Texas 2009 - 81st Regular

Texas House Bill HB3612 Compare Versions

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1	1	H.B. No. 3612
2	2
3	3
4	4	AN ACT
5	5	relating to the creation of a pilot program that allows taxpayer
6	6	appeals from certain appraisal review board determinations in
7	7	certain counties to be heard by the State Office of Administrative
8	8	Hearings.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 2003, Government Code, is amended by
11	11	adding Subchapter Z to read as follows:
12	12	SUBCHAPTER Z. PILOT PROGRAM: APPEALS FROM APPRAISAL REVIEW BOARD
13	13	DETERMINATIONS IN CERTAIN COUNTIES
14	14	Sec. 2003.901. PILOT PROGRAM. (a) Not later than January
15	15	1, 2010, the office shall develop a pilot program under which, as an
16	16	alternative to filing an appeal under Section 42.01, Tax Code, a
17	17	property owner may appeal to the office an appraisal review board
18	18	order determining a protest concerning the appraised or market
19	19	value of property brought under Section 41.41(a)(1) or (2), Tax
20	20	Code, if the appraised or market value, as applicable, of the
21	21	property that was the subject of the protest, as determined by the
22	22	board order, is more than $1 million.
23	23	(b) The pilot program shall be developed and implemented in
24	24	conformance with the provisions of this subchapter.
25	25	(c) So as to expeditiously determine the appeals filed with
26	26	the office using resources available to the office, the office is
27	27	not required to determine more than 3,000 appeals filed under this
28	28	subchapter. The office may develop a formula to establish the
29	29	number of appeals that may be filed in each county included in the
30	30	pilot program based on the total number of lawsuits filed in a
31	31	county to which this subchapter applies as a percentage of the total
32	32	number of lawsuits filed in all of those counties.
33	33	Sec. 2003.902. COUNTIES INCLUDED. The pilot program shall
34	34	be implemented in Bexar, Cameron, El Paso, Harris, Tarrant, and
35	35	Travis Counties for a three-year period beginning with the ad
36	36	valorem tax year that begins January 1, 2010.
37	37	Sec. 2003.903. RULES. (a) The office has rulemaking
38	38	authority to implement this subchapter.
39	39	(b) The office has specific rulemaking authority to
40	40	implement those rules necessary to expeditiously determine appeals
41	41	to the office, based on the number of appeals filed and the
42	42	resources available to the office.
43	43	(c) The office may adopt rules that include the procedural
44	44	provisions of Chapter 41, Tax Code, applicable to a hearing before
45	45	an appraisal review board.
46	46	Sec. 2003.904. APPLICABILITY TO REAL AND PERSONAL PROPERTY.
47	47	The pilot program must be applicable to a determination of the
48	48	appraised or market value made by an appraisal review board in
49	49	connection with real or personal property, other than industrial
50	50	property or minerals.
51	51	Sec. 2003.905. EDUCATION AND TRAINING OF ADMINISTRATIVE LAW
52	52	JUDGES. (a) An administrative law judge assigned to hear an appeal
53	53	brought under this subchapter must have knowledge of:
54	54	(1) each of the appraisal methods a chief appraiser
55	55	may use to determine the appraised value or the market value of
56	56	property under Chapter 23, Tax Code; and
57	57	(2) the proper method for determining an appeal of a
58	58	protest, including a protest brought on the ground of unequal
59	59	appraisal.
60	60	(b) An administrative law judge is entitled to attend one or
61	61	more training and education courses under Sections 5.04 and 5.041,
62	62	Tax Code, to receive a copy of the materials used in a course, or
63	63	both, without charge.
64	64	Sec. 2003.906. NOTICE OF APPEAL TO OFFICE. (a) To appeal
65	65	an appraisal review board order to the office under this
66	66	subchapter, a property owner must file with the chief appraiser of
67	67	the appraisal district not later than the 30th day after the date
68	68	the property owner receives notice of the order:
69	69	(1) a completed notice of appeal to the office in the
70	70	form prescribed by Section 2003.907; and
71	71	(2) a filing fee in the amount of $300, made payable to
72	72	the office.
73	73	(b) As soon as practicable after receipt of a notice of
74	74	appeal, the chief appraiser for the appraisal district shall:
75	75	(1) indicate, where appropriate, those entries in the
76	76	records that are subject to the appeal;
77	77	(2) submit the notice of appeal and filing fee to the
78	78	office; and
79	79	(3) request the appointment of a qualified
80	80	administrative law judge to hear the appeal.
81	81	Sec. 2003.907. CONTENTS OF NOTICE OF APPEAL. The chief
82	82	administrative law judge by rule shall prescribe the form of a
83	83	notice of appeal under this subchapter. The form must require the
84	84	property owner to provide:
85	85	(1) a copy of the order of the appraisal review board;
86	86	(2) a brief statement that explains the basis for the
87	87	property owner's appeal of the order; and
88	88	(3) a statement of the property owner's opinion of the
89	89	appraised or market value, as applicable, of the property that is
90	90	the subject of the appeal.
91	91	Sec. 2003.908. NOTICE TO PROPERTY OWNERS. An appraisal
92	92	review board of an appraisal district established in a county
93	93	listed in Section 2003.902 of this code that delivers notice of
94	94	issuance of an order described by Section 2003.901 of this code
95	95	pertaining to property described by Section 2003.904 of this code
96	96	and a copy of the order to a property owner as required by Section
97	97	41.47, Tax Code, shall include with the notice and copy:
98	98	(1) a notice of the property owner's rights under this
99	99	subchapter; and
100	100	(2) a copy of the notice of appeal prescribed by
101	101	Section 2003.907.
102	102	Sec. 2003.909. DESIGNATION OF ADMINISTRATIVE LAW JUDGE.
103	103	(a) As soon as practicable after the office receives a notice of
104	104	appeal and the filing fee, the office shall designate an
105	105	administrative law judge to hear the appeal.
106	106	(b) As soon as practicable after the administrative law
107	107	judge is designated, the administrative law judge shall set the
108	108	date, time, and place of the hearing on the appeal.
109	109	(c) The hearing must be held in a building or facility that
110	110	is owned or partly or entirely leased by the office and located in
111	111	the county in which the applicable appraisal district is
112	112	established, except that if the office does not own or lease a
113	113	building or facility in the county, the hearing may be held in any
114	114	public or privately owned building or facility in that county,
115	115	preferably a building or facility in which the office regularly
116	116	conducts business. The hearing may not be held in a building or
117	117	facility that is owned, leased, or under the control of the
118	118	appraisal district.
119	119	Sec. 2003.910. SCOPE OF APPEAL; HEARING. (a) An appeal is
120	120	by trial de novo. The administrative law judge may not admit into
121	121	evidence the fact of previous action by the appraisal review board,
122	122	except as otherwise provided by this subchapter.
123	123	(b) Chapter 2001 and the Texas Rules of Evidence do not
124	124	apply to a hearing under this subchapter. Prehearing discovery is
125	125	limited to the exchange of documents the parties will rely on during
126	126	the hearing. Any expert witness testimony must be reduced to
127	127	writing and included in the exchange of documents.
128	128	(c) Any relevant evidence is admissible, subject to the
129	129	imposition of reasonable time limits and the parties' compliance
130	130	with reasonable procedural requirements imposed by the
131	131	administrative law judge, including a schedule for the prehearing
132	132	exchange of documents to be relied on.
133	133	(d) An administrative law judge may consider factors such as
134	134	the hearsay nature of testimony, the qualifications of witnesses,
135	135	and other restrictions on the admissibility of evidence under the
136	136	Texas Rules of Evidence in assessing the weight to be given to the
137	137	evidence admitted.
138	138	Sec. 2003.911. REPRESENTATION OF PARTIES. (a) A property
139	139	owner may be represented at the hearing by:
140	140	(1) the property owner;
141	141	(2) an attorney who is licensed in this state;
142	142	(3) a certified public accountant;
143	143	(4) a registered property tax consultant; or
144	144	(5) any other person who is not otherwise prohibited
145	145	from appearing in a hearing held by the office.
146	146	(b) The appraisal district may be represented by the chief
147	147	appraiser or a person designated by the chief appraiser.
148	148	(c) An authorized representative of a party may appear at
149	149	the hearing to offer evidence, argument, or both, in the same manner
150	150	as provided by Section 41.45, Tax Code.
151	151	Sec. 2003.912. DETERMINATION OF ADMINISTRATIVE LAW JUDGE.
152	152	(a) As soon as practicable, but not later than the 30th day after
153	153	the date the hearing is concluded, the administrative law judge
154	154	shall issue a determination and send a copy to the property owner
155	155	and the chief appraiser.
156	156	(b) The determination:
157	157	(1) must include a determination of the appraised or
158	158	market value, as applicable, of the property that is the subject of
159	159	the appeal;
160	160	(2) must contain a brief analysis of the
161	161	administrative law judge's rationale for and set out the key
162	162	findings in support of the determination but is not required to
163	163	contain a detailed discussion of the evidence admitted or the
164	164	contentions of the parties;
165	165	(3) may include any remedy or relief a court may order
166	166	under Chapter 42, Tax Code, in an appeal relating to the appraised
167	167	or market value of property, other than an award of attorney's fees
168	168	under Section 42.29, Tax Code; and
169	169	(4) shall specify whether the appraisal district or
170	170	the property owner is required to pay the costs of the hearing and
171	171	the amount of those costs.
172	172	(c) If the administrative law judge determines that the
173	173	appraised or market value, as applicable, of the property that is
174	174	the subject of the appeal is nearer to the property owner's opinion
175	175	of the appraised or market value, as applicable, of the property as
176	176	stated in the request for the hearing submitted by the property
177	177	owner than the value determined by the appraisal review board:
178	178	(1) the office, on receipt of a copy of the
179	179	determination, shall refund the property owner's filing fee;
180	180	(2) the appraisal district, on receipt of a copy of the
181	181	determination, shall pay the costs of the appeal as specified in the
182	182	determination; and
183	183	(3) the chief appraiser shall correct the appraised or
184	184	market value, as applicable, of the property as shown in the
185	185	appraisal roll to reflect the administrative law judge's
186	186	determination.
187	187	(d) If the administrative law judge determines that the
188	188	appraised or market value, as applicable, of the property that is
189	189	the subject of the appeal is not nearer to the property owner's
190	190	opinion of the appraised or market value, as applicable, of the
191	191	property as stated in the property owner's request for a hearing
192	192	than the value determined by the appraisal review board:
193	193	(1) the office, on receipt of a copy of the
194	194	determination, shall retain the property owner's filing fee;
195	195	(2) the chief appraiser shall correct the appraised or
196	196	market value, as applicable, of the property as shown in the
197	197	appraisal roll to reflect the administrative law judge's
198	198	determination if the value as determined by the administrative law
199	199	judge is less than the value as determined by the appraisal review
200	200	board; and
201	201	(3) the property owner shall pay the difference
202	202	between the costs of the appeal as specified in the determination
203	203	and the property owner's filing fee.
204	204	(e) Notwithstanding Subsection (a), the office by rule may
205	205	implement a process under which:
206	206	(1) the administrative law judge issues a proposal for
207	207	determination to the parties;
208	208	(2) the parties are given a reasonable period in which
209	209	to make written objections to the proposal; and
210	210	(3) the administrative law judge is authorized to take
211	211	into account those written objections before issuing a final
212	212	determination.
213	213	Sec. 2003.913. PAYMENT OF TAXES PENDING APPEAL. (a) The
214	214	pendency of an appeal to the office does not affect the delinquency
215	215	date for the taxes on the property subject to the appeal. A
216	216	property owner who appeals an appraisal review board order to the
217	217	office shall pay taxes on the property subject to the appeal in an
218	218	amount equal to the amount of taxes due on the portion of the
219	219	taxable value of the property that is not in dispute. If the final
220	220	determination of the appeal decreases the property owner's tax
221	221	liability to an amount less than the amount of taxes paid, each
222	222	taxing unit shall refund to the property owner the difference
223	223	between the amount of taxes paid and the amount of taxes for which
224	224	the property owner is liable.
225	225	(b) A property owner may not appeal to the office if the
226	226	taxes on the property subject to the appeal are delinquent. An
227	227	administrative law judge who determines that the taxes on the
228	228	property subject to an appeal are delinquent shall dismiss the
229	229	pending appeal with prejudice. If an appeal is dismissed under
230	230	this subsection, the office shall retain the property owner's
231	231	filing fee.
232	232	Sec. 2003.914. EFFECT ON RIGHT TO JUDICIAL APPEAL. An
233	233	appeal to the office under this subchapter is an election of
234	234	remedies and an alternative to bringing an appeal under Section
235	235	42.01, Tax Code.
236	236	Sec. 2003.915. REPORT TO LEGISLATURE. Not later than
237	237	January 1, 2013, the office and the chief appraisers of the
238	238	appraisal districts established in the counties in which the pilot
239	239	program is implemented shall submit a report to the legislature
240	240	that includes:
241	241	(1) the number of appeals for property in each
242	242	appraisal district;
243	243	(2) the number of appeals that were settled before
244	244	being heard by an administrative law judge;
245	245	(3) the number of appeals brought on the ground of
246	246	excessive appraisal;
247	247	(4) the number of appeals brought on the ground of
248	248	unequal appraisal;
249	249	(5) the number of judicial appeals of an
250	250	administrative law judge's determination for each appraisal
251	251	district; and
252	252	(6) any recommendations for future legislative action
253	253	that the office or the chief appraisers consider appropriate.
254	254	Sec. 2003.916. EXPIRATION. This subchapter expires January
255	255	1, 2013.
256	256	SECTION 2. This Act applies only to an ad valorem tax year
257	257	that begins on or after the effective date of this Act.
258	258	SECTION 3. This Act takes effect January 1, 2010.
259	259	______________________________ ______________________________
260	260	President of the Senate Speaker of the House
261	261	I certify that H.B. No. 3612 was passed by the House on April
262	262	28, 2009, by the following vote: Yeas 148, Nays 0, 1 present, not
263	263	voting; that the House refused to concur in Senate amendments to
264	264	H.B. No. 3612 on May 29, 2009, and requested the appointment of a
265	265	conference committee to consider the differences between the two
266	266	houses; and that the House adopted the conference committee report
267	267	on H.B. No. 3612 on May 31, 2009, by the following vote: Yeas 135,
268	268	Nays 0, 3 present, not voting.
269	269	______________________________
270	270	Chief Clerk of the House
271	271	I certify that H.B. No. 3612 was passed by the Senate, with
272	272	amendments, on May 25, 2009, by the following vote: Yeas 30, Nays
273	273	1; at the request of the House, the Senate appointed a conference
274	274	committee to consider the differences between the two houses; and
275	275	that the Senate adopted the conference committee report on H.B. No.
276	276	3612 on May 31, 2009, by the following vote: Yeas 30, Nays 1.
277	277	______________________________
278	278	Secretary of the Senate
279	279	APPROVED: __________________
280	280	Date
281	281	__________________
282	282	Governor