Texas 2009 - 81st Regular

Texas House Bill HB134 Compare Versions

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1	1	81R1923 SMH-D
2	2	By: Villarreal H.B. No. 134
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to ad valorem taxation.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	ARTICLE 1. STATE ADMINISTRATION OF PROPERTY TAX SYSTEM
10	10	SECTION 1.01. Chapter 5, Tax Code, is amended by adding
11	11	Sections 5.01 and 5.02 to read as follows:
12	12	Sec. 5.01. OFFICE OF PROPERTY APPRAISAL. (a) The Office of
13	13	Property Appraisal is established as an office in the comptroller's
14	14	office.
15	15	(b) The office is under the direction and control of the
16	16	comptroller.
17	17	(c) Unless the context indicates otherwise, a reference in
18	18	another law or an administrative rule to the comptroller in
19	19	connection with state administration of the property tax system
20	20	means the Office of Property Appraisal.
21	21	Sec. 5.02. OFFICE OF PROPERTY TAX PUBLIC COUNSEL. (a) The
22	22	Office of Property Tax Public Counsel is established as an office in
23	23	the Office of Property Appraisal.
24	24	(b) The office is headed by a property tax public counsel
25	25	appointed by the comptroller.
26	26	(c) The property tax public counsel shall represent the
27	27	interests of owners of single-family residential property and small
28	28	businesses in property tax matters.
29	29	(d) The property tax public counsel may:
30	30	(1) represent a property owner in a protest under
31	31	Chapter 41 or an appeal through binding arbitration under Chapter
32	32	41A; and
33	33	(2) appear or intervene, as a party or otherwise, as a
34	34	matter of right on behalf of owners of single-family residential
35	35	property or small businesses, as a class, in an action under Section
36	36	43.01 or bring an action under that section, regardless of whether
37	37	the property tax public counsel is affected by the appraisal
38	38	district or appraisal review board's failure to comply with the
39	39	law.
40	40	SECTION 1.02. This article takes effect January 1, 2010,
41	41	but only if the constitutional amendment proposed by the 81st
42	42	Legislature, Regular Session, 2009, authorizing the legislature to
43	43	provide that ad valorem tax appraisal services in any county are
44	44	under the jurisdiction of the entity specified by the legislature,
45	45	to provide for the consolidation of ad valorem tax appraisal
46	46	services, and to provide for enforcement of ad valorem tax
47	47	standards and procedures by the specified entity is approved by the
48	48	voters. If that amendment is not approved by the voters, this
49	49	article has no effect.
50	50	ARTICLE 2. REVIEW BY OFFICE OF PROPERTY APPRAISAL OF APPRAISAL
51	51	STANDARDS, PROCEDURES, AND METHODOLOGY USED BY AN APPRAISAL
52	52	DISTRICT TO DETERMINE TAXABLE VALUE OF PROPERTY IN A SCHOOL
53	53	DISTRICT
54	54	SECTION 2.01. The heading to Subchapter M, Chapter 403,
55	55	Government Code, is amended to read as follows:
56	56	SUBCHAPTER M. DETAILED REVIEW [STUDY] OF STANDARDS,
57	57	PROCEDURES, AND METHODOLOGY USED TO DETERMINE
58	58	SCHOOL DISTRICT PROPERTY VALUES
59	59	SECTION 2.02. Sections 403.3011(1), (2), and (4),
60	60	Government Code, are amended to read as follows:
61	61	(1) "Detailed review [Annual study]" means a review
62	62	[study] conducted under Section 403.302.
63	63	(2) "Eligible school district" means a school district
64	64	for which the comptroller has determined the following:
65	65	(A) in the most recent detailed review [annual
66	66	study], the local value is invalid under Section 403.302(c) and
67	67	does not exceed the state value for the school district determined
68	68	in the detailed review [annual study];
69	69	(B) in the detailed review [annual study] for
70	70	each of the two years preceding the most recent detailed review
71	71	[annual study], the school district's local value was valid under
72	72	Section 403.302(c); and
73	73	(C) in the most recent detailed review [annual
74	74	study], the aggregate local value of all of the categories of
75	75	property sampled by the comptroller is not less than 90 percent of
76	76	the lower limit of the margin of error as determined by the
77	77	comptroller of the aggregate value as determined by the comptroller
78	78	of all of the categories of property sampled by the comptroller.
79	79	(4) "State value" means the value of property in a
80	80	school district as determined in a detailed review [the annual
81	81	study].
82	82	SECTION 2.03. Sections 403.302(a), (b), (c), (c-1), (d),
83	83	(f), (g), (h), (i), and (l), Government Code, are amended to read as
84	84	follows:
85	85	(a) The comptroller shall conduct a detailed review of the
86	86	appraisal standards, procedures, and methodology by which an
87	87	appraisal district determines [an annual study using comparable
88	88	sales and generally accepted auditing and sampling techniques to
89	89	determine] the [total taxable] value of all property in each school
90	90	district that participates in the appraisal district. The review
91	91	must test the standards, procedures, and methodology of an
92	92	appraisal district used to [study shall] determine the taxable
93	93	value of all property and of each category of property in the
94	94	district and the productivity value of all land that qualifies for
95	95	appraisal on the basis of its productive capacity and for which the
96	96	owner has applied for and received a productivity appraisal. The
97	97	comptroller shall make appropriate adjustments in the review
98	98	[study] to account for actions taken under Chapter 41, Education
99	99	Code.
100	100	(b) In conducting the detailed review [study], the
101	101	comptroller shall use [determine the taxable value of property in
102	102	each school district]:
103	103	(1) [using, if appropriate,] samples selected through
104	104	generally accepted auditing and sampling techniques in testing the
105	105	standards, procedures, and methodology used by the appraisal
106	106	district to determine the taxable value of property on a school
107	107	district's appraisal roll for compliance with generally accepted
108	108	appraisal standards and practices; and
109	109	(2) a margin of error that does not exceed five percent
110	110	unless the comptroller determines that the size of the sample of
111	111	properties necessary to make the determination makes the use of
112	112	such a margin of error not feasible, in which case the comptroller
113	113	may use a larger margin of error [according to generally accepted
114	114	standard valuation, statistical compilation, and analysis
115	115	techniques;
116	116	[(3) ensuring that different levels of appraisal on
117	117	sold and unsold property do not adversely affect the accuracy of the
118	118	study; and
119	119	[(4) ensuring that different levels of appraisal
120	120	resulting from protests determined under Section 41.43, Tax Code,
121	121	are appropriately adjusted in the study].
122	122	(c) If after conducting the detailed review [annual study]
123	123	the comptroller determines that the appraisal district used
124	124	appropriate information and methodology to appraise all property or
125	125	a category of property for a school district, the local value of all
126	126	property or the category of property for the [a] school district is
127	127	valid and [,] the local value is presumed to represent taxable value
128	128	for the school district. If after conducting the detailed review
129	129	the comptroller determines that the appraisal district did not use
130	130	appropriate information and methodology to appraise all property or
131	131	a category of property for a school district, [In] the [absence of
132	132	that presumption,] taxable value of all property or the category of
133	133	property for the [a] school district is the state value of that
134	134	property or category for the school district determined by the
135	135	comptroller under Subsections (a) and (b) unless the local value of
136	136	all property or of the category of property exceeds the state value
137	137	of all property or the category of property, as applicable, in which
138	138	case the taxable value of all property or the category of property
139	139	for the school district is the district's local value. [In
140	140	determining whether the local value for a school district is valid,
141	141	the comptroller shall use a margin of error that does not exceed
142	142	five percent unless the comptroller determines that the size of the
143	143	sample of properties necessary to make the determination makes the
144	144	use of such a margin of error not feasible, in which case the
145	145	comptroller may use a larger margin of error.]
146	146	(c-1) This subsection applies only to a school district
147	147	whose central administrative office is located in a county with a
148	148	population of 9,000 or less and a total area of more than 6,000
149	149	square miles. If after conducting the detailed review [annual
150	150	study] for a tax year the comptroller determines that the local
151	151	value for a school district is not valid, the comptroller shall
152	152	adjust the taxable value determined under Subsections (a) and (b)
153	153	as follows:
154	154	(1) for each category of property sampled and tested
155	155	by the comptroller in the school district, the comptroller shall
156	156	use the weighted mean appraisal ratio determined by the detailed
157	157	review [study], unless the ratio is more than four percentage
158	158	points lower than the weighted mean appraisal ratio determined by
159	159	the comptroller for that category of property in the immediately
160	160	preceding detailed review [study], in which case the comptroller
161	161	shall use the weighted mean appraisal ratio determined in the
162	162	immediately preceding detailed review [study] minus four
163	163	percentage points;
164	164	(2) the comptroller shall use the category weighted
165	165	mean appraisal ratios as adjusted under Subdivision (1) to
166	166	establish a value estimate for each category of property sampled
167	167	and tested by the comptroller in the school district; and
168	168	(3) the value estimates established under Subdivision
169	169	(2), together with the local tax roll value for any categories not
170	170	sampled and tested by the comptroller, less total deductions
171	171	determined by the comptroller, determine the taxable value for the
172	172	school district.
173	173	(d) For the purposes of this section, "taxable value" means
174	174	the market value of all taxable property less:
175	175	(1) the total dollar amount of any residence homestead
176	176	exemptions lawfully granted under Section 11.13(b) or (c), Tax
177	177	Code, in the year that is the subject of the detailed review [study]
178	178	for each school district;
179	179	(2) one-half of the total dollar amount of any
180	180	residence homestead exemptions granted under Section 11.13(n), Tax
181	181	Code, in the year that is the subject of the detailed review [study]
182	182	for each school district;
183	183	(3) the total dollar amount of any exemptions granted
184	184	before May 31, 1993, within a reinvestment zone under agreements
185	185	authorized by Chapter 312, Tax Code;
186	186	(4) subject to Subsection (e), the total dollar amount
187	187	of any captured appraised value of property that:
188	188	(A) is within a reinvestment zone created on or
189	189	before May 31, 1999, or is proposed to be included within the
190	190	boundaries of a reinvestment zone as the boundaries of the zone and
191	191	the proposed portion of tax increment paid into the tax increment
192	192	fund by a school district are described in a written notification
193	193	provided by the municipality or the board of directors of the zone
194	194	to the governing bodies of the other taxing units in the manner
195	195	provided by Section 311.003(e), Tax Code, before May 31, 1999, and
196	196	within the boundaries of the zone as those boundaries existed on
197	197	September 1, 1999, including subsequent improvements to the
198	198	property regardless of when made;
199	199	(B) generates taxes paid into a tax increment
200	200	fund created under Chapter 311, Tax Code, under a reinvestment zone
201	201	financing plan approved under Section 311.011(d), Tax Code, on or
202	202	before September 1, 1999; and
203	203	(C) is eligible for tax increment financing under
204	204	Chapter 311, Tax Code;
205	205	(5) for a school district for which a deduction from
206	206	taxable value is made under Subdivision (4), an amount equal to the
207	207	taxable value required to generate revenue when taxed at the school
208	208	district's current tax rate in an amount that, when added to the
209	209	taxes of the district paid into a tax increment fund as described by
210	210	Subdivision (4)(B), is equal to the total amount of taxes the
211	211	district would have paid into the tax increment fund if the district
212	212	levied taxes at the rate the district levied in 2005;
213	213	(6) the total dollar amount of any captured appraised
214	214	value of property that:
215	215	(A) is within a reinvestment zone:
216	216	(i) created on or before December 31, 2008,
217	217	by a municipality with a population of less than 18,000; and
218	218	(ii) the project plan for which includes
219	219	the alteration, remodeling, repair, or reconstruction of a
220	220	structure that is included on the National Register of Historic
221	221	Places and requires that a portion of the tax increment of the zone
222	222	be used for the improvement or construction of related facilities
223	223	or for affordable housing;
224	224	(B) generates school district taxes that are paid
225	225	into a tax increment fund created under Chapter 311, Tax Code; and
226	226	(C) is eligible for tax increment financing under
227	227	Chapter 311, Tax Code;
228	228	(7) the total dollar amount of any exemptions granted
229	229	under Section 11.251 or 11.253, Tax Code;
230	230	(8) the difference between the comptroller's estimate
231	231	of the market value and the productivity value of land that
232	232	qualifies for appraisal on the basis of its productive capacity,
233	233	except that the productivity value estimated by the comptroller may
234	234	not exceed the fair market value of the land;
235	235	(9) the portion of the appraised value of residence
236	236	homesteads of individuals who receive a tax limitation under
237	237	Section 11.26, Tax Code, on which school district taxes are not
238	238	imposed in the year that is the subject of the detailed review
239	239	[study], calculated as if the residence homesteads were appraised
240	240	at the full value required by law;
241	241	(10) a portion of the market value of property not
242	242	otherwise fully taxable by the district at market value because of:
243	243	(A) action required by statute or the
244	244	constitution of this state that, if the tax rate adopted by the
245	245	district is applied to it, produces an amount equal to the
246	246	difference between the tax that the district would have imposed on
247	247	the property if the property were fully taxable at market value and
248	248	the tax that the district is actually authorized to impose on the
249	249	property, if this subsection does not otherwise require that
250	250	portion to be deducted; or
251	251	(B) action taken by the district under Subchapter
252	252	B or C, Chapter 313, Tax Code;
253	253	(11) the market value of all tangible personal
254	254	property, other than manufactured homes, owned by a family or
255	255	individual and not held or used for the production of income;
256	256	(12) the appraised value of property the collection of
257	257	delinquent taxes on which is deferred under Section 33.06, Tax
258	258	Code;
259	259	(13) the portion of the appraised value of property
260	260	the collection of delinquent taxes on which is deferred under
261	261	Section 33.065, Tax Code; and
262	262	(14) the amount by which the market value of a
263	263	residence homestead to which Section 23.23, Tax Code, applies
264	264	exceeds the appraised value of that property as calculated under
265	265	that section.
266	266	(f) The detailed review [study] shall determine the values
267	267	as of January 1 of each year.
268	268	(g) The comptroller shall publish preliminary findings,
269	269	listing values by district, before February 1 of the year following
270	270	the year of the detailed review [study]. Preliminary findings
271	271	shall be delivered to each school district and shall be certified to
272	272	the commissioner of education.
273	273	(h) On request of the commissioner of education or a school
274	274	district, the comptroller may audit the total taxable value of
275	275	property in a school district and may revise the detailed review
276	276	[annual study] findings. The request for audit is limited to
277	277	corrections and changes in a school district's appraisal roll that
278	278	occurred after preliminary certification of the detailed review
279	279	[annual study] findings by the comptroller. Except as otherwise
280	280	provided by this subsection, the request for audit must be filed
281	281	with the comptroller not later than the third anniversary of the
282	282	date of the final certification of the detailed review [annual
283	283	study] findings. The request for audit may be filed not later than
284	284	the first anniversary of the date the chief appraiser certifies a
285	285	change to the appraisal roll if the chief appraiser corrects the
286	286	appraisal roll under Section 25.25 or 42.41, Tax Code, and the
287	287	change results in a material reduction in the total taxable value of
288	288	property in the school district. The comptroller shall certify the
289	289	findings of the audit to the commissioner of education.
290	290	(i) If the comptroller determines in the detailed review
291	291	[annual study] that the market value of property in a school
292	292	district as determined by the appraisal district that appraises
293	293	property for the school district, less the total of the amounts and
294	294	values listed in Subsection (d) as determined by that appraisal
295	295	district, is valid, the comptroller, in determining the taxable
296	296	value of property in the school district under Subsection (d),
297	297	shall for purposes of Subsection (d)(14) subtract from the market
298	298	value as determined by the appraisal district of residence
299	299	homesteads to which Section 23.23, Tax Code, applies the amount by
300	300	which that amount exceeds the appraised value of those properties
301	301	as calculated by the appraisal district under Section 23.23, Tax
302	302	Code. If the comptroller determines in the detailed review [annual
303	303	study] that the market value of property in a school district as
304	304	determined by the appraisal district that appraises property for
305	305	the school district, less the total of the amounts and values listed
306	306	in Subsection (d) as determined by that appraisal district, is not
307	307	valid, the comptroller, in determining the taxable value of
308	308	property in the school district under Subsection (d), shall for
309	309	purposes of Subsection (d)(14) subtract from the market value as
310	310	estimated by the comptroller of residence homesteads to which
311	311	Section 23.23, Tax Code, applies the amount by which that amount
312	312	exceeds the appraised value of those properties as calculated by
313	313	the appraisal district under Section 23.23, Tax Code.
314	314	(l) If after conducting the detailed review [annual study]
315	315	for the year 2009 [2003] or a subsequent year the comptroller
316	316	determines that a school district is an eligible school district,
317	317	for that year and the following year the taxable value for the
318	318	school district is the district's local value. [Not later than the
319	319	first anniversary of the date of the determination that a school
320	320	district is an eligible school district, the comptroller shall
321	321	complete an appraisal standards review as provided by Section
322	322	5.102, Tax Code, of each appraisal district that appraises property
323	323	for the school district.]
324	324	SECTION 2.04. Sections 403.303(a) and (b), Government Code,
325	325	are amended to read as follows:
326	326	(a) A school district or a property owner whose property is
327	327	included in the detailed review [study] under Section 403.302 and
328	328	whose tax liability on the property is $100,000 or more may protest
329	329	the comptroller's findings under Section 403.302(g) or (h) by
330	330	filing a petition with the comptroller. The petition must be filed
331	331	not later than the 40th day after the date on which the
332	332	comptroller's findings are certified to the commissioner of
333	333	education and must specify the grounds for objection and the value
334	334	claimed to be correct by the school district or property owner.
335	335	(b) After receipt of a petition, the comptroller shall hold
336	336	a hearing. The comptroller has the burden to prove the accuracy of
337	337	the findings. Until a final decision is made by the comptroller,
338	338	the taxable value of property in the district is determined, with
339	339	respect to property subject to the protest, according to the value
340	340	claimed by the school district or property owner, except that the
341	341	value to be used while a final decision is pending may not be less
342	342	than the appraisal roll value for the year of the detailed review
343	343	[study]. If after a hearing the comptroller concludes that the
344	344	findings should be changed, the comptroller shall order the
345	345	appropriate changes and shall certify to the commissioner of
346	346	education the changes in the values of the school district that
347	347	brought the protest, the values of the school district named by the
348	348	property owner who brought the protest, or, if the comptroller by
349	349	rule allows an appraisal district to bring a protest, the values of
350	350	the school district named by the appraisal district that brought
351	351	the protest. The comptroller may not order a change in the values
352	352	of a school district as a result of a protest brought by another
353	353	school district, a property owner in the other school district, or
354	354	an appraisal district that appraises property for the other school
355	355	district. The comptroller shall complete all protest hearings and
356	356	certify all changes as necessary to comply with Chapter 42,
357	357	Education Code. A hearing conducted under this subsection is not a
358	358	contested case for purposes of Section 2001.003.
359	359	SECTION 2.05. Section 403.304(a), Government Code, is
360	360	amended to read as follows:
361	361	(a) All information the comptroller obtains from a person,
362	362	other than a government or governmental subdivision or agency,
363	363	under an assurance that the information will be kept confidential,
364	364	in the course of conducting a detailed review [study of school
365	365	district values] is confidential and may not be disclosed except as
366	366	provided in Subsection (b).
367	367	SECTION 2.06. Section 825.405(i), Government Code, is
368	368	amended to read as follows:
369	369	(i) Not later than the seventh day after the final date the
370	370	comptroller certifies to the commissioner of education changes to
371	371	the detailed review [property value study] conducted under
372	372	Subchapter M, Chapter 403, the comptroller shall certify to the
373	373	Teacher Retirement System of Texas:
374	374	(1) the effective tax rate for school district
375	375	maintenance and operation revenues for each school district in the
376	376	state for the immediately preceding tax year; and
377	377	(2) the statewide average effective tax rate for
378	378	school district maintenance and operation revenues for the
379	379	immediately preceding tax year.
380	380	SECTION 2.07. Section 5.07(c), Tax Code, is amended to read
381	381	as follows:
382	382	(c) The comptroller shall also prescribe a uniform record
383	383	system to be used by all appraisal districts for the purpose of
384	384	submitting data to be used in the detailed review [annual studies]
385	385	required by [Section 5.10 of this code and by] Section 403.302,
386	386	Government Code. The record system shall include a compilation of
387	387	information concerning sales of real property within the boundaries
388	388	of the appraisal district. The sales information maintained in the
389	389	uniform record system shall be submitted annually in a form
390	390	prescribed by the comptroller.
391	391	SECTION 2.08. Sections 5.101(a), (b), (c), and (d), Tax
392	392	Code, are amended to read as follows:
393	393	(a) The comptroller shall appoint a technical advisory
394	394	committee for the purpose of providing professional and practical
395	395	expertise to the comptroller and to review and comment on the
396	396	methodology used by the comptroller to conduct the detailed review
397	397	[annual studies] required by [Section 5.10 of this code and by]
398	398	Section 403.302, Government Code. A member of the committee serves
399	399	at the will of the comptroller.
400	400	(b) The committee shall:
401	401	(1) review the methodology used by the comptroller to
402	402	conduct the detailed review [studies] described in Subsection (a);
403	403	(2) make an annual report to the comptroller that
404	404	includes the committee's findings and recommendations relating to
405	405	the methodology used to conduct the detailed review [studies]; and
406	406	(3) meet as often as necessary to perform its duties.
407	407	(c) The comptroller shall appoint the committee to provide
408	408	for a balanced representation of the general public and of
409	409	professionals affiliated with the entities affected by the detailed
410	410	review [studies].
411	411	(d) Each member of the committee must have expertise
412	412	sufficient to determine the accuracy of the detailed review [annual
413	413	studies] and the appropriateness of the methods used to develop the
414	414	findings of the detailed review [studies].
415	415	SECTION 2.09. Sections 5.102(a) and (b), Tax Code, are
416	416	amended to read as follows:
417	417	(a) [The comptroller shall review the appraisal standards,
418	418	procedures, and methodology used by each appraisal district that
419	419	appraises property for an eligible school district as defined by
420	420	Section 403.3011, Government Code, to determine compliance with
421	421	generally accepted appraisal standards and practices. The
422	422	comptroller by rule may establish procedures and standards for
423	423	conducting the review.
424	424	[(b)] In conducting the detailed review required by Section
425	425	403.302, Government Code, the comptroller is entitled to access to
426	426	all records and reports of the appraisal district and to the
427	427	assistance of the appraisal district's officers and employees.
428	428	SECTION 2.10. Section 5.12, Tax Code, is amended to read as
429	429	follows:
430	430	Sec. 5.12. PERFORMANCE AUDIT OF APPRAISAL DISTRICT. (a)
431	431	[The comptroller shall audit the performance of an appraisal
432	432	district if one or more of the following conditions exist according
433	433	to each of two consecutive annual studies conducted by the
434	434	comptroller under Section 5.10 of this code, regardless of whether
435	435	the prescribed condition or conditions that exist are the same for
436	436	each of those studies:
437	437	[(1) the overall median level of appraisal for all
438	438	property in the district for which the comptroller determines a
439	439	median level of appraisal is less than 0.75;
440	440	[(2) the coefficient of dispersion around the overall
441	441	median level of appraisal of the properties used to determine the
442	442	overall median level of appraisal for all property in the district
443	443	for which the comptroller determines a median level of appraisal
444	444	exceeds 0.30; or
445	445	[(3) the difference between the median levels of
446	446	appraisal for any two classes of property in the district for which
447	447	the comptroller determines a median level of appraisal is more than
448	448	0.45.
449	449	[(b)] At the written request of the governing bodies of a
450	450	majority of the taxing units participating in an appraisal district
451	451	or of a majority of the taxing units entitled to vote on the
452	452	appointment of appraisal district directors, the comptroller shall
453	453	audit the performance of the appraisal district. The governing
454	454	bodies may request a general audit of the performance of the
455	455	appraisal district or may request an audit of only one or more
456	456	particular duties, practices, functions, departments, or other
457	457	appraisal district matters.
458	458	(b) [(c)] At the written request of the owners of not less
459	459	than 10 percent of the number of accounts or parcels of property in
460	460	an appraisal district belonging to a single class of property, if
461	461	the class constitutes at least five percent of the appraised value
462	462	of taxable property within the district in the preceding year, or at
463	463	the written request of the owners of property representing not less
464	464	than 10 percent of the appraised value of all property in the
465	465	district belonging to a single class of property, if the class
466	466	constitutes at least five percent of the appraised value of taxable
467	467	property in the district in the preceding year, the comptroller
468	468	shall audit the performance of the appraisal district. The
469	469	property owners may request a general audit of the performance of
470	470	the appraisal district or may request an audit of only one or more
471	471	particular duties, practices, functions, departments, or other
472	472	appraisal district matters. A property owner may authorize an
473	473	agent to sign a request for an audit under this subsection on the
474	474	property owner's behalf. The comptroller may require a person
475	475	signing a request for an audit to provide proof that the person is
476	476	entitled to sign the request as a property owner or as the agent of a
477	477	property owner.
478	478	(c) [(d) A request for a performance audit of an appraisal
479	479	district may not be made under Subsection (b) or (c) of this section
480	480	if according to each of the two most recently published annual
481	481	studies conducted by the comptroller under Section 5.10 of this
482	482	code:
483	483	[(1) the overall median level of appraisal for all
484	484	property in the district for which the comptroller determines a
485	485	median level of appraisal is more than 0.90 and less than 1.10;
486	486	[(2) the coefficient of dispersion around the overall
487	487	median level of appraisal of the properties used to determine the
488	488	overall median level of appraisal for all property in the district
489	489	for which the comptroller determines a median level of appraisal is
490	490	less than 0.15; and
491	491	[(3) the difference between the highest and lowest
492	492	median levels of appraisal in the district for the classes of
493	493	property for which the comptroller determines a median level of
494	494	appraisal is less than 0.20.
495	495	[(e) A request for a performance audit of an appraisal
496	496	district may not be made under Subsection (b) or (c) of this
497	497	section:
498	498	[(1) during the two years immediately following the
499	499	publication of the second of two consecutive annual studies
500	500	according to which the comptroller is required to conduct an audit
501	501	of the district under Subsection (a) of this section; or
502	502	[(2) during the year immediately following the date
503	503	the results of an audit of the district conducted by the comptroller
504	504	under Subsection (a) of this section are reported to the chief
505	505	appraiser of the district.
506	506	[(f) For purposes of this section, "class of property" means
507	507	a major kind of property for which the comptroller determines a
508	508	median level of appraisal under Section 5.10 of this code.
509	509	[(g) The results of an annual study conducted by the
510	510	comptroller for a tax year before 1989 may not be considered for
511	511	purposes of determining whether an audit is required under
512	512	Subsection (a) of this section.
513	513	[(h)] In addition to the performance audits required by
514	514	Subsections (a) and [,] (b)[, and (c) and the review of appraisal
515	515	standards required by Section 5.102], the comptroller may audit an
516	516	appraisal district to analyze the effectiveness and efficiency of
517	517	the policies, management, and operations of the appraisal district.
518	518	The results of the audit shall be delivered in a report that details
519	519	the comptroller's findings and recommendations for improvement to
520	520	the appraisal district's chief appraiser and board of directors and
521	521	the governing body of each taxing unit participating in the
522	522	appraisal district. The comptroller may require reimbursement by
523	523	the appraisal district for some or all of the costs of the audit,
524	524	not to exceed the actual costs associated with conducting the
525	525	audit.
526	526	SECTION 2.11. Sections 5.13(a), (f), (g), and (h), Tax
527	527	Code, are amended to read as follows:
528	528	(a) [The comptroller shall complete an audit required by
529	529	Section 5.12(a) of this code within two years after the date of the
530	530	publication of the second of the two annual studies the results of
531	531	which required the audit to be conducted.] The comptroller shall
532	532	complete an audit requested under Section 5.12(a) or (b) [5.12(b)
533	533	or (c) of this code] as soon as practicable after the request is
534	534	made.
535	535	(f) The comptroller shall report the results of its audit in
536	536	writing to the governing body of each taxing unit that participates
537	537	in the appraisal district, to the chief appraiser, and to the
538	538	presiding officer of the appraisal district board of directors. If
539	539	the audit was requested under Section 5.12(b) [5.12(c) of this
540	540	code], the comptroller shall also provide a report to a
541	541	representative of the property owners who requested the audit.
542	542	(g) If the audit is [required or] requested under Section
543	543	5.12(a) [or (b) of this code], the appraisal district shall
544	544	reimburse the comptroller for the costs incurred in conducting the
545	545	audit and making its report of the audit. The costs shall be
546	546	allocated among the taxing units participating in the district in
547	547	the same manner as an operating expense of the district. If the
548	548	audit is requested under Section 5.12(b) [5.12(c) of this code],
549	549	the property owners who requested the audit shall reimburse the
550	550	comptroller for the costs incurred in conducting the audit and
551	551	making its report of the audit and shall allocate the costs among
552	552	those property owners in proportion to the appraised value of each
553	553	property owner's property in the district or on such other basis as
554	554	the property owners may agree. If the audit confirms that the
555	555	median level of appraisal for a class of property exceeds 1.10 or
556	556	that the median level of appraisal for a class of property varies at
557	557	least 10 percent from the overall median level of appraisal for all
558	558	property in the district for which the comptroller determines a
559	559	median level of appraisal, within 90 days after the date a request
560	560	is made by the property owners for reimbursement the appraisal
561	561	district shall reimburse the property owners who requested the
562	562	audit for the amount paid to the comptroller for the costs incurred
563	563	in conducting the audit and making the report. Before conducting an
564	564	audit under Section 5.12(b) [5.12(c)], the comptroller may require
565	565	the requesting taxing units or property owners to provide the
566	566	comptroller with a bond, deposit, or other financial security
567	567	sufficient to cover the expected costs of conducting the audit and
568	568	making the report. For purposes of this subsection, "costs"
569	569	include expenses related to salaries, professional fees, travel,
570	570	reproduction or other printing services, and consumable supplies
571	571	that are directly attributable to conducting the audit.
572	572	(h) At any time after the request for an audit is made, the
573	573	comptroller may discontinue the audit in whole or in part if
574	574	requested to do so by:
575	575	(1) the governing bodies of a majority of the taxing
576	576	units participating in the district, if the audit was requested by a
577	577	majority of those units;
578	578	(2) the governing bodies of a majority of the taxing
579	579	units entitled to vote on the appointment of appraisal district
580	580	directors, if the audit was requested by a majority of those units;
581	581	or
582	582	(3) if the audit was requested under Section 5.12(b)
583	583	[5.12(c) of this code], [by] the taxpayers who requested the audit.
584	584	SECTION 2.12. Section 5.16(a), Tax Code, is amended to read
585	585	as follows:
586	586	(a) The comptroller may inspect the records or other
587	587	materials of an appraisal office or taxing unit, including the
588	588	relevant records and materials in the possession or control of a
589	589	consultant, advisor, or expert hired by the appraisal office or
590	590	taxing unit, for the purpose of:
591	591	(1) establishing, reviewing, or evaluating the value
592	592	of or an appraisal of any property; or
593	593	(2) conducting a detailed [study,] review[, or audit]
594	594	required by [Section 5.10 or 5.102 or by] Section 403.302,
595	595	Government Code.
596	596	SECTION 2.13. Section 41A.12, Tax Code, is amended to read
597	597	as follows:
598	598	Sec. 41A.12. USE OF PROPERTIES AS SAMPLES. An arbitrator's
599	599	determination of market value under this chapter is the market
600	600	value of the property subject to the appeal for the purposes of the
601	601	detailed review [annual study] conducted under Section 403.302,
602	602	Government Code.
603	603	SECTION 2.14. The following provisions of the Tax Code are
604	604	repealed:
605	605	(1) Section 5.10; and
606	606	(2) Section 42.26(c).
607	607	SECTION 2.15. This article takes effect January 1, 2010.
608	608	ARTICLE 3. REGULATION OF PROPERTY TAX PROFESSIONALS AND PROPERTY
609	609	TAX CONSULTANTS
610	610	SECTION 3.01. Section 5.04, Tax Code, is amended to read as
611	611	follows:
612	612	Sec. 5.04. TRAINING AND EDUCATION OF APPRAISERS. (a) The
613	613	comptroller shall set [consult and cooperate with the Board of Tax
614	614	Professional Examiners or any successor agency responsible for
615	615	certifying tax professionals in this state in setting] standards
616	616	for and approve [approving] curricula and materials for use in
617	617	training and educating appraisers and assessor-collectors, and
618	618	[the comptroller] may cooperate with [the board or with] other
619	619	public agencies, educational institutions, or private
620	620	organizations in sponsoring courses of instruction and training
621	621	programs.
622	622	(b) An appraisal district shall reimburse an employee of the
623	623	appraisal office for all actual and necessary expenses, tuition and
624	624	other fees, and costs of materials incurred in attending, with
625	625	approval of the chief appraiser, a course or training program
626	626	sponsored or approved by the comptroller [Board of Tax Professional
627	627	Examiners].
628	628	SECTION 3.02. Section 411.122(d), Government Code, is
629	629	amended to read as follows:
630	630	(d) The following state agencies are subject to this
631	631	section:
632	632	(1) Texas Appraiser Licensing and Certification
633	633	Board;
634	634	(2) Texas Board of Architectural Examiners;
635	635	(3) Texas Board of Chiropractic Examiners;
636	636	(4) State Board of Dental Examiners;
637	637	(5) Texas Board of Professional Engineers;
638	638	(6) Texas Funeral Service Commission;
639	639	(7) Texas Board of Professional Geoscientists;
640	640	(8) Department of State Health Services, except as
641	641	provided by Section 411.110, and agencies attached to the
642	642	department, including:
643	643	(A) Texas State Board of Examiners of Dietitians;
644	644	(B) Texas State Board of Examiners of Marriage
645	645	and Family Therapists;
646	646	(C) Midwifery Board;
647	647	(D) Texas State Board of Examiners of
648	648	Perfusionists;
649	649	(E) Texas State Board of Examiners of
650	650	Professional Counselors;
651	651	(F) Texas State Board of Social Worker Examiners;
652	652	(G) State Board of Examiners for Speech-Language
653	653	Pathology and Audiology;
654	654	(H) Advisory Board of Athletic Trainers;
655	655	(I) State Committee of Examiners in the Fitting
656	656	and Dispensing of Hearing Instruments;
657	657	(J) Texas Board of Licensure for Professional
658	658	Medical Physicists; and
659	659	(K) Texas Board of Orthotics and Prosthetics;
660	660	(9) Texas Board of Professional Land Surveying;
661	661	(10) Texas Department of Licensing and Regulation,
662	662	except as provided by Section 411.093;
663	663	(11) Texas Commission on Environmental Quality;
664	664	(12) Texas Board of Occupational Therapy Examiners;
665	665	(13) Texas Optometry Board;
666	666	(14) Texas State Board of Pharmacy;
667	667	(15) Texas Board of Physical Therapy Examiners;
668	668	(16) Texas State Board of Plumbing Examiners;
669	669	(17) Texas State Board of Podiatric Medical Examiners;
670	670	(18) Polygraph Examiners Board;
671	671	(19) Texas State Board of Examiners of Psychologists;
672	672	(20) Texas Real Estate Commission;
673	673	(21) Office of Property Appraisal [Board of Tax
674	674	Professional Examiners];
675	675	(22) Texas Department of Transportation;
676	676	(23) State Board of Veterinary Medical Examiners;
677	677	(24) Texas Department of Housing and Community
678	678	Affairs;
679	679	(25) secretary of state;
680	680	(26) state fire marshal;
681	681	(27) Texas Education Agency; and
682	682	(28) Department of Agriculture.
683	683	SECTION 3.03. Section 2054.352(a), Government Code, is
684	684	amended to read as follows:
685	685	(a) The following licensing entities shall participate in
686	686	the system established under Section 2054.353:
687	687	(1) Texas Board of Chiropractic Examiners;
688	688	(2) Court Reporters Certification Board;
689	689	(3) State Board of Dental Examiners;
690	690	(4) Texas Funeral Service Commission;
691	691	(5) Texas Board of Professional Land Surveying;
692	692	(6) Texas Medical Board;
693	693	(7) Texas Board of Nursing;
694	694	(8) Texas Optometry Board;
695	695	(9) Department of Agriculture, for licenses issued
696	696	under Chapter 1951, Occupations Code;
697	697	(10) Texas State Board of Pharmacy;
698	698	(11) Executive Council of Physical Therapy and
699	699	Occupational Therapy Examiners;
700	700	(12) Texas State Board of Plumbing Examiners;
701	701	(13) Texas State Board of Podiatric Medical Examiners;
702	702	(14) Office of Property Appraisal [Board of Tax
703	703	Professional Examiners];
704	704	(15) Polygraph Examiners Board;
705	705	(16) Texas State Board of Examiners of Psychologists;
706	706	(17) State Board of Veterinary Medical Examiners;
707	707	(18) Texas Real Estate Commission;
708	708	(19) Texas Appraiser Licensing and Certification
709	709	Board;
710	710	(20) Texas Department of Licensing and Regulation;
711	711	(21) Texas State Board of Public Accountancy;
712	712	(22) State Board for Educator Certification;
713	713	(23) Texas Board of Professional Engineers;
714	714	(24) Department of State Health Services;
715	715	(25) Texas Board of Architectural Examiners;
716	716	(26) Texas Racing Commission;
717	717	(27) Commission on Law Enforcement Officer Standards
718	718	and Education; and
719	719	(28) Texas Private Security Board.
720	720	SECTION 3.04. Section 1151.002(4), Occupations Code, is
721	721	amended to read as follows:
722	722	(4) "Board" means the Office of Property Appraisal
723	723	[Board of Tax Professional Examiners].
724	724	SECTION 3.05. Section 1152.001(1), Occupations Code, is
725	725	amended to read as follows:
726	726	(1) "Commission," "department," and "executive
727	727	director" mean [means] the Office of Property Appraisal [Texas
728	728	Commission of Licensing and Regulation].
729	729	SECTION 3.06 Sections 1152.102(a) and (b), Occupations
730	730	Code, are amended to read as follows:
731	731	(a) The council is composed of six members appointed by the
732	732	[presiding officer of the] commission[, with the commission's
733	733	approval].
734	734	(b) The [presiding officer of the] commission may appoint
735	735	not more than two members who are qualified for an exemption under
736	736	Section 1152.002(a)(3).
737	737	SECTION 3.07. Section 1152.104(b), Occupations Code, is
738	738	amended to read as follows:
739	739	(b) If a vacancy occurs during a member's term, the
740	740	[presiding officer of the] commission[, with the commission's
741	741	approval,] shall appoint to fill the unexpired part of the term a
742	742	replacement who meets the qualifications of the vacated office.
743	743	SECTION 3.08. Section 1152.105, Occupations Code, is
744	744	amended to read as follows:
745	745	Sec. 1152.105. PRESIDING OFFICER. The [presiding officer
746	746	of the] commission[, with the commission's approval,] shall appoint
747	747	a member of the council to serve as presiding officer of the council
748	748	for two years.
749	749	SECTION 3.09. The following provisions of the Occupations
750	750	Code are repealed:
751	751	(1) Section 1151.003;
752	752	(2) Subchapters B and B-1, Chapter 1151;
753	753	(3) Section 1151.1015; and
754	754	(4) Sections 1152.001(3) and (3-a).
755	755	SECTION 3.10. (a) The Board of Tax Professional Examiners
756	756	is abolished but continues in existence until March 1, 2010, for the
757	757	sole purpose of transferring obligations, property, full-time
758	758	equivalent positions, rights, powers, and duties to the Office of
759	759	Property Appraisal. The Office of Property Appraisal assumes all
760	760	of the obligations, property, full-time equivalent positions,
761	761	rights, powers, and duties of the Board of Tax Professional
762	762	Examiners as it existed immediately before the effective date of
763	763	this article. All unexpended funds appropriated to the Board of Tax
764	764	Professional Examiners are transferred to the Office of Property
765	765	Appraisal. The transfer of the obligations, property, full-time
766	766	equivalent positions, rights, powers, and duties of the Board of
767	767	Tax Professional Examiners to the Office of Property Appraisal must
768	768	be completed not later than March 1, 2010.
769	769	(b) All rules of the Board of Tax Professional Examiners are
770	770	continued in effect as rules of the Office of Property Appraisal
771	771	until superseded by a rule of the Office of Property Appraisal. A
772	772	registration or certification issued by the Board of Tax
773	773	Professional Examiners is continued in effect as provided by the
774	774	law in effect immediately before the effective date of this
775	775	article. A complaint, investigation, contested case, or other
776	776	proceeding pending on the effective date of this article is
777	777	continued without change in status after the effective date of this
778	778	article. An activity conducted by the Board of Tax Professional
779	779	Examiners is considered to be an activity conducted by the Office of
780	780	Property Appraisal.
781	781	(c) A reference in another law or an administrative rule to
782	782	the Board of Tax Professional Examiners means the Office of
783	783	Property Appraisal.
784	784	SECTION 3.11. This article takes effect January 1, 2010,
785	785	but only if the constitutional amendment proposed by the 81st
786	786	Legislature, Regular Session, 2009, authorizing the legislature to
787	787	provide that ad valorem tax appraisal services in any county are
788	788	under the jurisdiction of the entity specified by the legislature,
789	789	to provide for the consolidation of ad valorem tax appraisal
790	790	services, and to provide for enforcement of ad valorem tax
791	791	standards and procedures by the specified entity is approved by the
792	792	voters. If that amendment is not approved by the voters, this
793	793	article has no effect.
794	794	ARTICLE 4. REMEDIES FOR VIOLATIONS OF LAW BY AD VALOREM TAX
795	795	OFFICIALS OR ENTITIES
796	796	SECTION 4.01. Section 43.01, Tax Code, is amended to read as
797	797	follows:
798	798	Sec. 43.01. AUTHORITY TO BRING SUIT. (a) Any of the
799	799	following persons [A taxing unit] may sue an appropriate [the]
800	800	appraisal district or appraisal review board [that appraises
801	801	property for the unit] to compel the appraisal district or
802	802	appraisal review board to comply with the provisions of this title,
803	803	rules of the comptroller, or other applicable law if the person is
804	804	affected by the appraisal district's or appraisal review board's
805	805	failure to comply with the law:
806	806	(1) a taxing unit;
807	807	(2) a property owner;
808	808	(3) a lessee of property who is contractually
809	809	obligated to pay taxes imposed on the property;
810	810	(4) an agent of a property owner designated under
811	811	Section 1.111; or
812	812	(5) any other person authorized to bring an action on
813	813	behalf of a person listed in Subdivisions (1)-(4).
814	814	(b) The court shall award court costs and reasonable
815	815	attorney's fees to a plaintiff who prevails in a suit brought under
816	816	this section.
817	817	SECTION 4.02. The changes in law made by this article to
818	818	Section 43.01, Tax Code, apply only to a suit filed under Section
819	819	43.01, Tax Code, on or after the effective date of this article. A
820	820	suit filed under Section 43.01, Tax Code, before the effective date
821	821	of this article is governed by the law in effect on the date the suit
822	822	was filed, and the former law is continued in effect for that
823	823	purpose.
824	824	SECTION 4.03. This article takes effect September 1, 2009.
825	825	ARTICLE 5. CONSOLIDATION OF APPRAISAL DISTRICTS
826	826	SECTION 5.01. Subchapter A, Chapter 6, Tax Code, is amended
827	827	by adding Section 6.025 to read as follows:
828	828	Sec. 6.025. CONSOLIDATION OF APPRAISAL DISTRICTS BY
829	829	COMPTROLLER. (a) The comptroller may order the consolidation of
830	830	two or more appraisal districts.
831	831	(b) An order consolidating appraisal districts:
832	832	(1) must:
833	833	(A) identify the districts to be consolidated;
834	834	(B) state the effective date of the
835	835	consolidation;
836	836	(C) state the name of the consolidated district;
837	837	(D) provide for the governance of the
838	838	consolidated district during and after a reasonable transition
839	839	period;
840	840	(E) provide for the financing of the consolidated
841	841	district, including the disposition of money and property of the
842	842	district; and
843	843	(F) provide for the status of proceedings pending
844	844	before each appraisal district or proceedings to which an appraisal
845	845	district is a party on the effective date of the consolidation; and
846	846	(2) may contain other provisions as determined by the
847	847	comptroller.
848	848	SECTION 5.02. This article takes effect January 1, 2010,
849	849	but only if the constitutional amendment proposed by the 81st
850	850	Legislature, Regular Session, 2009, authorizing the legislature to
851	851	provide that ad valorem tax appraisal services in any county are
852	852	under the jurisdiction of the entity specified by the legislature,
853	853	to provide for the consolidation of ad valorem tax appraisal
854	854	services, and to provide for enforcement of ad valorem tax
855	855	standards and procedures by the specified entity is approved by the
856	856	voters. If that amendment is not approved by the voters, this
857	857	article has no effect.
858	858	ARTICLE 6. COMMUNICATION IN ELECTRONIC FORMAT
859	859	SECTION 6.01. Sections 1.085(a) and (e), Tax Code, are
860	860	amended to read as follows:
861	861	(a) Except as provided by Section 1.07(d), any notice,
862	862	rendition, application form, or completed application that is
863	863	required or permitted by this title to be delivered between a chief
864	864	appraiser and a property owner or between a chief appraiser and a
865	865	person designated by a property owner under Section 1.111(f) may be
866	866	delivered in an electronic format if the chief appraiser and the
867	867	property owner agree under this section. If a property owner
868	868	requests that the chief appraiser enter into an agreement under
869	869	this section, the chief appraiser must enter into the agreement.
870	870	(e) The comptroller by rule [:
871	871	[(1)] shall prescribe acceptable media, formats,
872	872	content, and methods for the electronic transmission of notices
873	873	[required by Section 25.19; and
874	874	[(2) may prescribe acceptable media, formats, content,
875	875	and methods for the electronic transmission of other notices],
876	876	renditions, and applications.
877	877	SECTION 6.02. Section 1.085(g), Tax Code, is repealed.
878	878	SECTION 6.03. This article takes effect January 1, 2010.
879	879	ARTICLE 7. NOTICE OF PROPOSED TAX RATE
880	880	SECTION 7.01 Section 26.05(a), Tax Code, is amended to read
881	881	as follows:
882	882	(a) The governing body of each taxing unit, before the later
883	883	of September 30 or the 60th day after the date the certified
884	884	appraisal roll is received by the taxing unit, shall adopt a tax
885	885	rate for the current tax year and shall notify the assessor for the
886	886	unit of the rate adopted. The tax rate consists of two components,
887	887	each of which must be approved separately. The components are:
888	888	(1) for a taxing unit other than a school district, the
889	889	rate that, if applied to the total taxable value, will impose the
890	890	total amount published under Section 26.04(e)(3)(C), less any
891	891	amount of additional sales and use tax revenue that will be used to
892	892	pay debt service, or, for a school district, the rate published
893	893	under Section 44.004(c)(3)(B)(ii) [44.004(c)(5)(A)(ii)(b)],
894	894	Education Code; and
895	895	(2) the rate that, if applied to the total taxable
896	896	value, will impose the amount of taxes needed to fund maintenance
897	897	and operation expenditures of the unit for the next year.
898	898	SECTION 7.02. Section 26.06(b), Tax Code, is amended to
899	899	read as follows:
900	900	(b) The notice of a public hearing may not be smaller than
901	901	one-quarter page of a standard-size or a tabloid-size newspaper,
902	902	and the headline on the notice must be in 24-point or larger
903	903	type. The notice must contain a statement in the following form:
904	904	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
905	905	"The (name of the taxing unit) will hold two public hearings
906	906	on a proposal to increase total tax revenues from properties on the
907	907	tax roll in the preceding tax year by (percentage by which proposed
908	908	tax rate exceeds lower of rollback tax rate or effective tax rate
909	909	calculated under this chapter) percent. Your individual taxes may
910	910	increase at a greater or lesser rate, or even decrease, depending on
911	911	the change in the taxable value of your property in relation to the
912	912	change in taxable value of all other property and the tax rate that
913	913	is adopted.
914	914	"The first public hearing will be held on (date and time) at
915	915	(meeting place).
916	916	"The second public hearing will be held on (date and time) at
917	917	(meeting place).
918	918	"(Names of all members of the governing body, showing how
919	919	each voted on the proposal to consider the tax increase or, if one
920	920	or more were absent, indicating the absences.)
921	921	"Last year's tax rate was (tax rate for preceding year)
922	922	per $100 of taxable value.
923	923	"The tax rate that would raise the taxes required to fund the
924	924	same level of services as were provided last year is (effective
925	925	tax rate) per $100 of taxable value.
926	926	"The proposed tax rate is (proposed tax rate) per $100 of
927	927	taxable value.
928	928	["The average taxable value of a residence homestead in (name
929	929	of taxing unit) last year was $ (average taxable value of a
930	930	residence homestead in the taxing unit for the preceding tax year,
931	931	disregarding residence homestead exemptions available only to
932	932	disabled persons or persons 65 years of age or older). Based on
933	933	last year's tax rate of $ (preceding year's adopted tax rate) per
934	934	$100 of taxable value, the amount of taxes imposed last year on the
935	935	average home was $ (tax on average taxable value of a residence
936	936	homestead in the taxing unit for the preceding tax year,
937	937	disregarding residence homestead exemptions available only to
938	938	disabled persons or persons 65 years of age or older).
939	939	["The average taxable value of a residence homestead in (name
940	940	of taxing unit) this year is $ (average taxable value of a
941	941	residence homestead in the taxing unit for the current tax year,
942	942	disregarding residence homestead exemptions available only to
943	943	disabled persons or persons 65 years of age or older). If the
944	944	governing body adopts the effective tax rate for this year of
945	945	$ (effective tax rate) per $100 of taxable value, the amount of
946	946	taxes imposed this year on the average home would be $ (tax on
947	947	average taxable value of a residence homestead in the taxing unit
948	948	for the current tax year, disregarding residence homestead
949	949	exemptions available only to disabled persons or persons 65 years
950	950	of age or older).
951	951	["If the governing body adopts the proposed tax rate of
952	952	$ (proposed tax rate) per $100 of taxable value, the amount of
953	953	taxes imposed this year on the average home would be $ (tax on
954	954	the average taxable value of a residence in the taxing unit for the
955	955	current year disregarding residence homestead exemptions available
956	956	only to disabled persons or persons 65 years of age or older).]
957	957	"Members of the public are encouraged to attend the hearings
958	958	and express their views."
959	959	SECTION 7.03. Section 26.06(d), Tax Code, as amended by
960	960	Chapters 1105 (H.B. 3495) and 1112 (H.B. 3630), Acts of the 80th
961	961	Legislature, Regular Session, 2007, is reenacted and amended to
962	962	read as follows:
963	963	(d) At the public hearings the governing body shall announce
964	964	the date, time, and place of the meeting at which it will vote on the
965	965	proposed tax rate. After each hearing the governing body shall give
966	966	notice of the meeting at which it will vote on the proposed tax rate
967	967	and the notice shall be in the same form as prescribed by
968	968	Subsections (b) and (c), except that it must state the following:
969	969	"NOTICE OF TAX REVENUE INCREASE
970	970	"The (name of the taxing unit) conducted public hearings on
971	971	(date of first hearing) and (date of second hearing) on a proposal
972	972	to increase the total tax revenues of the (name of the taxing unit)
973	973	from properties on the tax roll in the preceding year by (percentage
974	974	by which proposed tax rate exceeds lower of rollback tax rate or
975	975	effective tax rate calculated under this chapter) percent.
976	976	"Last year's tax rate was (tax rate for preceding year)
977	977	per $100 of taxable value.
978	978	"The tax rate that would raise the taxes required to fund the
979	979	same level of services as were provided last year is (effective
980	980	tax rate) per $100 of taxable value.
981	981	"The proposed tax rate is (proposed tax rate) per $100 of
982	982	taxable value.
983	983	["The total tax revenue proposed to be raised last year at
984	984	last year's tax rate of (insert tax rate for the preceding year) for
985	985	each $100 of taxable value was (insert total amount of taxes imposed
986	986	in the preceding year).
987	987	["The total tax revenue proposed to be raised this year at the
988	988	proposed tax rate of (insert proposed tax rate) for each $100 of
989	989	taxable value, excluding tax revenue to be raised from new property
990	990	added to the tax roll this year, is (insert amount computed by
991	991	multiplying proposed tax rate by the difference between current
992	992	total value and new property value).
993	993	["The total tax revenue proposed to be raised this year at the
994	994	proposed tax rate of (insert proposed tax rate) for each $100 of
995	995	taxable value, including tax revenue to be raised from new property
996	996	added to the tax roll this year, is (insert amount computed by
997	997	multiplying proposed tax rate by current total value).]
998	998	"The (governing body of the taxing unit) is scheduled to vote
999	999	on the tax rate that will result in that tax increase at a public
1000	1000	meeting to be held on (date of meeting) at (location of meeting,
1001	1001	including mailing address) at (time of meeting)."
1002	1002	SECTION 7.04. Section 44.004(c), Education Code, is amended
1003	1003	to read as follows:
1004	1004	(c) The notice of public meeting to discuss and adopt the
1005	1005	budget and the proposed tax rate may not be smaller than one-quarter
1006	1006	page of a standard-size or a tabloid-size newspaper, and the
1007	1007	headline on the notice must be in 18-point or larger type. Subject
1008	1008	to Subsection (d), the notice must:
1009	1009	(1) contain a statement in the following form:
1010	1010	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
1011	1011	"The (name of school district) will hold a public meeting at
1012	1012	(time, date, year) in (name of room, building, physical location,
1013	1013	city, state). The purpose of this meeting is to discuss the school
1014	1014	district's budget that will determine the tax rate that will be
1015	1015	adopted. Public participation in the discussion is invited." The
1016	1016	statement of the purpose of the meeting must be in bold type. In
1017	1017	reduced type, the notice must state: "The tax rate that is
1018	1018	ultimately adopted at this meeting or at a separate meeting at a
1019	1019	later date may not exceed the proposed rate shown below unless the
1020	1020	district publishes a revised notice containing the same information
1021	1021	and comparisons set out below and holds another public meeting to
1022	1022	discuss the revised notice.";
1023	1023	(2) contain a section entitled "Comparison of Proposed
1024	1024	Budget with Last Year's Budget," which must show the difference,
1025	1025	expressed as a percent increase or decrease, as applicable, in the
1026	1026	amounts budgeted for the preceding fiscal year and the amount
1027	1027	budgeted for the fiscal year that begins in the current tax year for
1028	1028	each of the following:
1029	1029	(A) maintenance and operations;
1030	1030	(B) debt service; and
1031	1031	(C) total expenditures;
1032	1032	(3) [contain a section entitled "Total Appraised Value
1033	1033	and Total Taxable Value," which must show the total appraised value
1034	1034	and the total taxable value of all property and the total appraised
1035	1035	value and the total taxable value of new property taxable by the
1036	1036	district in the preceding tax year and the current tax year as
1037	1037	calculated under Section 26.04, Tax Code;
1038	1038	[(4) contain a statement of the total amount of the
1039	1039	outstanding and unpaid bonded indebtedness of the school district;
1040	1040	[(5)] contain a section entitled "Comparison of
1041	1041	Proposed Rates with Last Year's Rates," which must[:
1042	1042	[(A)] show in rows the tax rates described by
1043	1043	Paragraphs (A)-(C) [Subparagraphs (i)-(iii)], expressed as amounts
1044	1044	per $100 valuation of property, for columns entitled "Maintenance &
1045	1045	Operations," "Interest & Sinking Fund," and "Total," which is the
1046	1046	sum of "Maintenance & Operations" and "Interest & Sinking Fund":
1047	1047	(A) [(i)] the school district's "Last Year's
1048	1048	Rate";
1049	1049	(B) [(ii)] the "Rate to Maintain Same Level of
1050	1050	Maintenance & Operations Revenue & Pay Debt Service," which:
1051	1051	(i) [(a)] in the case of "Maintenance &
1052	1052	Operations," is the tax rate that, when applied to the current
1053	1053	taxable value for the district, as certified by the chief appraiser
1054	1054	under Section 26.01, Tax Code, and as adjusted to reflect changes
1055	1055	made by the chief appraiser as of the time the notice is prepared,
1056	1056	would impose taxes in an amount that, when added to state funds to
1057	1057	be distributed to the district under Chapter 42, would provide the
1058	1058	same amount of maintenance and operations taxes and state funds
1059	1059	distributed under Chapter 42 per student in average daily
1060	1060	attendance for the applicable school year that was available to the
1061	1061	district in the preceding school year; and
1062	1062	(ii) [(b)] in the case of "Interest &
1063	1063	Sinking Fund," is the tax rate that, when applied to the current
1064	1064	taxable value for the district, as certified by the chief appraiser
1065	1065	under Section 26.01, Tax Code, and as adjusted to reflect changes
1066	1066	made by the chief appraiser as of the time the notice is prepared,
1067	1067	and when multiplied by the district's anticipated collection rate,
1068	1068	would impose taxes in an amount that, when added to state funds to
1069	1069	be distributed to the district under Chapter 46 and any excess taxes
1070	1070	collected to service the district's debt during the preceding tax
1071	1071	year but not used for that purpose during that year, would provide
1072	1072	the amount required to service the district's debt; and
1073	1073	(C) [(iii)] the "Proposed Rate";
1074	1074	[(B) contain fourth and fifth columns aligned
1075	1075	with the columns required by Paragraph (A) that show, for each row
1076	1076	required by Paragraph (A):
1077	1077	[(i) the "Local Revenue per Student," which
1078	1078	is computed by multiplying the district's total taxable value of
1079	1079	property, as certified by the chief appraiser for the applicable
1080	1080	school year under Section 26.01, Tax Code, and as adjusted to
1081	1081	reflect changes made by the chief appraiser as of the time the
1082	1082	notice is prepared, by the total tax rate, and dividing the product
1083	1083	by the number of students in average daily attendance in the
1084	1084	district for the applicable school year; and
1085	1085	[(ii) the "State Revenue per Student,"
1086	1086	which is computed by determining the amount of state aid received or
1087	1087	to be received by the district under Chapters 42, 43, and 46 and
1088	1088	dividing that amount by the number of students in average daily
1089	1089	attendance in the district for the applicable school year; and
1090	1090	[(C) contain an asterisk after each calculation
1091	1091	for "Interest & Sinking Fund" and a footnote to the section that, in
1092	1092	reduced type, states "The Interest & Sinking Fund tax revenue is
1093	1093	used to pay for bonded indebtedness on construction, equipment, or
1094	1094	both. The bonds, and the tax rate necessary to pay those bonds,
1095	1095	were approved by the voters of this district.";
1096	1096	[(6) contain a section entitled "Comparison of
1097	1097	Proposed Levy with Last Year's Levy on Average Residence," which
1098	1098	must:
1099	1099	[(A) show in rows the information described by
1100	1100	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
1101	1101	entitled "Last Year" and "This Year":
1102	1102	[(i) "Average Market Value of Residences,"
1103	1103	determined using the same group of residences for each year;
1104	1104	[(ii) "Average Taxable Value of
1105	1105	Residences," determined after taking into account the limitation on
1106	1106	the appraised value of residences under Section 23.23, Tax Code,
1107	1107	and after subtracting all homestead exemptions applicable in each
1108	1108	year, other than exemptions available only to disabled persons or
1109	1109	persons 65 years of age or older or their surviving spouses, and
1110	1110	using the same group of residences for each year;
1111	1111	[(iii) "Last Year's Rate Versus Proposed
1112	1112	Rate per $100 Value"; and
1113	1113	[(iv) "Taxes Due on Average Residence,"
1114	1114	determined using the same group of residences for each year; and
1115	1115	[(B) contain the following
1116	1116	information: "Increase (Decrease) in Taxes" expressed in dollars
1117	1117	and cents, which is computed by subtracting the "Taxes Due on
1118	1118	Average Residence" for the preceding tax year from the "Taxes Due on
1119	1119	Average Residence" for the current tax year;]
1120	1120	(4) [(7)] contain the following statement in bold
1121	1121	print: "Under state law, the dollar amount of school taxes imposed
1122	1122	on the residence of a person 65 years of age or older or of the
1123	1123	surviving spouse of such a person, if the surviving spouse was 55
1124	1124	years of age or older when the person died, may not be increased
1125	1125	above the amount paid in the first year after the person turned 65,
1126	1126	regardless of changes in tax rate or property value.";
1127	1127	(5) [(8)] contain the following statement in bold
1128	1128	print: "Notice of Rollback Rate: The highest tax rate the
1129	1129	district can adopt before requiring voter approval at an election
1130	1130	is (the school district rollback rate determined under Section
1131	1131	26.08, Tax Code). This election will be automatically held if the
1132	1132	district adopts a rate in excess of the rollback rate of (the school
1133	1133	district rollback rate)."; and
1134	1134	(6) [(9)] contain a section entitled "Fund Balances,"
1135	1135	which must include the estimated amount of interest and sinking
1136	1136	fund balances and the estimated amount of maintenance and operation
1137	1137	or general fund balances remaining at the end of the current fiscal
1138	1138	year that are not encumbered with or by corresponding debt
1139	1139	obligation, less estimated funds necessary for the operation of the
1140	1140	district before the receipt of the first payment under Chapter 42 in
1141	1141	the succeeding school year.
1142	1142	SECTION 7.05. Section 49.236, Water Code, as added by
1143	1143	Chapters 248 (H.B. 1541) and 335 (S.B. 392), Acts of the 78th
1144	1144	Legislature, Regular Session, 2003, is reenacted and amended to
1145	1145	read as follows:
1146	1146	Sec. 49.236. NOTICE OF TAX HEARING. (a) Before the board
1147	1147	adopts an ad valorem tax rate for the district for debt service,
1148	1148	operation and maintenance purposes, or contract purposes, the board
1149	1149	shall give notice of each meeting of the board at which the adoption
1150	1150	of a tax rate will be considered. The notice must:
1151	1151	(1) contain a statement in substantially the following
1152	1152	form:
1153	1153	"NOTICE OF PUBLIC HEARING ON TAX RATE
1154	1154	"The (name of the district) will hold a public hearing on a
1155	1155	proposed tax rate for the tax year (year of tax levy) on (date and
1156	1156	time) at (meeting place). Your individual taxes may increase or
1157	1157	decrease, depending on the change in the taxable value of your
1158	1158	property in relation to the change in taxable value of all other
1159	1159	property and the tax rate that is adopted.
1160	1160	"(Names of all board members and, if a vote was taken, an
1161	1161	indication of how each voted on the proposed tax rate and an
1162	1162	indication of any absences.)";
1163	1163	(2) contain the following information:
1164	1164	(A) the district's total adopted tax rate for the
1165	1165	preceding year [and the proposed tax rate], expressed as an amount
1166	1166	per $100;
1167	1167	(B) the district's effective tax rate [the
1168	1168	difference], expressed as an amount per $100 [and as a percent
1169	1169	increase or decrease, as applicable, in the proposed tax rate
1170	1170	compared to the adopted tax rate for the preceding year]; and
1171	1171	(C) the district's proposed tax rate, expressed
1172	1172	as an amount per $100 [the average appraised value of a residence
1173	1173	homestead in the district in the preceding year and in the current
1174	1174	year; the district's total homestead exemption, other than an
1175	1175	exemption available only to disabled persons or persons 65 years of
1176	1176	age or older, applicable to that appraised value in each of those
1177	1177	years; and the average taxable value of a residence homestead in the
1178	1178	district in each of those years, disregarding any homestead
1179	1179	exemption available only to disabled persons or persons 65 years of
1180	1180	age or older];
1181	1181	[(D) the amount of tax that would have been
1182	1182	imposed by the district in the preceding year on a residence
1183	1183	homestead appraised at the average appraised value of a residence
1184	1184	homestead in that year, disregarding any homestead exemption
1185	1185	available only to disabled persons or persons 65 years of age or
1186	1186	older;
1187	1187	[(E) the amount of tax that would be imposed by
1188	1188	the district in the current year on a residence homestead appraised
1189	1189	at the average appraised value of a residence homestead in that
1190	1190	year, disregarding any homestead exemption available only to
1191	1191	disabled persons or persons 65 years of age or older, if the
1192	1192	proposed tax rate is adopted; and
1193	1193	[(F) the difference between the amounts of tax
1194	1194	calculated under Paragraphs (D) and (E), expressed in dollars and
1195	1195	cents and described as the annual percentage increase or decrease,
1196	1196	as applicable, in the tax to be imposed by the district on the
1197	1197	average residence homestead in the district in the current year if
1198	1198	the proposed tax rate is adopted;] and
1199	1199	(3) contain a statement in substantially the following
1200	1200	form:
1201	1201	"NOTICE OF TAXPAYERS' RIGHT TO
1202	1202	ROLLBACK ELECTION
1203	1203	"If taxes on the average residence homestead increase by more
1204	1204	than eight percent, the qualified voters of the district by
1205	1205	petition may require that an election be held to determine whether
1206	1206	to reduce the operation and maintenance tax rate to the rollback tax
1207	1207	rate under Section 49.236(d), Water Code."
1208	1208	(b) Notice of the hearing shall be:
1209	1209	(1) published at least once in a newspaper having
1210	1210	general circulation in the district at least seven days before the
1211	1211	date of the hearing; or
1212	1212	(2) mailed to each owner of taxable property in the
1213	1213	district, at the address for notice shown on the most recently
1214	1214	certified tax roll of the district, at least 10 days before the date
1215	1215	of the hearing.
1216	1216	(c) The notice provided under this section may not be
1217	1217	smaller than one-quarter page of a standard-size or tabloid-size
1218	1218	newspaper of general circulation, and the headline on the notice
1219	1219	must be in 18-point or larger type.
1220	1220	(d) If the governing body of a district adopts a combined
1221	1221	debt service, operation and maintenance, and contract tax rate that
1222	1222	would impose more than 1.08 times the amount of tax imposed by the
1223	1223	district in the preceding year on a residence homestead appraised
1224	1224	at the average appraised value of a residence homestead in the
1225	1225	district in that year, disregarding any homestead exemption
1226	1226	available only to disabled persons or persons 65 years of age or
1227	1227	older, the qualified voters of the district by petition may require
1228	1228	that an election be held to determine whether [or not] to reduce the
1229	1229	tax rate adopted for the current year to the rollback tax rate in
1230	1230	accordance with the procedures provided by Sections 26.07(b)-(g)
1231	1231	and 26.081, Tax Code. For purposes of Sections 26.07(b)-(g) and
1232	1232	this subsection, the rollback tax rate is the current year's debt
1233	1233	service and contract tax rates plus the operation and maintenance
1234	1234	tax rate that would impose 1.08 times the amount of the operation
1235	1235	and maintenance tax imposed by the district in the preceding year on
1236	1236	a residence homestead appraised at the average appraised value of a
1237	1237	residence homestead in the district in that year, disregarding any
1238	1238	homestead exemption available only to disabled persons or persons
1239	1239	65 years of age or older.
1240	1240	SECTION 7.06. This article applies only to ad valorem taxes
1241	1241	imposed for a tax year beginning on or after January 1, 2010.
1242	1242	SECTION 7.07. This article takes effect January 1, 2010.
1243	1243	ARTICLE 8. NOTICE OF APPRAISED VALUE
1244	1244	SECTION 8.01. Sections 25.19(b) and (i), Tax Code, are
1245	1245	amended to read as follows:
1246	1246	(b) The chief appraiser shall separate real from personal
1247	1247	property and include in the notice for each:
1248	1248	(1) a list of the taxing units in which the property is
1249	1249	taxable;
1250	1250	(2) the appraised value of the property in the
1251	1251	preceding year;
1252	1252	(3) the taxable value of the property in the preceding
1253	1253	year for each taxing unit taxing the property;
1254	1254	(4) the appraised value of the property for the
1255	1255	current year and the kind and amount of each partial exemption, if
1256	1256	any, approved for the current year;
1257	1257	(5) [if the appraised value is greater than it was in
1258	1258	the preceding year, the amount of tax that would be imposed on the
1259	1259	property on the basis of the tax rate for the preceding year;
1260	1260	[(6)] in italic typeface, the following
1261	1261	statement: "The Texas Legislature does not set the amount of your
1262	1262	local taxes. Your property tax burden is decided by your locally
1263	1263	elected officials, and all inquiries concerning your taxes should
1264	1264	be directed to those officials";
1265	1265	(6) [(7)] a detailed explanation of the time and
1266	1266	procedure for protesting the value;
1267	1267	(7) [(8)] the date and place the appraisal review
1268	1268	board will begin hearing protests; and
1269	1269	(8) [(9)] a brief explanation that the governing body
1270	1270	of each taxing unit decides whether or not taxes on the property
1271	1271	will increase and the appraisal district only determines the value
1272	1272	of the property.
1273	1273	(i) Delivery with a notice required by Subsection (a) or (g)
1274	1274	of a copy of the pamphlet published by the comptroller under Section
1275	1275	5.06 or a copy of the notice published by the chief appraiser under
1276	1276	Section 41.70 is sufficient to comply with the requirement that the
1277	1277	notice include the information specified by Subsection (b)(6)
1278	1278	[(b)(7)] or (g)(3), as applicable.
1279	1279	SECTION 8.02. This article takes effect January 1, 2010.
1280	1280	ARTICLE 9. COMPOSITION AND OPERATION OF APPRAISAL REVIEW BOARDS
1281	1281	SECTION 9.01. Subchapter C, Chapter 6, Tax Code, is amended
1282	1282	by adding Section 6.44 to read as follows:
1283	1283	Sec. 6.44. MEMBERSHIP ON BOARD OF ADMINISTRATIVE LAW JUDGE.
1284	1284	(a) The comptroller may employ administrative law judges to serve
1285	1285	on appraisal review boards. To be eligible for employment with the
1286	1286	comptroller as an administrative law judge, an individual must be
1287	1287	licensed to practice law in this state and meet other requirements
1288	1288	prescribed by the comptroller.
1289	1289	(b) The comptroller may appoint an administrative law judge
1290	1290	employed by the comptroller to serve on an appraisal review board.
1291	1291	Section 6.41(c) does not apply to a person appointed under this
1292	1292	section. If the comptroller appoints an administrative law judge
1293	1293	to serve on an appraisal review board, the administrative law judge
1294	1294	serves on the board as an additional member and serves as the
1295	1295	chairman of the board.
1296	1296	(c) A vacancy in the position on an appraisal review board
1297	1297	held by an administrative law judge is filled in the same manner as
1298	1298	the original appointment.
1299	1299	(d) A member of an appraisal review board appointed under
1300	1300	this subsection holds office for a term of one year beginning
1301	1301	January 1.
1302	1302	(e) A member of an appraisal review board appointed under
1303	1303	this section may be removed from the board by the comptroller.
1304	1304	Grounds for removal are the grounds specified by Section 6.41(f),
1305	1305	except that the provision of Section 6.412(c) pertaining to an
1306	1306	employee of the comptroller does not apply to a person appointed
1307	1307	under this section.
1308	1308	(f) Notwithstanding Section 6.42(c), a member of an
1309	1309	appraisal review board appointed under this section is not entitled
1310	1310	to per diem.
1311	1311	SECTION 9.02. Section 41.45(d), Tax Code, is amended to
1312	1312	read as follows:
1313	1313	(d) An appraisal review board consisting of more than three
1314	1314	members may sit in panels of not fewer than three members to conduct
1315	1315	protest hearings. However, the determination of a protest heard by
1316	1316	a panel must be made by the board. If the comptroller has appointed
1317	1317	an administrative law judge to serve on the board, the
1318	1318	administrative law judge, to the extent practicable, shall sit on
1319	1319	panels that determine complex matters. If the recommendation of a
1320	1320	panel is not accepted by the board, the board may refer the matter
1321	1321	for rehearing to a panel composed of members who did not hear the
1322	1322	original hearing or, if there are not at least three members who did
1323	1323	not hear the original protest, the board may determine the protest.
1324	1324	Before determining a protest or conducting a rehearing before a new
1325	1325	panel or the board, the board shall deliver notice of the hearing or
1326	1326	meeting to determine the protest in accordance with the provisions
1327	1327	of this subchapter.
1328	1328	SECTION 9.03. This article takes effect January 1, 2010,
1329	1329	but only if the constitutional amendment proposed by the 81st
1330	1330	Legislature, Regular Session, 2009, authorizing the legislature to
1331	1331	provide that ad valorem tax appraisal services in any county are
1332	1332	under the jurisdiction of the entity specified by the legislature,
1333	1333	to provide for the consolidation of ad valorem tax appraisal
1334	1334	services, and to provide for enforcement of ad valorem tax
1335	1335	standards and procedures by the specified entity is approved by the
1336	1336	voters. If that amendment is not approved by the voters, this
1337	1337	article has no effect.
1338	1338	ARTICLE 10. CAPITALIZATION RATE USED TO APPRAISE INCOME-PRODUCING
1339	1339	TANGIBLE PERSONAL PROPERTY
1340	1340	SECTION 10.01. Section 22.01(a), Tax Code, is amended to
1341	1341	read as follows:
1342	1342	(a) Except as provided by Chapter 24, a person shall render
1343	1343	for taxation all tangible personal property used for the production
1344	1344	of income that the person owns or that the person manages and
1345	1345	controls as a fiduciary on January 1. A rendition statement shall
1346	1346	contain:
1347	1347	(1) the name and address of the property owner;
1348	1348	(2) a description of the property by type or category;
1349	1349	(3) if the property is inventory, a description of
1350	1350	each type of inventory and a general estimate of the quantity of
1351	1351	each type of inventory;
1352	1352	(4) the physical location or taxable situs of the
1353	1353	property; [and]
1354	1354	(5) the property owner's good faith estimate of the
1355	1355	market value of the property or, at the option of the property
1356	1356	owner, the historical cost when new and the year of acquisition of
1357	1357	the property; and
1358	1358	(6) if the property owner provides a good faith
1359	1359	estimate of the market value of the property, the capitalization
1360	1360	rate, if any, used by the owner to estimate the value.
1361	1361	SECTION 10.02. Subchapter C, Chapter 22, Tax Code, is
1362	1362	amended by adding Section 22.42 to read as follows:
1363	1363	Sec. 22.42. REPORT OF CAPITALIZATION RATES USED BY PROPERTY
1364	1364	OWNERS TO ESTIMATE VALUE. Not later than April 20 of each year, the
1365	1365	chief appraiser of each appraisal district shall deliver a written
1366	1366	report to the comptroller containing the following information
1367	1367	regarding each rendition statement delivered to the chief appraiser
1368	1368	in that year that contains a capitalization rate as provided by
1369	1369	Section 22.01(a)(6):
1370	1370	(1) the capitalization rate contained in the
1371	1371	statement; and
1372	1372	(2) the information required by Sections
1373	1373	22.01(a)(2)-(4) to be contained in the statement.
1374	1374	SECTION 10.03. Subchapter B, Chapter 23, Tax Code, is
1375	1375	amended by adding Section 23.26 to read as follows:
1376	1376	Sec. 23.26. DETERMINATION OF CAPITALIZATION RATE TO BE USED
1377	1377	IN APPRAISING INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY. (a) Not
1378	1378	later than May 1 of each year, the comptroller shall:
1379	1379	(1) determine the capitalization rate to be used by
1380	1380	the chief appraiser of each appraisal district in using the income
1381	1381	method of appraisal to appraise tangible personal property used for
1382	1382	the production of income that a person owns or that the person
1383	1383	manages and controls as a fiduciary on January 1; and
1384	1384	(2) notify in writing the chief appraiser of each
1385	1385	appraisal district of the comptroller's determination.
1386	1386	(b) In determining the capitalization rate to be used in
1387	1387	appraising property, the comptroller shall consider the
1388	1388	information reported to the comptroller under Section 22.42.
1389	1389	(c) The comptroller may specify different capitalization
1390	1390	rates to be used in appraising property depending on:
1391	1391	(1) the type or category of the property; and
1392	1392	(2) the physical location or taxable situs of the
1393	1393	property.
1394	1394	(d) The comptroller must provide notice and an opportunity
1395	1395	for public comment before determining the capitalization rate to be
1396	1396	used in appraising property.
1397	1397	SECTION 10.04. This article takes effect January 1, 2010.
1398	1398	ARTICLE 11. APPRAISAL OF RESIDENCE HOMESTEADS
1399	1399	SECTION 11.01. Subchapter B, Chapter 23, Tax Code, is
1400	1400	amended by adding Section 23.27 to read as follows:
1401	1401	Sec. 23.27. APPRAISAL OF RESIDENCE HOMESTEAD. (a) This
1402	1402	section applies only to the appraisal of a residence homestead.
1403	1403	(b) In appraising the property, the chief appraiser may not
1404	1404	consider any factor other than a factor relating to the value of the
1405	1405	property for use as a residence homestead.
1406	1406	(c) If generally accepted appraisal methods and techniques
1407	1407	require consideration of the highest and best use of the property,
1408	1408	the chief appraiser shall consider the highest and best use of the
1409	1409	property to be its use as a residence homestead.
1410	1410	(d) If the chief appraiser uses the market data comparison
1411	1411	method of appraisal to appraise the property, the chief appraiser
1412	1412	may not use comparable sales data pertaining to the sale of property
1413	1413	that after the sale ceased to be used as a residence homestead.
1414	1414	(e) If the chief appraiser uses the income method of
1415	1415	appraisal to appraise the property, the chief appraiser shall
1416	1416	analyze comparable rental data pertaining to residential property
1417	1417	available to the chief appraiser or the potential earnings capacity
1418	1418	of the property if the property were rented for residential use, or
1419	1419	both, to estimate the gross income potential of the property.
1420	1420	SECTION 11.02. This article takes effect January 1, 2010,
1421	1421	but only if the constitutional amendment proposed by the 81st
1422	1422	Legislature, Regular Session, 2009, authorizing the legislature to
1423	1423	provide for the ad valorem taxation of a residence homestead solely
1424	1424	on the basis of the property's value as a residence homestead is
1425	1425	approved by the voters. If that amendment is not approved by the
1426	1426	voters, this article has no effect.
1427	1427	ARTICLE 12. DEFERRED COLLECTION OF TAXES ON APPRECIATING RESIDENCE
1428	1428	HOMESTEAD
1429	1429	SECTION 12.01. Sections 33.065(a) and (g), Tax Code, are
1430	1430	amended to read as follows:
1431	1431	(a) An individual is entitled to defer or abate a suit to
1432	1432	collect a delinquent tax imposed on the portion of the appraised
1433	1433	value of property the individual owns and occupies as the
1434	1434	individual's residence homestead that exceeds the sum of:
1435	1435	(1) [105 percent of] the appraised value of the
1436	1436	property for the preceding year; and
1437	1437	(2) the market value of all new improvements to the
1438	1438	property.
1439	1439	(g) A tax lien remains on the property and interest
1440	1440	continues to accrue during the period collection of delinquent
1441	1441	taxes is deferred or abated under this section. The annual interest
1442	1442	rate during the deferral or abatement period is the prime rate, as
1443	1443	published in The Wall Street Journal on the first day of each
1444	1444	calendar year that is not a Saturday, Sunday, or legal holiday,
1445	1445	[eight percent] instead of the rate provided by Section 33.01.
1446	1446	Interest and penalties that accrued or that were incurred or
1447	1447	imposed under Section 33.01 or 33.07 before the date the individual
1448	1448	files the deferral affidavit under Subsection (c) or the date the
1449	1449	judgment abating the suit is entered, as applicable, are preserved.
1450	1450	A penalty is not incurred on the delinquent taxes for which
1451	1451	collection is deferred or abated during a deferral or abatement
1452	1452	period. The additional penalty under Section 33.07 may be imposed
1453	1453	and collected only if the delinquent taxes for which collection is
1454	1454	deferred or abated remain delinquent on or after the 91st day after
1455	1455	the date the deferral or abatement period expires. A plea of
1456	1456	limitation, laches, or want of prosecution does not apply against
1457	1457	the taxing unit because of deferral or abatement of collection as
1458	1458	provided by this section.
1459	1459	SECTION 12.02. Section 33.065(g), Tax Code, as amended by
1460	1460	this article, applies only to interest that accrued on a delinquent
1461	1461	tax before September 1, 2009, or that accrues on or after that date,
1462	1462	regardless of whether the deferral or abatement period under
1463	1463	Section 33.065, Tax Code, began before September 1, 2009, or begins
1464	1464	on or after that date.
1465	1465	SECTION 12.03. This article takes effect September 1, 2009.