By: Middleton H.B. No. 1395
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to ad valorem taxation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 5.041(c), (e-1), (e-3), and (g), Tax
  Code, are amended to read as follows:
         (c)  The comptroller may contract with service providers to
  assist with the duties imposed under Subsection (a), but the course
  required may not be provided by an appraisal office [district], the
  chief appraiser or another employee of an appraisal office
  [district], the county assessor-collector who governs [a member of
  the board of directors of] an appraisal office [district], a member
  of an appraisal review board, or a taxing unit. The comptroller may
  assess a fee to recover a portion of the costs incurred for the
  training course, but the fee may not exceed $50 for each person
  trained. If the training is provided to an individual other than a
  member of an appraisal review board, the comptroller may assess a
  fee not to exceed $50 for each person trained.
         (e-1)  In addition to the course established under
  Subsection (a), the comptroller shall approve curricula and provide
  materials for use in a continuing education course for members of an
  appraisal review board. The course must provide at least four hours
  of classroom training and education. 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;
               (3) [(4)]  the duties of an appraisal review board;
               (4) [(5)]  the requirements regarding the independence
  of an appraisal review board from the county assessor-collector who
  governs the appraisal office [board of directors] and the chief
  appraiser and other employees of the appraisal office [district];
               (5) [(6)]  the prohibitions against ex parte
  communications applicable to appraisal review board members;
               (6) [(7)]  the Uniform Standards of Professional
  Appraisal Practice;
               (7) [(8)]  the duty of the appraisal office [district]
  to substantiate the office's [district's] determination of the
  value of property;
               (8) [(9)]  the requirements regarding the equal and
  uniform appraisal of property;
               (9) [(10)]  the right of a property owner to protest
  the appraisal of the property as provided by Chapter 41; and
               (10) [(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.
         (e-3)  The comptroller may contract with service providers
  to assist with the duties imposed under Subsection (e-1), but the
  course required by that subsection may not be provided by an
  appraisal office [district], the chief appraiser or another
  employee of an appraisal office [district], the county
  assessor-collector who governs [a member of the board of directors
  of] an appraisal office [district], a member of an appraisal review
  board, or a taxing unit. The comptroller may assess a fee to
  recover a portion of the costs incurred for the continuing
  education course, but the fee may not exceed $50 for each person
  trained. If the training is provided to an individual other than a
  member of an appraisal review board, the comptroller may assess a
  fee not to exceed $50 for each person trained.
         (g)  Except during a hearing or other appraisal review board
  proceeding and as provided by Subsection (h) and Section
  6.411(c-1), the following persons may not communicate with a member
  of an appraisal review board about a course provided under this
  section or any matter presented or discussed during the course:
               (1)  the chief appraiser of the appraisal office
  [district] for which the appraisal review board is established;
               (2)  another employee of the appraisal office
  [district] for which the appraisal review board is established;
               (3)  the county assessor-collector who governs [a
  member of the board of directors of] the appraisal office
  [district] for which the appraisal review board is established;
               (4)  an officer or employee of a taxing unit that
  participates in the appraisal office [district] for which the
  appraisal review board is established; and
               (5)  an attorney who represents or whose law firm
  represents the appraisal office [district] or a taxing unit that
  participates in the appraisal office [district] for which the
  appraisal review board is established.
         SECTION 2.  The heading to Subchapter A, Chapter 6, Tax Code,
  is amended to read as follows:
  SUBCHAPTER A. APPRAISAL OFFICES [DISTRICTS]
         SECTION 3.  Section 6.01, Tax Code, is amended to read as
  follows:
         Sec. 6.01.  APPRAISAL OFFICES [DISTRICTS] ESTABLISHED. (a)
  An appraisal office [district] is established in each county.
         (b)  The office [district] is responsible for appraising
  property in the county for which the office is established
  [district] for ad valorem tax purposes of each taxing unit that
  imposes ad valorem taxes on property in the county [district].
         (c)  An appraisal office [district] is governed by the
  assessor-collector of the county for which the office is
  established and is an administrative office of the county
  assessor-collector [a political subdivision of the state].
         (d)  For purposes of this title, each taxing unit with
  territory in the county is considered to participate in the
  appraisal office established for the county.
         (e)  A reference in this title or other law to:
               (1)  an appraisal district means an appraisal office;
               (2)  the territory of an appraisal district means the
  county for which an appraisal office is established; and
               (3)  the board of directors of an appraisal district
  means the assessor-collector of the county for which an appraisal
  office is established.
         SECTION 4.  Section 6.02, Tax Code, is amended to read as
  follows:
         Sec. 6.02.  APPRAISAL OFFICE AUTHORITY WITHIN COUNTY
  [DISTRICT BOUNDARIES]. (a) An [The] appraisal office has
  authority under this title in the territory included within
  [district's boundaries are the same as] the county's boundaries.
         (b)  This section does not preclude the county assessor-
  collectors who govern [board of directors of] two or more adjoining
  appraisal offices [districts] from providing for the operation of a
  consolidated appraisal office [district] by interlocal contract.
         SECTION 5.  The heading to Section 6.035, Tax Code, is
  amended to read as follows:
         Sec. 6.035.  RESTRICTIONS ON ELIGIBILITY AND CONDUCT OF
  COUNTY ASSESSOR-COLLECTORS [BOARD MEMBERS] AND CHIEF APPRAISERS
  AND THEIR RELATIVES.
         SECTION 6.  Sections 6.035(a), (b), and (d), Tax Code, are
  amended to read as follows:
         (a)  An individual is [ineligible to serve on an appraisal
  district board of directors and is] disqualified from employment as
  chief appraiser if the individual:
               (1)  is related within the second degree by
  consanguinity or affinity, as determined under Chapter 573,
  Government Code, to an individual who is engaged in the business of
  appraising property for compensation for use in proceedings under
  this title or of representing property owners for compensation in
  proceedings under this title in the appraisal office [district]; or
               (2)  owns property on which delinquent taxes have been
  owed to a taxing unit for more than 60 days after the date the
  individual knew or should have known of the delinquency unless:
                     (A)  the delinquent taxes and any penalties and
  interest are being paid under an installment payment agreement
  under Section 33.02; or
                     (B)  a suit to collect the delinquent taxes is
  deferred or abated under Section 33.06 or 33.065.
         (b)  A [member of an appraisal district board of directors or
  a] chief appraiser commits an offense if the [board member
  continues to hold office or the] chief appraiser remains employed
  knowing that an individual related within the second degree by
  consanguinity or affinity, as determined under Chapter 573,
  Government Code, to the [board member or] chief appraiser is
  engaged in the business of appraising property for compensation for
  use in proceedings under this title or of representing property
  owners for compensation in proceedings under this title in the
  appraisal office [district] in which the [member serves or the]
  chief appraiser is employed. An offense under this subsection is a
  Class B misdemeanor.
         (d)  An appraisal performed by a chief appraiser in a private
  capacity or by an individual related within the second degree by
  consanguinity or affinity, as determined under Chapter 573,
  Government Code, to the chief appraiser may not be used as evidence
  in a protest or challenge under Chapter 41 or an appeal under
  Chapter 42 concerning property that is taxable in the county for
  which the appraisal office that employs [district in which] the
  chief appraiser is established [employed].
         SECTION 7.  Sections 6.036(b), (c), and (f), Tax Code, are
  amended to read as follows:
         (b)  An appraisal office [district] may not enter into a
  contract with the county assessor-collector who governs [a member
  of the board of directors of] the appraisal office [district] or
  with a business entity in which the county assessor-collector [a
  member of the board] has a substantial interest.
         (c)  A taxing unit may not enter into a contract relating to
  the performance of an activity governed by this title with a
  business entity in which the county assessor-collector who governs
  [a member of the board of directors of] an appraisal office
  [district] in which the taxing unit participates [or with a
  business entity in which a member of the board] has a substantial
  interest.
         (f)  This section does not limit the application of any other
  law, including the common law relating to conflicts of interest, to
  a county assessor-collector [an appraisal district director].
         SECTION 8.  Section 6.05, Tax Code, is amended to read as
  follows:
         Sec. 6.05.  APPRAISAL OFFICE; CHIEF APPRAISER AND OTHER
  EMPLOYEES. (a) Except as authorized by Subsection (b) [of this
  section], each county assessor-collector [appraisal district]
  shall establish an appraisal office. The appraisal office must be
  located in the county for which the office [district] is
  established. An appraisal office [district] may establish branch
  appraisal offices outside the county for which the office
  [district] is established.
         (b)  The county assessor-collector who governs [board of
  directors of] an appraisal office [district] may contract with an
  appraisal office in another county [district or with a taxing unit
  in the district] to perform the duties of the appraisal office for
  the county [district].
         (c)  The county assessor-collector may serve as the chief
  appraiser for the appraisal office or may appoint another person to
  serve as the chief appraiser.
         (d)  A county assessor-collector who appoints another person
  to serve as the chief appraiser shall notify the comptroller and
  each taxing unit that participates in the appraisal office of that
  appointment.
         (e)  An appointed [The] chief appraiser [is the chief
  administrator of the appraisal office. Except as provided by
  Section 6.0501, the chief appraiser is appointed by and] serves at
  the pleasure of the county assessor-collector and acts on behalf of
  the county assessor-collector on all matters delegated to the
  appointed chief appraiser by the county assessor-collector
  [appraisal district board of directors. If a taxing unit performs
  the duties of the appraisal office pursuant to a contract, the
  assessor for the unit is the chief appraiser]. To be eligible to be
  appointed [or serve] as a chief appraiser or to serve as an
  appointed chief appraiser, a person must be certified as a
  registered professional appraiser under Section 1151.160,
  Occupations Code, possess an MAI professional designation from the
  Appraisal Institute, or possess an Assessment Administration
  Specialist (AAS), Certified Assessment Evaluator (CAE), or
  Residential Evaluation Specialist (RES) professional designation
  from the International Association of Assessing Officers. A person
  who is eligible to be appointed [or serve] as a chief appraiser or
  to serve as an appointed chief appraiser by having a professional
  designation described by this subsection must become certified as a
  registered professional appraiser under Section 1151.160,
  Occupations Code, not later than the fifth anniversary of the date
  the person is appointed or begins to serve as chief appraiser. A
  chief appraiser who is not eligible to be appointed or serve as
  chief appraiser may not perform an action authorized or required by
  law to be performed by a chief appraiser, including the
  preparation, certification, or submission of any part of the
  appraisal roll. Not later than January 1 of each year, a county
  assessor-collector who has appointed another person to serve as the
  chief appraiser shall notify the comptroller in writing that the
  chief appraiser is either eligible to be appointed or serve as the
  chief appraiser or not eligible to be appointed or serve as the
  chief appraiser.
         (f)  An appointed [(d) Except as provided by Section 6.0501,
  the] chief appraiser is entitled to compensation as provided by the
  budget adopted by the county assessor-collector who governs the
  appraisal office for performing duties delegated to the appointed
  chief appraiser by the county assessor-collector [board of
  directors]. The chief appraiser's compensation may not be directly
  or indirectly linked to an increase in the total market, appraised,
  or taxable value of property in the county for which the appraisal
  office is established [district]. The county assessor-collector
  [Except as provided by Section 6.0501, the chief appraiser] may
  employ and compensate professional, clerical, and other personnel
  as provided by the budget[, with the exception of a general counsel
  to the appraisal district].
         (g) [(e)]  The county assessor-collector may not appoint a
  person to serve as the chief appraiser if the person is related to
  the county assessor-collector within the second degree by affinity
  or within the third degree by consanguinity, as determined under
  Chapter 573, Government Code. [chief appraiser may delegate
  authority to his employees.
         [(f)  The chief appraiser may not employ any individual
  related to a member of the board of directors within the second
  degree by affinity or within the third degree by consanguinity, as
  determined under Chapter 573, Government Code.] A person commits an
  offense if the person intentionally or knowingly violates this
  subsection. An offense under this subsection is a misdemeanor
  punishable by a fine of not less than $100 or more than $1,000.
         (h) [(g)]  The chief appraiser is an officer of the appraisal
  office [district] for purposes of the nepotism law, Chapter 573,
  Government Code. An appraisal office [district] may not employ or
  contract with an individual or the spouse of an individual who is
  related to the chief appraiser within the first degree by
  consanguinity or affinity, as determined under Chapter 573,
  Government Code.
         (i)  A county assessor-collector who appoints another person
  to serve as the chief appraiser [(h) The board of directors of an
  appraisal district by resolution] may prescribe that specified
  actions of the chief appraiser relating to the finances or
  administration of the appraisal office [district] are subject to
  the approval of the county assessor-collector [board].
         [(i)  To ensure adherence with generally accepted appraisal
  practices, the board of directors of an appraisal district shall
  develop biennially a written plan for the periodic reappraisal of
  all property within the boundaries of the district according to the
  requirements of Section 25.18 and shall hold a public hearing to
  consider the proposed plan. Not later than the 10th day before the
  date of the hearing, the secretary of the board shall deliver to the
  presiding officer of the governing body of each taxing unit
  participating in the district a written notice of the date, time,
  and place for the hearing. Not later than September 15 of each
  even-numbered year, the board shall complete its hearings, make any
  amendments, and by resolution finally approve the plan. Copies of
  the approved plan shall be distributed to the presiding officer of
  the governing body of each taxing unit participating in the
  district and to the comptroller within 60 days of the approval
  date.]
         (j)  The county assessor-collector who governs [board of
  directors of] an appraisal office [district] may employ a general
  counsel to the office [district] to serve at the will of the county
  assessor-collector [board]. The general counsel shall provide
  counsel directly to the county assessor-collector [board] and
  perform other duties and responsibilities as determined by the
  county assessor-collector [board]. The general counsel is entitled
  to compensation as provided by the budget adopted by the county
  assessor-collector [board].
         SECTION 9.  Section 6.052, Tax Code, is amended to read as
  follows:
         Sec. 6.052.  TAXPAYER LIAISON OFFICER. (a) The county
  assessor-collector who governs [board of directors for] an
  appraisal office [district] created for a county with a population
  of more than 120,000 shall appoint a taxpayer liaison officer who
  shall serve at the pleasure of the county assessor-collector
  [board]. The taxpayer liaison officer [shall administer the public
  access functions required by Sections 6.04(d), (e), and (f), and]
  is responsible for resolving disputes not involving matters that
  may be protested under Section 41.41. In addition, the taxpayer
  liaison officer is responsible for receiving, and compiling a list
  of, comments and suggestions filed by the chief appraiser, a
  property owner, or a property owner's agent concerning the matters
  listed in Section 5.103(b) or any other matter related to the
  fairness and efficiency of the appraisal review board established
  for the appraisal office [district]. The taxpayer liaison officer
  shall forward to the comptroller comments and suggestions filed
  under this subsection in the form and manner prescribed by the
  comptroller.
         (b)  The taxpayer liaison officer shall provide to the public
  information and materials designed to assist property owners in
  understanding the appraisal process, protest procedures, the
  procedure for filing comments and suggestions under Subsection (a)
  [of this section or a complaint under Section 6.04(g)], and other
  matters. Information concerning the process for submitting
  comments and suggestions to the comptroller concerning an appraisal
  review board shall be provided at each protest hearing.
         (c)  The taxpayer liaison officer shall report to the county
  assessor-collector [board at each meeting] on the status of all
  comments and suggestions filed with the officer under Subsection
  (a) [of this section and all complaints filed with the board under
  Section 6.04(g)].
         (d)  The taxpayer liaison officer is entitled to
  compensation as provided by the budget adopted by the county
  assessor-collector [board of directors].
         (e)  The chief appraiser or any other person who performs
  appraisal or legal services for the appraisal office [district] for
  compensation is not eligible to be the taxpayer liaison officer.
         (f)  The taxpayer liaison officer for an appraisal office
  [district described by Section 6.41(d-1)] is responsible for
  providing clerical assistance to the pertinent state senators and
  state representatives [local administrative district judge] in the
  selection of appraisal review board members. The officer shall
  deliver to the state senators and state representatives [local
  administrative district judge] any applications to serve on the
  board that are submitted to the officer and shall perform other
  duties as requested by the state senators and state representatives
  [local administrative district judge]. The officer may not
  influence the process for selecting appraisal review board members.
         SECTION 10.  Section 6.054, Tax Code, is amended to read as
  follows:
         Sec. 6.054.  RESTRICTION ON EMPLOYMENT BY APPRAISAL OFFICE
  [DISTRICT]. An individual may not be employed by an appraisal
  office [district] if the individual is:
               (1)  an officer of a taxing unit that participates in
  the appraisal office [district]; or
               (2)  an employee of a taxing unit that participates in
  the appraisal office [district].
         SECTION 11.  The heading to Section 6.06, Tax Code, is
  amended to read as follows:
         Sec. 6.06.  APPRAISAL OFFICE [DISTRICT] BUDGET AND
  FINANCING.
         SECTION 12.  Sections 6.06(a), (b), (c), (d), (f), (g), (h),
  (i), (j), and (k), Tax Code, are amended to read as follows:
         (a)  Each year the county assessor-collector who governs an
  appraisal office, with the assistance of the chief appraiser, shall
  prepare a proposed budget for the operations of the office
  [district] for the following tax year and shall submit copies to
  each taxing unit participating in the office [district and to the
  district board of directors] before June 15. The budget must [He
  shall] include [in the budget] a list showing each proposed
  position, the proposed salary for the position, all benefits
  proposed for the position, each proposed capital expenditure, and
  an estimate of the amount of the budget that will be allocated to
  each taxing unit. Each taxing unit [entitled to vote on the
  appointment of board members] shall maintain a copy of the proposed
  budget for public inspection at its principal administrative
  office.
         (b)  The county assessor-collector [board of directors]
  shall hold a public hearing to consider the budget. The chief
  appraiser [secretary of the board] shall deliver to the presiding
  officer of the governing body of each taxing unit participating in
  the appraisal office [district] not later than the 10th day before
  the date of the hearing a written notice of the date, time, and
  place fixed for the hearing. The county assessor-collector [board]
  shall complete the [its] hearings, make any amendments to the
  proposed budget [it desires], and finally approve a budget before
  September 15. If the governing bodies of a majority of the taxing
  units participating in the appraisal office [entitled to vote on
  the appointment of board members] adopt resolutions disapproving a
  budget and file them with the county assessor-collector [secretary
  of the board] within 30 days after its adoption, the budget does not
  take effect, and the county assessor-collector [board] shall adopt
  a new budget within 30 days of the disapproval.
         (c)  The county assessor-collector [board] may amend the
  approved budget at any time[,] but [the secretary of the board] must
  deliver a written copy of a proposed amendment to the presiding
  officer of the governing body of each taxing unit participating in
  the appraisal office [district] not later than the 30th day before
  the date the county assessor-collector [board] acts on it.
         (d)  Each taxing unit participating in the appraisal office
  [district] is allocated a portion of the amount of the budget equal
  to the proportion that the total dollar amount of property taxes
  imposed in the county for which the office is established
  [district] by the taxing unit for the tax year in which the budget
  proposal is prepared bears to the sum of the total dollar amount of
  property taxes imposed in the county [district] by each
  participating taxing unit for that year. If a taxing unit
  participates in two or more appraisal offices [districts], only the
  taxes imposed in the appropriate county [a district] are used to
  calculate the taxing unit's cost allocations in that office
  [district]. If the number of real property parcels in a taxing unit
  is less than 5 percent of the total number of real property parcels
  in the county [district] and the taxing unit imposes in excess of 25
  percent of the total amount of the property taxes imposed in the
  county [district] by all of the participating taxing units for a
  year, the taxing unit's allocation may not exceed a percentage of
  the appraisal office's [district's] budget equal to three times the
  taxing unit's percentage of the total number of real property
  parcels appraised by the office [district].
         (f)  Payments shall be made to a depository designated by the
  county assessor-collector [district board of directors]. The
  appraisal office's [district's] funds may be disbursed only by a
  written check, draft, or order signed by the county
  assessor-collector [chairman and secretary of the board] or, if
  authorized by [resolution of] the county assessor-collector
  [board], by the chief appraiser.
         (g)  If a taxing unit decides not to impose taxes for any tax
  year, the taxing unit is not liable for any of the costs of
  operating the appraisal office [district] in that year, and those
  costs are allocated among the other taxing units as if that taxing
  unit had not imposed taxes in the year used to calculate
  allocations. However, if that taxing unit has made any payments, it
  is not entitled to a refund.
         (h)  If a newly formed taxing unit or a taxing unit that did
  not impose taxes in the preceding year imposes taxes in any tax
  year, that taxing unit is allocated a portion of the amount budgeted
  to operate the appraisal office [district] as if it had imposed
  taxes in the preceding year, except that the amount of taxes the
  taxing unit imposes in the current year is used to calculate its
  allocation. Before the amount of taxes to be imposed for the
  current year is known, the allocation may be based on an estimate to
  which the county assessor-collector who governs the appraisal
  office [district board of directors] and the governing body of the
  taxing unit agree, and the payments made after that amount is known
  shall be adjusted to reflect the amount imposed. The payments of a
  newly formed taxing unit that has no source of funds are postponed
  until the taxing unit has received adequate tax or other revenues.
         (i)  The fiscal year of an appraisal office [district] is the
  calendar year unless the governing bodies of three-fourths of the
  taxing units that participate in the office [entitled to vote on the
  appointment of board members] adopt resolutions proposing a
  different fiscal year and file them with the county
  assessor-collector who governs the office [secretary of the board]
  not more than 12 and not less than eight months before the first day
  of the fiscal year proposed by the resolutions. If the fiscal year
  of an appraisal office [district] is changed under this subsection,
  the county assessor-collector, with the assistance of the chief
  appraiser, shall prepare a proposed budget for the fiscal year as
  provided by Subsection (a) [of this section] before the 15th day of
  the seventh month preceding the first day of the fiscal year
  established by the change, and the county assessor-collector [board
  of directors] shall adopt a budget for the fiscal year as provided
  by Subsection (b) [of this section] before the 15th day of the
  fourth month preceding the first day of the fiscal year established
  by the change. The [Unless the appraisal district adopts a
  different method of allocation under Section 6.061 of this code,
  the] allocation of the budget to each taxing unit shall be
  calculated as provided by Subsection (d) [of this section] using
  the amount of property taxes imposed by each participating taxing
  unit in the most recent tax year preceding the fiscal year
  established by the change for which the necessary information is
  available. Each taxing unit shall pay its allocation as provided by
  Subsection (e) [of this section], except that the first payment
  shall be made before the first day of the fiscal year established by
  the change and subsequent payments shall be made quarterly. In the
  year in which a change in the fiscal year occurs, the budget that
  takes effect on January 1 of that year may be amended as necessary
  as provided by Subsection (c) [of this section] in order to
  accomplish the change in fiscal years.
         (j)  If the total amount of the payments made or due to be
  made by the taxing units participating in an appraisal office
  [district] exceeds the amount actually spent or obligated to be
  spent during the fiscal year for which the payments were made, the
  chief appraiser shall credit the excess amount against each taxing
  unit's allocated payments for the following year in proportion to
  the amount of each taxing unit's budget allocation for the fiscal
  year for which the payments were made. If a taxing unit that paid
  its allocated amount is not allocated a portion of the appraisal
  office's [district's] budget for the following fiscal year, the
  chief appraiser shall refund to the taxing unit its proportionate
  share of the excess funds not later than the 150th day after the end
  of the fiscal year for which the payments were made.
         (k)  For good cause shown, the county assessor-collector who
  governs an appraisal office [board of directors] may waive the
  penalty and interest on a delinquent payment under Subsection (e).
         SECTION 13.  Sections 6.062(a) and (c), Tax Code, are
  amended to read as follows:
         (a)  Not later than the 10th day before the date of the public
  hearing at which the county assessor-collector who governs an
  appraisal office [board of directors] considers the appraisal
  office [district] budget, the chief appraiser shall give notice of
  the public hearing by publishing the notice in a newspaper having
  general circulation in the county for which the appraisal office
  [district] is established. The notice may not be smaller than
  one-quarter page of a standard-size or tabloid-size newspaper and
  may not be published in the part of the paper in which legal notices
  and classified advertisements appear.
         (c)  The notice must state that the appraisal office
  [district] is supported solely by payments from the local taxing
  units served by the appraisal office [district]. The notice must
  also contain the following statement: "If approved by the county
  assessor-collector who governs the appraisal office [district
  board of directors] at the public hearing, this proposed budget
  will take effect automatically unless disapproved by the governing
  bodies of the taxing units [county, school districts, cities, and
  towns] served by the appraisal office [district]. A copy of the
  proposed budget is available for public inspection in the office of
  each of those governing bodies."
         SECTION 14.  Section 6.063, Tax Code, is amended to read as
  follows:
         Sec. 6.063.  FINANCIAL AUDIT. (a) At least once each year,
  the county assessor-collector who governs [board of directors of]
  an appraisal office [district] shall have prepared an audit of its
  affairs by an independent certified public accountant or a firm of
  independent certified public accountants.
         (b)  The report of the audit is a public record. A copy of
  the report shall be delivered to the presiding officer of the
  governing body of each taxing unit that participates in the
  appraisal office [eligible to vote on the appointment of district
  directors], and a reasonable number of copies shall be available
  for inspection at the appraisal office.
         SECTION 15.  The heading to Section 6.09, Tax Code, is
  amended to read as follows:
         Sec. 6.09.  DESIGNATION OF APPRAISAL OFFICE [DISTRICT]
  DEPOSITORY.
         SECTION 16.  Sections 6.09(a), (b), and (c), Tax Code, are
  amended to read as follows:
         (a)  The appraisal office [district] depository must be a
  banking corporation incorporated under the laws of this state or
  the United States or a savings and loan association in this state
  whose deposits are insured by the Federal Deposit [Savings and
  Loan] Insurance Corporation.
         (b)  The county assessor-collector who governs the appraisal
  office [district board of directors] shall designate as the office
  [district] depository the financial institution or institutions
  that offer the most favorable terms and conditions for the handling
  of the office's [district's] funds.
         (c)  The county assessor-collector [board] shall solicit
  bids to be designated as depository for the appraisal office
  [district]. The depository when designated shall serve for a term
  of two years and until its successor is designated and has
  qualified. The county assessor-collector [board] and the
  depository may agree to extend a depository contract for one
  additional two-year period.
         SECTION 17.  Section 6.11, Tax Code, is amended to read as
  follows:
         Sec. 6.11.  PURCHASING AND CONTRACTING AUTHORITY. (a) An
  appraisal office [district] is subject to the same requirements and
  has the same purchasing and contracting authority as a municipality
  under Chapter 252, Local Government Code.
         (b)  For purposes of this section, all the provisions of
  Chapter 252, Local Government Code, applicable to a municipality or
  to purchases and contracts by a municipality apply to an appraisal
  office [district] and to purchases and contracts by an appraisal
  office [district] to the extent they can be made applicable, and all
  references to the municipality in that chapter mean the appraisal
  office [district]. For purposes of applying Section 252.061, Local
  Government Code, to an appraisal office [district], any resident of
  the county for which the appraisal office is established [district]
  may seek an injunction under that section. Sections 252.062 and
  252.063, Local Government Code, apply to an officer or employee of
  an appraisal office [district] in the same manner as those sections
  apply to a municipal officer or employee.
         SECTION 18.  Sections 6.12(a), (b), (c), and (e), Tax Code,
  are amended to read as follows:
         (a)  The state senators and state representatives whose
  districts contain any part of the territory included in the county
  for which an [chief appraiser of each] appraisal office is
  established [district] shall by majority vote appoint, with the
  advice [and consent] of and in the manner provided by the county
  assessor-collector who governs the office [board of directors], an
  agricultural advisory board composed of three or more members as
  determined by the county assessor-collector [board]. Each state
  senator and state representative is entitled to one vote for a
  candidate for each position to be filled on the board.
         (b)  The agricultural advisory board members must be
  landowners of the county for which the appraisal office is
  established [district] whose land qualifies for appraisal under
  Subchapter C, D, E, or H, Chapter 23, and who have been residents of
  the county [district] for at least five years.
         (c)  Members of the board serve for [staggered] terms of two
  years. The county assessor-collector who governs the appraisal
  office shall provide for staggered terms, so that the terms of as
  close to one-half of the members as possible expire each year [In
  making the initial appointments of members of the agricultural
  advisory board the chief appraiser shall appoint for a term of one
  year one-half of the members, or if the number of members is an odd
  number, one fewer than a majority of the membership].
         (e)  An employee or officer of an appraisal office [district]
  may not be appointed and may not serve as a member of the
  agricultural advisory board.
         SECTION 19.  Section 6.13, Tax Code, is amended to read as
  follows:
         Sec. 6.13.  APPRAISAL OFFICE [DISTRICT] RECORDS. The
  preservation, microfilming, destruction, or other disposition of
  the records of each appraisal office [district] is subject to the
  requirements of Subtitle C, Title 6, Local Government Code, and
  rules adopted under that subtitle.
         SECTION 20.  Sections 6.14(a) and (b), Tax Code, are amended
  to read as follows:
         (a)  On the written request of the Texas Legislative Council,
  an appraisal office [district] that maintains its appraisal records
  in electronic format shall provide a copy of the information or data
  maintained in the office's [district's] appraisal records to the
  council without charge.
         (b)  The appraisal office [district] shall provide the
  requested information or data to the council as soon as practicable
  but not later than the 30th day after the date the request is
  received by the office [district].
         SECTION 21.  Sections 6.16(a) and (c), Tax Code, are amended
  to read as follows:
         (a)  The chief appraiser of an appraisal office [district]
  may maintain a list of the following individuals who have
  designated themselves as an individual who will provide free
  assistance to an owner of residential property that is occupied by
  the owner as the owner's principal residence:
               (1)  a real estate broker or sales agent licensed under
  Chapter 1101, Occupations Code;
               (2)  a real estate appraiser licensed or certified
  under Chapter 1103, Occupations Code; or
               (3)  a property tax consultant registered under Chapter
  1152, Occupations Code.
         (c)  A list must:
               (1)  be organized by county;
               (2)  be available on the appraisal office's
  [district's] Internet website, if the appraisal office [district]
  maintains a website; and
               (3)  provide the name, contact information, and job
  title of each individual who will provide free assistance.
         SECTION 22.  Sections 6.24(a) and (b), Tax Code, are amended
  to read as follows:
         (a)  The governing body of a taxing unit other than a county
  may contract as provided by Chapter 791, Government Code, [the
  Interlocal Cooperation Act] with the governing body of another
  taxing unit or with the county assessor-collector who governs
  [board of directors of] an appraisal office [district] for the
  other taxing unit or the office [district] to perform duties
  relating to the assessment or collection of taxes.
         (b)  The commissioners court of a county with the approval of
  the county assessor-collector may contract as provided by Chapter
  791, Government Code, [the Interlocal Cooperation Act] with the
  governing body of another taxing unit in the county [or with the
  board of directors of the appraisal district] for the other taxing
  unit [or the district] to perform duties relating to the assessment
  or collection of taxes for the county. The commissioners court may
  contract as provided by Chapter 791, Government Code, with the
  county assessor-collector for the appraisal office established for
  the county to perform duties relating to the assessment or
  collection of taxes for the county. If a county contracts to have
  its taxes assessed and collected by another taxing unit or by the
  appraisal office [district, except as provided by Subsection (c)],
  the contract shall require the other taxing unit or the office
  [district] to assess and collect all taxes the county is required to
  assess and collect.
         SECTION 23.  Sections 6.26(a), (b), (c), (e), (f), and (j),
  Tax Code, are amended to read as follows:
         (a)  The qualified voters residing in the county for which an
  appraisal office is established [district] by petition submitted to
  the county clerk of the county [principally served by the appraisal
  district] may require that an election be held to determine whether
  or not to require the appraisal office [district], the county
  assessor-collector, or a specified taxing unit within the county
  [appraisal district] to assess, collect, or assess and collect
  property taxes on property appraised by the office [district] for
  all taxing units.
         (b)  The qualified voters of a taxing unit that assesses,
  collects, or assesses and collects its own property taxes by
  petition submitted to the governing body of the taxing unit may
  require that an election be held to determine whether or not to
  require the appraisal office [district], the county
  assessor-collector, or another taxing unit that is assessing and
  collecting property taxes to assess, collect, or assess and collect
  the taxing unit's property taxes.
         (c)  A petition is valid if:
               (1)  it states that it is intended to require an
  election in the county for which the appraisal office is
  established [district] or in the taxing unit on the question of
  consolidation of assessing or collecting functions or both;
               (2)  it states the functions to be consolidated and
  identifies the entity or office that will be required to perform the
  functions; and
               (3)  it is signed by a number of qualified voters equal
  to at least 10 percent of the number of qualified voters, according
  to the most recent official list of qualified voters, residing in
  the county for which the appraisal office is established
  [district], if the petition is authorized by Subsection (a) [of
  this section], or in the taxing unit, if the petition is authorized
  by Subsection (b) [of this section], or by 10,000 qualified voters,
  whichever number is less.
         (e)  If the commissioners court or the governing body finds
  that the petition is valid, it shall order that an election be held
  in the county for which the appraisal office is established
  [district] or in the taxing unit on the next uniform election date
  prescribed by the [Texas] Election Code that is more than 60 days
  after the last day on which it could have acted to approve or
  disapprove the petition. At the election, the ballots shall be
  prepared to permit voting for or against the proposition:
  "Requiring the (name of entity or office) to (assess, collect, or
  assess and collect, as applicable) property taxes for (all taxing
  units in [the appraisal district for] ________ County [county] or
  name of taxing unit or taxing units, as applicable)."
         (f)  If a majority of the qualified voters voting on the
  question in the election favor the proposition, the entity or
  office named by the ballot shall perform the functions named by the
  ballot beginning with the next time property taxes are assessed or
  collected, as applicable, that is more than 90 days after the date
  of the election. If the governing bodies, [(]and the county
  assessor-collector who governs the appraisal office [district
  board of directors] when the office [district] is involved,[)]
  agree, a function may be consolidated when performance of the
  function begins in less than 90 days after the date of the election.
         (j)  An appraisal office [district] may not be required by an
  election to assess, collect, or assess and collect taxes on
  property outside the [district's] boundaries of the county for
  which the office is established. A taxing unit may not be required
  by an election to assess, collect, or assess and collect taxes on
  property outside the boundaries of the county for which the
  appraisal office [district] that appraises property for the taxing
  unit is established.
         SECTION 24.  Section 6.29(b), Tax Code, is amended to read as
  follows:
         (b)  A taxing unit whose taxes are collected by the collector
  for another taxing unit, by an officer or employee of another taxing
  unit or of an appraisal office [district], or by any other person
  other than the taxing unit's own collector may require that
  collector, officer, employee, or other person to give bond
  conditioned on the faithful performance of that person's [his]
  duties. To be effective, the bond must be made payable to and must
  be approved by and paid for by the governing body of the taxing unit
  requiring bond in an amount determined by the governing body. The
  governing body may prescribe additional requirements for the bond.
         SECTION 25.  Section 6.41, Tax Code, is amended to read as
  follows:
         Sec. 6.41.  APPRAISAL REVIEW BOARD.  (a)  The appraisal
  review board is established for each appraisal office [district].
         (b)  Except as provided by Subsection (b-1) or (b-2), an
  appraisal review board consists of three members.
         (b-1)  The county assessor-collector who governs an
  appraisal office [An appraisal district board of directors by
  resolution of a majority of the board's members] may increase the
  size of the office's [district's] appraisal review board to the
  number of members the county assessor-collector [board of
  directors] considers appropriate.
         (b-2)  The county assessor-collector who governs an
  appraisal office [An appraisal district board of directors for a
  district] established in a county with a population of one million
  or more [by resolution of a majority of the board's members] shall
  increase the size of the office's [district's] appraisal review
  board to the number of members the county assessor-collector [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.
         (c)  To be eligible to serve on the board, an individual must
  be a resident of the county for which the appraisal office is
  established [district] and must have resided in the county
  [district] for at least two years.
         (d)  Members [Except as provided by Subsection (d-1),
  members] of the board are appointed by majority vote of the state
  senators and state representatives whose districts contain any part
  of the territory included in the county for which [resolution of a
  majority of] the appraisal office is established in the manner
  provided by the county assessor-collector who governs the office 
  [district board of directors]. Each state senator and state
  representative is entitled to one vote for a candidate for each
  position to be filled on the board. A vacancy on the board is filled
  in the same manner for the unexpired portion of the term.
         (e) [(d-1)  In a county with a population of 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 office [district] or to the
  [appraisal review] board from persons seeking appointment as a
  member of the [appraisal review] board shall be delivered to the
  pertinent state senators and state representatives [local
  administrative district judge]. The appraisal office [district]
  may provide the state senators and state representatives [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 office [district].
         (f) [(d-2)  A local administrative district judge making
  appointments under Subsection (d-1) may make such appointments
  directly or may, by written order, appoint from three to five
  persons to perform the duties of appraisal review board
  commissioner. If the local administrative district judge chooses
  to appoint appraisal review board commissioners, each commissioner
  shall possess the same qualifications as those required of an
  appraisal review board member.
         [(d-3)]  The appraisal office [local administrative judge
  making appointments under Subsection (d-1)] shall [cause the proper
  officer to] notify the persons appointed to the board of their [such
  appointees of such] appointment[,] and when and where they are to
  appear.
         (g) [(d-4)  If appraisal review board commissioners are
  appointed under Subsection (d-2), they shall meet as directed by
  the local administrative district judge in order to complete their
  duties.
         [(d-5)]  The appraisal office [district of the county] shall
  provide to the pertinent state senators and state representatives
  [local administrative district judge, or to the appraisal review
  board commissioners, as the case may be,] the number of [appraisal
  review] board positions that require appointment and shall provide
  whatever reasonable assistance is requested by the state senators
  and state representatives to make the appointments [local
  administrative district judge or the commissioners].
         (h) [(d-6)  An appraisal review board commissioner is not
  disqualified from serving as a member of the appraisal review
  board.
         [(d-7)  If appraisal review board commissioners are
  appointed under this section, the commissioners shall return a list
  of proposed appraisal review board members to the local
  administrative district judge at a time directed by such local
  administrative judge, but in no event later than January 1 of each
  year. Such list shall be composed of no less than five (5) names in
  excess of the number of appraisal review board positions to be
  filled by the local administrative district judge. The local
  administrative judge may accept the proposed names, or reject the
  proposed list and return the proposed list to the commissioners
  upon which the commissioners shall propose a revised list until the
  local administrative judge accepts the list.
         [(d-8)  Any appraisal review board commissioners appointed
  pursuant to this section shall hold office for a term of one year
  beginning January 1. A commissioner may be appointed to successive
  terms at the discretion of the local administrative district judge.
         [(d-9)]  In selecting individuals who are to serve as members
  of the appraisal review board for an appraisal office [district]
  described by Subsection (b-2), the pertinent state senators and
  state representatives [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.
         (i) [(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.
         [(e)]  Members of the board hold office for terms of two
  years beginning January 1. The county assessor-collector who
  governs the appraisal office [district board of directors by
  resolution] shall provide for staggered terms, so that the terms of
  as close to one-half of the members as possible expire each year.
  [In making the initial or subsequent appointments, the board of
  directors or the local administrative district judge or the judge's
  designee shall designate those members who serve terms of one year
  as needed to comply with this subsection.]
         (j) [(f)]  A member of the board may be removed from the
  board by a majority vote of the state senators and state
  representatives [appraisal district board of directors, or by the
  local administrative district judge or the judge's designee, as
  applicable,] that appointed the member. Grounds for removal are:
               (1)  a violation of Section 6.412, 6.413, 41.66(f), or
  41.69;
               (2)  good cause relating to the attendance of members
  at called meetings of the board as established by written policy
  adopted by the county assessor-collector who governs [a majority
  of] the appraisal office [district board of directors]; or
               (3)  evidence of repeated bias or misconduct.
         (k) [(g)]  Subsection (a) does not preclude the county
  assessor-collectors who govern the appraisal offices established
  for [boards of directors of] two or more adjoining counties
  [appraisal districts] from providing for the operation of a
  consolidated appraisal review board by interlocal contract.
         (l) [(h)]  When [adjoining] appraisal offices established
  for two or more adjoining counties [districts] by interlocal
  contract have provided for the operation of a consolidated
  appraisal review board:
               (1)  a reference in this or another section of this code
  to the appraisal office [district] means the [adjoining] appraisal
  offices established for the adjoining counties [districts];
               (2)  a reference in this or another section of this code
  to the county assessor-collector who governs the appraisal office
  [district board of directors] means the county assessor-collectors
  who govern [boards of directors of] the [adjoining] appraisal
  offices established for the adjoining counties [districts];
               (3)  a provision of this code that applies to an
  appraisal review board also applies to the consolidated appraisal
  review board; and
               (4)  a reference in this code to the appraisal review
  board shall be construed to also refer to the consolidated
  appraisal review board.
         (m) [(i)  This subsection applies only to an appraisal
  district described by Subsection (d-1).] A chief appraiser or
  another employee or agent of the appraisal office [district], a
  member of the appraisal review board for the appraisal office
  [district], the county assessor collector who governs [a member of
  the board of directors of] the appraisal office [district], a
  property tax consultant, or an agent of a property owner commits an
  offense if the person communicates with a state senator or state
  representative whose district contains any part of the territory
  included in the county for which the appraisal office is
  established [the local administrative district judge] regarding
  the appointment of appraisal review board members. This subsection
  does not apply to:
               (1)  a communication between a member of the appraisal
  review board and a state senator or state representative [the local
  administrative district judge] regarding the member's
  reappointment to the board;
               (2)  a communication between the taxpayer liaison
  officer for the appraisal office [district] and a state senator or
  state representative [the local administrative district judge] in
  the course of the performance of the officer's clerical duties so
  long as the officer does not offer an opinion or comment regarding
  the appointment of appraisal review board members;
               (3)  a communication between a chief appraiser or
  another employee or agent of the appraisal office [district], a
  member of the appraisal review board for the appraisal office
  [district], or the county assessor-collector who governs [a member
  of the board of directors of] the appraisal office [district] and a
  state senator or state representative [the local administrative
  district judge] regarding information relating to or described by
  Subsection (e), (g), or (j) [(d-1), (d-5), or (f)] of this section
  or Section 411.1296, Government Code;
               (4)  a communication between a property tax consultant
  or a property owner or an agent of the property owner and the
  taxpayer liaison officer for the appraisal office [district]
  regarding information relating to or described by Subsection (j)
  [(f). The taxpayer liaison officer for the appraisal district
  shall report the contents of the communication relating to or
  described by Subsection (f) to the local administrative district
  judge]; or
               (5)  a communication between a property tax consultant
  or a property owner or an agent of the property owner and a state
  senator or state representative [the local administrative district
  judge] regarding information relating to or described by Subsection
  (j) [(f)].
         (n)  The taxpayer liaison officer for the appraisal office
  shall report the contents of the communication described by
  Subsection (m)(4) to the pertinent state senators and state
  representatives.
         (o) [(j)]  A chief appraiser or another employee or agent of
  an appraisal office [district] commits an offense if the person
  communicates with a member of the appraisal review board for the
  appraisal office [district], the county assessor-collector who
  governs [a member of the board of directors of] the appraisal office
  [district], or a state senator or state representative whose
  district contains any part of the territory included in the county
  for which [, if] the appraisal office is established [district is an
  appraisal district described by Subsection (d-1), the local
  administrative district judge] regarding a ranking, scoring, or
  reporting of the percentage by which the appraisal review board or a
  panel of the board reduces the appraised value of property.
         (p) [(k)]  An offense under Subsection (m) or (o) [(i) or
  (j)] is a Class A misdemeanor.
         SECTION 26.  Sections 6.411(a), (b), and (c-1), Tax Code,
  are amended to read as follows:
         (a)  A member of an appraisal review board commits an offense
  if the member communicates with the chief appraiser or another
  employee or the county assessor-collector who governs [a member of
  the board of directors of] the appraisal office [district] for
  which the appraisal review board is established in violation of
  Section 41.66(f).
         (b)  A chief appraiser or another employee of an appraisal
  office [district], the county assessor-collector who governs [a
  member of a board of directors of] an appraisal office [district],
  or a property tax consultant or attorney representing a party to a
  proceeding before the appraisal review board commits an offense if
  the person communicates with a member of the appraisal review board
  established for the appraisal office [district] with the intent to
  influence a decision by the member in the member's capacity as a
  member of the appraisal review board.
         (c-1)  This section does not apply to communications with a
  member of an appraisal review board by the chief appraiser or
  another employee or the county assessor-collector who governs [a
  member of the board of directors of] an appraisal office [district]
  or a property tax consultant or attorney representing a party to a
  proceeding before the appraisal review board:
               (1)  during a hearing on a protest or other proceeding
  before the appraisal review board;
               (2)  that constitute social conversation;
               (3)  that are specifically limited to and involve
  administrative, clerical, or logistical matters related to the
  scheduling and operation of hearings, the processing of documents,
  the issuance of orders, notices, and subpoenas, and the operation,
  appointment, composition, or attendance at training of the
  appraisal review board; or
               (4)  that are necessary and appropriate to enable the
  county assessor-collector who governs [board of directors of] the
  appraisal office or the pertinent state senators and state
  representatives [district] to determine whether to appoint,
  reappoint, or remove a person as a member or the chairman or
  secretary of the appraisal review board.
         SECTION 27.  Section 6.412, Tax Code, is amended to read as
  follows:
         Sec. 6.412.  RESTRICTIONS ON ELIGIBILITY OF BOARD MEMBERS.  
  (a)  An individual is ineligible to serve on an appraisal review
  board if the individual:
               (1)  is related within the second degree by
  consanguinity or affinity, as determined under Chapter 573,
  Government Code, to an individual who is engaged in the business of
  appraising property for compensation for use in proceedings under
  this title or of representing property owners for compensation in
  proceedings under this title in the appraisal office [district] for
  which the appraisal review board is established;
               (2)  owns property on which delinquent taxes have been
  owed to a taxing unit for more than 60 days after the date the
  individual knew or should have known of the delinquency unless:
                     (A)  the delinquent taxes and any penalties and
  interest are being paid under an installment payment agreement
  under Section 33.02; or
                     (B)  a suit to collect the delinquent taxes is
  deferred or abated under Section 33.06 or 33.065; or
               (3)  is related within the third degree by
  consanguinity or within the second degree by affinity, as
  determined under Chapter 573, Government Code, to [a member of]:
                     (A)  the county assessor-collector who governs
  the appraisal office [district's board of directors]; or
                     (B)  a member of the appraisal review board.
         (b)  A member of an appraisal review board commits an offense
  if the board member continues to hold office knowing that an
  individual related within the second degree by consanguinity or
  affinity, as determined under Chapter 573, Government Code, to the
  board member is engaged in the business of appraising property for
  compensation for use in proceedings under this title or of
  representing property owners for compensation in proceedings under
  this title in the appraisal office [district] for which the
  appraisal review board is established. An offense under this
  subsection is a Class B misdemeanor.
         (c)  A person is ineligible to serve on the appraisal review
  board if the person is the county assessor-collector who governs
  the appraisal office [a member of the board of directors], an
  officer[,] or employee of the appraisal office [district], an
  employee of the comptroller, or a member of the governing body,
  officer, or employee of a taxing unit.
         (d)  A person is ineligible to serve on the appraisal review
  board of an appraisal office [district established for a county
  described by Section 6.41(d-1)] if the person:
               (1)  is a former county assessor-collector who governed
  the appraisal office or a [member of the board of directors,] former
  officer[,] or former employee of the appraisal office [district];
               (2)  served as a member of the governing body or officer
  of a taxing unit for which the appraisal office [district]
  appraises property, until the fourth anniversary of the date the
  person ceased to be a member or officer;
               (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 on the appraisal review
  board.
         SECTION 28.  Sections 6.413(a), (b), and (c), Tax Code, are
  amended to read as follows:
         (a)  An individual is not eligible to be appointed to or to
  serve on the appraisal review board established for an appraisal
  office [district] if the individual or a business entity in which
  the individual has a substantial interest is a party to a contract
  with the appraisal office [district] or with a taxing unit that
  participates in the appraisal office [district].
         (b)  An appraisal office [district] may not enter into a
  contract with a member of the appraisal review board established
  for the appraisal office [district] or with a business entity in
  which a member of the appraisal review board has a substantial
  interest.
         (c)  A taxing unit may not enter into a contract with a member
  of the appraisal review board established for an appraisal office
  [district] in which the taxing unit participates or with a business
  entity in which a member of the appraisal review board has a
  substantial interest.
         SECTION 29.  Sections 6.414(a) and (f), Tax Code, are
  amended to read as follows:
         (a)  The county assessor-collector who governs [board of
  directors of] an appraisal office [district by resolution of a
  majority of the members] may provide for a number of auxiliary
  appraisal review board members that the county assessor-collector
  [board] considers appropriate to hear taxpayer protests before the
  appraisal review board and to assist the board in performing its
  duties.
         (f)  An auxiliary board member is entitled to compensation as
  provided by the appraisal office [district] budget and is not
  entitled to a per diem or reimbursement of expenses under Section
  6.42(c).
         SECTION 30.  Sections 6.42(a) and (c), Tax Code, are amended
  to read as follows:
         (a)  A majority of the appraisal review board constitutes a
  quorum. The county assessor-collector who governs the appraisal
  office [local administrative district judge under Subchapter D,
  Chapter 74, Government Code, in the county in which the appraisal
  district is established] shall select a chairman and a secretary
  from among the members of the appraisal review board. The county
  assessor-collector who governs the appraisal office [judge] is
  encouraged to select as chairman 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 set by the
  appraisal office [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 office [district]
  budget.
         SECTION 31.  The heading to Section 6.425, Tax Code, is
  amended to read as follows:
         Sec. 6.425.  SPECIAL APPRAISAL REVIEW BOARD PANELS IN
  CERTAIN OFFICES [DISTRICTS].
         SECTION 32.  Sections 6.425(a), (b), and (e), Tax Code, are
  amended to read as follows:
         (a)  This section applies only to the appraisal review board
  for an appraisal office [district] described by Section 6.41(b-2).
         (b)  The appraisal review board shall establish special
  panels to conduct protest hearings under Chapter 41 relating to
  property that:
               (1)  has an appraised value as determined by the
  appraisal office [district] equal to or greater than the minimum
  eligibility amount determined as provided by Subsection (g); and
               (2)  is included in one of the following
  classifications:
                     (A)  commercial real [and personal] property;
                     (B)  real [and personal] property of utilities;
                     (C)  industrial and manufacturing real [and
  personal] property; and
                     (D)  multifamily residential real property.
         (e)  Notwithstanding Subsection (d), 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
  pertinent state senators and state representatives [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
  holds a bachelor's degree in any field.
         SECTION 33.  Sections 6.43(a), (b), (c), and (e), Tax Code,
  are amended to read as follows:
         (a)  The appraisal review board may employ legal counsel as
  provided by the appraisal office [district] budget or use the
  services of the county attorney.
         (b)  Except as provided by Subsection (c), an attorney may
  not serve as legal counsel for the appraisal review board if the
  attorney or a member of the attorney's law firm has during the year
  before the date of the appraisal review board's hiring of the
  attorney represented a property owner who owns property in the
  county for which the appraisal office is established [district], a
  taxing unit that participates in the appraisal office [district],
  or the appraisal office [district] in a matter addressed by Section
  1.111 or 25.25 of this code, Subtitle F of this title, or Subchapter
  Z, Chapter 2003, Government Code.
         (c)  The county attorney for the county in which the
  appraisal office [district] is established may provide legal
  services to the appraisal review board notwithstanding that the
  county attorney or an assistant to the county attorney represents
  or has represented the appraisal office [district] or a taxing unit
  that participates in the appraisal office [district] in any matter.
         (e)  An appraisal office [district] may specify in its budget
  whether the appraisal review board may employ legal counsel or must
  use the services of the county attorney. If the budget authorizes
  the board to employ legal counsel, the budget must provide for
  reasonable compensation to be paid to the attorney serving as legal
  counsel. An appraisal office [district] may not require the board
  to employ a specific attorney as legal counsel.
         SECTION 34.  Section 11.01, Tax Code, is amended to read as
  follows:
         Sec. 11.01.  REAL [AND TANGIBLE PERSONAL] PROPERTY. (a) All
  real [and tangible personal] property that this state has
  jurisdiction to tax is taxable unless exempt by law.
         (b)  This state has jurisdiction to tax real property if
  located in this state.
         (c)  For a tax year that begins after December 31, 2023,
  tangible personal property is not taxable.
         (d)  On and after January 1, 2024, a provision of this code or
  another law that would otherwise apply to the taxation of tangible
  personal property for a tax year that begins after December 31,
  2023, has no effect for that tax year.
         (e)  Subsections (c) and (d) do not apply to personal
  property taxable under Section 1(l), Article VIII, Texas
  Constitution. [This state has jurisdiction to tax tangible
  personal property if the property is:
               [(1)  located in this state for longer than a temporary
  period;
               [(2)  temporarily located outside this state and the
  owner resides in this state; or
               [(3)  used continually, whether regularly or
  irregularly, in this state.
         [(d)  Tangible personal property that is operated or located
  exclusively outside this state during the year preceding the tax
  year and on January 1 of the tax year is not taxable in this state.
         [(e)  For purposes of Subsection (c)(3), property is
  considered to be used continually, whether regularly or
  irregularly, in this state if the property is used in this state
  three or more times on regular routes or for three or more completed
  assignments occurring in close succession throughout the year. For
  purposes of this subsection, a series of events are considered to
  occur in close succession throughout the year if they occur in
  sequence within a short period at intervals from the beginning to
  the end of the year.]
         SECTION 35.  Section 11.18(a), Tax Code, is amended to read
  as follows:
         (a)  An organization that qualifies as a charitable
  organization as provided by this section is entitled to an
  exemption from taxation of:
               (1)  the buildings [and tangible personal property]
  that:
                     (A)  are owned by the charitable organization; and
                     (B)  except as permitted by Subsection (b), are
  used exclusively by qualified charitable organizations; and
               (2)  the real property owned by the charitable
  organization consisting of:
                     (A)  an incomplete improvement that:
                           (i)  is under active construction or other
  physical preparation; and
                           (ii)  is designed and intended to be used
  exclusively by qualified charitable organizations; and
                     (B)  the land on which the incomplete improvement
  is located that will be reasonably necessary for the use of the
  improvement by qualified charitable organizations.
         SECTION 36.  Section 11.181(c), Tax Code, is amended to read
  as follows:
         (c)  An organization entitled to an exemption under
  Subsection (a) is also entitled to an exemption from taxation of any
  building [or tangible personal property] the organization owns and
  uses in the administration of its acquisition, building, repair, or
  sale of property. To qualify for an exemption under this
  subsection, property must be used exclusively by the charitable
  organization, except that another individual or organization may
  use the property for activities incidental to the charitable
  organization's use that benefit the beneficiaries of the charitable
  organization.
         SECTION 37.  Section 11.182(f), Tax Code, is amended to read
  as follows:
         (f)  An organization entitled to an exemption under
  Subsection (b) is also entitled to an exemption from taxation of any
  building [or tangible personal property] the organization owns and
  uses in the administration of its acquisition, building, repair,
  sale, or rental of property. To qualify for an exemption under this
  subsection, property must be used exclusively by the organization,
  except that another person may use the property for activities
  incidental to the organization's use that benefit the beneficiaries
  of the organization.
         SECTION 38.  Section 11.1827(d), Tax Code, is amended to
  read as follows:
         (d)  A community land trust entitled to an exemption from
  taxation by a taxing unit under Subsection (b) is also entitled to
  an exemption from taxation by the taxing unit of any real [or
  tangible personal] property the trust owns and uses in the
  administration of its acquisition, construction, repair, sale, or
  leasing of property. To qualify for an exemption under this
  subsection, property must be used exclusively by the trust, except
  that another person may use the property for activities incidental
  to the trust's use that benefit the beneficiaries of the trust.
         SECTION 39.  Section 11.184(c), Tax Code, is amended to read
  as follows:
         (c)  A qualified charitable organization is entitled to an
  exemption from taxation of:
               (1)  the buildings and other real property [and the
  tangible personal property] that:
                     (A)  are owned by the organization; and
                     (B)  except as permitted by Subsection (d), are
  used exclusively by the organization and other organizations
  eligible for an exemption from taxation under this section or
  Section 11.18; and
               (2)  the real property owned by the organization
  consisting of:
                     (A)  an incomplete improvement that:
                           (i)  is under active construction or other
  physical preparation; and
                           (ii)  is designed and intended to be used
  exclusively by the organization and other organizations eligible
  for an exemption from taxation under this section or Section 11.18;
  and
                     (B)  the land on which the incomplete improvement
  is located that will be reasonably necessary for the use of the
  improvement by the organization and other organizations eligible
  for an exemption from taxation under this section or Section 11.18.
         SECTION 40.  Section 11.185(c), Tax Code, is amended to read
  as follows:
         (c)  An organization entitled to an exemption under
  Subsection (a) is also entitled to an exemption from taxation of any
  building [or tangible personal property] the organization owns and
  uses in the administration of its acquisition, building, repair, or
  sale of property. To qualify for an exemption under this
  subsection, property must be used exclusively by the charitable
  organization, except that another individual or organization may
  use the property for activities incidental to the charitable
  organization's use that benefit the beneficiaries of the charitable
  organization.
         SECTION 41.  Sections 11.20(a), (d), (f), (g), (h), (j), and
  (k), Tax Code, are amended to read as follows:
         (a)  An organization that qualifies as a religious
  organization as provided by Subsection (c) is entitled to an
  exemption from taxation of:
               (1)  the real property that is owned by the religious
  organization, is used primarily as a place of regular religious
  worship, and is reasonably necessary for engaging in religious
  worship;
               (2)  [the tangible personal property that is owned by
  the religious organization and is reasonably necessary for engaging
  in worship at the place of worship specified in Subdivision (1);
               [(3)]  the real property that is owned by the religious
  organization and is reasonably necessary for use as a residence
  (but not more than one acre of land for each residence) if the
  property:
                     (A)  is used exclusively as a residence for those
  individuals whose principal occupation is to serve in the clergy of
  the religious organization; and
                     (B)  produces no revenue for the religious
  organization;
               (3) [(4)  the tangible personal property that is owned
  by the religious organization and is reasonably necessary for use
  of the residence specified by Subdivision (3);
               [(5)]  the real property owned by the religious
  organization consisting of:
                     (A)  an incomplete improvement that is under
  active construction or other physical preparation and that is
  designed and intended to be used by the religious organization as a
  place of regular religious worship when complete; and
                     (B)  the land on which the incomplete improvement
  is located that will be reasonably necessary for the religious
  organization's use of the improvement as a place of regular
  religious worship;
               (4) [(6)]  the land that the religious organization
  owns for the purpose of expansion of the religious organization's
  place of regular religious worship or construction of a new place of
  regular religious worship if:
                     (A)  the religious organization qualifies other
  property, including a portion of the same tract or parcel of land,
  owned by the organization for an exemption under Subdivision (1) or
  (3) [(5)]; and
                     (B)  the land produces no revenue for the
  religious organization; and
               (5) [(7)]  the real property owned by the religious
  organization that is leased to another person and used by that
  person for the operation of a school that qualifies as a school
  under Section 11.21(d).
         (d)  Use of property that qualifies for the exemption
  prescribed by Subsection (a)(1) [or (2)] or by Subsection (h)(1)
  for occasional secular purposes other than religious worship does
  not result in loss of the exemption if the primary use of the
  property is for religious worship and all income from the other use
  is devoted exclusively to the maintenance and development of the
  property as a place of religious worship.
         (f)  A property may not be exempted under Subsection (a)(3)
  [(a)(5)] for more than three years.
         (g)  For purposes of Subsection (a)(3) [(a)(5)], an
  incomplete improvement is under physical preparation if the
  religious organization has engaged in architectural or engineering
  work, soil testing, land clearing activities, or site improvement
  work necessary for the construction of the improvement or has
  conducted an environmental or land use study relating to the
  construction of the improvement.
         (h)  Property owned by this state or a political subdivision
  of this state, including a leasehold or other possessory interest
  in the property, that is held or occupied by an organization that
  qualifies as a religious organization as provided by Subsection (c)
  is entitled to an exemption from taxation if the property:
               (1)  is used by the organization primarily as a place of
  regular religious worship and is reasonably necessary for engaging
  in religious worship; or
               (2)  meets the qualifications for an exemption under
  Subsection (a)(3) [(a)(5)].
         (j)  A tract of land that is contiguous to the tract of land
  on which the religious organization's place of regular religious
  worship is located may not be exempted under Subsection (a)(4)
  [(a)(6)] for more than six years. A tract of land that is not
  contiguous to the tract of land on which the religious
  organization's place of regular religious worship is located may
  not be exempted under Subsection (a)(4) [(a)(6)] for more than
  three years. 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.
         (k)  For purposes of Subsection (a)(4) [(a)(6)], an
  application or statement accompanying an application for the
  exemption stating that the land is owned for the purposes described
  by Subsection (a)(4) [(a)(6)] and signed by an authorized officer
  of the organization is sufficient to establish that the land is
  owned for those purposes.
         SECTION 42.  Sections 11.201(a) and (c), Tax Code, are
  amended to read as follows:
         (a)  If land is sold or otherwise transferred to another
  person in a year in which the land receives an exemption under
  Section 11.20(a)(4) [11.20(a)(6)], an additional tax is imposed on
  the land equal to the tax that would have been imposed on the land
  had the land been taxed for each of the five years preceding the
  year in which the sale or transfer occurs in which the land received
  an exemption under that subsection, plus interest at an annual rate
  of seven percent calculated from the dates on which the taxes would
  have become due.
         (c)  If only part of a parcel of land that is exempted under
  Section 11.20(a)(4) [11.20(a)(6)] is sold or transferred, the tax
  applies only to that part of the parcel and equals the taxes that
  would have been imposed had that part been taxed.
         SECTION 43.  Sections 11.21(a), (b), and (f), Tax Code, are
  amended to read as follows:
         (a)  A person is entitled to an exemption from taxation of:
               (1)  the buildings [and tangible personal property]
  that the person owns and that are used for a school that is
  qualified as provided by Subsection (d) if:
                     (A)  the school is operated exclusively by the
  person owning the property;
                     (B)  except as permitted by Subsection (b), the
  buildings [and tangible personal property] are used exclusively for
  educational functions; and
                     (C)  the buildings [and tangible personal
  property] are reasonably necessary for the operation of the school;
  and
               (2)  the real property owned by the person consisting
  of:
                     (A)  an incomplete improvement that:
                           (i)  is under active construction or other
  physical preparation; and
                           (ii)  is designed and intended to be used for
  a school that is qualified as provided by Subsection (d); and
                     (B)  the land on which the incomplete improvement
  is located that will be reasonably necessary for the use of the
  improvement for a school that is qualified as provided by
  Subsection (d).
         (b)  Use of exempt [tangible] property for functions other
  than educational functions does not result in loss of an exemption
  authorized by this section if those other functions are incidental
  to use of the property for educational functions and benefit the
  students or faculty of the school.
         (f)  Notwithstanding Subsection (a), a person is entitled to
  an exemption from taxation of the buildings [and tangible personal
  property] the person acquires for use for a school that meets each
  requirement of Subsection (d) if:
               (1)  the person authorizes the former owner to continue
  to use the property pending the use of the property for a school;
  and
               (2)  the former owner would be entitled to an exemption
  from taxation of the property if the former owner continued to own
  the property.
         SECTION 44.  Section 11.23(m), Tax Code, is amended to read
  as follows:
         (m)  National Hispanic Institute. The National Hispanic
  Institute is entitled to an exemption from taxation of the real [and
  tangible personal] property it owns as long as the organization is
  exempt from federal income taxation under Section 501(a), Internal
  Revenue Code of 1986, as an organization described by Section
  501(c)(3) of that code.
         SECTION 45.  Section 11.231(b), Tax Code, is amended to read
  as follows:
         (b)  An association that qualifies as a nonprofit community
  business organization as provided by this section is entitled to an
  exemption from taxation of:
               (1)  the buildings [and tangible personal property]
  that:
                     (A)  are owned by the nonprofit community business
  organization; and
                     (B)  except as permitted by Subsection (c), are
  used exclusively by qualified nonprofit community business
  organizations to perform their primary functions; and
               (2)  the real property owned by the nonprofit community
  business organization consisting of:
                     (A)  an incomplete improvement that:
                           (i)  is under active construction or other
  physical preparation; and
                           (ii)  is designed and intended to be used
  exclusively by qualified nonprofit community business
  organizations; and
                     (B)  the land on which the incomplete improvement
  is located that will be reasonably necessary for the use of the
  improvement by qualified nonprofit community business
  organizations.
         SECTION 46.  Sections 11.35(a) and (g), Tax Code, are
  amended to read as follows:
         (a)  In this section, "qualified property" means property
  that:
               (1)  consists of:
                     (A)  [tangible personal property used for the
  production of income;
                     [(B)]  an improvement to real property; or
                     (B) [(C)]  a manufactured home as that term is
  defined by Section 1201.003, Occupations Code, that is used as a
  dwelling, regardless of whether the owner of the manufactured home
  elects to treat the manufactured home as real property under
  Section 1201.2055, Occupations Code;
               (2)  is located in an area declared by the governor to
  be a disaster area following a disaster; and
               (3)  is at least 15 percent damaged by the disaster, as
  determined by the chief appraiser under this section[; and
               [(4)  for property described by Subdivision (1)(A), is
  the subject of a rendition statement or property report filed by the
  property owner under Section 22.01 that demonstrates that the
  property had taxable situs in the disaster area for the tax year in
  which the disaster occurred].
         (g)  The chief appraiser shall assign to an item of qualified
  property:
               (1)  a Level I damage assessment rating if the property
  is at least 15 percent, but less than 30 percent, damaged, meaning
  that the property suffered minimal damage and may continue to be
  used as intended;
               (2)  a Level II damage assessment rating if the
  property is at least 30 percent, but less than 60 percent, damaged,
  meaning [which, for qualified property described by Subsection
  (a)(1)(B) or (C), means] that the property has suffered only
  nonstructural damage, including nonstructural damage to the roof,
  walls, foundation, or mechanical components, and the waterline, if
  any, is less than 18 inches above the floor;
               (3)  a Level III damage assessment rating if the
  property is at least 60 percent damaged but is not a total loss,
  meaning [which, for qualified property described by Subsection
  (a)(1)(B) or (C), means] that the property has suffered significant
  structural damage requiring extensive repair due to the failure or
  partial failure of structural elements, wall elements, or the
  foundation, or the waterline is at least 18 inches above the floor;
  or
               (4)  a Level IV damage assessment rating if the
  property is a total loss, meaning that repair of the property is not
  feasible.
         SECTION 47.  Section 11.42(b), Tax Code, is amended to read
  as follows:
         (b)  An exemption authorized by Section 11.11 [or 11.141] is
  effective immediately on qualification for the exemption.
         SECTION 48.  Sections 11.43(a), (b), (c), and (e), Tax Code,
  are amended to read as follows:
         (a)  To receive an exemption, a person claiming the
  exemption, other than an exemption authorized by Section 11.11,
  11.12, or [11.14, 11.141, 11.145,] 11.146[, 11.15, 11.16, 11.161,
  or 11.25], must apply for the exemption. To apply for an exemption,
  a person must file an exemption application form with the chief
  appraiser for the [each] appraisal office established for each
  county [district] in which the property subject to the claimed
  exemption has situs.
         (b)  Except as provided by Subsection (c) and by Section
  [Sections] 11.184 [and 11.437], a person required to apply for an
  exemption must apply each year the person claims entitlement to the
  exemption.
         (c)  An exemption provided by Section 11.13, 11.131, 11.132,
  11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
  11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
  [11.254], 11.27, [11.271,] 11.29, 11.30, 11.31, [11.315,] or 11.35,
  once allowed, need not be claimed in subsequent years, and except as
  otherwise provided by Subsection (e), the exemption applies to the
  property until it changes ownership or the person's qualification
  for the exemption changes. However, except as provided by
  Subsection (r), the chief appraiser may require a person allowed
  one of the exemptions in a prior year to file a new application to
  confirm the person's current qualification for the exemption by
  delivering a written notice that a new application is required,
  accompanied by an appropriate application form, to the person
  previously allowed the exemption. If the person previously allowed
  the exemption is 65 years of age or older, the chief appraiser may
  not cancel the exemption due to the person's failure to file the new
  application unless the chief appraiser complies with the
  requirements of Subsection (q), if applicable.
         (e)  Except as provided by Section 11.422, 11.431, 11.433,
  11.434, 11.435, or 11.439, [or 11.4391,] if a person required to
  apply for an exemption in a given year fails to file timely a
  completed application form, the person may not receive the
  exemption for that year.
         SECTION 49.  Section 21.06(a), Tax Code, is amended to read
  as follows:
         (a)  Except as provided by Section 21.08 [Sections 21.07
  through 21.09 of this code], intangible property is taxable by a
  taxing unit if the owner of the property resides in the taxing unit
  on January 1, unless the property normally is used in this state for
  business purposes outside the taxing unit. In that event, the
  intangible property is taxable by each taxing unit in which the
  property normally is used for business purposes.
         SECTION 50.  Sections 22.01(a), (b), (c), (c-2), (f), and
  (g), Tax Code, are amended to read as follows:
         (a)  [Except as provided by Chapter 24, a person shall render
  for taxation all tangible personal property used for the production
  of income that the person owns or that the person manages and
  controls as a fiduciary on January 1.] A rendition statement shall
  contain:
               (1)  the name and address of the property owner;
               (2)  a description of the property by type or category;
               (3)  [if the property is inventory, a description of
  each type of inventory and a general estimate of the quantity of
  each type of inventory;
               [(4)]  the physical location or taxable situs of the
  property; and
               (4) [(5)]  the property owner's good faith estimate of
  the market value of the property or, at the option of the property
  owner, the historical cost when new and the year of acquisition of
  the property.
         (b)  When required by the chief appraiser, a person shall
  render for taxation any [other] taxable property that the person
  [he] owns or that the person [he] manages and controls as a
  fiduciary on January 1.
         (c)  A person may render for taxation any property that the
  person [he] owns or that the person [he] manages and controls as a
  fiduciary on January 1, although the person [he] is not required to
  render it by Subsection [(a) or] (b) [of this section].
         (c-2)  With the consent of the property owner, a secured
  party may render for taxation any property of the property owner in
  which the secured party has a security interest on January 1,
  although the secured party is not required to render the property by
  Subsection [(a) or] (b). This subsection applies only to property
  that has a historical cost when new of more than $50,000.
         (f)  Notwithstanding Subsection [Subsections] (a) [and (b)],
  a rendition statement of a person who owns [tangible personal]
  property [used for the production of income] located in the county
  for which the appraisal office is established [district] that, in
  the owner's opinion, has an aggregate value of less than $20,000 is
  required to contain only:
               (1)  the name and address of the property owner;
               (2)  a general description of the property by type or
  category; and
               (3)  the physical location or taxable situs of the
  property.
         (g)  A person's good faith estimate of the market value of
  the property under Subsection (a)(4) [(a)(5)] is solely for the
  purpose of compliance with any [the] requirement to render
  [tangible personal] property and is inadmissible in any subsequent
  protest, hearing, appeal, suit, or other proceeding under this
  title involving the property, except for:
               (1)  a proceeding to determine whether the person
  complied with this section;
               (2)  a proceeding under Section 22.29(b); or
               (3)  a protest under Section 41.41.
         SECTION 51.  Section 22.02, Tax Code, is amended to read as
  follows:
         Sec. 22.02.  RENDITION OF PROPERTY LOSING EXEMPTION DURING
  TAX YEAR [OR FOR WHICH EXEMPTION APPLICATION IS DENIED]. [(a)] If
  an exemption applicable to a property on January 1 terminates
  during the tax year, the person who owns or acquires the property on
  the date applicability of the exemption terminates shall render the
  property for taxation within 30 days after the date of termination.
         [(b)  If the chief appraiser denies an application for an
  exemption for property described by Section 22.01(a), the person
  who owns the property on the date the application is denied shall
  render the property for taxation in the manner provided by Section
  22.01 within 30 days after the date of denial.]
         SECTION 52.  Section 22.05, Tax Code, is amended to read as
  follows:
         Sec. 22.05.  RENDITION BY RAILROAD. (a) A [In addition to
  other reports required by Chapter 24 of this code, a] railroad
  corporation shall render the real property the railroad corporation
  owns or possesses as of January 1.
         (b)  The rendition shall:
               (1)  list all real property other than the property
  covered by Subdivision (2) [of this subsection]; and
               (2)  list the number of miles of railroad together with
  the market value per mile, which value shall include right-of-way,
  roadbed, superstructure, and all buildings and improvements used in
  the operation of the railroad[; and
               [(3)  list all personal property as required by Section
  22.01 of this code].
         SECTION 53.  The heading to Section 22.07, Tax Code, is
  amended to read as follows:
         Sec. 22.07.  STATEMENT INDICATING HOW VALUE RENDERED
  [INSPECTION OF PROPERTY].
         SECTION 54.  Section 22.07, Tax Code, is amended by amending
  Subsection (c) and adding Subsection (c-1) to read as follows:
         (c)  The chief appraiser may request, either in writing or by
  electronic means, that the property owner provide a statement
  containing supporting information indicating how the value
  rendered under Section 22.01(a)(4) [22.01(a)(5)] was determined.  
  The statement must:
               (1)  summarize information sufficient to identify the
  property, including:
                     (A)  the physical and economic characteristics
  relevant to the opinion of value, if appropriate; and
                     (B)  the source of the information used;
               (2)  state the effective date of the opinion of value;
  and
               (3)  explain the basis of the value rendered.
         (c-1)  If the property owner is a business with 50 employees
  or less, the property owner may base the estimate of value on the
  depreciation schedules used for federal income tax purposes.
         SECTION 55.  Section 23.01(f), Tax Code, is amended to read
  as follows:
         (f)  The selection of comparable properties and the
  application of appropriate adjustments for the determination of an
  appraised value of property by any person under Section 41.43(b)
  [41.43(b)(3)] or 42.26(a) [42.26(a)(3)] must be based on the
  application of generally accepted appraisal methods and
  techniques.  Adjustments must be based on recognized methods and
  techniques that are necessary to produce a credible opinion.
         SECTION 56.  Section 23.0101, Tax Code, is amended to read as
  follows:
         Sec. 23.0101.  CONSIDERATION OF ALTERNATE APPRAISAL
  METHODS.  (a)  Except as provided by Subsections (b) and (c), in
  [In] determining the market value of property, the chief appraiser
  shall consider the cost, income, and market data comparison methods
  of appraisal and use the most appropriate method.
         (b)  In determining the market value of residential real
  property consisting of a single-family home, duplex, triplex, or
  quadraplex constructed by or on behalf of the owner, the chief
  appraiser shall use the cost method of appraisal.
         (c)  Except as otherwise provided by this title, in
  determining the market value of real property other than a
  single-family home, duplex, triplex, quadraplex, or tract of
  unimproved land, the chief appraiser shall use the income method of
  appraisal.
         SECTION 57.  Section 23.014, Tax Code, is amended to read as
  follows:
         Sec. 23.014.  EXCLUSION OF PROPERTY AS REAL PROPERTY.  In
  [Except as provided by Section 23.24(b), in] determining the market
  value of real property, the chief appraiser shall analyze the
  effect on that value of, and exclude from that value the value of,
  any:
               (1)  tangible personal property, including trade
  fixtures;
               (2)  intangible personal property; or
               (3)  other property that is not subject to appraisal as
  real property.
         SECTION 58.  Sections 23.12(a) and (f), Tax Code, are
  amended to read as follows:
         (a)  The [Except as provided by Sections 23.121, 23.1241,
  23.124, and 23.127, the] market value of a real property [an]
  inventory is the price for which it would sell as a unit to a
  purchaser who would continue the business.  A real property [An]
  inventory includes [shall include] residential real property which
  has never been occupied as a residence and is held for sale in the
  ordinary course of a trade or business, provided that the
  residential real property remains unoccupied, is not leased or
  rented, and produces no income.
         (f)  The owner of an inventory [other than a dealer's motor
  vehicle inventory as that term is defined by Section 23.121, a
  dealer's heavy equipment inventory as that term is defined by
  Section 23.1241, or a dealer's vessel and outboard motor inventory
  as that term is defined by Section 23.124, or a retail manufactured
  housing inventory as that term is defined by Section 23.127] may
  elect to have the inventory appraised at its market value as of
  September 1 of the year preceding the tax year to which the
  appraisal applies by filing an application with the chief appraiser
  requesting that the inventory be appraised as of September 1.  The
  application must clearly describe the inventory to which it applies
  and be signed by the owner of the inventory.  The application
  applies to the appraisal of the inventory in each tax year that
  begins after the next August 1 following the date the application is
  filed with the chief appraiser unless the owner of the inventory by
  written notice filed with the chief appraiser revokes the
  application or the ownership of the inventory changes.  A notice
  revoking the application is effective for each tax year that begins
  after the next September following the date the notice of
  revocation is filed with the chief appraiser.
         SECTION 59.  Section 23.23(a), Tax Code, is amended to read
  as follows:
         (a)  Regardless [Notwithstanding the requirements of Section
  25.18 and regardless] of whether the appraisal office has appraised
  the property and determined the market value of the property for the
  tax year, an appraisal office may increase the appraised value of a
  residence homestead for a tax year to an amount not to exceed the
  lesser of:
               (1)  the market value of the property for the most
  recent tax year that the market value was determined by the
  appraisal office; or
               (2)  the sum of:
                     (A)  10 percent of the appraised value of the
  property for the preceding tax year;
                     (B)  the appraised value of the property for the
  preceding tax year; and
                     (C)  the market value of all new improvements to
  the property.
         SECTION 60.  Subchapter B, Chapter 23, Tax Code, is amended
  by adding Section 23.231 to read as follows:
         Sec. 23.231.  LIMITATION ON APPRAISED VALUE OF CERTAIN REAL
  PROPERTY.  (a)  This section applies only to residential real
  property consisting of a single-family home, duplex, triplex, or
  quadraplex or to a tract of unimproved land that the owner acquired
  as a bona fide purchaser for value.
         (b)  This section applies to property only if the owner
  discloses the purchase price the owner paid for the property to the
  appraisal office.
         (c)  This section does not apply to property if:
               (1)  the purchase of the property was made:
                     (A)  pursuant to a court order;
                     (B)  from a trustee in bankruptcy;
                     (C)  by one co-owner from one or more other
  co-owners;
                     (D)  from a spouse or a person or persons within
  the first or second degree of lineal consanguinity of one or more of
  the purchasers; or
                     (E)  from a governmental entity; or
               (2)  the chief appraiser determines that the owner of
  the property was not a bona fide purchaser for value under criteria
  established by rules adopted by the comptroller for that purpose.
         (d)  Regardless of whether the appraisal office has
  appraised the property and determined the market value of the
  property for the tax year, the appraised value of property for a tax
  year may not exceed the lesser of:
               (1)  the market value of the property; or
               (2)  the sum of:
                     (A)  the purchase price paid by the property owner
  for the property; and
                     (B)  the market value of each new improvement to
  the property as of January 1 of the first tax year in which the
  improvement was added to the appraisal roll.
         (e)  When appraising property, the chief appraiser shall:
               (1)  appraise the property at its market value; and
               (2)  include in the appraisal records both the market
  value of the property and the amount computed under Subsection
  (d)(2).
         (f)  The limitation provided by Subsection (a) takes effect
  as to property on January 1 of the first tax year the owner
  qualifies the property for a limitation under this section.  The
  limitation expires on January 1 of the first tax year that neither
  the owner of the property when the limitation took effect nor the
  owner's spouse or surviving spouse qualifies for the limitation.
         (g)  This section does not apply to property appraised under
  Subchapter C, D, E, F, or G.
         (h)  To receive a limitation on appraised value under this
  section, the owner of the property must apply for the limitation.
  To apply for the limitation, the owner must file an application with
  the chief appraiser for each appraisal office in which the property
  subject to the claimed limitation has situs.  The application must
  be filed not later than May 1 of the year after the year in which the
  owner acquired the property. The comptroller by rule shall
  prescribe the form for the application to ensure that the applicant
  furnishes the information necessary to determine the applicant's
  eligibility for the limitation, including the price for which the
  applicant acquired the property.
         (i)  In this section, "new improvement" means an improvement
  to property made since the owner acquired the property that
  increases the market value of the property. The term does not
  include repairs to or ordinary maintenance of an existing structure
  or the grounds or another feature of the property.
         (j)  Notwithstanding Subsections (d) and (i) and except as
  provided by Subdivision (2) of this subsection, an improvement to
  property that would otherwise constitute a new improvement is not
  treated as a new improvement if the improvement is a replacement
  structure for a structure that was rendered uninhabitable or
  unusable by a casualty or by wind or water damage.  For purposes of
  appraising the property under Subsection (d) in the tax year in
  which the structure would have constituted a new improvement:
               (1)  the appraised value the property would have had in
  the preceding tax year if the casualty or damage had not occurred is
  considered to be the appraised value of the property for that year,
  regardless of whether that appraised value exceeds the actual
  appraised value of the property for that year as limited by
  Subsection (d); and
               (2)  the replacement structure is considered to be a
  new improvement only if:
                     (A)  the square footage of the replacement
  structure exceeds that of the replaced structure as that structure
  existed before the casualty or damage occurred; or
                     (B)  the exterior of the replacement structure is
  of higher quality construction and composition than that of the
  replaced structure.
         (k)  In this subsection, "disaster recovery program" means
  the disaster recovery program administered by the General Land
  Office or by a political subdivision of this state that is funded
  with community development block grant disaster recovery money
  authorized by federal law.  Notwithstanding Subsection (j)(2), and
  only to the extent necessary to satisfy the requirements of the
  disaster recovery program, a replacement structure described by
  that subdivision is not considered to be a new improvement if to
  satisfy the requirements of the disaster recovery program it was
  necessary that:
               (1)  the square footage of the replacement structure
  exceed that of the replaced structure as that structure existed
  before the casualty or damage occurred; or
               (2)  the exterior of the replacement structure be of
  higher quality construction and composition than that of the
  replaced structure.
         (l)  For purposes of Subsection (d)(2)(B), an improvement is
  considered to be a new improvement in a tax year if the market value
  of the improvement increased from the value of the improvement in
  the preceding tax year because the improvement was not complete in
  the preceding tax year.
         SECTION 61.  The heading to Section 25.18, Tax Code, is
  amended to read as follows:
         Sec. 25.18.  REAPPRAISAL OF PROPERTY [PERIODIC
  REAPPRAISALS].
         SECTION 62.  Section 25.18(a), Tax Code, is amended to read
  as follows:
         (a)  An [Each] appraisal office may reappraise [shall
  implement the plan for periodic reappraisal of] property if the
  chief appraiser determines that conditions warrant the reappraisal
  [approved by the board of directors under Section 6.05(i)].
         SECTION 63.  Section 25.19(b), Tax Code, as effective on
  January 1, 2022, is amended to read as follows:
         (b)  The chief appraiser shall [separate real from personal
  property and] include in the notice for each property:
               (1)  a list of the taxing units in which the property is
  taxable;
               (2)  the appraised value of the property in the
  preceding year;
               (3)  the taxable value of the property in the preceding
  year for each taxing unit taxing the property;
               (4)  the appraised value of the property for the
  current year, the kind and amount of each exemption and partial
  exemption, if any, approved for the property for the current year
  and for the preceding year, and, if an exemption or partial
  exemption that was approved for the preceding year was canceled or
  reduced for the current year, the amount of the exemption or partial
  exemption canceled or reduced;
               (5)  in italic typeface, the following statement: "The
  Texas Legislature does not set the amount of your local taxes.  Your
  property tax burden is decided by your locally elected officials,
  and all inquiries concerning your taxes should be directed to those
  officials";
               (6)  a detailed explanation of the time and procedure
  for protesting the value;
               (7)  the date and place the appraisal review board will
  begin hearing protests; and
               (8)  a brief explanation that the governing body of
  each taxing unit decides whether or not taxes on the property will
  increase and the appraisal office [district] only determines the
  value of the property.
         SECTION 64.  Sections 25.19(b-1) and (b-3), Tax Code, are
  amended to read as follows:
         (b-1)  In [For real property, in] addition to the information
  required by Subsection (b), the chief appraiser shall state in a
  notice required to be delivered under Subsection (a), the
  difference, expressed as a percent increase or decrease, as
  applicable, in the appraised value of the property for the current
  tax year as compared to the fifth tax year before the current tax
  year.
         (b-3)  This subsection applies only to an appraisal office
  [district] described by Section 6.41(b-2).  In addition to the
  information required by Subsection (b), the chief appraiser shall
  state in a notice of appraised value of property 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.
         SECTION 65.  Sections 26.012(6) and (15), Tax Code, are
  amended to read as follows:
               (6)  "Current total value" means the total taxable
  value of property listed on the appraisal roll for the current year,
  including all appraisal roll supplements and corrections as of the
  date of the calculation, less the taxable value of property
  exempted for the current tax year for the first time under Section
  11.31 [or 11.315], except that:
                     (A)  the current total value for a school district
  excludes:
                           (i)  the total value of homesteads that
  qualify for a tax limitation as provided by Section 11.26; and
                           (ii)  new property value of property that is
  subject to an agreement entered into under Chapter 313; and
                     (B)  the current total value for a county,
  municipality, or junior college district excludes the total value
  of homesteads that qualify for a tax limitation provided by Section
  11.261.
               (15)  "Lost property levy" means the amount of taxes
  levied in the preceding year on property value that was taxable in
  the preceding year but is not taxable in the current year because
  the property is exempt in the current year under a provision of this
  code other than Section [11.251, 11.253, or] 11.35, the property
  has qualified for special appraisal under Chapter 23 in the current
  year, or the property is located in territory that has ceased to be
  a part of the taxing unit since the preceding year.
         SECTION 66.  Section 26.09(b), Tax Code, is amended to read
  as follows:
         (b)  [The county assessor-collector shall add the properties
  and their values certified to him as provided by Chapter 24 of this
  code to the appraisal roll for county tax purposes.]  The county
  assessor-collector shall use the appraisal roll certified to the
  county assessor-collector [him] as provided by Section 26.01 [with
  the added properties and values] to calculate county taxes.
         SECTION 67.  Section 31.032(a), Tax Code, is amended to read
  as follows:
         (a)  This section applies only to:
               (1)  real property that:
                     (A)  is:
                           (i)  the residence homestead of the owner or
  consists of property that is used for residential purposes and that
  has fewer than five living units; or
                           (ii)  owned or leased by a business entity
  that had not more than the amount calculated as provided by
  Subsection (h) in gross receipts in the entity's most recent
  federal tax year or state franchise tax annual period, according to
  the applicable federal income tax return or state franchise tax
  report of the entity;
                     (B)  is located in a disaster area; and
                     (C)  has been damaged as a direct result of the
  disaster; and
               (2)  [tangible personal property that is owned or
  leased by a business entity described by Subdivision (1)(A)(ii);
  and
               [(3)] taxes that are imposed on the property by a taxing
  unit before the first anniversary of the disaster.
         SECTION 68.  Section 41.43(b), Tax Code, is amended to read
  as follows:
         (b)  A protest on the ground of unequal appraisal of property
  shall be determined in favor of the protesting party unless the
  appraisal office [district] establishes that[:
               [(1)  the appraisal ratio of the property is equal to or
  less than the median level of appraisal of a reasonable and
  representative sample of other properties in the appraisal
  district;
               [(2)  the appraisal ratio of the property is equal to or
  less than the median level of appraisal of a sample of properties in
  the appraisal district consisting of a reasonable number of other
  properties similarly situated to, or of the same general kind or
  character as, the property subject to the protest; or
               [(3)] the appraised value of the property is equal to or
  less than the median appraised value of a reasonable number of
  comparable properties appropriately adjusted.
         SECTION 69.  Section 41.44(a), Tax Code, is amended to read
  as follows:
         (a)  Except as provided by Subsections (b), (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)  not later than May 15 or the 30th day after the
  date that notice to the property owner was delivered to the property
  owner as provided by Section 25.19, whichever is later;
               (2)  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)  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)  [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; or
               [(5)] in the case of a protest of the modification or
  denial of an application for an exemption under Section 11.35, or
  the determination of an appropriate damage assessment rating for an
  item of qualified property under that section, not later than the
  30th day after the date the property owner receives the notice
  required under Section 11.45(e).
         SECTION 70.  Section 42.01, Tax Code, is amended to read as
  follows:
         Sec. 42.01.  RIGHT OF APPEAL BY PROPERTY OWNER. (a)  A
  property owner is entitled to appeal[:
               [(1)] an order of the appraisal review board
  determining:
               (1) [(A)]  a protest by the property owner as provided
  by Subchapter C of Chapter 41;
               (2) [(B)]  a motion filed under Section 25.25;
               (3) [(C)]  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
               (4) [(D)  eligibility for a refund requested under
  Section 23.1243; or
                     [(E)] that the appraisal review board lacks
  jurisdiction to finally determine a protest by the property owner
  under Subchapter C, Chapter 41, or a motion filed by the property
  owner under Section 25.25 because the property owner failed to
  comply with a requirement of Subchapter C, Chapter 41, or Section
  25.25, as applicable[; or
               [(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].
         (b)  A property owner who establishes that the owner did not
  forfeit the right to a final determination of a motion or of a
  protest in an appeal under Subsection (a)(3) [(a)(1)(C)] is
  entitled to a final determination of the court, as applicable:
               (1)  of the motion filed under Section 25.25; or
               (2)  of the protest under Section 41.411 of the failure
  of the chief appraiser or appraisal review board to provide or
  deliver a notice to which the property owner is entitled, and, if
  failure to provide or deliver the notice is established, of a
  protest made by the property owner on any other grounds of protest
  authorized by this title relating to the property to which the
  notice applies.
         (c)  A property owner who establishes that the appraisal
  review board had jurisdiction to issue a final determination of the
  protest by the property owner under Subchapter C, Chapter 41, or of
  the motion filed by the property owner under Section 25.25 in an
  appeal under Subsection (a)(4) [(a)(1)(E)] of this section is
  entitled to a final determination by the court of the protest under
  Subchapter C, Chapter 41, or of the motion filed under Section
  25.25.  A final determination of a protest under Subchapter C,
  Chapter 41, by the court under this subsection may be on any ground
  of protest authorized by this title applicable to the property that
  is the subject of the protest, regardless of whether the property
  owner included the ground in the property owner's notice of
  protest.
         SECTION 71.  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 office [district] and against the owner of
  the property involved in the appeal.  [A petition for review brought
  under Section 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 office [district].  A
  petition for review may not be brought against the appraisal review
  board.  An appraisal office [district] may hire an attorney that
  represents the office [district] to represent the appraisal review
  board established for the office [district] to file an answer and
  obtain a dismissal of a suit filed against the appraisal review
  board in violation of this subsection.
         SECTION 72.  Section 42.22, Tax Code, as amended by Chapters
  667 (S.B. 548) and 1033 (H.B. 301), Acts of the 73rd Legislature,
  Regular Session, 1993, is reenacted and amended to read as follows:
         Sec. 42.22.  VENUE.  (a)  Except as provided by Subsection
  [Subsections] (b) of this section [and (c),] and by Section 42.221,
  venue is in the county in which the appraisal review board that
  issued the order appealed is located.
         (b)  Venue of an action brought under Section 42.01(a)
  [42.01(1)] is in the county in which the property is located or in
  the county in which the appraisal review board that issued the order
  is located.
         [(c)  Venue is in Travis County if the order appealed was
  issued by the comptroller.]
         SECTION 73.  Section 42.23(f), Tax Code, is amended to read
  as follows:
         (f)  For purposes of a no-evidence motion for summary
  judgment filed by a party to an appeal under this chapter, the offer
  of evidence, including an affidavit or testimony, by any person,
  including the appraisal office [district], the property owner, or
  the owner's agent, that was presented at the hearing on the protest
  before the appraisal review board constitutes sufficient evidence
  to deny the motion.
         SECTION 74.  Sections 42.26(a), (b), and (d), Tax Code, are
  amended to read as follows:
         (a)  The district court shall grant relief on the ground that
  a property is appraised unequally if[:
               [(1)  the appraisal ratio of the property exceeds by at
  least 10 percent the median level of appraisal of a reasonable and
  representative sample of other properties in the appraisal
  district;
               [(2)  the appraisal ratio of the property exceeds by at
  least 10 percent the median level of appraisal of a sample of
  properties in the appraisal district consisting of a reasonable
  number of other properties similarly situated to, or of the same
  general kind or character as, the property subject to the appeal; or
               [(3)]  the appraised value of the property exceeds the
  median appraised value of a reasonable number of comparable
  properties appropriately adjusted.
         (b)  [If a property owner is entitled to relief under
  Subsection (a)(1), the court shall order the property's appraised
  value changed to the value as calculated on the basis of the median
  level of appraisal according to Subsection (a)(1).  If a property
  owner is entitled to relief under Subsection (a)(2), the court
  shall order the property's appraised value changed to the value
  calculated on the basis of the median level of appraisal according
  to Subsection (a)(2).]  If a property owner is entitled to relief
  under Subsection (a) [Subsection (a)(3)], the court shall order the
  property's appraised value changed to the value calculated on the
  basis of the median appraised value according to that subsection
  [Subsection (a)(3).  If a property owner is entitled to relief under
  more than one subdivision of Subsection (a), the court shall order
  the property's appraised value changed to the value that results in
  the lowest appraised value].  The court shall determine the [each
  applicable median level of appraisal or] median appraised value
  according to law[,] and is not required to adopt the [median level
  of appraisal or] median appraised value proposed by a party to the
  appeal.  [The court may not limit or deny relief to the property
  owner entitled to relief under a subdivision of Subsection (a)
  because the appraised value determined according to another
  subdivision of Subsection (a) results in a higher appraised value.]
         (d)  For purposes of this section, the value of the property
  subject to the suit and the value of a comparable property [or
  sample property] that is used for comparison must be the market
  value determined by the appraisal office [district] when the
  property is [a residence homestead] subject to the limitation on
  appraised value imposed by Section 23.23 or 23.231.
         SECTION 75.  Sections 151.356(a) and (c), Tax Code, are
  amended to read as follows:
         (a)  In this section:
               (1)  "Environmental protection agency of the United
  States" includes:
                     (A)  the United States Department of the Interior
  and any agency, bureau, or other entity established in that
  department, including the Bureau of Safety and Environmental
  Enforcement and the Bureau of Ocean Energy Management; and
                     (B)  any other department, agency, bureau, or
  entity of the United States that prescribes rules or regulations
  described by Subdivision (3)(A).
               (2)  "Offshore[, "offshore] spill response containment
  property" means tangible personal property:
                     (A)  used, constructed, acquired, stored, or
  installed solely as part of, or used solely for the development,
  improvement, storage, deployment, repair, maintenance, or testing
  of, an offshore spill response containment system that is stored
  while not in use in a county bordering on the Gulf of Mexico or on a
  bay or other body of water immediately adjacent to the Gulf of
  Mexico [(1) described by Section 11.271(c)];
                     (B) [(2)]  owned or leased by an entity formed
  primarily for the purpose of designing, developing, modifying,
  enhancing, assembling, operating, deploying, and maintaining an
  offshore spill response containment system [described by Section
  11.271(f)]; and
                     (C) [(3)]  used or intended to be used solely in
  an offshore spill response containment system [as defined by
  Section 11.271(a)].
               (3)  "Offshore spill response containment system"
  means a marine or mobile containment system that:
                     (A)  is designed and used or intended to be used
  solely to implement a response plan that meets or exceeds rules or
  regulations adopted by any environmental protection agency of the
  United States, this state, or a political subdivision of this state
  for the control, reduction, or monitoring of air, water, or land
  pollution in the event of a blowout or loss of control of an
  offshore well drilled or used for the exploration for or production
  of oil or gas;
                     (B)  has a design capability to respond to a
  blowout or loss of control of an offshore well drilled or used for
  the exploration for or production of oil or gas that is drilled in
  more than 5,000 feet of water;
                     (C)  is used or intended to be used solely to
  respond to a blowout or loss of control of an offshore well drilled
  or used for the exploration for or production of oil or gas without
  regard to the depth of the water in which the well is drilled; and
                     (D)  except for any monitoring function for which
  the system may be used, is used or intended to be used as a temporary
  measure to address fugitive oil, gas, sulfur, or other minerals
  after a leak has occurred and is not used or intended to be used
  after the leak has been contained as a continuing means of producing
  oil, gas, sulfur, or other minerals.
               (4)  "Rules or regulations adopted by any environmental
  protection agency of the United States" includes 30 C.F.R. Part 254
  and any corresponding provision or provisions of succeeding,
  similar, substitute, proposed, or final federal regulations.
         (c)  The sale, lease, rental, storage, use, or other
  consumption by an entity described by Subsection (a)(2)(B) [Section
  11.271(f)] of offshore spill response containment property used
  solely for the purposes described by [Section 11.271(c) and] this
  section is exempted from the taxes imposed by this chapter.
         SECTION 76.  Section 71.041(5), Agriculture Code, is amended
  to read as follows:
               (5)  "Nursery stock weather protection unit" means a
  plant cover consisting of a series of removable, portable metal
  hoops, covered by nonreusable plastic sheeting, shade cloth, or
  other similar removable material, used exclusively for protecting
  nursery products from weather elements.  A nursery stock weather
  protection unit is an implement of husbandry for all purposes[,
  including Article VIII, Section 19a, of the Texas Constitution].
         SECTION 77.  Section 93.001(2), Business & Commerce Code, is
  amended to read as follows:
               (2)  "Heavy equipment" means self-propelled,
  self-powered, or pull-type equipment, including farm equipment or a
  diesel engine, that weighs at least 1,500 pounds and is intended to
  be used for agricultural, construction, industrial, maritime,
  mining, or forestry uses.  The term does not include a motor vehicle
  that is required by:
                     (A)  Chapter 501, Transportation Code, to be
  titled; or
                     (B)  Chapter 502, Transportation Code, to be
  registered [has the meaning assigned by Section 23.1241, Tax Code].
         SECTION 78.  Sections 89.003(a) and (b), Finance Code, are
  amended to read as follows:
         (a)  Each association and each federal association shall
  render for ad valorem taxation all of its personal property, other
  than tangible personal property [furniture, fixtures, equipment,
  and automobiles], as a whole at the value remaining after deducting
  the following from the total value of its entire assets:
               (1)  all debts that it owes;
               (2)  all tax-free securities that it owns;
               (3)  its loss reserves and surplus;
               (4)  its savings liability; [and]
               (5)  the appraised value of its [furniture, fixtures,
  and] real property; and
               (6)  the value of its tangible personal property.
         (b)  The association or federal association shall render the
  personal property, other than tangible personal property
  [furniture, fixtures, equipment, and automobiles], to the chief
  appraiser of the appraisal office [district] in the county in which
  its principal office is located.
         SECTION 79.  Subchapter M, Chapter 403, Government Code, is
  amended by adding Section 403.3001 to read as follows:
         Sec. 403.3001.  DETERMINATION OF SCHOOL DISTRICT PROPERTY
  VALUES.  A reference in law to the taxable value or total taxable
  value of property in a school district as determined under this
  subchapter means the total taxable value of that property as
  determined by the assessor for the district under Section 26.04,
  Tax Code.
         SECTION 80.  Chapter 245, Local Government Code, is amended
  by adding Section 245.008 to read as follows:
         Sec. 245.008.  NOTIFICATION OF APPRAISAL OFFICE OF ISSUANCE
  OF CERTAIN PERMITS.  A political subdivision that issues a
  real-property-related permit shall notify the appraisal office
  established for the county in which the property is located of the
  issuance of the permit.
         SECTION 81.  Section 1151.1015, Occupations Code, is amended
  to read as follows:
         Sec. 1151.1015.  ASSISTANCE FROM COMPTROLLER.  The
  comptroller shall enter into a memorandum of understanding with the
  department under which the comptroller shall provide:
               (1)  information on the educational needs of and
  opportunities for tax professionals;
               (2)  review and approval of all required educational
  courses, examinations, and continuing education programs for
  registrants; and
               (3)  [a copy of any report issued by the comptroller
  under Section 5.102, Tax Code, and if requested by the department a
  copy of any work papers or other documents collected or created in
  connection with a report issued under that section; and
               [(4)]  information and assistance regarding
  administrative proceedings conducted under the commission's rules
  or this chapter.
         SECTION 82.  Section 1151.204(c), Occupations Code, is
  amended to read as follows:
         (c)  This section does not apply to:
               (1)  [a matter referred to the department by the
  comptroller under Section 5.102, Tax Code, or a successor statute;
               [(2)]  a complaint concerning a registrant's failure to
  comply with the registration and certification requirements of this
  chapter; or
               (2) [(3)]  a complaint concerning a newly appointed
  chief appraiser's failure to complete the training program
  described by Section 1151.164.
         SECTION 83.  Section 503.038(a), Transportation Code, is
  amended to read as follows:
         (a)  The department may cancel a dealer's general
  distinguishing number if the dealer:
               (1)  falsifies or forges a title document, including an
  affidavit making application for a certified copy of a title;
               (2)  files a false or forged tax document, including a
  sales tax affidavit;
               (3)  fails to take assignment of any basic evidence of
  ownership, including a certificate of title or manufacturer's
  certificate, for a vehicle the dealer acquires;
               (4)  fails to assign any basic evidence of ownership,
  including a certificate of title or manufacturer's certificate, for
  a vehicle the dealer sells;
               (5)  uses or permits the use of a metal dealer's license
  plate or a dealer's temporary tag on a vehicle that the dealer does
  not own or control or that is not in stock and offered for sale;
               (6)  makes a material misrepresentation in an
  application or other information filed with the department;
               (7)  fails to maintain the qualifications for a general
  distinguishing number;
               (8)  fails to provide to the department within 30 days
  after the date of demand by the department satisfactory and
  reasonable evidence that the person is regularly and actively
  engaged in business as a wholesale or retail dealer;
               (9)  has been licensed for at least 12 months and has
  not assigned at least five vehicles during the previous 12-month
  period;
               (10)  [has failed to demonstrate compliance with
  Sections 23.12, 23.121, and 23.122, Tax Code;
               [(11)]  uses or allows the use of the dealer's general
  distinguishing number or the location for which the general
  distinguishing number is issued to avoid the requirements of this
  chapter;
               (11) [(12)]  misuses or allows the misuse of a
  temporary tag authorized under this chapter;
               (12) [(13)]  refuses to show on a buyer's temporary tag
  the date of sale or other reasonable information required by the
  department; or
               (13) [(14)]  otherwise violates this chapter or a rule
  adopted under this chapter.
         SECTION 84.  (a)  The following provisions of the Tax Code
  are repealed:
               (1)  Section 1.12;
               (2)  Section 5.07(c);
               (3)  Section 5.10;
               (4)  Section 5.102;
               (5)  Section 5.12;
               (6)  Section 5.13;
               (7)  Section 5.16;
               (8)  Section 6.03;
               (9)  Section 6.031;
               (10)  Section 6.033;
               (11)  Section 6.034;
               (12)  Section 6.035(a-1);
               (13)  Section 6.036(a);
               (14)  Section 6.037;
               (15)  Section 6.04;
               (16)  Section 6.0501;
               (17)  Section 6.051;
               (18)  Section 6.061;
               (19)  Section 6.10;
               (20)  Section 6.15;
               (21)  Section 6.24(c);
               (22)  Section 11.11(h);
               (23)  Section 11.14;
               (24)  Section 11.141;
               (25)  Section 11.145;
               (26)  Section 11.15;
               (27)  Section 11.16;
               (28)  Section 11.161;
               (29)  Section 11.23(f);
               (30)  Section 11.25;
               (31)  Section 11.251;
               (32)  Section 11.252;
               (33)  Section 11.253;
               (34)  Section 11.254;
               (35)  Section 11.271;
               (36)  Section 11.311;
               (37)  Section 11.315;
               (38)  Section 11.33;
               (39)  Section 11.437;
               (40)  Section 11.4391;
               (41)  Section 21.02;
               (42)  Section 21.021;
               (43)  Section 21.03;
               (44)  Section 21.031;
               (45)  Section 21.04;
               (46)  Section 21.05;
               (47)  Section 21.055;
               (48)  Section 21.07;
               (49)  Section 21.09;
               (50)  Section 21.10;
               (51)  Sections 22.01(e), (i), (j), (k), and (m);
               (52)  Sections 22.04(b), (c), and (d);
               (53)  Sections 22.07(a) and (b);
               (54)  Section 23.121;
               (55)  Section 23.1211;
               (56)  Section 23.122;
               (57)  Section 23.123;
               (58)  Section 23.124;
               (59)  Section 23.1241;
               (60)  Section 23.1242;
               (61)  Section 23.1243;
               (62)  Section 23.125;
               (63)  Section 23.126;
               (64)  Section 23.127;
               (65)  Section 23.128;
               (66)  Section 23.129;
               (67)  Section 23.24;
               (68)  Chapter 24;
               (69)  Sections 25.18(b) and (c);
               (70)  Section 33.11;
               (71)  Subchapter B, Chapter 33;
               (72)  Section 41.413(a);
               (73)  Section 41.47(c-1);
               (74)  Section 42.03;
               (75)  Section 42.05; and
               (76)  Section 42.26(c).
         (b)  Section 25.12(c), Tax Code, as added by Chapter 450
  (H.B. 1831), Acts of the 71st Legislature, Regular Session, 1989,
  is repealed.
         (c)  Sections 49.302(b) and 49.304, Education Code, are
  repealed.
         (d)  Section 89.003(c), Finance Code, is repealed.
         (e)  The following provisions of the Government Code are
  repealed:
               (1)  Section 403.301;
               (2)  Section 403.3011;
               (3)  Section 403.302;
               (4)  Section 403.303; and
               (5)  Section 403.304.
         (f)  Sections 379B.011(c), (d), and (e), Local Government
  Code, are repealed.
         SECTION 85.  (a)  On the effective date of this Act:
               (1)  each appraisal district and appraisal district
  board of directors is abolished;
               (2)  an appraisal office is established for each
  county;
               (3)  the county assessor-collector of each county
  begins to govern the appraisal office established for that county;
               (4)  all personnel, property, records, and funds of an
  appraisal district are transferred to the appraisal office for the
  county for which the appraisal district was established;
               (5)  all unpaid debts incurred by an appraisal district
  become debts of the appraisal office for the county for which the
  appraisal district was established;
               (6)  the appraisal office for the county for which an
  appraisal district was established is substituted for the appraisal
  district in any pending action, including a protest or challenge
  before an appraisal review board or an appeal or other action in a
  court; and
               (7)  the appraisal review board of an appraisal office
  established for a county is substituted for the appraisal review
  board of the appraisal district established for the county in any
  pending action, including a protest or challenge before the
  appraisal review board or an appeal or other action in a court.
         (b)  A measure taken or adopted by the board of directors of
  an appraisal district established for a county before the effective
  date of this Act that is in effect on the effective date of this Act
  continues in effect after the effective date of this Act until
  superseded by a measure taken or adopted by the county
  assessor-collector who governs the appraisal office established
  for that county.
         SECTION 86.  As soon as practicable on or after January 1,
  2024, the county assessor-collector who governs each appraisal
  office shall dispose of the real property owned by the office.  The
  county assessor-collector may use the proceeds to pay the debts of
  the appraisal office or to cover the cost of administration of the
  office.
         SECTION 87.  (a)  Sections 6.035, 6.05, 6.41, 6.411, and
  6.412, Tax Code, as amended by this Act, apply only to an offense
  committed on or after the effective date of this Act.  An offense
  committed before the effective date of this Act is governed by the
  law in effect on the date the offense was committed, and the former
  law is continued in effect for that purpose.  For purposes of this
  subsection, an offense was committed before the effective date of
  this Act if any element of the offense occurred before that date.
         (b)  Sections 6.15, 23.121, 23.122, 23.123, 23.124, 23.125,
  23.126, 23.127, and 23.128, Tax Code, as repealed by this Act, apply
  only to an offense committed before the effective date of this Act.  
  An offense committed before the effective date of this Act is
  governed by the law in effect on the date the offense was committed,
  and the former law is continued in effect for that purpose.  For
  purposes of this subsection, an offense was committed before the
  effective date of this Act if any element of the offense occurred
  before that date.
         SECTION 88.  (a)  As soon as practicable on or after January
  1, 2024, the state senators and state representatives whose
  districts contain any part of the territory included in the county
  for which an appraisal office is established, in the manner
  provided by Section 6.12, Tax Code, as amended by this Act, shall
  appoint the members of the agricultural advisory board for the
  appraisal office.  The county assessor-collector who governs the
  appraisal office by resolution shall provide for staggered terms
  for the members as necessary to comply with Section 6.12(c), Tax
  Code.
         (b)  The changes made to Section 6.12, Tax Code, by this Act
  apply only to the appointment of agricultural advisory board
  members to terms beginning on or after January 1, 2024.  This Act
  does not affect the term of an agricultural advisory board member
  serving on December 31, 2023, if the member was appointed before
  January 1, 2024, to a term that began before December 31, 2023.
         SECTION 89.  (a)  As soon as practicable on or after January
  1, 2024, the state senators and state representatives whose
  districts contain any part of the territory included in the county
  for which an appraisal office is established, in the manner
  provided by Section 6.41, Tax Code, as amended by this Act, shall
  appoint the members of the appraisal review board for the appraisal
  office.  The county assessor-collector who governs the appraisal
  office by resolution shall provide for staggered terms for the
  members as necessary to comply with Section 6.41(i), Tax Code, as
  amended by this Act.
         (b)  The changes made to Section 6.41, Tax Code, by this Act
  apply only to the appointment of appraisal review board members to
  terms beginning on or after January 1, 2024.  This Act does not
  affect the term of an appraisal review board member serving on
  December 31, 2023, if the member was appointed before January 1,
  2024, to a term that began before December 31, 2023, and expires
  December 31, 2024.
         SECTION 90.  Section 23.231, Tax Code, as added by this Act,
  applies only to the appraisal of real property for ad valorem tax
  purposes for a tax year that begins on or after the effective date
  of this Act.
         SECTION 91.  As soon as practicable after the effective date
  of this Act, the comptroller of public accounts by rule shall adopt
  forms and procedures necessary for the implementation of Section
  23.231, Tax Code, as added by this Act.
         SECTION 92.  (a)  The changes in law made by this Act to
  Subchapter M, Chapter 403, Government Code, apply only to the
  determination of the total taxable value of property in a school
  district for a tax year that begins after December 31, 2023. The
  determination of the total taxable value of property in a school
  district for a tax year that begins before that date is governed by
  Subchapter M, Chapter 403, Government Code, as that subchapter
  existed when the tax year began, and the former law is continued in
  effect for that purpose.
         (b)  Notwithstanding the changes in law made by this Act to
  the provisions of the Tax Code, Agriculture Code, Business &
  Commerce Code, Finance Code, and Transportation Code amended by
  this Act and the repeal by this Act of provisions of the Tax Code and
  Finance Code, each of those provisions, as it existed immediately
  before January 1, 2022, is continued in effect for the purpose of
  the levy and collection of an ad valorem tax on tangible personal
  property imposed:
               (1)  before January 1, 2022; or
               (2)  pursuant to Section 1(l), Article VIII, Texas
  Constitution.
         SECTION 93.  (a)  If the constitutional amendment proposed
  by the 87th Legislature, Regular Session, 2021, authorizing the
  legislature to provide for the appraisal of certain real property
  for ad valorem tax purposes based on its purchase price, exempting
  all tangible personal property in this state from ad valorem
  taxation, and authorizing the legislature to permit legislators to
  appoint members of the board of equalization for an appraisal
  entity is approved by the voters, the Special Tax Code Board is
  created to recommend amendments to the Tax Code and other law to
  efficiently and effectively implement the amendment.
         (b)  The board consists of nine members appointed as follows:
               (1)  seven members appointed by the governor;
               (2)  one member appointed by the lieutenant governor;
  and
               (3)  one member appointed by the speaker of the house of
  representatives.
         (c)  The board shall make legislative recommendations on
  amendments to the Tax Code and other law required to implement the
  constitutional amendment and otherwise improve the system for
  appraising property for ad valorem tax purposes, including
  recommendations regarding:
               (1)  the abolition of appraisal districts and the
  transfer of their functions to the county assessor-collectors'
  offices;
               (2)  the procedure to be used in appraising real
  property for ad valorem tax purposes, including the appraisal of
  such property on the basis of the purchase price of the property;
               (3)  the reporting of information regarding sales of
  real property to the appraisal office and the use of that
  information by the appraisal office;
               (4)  the notification of an appraisal office by a
  political subdivision regarding real-property-related permits
  issued by the political subdivision; and
               (5)  the procedure for appointing appraisal review
  board members.
         (d)  Not later than September 1, 2022, the board shall submit
  a report to the governor, lieutenant governor, speaker of the house
  of representatives, comptroller of public accounts, Legislative
  Budget Board, and legislature regarding the board's
  recommendations.
         (e)  This section expires September 1, 2023.
         SECTION 94.  To the extent of any conflict, this Act prevails
  over another Act of the 87th Legislature, Regular Session, 2021,
  relating to nonsubstantive additions to and corrections in enacted
  codes.
         SECTION 95.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect January 1, 2024, but only if the
  constitutional amendment proposed by the 87th Legislature, Regular
  Session, 2021, authorizing the legislature to provide for the
  appraisal of certain real property for ad valorem tax purposes
  based on its purchase price, exempting all tangible personal
  property in this state from ad valorem taxation, and authorizing
  the legislature to permit legislators to appoint members of the
  board of equalization for an appraisal entity is approved by the
  voters.  If that amendment is not approved by the voters, this Act
  has no effect.
         (b)  Subject to Subsection (a) of this section, the section
  of this Act creating the Special Tax Code Board takes effect January
  1, 2022.