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A BILL TO BE ENTITLED
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AN ACT
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relating to the system for protesting or appealing certain ad |
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valorem tax determinations; authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 5.041(b) and (e-1), Tax Code, are |
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amended to read as follows: |
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(b) A member of the appraisal review board established for |
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an appraisal district must complete the course established under |
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Subsection (a). The course must provide at least eight hours of |
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classroom training and education. A member of the appraisal review |
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board may not participate in a hearing conducted by the board unless |
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the person has completed the course established under Subsection |
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(a) and received a certificate of course completion. |
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(e-1) In addition to the course established under |
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Subsection (a), the comptroller shall approve curricula and provide |
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materials for use in a continuing education course for members of an |
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appraisal review board. The course must provide at least four |
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hours of classroom training and education. The curricula and |
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materials must include information regarding: |
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(1) the cost, income, and market data comparison |
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methods of appraising property; |
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(2) the appraisal of business personal property; |
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(3) the determination of capitalization rates for |
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property appraisal purposes; |
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(4) the duties of an appraisal review board; |
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(5) the requirements regarding the independence of an |
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appraisal review board from the board of directors and the chief |
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appraiser and other employees of the appraisal district; |
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(6) the prohibitions against ex parte communications |
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applicable to appraisal review board members; |
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(7) the Uniform Standards of Professional Appraisal |
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Practice; |
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(8) the duty of the appraisal district to substantiate |
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the district's determination of the value of property; |
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(9) the requirements regarding the equal and uniform |
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appraisal of property; |
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(10) the right of a property owner to protest the |
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appraisal of the property as provided by Chapter 41; and |
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(11) a detailed explanation of each of the actions |
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described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413, |
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41.42, and 41.43 so that members are fully aware of each of the |
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grounds on which a property appraisal can be appealed. |
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SECTION 2. Chapter 5, Tax Code, is amended by adding Section |
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5.043 to read as follows: |
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Sec. 5.043. TRAINING OF ARBITRATORS. (a) This section |
|
applies only to persons who have agreed to serve as arbitrators |
|
under Chapter 41A. |
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(b) The comptroller shall: |
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(1) approve curricula and provide an arbitration |
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manual and other materials for use in training and educating |
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arbitrators; |
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(2) make all materials for use in training and |
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educating arbitrators freely available online; and |
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(3) establish and supervise a training program on |
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property tax law for the training and education of arbitrators. |
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(c) The training program must: |
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(1) emphasize the requirements regarding the equal and |
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uniform appraisal of property; and |
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(2) be at least four hours in length. |
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(d) The comptroller may contract with service providers to |
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assist with the duties imposed under Subsection (b), but the |
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training program may not be provided by an appraisal district, the |
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chief appraiser or another employee of an appraisal district, a |
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member of the board of directors of an appraisal district, a member |
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of an appraisal review board, or a taxing unit. The comptroller may |
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assess a fee to recover a portion of the costs incurred for the |
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training program, but the fee may not exceed $50 for each person |
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trained. |
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(e) The comptroller shall prepare an arbitration manual for |
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use in the training program. The manual must be approved on the |
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unanimous agreement of a committee selected by the comptroller and |
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representing, equally, taxpayers and chief appraisers. The manual |
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shall be updated regularly and may be revised on request, in |
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writing, to the comptroller. The updated or revised language must |
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be approved in the manner provided for the initial approval of the |
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manual. |
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SECTION 3. Chapter 5, Tax Code, is amended by adding Section |
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5.104 to read as follows: |
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Sec. 5.104. APPRAISAL REVIEW BOARD SURVEY; REPORT. (a) The |
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comptroller shall prepare: |
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(1) a survey form that allows a property owner or the |
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designated agent of the owner who files with an appraisal review |
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board a motion under Section 25.25 to correct the appraisal roll or |
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a protest under Chapter 41 to submit comments and suggestions to the |
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comptroller regarding the board; and |
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(2) instructions for completing and submitting the |
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form. |
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(b) The survey form must allow a property owner or the |
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designated agent of the owner to submit comments and suggestions |
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regarding: |
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(1) the matters listed in Section 5.103(b); and |
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(2) any other matter related to the fairness and |
|
efficiency of the appraisal review board. |
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(c) An appraisal district must provide the survey form and |
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the instructions for completing and submitting the form to each |
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property owner or designated agent of the owner: |
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(1) at or before each hearing conducted under Section |
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25.25 or Chapter 41 by the appraisal review board established for |
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the appraisal district; and |
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(2) with each order under Section 25.25 or 41.47 |
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determining a motion or protest, as applicable, delivered by the |
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board. |
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(d) A property owner or the designated agent of the owner |
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who elects to submit the survey form must submit the form to the |
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comptroller as provided by this section. An appraisal district may |
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not accept a survey form submitted by a property owner or the |
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designated agent of the owner. |
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(e) The comptroller shall allow a property owner or the |
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designated agent of the owner to submit a survey form to the |
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comptroller in the following manner: |
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(1) in person; |
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(2) by mail; |
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(3) by electronic mail; or |
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(4) through a web page on the comptroller's Internet |
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website that allows the property owner or agent to complete and |
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submit the form. |
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(f) An appraisal district may not require a property owner |
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or the designated agent of the owner to complete a survey form at |
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the appraisal office in order to be permitted to submit the form to |
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the comptroller. |
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(g) A property owner or the designated agent of the owner |
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who elects to submit a survey form provided to the owner or agent |
|
under Subsection (c)(1) or (2) must submit the form not later than |
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the 45th day after the date the form is sent to the owner or agent |
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under Subsection (c)(2). |
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(h) The comptroller shall issue an annual report that |
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summarizes the information included in the survey forms submitted |
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during the preceding year. The report may not disclose the identity |
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of a property owner or the designated agent of the owner who |
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submitted a survey form. |
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(i) The comptroller shall adopt rules necessary to |
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implement this section. |
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SECTION 4. Sections 6.412(a) and (d), Tax Code, are amended |
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to read as follows: |
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(a) An individual is ineligible to serve on an appraisal |
|
review board if the individual: |
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(1) is related within the second degree by |
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consanguinity or affinity, as determined under Chapter 573, |
|
Government Code, to an individual who is engaged in the business of |
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appraising property for compensation for use in proceedings under |
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this title or of representing property owners for compensation in |
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proceedings under this title in the appraisal district for which |
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the appraisal review board is established; |
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(2) owns property on which delinquent taxes have been |
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owed to a taxing unit for more than 60 days after the date the |
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individual knew or should have known of the delinquency unless: |
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(A) the delinquent taxes and any penalties and |
|
interest are being paid under an installment payment agreement |
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under Section 33.02; or |
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(B) a suit to collect the delinquent taxes is |
|
deferred or abated under Section 33.06 or 33.065; or |
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(3) is related within the third degree by |
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consanguinity or within the second degree by affinity, as |
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determined under Chapter 573, Government Code, to a member of: |
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(A) the appraisal district's board of directors; |
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or |
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(B) the appraisal review board. |
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(d) A person is ineligible to serve on the appraisal review |
|
board of an appraisal district established for a county described |
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by Section 6.41(d-1) [having a population of more than 100,000] if |
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the person: |
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(1) is a former member of the board of directors, |
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former officer, or former employee of the appraisal district; |
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(2) served as a member of the governing body or officer |
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of a taxing unit for which the appraisal district appraises |
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property, until the fourth anniversary of the date the person |
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ceased to be a member or officer; [or] |
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(3) appeared before the appraisal review board for |
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compensation during the two-year period preceding the date the |
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person is appointed; or |
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(4) served for all or part of three previous terms as a |
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board member or auxiliary board member on the appraisal review |
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board. |
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SECTION 5. Section 6.42(a), Tax Code, is amended to read as |
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follows: |
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(a) A majority of the appraisal review board constitutes a |
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quorum. The appraisal review board [of directors of the appraisal
|
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district] by resolution shall select a chairman and a secretary |
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from among its [the] members [of the appraisal review board]. The |
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appraisal review board [of directors of the appraisal district] is |
|
encouraged to select as chairman [of the appraisal review board] a |
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member of the appraisal review board, if any, who has a background |
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in law and property appraisal. |
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SECTION 6. Section 25.25, Tax Code, is amended by adding |
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Subsection (e-1) to read as follows: |
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(e-1) At the end of a hearing on a motion under Subsection |
|
(c) or (d) conducted by a panel of the appraisal review board |
|
regarding the value of property, the panel shall provide the |
|
property owner or the designated agent of the owner a document |
|
stating the panel's recommendation regarding the value of the |
|
property. |
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SECTION 7. Section 41.45(h), Tax Code, is amended to read as |
|
follows: |
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(h) Before the hearing on a protest [or immediately after
|
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the hearing begins], the chief appraiser and the property owner or |
|
the owner's agent shall each provide the other with a copy of any |
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written material or material preserved on any portable device |
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designed to maintain an electronic, magnetic, or digital |
|
reproduction of a document or image that the person intends to offer |
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or submit to the appraisal review board at the hearing. |
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SECTION 8. Section 41.46(a), Tax Code, is amended to read as |
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follows: |
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(a) The appraisal review board before which a protest |
|
hearing is scheduled shall deliver written notice to the property |
|
owner initiating a protest of the date, time, [and] place, and |
|
subject matter of [fixed for] the hearing on the protest and of the |
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property owner's entitlement to a postponement of the hearing as |
|
provided by Section 41.45 unless the property owner waives in |
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writing notice of the hearing. The board shall deliver the notice |
|
not later than the 15th day before the date of the hearing. |
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SECTION 9. Section 41.461(a), Tax Code, is amended to read |
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as follows: |
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(a) At least 14 days before the first scheduled [a] hearing |
|
on a protest, the chief appraiser shall: |
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(1) deliver a copy of the pamphlet prepared by the |
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comptroller under Section 5.06 [5.06(a)] to the property owner |
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initiating the protest if the owner is representing himself, or to |
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an agent representing the owner if requested by the agent; |
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(2) inform the property owner that the owner or the |
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agent of the owner is entitled on request to [may inspect and may
|
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obtain] a copy of the data, schedules, formulas, and all other |
|
information the chief appraiser will [plans to] introduce at the |
|
hearing to establish any matter at issue; and |
|
(3) deliver a copy of the hearing procedures |
|
established by the appraisal review board under Section 41.66 to |
|
the property owner. |
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SECTION 10. Section 41.47, Tax Code, is amended by adding |
|
Subsection (a-1) and amending Subsection (d) to read as follows: |
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(a-1) The board may not determine the appraised value of the |
|
property that is the subject of a protest to be an amount greater |
|
than the appraised value of the property as shown in the appraisal |
|
records submitted to the board by the chief appraiser under Section |
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25.22 or 25.23. |
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(d) Not later than the 15th day after the date the protest is |
|
determined, the [The] board shall deliver by certified mail: |
|
(1) a notice of issuance of the order and a copy of the |
|
order to the property owner or the designated agent of the owner and |
|
the chief appraiser; and |
|
(2) a copy of the appraisal review board survey form |
|
prepared under Section 5.104 and instructions for completing and |
|
submitting the form to the property owner or the designated agent of |
|
the owner. |
|
SECTION 11. Section 41.66, Tax Code, is amended by amending |
|
Subsections (h), (i), and (j) and adding Subsections (j-1) and (p) |
|
to read as follows: |
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(h) The appraisal review board shall postpone a hearing on a |
|
protest if the property owner or the designated agent of the owner |
|
requests additional time to prepare for the hearing and establishes |
|
to the board that the chief appraiser failed to comply with Section |
|
41.461. The board is not required to postpone a hearing more than |
|
one time under this subsection. |
|
(i) A hearing on a protest filed by a property owner or the |
|
designated agent of the owner [who is not represented by an agent
|
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designated under Section 1.111] shall be set for a time and date |
|
certain. If the hearing is not commenced within two hours of the |
|
time set for the hearing, the appraisal review board shall postpone |
|
the hearing on the request of the property owner or the designated |
|
agent of the owner. |
|
(j) On the request of a property owner or the [a] designated |
|
agent of the owner, an appraisal review board shall schedule |
|
hearings on protests concerning up to 20 designated properties to |
|
be held consecutively on the same day. The designated properties |
|
must be identified in the same notice of protest, and the notice |
|
must contain in boldfaced type the statement "request for same-day |
|
protest hearings." A property owner or the designated agent of the |
|
owner may [not] file more than one request under this subsection |
|
with the appraisal review board in the same tax year. The appraisal |
|
review board may schedule hearings on protests concerning more than |
|
20 properties filed by the same property owner or the designated |
|
agent of the owner and may use different panels to conduct the |
|
hearings based on the board's customary scheduling. The appraisal |
|
review board may follow the practices customarily used by the board |
|
in the scheduling of hearings under this subsection. |
|
(j-1) An appraisal review board may schedule the hearings on |
|
all protests filed by a property owner or the designated agent of |
|
the owner to be held consecutively. The notice of the hearings must |
|
state the date and time that the first hearing will begin, state the |
|
date the last hearing will end, and list the order in which the |
|
hearings will be held. The order of the hearings listed in the |
|
notice may not be changed without the agreement of the property |
|
owner or the designated agent of the owner, the chief appraiser, and |
|
the appraisal review board. The board may not reschedule a hearing |
|
for which notice is given under this subsection to a date earlier |
|
than the seventh day after the date the last hearing was scheduled |
|
to end unless agreed to by the property owner or the designated |
|
agent of the owner, the chief appraiser, and the appraisal review |
|
board. Unless agreed to by the parties, the board must provide |
|
written notice of the date and time of the rescheduled hearing to |
|
the property owner or the designated agent of the owner not later |
|
than the seventh day before the date of the hearing. |
|
(p) At the end of a hearing on a protest, the appraisal |
|
review board shall provide the property owner or the designated |
|
agent of the owner: |
|
(1) one or more documents indicating that the members |
|
of the board hearing the protest signed the affidavit required by |
|
Subsection (g); and |
|
(2) if the hearing is on a protest authorized by |
|
Section 41.41(a)(1) or (2) and is conducted by a panel of the board, |
|
a document stating the panel's recommendation regarding the value |
|
of the property subject to the protest. |
|
SECTION 12. Section 41.67(d), Tax Code, is amended to read |
|
as follows: |
|
(d) Information that was previously requested under Section |
|
41.461 by the protesting party that was not delivered [made
|
|
available] to the protesting party at least 14 days before the first |
|
scheduled [or postponed] hearing may not be used or offered in any |
|
form as evidence in the hearing, including as a document or through |
|
argument or testimony. |
|
SECTION 13. 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) complete the course for training and education of |
|
appraisal review board members established under Section 5.041 and |
|
be issued a certificate indicating course completion; |
|
(3) complete the training program on property tax law |
|
for the training and education of arbitrators established under |
|
Section 5.043; and |
|
(4) 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. |
|
SECTION 14. Section 41A.061(b), Tax Code, is amended to |
|
read as follows: |
|
(b) To renew the person's agreement to serve as an |
|
arbitrator, the person must: |
|
(1) file a renewal application with the comptroller at |
|
the time and in the manner prescribed by the comptroller; |
|
(2) continue to meet the requirements provided by |
|
Sections 41A.06(b)(1) and (4) [Section 41A.06(b)]; and |
|
(3) during the preceding two years have completed at |
|
least eight hours of continuing education in arbitration and |
|
alternative dispute resolution procedures offered by a university, |
|
college, real estate trade association, or legal association. |
|
SECTION 15. Section 41A.09(b), Tax Code, is amended to read |
|
as follows: |
|
(b) An award under this section: |
|
(1) must include a determination of the appraised or |
|
market value, as applicable, of the property that is the subject of |
|
the appeal; |
|
(2) may include any remedy or relief a court may order |
|
under Chapter 42 in an appeal relating to the appraised or market |
|
value of property; |
|
(3) shall specify the arbitrator's fee, which may not |
|
exceed the amount provided by Section 41A.06(b)(4) [41A.06(b)(2)]; |
|
(4) is final and may not be appealed except as |
|
permitted under Section 171.088, Civil Practice and Remedies Code, |
|
for an award subject to that section; and |
|
(5) may be enforced in the manner provided by |
|
Subchapter D, Chapter 171, Civil Practice and Remedies Code. |
|
SECTION 16. Sections 5.103(e) and (f), 6.412(e), and |
|
41A.06(c), Tax Code, are repealed. |
|
SECTION 17. The changes in law made by this Act to Section |
|
5.041, Tax Code, apply only to an appraisal review board member |
|
appointed to serve a term of office that begins on or after the |
|
effective date of this Act. |
|
SECTION 18. The comptroller shall implement Section 5.043, |
|
Tax Code, as added by this Act, as soon as practicable after the |
|
effective date of this Act. |
|
SECTION 19. The comptroller shall adopt rules necessary to |
|
implement Section 5.104, Tax Code, as added by this Act, and shall |
|
prepare and make available the survey form and instructions for |
|
completing and submitting the form required by that section as soon |
|
as practicable after the effective date of this Act. An appraisal |
|
district is not required to provide the survey form or instructions |
|
under a requirement of that section until the form and instructions |
|
are prepared and made available by the comptroller. |
|
SECTION 20. The changes in law made by this Act to Section |
|
6.412, Tax Code, do 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. |
|
SECTION 21. The change in law made by this Act to Section |
|
25.25, Tax Code, applies only to a motion to correct an appraisal |
|
roll filed on or after the effective date of this Act. |
|
SECTION 22. The changes in law made by this Act to Sections |
|
41.45, 41.46, 41.461, 41.47, 41.66, and 41.67, Tax Code, apply only |
|
to a protest for which the notice of protest was filed by a property |
|
owner or the designated agent of the owner with the appraisal review |
|
board established for an appraisal district on or after the |
|
effective date of this Act. |
|
SECTION 23. The changes in law made by this Act in the |
|
qualifications of persons serving as arbitrators in binding |
|
arbitrations of appeals of appraisal review board orders do not |
|
affect the entitlement of a person serving as an arbitrator |
|
immediately before the effective date of this Act to continue to |
|
serve as an arbitrator and to conduct hearings on arbitrations |
|
until the person is required to renew the person's agreement with |
|
the comptroller to serve as an arbitrator. The changes in law apply |
|
only to a person who initially qualifies to serve as an arbitrator |
|
or who renews the person's agreement with the comptroller to serve |
|
as an arbitrator on or after the effective date of this Act. This |
|
Act does not prohibit a person who is serving as an arbitrator on |
|
the effective date of this Act from renewing the person's agreement |
|
with the comptroller to serve as an arbitrator if the person has the |
|
qualifications required for an arbitrator under the Tax Code as |
|
amended by this Act. |
|
SECTION 24. This Act takes effect January 1, 2018. |