Texas 2009 - 81st Regular

Texas House Bill HB1575 Compare Versions

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1	1	81R1539 UM-D
2	2	By: Isett H.B. No. 1575
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to ad valorem tax relief.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	ARTICLE 1. ELIGIBILITY FOR RESIDENCE HOMESTEAD EXEMPTION AND
10	10	EFFECT ON CALCULATION OF TAXES.
11	11	SECTION 1.01. Section 11.42(c), Tax Code, is amended to
12	12	read as follows:
13	13	(c) An exemption authorized by Section 11.13 [11.13(c) or
14	14	(d)] is effective as of January 1 of the tax year in which the person
15	15	qualifies for the exemption and applies to the entire tax year.
16	16	SECTION 1.02. Section 11.431, Tax Code, is amended to read
17	17	as follows:
18	18	Sec. 11.431. LATE APPLICATION FOR [OF] HOMESTEAD
19	19	EXEMPTION. (a) The chief appraiser shall accept and approve or
20	20	deny an application for a residence homestead exemption after the
21	21	deadline for filing the application [it] has passed if the
22	22	application [it] is filed not later than December 31 of the fifth
23	23	[one] year after the year in which [delinquency date for] the taxes
24	24	for which the exemption is claimed were imposed [on the homestead].
25	25	(b) If a late application for an exemption for one or more
26	26	tax years is approved after approval of the appraisal records for
27	27	the appropriate year or years by the appraisal review board, the
28	28	chief appraiser shall correct the appraisal records and notify the
29	29	collector for each unit in which the residence is located. The
30	30	collector shall deduct from the person's tax bill for the
31	31	appropriate tax year or years the amount of tax imposed on the
32	32	exempted amount if the tax has not been paid and any unpaid
33	33	penalties and accrued interest relating to that tax. If the tax has
34	34	been paid, the collector:
35	35	(1) shall refund the amount of tax imposed on the
36	36	exempted amount if a late application is approved for one or both of
37	37	the tax years preceding the year in which the late application is
38	38	filed; and
39	39	(2) may not refund taxes, penalties, or interest paid
40	40	on the property for which an exemption is granted under this section
41	41	for a tax year preceding the tax years described by Subdivision (1).
42	42	SECTION 1.03. Section 26.112, Tax Code, is amended to read
43	43	as follows:
44	44	Sec. 26.112. CALCULATION OF TAXES ON RESIDENCE HOMESTEAD
45	45	[OF ELDERLY OR DISABLED PERSON]. (a) Except as provided by Section
46	46	26.10(b), if at any time during a tax year property is owned by an
47	47	individual who qualifies for an exemption under Section 11.13 with
48	48	respect to the property [11.13(c) or (d)], the amount of the tax due
49	49	on the property for the tax year is calculated as if the person
50	50	qualified for the exemption on January 1 and continued to qualify
51	51	for the exemption for the remainder of the tax year.
52	52	(b) If a person qualifies for an exemption under Section
53	53	11.13 [11.13(c) or (d)] with respect to the property after the
54	54	amount of the tax due on the property is calculated and the effect
55	55	of the qualification is to reduce the amount of the tax due on the
56	56	property, the assessor for each taxing unit shall recalculate the
57	57	amount of the tax due on the property and correct the tax roll. If
58	58	the tax bill has been mailed and the tax on the property has not been
59	59	paid, the assessor shall mail a corrected tax bill to the person in
60	60	whose name the property is listed on the tax roll or to the person's
61	61	authorized agent. If the tax on the property has been paid, the tax
62	62	collector for the taxing unit shall refund to the person who paid
63	63	the tax the amount by which the payment exceeded the tax due.
64	64	SECTION 1.04. This article takes effect January 1, 2010.
65	65	ARTICLE 2. METHOD OF APPRAISAL
66	66	SECTION 2.01. Section 23.01(b), Tax Code, is amended to
67	67	read as follows:
68	68	(b) The market value of property shall be determined by the
69	69	application of generally accepted appraisal methods and
70	70	techniques. If the appraisal district determines the appraised
71	71	value of a property using mass appraisal standards, the mass
72	72	appraisal standards must comply with the Uniform Standards of
73	73	Professional Appraisal Practice. The same or similar appraisal
74	74	methods and techniques shall be used in appraising the same or
75	75	similar kinds of property. However, each property shall be
76	76	appraised based upon the individual characteristics that affect the
77	77	property's market value and upon the use for which the property is
78	78	currently used or designed or suited to be used and not the highest
79	79	and best potential use of the property.
80	80	SECTION 2.02. This article applies only to the appraisal
81	81	for ad valorem tax purposes of property for a tax year that begins
82	82	on or after the effective date of this Act.
83	83	SECTION 2.03. This article takes effect January 1, 2010.
84	84	ARTICLE 3. NOTICE OF APPRAISAL
85	85	SECTION 3.01. Section 25.19, Tax Code, is amended by adding
86	86	Subsection (b-3) to read as follows:
87	87	(b-3) For real property, in addition to the information
88	88	required by Subsection (b), the chief appraiser shall state in a
89	89	notice required to be delivered under Subsection (a) the following
90	90	for the current tax year and each of the preceding five tax years:
91	91	(1) the appraised value of the property; and
92	92	(2) the difference, expressed as a percent increase or
93	93	decrease, as applicable, in the appraised value of the property
94	94	compared to the appraised value of the property for the preceding
95	95	tax year.
96	96	SECTION 3.02. This article takes effect January 1, 2010.
97	97	ARTICLE 4. ROLLBACK TAX RATE AND REQUIRED ELECTION
98	98	SECTION 4.01. Section 26.04(c), Tax Code, is amended to
99	99	read as follows:
100	100	(c) An officer or employee designated by the governing body
101	101	shall calculate the effective tax rate and the rollback tax rate for
102	102	the unit, where:
103	103	(1) "Effective tax rate" means a rate expressed in
104	104	dollars per $100 of taxable value calculated according to the
105	105	following formula:
106	106	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
107	107	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
108	108	; and
109	109	(2) "Rollback tax rate" means a rate expressed in
110	110	dollars per $100 of taxable value calculated according to the
111	111	following formula:
112	112	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
113	113	1.05 [1.08]) + CURRENT DEBT RATE
114	114	SECTION 4.02. Sections 26.041(a), (b), and (c), Tax Code,
115	115	are amended to read as follows:
116	116	(a) In the first year in which an additional sales and use
117	117	tax is required to be collected, the effective tax rate and rollback
118	118	tax rate for the unit are calculated according to the following
119	119	formulas:
120	120	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
121	121	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN RATE
122	122	and
123	123	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS RATE x
124	124	1.05 [1.08]) + CURRENT DEBT RATE - SALES TAX GAIN RATE
125	125	where "sales tax gain rate" means a number expressed in dollars per
126	126	$100 of taxable value, calculated by dividing the revenue that will
127	127	be generated by the additional sales and use tax in the following
128	128	year as calculated under Subsection (d) [of this section] by the
129	129	current total value.
130	130	(b) Except as provided by Subsections (a) and (c) [of this
131	131	section], in a year in which a taxing unit imposes an additional
132	132	sales and use tax the rollback tax rate for the unit is calculated
133	133	according to the following formula, regardless of whether the unit
134	134	levied a property tax in the preceding year:
135	135	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
136	136	EXPENSE X 1.05 [1.08]) / ([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY
137	137	VALUE)] + (CURRENT DEBT RATE - SALES TAX REVENUE RATE)
138	138	where "last year's maintenance and operations expense" means the
139	139	amount spent for maintenance and operations from property tax and
140	140	additional sales and use tax revenues in the preceding year, and
141	141	"sales tax revenue rate" means a number expressed in dollars per
142	142	$100 of taxable value, calculated by dividing the revenue that will
143	143	be generated by the additional sales and use tax in the current year
144	144	as calculated under Subsection (d) [of this section] by the current
145	145	total value.
146	146	(c) In a year in which a taxing unit that has been imposing
147	147	an additional sales and use tax ceases to impose an additional sales
148	148	and use tax the effective tax rate and rollback tax rate for the
149	149	unit are calculated according to the following formulas:
150	150	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) /
151	151	(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + SALES TAX LOSS RATE
152	152	and
153	153	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
154	154	EXPENSE X 1.05 [1.08]) / ([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY
155	155	VALUE)] + CURRENT DEBT RATE
156	156	where "sales tax loss rate" means a number expressed in dollars per
157	157	$100 of taxable value, calculated by dividing the amount of sales
158	158	and use tax revenue generated in the last four quarters for which
159	159	the information is available by the current total value and "last
160	160	year's maintenance and operations expense" means the amount spent
161	161	for maintenance and operations from property tax and additional
162	162	sales and use tax revenues in the preceding year.
163	163	SECTION 4.03. Section 26.07, Tax Code, is amended to read as
164	164	follows:
165	165	Sec. 26.07. ELECTION TO RATIFY TAX [REPEAL] INCREASE OF
166	166	TAXING UNIT OTHER THAN SCHOOL DISTRICT. (a) The [If the] governing
167	167	body of a taxing unit other than a school district may not adopt
168	168	[adopts] a tax rate that exceeds the rollback tax rate calculated as
169	169	provided by this chapter without voter approval as provided by this
170	170	section. To adopt a tax rate that exceeds the rollback tax rate,
171	171	the governing body must adopt the rate as a proposed tax rate and
172	172	call an election to permit[,] the qualified voters of the taxing
173	173	unit [by petition may require that an election be held to determine
174	174	whether or not] to approve or disapprove [reduce] the proposed tax
175	175	rate [adopted for the current year to the rollback tax rate
176	176	calculated as provided by this chapter].
177	177	(b) The [A petition is valid only if:
178	178	[(1) it states that it is intended to require an
179	179	election in the taxing unit on the question of reducing the tax rate
180	180	for the current year;
181	181	[(2) it is signed by a number of registered voters of
182	182	the taxing unit equal to at least:
183	183	[(A) seven percent of the number of registered
184	184	voters of the taxing unit according to the most recent list of
185	185	registered voters if the tax rate adopted for the current tax year
186	186	would impose taxes for maintenance and operations in an amount of at
187	187	least $5 million; or
188	188	[(B) 10 percent of the number of registered
189	189	voters of the taxing unit according to the most recent official list
190	190	of registered voters if the tax rate adopted for the current tax
191	191	year would impose taxes for maintenance and operations in an amount
192	192	of less than $5 million; and
193	193	[(3) it is submitted to the governing body on or before
194	194	the 90th day after the date on which the governing body adopted the
195	195	tax rate for the current year.
196	196	[(c) Not later than the 20th day after the day a petition is
197	197	submitted, the governing body shall determine whether or not the
198	198	petition is valid and pass a resolution stating its finding. If the
199	199	governing body fails to act within the time allowed, the petition is
200	200	treated as if it had been found valid.
201	201	[(d) If the] governing body [finds that the petition is
202	202	valid (or fails to act within the time allowed), it] shall order
203	203	that the [an] election be held in the taxing unit on a date not less
204	204	than 30 or more than 90 days after the [last] day on which the
205	205	governing body adopted the proposed tax rate. Section 41.001,
206	206	Election Code, [it could have acted to approve or disapprove the
207	207	petition. A state law requiring local elections to be held on a
208	208	specified date] does not apply to the election unless a [specified]
209	209	date specified by that section falls within the time permitted by
210	210	this section. At the election, the ballots shall be prepared to
211	211	permit voting for or against the proposition: "Approving
212	212	["Reducing] the proposed ad valorem tax rate of $_____ per $100
213	213	valuation in (name of taxing unit) for the current year, a rate that
214	214	is $_____ higher per $100 valuation than the [from (the rate
215	215	adopted) to (the] rollback tax rate [calculated as provided by this
216	216	chapter)]." The ballot proposition must include the proposed tax
217	217	rate and the difference between that rate and the rollback tax rate
218	218	in the appropriate places.
219	219	(c) [(e)] If a majority of the votes cast [qualified voters
220	220	voting on the question] in the election favor the proposition, the
221	221	proposition is approved and the tax rate for the [taxing unit for
222	222	the] current year is the proposed [rollback] tax rate that was
223	223	[calculated as provided by this chapter; otherwise, the tax rate
224	224	for the current year is the one] adopted by the governing body.
225	225	(d) [(f)] If the proposition is not approved as provided by
226	226	Subsection (c), the governing body may not adopt a tax rate for the
227	227	taxing unit for the current year that exceeds the taxing unit's
228	228	rollback tax rate [is reduced by an election called under this
229	229	section after tax bills for the unit are mailed, the assessor for
230	230	the unit shall prepare and mail corrected tax bills. He shall
231	231	include with the bill a brief explanation of the reason for and
232	232	effect of the corrected bill. The date on which the taxes become
233	233	delinquent for the year is extended by a number of days equal to the
234	234	number of days between the date the first tax bills were sent and
235	235	the date the corrected tax bills were sent].
236	236	[(g) If a property owner pays taxes calculated using the
237	237	higher tax rate when the rate is reduced by an election called under
238	238	this section, the taxing unit shall refund the difference between
239	239	the amount of taxes paid and the amount due under the reduced rate
240	240	if the difference between the amount of taxes paid and the amount
241	241	due under the reduced rate is $1 or more. If the difference between
242	242	the amount of taxes paid and the amount due under the reduced rate
243	243	is less than $1, the taxing unit shall refund the difference on
244	244	request of the taxpayer. An application for a refund of less than
245	245	$1 must be made within 90 days after the date the refund becomes due
246	246	or the taxpayer forfeits the right to the refund.]
247	247	SECTION 4.04. Sections 31.12(a) and (b), Tax Code, are
248	248	amended to read as follows:
249	249	(a) If a refund of a tax provided by Section 11.431(b),
250	250	[26.07(g),] 26.15(f), 31.11, or 31.111 is paid on or before the 60th
251	251	day after the date the liability for the refund arises, no interest
252	252	is due on the amount refunded. If not paid on or before that 60th
253	253	day, the amount of the tax to be refunded accrues interest at a rate
254	254	of one percent for each month or part of a month that the refund is
255	255	unpaid, beginning with the date on which the liability for the
256	256	refund arises.
257	257	(b) For purposes of this section, liability for a refund
258	258	arises:
259	259	(1) if the refund is required by Section 11.431(b), on
260	260	the date the chief appraiser notifies the collector for the unit of
261	261	the approval of the late homestead exemption;
262	262	(2) [if the refund is required by Section 26.07(g), on
263	263	the date the results of the election to reduce the tax rate are
264	264	certified;
265	265	[(3)] if the refund is required by Section 26.15(f):
266	266	(A) for a correction to the tax roll made under
267	267	Section 26.15(b), on the date the change in the tax roll is
268	268	certified to the assessor for the taxing unit under Section 25.25;
269	269	or
270	270	(B) for a correction to the tax roll made under
271	271	Section 26.15(c), on the date the change in the tax roll is ordered
272	272	by the governing body of the taxing unit;
273	273	(3) [(4)] if the refund is required by Section 31.11,
274	274	on the date the auditor for the taxing unit determines that the
275	275	payment was erroneous or excessive or, if the amount of the refund
276	276	exceeds the applicable amount specified by Section 31.11(a), on the
277	277	date the governing body of the unit approves the refund; or
278	278	(4) [(5)] if the refund is required by Section 31.111,
279	279	on the date the collector for the taxing unit determines that the
280	280	payment was erroneous.
281	281	SECTION 4.05. Section 33.08(b), Tax Code, is amended to
282	282	read as follows:
283	283	(b) The governing body of the taxing unit or appraisal
284	284	district, in the manner required by law for official action, may
285	285	provide that taxes that become delinquent on or after June 1 under
286	286	Section [26.07(f),] 26.15(e), 31.03, 31.031, 31.032, or 31.04 incur
287	287	an additional penalty to defray costs of collection. The amount of
288	288	the penalty may not exceed the amount of the compensation specified
289	289	in the applicable contract with an attorney under Section 6.30 to be
290	290	paid in connection with the collection of the delinquent taxes.
291	291	SECTION 4.06. Section 49.236, Water Code, as added by
292	292	Chapters 248 (H.B. 1541) and 335 (S.B. 392), Acts of the 78th
293	293	Legislature, Regular Session, 2003, is reenacted and amended to
294	294	read as follows:
295	295	Sec. 49.236. NOTICE OF TAX HEARING. (a) Before the board
296	296	adopts an ad valorem tax rate for the district for debt service,
297	297	operation and maintenance purposes, or contract purposes, the board
298	298	shall give notice of each meeting of the board at which the adoption
299	299	of a tax rate will be considered. The notice must:
300	300	(1) contain a statement in substantially the following
301	301	form:
302	302	"NOTICE OF PUBLIC HEARING ON TAX RATE
303	303	"The (name of the district) will hold a public hearing on a
304	304	proposed tax rate for the tax year (year of tax levy) on (date and
305	305	time) at (meeting place). Your individual taxes may increase or
306	306	decrease, depending on the change in the taxable value of your
307	307	property in relation to the change in taxable value of all other
308	308	property and the tax rate that is adopted.
309	309	"(Names of all board members and, if a vote was taken, an
310	310	indication of how each voted on the proposed tax rate and an
311	311	indication of any absences.)";
312	312	(2) contain the following information:
313	313	(A) the district's total adopted tax rate for the
314	314	preceding year and the proposed tax rate, expressed as an amount per
315	315	$100;
316	316	(B) the difference, expressed as an amount per
317	317	$100 and as a percent increase or decrease, as applicable, in the
318	318	proposed tax rate compared to the adopted tax rate for the preceding
319	319	year;
320	320	(C) the average appraised value of a residence
321	321	homestead in the district in the preceding year and in the current
322	322	year; the district's total homestead exemption, other than an
323	323	exemption available only to disabled persons or persons 65 years of
324	324	age or older, applicable to that appraised value in each of those
325	325	years; and the average taxable value of a residence homestead in the
326	326	district in each of those years, disregarding any homestead
327	327	exemption available only to disabled persons or persons 65 years of
328	328	age or older;
329	329	(D) the amount of tax that would have been
330	330	imposed by the district in the preceding year on a residence
331	331	homestead appraised at the average appraised value of a residence
332	332	homestead in that year, disregarding any homestead exemption
333	333	available only to disabled persons or persons 65 years of age or
334	334	older;
335	335	(E) the amount of tax that would be imposed by the
336	336	district in the current year on a residence homestead appraised at
337	337	the average appraised value of a residence homestead in that year,
338	338	disregarding any homestead exemption available only to disabled
339	339	persons or persons 65 years of age or older, if the proposed tax
340	340	rate is adopted; and
341	341	(F) the difference between the amounts of tax
342	342	calculated under Paragraphs (D) and (E), expressed in dollars and
343	343	cents and described as the annual percentage increase or decrease,
344	344	as applicable, in the tax to be imposed by the district on the
345	345	average residence homestead in the district in the current year if
346	346	the proposed tax rate is adopted; and
347	347	(3) contain a statement in substantially the following
348	348	form:
349	349	"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO
350	350	ROLLBACK ELECTION]
351	351	"If taxes on the average residence homestead increase by more
352	352	than five [eight] percent, [the qualified voters of the district by
353	353	petition may require that] an election must be held to determine
354	354	whether to ratify [reduce] the operation and maintenance tax rate
355	355	[to the rollback tax rate] under Section 49.236(d), Water Code."
356	356	(b) Notice of the hearing shall be:
357	357	(1) published at least once in a newspaper having
358	358	general circulation in the district at least seven days before the
359	359	date of the hearing; or
360	360	(2) mailed to each owner of taxable property in the
361	361	district, at the address for notice shown on the most recently
362	362	certified tax roll of the district, at least 10 days before the date
363	363	of the hearing.
364	364	(c) The notice provided under this section may not be
365	365	smaller than one-quarter page of a standard-size or tabloid-size
366	366	newspaper of general circulation, and the headline on the notice
367	367	must be in 18-point or larger type.
368	368	(d) If the governing body of a district adopts a combined
369	369	debt service, operation and maintenance, and contract tax rate that
370	370	would impose more than 1.05 [1.08] times the amount of tax imposed
371	371	by the district in the preceding year on a residence homestead
372	372	appraised at the average appraised value of a residence homestead
373	373	in the district in that year, disregarding any homestead exemption
374	374	available only to disabled persons or persons 65 years of age or
375	375	older, [the qualified voters of the district by petition may
376	376	require that] an election must be held to determine whether [or not]
377	377	to ratify [reduce] the tax rate adopted for the current year [to the
378	378	rollback tax rate] in accordance with the procedures provided by
379	379	Section 26.07 [Sections 26.07(b)-(g) and 26.081], Tax Code. For
380	380	purposes of Section 26.07, Tax Code, [Sections 26.07(b)-(g)] and
381	381	this subsection, the rollback tax rate is the current year's debt
382	382	service and contract tax rates plus the operation and maintenance
383	383	tax rate that would impose 1.05 [1.08] times the amount of the
384	384	operation and maintenance tax imposed by the district in the
385	385	preceding year on a residence homestead appraised at the average
386	386	appraised value of a residence homestead in the district in that
387	387	year, disregarding any homestead exemption available only to
388	388	disabled persons or persons 65 years of age or older.
389	389	SECTION 4.07. (a) The change in law made by this article
390	390	applies to the ad valorem tax rate of a taxing unit beginning with
391	391	the 2009 tax year, except as provided by Subsection (b) of this
392	392	section.
393	393	(b) If the governing body of a taxing unit adopted an ad
394	394	valorem tax rate for the taxing unit for the 2009 tax year before
395	395	the effective date of this article, the change in law made by this
396	396	article applies to the ad valorem tax rate of that taxing unit
397	397	beginning with the 2010 tax year, and the law in effect when the tax
398	398	rate was adopted applies to the 2009 tax year with respect to that
399	399	taxing unit.
400	400	SECTION 4.08. This article takes effect immediately if this
401	401	Act receives a vote of two-thirds of all the members elected to each
402	402	house, as provided by Section 39, Article III, Texas Constitution.
403	403	If this Act does not receive the vote necessary for immediate
404	404	effect, this article takes effect on the 91st day after the last day
405	405	of the legislative session.
406	406	ARTICLE 5. ELECTRONIC PROTEST PROCEDURE
407	407	SECTION 5.01. Subchapter C, Chapter 41, Tax Code, is
408	408	amended by adding Section 41.415 to read as follows:
409	409	Sec. 41.415. ELECTRONIC FILING OF NOTICE OF PROTEST. (a)
410	410	This section applies only to an appraisal district established for
411	411	a county having a population of 500,000 or more.
412	412	(b) The appraisal district shall implement a system that
413	413	allows the owner of a property that for the current tax year has
414	414	been granted a residence homestead exemption under Section 11.13,
415	415	in connection with the property, to electronically:
416	416	(1) file a notice of protest under Section 41.41(a)(1)
417	417	or (2) with the appraisal review board;
418	418	(2) receive and review comparable sales data and other
419	419	evidence that the chief appraiser intends to use at the protest
420	420	hearing before the board;
421	421	(3) receive, as applicable:
422	422	(A) a settlement offer from the district to
423	423	correct the appraisal records by changing the appraised value of
424	424	the property to the value as redetermined by the district; or
425	425	(B) a notice from the district that a settlement
426	426	offer will not be made; and
427	427	(4) accept or reject a settlement offer received from
428	428	the appraisal district under Subdivision (3)(A).
429	429	(c) With each notice sent under Section 25.19 to an eligible
430	430	property owner, the chief appraiser shall include information about
431	431	the system required by this section, including instructions for
432	432	accessing and using the system.
433	433	(d) A notice of protest filed electronically under this
434	434	section must include, at a minimum:
435	435	(1) a statement as to whether the protest is brought
436	436	under Section 41.41(a)(1) or under Section 41.41(a)(2);
437	437	(2) a statement of the property owner's good faith
438	438	estimate of the value of the property; and
439	439	(3) an electronic mail address that the district may
440	440	use to communicate electronically with the property owner in
441	441	connection with the protest.
442	442	(e) If the property owner accepts a settlement offer made by
443	443	the appraisal district, the chief appraiser shall notify the
444	444	appraisal review board. The board shall determine the protest
445	445	accordingly and otherwise comply with Section 41.47.
446	446	(f) If the property owner rejects a settlement offer, the
447	447	appraisal review board shall hear and determine the property
448	448	owner's protest in the manner otherwise provided by this subchapter
449	449	and Subchapter D.
450	450	(g) An appraisal district is not required to make the system
451	451	required by this section available to an owner of a residence
452	452	homestead located in an area in which the chief appraiser
453	453	determines that the factors affecting the market value of real
454	454	property are unusually complex.
455	455	(h) An electronic mail address provided by a property owner
456	456	to an appraisal district under Subsection (d)(3) is confidential
457	457	and may not be disclosed by the district.
458	458	SECTION 5.02. Section 41.415, Tax Code, as added by this
459	459	article, applies only to a tax year that begins on or after the
460	460	effective date of this article.
461	461	SECTION 5.03. This article takes effect January 1, 2010.
462	462	ARTICLE 6. APPEAL TO SMALL CLAIMS COURT
463	463	SECTION 6.01. Section 41.47(e), Tax Code, is amended to
464	464	read as follows:
465	465	(e) The notice of the issuance of the order must contain a
466	466	prominently printed statement in upper-case bold lettering
467	467	informing the property owner in clear and concise language of the
468	468	property owner's right to appeal the board's decision to district
469	469	court or to small claims court if the amount of taxes in dispute is
470	470	within the jurisdiction of a small claims court. The statement must
471	471	describe the deadline prescribed by Section 42.06(a) [of this code]
472	472	for filing a written notice of appeal[,] and the deadline
473	473	prescribed by Section 42.21(a) [of this code] for filing the
474	474	petition for review with the appropriate [district] court.
475	475	SECTION 6.02. The heading to Subchapter B, Chapter 42, Tax
476	476	Code, is amended to read as follows:
477	477	SUBCHAPTER B. JUDICIAL REVIEW [BY DISTRICT COURT]
478	478	SECTION 6.03. Section 42.21(a), Tax Code, is amended to
479	479	read as follows:
480	480	(a) A party who appeals as provided by this chapter must
481	481	file a petition for review with the appropriate [district] court
482	482	within 45 days after the party received notice that a final order
483	483	has been entered from which an appeal may be had. Failure to timely
484	484	file a petition bars any appeal under this chapter.
485	485	SECTION 6.04. Subchapter B, Chapter 42, Tax Code, is
486	486	amended by adding Sections 42.211 and 42.212 to read as follows:
487	487	Sec. 42.211. JURISDICTION. (a) Except as provided by this
488	488	section, an appeal under this subchapter must be made to a district
489	489	court.
490	490	(b) A property owner may appeal an order of an appraisal
491	491	review board under Section 42.01(1) to a small claims court if the
492	492	amount of taxes due on the portion of the taxable value of the
493	493	property that is in dispute calculated using the preceding year's
494	494	tax rates is an amount that is within the jurisdiction of that small
495	495	claims court.
496	496	(c) If the small claims court determines that the appeal is
497	497	not within the court's jurisdiction, the court shall dismiss the
498	498	appeal. In that event, the property owner may appeal the order to
499	499	district court by filing a petition for review with the district
500	500	court not later than the 30th day after the date of the dismissal.
501	501	Sec. 42.212. REPRESENTATION IN SMALL CLAIMS COURT. In an
502	502	appeal brought under Section 42.01(1) to a small claims court, an
503	503	appraisal district may be, but is not required to be, represented by
504	504	legal counsel.
505	505	SECTION 6.05. Section 42.22, Tax Code, as amended by
506	506	Chapters 667 (S.B. 548) and 1033 (H.B. 301), Acts of the 73rd
507	507	Legislature, Regular Session, 1993, is reenacted and amended to
508	508	read as follows:
509	509	Sec. 42.22. VENUE. (a) Except as provided by Subsections
510	510	(b) and (c), and by Section 42.221, venue in an appeal to district
511	511	court is in the county in which the appraisal review board that
512	512	issued the order appealed is located.
513	513	(b) Venue of an action brought under Section 42.01(1) in
514	514	district court is in the county in which the property is located or
515	515	in the county in which the appraisal review board that issued the
516	516	order is located.
517	517	(c) Venue is in Travis County if the order appealed was
518	518	issued by the comptroller.
519	519	(d) Venue of an action brought under Section 42.01(1) in
520	520	small claims court is in any justice precinct in the county in which
521	521	the appraisal review board that issued the order appealed is
522	522	located.
523	523	SECTION 6.06. Section 42.23(a), Tax Code, is amended to
524	524	read as follows:
525	525	(a) Review is by trial de novo. The [district] court shall
526	526	try all issues of fact and law raised by the pleadings in the manner
527	527	applicable to civil suits generally.
528	528	SECTION 6.07. Section 42.24, Tax Code, is amended to read as
529	529	follows:
530	530	Sec. 42.24. ACTION BY COURT. In determining an appeal, the
531	531	[district] court may:
532	532	(1) fix the appraised value of property in accordance
533	533	with the requirements of law if the appraised value is at issue;
534	534	(2) enter the orders necessary to ensure equal
535	535	treatment under the law for the appealing property owner if
536	536	inequality in the appraisal of the owner's [his] property is at
537	537	issue; or
538	538	(3) enter other orders necessary to preserve rights
539	539	protected by and impose duties required by the law.
540	540	SECTION 6.08. Section 42.26(a), Tax Code, is amended to
541	541	read as follows:
542	542	(a) The [district] court shall grant relief on the ground
543	543	that a property is appraised unequally if:
544	544	(1) the appraisal ratio of the property exceeds by at
545	545	least 10 percent the median level of appraisal of a reasonable and
546	546	representative sample of other properties in the appraisal
547	547	district;
548	548	(2) the appraisal ratio of the property exceeds by at
549	549	least 10 percent the median level of appraisal of a sample of
550	550	properties in the appraisal district consisting of a reasonable
551	551	number of other properties similarly situated to, or of the same
552	552	general kind or character as, the property subject to the appeal; or
553	553	(3) the appraised value of the property exceeds the
554	554	median appraised value of a reasonable number of comparable
555	555	properties appropriately adjusted.
556	556	SECTION 6.09. Subchapter B, Chapter 42, Tax Code, is
557	557	amended by adding Section 42.27 to read as follows:
558	558	Sec. 42.27. SMALL CLAIMS COURT JUDGMENT NOT APPEALABLE.
559	559	The final judgment of a small claims court in an appeal to the small
560	560	claims court brought under Section 42.01(1) may not be appealed by
561	561	any person.
562	562	SECTION 6.10. Section 28.003, Government Code, is amended
563	563	by adding Subsection (a-1) to read as follows:
564	564	(a-1) The small claims court has jurisdiction over appeals
565	565	brought under Section 42.01(1), Tax Code, if the amount of taxes in
566	566	dispute does not exceed $5,000.
567	567	SECTION 6.11. Section 28.011, Government Code, is amended
568	568	to read as follows:
569	569	Sec. 28.011. VENUE. An action in small claims court must be
570	570	brought in the county and precinct in which the defendant resides,
571	571	except that:
572	572	(1) an action on an obligation that the defendant has
573	573	contracted to perform in a certain county may be brought in that
574	574	county; [and]
575	575	(2) an action for which venue is proper under Section
576	576	15.099, Civil Practice and Remedies Code, may be brought as
577	577	provided by that section; and
578	578	(3) an appeal brought under Section 42.01(1), Tax
579	579	Code, must be brought as provided by Section 42.22 of that code.
580	580	SECTION 6.12. The change in law made by this article applies
581	581	to the appeal of an order of an appraisal review board without
582	582	regard to whether the order was issued before the effective date of
583	583	this article.
584	584	SECTION 6.13. This article takes effect September 1, 2009.