner's residence homestead under Section 11.13; or
(2) the appraised or market
value, as applicable, of the property as determined by the order is $3 million or less.
|
|
SECTION 18. Sections
41A.03(a) and (a-1), Tax Code, are amended to read as follows:
(a) To appeal an appraisal
review board order under this chapter, a property owner must file with the
appraisal district not later than the 60th [45th] day after
the date the property owner receives notice of the order:
(1) a completed request for
binding arbitration under this chapter in the form prescribed by Section
41A.04; and
(2) an arbitration deposit
made payable to the comptroller in the amount of:
(A) $450, if the property
qualifies as the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is $500,000 or
less, as determined by the order;
(B) $500, if the property
qualifies as the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more than
$500,000, as determined by the order;
(C) $500, if the property
does not qualify as the owner's residence homestead under Section 11.13 and
the appraised or market value, as applicable, of the property is $1 million
or less, as determined by the order;
(D) $800, if the property
does not qualify as the owner's residence homestead under Section 11.13 and
the appraised or market value, as applicable, of the property is more than
$1 million but not more than $2 million, as determined by the order; [or]
(E) $1,050, if the property
does not qualify as the owner's residence homestead under Section 11.13 and
the appraised or market value, as applicable, of the property is more than
$2 million but not more than $3 million, as determined by the order; or
(F) $1,250, if the property does not qualify as the owner's
residence homestead under Section 11.13 and the appraised or market value,
as applicable, of the property is more than $3 million but not more than $5
million, as determined by the order.
(a-1) If a property owner
requests binding arbitration under this chapter to appeal appraisal review
board orders involving two or more tracts of land that are contiguous to
one another, a single arbitration deposit in the amount provided by
Subsection (a)(2) is sufficient to satisfy the requirement of Subsection
(a)(2). For purposes of this subsection, a tract of land is considered
to be contiguous with another tract of land if the tracts are divided only
by a road, railroad track, river, or stream.
|
SECTION 12. Sections
41A.03(a) and (a-1), Tax Code, are amended to read as follows:
(a) To appeal an appraisal
review board order under this chapter, a property owner must file with the
appraisal district not later than the 60th [45th] day after
the date the property owner receives notice of the order:
(1) a completed request for
binding arbitration under this chapter in the form prescribed by Section
41A.04; and
(2) an arbitration deposit
made payable to the comptroller in the amount of:
(A) $450, if the property
qualifies as the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is $500,000 or
less, as determined by the order;
(B) $500, if the property
qualifies as the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more than
$500,000, as determined by the order;
(C) $500, if the property
does not qualify as the owner's residence homestead under Section 11.13 and
the appraised or market value, as applicable, of the property is $1 million
or less, as determined by the order;
(D) $800, if the property
does not qualify as the owner's residence homestead under Section 11.13 and
the appraised or market value, as applicable, of the property is more than
$1 million but not more than $2 million, as determined by the order; or
(E) $1,050, if the property
does not qualify as the owner's residence homestead under Section 11.13 and
the appraised or market value, as applicable, of the property is more than
$2 million but not more than $3 million, as determined by the order.
(a-1) If a property owner
requests binding arbitration under this chapter to appeal appraisal review
board orders involving two or more tracts of land that are contiguous to
one another, a single arbitration deposit in the amount provided by Subsection
(a)(2) is sufficient to satisfy the requirement of Subsection (a)(2). For
purposes of this subsection, a tract of land is considered to be contiguous
with another tract of land if the tracts are divided only by a road,
railroad track, river, or stream.
|
|
SECTION 19. Section
41A.06(b), Tax Code, is amended to read as follows:
(b) To initially qualify to
serve as an arbitrator under this chapter, a person must:
(1) meet the following
requirements, as applicable:
(A) be licensed as an
attorney in this state; or
(B) have:
(i) completed at least 30
hours of training in arbitration and alternative dispute resolution
procedures from a university, college, or legal or real estate trade
association; and
(ii) been licensed or
certified continuously during the five years preceding the date the person
agrees to serve as an arbitrator as:
(a) a real estate broker or sales
agent [salesperson] under Chapter 1101, Occupations Code;
(b) a real estate appraiser
under Chapter 1103, Occupations Code; or
(c) a certified public
accountant under Chapter 901, Occupations Code; and
(2) agree to conduct an
arbitration for a fee that is not more than:
(A) $400, if the property
qualifies as the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is $500,000 or
less, as determined by the order;
(B) $450, if the property
qualifies as the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more than
$500,000, as determined by the order;
(C) $450, if the property
does not qualify as the owner's residence homestead under Section 11.13 and
the appraised or market value, as applicable, of the property is $1 million
or less, as determined by the order;
(D) $750, if the property
does not qualify as the owner's residence homestead under Section 11.13 and
the appraised or market value, as applicable, of the property is more than
$1 million but not more than $2 million, as determined by the order; [or]
(E) $1,000, if the property
does not qualify as the owner's residence homestead under Section 11.13 and
the appraised or market value, as applicable, of the property is more than
$2 million but not more than $3 million, as determined by the order; or
(F) $1,200, if the property
does not qualify as the owner's residence homestead under Section 11.13 and
the appraised or market value, as applicable, of the property is more than
$3 million but not more than $5 million, as determined by the order.
|
No
equivalent provision.
|
|
SECTION 20. Section 42.01(a),
Tax Code, is amended to read as follows:
(a) A property owner is
entitled to appeal:
(1) an order of the appraisal
review board determining:
(A) a protest by the property
owner as provided by Subchapter C, [of] Chapter 41;
(B) a [determination of an
appraisal review board on a] motion filed under Section 25.25;
(C) [a determination of an
appraisal review board] that the property owner has forfeited the right
to a final determination of a motion filed under Section 25.25 or of a
protest under Section 41.411 for failing to comply with the prepayment
requirements of Section 25.26 or 41.4115, as applicable; or
(D) [a determination of an
appraisal review board of] eligibility for a refund requested under
Section 23.1243; [or]
(2) a determination of the
appraisal review board of a procedural issue involving a motion filed under
Section 25.25 or a protest filed under Chapter 41; or
(3) [(2)] an
order of the comptroller issued as provided by Subchapter B, Chapter 24,
apportioning among the counties the appraised value of railroad rolling
stock owned by the property owner.
|
No
equivalent provision.
|
|
SECTION 21. Section 42.21(b),
Tax Code, is amended to read as follows:
(b) A petition for review
brought under Section 42.02 must be brought against the owner of the
property involved in the appeal. A petition for review brought under
Section 42.031 must be brought against the appraisal district and against
the owner of the property involved in the appeal. A petition for review
brought under Section 42.01(a)(2) must be brought against the appraisal
review board. A petition for review brought under Section 42.01(a)(3)
[42.01(a)(2)] or 42.03 must be brought against the comptroller. Any
other petition for review under this chapter must be brought against the
appraisal district. Except as otherwise provided by this subsection, a
[A] petition for review may not be brought against the appraisal
review board. An appraisal district may hire an attorney that represents
the district to represent the appraisal review board established for the
district to file an answer and obtain a dismissal of a suit filed against
the appraisal review board in violation of this subsection.
|
No
equivalent provision.
|
|
SECTION 22. Section 42.29,
Tax Code, is amended to read as follows:
Sec. 42.29. ATTORNEY'S FEES. (a)
A property owner may be awarded reasonable attorney's fees in an amount
authorized by this section if the property owner [who] prevails:
(1) in an appeal to
the court under Section 42.25 or 42.26;
(2) [,] in an
appeal to the court of a determination of an appraisal review board on a
motion filed under Section 25.25;
(3) in an appeal to the
court of a determination of an appraisal review board of a procedural issue
involving a motion filed under Section 25.25 or a protest filed under
Chapter 41; [,] or
(4) in an appeal to
the court of a determination of an appraisal review board of a protest of
the denial in whole or in part of an exemption under Section 11.17, 11.22,
11.23, 11.231, or 11.24 [may be awarded reasonable attorney's fees].
(b) Subject to Subsection
(c), the [The] amount of the award to a property owner
may not exceed the greater of:
(1) $15,000; or
(2) 20 percent of the total
amount by which the property owner's tax liability is reduced as a result
of the appeal.
(c) The [(b) Notwithstanding
Subsection (a), the] amount of an award of attorney's fees to a
property owner may not exceed the lesser of:
(1) $100,000; or
(2) the total amount by which
the property owner's tax liability is reduced as a result of the appeal.
|
No
equivalent provision.
|
|
SECTION 23. The following
provisions of the Tax Code are repealed:
(1) Section 6.414; and
(2) Section 41.44(b-1).
|
SECTION 13. Same as
introduced version.
|
|
SECTION 24. (a) Not later
than February 1, 2018, the comptroller of public accounts shall:
(1) appoint the local
property tax ombudsman as required by Section 5.054, Tax Code, as added by
this Act; and
(2) adopt rules as provided
by Section 5.061, Tax Code, as added by this Act.
(b) A property owner may not
file a complaint with the Office of Local Property Tax Ombudsman under
Subchapter B, Chapter 5, Tax Code, as added by this Act, before March 1,
2018.
|
No
equivalent provision.
|
|
SECTION 25. Sections
6.41(d-1) and (d-9), Tax Code, as amended by this Act, and Section
6.41(d-10), Tax Code, as added by this Act, apply only to the appointment
of appraisal review board members to terms beginning on or after January 1,
2019.
|
No
equivalent provision.
|
|
SECTION 26. Section 6.412(d),
Tax Code, as amended by this Act, does not affect the eligibility of a
person serving on an appraisal review board immediately before the
effective date of this Act to continue to serve on the board for the term
to which the member was appointed.
|
No
equivalent provision.
|
|
SECTION 27. (a) Section
6.42(c), Tax Code, as amended by this Act, applies only to the per diem and
reimbursement of actual and necessary expenses to which a member of an
appraisal review board is entitled to for appraisal review board functions
that occur on or after March 1, 2018.
(b) The comptroller of public
accounts shall adopt rules as provided by Section 6.42(c), Tax Code, as
amended by this Act, not later than February 1, 2018.
|
No
equivalent provision.
|
|
SECTION 28. Section
25.19(b-3), Tax Code, as added by this Act, applies only to a notice of
appraised value for a tax year beginning on or after January 1, 2019. A
notice of appraised value for a tax year beginning before January 1, 2019,
is governed by the law in effect immediately before that date, and that law
is continued in effect for that purpose.
|
No
equivalent provision.
|
|
No
equivalent provision.
|
SECTION 14. Subchapter D,
Chapter 6, Tax Code, as added by this Act, applies only to a procedural
requirement as described by Section 6.61(a) of that code that a property
owner alleges was not complied with on or after the effective date of
Section 6.61 of that chapter as provided by this Act.
|
|
No
equivalent provision.
|
SECTION 15. Section 21.10(b),
Tax Code, as amended by this Act, applies only to an allocation application
that is approved by the chief appraiser of an appraisal district on or
after the effective date of that subsection as provided by this Act. An
allocation application that is approved by the chief appraiser before the
effective date of that subsection is governed by the law in effect on the
date the application is approved, and the former law is continued in effect
for that purpose.
|
|
SECTION 29. Section 41.03(a),
Tax Code, as amended by this Act, applies only to a challenge under Chapter
41, Tax Code, for which a challenge petition is filed on or after January 1, 2018. A challenge under
Chapter 41, Tax Code, for which a challenge petition was filed before January 1, 2018, is governed by the law
in effect on the date the challenge petition was filed, and the former law
is continued in effect for that purpose.
|
SECTION 16. Section 41.03(a),
Tax Code, as amended by this Act, applies only to a challenge under Chapter
41, Tax Code, for which a challenge petition is filed on or after the effective date of that subsection as
provided by this Act. A challenge under Chapter 41, Tax Code, for
which a challenge petition was filed before the
effective date of that subsection is governed by the law in effect
on the date the challenge petition was filed, and the former law is
continued in effect for that purpose.
|
|
SECTION 30. Sections 41.44, 41.45, and 41.66, Tax Code, as amended
by this Act, apply only to a protest filed under Chapter 41, Tax Code, on
or after January 1, 2019. A
protest filed under that chapter before January
1, 2019, is governed by the law in effect on the date the protest
was filed, and the former law is continued in effect for that purpose.
|
SECTION 17. Section 41.44,
Tax Code, as amended by this Act, applies only to a protest filed under
Chapter 41, Tax Code, on or after the
effective date of that section as provided by this Act. A protest
filed under that chapter before the
effective date of that section is governed by the law in effect on
the date the protest was filed, and the former law is continued in effect
for that purpose.
|
|
SECTION 31. Section 41.71,
Tax Code, as amended by this Act, applies only to a hearing on a protest
under Chapter 41, Tax Code, that is scheduled on or after January 1, 2018. A hearing on a protest
under Chapter 41, Tax Code, that is scheduled before January 1, 2018, is governed by the law
in effect on the date the hearing was scheduled, and that law is continued
in effect for that purpose.
|
SECTION 18. Section 41.71,
Tax Code, as amended by this Act, applies only to a hearing on a protest
under Chapter 41, Tax Code, that is scheduled on or after the effective date of that section as provided
by this Act. A hearing on a protest under Chapter 41, Tax Code, that
is scheduled before the effective date
of that section is governed by the law in effect on the date the
hearing was scheduled, and that law is continued in effect for that
purpose.
|
|
SECTION 32. Sections 41A.01,
41A.03, and 41A.06, Tax Code, as
amended by this Act, apply only to a request for binding arbitration under
Chapter 41A, Tax Code, that is filed on or after January 1, 2018. A request for binding arbitration under
Chapter 41A, Tax Code, that is filed before January
1, 2018, is governed by the law in effect on the date the request is
filed, and the former law is continued in effect for that purpose.
|
SECTION 19. Sections 41A.01
and 41A.03, Tax Code, as amended by this Act, apply only to a request for
binding arbitration under Chapter 41A, Tax Code, that is filed on or after the effective date of those sections as
provided by this Act. A request for binding arbitration under
Chapter 41A, Tax Code, that is filed before the
effective date of those sections is governed by the law in effect on
the date the request is filed, and the former law is continued in effect
for that purpose.
|
|
SECTION 33. Sections 42.01,
42.21, and 42.29, Tax Code, as amended by this Act, apply only to an appeal
under Chapter 42, Tax Code, that is filed on or after the effective date of
this Act. An appeal under Chapter 42, Tax Code, that is filed before the
effective date of this Act is governed by the law in effect on the date the
appeal is filed, and the former law is continued in effect for that
purpose.
|
No
equivalent provision.
|
|
SECTION 34. (a) Except as
provided by Subsection (b) of this section, this Act takes effect January
1, 2018.
(b) The following provisions
take effect
September 1, 2018:
(1)
Sections 6.41(b), (d-1), and (d-9), Tax Code, as amended by this Act;
(2)
Sections 6.41(b-1), (b-2), and (d-10), Tax Code, as added by this Act;
(3)
Section 6.425, Tax Code, as added by this Act;
(4)
Section 25.19(b-3), Tax Code, as added by this Act;
(5)
Section 41.44(d), Tax Code, as amended by this Act;
(6)
Section 41.45(d), Tax Code, as amended by this Act;
(7)
Sections 41.45(d-1), (d-2), and (d-3), Tax Code, as added by this Act;
(8)
Section 41.66(k), Tax Code, as amended by this Act; and
(9)
Section 41.66(k-1), Tax Code, as added by this Act.
|
SECTION 20. (a) Except as
provided by Subsections (b) and (c) of this section, this Act takes effect
January 1, 2018.
(b) The following provisions
take effect immediately if this Act
receives a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution, or
September 1, 2017, if this Act
does not receive the vote necessary for immediate effect:
(1)
Section 5.05(e), Tax Code, as added by this Act;
(2)
Section 6.61, Tax Code, as added by this Act;
(3)
Section 21.10(b), Tax Code, as amended by this Act;
(4)
Section 25.25(d), Tax Code, as amended by this Act; and
(5)
Section 41.03(a), Tax Code, as amended by this Act.
(c)
The following provisions take effect immediately if this Act receives a
vote of two-thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution, or January 1, 2018, if this
Act does not receive the vote necessary for immediate effect:
(1)
Section 41A.01, Tax Code, as amended by this Act; and
(2)
Sections 41A.03(a) and (a-1), Tax Code, as amended by this Act.
|
|