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A BILL TO BE ENTITLED
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AN ACT
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relating to the appraisal of land for ad valorem tax purposes as |
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qualified open-space land following a transfer between family |
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members. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.54, Tax Code, is amended by adding |
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Subsection (e-1) to read as follows: |
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(e-1) Notwithstanding Subsection (e), land remains eligible |
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for appraisal under this subchapter after a change in ownership of |
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the land occurs if the change in ownership results from a transfer |
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of the land from the former owner to a person who is related to the |
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former owner within the second degree by affinity or third degree by |
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consanguinity, as determined under Subchapter B, Chapter 573, |
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Government Code. A person described by this subsection must notify |
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the appraisal office of the transfer in writing within 180 days of |
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the date of the transfer. |
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SECTION 2. Section 25.25, Tax Code, is amended by adding |
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Subsections (d-1), (d-2), and (d-3) and amending Subsections (e) |
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and (m) to read as follows: |
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(d-1) The appraisal review board, on motion of the chief |
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appraiser or of the property owner, may direct by written order |
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changes in the appraisal roll as provided by this subsection. The |
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board may order the appraised value of the owner's land in either of |
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the two preceding tax years to be changed to the value at which the |
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land would have been appraised under Subchapter D, Chapter 23, if: |
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(1) the chief appraiser or the property owner |
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demonstrates by clear and convincing evidence that the land was |
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appraised under Subchapter D, Chapter 23, for three of the five |
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preceding tax years; |
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(2) the land was determined to be ineligible for |
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appraisal under Subchapter D, Chapter 23, for the applicable tax |
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year or years for which the change in appraised value is sought |
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because the property owner failed to file a new application for |
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appraisal under that subchapter after a change in ownership of the |
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land occurred; |
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(3) the change in ownership was the result of a |
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transfer of the land from a person to whom the property owner is |
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related within the second degree by affinity or third degree by |
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consanguinity, as determined under Subchapter B, Chapter 573, |
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Government Code; and |
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(4) the land continued to be used in a manner that |
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otherwise qualified the land for appraisal under Subchapter D, |
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Chapter 23, during the applicable tax year. |
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(d-2) If an appraisal roll is changed under Subsection |
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(d-1), the property owner must pay to each affected taxing unit a |
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penalty equal to 10 percent of the difference between the amount of |
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tax imposed on the land and the amount of tax that would have been |
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imposed had the land been taxed at market value. Payment of the |
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penalty is secured by the lien that attaches to the land under |
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Section 32.01 and is subject to enforced collection under Chapter |
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33. |
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(d-3) An appraisal roll may not be changed under Subsection |
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(d-1) if: |
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(1) the land was the subject of a protest brought by |
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the property owner under Chapter 41, a hearing on the protest was |
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conducted in which the property owner offered evidence or argument, |
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and the appraisal review board made a determination of the protest |
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on the merits; or |
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(2) the appraised value of the land was established as |
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a result of a written agreement between the property owner or the |
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owner's agent and the appraisal district. |
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(e) If the chief appraiser and the property owner do not |
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agree to the correction before the 15th day after the date the |
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motion is filed, a party bringing a motion under Subsection (c), |
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[or] (d), or (d-1) is entitled on request to a hearing on and a |
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determination of the motion by the appraisal review board. A party |
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bringing a motion under this section must describe the error or |
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errors that the motion is seeking to correct under Subsection (c) or |
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(d) or state the grounds for the change in appraised value sought |
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under Subsection (d-1). Not later than 15 days before the date of |
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the hearing, the board shall deliver written notice of the date, |
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time, and place of the hearing to the chief appraiser, the property |
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owner, and the presiding officer of the governing body of each |
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taxing unit in which the property is located. The chief appraiser, |
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the property owner, and each taxing unit are entitled to present |
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evidence and argument at the hearing and to receive written notice |
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of the board's determination of the motion. The property owner is |
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entitled to elect to present the owner's evidence and argument |
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before, after, or between the cases presented by the chief |
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appraiser and each taxing unit. A property owner who files the |
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motion must comply with the payment requirements of Section 25.26 |
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or forfeit the right to a final determination of the motion. |
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(m) The hearing on a motion under Subsection (c), [or] (d), |
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or (d-1) shall be conducted in the manner provided by Subchapter C, |
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Chapter 41. |
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SECTION 3. This Act takes effect January 1, 2020. |