By: Merritt H.B. No. 4038
A BILL TO BE ENTITLED
AN ACT
relating to the system for appraising property for ad valorem tax
purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 5.102(c) and (d), Tax Code, are amended
to read as follows:
(c) If the review results in a finding that an appraisal
district is not in compliance with generally accepted appraisal
standards and practices, the comptroller shall deliver a report
that details the comptroller's findings and recommendations for
improvement to:
(1) the county assessor-collector who governs the
appraisal district [district's chief appraiser and board of
directors]; and
(2) the superintendent and board of trustees of each
school district participating in the appraisal district.
(d) If the appraisal district fails to comply with the
recommendations in the report and the comptroller finds that the
county assessor-collector who governs [board of directors of] the
appraisal district failed to take remedial action before the first
anniversary of the date the report was issued, the comptroller
shall notify the judge of each district court in the county for
which the appraisal district is established, who shall appoint a
board of conservators consisting of five members to implement the
recommendations. The board of conservators shall exercise
supervision and control over the operations of the appraisal
district until the comptroller determines under Section 403.302,
Government Code, that in the same year the taxable value of each
school district for which the appraisal district appraises property
is the local value for the school district. The appraisal district
shall bear the costs related to the supervision and control of the
district by the board of conservators.
SECTION 2. Sections 5.12(b) and (h), Tax Code, are amended
to read as follows:
(b) At the written request of the governing bodies of a
majority of the taxing units participating in an appraisal district
or of a majority of the group of taxing units composed of the
municipalities, school districts, and county participating in an
[entitled to vote on the appointment of] appraisal district
[directors], the comptroller shall audit the performance of the
appraisal district. The governing bodies may request a general
audit of the performance of the appraisal district or may request an
audit of only one or more particular duties, practices, functions,
departments, or other appraisal district matters.
(h) In addition to the performance audits required by
Subsections (a), (b), and (c) and the review of appraisal standards
required by Section 5.102, the comptroller may audit an appraisal
district to analyze the effectiveness and efficiency of the
policies, management, and operations of the appraisal district.
The results of the audit shall be delivered in a report that details
the comptroller's findings and recommendations for improvement to
the county assessor-collector who governs the appraisal district
[district's chief appraiser and board of directors] and the
governing body of each taxing unit participating in the appraisal
district. The comptroller may require reimbursement by the
appraisal district for some or all of the costs of the audit, not to
exceed the actual costs associated with conducting the audit.
SECTION 3. Sections 5.13(c), (f), and (h), Tax Code, are
amended to read as follows:
(c) The comptroller must approve the specific plan for the
performance audit of an appraisal district. Before approving an
audit plan, the comptroller must provide any interested person an
opportunity to appear before the comptroller and to comment on the
proposed plan. Not later than the 20th day before the date the
comptroller considers the plan for an appraisal district
performance audit, the comptroller must notify the county
assessor-collector who governs [presiding officer of] the
appraisal district [board of directors] that the comptroller
intends to consider the plan. The notice must include the time,
date, and place of the meeting to consider the plan. [Immediately
after receiving the notice, the presiding officer shall deliver a
copy of the notice to the other members of the appraisal district
board of directors.]
(f) The comptroller shall report the results of its audit in
writing to the governing body of each taxing unit that participates
in the appraisal district and[,] to the county assessor-collector
who governs [chief appraiser, and to the presiding officer of] the
appraisal district [board of directors]. If the audit was
requested under Section 5.12(c) [of this code], the comptroller
shall also provide a report to a representative of the property
owners who requested the audit.
(h) At any time after the request for an audit is made, the
comptroller may discontinue the audit in whole or in part if
requested to do so by:
(1) the governing bodies of a majority of the taxing
units participating in the district, if the audit was requested by a
majority of those units;
(2) the governing bodies of a majority of the group of
taxing units composed of the municipalities, school districts, and
county participating in the [entitled to vote on the appointment
of] appraisal district [directors], if the audit was requested by a
majority of those units; or
(3) if the audit was requested under Section 5.12(c)
[of this code], by the taxpayers who requested the audit.
SECTION 4. Section 6.02(b), Tax Code, is amended to read as
follows:
(b) This section does not preclude the county
assessor-collectors who govern [board of directors of] two or more
adjoining appraisal districts from providing for the operation of a
consolidated appraisal district by interlocal contract.
SECTION 5. Section 6.03, Tax Code, is amended to read as
follows:
Sec. 6.03. GOVERNANCE [BOARD] OF APPRAISAL DISTRICTS
[DIRECTORS]. (a) An [The] appraisal district is governed by the
assessor-collector of the county for which the district is
established as part of the duties of the office.
(b) The county assessor-collector is entitled to
compensation for administering the appraisal district as provided
by the appraisal district budget. [a board of directors. Five
directors are appointed by the taxing units that participate in the
district as provided by this section. If the county
assessor-collector is not appointed to the board, the county
assessor-collector serves as a nonvoting director. The county
assessor-collector is ineligible to serve if the board enters into
a contract under Section 6.05(b) or if the commissioners court of
the county enters into a contract under Section 6.24(b). To be
eligible to serve on the board of directors, an individual other
than a county assessor-collector serving as a nonvoting director
must be a resident of the district and must have resided in the
district for at least two years immediately preceding the date the
individual takes office. An individual who is otherwise eligible
to serve on the board is not ineligible because of membership on the
governing body of a taxing unit. An employee of a taxing unit that
participates in the district is not eligible to serve on the board
unless the individual is also a member of the governing body or an
elected official of a taxing unit that participates in the
district.
[(b) Members of the board of directors other than a county
assessor-collector serving as a nonvoting director serve two-year
terms beginning on January 1 of even-numbered years.
[(c) Members of the board of directors other than a county
assessor-collector serving as a nonvoting director are appointed by
vote of the governing bodies of the incorporated cities and towns,
the school districts, and, if entitled to vote, the conservation
and reclamation districts that participate in the district and of
the county. A governing body may cast all its votes for one
candidate or distribute them among candidates for any number of
directorships. Conservation and reclamation districts are not
entitled to vote unless at least one conservation and reclamation
district in the district delivers to the chief appraiser a written
request to nominate and vote on the board of directors by June 1 of
each odd-numbered year. On receipt of a request, the chief
appraiser shall certify a list by June 15 of all eligible
conservation and reclamation districts that are imposing taxes and
that participate in the district.
[(d) The voting entitlement of a taxing unit that is
entitled to vote for directors is determined by dividing the total
dollar amount of property taxes imposed in the district by the
taxing unit for the preceding tax year by the sum of the total
dollar amount of property taxes imposed in the district for that
year by each taxing unit that is entitled to vote, by multiplying
the quotient by 1,000, and by rounding the product to the nearest
whole number. That number is multiplied by the number of
directorships to be filled. A taxing unit participating in two or
more districts is entitled to vote in each district in which it
participates, but only the taxes imposed in a district are used to
calculate voting entitlement in that district.
[(e) The chief appraiser shall calculate the number of votes
to which each taxing unit other than a conservation and reclamation
district is entitled and shall deliver written notice to each of
those units of its voting entitlement before October 1 of each
odd-numbered year. The chief appraiser shall deliver the notice:
[(1) to the county judge and each commissioner of the
county served by the appraisal district;
[(2) to the presiding officer of the governing body of
each city or town participating in the appraisal district, to the
city manager of each city or town having a city manager, and to the
city secretary or clerk, if there is one, of each city or town that
does not have a city manager; and
[(3) to the presiding officer of the governing body of
each school district participating in the district and to the
superintendent of those school districts.
[(f) The chief appraiser shall calculate the number of votes
to which each conservation and reclamation district entitled to
vote for district directors is entitled and shall deliver written
notice to the presiding officer of each conservation and
reclamation district of its voting entitlement and right to
nominate a person to serve as a director of the district before July
1 of each odd-numbered year.
[(g) Each taxing unit other than a conservation and
reclamation district that is entitled to vote may nominate by
resolution adopted by its governing body one candidate for each
position to be filled on the board of directors. The presiding
officer of the governing body of the unit shall submit the names of
the unit's nominees to the chief appraiser before October 15.
[(h) Each conservation and reclamation district entitled to
vote may nominate by resolution adopted by its governing body one
candidate for the district's board of directors. The presiding
officer of the conservation and reclamation district's governing
body shall submit the name of the district's nominee to the chief
appraiser before July 15 of each odd-numbered year. Before August
1, the chief appraiser shall prepare a nominating ballot, listing
all the nominees of conservation and reclamation districts
alphabetically by surname, and shall deliver a copy of the
nominating ballot to the presiding officer of the board of
directors of each district. The board of directors of each district
shall determine its vote by resolution and submit it to the chief
appraiser before August 15. The nominee on the ballot with the most
votes is the nominee of the conservation and reclamation districts
in the appraisal district if the nominee received more than 10
percent of the votes entitled to be cast by all of the conservation
and reclamation districts in the appraisal district, and shall be
named on the ballot with the candidates nominated by the other
taxing units. The chief appraiser shall resolve a tie vote by any
method of chance.
[(i) If no nominee of the conservation and reclamation
districts receives more than 10 percent of the votes entitled to be
cast under Subsection (h), the chief appraiser, before September 1,
shall notify the presiding officer of the board of directors of each
conservation and reclamation district of the failure to select a
nominee. Each conservation and reclamation district may submit a
nominee by September 15 to the chief appraiser as provided by
Subsection (h). The chief appraiser shall submit a second
nominating ballot by October 1 to the conservation and reclamation
districts as provided by Subsection (h). The conservation and
reclamation districts shall submit their votes for nomination
before October 15 as provided by Subsection (h). The nominee on the
second nominating ballot with the most votes is the nominee of the
conservation and reclamation districts in the appraisal district
and shall be named on the ballot with the candidates nominated by
the other taxing units. The chief appraiser shall resolve a tie
vote by any method of chance.
[(j) Before October 30, the chief appraiser shall prepare a
ballot, listing the candidates whose names were timely submitted
under Subsections (g) and, if applicable, (h) or (i) alphabetically
according to the first letter in each candidate's surname, and
shall deliver a copy of the ballot to the presiding officer of the
governing body of each taxing unit that is entitled to vote.
[(k) The governing body of each taxing unit entitled to vote
shall determine its vote by resolution and submit it to the chief
appraiser before December 15. The chief appraiser shall count the
votes, declare the five candidates who receive the largest
cumulative vote totals elected, and submit the results before
December 31 to the governing body of each taxing unit in the
district and to the candidates. For purposes of determining the
number of votes received by the candidates, the candidate receiving
the most votes of the conservation and reclamation districts is
considered to have received all of the votes cast by conservation
and reclamation districts and the other candidates are considered
not to have received any votes of the conservation and reclamation
districts. The chief appraiser shall resolve a tie vote by any
method of chance.
[(l) If a vacancy occurs on the board of directors other
than a vacancy in the position held by a county assessor-collector
serving as a nonvoting director, each taxing unit that is entitled
to vote by this section may nominate by resolution adopted by its
governing body a candidate to fill the vacancy. The unit shall
submit the name of its nominee to the chief appraiser within 45 days
after notification from the board of directors of the existence of
the vacancy, and the chief appraiser shall prepare and deliver to
the board of directors within the next five days a list of the
nominees. The board of directors shall elect by majority vote of
its members one of the nominees to fill the vacancy.]
SECTION 6. Sections 6.035(a) and (b), Tax Code, are amended
to read as follows:
(a) An individual is [ineligible to serve on an appraisal
district board of directors and is] disqualified from employment as
chief appraiser if the individual:
(1) is related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an individual who is engaged in the business of
appraising property for compensation for use in proceedings under
this title or of representing property owners for compensation in
proceedings under this title in the appraisal district; or
(2) owns property on which delinquent taxes have been
owed to a taxing unit for more than 60 days after the date the
individual knew or should have known of the delinquency unless:
(A) the delinquent taxes and any penalties and
interest are being paid under an installment payment agreement
under Section 33.02; or
(B) a suit to collect the delinquent taxes is
deferred or abated under Section 33.06 or 33.065.
(b) A [member of an appraisal district board of directors or
a] chief appraiser commits an offense if the [board member
continues to hold office or the] chief appraiser remains employed
knowing that an individual related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to the [board member or] chief appraiser is
engaged in the business of appraising property for compensation for
use in proceedings under this title or of representing property
owners for compensation in proceedings under this title in the
appraisal district in which the [member serves or the] chief
appraiser is employed. An offense under this subsection is a Class
B misdemeanor.
SECTION 7. Sections 6.05 and 6.051, Tax Code, are amended to
read as follows:
Sec. 6.05. APPRAISAL OFFICE; CHIEF APPRAISER. (a) Except
as authorized by Subsection (b) [of this section], each appraisal
district shall establish an appraisal office. The appraisal office
must be located in the county for which the district is established.
An appraisal district may establish branch appraisal offices
outside the county for which the district is established.
(b) The county assessor-collector who governs [board of
directors of] an appraisal district may contract with an appraisal
office in another district or with a taxing unit in the district to
perform the duties of the appraisal office for the district.
(c) The county assessor-collector may serve as the chief
appraiser for the appraisal district or may appoint another person
to serve as the chief appraiser.
(d) A county assessor-collector who appoints another person
to serve ad the chief appraiser shall notify the comptroller and
each taxing unit that participates in the appraisal district of
that appointment.
(e) An appointed chief appraiser serves at the pleasure of
the county assessor-collector and acts on behalf of the county
assessor-collector on all matters delegated to the appointed chief
appraiser by the county assessor-collector.
(f) The chief appraiser is the chief administrator of the
appraisal office.
(g) An appointed [The chief appraiser is appointed by and
serves at the pleasure of the appraisal district board of
directors. If a taxing unit performs the duties of the appraisal
office pursuant to a contract, the assessor for the unit is the
chief appraiser.
[(d) The] chief appraiser is entitled to compensation as
provided by the appraisal district budget for performing duties
delegated to the appointed chief appraiser by the county
assessor-collector [adopted by the board of directors]. The chief
appraiser's compensation may not be directly or indirectly linked
to an increase in the total market, appraised, or taxable value of
property in the appraisal district.
(h) The chief appraiser may employ and compensate
professional, clerical, and other personnel as provided by the
budget.
[(e)] The chief appraiser may delegate authority to the
chief appraiser's [his] employees.
(i) The county assessor-collector may not appoint a person
to serve as the chief appraiser if the person is related to the
county assessor-collector within the second degree by affinity or
within the third degree by consanguinity, as determined under
Chapter 573, Government Code. An appointed [(f) The] chief
appraiser may not employ any individual related to the county
assessor-collector [a member of the board of directors] within the
second degree by affinity or within the third degree by
consanguinity, as determined under Chapter 573, Government Code. A
person commits an offense if the person intentionally or knowingly
violates this subsection. An offense under this subsection is a
misdemeanor punishable by a fine of not less than $100 or more than
$1,000.
(j) [(g)] The chief appraiser is an officer of the appraisal
district for purposes of the nepotism law, Chapter 573, Government
Code. An appraisal district may not employ or contract with an
individual or the spouse of an individual who is related to the
chief appraiser within the first degree by consanguinity or
affinity, as determined under Chapter 573, Government Code.
(k) A county assessor-collector who apoints another person
to serve as the chief appraiser [(h) The board of directors of an
appraisal district by resolution] may prescribe that specified
actions of the chief appraiser relating to the finances or
administration of the appraisal district are subject to the
approval of the county assessor-collector [board].
(l) [(i)] To ensure adherence with generally accepted
appraisal practices, the county assessor-collector [board of
directors of an appraisal district] shall develop biennially a
written plan for the periodic reappraisal of all property within
the boundaries of the district according to the requirements of
Section 25.18 and shall hold a public hearing to consider the
proposed plan. Not later than the 10th day before the date of the
hearing, the county assessor-collector [secretary of the board]
shall deliver to the presiding officer of the governing body of each
taxing unit participating in the district a written notice of the
date, time, and place for the hearing. Not later than September 15
of each even-numbered year, the county assessor-collector [board]
shall hold the hearing [complete its hearings], make any
amendments, and [by resolution] finally approve the plan. Copies
of the approved plan shall be distributed to the presiding officer
of the governing body of each taxing unit participating in the
district and to the comptroller within 60 days of the approval date.
Sec. 6.051. OWNERSHIP OR LEASE OF REAL PROPERTY. (a) The
county assessor-collector who governs [board of directors of] an
appraisal district may purchase or lease real property and may
construct improvements as necessary to establish and operate the
appraisal office or a branch appraisal office.
(b) The acquisition or conveyance of real property or the
construction or renovation of a building or other improvement by an
appraisal district must be approved by the governing bodies of
three-fourths of the group of taxing units composed of the
municipalities, school districts, and county participating in the
appraisal district [entitled to vote on the appointment of board
members]. The county assessor-collector [board of directors by
resolution] may propose a property transaction or other action for
which this subsection requires approval of the taxing units. The
county assessor-collector [chief appraiser] shall notify the
presiding officer of each governing body entitled to vote on the
approval of the proposal by delivering a copy of the proposal
[board's resolution], together with information showing the costs
of other available alternatives to the proposal. On or before the
30th day after the date the presiding officer receives notice of the
proposal, the governing body of a taxing unit by resolution may
approve or disapprove the proposal. If a governing body fails to
act on or before that 30th day or fails to file its resolution with
the county assessor-collector [chief appraiser] on or before the
10th day after that 30th day, the proposal is treated as if it were
disapproved by the governing body.
(c) The county assessor-collector [board of directors] may
convey real property owned by the district, and the proceeds shall
be credited to each taxing unit that participates in the district in
proportion to the unit's allocation of the appraisal district
budget in the year in which the transaction occurs. A conveyance
must be approved as provided by Subsection (b) [of this section],
and any proceeds shall be apportioned by an amendment to the annual
budget made as provided by Section 6.06(c) [Subsection (c) of
Section 6.06 of this code].
[(d) An acquisition of real property by an appraisal
district before January 1, 1988, may be validated before March 1,
1988, in the manner provided by Subsection (b) of this section for
the acquisition of real property.]
SECTION 8. Section 6.06, Tax Code, is amended by amending
Subsections (a) through (d) and (f) through (k) and adding
Subsection (1) to read as follows:
(a) Each year the county assessor-collector [chief
appraiser] shall prepare a proposed budget for the operations of
the district for the following tax year and shall submit copies to
each taxing unit participating in the district [and to the district
board of directors] before June 15. The county assessor-collector
[He] shall include in the budget a list showing each proposed
position, the proposed salary for the position, all benefits
proposed for the position, each proposed capital expenditure, and
an estimate of the amount of the budget that will be allocated to
each taxing unit. Each taxing unit [entitled to vote on the
appointment of board members] shall maintain a copy of the proposed
budget for public inspection at its principal administrative
office.
(b) The county assessor-collector [board of directors]
shall hold a public hearing to consider the budget. The county
assessor-collector [secretary of the board] shall deliver to the
presiding officer of the governing body of each taxing unit
participating in the district not later than the 10th day before the
date of the hearing a written notice of the date, time, and place
fixed for the hearing. The county assessor-collector [board] shall
complete the [its] hearings, make necessary [any] amendments to the
proposed budget [it desires], and finally approve a budget before
September 15. If governing bodies of a majority of the group of
taxing units composed of the municipalities, school districts, and
county participating in the appraisal district [taxing units
entitled to vote on the appointment of board members] adopt
resolutions disapproving a budget and file them with the county
assessor-collector [secretary of the board] within 30 days after
its adoption, the budget does not take effect, and the county
assessor-collector [board] shall adopt a new budget within 30 days
of the disapproval.
(c) The county assessor-collector [board] may amend the
approved budget at any time, but [the secretary of the board] must
deliver a written copy of a proposed amendment to the presiding
officer of the governing body of each taxing unit participating in
the district not later than the 30th day before the date the county
assessor-collector approves the amendment [board acts on it].
(d) Each taxing unit participating in the district is
allocated a portion of the amount of the budget equal to the
proportion that the total taxable value [dollar amount] of property
located [taxes imposed] in the unit [district by the unit] for the
tax year in which the budget proposal is prepared bears to the sum
of the total taxable value [dollar amount] of property located
[taxes imposed] in each participating unit [the district by each
participating unit] for that year. For purposes of this
subsection, the taxable value for each taxing unit is determined
separately, without regard to the inclusion of the same property in
the determination of the taxable value for other taxing units. If a
taxing unit participates in two or more districts, only the taxable
value of property appraised for the unit by [taxes imposed in] a
district is [are] used to calculate the unit's cost allocations in
that district. If the number of real property parcels in a taxing
unit is less than 5 percent of the total number of real property
parcels in the district and the total taxable value of property
located in the taxing unit exceeds [imposes in excess of] 25 percent
of the sum of the total taxable value of property in each
participating taxing unit [total amount of the property taxes
imposed in the district by all of the participating taxing units]
for a year, the unit's allocation may not exceed a percentage of the
appraisal district's budget equal to three times the unit's
percentage of the total number of real property parcels appraised
by the district.
(f) Payments shall be made to a depository designated by the
county assessor-collector [district board of directors]. The
district's funds may be disbursed only by a written check, draft, or
order signed by the county assessor-collector [chairman and
secretary of the board or, if authorized by resolution of the board,
by the chief appraiser].
(g) If a taxing unit decides not to impose taxes for any tax
year, the unit is not liable for any of the costs of operating the
district in that year, and those costs are allocated among the other
taxing units [as if that unit had not imposed taxes in the year used
to calculate allocations]. However, if that unit has made any
payments, it is not entitled to a refund.
(h) If a newly formed taxing unit or a taxing unit that did
not impose taxes in the preceding year imposes taxes in any tax
year, that unit is allocated a portion of the amount budgeted to
operate the district. The total taxable value for the current year
of property in the unit and appraised for the unit by the district
[as if it had imposed taxes in the preceding year, except that the
amount of taxes the unit imposes in the current year] is used to
calculate its allocation. Before the total taxable value for the
current year of property in the unit and appraised for the unit by
the district [amount of taxes to be imposed for the current year] is
known, the allocation may be based on an estimate to which the
county assessor-collector [district board of directors] and the
governing body of the unit agree, and the payments made after that
amount is known shall be adjusted to reflect the actual amount
[imposed]. The payments of a newly formed taxing unit that has no
source of funds are postponed until the unit has received adequate
tax or other revenues.
(i) The fiscal year of an appraisal district is the calendar
year unless the governing bodies of three-fourths of the group of
taxing units composed of the municipalities, school districts, and
county participating in the appraisal district [taxing units
entitled to vote on the appointment of board members] adopt
resolutions proposing a different fiscal year and file them with
the county assessor-collector [secretary of the board] not more
than 12 and not less than eight months before the first day of the
fiscal year proposed by the resolutions. If the fiscal year of an
appraisal district is changed under this subsection, the county
assessor-collector [chief appraiser] shall prepare a proposed
budget for the fiscal year as provided by Subsection (a) [of this
section] before the 15th day of the seventh month preceding the
first day of the fiscal year established by the change[,] and [the
board of directors] shall adopt a budget for the fiscal year as
provided by Subsection (b) [of this section] before the 15th day of
the fourth month preceding the first day of the fiscal year
established by the change. Unless the appraisal district adopts a
different method of allocation under Section 6.061 [of this code],
the allocation of the budget to each taxing unit shall be calculated
as provided by Subsection (d) [of this section] using the
appropriate total taxable values [amount of property taxes imposed
by each participating taxing unit] in the most recent tax year
preceding the fiscal year established by the change for which the
necessary information is available. Each taxing unit shall pay its
allocation as provided by Subsection (e) [of this section], except
that the first payment shall be made before the first day of the
fiscal year established by the change and subsequent payments shall
be made quarterly. The [In the year in which a change in the fiscal
year occurs, the] budget for the fiscal year that precedes the
fiscal year established by the change [that takes effect on January
1 of that year] may be amended as necessary as provided by
Subsection (c) [of this section in order] to accomplish the change
in fiscal years.
(j) If the total amount of the payments made or due to be
made by the taxing units participating in an appraisal district
exceeds the amount actually spent or obligated to be spent during
the fiscal year for which the payments were made, the county
assessor-collector [chief appraiser] shall credit the excess
amount against each taxing unit's allocated payments for the
following year in proportion to the amount of each unit's budget
allocation for the fiscal year for which the payments were made. If
a taxing unit that paid its allocated amount is not allocated a
portion of the district's budget for the following fiscal year, the
county assessor-collector [chief appraiser] shall refund to the
taxing unit its proportionate share of the excess funds not later
than the 150th day after the end of the fiscal year for which the
payments were made.
(k) For good cause shown, the county assessor-collector
[board of directors] may waive the penalty and interest on a
delinquent payment under Subsection (e).
(l) In this subsection, "special district or authority"
means any taxing unit other than a school district, municipality,
or county and includes a junior college district or hospital
district. Notwithstanding any other provision of this section, if
the sum total portion of the budget of the appraisal district
allocated under another provision of this section to the special
districts or authorities that participate in the appraisal district
exceeds 10 percent of the budget, the sum total portion of the
budget that may be allocated to those special districts or
authorities may not exceed 10 percent. The other provisions of this
section govern the allocation of:
(1) that portion of the budget among the special
districts or authorities if more than one special district or
authority participates in the appraisal district; and
(2) the remainder of the budget among the other taxing
units that participate in the appraisal district.
SECTION 9. Section 6.061, Tax Code, is amended to read as
follows:
Sec. 6.061. CHANGES IN METHOD OF FINANCING. (a) The county
assessor-collector who governs [board of directors of] an appraisal
district, by signed order [resolution adopted and] delivered to
each taxing unit participating in the district after June 15 and
before August 15, may prescribe a different method of allocating
the costs of operating the district unless the governing body of any
taxing unit that participates in the district adopts a resolution
opposing the different method, and files it with the county
assessor-collector [board of directors] before September 1. If a
[board] proposal is rejected, the county assessor-collector
[board] shall notify, in writing, each taxing unit participating in
the district before September 15.
(b) The taxing units participating in an appraisal district
may adopt a different method of allocating the costs of operating
the district if the governing bodies of three-fourths of the group
of taxing units composed of the municipalities, school districts,
and county participating in the appraisal district [taxing units
that are entitled to vote on the appointment of board members] adopt
resolutions providing for the other method. However, a change
under this subsection is not valid if it requires any taxing unit to
pay a greater proportion of the appraisal district's costs than the
unit would pay under Section 6.06 [of this code] without the consent
of the governing body of that unit.
(c) An official copy of a resolution under this section must
be filed with the county assessor-collector [chief appraiser of the
appraisal district] after April 30 and before May 15 or the
resolution is ineffective.
(d) Before May 20, the county assessor-collector [chief
appraiser] shall determine whether a sufficient number of eligible
taxing units have filed valid resolutions proposing a change in the
allocation of district costs for the change to take effect. Before
May 25, the county assessor-collector [chief appraiser] shall
notify each taxing unit participating in the district of each
change that is adopted.
(e) A change in allocation of district costs made as
provided by this section remains in effect until changed in a manner
provided by this section or rescinded by resolution of a majority of
the governing bodies of the group of taxing units composed of the
municipalities, school districts, and county participating in the
appraisal district [that are entitled to vote on appointment of
board members under Section 6.03 of this code].
SECTION 10. Sections 6.062(a) and (c), Tax Code, are
amended to read as follows:
(a) Not later than the 10th day before the date of the public
hearing at which the county assessor-collector [board of directors]
considers the appraisal district budget, the county
assessor-collector [chief appraiser] shall give notice of the
public hearing by publishing the notice in a newspaper having
general circulation in the county for which the appraisal district
is established. The notice may not be smaller than one-quarter page
of a standard-size or tabloid-size newspaper and may not be
published in the part of the paper in which legal notices and
classified advertisements appear.
(c) The notice must state that the appraisal district is
supported solely by payments from the local taxing units served by
the appraisal district. The notice must also contain the following
statement: "If approved by the county assessor-collector
[appraisal district board of directors] at the public hearing, this
proposed budget will take effect automatically unless disapproved
by the governing bodies of the county, school districts, and
municipalities [cities, and towns] served by the appraisal
district. A copy of the proposed budget is available for public
inspection in the office of each of those governing bodies."
SECTION 11. Section 6.063, Tax Code, is amended to read as
follows:
Sec. 6.063. FINANCIAL AUDIT. (a) At least once each year,
the county assessor-collector who governs [board of directors of]
an appraisal district shall have prepared an audit of its affairs by
an independent certified public accountant or a firm of independent
certified public accountants.
(b) The report of the audit is a public record. A copy of
the report shall be delivered to the county assessor-collector, the
county judge, and the presiding officer of the governing body of
each municipality and school district participating in the
appraisal district [taxing unit eligible to vote on the appointment
of district directors], and a reasonable number of copies shall be
available for inspection at the appraisal office.
SECTION 12. Sections 6.09(b) and (c), Tax Code, are amended
to read as follows:
(b) The county assessor-collector who governs an appraisal
district [board of directors] shall designate as the district
depository the financial institution or institutions that offer the
most favorable terms and conditions for the handling of the
district's funds.
(c) The county assessor-collector [board] shall solicit
bids to be designated as depository for the district. The
depository when designated shall serve for a term of two years and
until its successor is designated and has qualified. The county
assessor-collector [board] and the depository may agree to extend a
depository contract for one additional two-year period.
SECTION 13. Sections 6.12(a) and (d), Tax Code, are amended
to read as follows:
(a) The county assessor-collector who governs an [chief
appraiser of each] appraisal district shall appoint[, with the
advice and consent of the board of directors,] an agricultural
advisory board composed of three or more members as determined by
the needs of the district [board].
(d) The board shall meet at the call of the county
assessor-collector [chief appraiser] at least three times a year.
SECTION 14. Sections 6.15(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) The county assessor-collector who governs [A member of
the board of directors of] an appraisal district commits an offense
if the county assessor-collector [member] directly or indirectly
communicates with the chief appraiser on any matter relating to the
appraisal of property by the appraisal district, except in:
(1) an open meeting of the county assessor-collector
[appraisal district board of directors] or another public forum; or
(2) a closed meeting of the county assessor-collector
[board of directors] held to consult with the county
assessor-collector's [board's] attorney about pending litigation,
at which the chief appraiser's presence is necessary for full
communication between the county assessor-collector [board] and
the county assessor-collector's [board's] attorney.
(b) A chief appraiser commits an offense if the chief
appraiser directly or indirectly communicates with the county
assessor-collector who governs [a member of the board of directors
of] the appraisal district on any matter relating to the appraisal
of property by the appraisal district, except in:
(1) an open meeting of the county assessor-collector
[board of directors] or another public forum; or
(2) a closed meeting of the county assessor-collector
[board of directors] held to consult with the county
assessor-collector's [board's] attorney about pending litigation,
at which the chief appraiser's presence is necessary for full
communication between the county assessor-collector [board] and
the county assessor-collector's [board's] attorney.
(c) Subsections (a) and (b) do not apply to a routine
communication between the chief appraiser and the county
assessor-collector that relates to the administration of an
appraisal roll, including a communication made in connection with
the certification, correction, or collection of an account[,
regardless of whether the county assessor-collector was appointed
to the board of directors of the appraisal district or serves as a
nonvoting director].
SECTION 15. Subchapter A, Chapter 6, Tax Code, is amended by
adding Section 6.16 to read as follows:
Sec. 6.16. CONTRACTS WITH TAXING UNITS. The county
assessor-collector who governs an appraisal district may contract
with the governing body of a taxing unit that participates in the
appraisal district to consolidate employee benefit plans, vendor
contracts, leases, or purchases if the consolidation will reduce
the costs of those items for the appraisal district and the taxing
unit.
SECTION 16. Sections 6.24(a) and (b), Tax Code, are amended
to read as follows:
(a) The governing body of a taxing unit other than a county
may contract as provided by Chapter 791, Government Code, for the
performance of duties relating to the assessment or collection of
taxes fur the taxing unit [the Interlocal Cooperation Act] with:
(1) the governing body of another taxing unit [or with
the board of directors of an appraisal district] for the other unit
[or the district] to perform those duties; or
(2) the county assessor-collector who governs an
appraisal district for the appraisal district to perform those
duties [relating to the assessment or collection of taxes].
(b) The commissioners court of a county with the approval of
the county assessor-collector may contract as provided by Chapter
791, Government Code, [the Interlocal Cooperation Act] with the
governing body of another taxing unit in the county [or with the
board of directors of the appraisal district] for the other unit [or
the district] to perform duties relating to the assessment or
collection of taxes for the county. The commissioners court may
contract as provided by Chapter 791, Government Code, with the
county assessor-collector for the appraisal district established
for the county to perform duties relating to the assessment or
collection of taxes for the county. If a county contracts to have
its taxes assessed and collected by another taxing unit or by the
appraisal district, except as provided by Subsection (c), the
contract shall require the other unit or the district to assess and
collect all taxes the county is required to assess and collect.
SECTION 17. Section 6.26(f), Tax Code, is amended to read as
follows:
(f) If a majority of the qualified voters voting on the
question in the election favor the proposition, the entity or
office named by the ballot shall perform the functions named by the
ballot beginning with the next time property taxes are assessed or
collected, as applicable, that is more than 90 days after the date
of the election. If the governing bodies, [(]and the county
assessor-collector who governs the appraisal district [board of
directors] when the district is involved,[)] agree, a function may
be consolidated when performance of the function begins in less
than 90 days after the date of the election.
SECTION 18. Sections 6.41(b), (d), (e), and (f), Tax Code,
are amended to read as follows:
(b) The board consists of three members. However, the
county assessor-collector who governs the appraisal district
[board of directors by resolution of a majority of its members] may
increase the size of the appraisal review board to the number of
members the county assessor-collector [board of directors]
considers appropriate.
(d) Members of the board are appointed by the county
assessor-collector who governs the appraisal district [by
resolution of a majority of the appraisal district board of
directors]. A vacancy on the board is filled in the same manner for
the unexpired portion of the term.
(e) Members of the board hold office for terms of two years
beginning January 1. The county assessor-collector [appraisal
district board of directors by resolution] shall provide for
staggered terms, so that the terms of as close to one-half of the
members as possible expire each year. In making the initial or
subsequent appointments, the county assessor-collector [board of
directors] shall designate those members who serve terms of one
year as needed to comply with this subsection.
(f) A member of the board may be removed from the board by
the county assessor-collector who governs [a majority vote of] the
appraisal district [board of directors]. Grounds for removal are:
(1) a violation of Section 6.412, 6.413, 41.66(f), or
41.69; or
(2) good cause relating to the attendance of members
at called meetings of the board as established by written policy
adopted by the county assessor-collector [a majority of the
appraisal district board of directors].
SECTION 19. Sections 6.412(c) and (d), Tax Code, are
amended to read as follows:
(c) A person is ineligible to serve on the appraisal review
board if the person is the county assessor-collector [a member of
the board of directors], an officer[,] or employee of the appraisal
district, an employee of the comptroller, or a member of the
governing body, an officer, or an employee of a taxing unit.
(d) A person is ineligible to serve on the appraisal review
board of an appraisal district established for a county having a
population of more than 100,000:
(1) if the person:
(A) has served for all or part of three previous
terms as a board member or auxiliary board member on the appraisal
review board; or
(B) is a former county assessor-collector who
governed the appraisal district or a former [member of the board of
directors,] officer[,] or employee of the appraisal district; [or]
(2) if the person served as a member of the governing
body or as an officer of a taxing unit for which the appraisal
district appraises property, until the fourth anniversary of the
date the person ceased to be a member or officer; or
(3) if the person has ever appeared before the
appraisal review board for compensation.
SECTION 20. Subchapter B, Chapter 22, Tax Code, is amended
by adding Section 22.31 to read as follows:
Sec. 22.31. NOTICE TO COMPTROLLER REGARDING COMPLIANCE WITH
FILING REQUIREMENT. (a) A person who owns tangible personal
property used for the production of income and who is audited by the
comptroller for any purpose shall notify the comptroller regarding
whether the person filed a rendition statement or property report
required by this chapter with the chief appraiser for the most
recent tax year in which the person was required to file the
statement or report.
(b) The comptroller shall forward to the chief appraiser the
notice received by the comptroller under Subsection (a).
SECTION 21. Sections 23.23(a), (b), (c), (d), and (f), Tax
Code, are amended to read as follows:
(a) The appraised value of a residence homestead for the
first tax year after the year in which the owner acquires the
property is the market value of the property. Notwithstanding
Section 23.01, the appraised value of the property in each
subsequent tax year until the end of the tax year in which the
ownership of the property changes shall be the sum of:
(1) the appraised value of the property for the
preceding tax year as adjusted for the current tax year to reflect
the change from the preceding tax year in the purchasing power of
the dollar for consumers in this state; and
(2) the market value of all new improvements to the
property [Notwithstanding the requirements of Section 25.18 and
regardless of whether the appraisal office has appraised the
property and determined the market value of the property for the tax
year, an appraisal office may increase the appraised value of a
residence homestead for a tax year to an amount not to exceed the
lesser of:
[(1) the market value of the property for the most
recent tax year that the market value was determined by the
appraisal office; or
[(2) the sum of:
[(A) 10 percent of the appraised value of the
property for the preceding tax year;
[(B) the appraised value of the property for the
preceding tax year; and
[(C) the market value of all new improvements to
the property].
(b) For each tax year, using regional indexes that the
comptroller considers to most accurately report changes in the
purchasing power of the dollar for consumers in this state, the
comptroller shall determine and publicize the percentage by which
the appraised value of residence homesteads may be increased under
Subsection (a)(1). The tax assessor-collector shall use the
percentage determined by the comptroller under this subsection to
determine the maximum appraised valued under Subsection (a) of
residence homesteads appraised by that chief appraiser [When
appraising a residence homestead, the chief appraiser shall:
[(1) appraise the property at its market value; and
[(2) include in the appraisal records both the market
value of the property and the amount computed under Subsection
(a)(2)].
(c) When appraising a residence homestead, the chief
appraiser shall:
(1) determine the market value of the property; and
(2) include in the appraisal records both the market
value of the property and the maximum appraised value of the
property calculated under Subsection (a) [The limitation provided
by Subsection (a) takes effect as to a residence homestead on
January 1 of the tax year following the first tax year the owner
qualifies the property for an exemption under Section 11.13. The
limitation expires on January 1 of the first tax year that neither
the owner of the property when the limitation took effect nor the
owner's spouse or surviving spouse qualifies for an exemption under
Section 11.13].
(d) This section does not apply to property appraised under
Subchapter C, D, E, F, [or] G, or H.
(f) For purposes of this section, the owner of a residence
homestead on January 1, 2010, is considered to have acquired the
property in the 2009 tax year [Notwithstanding Subsections (a) and
(e) and except as provided by Subdivision (2), an improvement to
property that would otherwise constitute a new improvement is not
treated as a new improvement if the improvement is a replacement
structure for a structure that was rendered uninhabitable or
unusable by a casualty or by mold or water damage. For purposes of
appraising the property in the tax year in which the structure would
have constituted a new improvement:
[(1) the last year in which the property was appraised
for taxation before the casualty or damage occurred is considered
to be the last year in which the property was appraised for taxation
for purposes of Subsection (a)(2)(A); and
[(2) the replacement structure is considered to be a
new improvement only to the extent it is a significant improvement
over the replaced structure as that structure existed before the
casualty or damage occurred].
SECTION 22. Section 23.55(n), Tax Code, is amended to read
as follows:
(n) Within one year of the conclusion of the two fiscal
bienniums for which the comptroller issued a letter as provided
under Subsection (m), the county assessor-collector who governs
[board of directors of] the appraisal district[, by official board
action,] may direct the chief appraiser to request the comptroller
to determine if the amount of revenues was equal to or exceeded 20
times the amount of taxes and interest that would have been imposed
under Subsection (a). The comptroller shall issue a finding as to
whether the amount of revenue met the projected increases. The
chief appraiser shall review the results of the comptroller's
finding and shall make a determination as to whether sanctions
under Subsection (a) should be imposed. If the chief appraiser
determines that the sanctions provided by Subsection (a) shall be
imposed, the sanctions shall be based on the date of the transfer of
the property under Subsection (f)(4).
SECTION 23. Section 25.01(b), Tax Code, is amended to read
as follows:
(b) The county assessor-collector who governs the appraisal
district [chief appraiser with the approval of the board of
directors of the district] may contract with a private appraisal
firm to perform appraisal services for the district, subject to the
county assessor-collector's [his] approval. A contract for private
appraisal services is void if the amount of compensation to be paid
the private appraisal firm is contingent on the amount of or
increase in appraised, assessed, or taxable value of property
appraised by the appraisal firm.
SECTION 24. Sections 25.18(a) and (b), Tax Code, are
amended to read as follows:
(a) Each appraisal office shall implement the plan for
periodic reappraisal of property approved by the county
assessor-collector [board of directors] under Section 6.05(l)
[6.05(i)].
(b) The plan shall provide for the following reappraisal
activities for all residence homesteads in the district in the same
year once every 10 years and for all other real and personal
property in the district at least once every three years:
(1) identifying properties to be appraised through
physical inspection or by other reliable means of identification,
including deeds or other legal documentation, aerial photographs,
land-based photographs, surveys, maps, and property sketches;
(2) identifying and updating relevant characteristics
of each property in the appraisal records;
(3) defining market areas in the district;
(4) identifying property characteristics that affect
property value in each market area, including:
(A) the location and market area of property;
(B) physical attributes of property, such as
size, age, and condition;
(C) legal and economic attributes; and
(D) easements, covenants, leases, reservations,
contracts, declarations, special assessments, ordinances, or legal
restrictions;
(5) developing an appraisal model that reflects the
relationship among the property characteristics affecting value in
each market area and determines the contribution of individual
property characteristics;
(6) applying the conclusions reflected in the model to
the characteristics of the properties being appraised; and
(7) reviewing the appraisal results to determine
value.
SECTION 25. Section 25.19(e), Tax Code, is amended to read
as follows:
(e) The chief appraiser, with the approval of the county
assessor-collector who governs the appraisal district [appraisal
district board of directors], may dispense with the notice required
by Subsection (a)(1) if the amount of increase in appraised value is
$1,000 or less.
SECTION 26. Section 25.25(b), Tax Code, is amended to read
as follows:
(b) The chief appraiser may change the appraisal roll at any
time to correct a name or address, a determination of ownership, a
description of property, multiple appraisals of a property, or a
clerical error or other inaccuracy as prescribed by board rule that
does not increase the amount of tax liability. Before the 10th day
after the end of each calendar quarter, the chief appraiser shall
submit to the appraisal review board and to the county
assessor-collector who governs [board of directors of] the
appraisal district a written report of each change made under this
subsection that decreases the tax liability of the owner of the
property. The report must include:
(1) a description of each property; and
(2) the name of the owner of that property.
SECTION 27. Section 41.66(g), Tax Code, is amended to read
as follows:
(g) At the beginning of a hearing on a protest, each member
of the appraisal review board hearing the protest must sign an
affidavit stating that the board member has not communicated with
another person in violation of Subsection (f). If a board member
has communicated with another person in violation of Subsection
(f), the member must be recused from the proceeding and may not
hear, deliberate on, or vote on the determination of the protest.
The county assessor-collector who governs [board of directors of]
the appraisal district shall adopt and implement a policy
concerning the temporary replacement of an appraisal review board
member who has communicated with another person in violation of
Subsection (f).
SECTION 28. Section 42.02, Tax Code, is amended by amending
Subsections (a) and (c) and adding Subsection (d) to read as
follows:
(a) The [On written approval of the board of directors of
the appraisal district, the] chief appraiser is entitled to appeal
an order of the appraisal review board determining:
(1) a taxpayer protest as provided by Subchapter C,
Chapter 41, subject to Subsection (b); or
(2) a taxpayer's motion to change the appraisal roll
filed under Section 25.25.
(c) The [On written approval of the board of directors of
the appraisal district, the] chief appraiser may appeal an order of
the appraisal review board determining a taxpayer protest otherwise
prohibited by Subsection (b)[,] if the chief appraiser alleges that
the taxpayer or a person acting on behalf of the taxpayer committed
fraud, made a material misrepresentation, or presented fraudulent
evidence in the hearing before the board. In an appeal under this
subsection, the court shall first consider whether the taxpayer or
a person acting on behalf of the taxpayer committed fraud, made a
material misrepresentation, or presented fraudulent evidence to
the appraisal review board. If the court does not find by a
preponderance of the evidence that the taxpayer or a person acting
on behalf of the taxpayer committed fraud, made a material
misrepresentation, or presented fraudulent evidence to the
appraisal review board, the court shall:
(1) dismiss the appeal; and
(2) award court costs and reasonable attorney's fees
to the taxpayer.
(d) The county assessor-collector must approve an appeal
under this section in writing.
SECTION 29. Subchapter Z, Chapter 152, Local Government
Code, is amended by adding Section 152.908 to read as follows:
Sec. 152.908. COMPENSATION OF COUNTY TAX
ASSESSOR-COLLECTOR. In setting the amount of the compensation of
the county tax assessor-collector, the commissioners court of the
county may not take into account the compensation the county tax
assessor-collector receives for administering the appraisal
district established for the county.
SECTION 30. Section 1151.004(a), Occupations Code, is
amended to read as follows:
(a) A county assessor-collector [An appraisal district
board of directors] or a governing body may not, as a necessity for
employment, require an appraiser, assessor, or collector to:
(1) act in an unprofessional manner; or
(2) violate this chapter.
SECTION 31. The heading to Section 1151.151, Occupations
Code, is amended to read as follows:
Sec. 1151.151. REGISTRATION REQUIRED; EXEMPTIONS
[EXEMPTION].
SECTION 32. Section 1151.151, Occupations Code, is amended
by amending Subsection (b) and adding Subsections (c) and (d) to
read as follows:
(b) A county assessor-collector is not required to register
with the board as an assessor, assessor-collector, or collector if
the county, by contract entered into under Section 6.24(b), Tax
Code, has its taxes assessed and collected by another taxing unit
[or an appraisal district].
(c) A county assessor-collector is not required to register
with the board as an appraiser if the duties of the appraisal office
for the appraisal district established for the county are performed
by another appraisal district or by a taxing unit under a contract
authorized by Section 6.05(b), Tax Code.
(d) The exemption under Subsection (c) exists only while a
contract under Section 6.05(b), Tax Code, is in effect.
SECTION 33. The following provisions of the Tax Code are
repealed:
(1) Section 6.031;
(2) Section 6.033;
(3) Section 6.034;
(4) Section 6.036;
(5) Section 6.037;
(6) Section 6.04;
(7) Section 6.052;
(8) Section 6.10; and
(9) Section 31.03(c).
SECTION 34. (a) On the effective date of this Act, the tax
assessor-collector of each county begins to govern the appraisal
district established for that county and begins to serve as the
chief appraiser of the appraisal district, and the board of
directors of each appraisal district ceases to exist. On that date,
the appraisal district as governed by the county tax
assessor-collector succeeds to all the rights, duties, privileges,
property, obligations, and liabilities of the appraisal district as
governed by the board of directors.
(b) A measure taken or adopted by an appraisal district
board of directors before the effective date of this Act that is in
effect on the effective date continues in effect after the
effective date of this Act until superseded by a measure taken or
adopted by the county tax assessor-collector governing the
district.
(c) The amendment by this Act of Section 6.41, Tax Code,
does not affect the term of a member of an appraisal review board
appointed before the effective date of this Act.
SECTION 35. This Act takes effect January 1, 2010, but only
if the constitutional amendment proposed by the 81st Legislature,
Regular Session, 2009, authorizing the legislature to limit
increases in the appraised value of a residence homestead for ad
valorem tax purposes based on the inflation rate and to limit the
frequency of reappraisals of residence homesteads is approved by
the voters. If that amendment is not approved by the voters, this
Act has no effect.