H.B. No. 3612
AN ACT
relating to the creation of a pilot program that allows taxpayer
appeals from certain appraisal review board determinations in
certain counties to be heard by the State Office of Administrative
Hearings.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2003, Government Code, is amended by
adding Subchapter Z to read as follows:
SUBCHAPTER Z. PILOT PROGRAM: APPEALS FROM APPRAISAL REVIEW BOARD
DETERMINATIONS IN CERTAIN COUNTIES
Sec. 2003.901. PILOT PROGRAM. (a) Not later than January
1, 2010, the office shall develop a pilot program under which, as an
alternative to filing an appeal under Section 42.01, Tax Code, a
property owner may appeal to the office an appraisal review board
order determining a protest concerning the appraised or market
value of property brought under Section 41.41(a)(1) or (2), Tax
Code, if the appraised or market value, as applicable, of the
property that was the subject of the protest, as determined by the
board order, is more than $1 million.
(b) The pilot program shall be developed and implemented in
conformance with the provisions of this subchapter.
(c) So as to expeditiously determine the appeals filed with
the office using resources available to the office, the office is
not required to determine more than 3,000 appeals filed under this
subchapter. The office may develop a formula to establish the
number of appeals that may be filed in each county included in the
pilot program based on the total number of lawsuits filed in a
county to which this subchapter applies as a percentage of the total
number of lawsuits filed in all of those counties.
Sec. 2003.902. COUNTIES INCLUDED. The pilot program shall
be implemented in Bexar, Cameron, El Paso, Harris, Tarrant, and
Travis Counties for a three-year period beginning with the ad
valorem tax year that begins January 1, 2010.
Sec. 2003.903. RULES. (a) The office has rulemaking
authority to implement this subchapter.
(b) The office has specific rulemaking authority to
implement those rules necessary to expeditiously determine appeals
to the office, based on the number of appeals filed and the
resources available to the office.
(c) The office may adopt rules that include the procedural
provisions of Chapter 41, Tax Code, applicable to a hearing before
an appraisal review board.
Sec. 2003.904. APPLICABILITY TO REAL AND PERSONAL PROPERTY.
The pilot program must be applicable to a determination of the
appraised or market value made by an appraisal review board in
connection with real or personal property, other than industrial
property or minerals.
Sec. 2003.905. EDUCATION AND TRAINING OF ADMINISTRATIVE LAW
JUDGES. (a) An administrative law judge assigned to hear an appeal
brought under this subchapter must have knowledge of:
(1) each of the appraisal methods a chief appraiser
may use to determine the appraised value or the market value of
property under Chapter 23, Tax Code; and
(2) the proper method for determining an appeal of a
protest, including a protest brought on the ground of unequal
appraisal.
(b) An administrative law judge is entitled to attend one or
more training and education courses under Sections 5.04 and 5.041,
Tax Code, to receive a copy of the materials used in a course, or
both, without charge.
Sec. 2003.906. NOTICE OF APPEAL TO OFFICE. (a) To appeal
an appraisal review board order to the office under this
subchapter, a property owner must file with the chief appraiser of
the appraisal district not later than the 30th day after the date
the property owner receives notice of the order:
(1) a completed notice of appeal to the office in the
form prescribed by Section 2003.907; and
(2) a filing fee in the amount of $300, made payable to
the office.
(b) As soon as practicable after receipt of a notice of
appeal, the chief appraiser for the appraisal district shall:
(1) indicate, where appropriate, those entries in the
records that are subject to the appeal;
(2) submit the notice of appeal and filing fee to the
office; and
(3) request the appointment of a qualified
administrative law judge to hear the appeal.
Sec. 2003.907. CONTENTS OF NOTICE OF APPEAL. The chief
administrative law judge by rule shall prescribe the form of a
notice of appeal under this subchapter. The form must require the
property owner to provide:
(1) a copy of the order of the appraisal review board;
(2) a brief statement that explains the basis for the
property owner's appeal of the order; and
(3) a statement of the property owner's opinion of the
appraised or market value, as applicable, of the property that is
the subject of the appeal.
Sec. 2003.908. NOTICE TO PROPERTY OWNERS. An appraisal
review board of an appraisal district established in a county
listed in Section 2003.902 of this code that delivers notice of
issuance of an order described by Section 2003.901 of this code
pertaining to property described by Section 2003.904 of this code
and a copy of the order to a property owner as required by Section
41.47, Tax Code, shall include with the notice and copy:
(1) a notice of the property owner's rights under this
subchapter; and
(2) a copy of the notice of appeal prescribed by
Section 2003.907.
Sec. 2003.909. DESIGNATION OF ADMINISTRATIVE LAW JUDGE.
(a) As soon as practicable after the office receives a notice of
appeal and the filing fee, the office shall designate an
administrative law judge to hear the appeal.
(b) As soon as practicable after the administrative law
judge is designated, the administrative law judge shall set the
date, time, and place of the hearing on the appeal.
(c) The hearing must be held in a building or facility that
is owned or partly or entirely leased by the office and located in
the county in which the applicable appraisal district is
established, except that if the office does not own or lease a
building or facility in the county, the hearing may be held in any
public or privately owned building or facility in that county,
preferably a building or facility in which the office regularly
conducts business. The hearing may not be held in a building or
facility that is owned, leased, or under the control of the
appraisal district.
Sec. 2003.910. SCOPE OF APPEAL; HEARING. (a) An appeal is
by trial de novo. The administrative law judge may not admit into
evidence the fact of previous action by the appraisal review board,
except as otherwise provided by this subchapter.
(b) Chapter 2001 and the Texas Rules of Evidence do not
apply to a hearing under this subchapter. Prehearing discovery is
limited to the exchange of documents the parties will rely on during
the hearing. Any expert witness testimony must be reduced to
writing and included in the exchange of documents.
(c) Any relevant evidence is admissible, subject to the
imposition of reasonable time limits and the parties' compliance
with reasonable procedural requirements imposed by the
administrative law judge, including a schedule for the prehearing
exchange of documents to be relied on.
(d) An administrative law judge may consider factors such as
the hearsay nature of testimony, the qualifications of witnesses,
and other restrictions on the admissibility of evidence under the
Texas Rules of Evidence in assessing the weight to be given to the
evidence admitted.
Sec. 2003.911. REPRESENTATION OF PARTIES. (a) A property
owner may be represented at the hearing by:
(1) the property owner;
(2) an attorney who is licensed in this state;
(3) a certified public accountant;
(4) a registered property tax consultant; or
(5) any other person who is not otherwise prohibited
from appearing in a hearing held by the office.
(b) The appraisal district may be represented by the chief
appraiser or a person designated by the chief appraiser.
(c) An authorized representative of a party may appear at
the hearing to offer evidence, argument, or both, in the same manner
as provided by Section 41.45, Tax Code.
Sec. 2003.912. DETERMINATION OF ADMINISTRATIVE LAW JUDGE.
(a) As soon as practicable, but not later than the 30th day after
the date the hearing is concluded, the administrative law judge
shall issue a determination and send a copy to the property owner
and the chief appraiser.
(b) The determination:
(1) must include a determination of the appraised or
market value, as applicable, of the property that is the subject of
the appeal;
(2) must contain a brief analysis of the
administrative law judge's rationale for and set out the key
findings in support of the determination but is not required to
contain a detailed discussion of the evidence admitted or the
contentions of the parties;
(3) may include any remedy or relief a court may order
under Chapter 42, Tax Code, in an appeal relating to the appraised
or market value of property, other than an award of attorney's fees
under Section 42.29, Tax Code; and
(4) shall specify whether the appraisal district or
the property owner is required to pay the costs of the hearing and
the amount of those costs.
(c) If the administrative law judge determines that the
appraised or market value, as applicable, of the property that is
the subject of the appeal is nearer to the property owner's opinion
of the appraised or market value, as applicable, of the property as
stated in the request for the hearing submitted by the property
owner than the value determined by the appraisal review board:
(1) the office, on receipt of a copy of the
determination, shall refund the property owner's filing fee;
(2) the appraisal district, on receipt of a copy of the
determination, shall pay the costs of the appeal as specified in the
determination; and
(3) the chief appraiser shall correct the appraised or
market value, as applicable, of the property as shown in the
appraisal roll to reflect the administrative law judge's
determination.
(d) If the administrative law judge determines that the
appraised or market value, as applicable, of the property that is
the subject of the appeal is not nearer to the property owner's
opinion of the appraised or market value, as applicable, of the
property as stated in the property owner's request for a hearing
than the value determined by the appraisal review board:
(1) the office, on receipt of a copy of the
determination, shall retain the property owner's filing fee;
(2) the chief appraiser shall correct the appraised or
market value, as applicable, of the property as shown in the
appraisal roll to reflect the administrative law judge's
determination if the value as determined by the administrative law
judge is less than the value as determined by the appraisal review
board; and
(3) the property owner shall pay the difference
between the costs of the appeal as specified in the determination
and the property owner's filing fee.
(e) Notwithstanding Subsection (a), the office by rule may
implement a process under which:
(1) the administrative law judge issues a proposal for
determination to the parties;
(2) the parties are given a reasonable period in which
to make written objections to the proposal; and
(3) the administrative law judge is authorized to take
into account those written objections before issuing a final
determination.
Sec. 2003.913. PAYMENT OF TAXES PENDING APPEAL. (a) The
pendency of an appeal to the office does not affect the delinquency
date for the taxes on the property subject to the appeal. A
property owner who appeals an appraisal review board order to the
office shall pay taxes on the property subject to the appeal in an
amount equal to the amount of taxes due on the portion of the
taxable value of the property that is not in dispute. If the final
determination of the appeal decreases the property owner's tax
liability to an amount less than the amount of taxes paid, each
taxing unit shall refund to the property owner the difference
between the amount of taxes paid and the amount of taxes for which
the property owner is liable.
(b) A property owner may not appeal to the office if the
taxes on the property subject to the appeal are delinquent. An
administrative law judge who determines that the taxes on the
property subject to an appeal are delinquent shall dismiss the
pending appeal with prejudice. If an appeal is dismissed under
this subsection, the office shall retain the property owner's
filing fee.
Sec. 2003.914. EFFECT ON RIGHT TO JUDICIAL APPEAL. An
appeal to the office under this subchapter is an election of
remedies and an alternative to bringing an appeal under Section
42.01, Tax Code.
Sec. 2003.915. REPORT TO LEGISLATURE. Not later than
January 1, 2013, the office and the chief appraisers of the
appraisal districts established in the counties in which the pilot
program is implemented shall submit a report to the legislature
that includes:
(1) the number of appeals for property in each
appraisal district;
(2) the number of appeals that were settled before
being heard by an administrative law judge;
(3) the number of appeals brought on the ground of
excessive appraisal;
(4) the number of appeals brought on the ground of
unequal appraisal;
(5) the number of judicial appeals of an
administrative law judge's determination for each appraisal
district; and
(6) any recommendations for future legislative action
that the office or the chief appraisers consider appropriate.
Sec. 2003.916. EXPIRATION. This subchapter expires January
1, 2013.
SECTION 2. This Act applies only to an ad valorem tax year
that begins on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2010.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3612 was passed by the House on April
28, 2009, by the following vote: Yeas 148, Nays 0, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 3612 on May 29, 2009, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 3612 on May 31, 2009, by the following vote: Yeas 135,
Nays 0, 3 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3612 was passed by the Senate, with
amendments, on May 25, 2009, by the following vote: Yeas 30, Nays
1; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
3612 on May 31, 2009, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor