By: Parker S.B. No. 2357
 
 
 
   
 
 
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. Section 81.024, Government Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  If the supreme court adopts the Texas Disciplinary Rules
  of Professional Conduct under Subsection (b), the rules must
  provide that it is a violation of the Texas Disciplinary Rules of
  Professional Conduct for an attorney to make a request described by
  Section 42.23(i), Tax Code. An attorney who violates that rule is
  subject to discipline under Subchapter E. 
         SECTION 2.  Section 1.111, Tax Code, is amended by amending
  Subsection (d) and adding Subsection (d-1) to read as follows:
         (d)  Except as provided by Subsection (d-1), a [A] property
  owner may not designate more than one agent to represent the
  property owner in connection with an item of property. The
  designation of an agent in connection with an item of property
  revokes any previous designation of an agent in connection with
  that item of property.
         (d-1)  A property owner may designate a different agent to
  represent the property owner in connection with an item of property
  in a different tax year without revoking any previous designation
  of an agent in connection with the same item of property in a
  previous tax year. 
         SECTION 3.  Section 5.07, Tax Code, is amended by adding
  Subsection (k) to read as follows:
         (k)  The comptroller shall prescribe the form that an
  appraisal review board shall use to make a determination required 
  to be made by written order under this title.  The form must require
  an appraisal review board to include for the property subject to the
  order the property owner's name, the property's identification
  number, the property's legal description and physical address, and
  any other information the comptroller determines necessary. The
  comptroller shall post the form on the comptroller's Internet
  website. 
         SECTION 4.  Section 11.161, Tax Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  For purposes of Subsection (a), farm or ranch products
  may be produced by hydroponic farming. 
         SECTION 5.  Section 11.24, Tax Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  For purposes of a structure or archeological site and
  land subject to an exemption under this section, the property owner
  may protest the appraised value of the structure or archeological
  site and the appraised value of the land separately. A property
  owner may protest the allocation of appraised value between the
  structure or archeological site and the land. 
         SECTION 6.  Section 11.43(i), Tax Code, is amended to read as
  follows:
         (i)  If the chief appraiser discovers that an exemption that
  is not required to be claimed annually has been erroneously allowed
  in any one of the three [five] preceding years for real property, or
  in either of the two preceding years for personal property, the
  chief appraiser shall add the property or appraised value that was
  erroneously exempted for each year to the appraisal roll as
  provided by Section 25.21 of this code for other property that
  escapes taxation. If an exemption that was erroneously allowed did
  not apply to all taxing units in which the property was located, the
  chief appraiser shall note on the appraisal records, for each prior
  year, the taxing units that gave the exemption and are entitled to
  impose taxes on the property or value that escaped taxation.
         SECTION 7.  Subchapter C, Chapter 11, Tax Code, is amended by
  adding Section 11.4392 to read as follows:
         Sec. 11.4392.  LATE APPLICATION FOR PROPERTY EXEMPTED FROM
  TAXATION BY AGREEMENT. The chief appraiser shall accept and
  approve or deny an application for an exemption a person is entitled
  to receive under Section 11.28 or an agreement entered into under
  Chapter 312 after the deadline for filing it has passed if it is
  filed on or before June 15. 
         SECTION 8.  Section 22.28(a), Tax Code, is amended to read as
  follows:
         (a)  Except as otherwise provided by Section 22.30, the chief
  appraiser shall impose a penalty on a person who fails to timely
  file a rendition statement or property report required by this
  chapter in an amount equal to five [10] percent of the total amount
  of taxes imposed on the property for that year by taxing units
  participating in the appraisal district. The chief appraiser shall
  deliver by first class mail a notice of the imposition of the
  penalty to the person. The notice may be delivered with a notice of
  appraised value provided under Section 25.19, if practicable.
         SECTION 9.  Section 22.30, Tax Code, is amended by adding
  Subsection (a-2) to read as follows:
         (a-2)  The chief appraiser shall waive the penalty imposed by
  Section 22.28 if the property owner has not previously filed a
  delinquent rendition statement or property report for that parcel
  of property. 
         SECTION 10.  Section 23.51(2), Tax Code, is amended to read
  as follows:
               (2)  "Agricultural use" includes but is not limited to
  the following activities: cultivating the soil, producing crops for
  human food, animal feed, or planting seed or for the production of
  fibers; floriculture, viticulture, and horticulture; raising or
  keeping livestock; raising or keeping exotic animals for the
  production of human food or of fiber, leather, pelts, or other
  tangible products having a commercial value; planting cover crops
  or leaving land idle for the purpose of participating in a
  governmental program, provided the land is not used for residential
  purposes or a purpose inconsistent with agricultural use; and
  planting cover crops or leaving land idle in conjunction with
  normal crop or livestock rotation procedure. The term also includes
  the use of land to produce or harvest logs and posts for the use in
  constructing or repairing fences, pens, barns, or other
  agricultural improvements on adjacent qualified open-space land
  having the same owner and devoted to a different agricultural use.
  The term also includes the use of land for wildlife management. The
  term also includes the use of land to raise or keep bees for
  pollination or for the production of human food or other tangible
  products having a commercial value, provided that the land used is
  not less than 5 or more than 20 acres. The term also includes the use
  of land for hydroponic farming. 
         SECTION 11.  Section 23.52, Tax Code, is amended by adding
  Subsection (h) to read as follows:
         (h)  The chief appraiser may appraise a portion of a parcel
  of land according to this chapter if the portion qualifies for
  appraisal under this subchapter but the remainder of the parcel
  does not.
         SECTION 12.  Subchapter D, Chapter 23, Tax Code, is amended
  by adding Section 23.527 to read as follows:
         Sec. 23.527.  ELIGIBILITY OF LAND PREVIOUSLY DEVOTED TO
  SOLAR OR WIND POWER FACILITY. (a)  In this section: 
                     (1)  "Solar power facility" has the meaning
  assigned by Section 302.0001, Utilities Code. 
                     (2)  "Wind power facility" has the meaning
  assigned by Section 301.0001, Utilities Code.
         (b)  This section applies only to land: 
               (1)  that was previously appraised as qualified
  open-space land as provided by this subchapter; 
               (2)  that became ineligible for appraisal as provided
  by this subchapter due to a change of use caused by the development
  of a solar power facility or a wind power facility on the land; 
               (3)  on which the solar power facility or wind power
  facility described by Subdivision (2) is no longer in operation;
  and 
               (4)  that is currently devoted principally to
  agricultural use to the degree of intensity generally accepted in
  the area.
         (c)  Notwithstanding any other provision of this subchapter,
  land described by Subsection (b) is qualified open-space land. 
         SECTION 13.  Section 25.25, Tax Code, is amended by adding
  Subsection (q) to read as follows:
         (q)  An appraisal review board shall issue a written order
  under this section using the form prescribed by the comptroller
  under Section 5.07(k). 
         SECTION 14.  Chapter 25, Tax Code, is amended by adding
  Section 25.255 to read as follows:
         Sec. 25.255.  EXACT CORRECTION OF ROLL.  A chief appraiser
  that corrects the appraisal roll to include the appraised value of
  property, including as determined by an appraisal review board
  under Chapter 25.25 or Chapter 41, or a district court under Chapter
  42, must correct the roll to show the exact dollar amount of the new
  appraised value. 
         SECTION 15.  Section 26.09, Tax Code, is amended by amending
  Subsection (d) and adding Subsection (d-3) to read as follows:
         (d)  If a property is subject to taxation for a prior year in
  which it escaped taxation, the assessor shall calculate the tax for
  each year separately. In calculating the tax, the assessor shall
  use the assessment ratio and tax rate in effect in the taxing unit
  for the year for which back taxes are being imposed. Except as
  provided by Subsections [Subscction] (d-1) and (d-3), the amount of
  back taxes due incurs interest calculated at the rate provided by
  Section 33.01(c) from the date the tax would have become delinquent
  had the tax been imposed in the proper tax year.
         (d-3)  Back taxes assessed under Subsection (d) on property a
  chief appraiser discovers was omitted from an appraisal roll under
  Section 25.21 do not incur interest as required by Subsection (d). 
         SECTION 16.  Section 31.01(c), Tax Code, is amended to read
  as follows:
         (c)  The tax bill or a separate statement accompanying the
  tax bill shall:
               (1)  identify the property subject to the tax;
               (2)  state the appraised value, assessed value, and
  taxable value of the property, which must be exact and not rounded
  numbers;
               (3)  if the property is land appraised as provided by
  Subchapter C, D, E, or H, Chapter 23, state the market value and the
  taxable value for purposes of deferred or additional taxation as
  provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
               (4)  state the assessment ratio for the unit;
               (5)  state the type and amount of any partial exemption
  applicable to the property, indicating whether it applies to
  appraised or assessed value;
               (6)  state the total tax rate for the unit;
               (7)  state the amount of tax due, the due date, and the
  delinquency date;
               (8)  explain the payment option and discounts provided
  by Sections 31.03 and 31.05, if available to the unit's taxpayers,
  and state the date on which each of the discount periods provided by
  Section 31.05 concludes, if the discounts are available;
               (9)  state the rates of penalty and interest imposed
  for delinquent payment of the tax;
               (10)  include the name and telephone number of the
  assessor for the unit and, if different, of the collector for the
  unit;
               (11)  for real property, state for the current tax year
  and each of the preceding five tax years:
                     (A)  the appraised value and taxable value of the
  property;
                     (B)  the total tax rate for the unit;
                     (C)  the amount of taxes imposed on the property
  by the unit; and
                     (D)  the difference, expressed as a percent
  increase or decrease, as applicable, in the amount of taxes imposed
  on the property by the unit compared to the amount imposed for the
  preceding tax year; [and]
               (12)  for real property, state the differences,
  expressed as a percent increase or decrease, as applicable, in the
  following for the current tax year as compared to the fifth tax year
  before that tax year:
                     (A)  the appraised value and taxable value of the
  property;
                     (B)  the total tax rate for the unit; and
                     (C)  the amount of taxes imposed on the property
  by the unit; and 
               (13)  include the appraisal district account number for
  the property.
         SECTION 17.  Section 41.07(a), Tax Code, is amended to read
  as follows:
         (a)  The appraisal review board shall determine each
  challenge and make its decision by written order using the form
  prescribed by the comptroller under Section 5.07(k).
         SECTION 18.  Section 41.45(b), Tax Code, is amended to read
  as follows:
         (b)  A property owner initiating a protest is entitled to
  appear in-person to offer evidence or argument, and may not be
  denied a hearing at which the property owner and chief appraiser are
  both present in-person.  A property owner may offer evidence or
  argument by affidavit without personally appearing and may appear
  by telephone conference call or videoconference to offer argument.
  A property owner who appears by telephone conference call or
  videoconference must offer any evidence by affidavit. A property
  owner must submit an affidavit described by this subsection to the
  board hearing the protest before the board begins the hearing on the
  protest. On receipt of an affidavit, the board shall notify the
  chief appraiser.  The chief appraiser may inspect the affidavit and
  is entitled to a copy on request.
         SECTION 19.  Section 41.47(a), Tax Code, is amended to read
  as follows:
         (a)  The appraisal review board hearing a protest shall
  determine the protest and make its decision by written order using
  the form prescribed by the comptroller under Section 5.07(k).
         SECTION 21  Section 41.67, Tax Code, is amended by adding
  Subsection (f) to read as follows:
         (f)  A property owner may submit evidence electronically at
  any point before or during a hearing. 
         SECTION 21.  Section 41A.09, Tax Code, is amended by adding
  Subsection (f) to read as follows:
         (f)  The arbitrator may not determine the appraised value of
  the property that is the subject of an arbitration to be an amount
  greater than the appraised value of the property as shown in the
  appraisal records submitted to the appraisal review board by the
  chief appraiser under Section 25.22 or 25.23, except as requested
  and agreed to by the property owner. 
  SECTION 22.  Section 42.01, Tax Code, is amended by adding
  Subsection (d) to read as follows:
         (d)  Notwithstanding Subsection (a), a person who owned
  property at any time during a tax year but no longer owns the
  property is entitled to file an appeal under this chapter as if the
  person were the current owner of the property, regardless of
  whether the person is the person subject to an order described by
  that subsection. 
         SECTION 23.  Section 42.21, Tax Code, is amended by amending
  Subsections (a), (b), and (c) and adding Subsections (a-1) and
  (a-2) to read as follows:
         (a)  A party who appeals as provided by this chapter must
  file a petition for review with the district court not later than
  the later of: 
               (1)  the 60th day [within 60 days] after the date the
  party receives [rcccivcd] notice that a final order has been
  entered from which the [an] appeal may be had; or
               (2)  September 1 of the year in which the final order is
  entered [at any time after the hearing but before the 60 day
  deadline]. 
         (a-1)  Subject to Subsection (a), a party may file a petition
  for review under this section at any time after: 
               (1)  the protest hearing, regardless of whether the
  party has received notice that a final order has been entered; 
               (2)  notifying the appraisal review board that the
  chief appraiser and the party have agreed to a disposition of the
  protest and requesting the board to issue an agreed order under
  Section 41.47(g) or (g-1); or
               (3)  submitting an affidavit to the board hearing the
  protest under Section 41.45(b). 
         (a-2)  Failure to timely file a petition bars any appeal
  under this chapter.
         (b)  [A petition for review brought under Section 42.02 must
  be brought against the owner of the property involved in the
  appeal.] A petition for review brought under Section 42.031 must be
  brought against the appraisal district and against the owner of the
  property involved in the appeal. A petition for review brought
  under Section 42.01(a)(2) or 42.03 must be brought against the
  comptroller. Any other petition for review under this chapter must
  be brought against the appraisal district. A petition for review
  may not be brought against the appraisal review board.  An appraisal
  district may hire an attorney that represents the district to
  represent the appraisal review board established for the district
  to file an answer and obtain a dismissal of a suit filed against the
  appraisal review board in violation of this subsection.
         (c)  If an appeal under this chapter is pending when the
  appraisal review board issues an order in a subsequent year under a
  protest by the same property owner and that protest relates to the
  same property that is involved in the pending appeal, the property
  owner may appeal the subsequent appraisal review board order by
  amending the original petition for the pending appeal to include
  the grounds for appealing the subsequent order.  The amended
  petition must be filed with the court not later than the 90th day
  after the date the property owner receives notice that a final order
  has been entered from which an appeal may be had [in the period
  provided by Subsection (a) for filing a petition for review of the
  subsequent order].  A property owner may appeal the subsequent
  appraisal review board order under this subsection or may appeal
  the order independently of the pending appeal as otherwise provided
  by this section, but may not do both.  A property owner may change
  the election of remedies provided by this subsection at any time
  before the end of the period provided by Subsection (a) for filing a
  petition for review.
         SECTION 24.  Section 42.23, Tax Code, is amended by adding
  Subsections (a-1), (a-2), (i), (j), (k), (l), and (m) to read as
  follows:
         (a-1)  A chief appraiser, appraisal district, or appraisal
  review board may not bring a counterclaim in an appeal brought under
  this chapter. 
         (a-2)  An appraisal district may not seek affirmative relief
  in an appeal brought under this chapter. 
         (i)  An entity is not required to be registered to do
  business in this state in order to file an appeal under this chapter
  or to be considered a proper party to bring a petition. A formal or
  informal request for information regarding an entity's
  registration status:
               (1)  is outside the scope of permissible discovery in
  an appeal under this chapter; 
               (2)  may not be made a prerequisite to a settlement
  discussion related to that appeal; and 
               (3)  may be grounds for sanctions by the court on the
  motion of a party. 
         (j)  A party to an appeal under this chapter may file an
  objection to third-party discovery.  The court shall grant
  third-party discovery subject to the objection only if the
  discovery:
               (1) is necessary under generally accepted appraisal
  methods and techniques to determine the value of the property that
  is the subject of the appeal; and
               (2)  would be admissible at trial. 
         (k)  A party to an appeal under Section 42.26 may file an
  objection to a discovery request for a closing statement, a rent
  roll, or an operating statement.  The court shall grant the
  discovery request subject to the objection only if the discovery: 
               (1)  is necessary under generally accepted appraisal
  methods and techniques to determine the value of the property that
  is the subject of the appeal; and 
               (2)  would be admissible at trial. 
         (l) The district court may not order discovery unless
  discovery is requested by a party to the appeal. 
         (m)  The district court may not: 
               (1)  impose deadlines for discovery related to an
  expert witness, including deadlines for designating an expert
  witness, that fall before the deadlines specified by the Texas
  Rules of Civil Procedure; or 
               (2)  otherwise accelerate discovery related to an
  expert witness, unless agreed to by the parties. 
         SECTION 25.  Subchapter B, Chapter 42, Tax Code, is amended
  by adding Sections 42.232 and 42.233 to read as follows:
         Sec. 42.232.  TRIAL DATE. (a)  A district court may not set a
  trial date on an appeal that is less than 12 months after the date
  the appeal is filed, unless the parties agree to an earlier trial
  date.
         (b)  On request of a party to an appeal, the district court
  shall: 
               (1)  grant a continuance if the party requesting the
  continuance has not previously been granted a continuance; 
               (2)  set a new trial date that is not less than six
  months after the date for which the original trial was set; and 
               (3)  extend all litigation deadlines proportionally. 
         Sec. 42.233.  TRANSFER OF APPEAL TO STATE OFFICE OF
  ADMINISTRATIVE HEARINGS. On request of a property owner who is a
  party to an appeal under this chapter and who was eligible to file
  the appeal under Subchapter Z, Chapter 2003, Government Code, the
  district court shall transfer the appeal to the State Office of
  Administrative Hearings to determine the appeal under that
  subchapter. The property owner must make the request not later than
  the 30th day before the date on which the trial is originally set to
  begin. 
         SECTION 26.  Section 42.26, Tax Code, is amended by adding
  Subsections (e) and (f) to read as follows:
         (e)  A district court may not determine the appraised value
  of the property that is subject to an appeal under this section to
  be an amount greater than the appraised value of the property as
  shown in the appraisal records submitted to the board by the chief
  appraiser under Section 25.22 or 25.23.
         (f)  If a claim that a property is appraised unequally is the
  sole cause of action in an appeal, the appraisal district may not
  request through discovery financial information related to the
  property, including a rent roll or appraisal
         SECTION 27.  Section 42.41(b), Tax Code, is amended to read
  as follows:
         (b)  The assessor for each affected taxing unit shall correct
  the tax roll and other appropriate records for which the assessor is
  responsible. The assessor must correct the tax roll to indicate the
  exact dollar amount of the corrected value. 
         SECTION 28.  Sections 42.43(b-1), (f), and (g), Tax Code,
  are amended to read as follows:
         (b-1)  A taxing unit may not send a refund made under this
  section before the earlier of:
               (1)  the 60th [21st] day after the final determination
  of the appeal; or
               (2)  the date the property owner files the form
  prescribed by Subsection (i) with the taxing unit.
         (f)  The final judgment in an appeal under this chapter shall  
  [may] designate to whom and where a refund is to be sent if the
  property owner or the property owner's agent designated under
  Section 1.111 files the form required under Subsection (i).
         (g)  If a form prescribed by the comptroller under Subsection
  (i) is filed with a taxing unit before the 60th [21st] day after the
  final determination of an appeal that requires a refund be made, the
  taxing unit shall send the refund to the person and address
  designated on the form.
         SECTION 29.  Section 42.02, Tax Code, is repealed.
         SECTION 30.  As soon as practicable after the effective date
  of this Act, the Texas Supreme Court shall adopt rules as required
  by Section 81.024(c), Government Code, as added by this Act.
         SECTION 31.  As soon as practicable but not later than the
  effective date of this Act, the comptroller of public accounts
  shall prescribe and post on the comptroller's Internet website the
  form required by Section 5.07(k), Tax Code, as added by this Act.
         SECTION 32.  Sections 5.07, 25.25, 41.07, and 41.47, Tax
  Code, as amended by this Act, apply only to an appraisal review
  board order issued on or after the effective date of this Act. An
  appraisal review board order issued before the effective date of
  this Act is governed by the law in effect on the date the order was
  issued, and the former law is continued in effect for that purpose.
         SECTION 33.  Sections 11.161 and 11.24, Tax Code, as amended
  by this Act, apply only to ad valorem taxes imposed for an ad
  valorem tax year that begins on or after the effective date of this
  Act.
         SECTION 34.  Section 11.43(i), Tax Code, as amended by this
  Act, applies only to an erroneously allowed exemption discovered on
  or after the effective date of this Act. An erroneously allowed
  exemption discovered before the effective date of this Act is
  governed by the law in effect on the date the exemption was
  discovered, and the former law is continued in effect for that
  purpose.
         SECTION 35.  Section 11.4392, Tax Code, as added by this Act,
  applies only to an application for an ad valorem tax exemption
  submitted to a chief appraiser on or after the effective date of
  this Act.
         SECTION 36.  Sections 22.28(a) and 22.30, Tax Code, as
  amended by this Act, apply only to a rendition statement or property
  report required to be filed on or after the effective date of this
  Act. A rendition statement or property report required to be filed
  before the effective date of this Act is governed by the law in
  effect on the date the statement or report was required to be filed,
  and the former law is continued in effect for that purpose.
         SECTION 37.  Section 23.52, Tax Code, as amended by this Act
  and Section 23.527, Tax Code, as added by this Act, apply only to
  the appraisal of land for ad valorem tax purposes for a tax year
  that begins on or after the effective date of this Act.
         SECTION 38.  Section 26.09, Tax Code, as amended by this Act,
  applies only to taxes assessed on property as provided by
  Subsection (d) of that section on or after the effective date of
  this Act. Taxes assessed on property before the effective date of
  this Act are governed by the law in effect on the date the taxes were
  assessed, and the former law is continued in effect for that
  purpose.
         SECTION 39.  Section 41A.09(f), Tax Code, as added by this
  Act, applies only to a determination of appraised value made by an
  arbitrator under Chapter 41A, Tax Code, on or after the effective
  date of this Act.
         SECTION 40.  Chapter 42, Tax Code, as amended by this Act,
  applies only to an appeal under that chapter that is filed on or
  after the effective date of this Act. An appeal filed before the
  effective date of this Act is governed by the law in effect on the
  date the appeal was filed, and the former law is continued in effect
  for that purpose.
         SECTION 41.  This Act takes effect January 1, 2024.