Texas 2009 - 81st Regular

Texas Senate Bill SB20 Compare Versions

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1	1	By: Williams, Patrick
2	2	Shapleigh
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to ad valorem taxation.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	ARTICLE 1. CONSOLIDATED APPRAISAL REVIEW BOARDS
10	10	SECTION 1.01. Section 6.41, Tax Code, is amended by adding
11	11	Subsections (g) and (h) to read as follows:
12	12	(g) Subsection (a) does not preclude the boards of directors
13	13	of two or more adjoining appraisal districts from providing for the
14	14	operation of a consolidated appraisal review board by interlocal
15	15	contract.
16	16	(h) When adjoining appraisal districts by interlocal
17	17	contract have provided for the operation of a consolidated
18	18	appraisal review board:
19	19	(1) a reference in this or another section of this code
20	20	to the appraisal district means the adjoining appraisal districts;
21	21	(2) a reference in this or another section of this code
22	22	to the appraisal district board of directors means the boards of
23	23	directors of the adjoining appraisal districts;
24	24	(3) a provision of this code that applies to an
25	25	appraisal review board also applies to the consolidated appraisal
26	26	review board; and
27	27	(4) a reference in this code to the appraisal review
28	28	board shall be construed to also refer to the consolidated
29	29	appraisal review board.
30	30	SECTION 1.02. This article takes effect only if the
31	31	constitutional amendment proposed by the 81st Legislature, Regular
32	32	Session, 2009, authorizing the legislature to authorize a single
33	33	board of equalization for two or more adjoining appraisal entities
34	34	that elect to provide for consolidated equalizations is approved by
35	35	the voters. If that amendment is not approved by the voters, this
36	36	article has no effect.
37	37	ARTICLE 2. APPRAISAL OF RESIDENCE HOMESTEADS
38	38	SECTION 2.01. Section 23.01, Tax Code, is amended by adding
39	39	Subsection (c) to read as follows:
40	40	(c) The market value of a residence homestead shall be
41	41	determined solely on the basis of the property's value as a
42	42	residence homestead, regardless of whether the residential use of
43	43	the property by the owner is considered to be the highest and best
44	44	use of the property.
45	45	SECTION 2.02. (a) Subject to Subsection (b) of this
46	46	section, this article takes effect only if the constitutional
47	47	amendment proposed by the 81st Legislature, Regular Session, 2009,
48	48	authorizing the legislature to provide for the ad valorem taxation
49	49	of a residence homestead solely on the basis of the property's value
50	50	as a residence homestead is approved by the voters. If that
51	51	amendment is not approved by the voters, this article has no effect.
52	52	(b) This article takes effect only if a specific
53	53	appropriation to the Texas Education Agency is included in Senate
54	54	Bill No. 1 (General Appropriations Act), Acts of the 81st
55	55	Legislature, Regular Session, 2009, intended to offset the cost to
56	56	the Foundation School Program resulting from the implementation of
57	57	this article.
58	58	ARTICLE 3. TAXPAYER OMBUDSMAN
59	59	SECTION 3.01. Subsection (d), Section 6.04, Tax Code, is
60	60	amended to read as follows:
61	61	(d) The board shall develop and implement policies that
62	62	provide the public with reasonable opportunity to appear before the
63	63	board to speak on any issue under the jurisdiction of the board.
64	64	Reasonable time shall be provided during each board meeting for
65	65	public comment on appraisal district and appraisal review board
66	66	policies and procedures, and a report from the taxpayer ombudsman
67	67	[liaison officer] if one is required by Section 6.052.
68	68	SECTION 3.02. Section 6.052, Tax Code, is amended to read as
69	69	follows:
70	70	Sec. 6.052. TAXPAYER OMBUDSMAN [LIAISON OFFICER]. (a) The
71	71	board of directors for an appraisal district created for a county
72	72	with a population of more than 50,000 [125,000] shall appoint a
73	73	taxpayer ombudsman [liaison officer] who shall serve at the
74	74	pleasure of the board. The taxpayer ombudsman [liaison officer]
75	75	shall administer the public access functions required by Sections
76	76	6.04(d), (e), and (f), and is responsible for resolving disputes
77	77	not involving matters that may be protested under Section 41.41.
78	78	(b) The taxpayer ombudsman shall [liaison officer may]
79	79	provide information and materials designed to assist property
80	80	owners in understanding the appraisal process, protest procedures,
81	81	and related matters.
82	82	(c) The taxpayer ombudsman [liaison officer] shall report
83	83	to the board at each meeting on the status of all complaints filed
84	84	with the board under Section 6.04(g).
85	85	(d) The taxpayer ombudsman [liaison officer] is entitled to
86	86	compensation as provided by the budget adopted by the board of
87	87	directors.
88	88	(d-1) The appraisal review board shall provide the taxpayer
89	89	ombudsman with the contact information of each property owner who
90	90	files a notice of protest under Chapter 41 with the board. On
91	91	receipt of the information, the taxpayer ombudsman shall contact
92	92	the property owner to inform the property owner of the services
93	93	provided by the ombudsman and provide the business address and
94	94	telephone number of the ombudsman.
95	95	(e) The chief appraiser or any other person who performs
96	96	appraisal services for the appraisal district for compensation is
97	97	not eligible to be the taxpayer ombudsman [liaison officer] for the
98	98	appraisal district.
99	99	ARTICLE 4. STUDIES CONDUCTED BY COMPTROLLER
100	100	SECTION 4.01. Subdivisions (1), (2), and (4), Section
101	101	403.3011, Government Code, are amended to read as follows:
102	102	(1) "Study" ["Annual study"] means a study conducted
103	103	under Section 403.302.
104	104	(2) "Eligible school district" means a school district
105	105	for which the comptroller has determined the following:
106	106	(A) in the most recent [annual] study, the local
107	107	value is invalid under Section 403.302(c) and does not exceed the
108	108	state value for the school district determined in the [annual]
109	109	study;
110	110	(B) in the two studies [annual study for each of
111	111	the two years] preceding the most recent [annual] study, the school
112	112	district's local value was valid under Section 403.302(c); [and]
113	113	(C) in the most recent [annual] study, the
114	114	aggregate local value of all of the categories of property sampled
115	115	by the comptroller is not less than 90 percent of the lower limit of
116	116	the margin of error as determined by the comptroller of the
117	117	aggregate value as determined by the comptroller of all of the
118	118	categories of property sampled by the comptroller; and
119	119	(D) the appraisal district that appraises
120	120	property for the school district was in compliance with the scoring
121	121	requirement of the comptroller's most recent review of the
122	122	appraisal district conducted under Section 5.102, Tax Code.
123	123	(4) "State value" means the value of property in a
124	124	school district as determined in a [the annual] study.
125	125	SECTION 4.02. Section 403.302, Government Code, is amended
126	126	by amending Subsections (a), (c), (c-1), (f), (h), (i), and (l) and
127	127	adding Subsections (a-1), (a-2), (m), (n), and (o) to read as
128	128	follows:
129	129	(a) The comptroller shall conduct a [an annual] study using
130	130	comparable sales and generally accepted auditing and sampling
131	131	techniques to determine the total taxable value of all property in
132	132	each school district. The study shall determine the taxable value
133	133	of all property and of each category of property in the district and
134	134	the productivity value of all land that qualifies for appraisal on
135	135	the basis of its productive capacity and for which the owner has
136	136	applied for and received a productivity appraisal. The comptroller
137	137	shall make appropriate adjustments in the study to account for
138	138	actions taken under Chapter 41, Education Code.
139	139	(a-1) The comptroller shall conduct a study:
140	140	(1) at least every two years in each school district
141	141	for which the most recent study resulted in a determination by the
142	142	comptroller that the school district's local value was valid; and
143	143	(2) each year in a school district for which the most
144	144	recent study resulted in a determination by the comptroller that
145	145	the school district's local value was not valid.
146	146	(a-2) If in any year the comptroller does not conduct a
147	147	study, the school district's local value for that year is
148	148	considered to be valid.
149	149	(c) If after conducting the [annual] study the comptroller
150	150	determines that the local value for a school district is valid, the
151	151	local value is presumed to represent taxable value for the school
152	152	district. In the absence of that presumption, taxable value for a
153	153	school district is the state value for the school district
154	154	determined by the comptroller under Subsections (a) and (b) unless
155	155	the local value exceeds the state value, in which case the taxable
156	156	value for the school district is the district's local value. In
157	157	determining whether the local value for a school district is valid,
158	158	the comptroller shall use a margin of error that does not exceed
159	159	five percent unless the comptroller determines that the size of the
160	160	sample of properties necessary to make the determination makes the
161	161	use of such a margin of error not feasible, in which case the
162	162	comptroller may use a larger margin of error.
163	163	(c-1) This subsection applies only to a school district
164	164	whose central administrative office is located in a county with a
165	165	population of 9,000 or less and a total area of more than 6,000
166	166	square miles. If after conducting the [annual] study for a tax
167	167	year the comptroller determines that the local value for a school
168	168	district is not valid, the comptroller shall adjust the taxable
169	169	value determined under Subsections (a) and (b) as follows:
170	170	(1) for each category of property sampled and tested
171	171	by the comptroller in the school district, the comptroller shall
172	172	use the weighted mean appraisal ratio determined by the study,
173	173	unless the ratio is more than four percentage points lower than the
174	174	weighted mean appraisal ratio determined by the comptroller for
175	175	that category of property in the immediately preceding study, in
176	176	which case the comptroller shall use the weighted mean appraisal
177	177	ratio determined in the immediately preceding study minus four
178	178	percentage points;
179	179	(2) the comptroller shall use the category weighted
180	180	mean appraisal ratios as adjusted under Subdivision (1) to
181	181	establish a value estimate for each category of property sampled
182	182	and tested by the comptroller in the school district; and
183	183	(3) the value estimates established under Subdivision
184	184	(2), together with the local tax roll value for any categories not
185	185	sampled and tested by the comptroller, less total deductions
186	186	determined by the comptroller, determine the taxable value for the
187	187	school district.
188	188	(f) The study shall determine the values as of January 1 of
189	189	each year:
190	190	(1) for a school district in which a study was
191	191	conducted according to the results of the study; and
192	192	(2) for a school district in which a study was not
193	193	conducted according to the market value determined by the appraisal
194	194	district that appraises property for the district, less the amounts
195	195	specified by Subsection (d).
196	196	(h) On request of the commissioner of education or a school
197	197	district, the comptroller may audit the total taxable value of
198	198	property in a school district and may revise the [annual] study
199	199	findings. The request for audit is limited to corrections and
200	200	changes in a school district's appraisal roll that occurred after
201	201	preliminary certification of the [annual] study findings by the
202	202	comptroller. Except as otherwise provided by this subsection, the
203	203	request for audit must be filed with the comptroller not later than
204	204	the third anniversary of the date of the final certification of the
205	205	[annual] study findings. The request for audit may be filed not
206	206	later than the first anniversary of the date the chief appraiser
207	207	certifies a change to the appraisal roll if the chief appraiser
208	208	corrects the appraisal roll under Section 25.25 or 42.41, Tax Code,
209	209	and the change results in a material reduction in the total taxable
210	210	value of property in the school district. The comptroller shall
211	211	certify the findings of the audit to the commissioner of education.
212	212	(i) If the comptroller determines in the [annual] study that
213	213	the market value of property in a school district as determined by
214	214	the appraisal district that appraises property for the school
215	215	district, less the total of the amounts and values listed in
216	216	Subsection (d) as determined by that appraisal district, is valid,
217	217	the comptroller, in determining the taxable value of property in
218	218	the school district under Subsection (d), shall for purposes of
219	219	Subsection (d)(14) subtract from the market value as determined by
220	220	the appraisal district of residence homesteads to which Section
221	221	23.23, Tax Code, applies the amount by which that amount exceeds the
222	222	appraised value of those properties as calculated by the appraisal
223	223	district under Section 23.23, Tax Code. If the comptroller
224	224	determines in the [annual] study that the market value of property
225	225	in a school district as determined by the appraisal district that
226	226	appraises property for the school district, less the total of the
227	227	amounts and values listed in Subsection (d) as determined by that
228	228	appraisal district, is not valid, the comptroller, in determining
229	229	the taxable value of property in the school district under
230	230	Subsection (d), shall for purposes of Subsection (d)(14) subtract
231	231	from the market value as estimated by the comptroller of residence
232	232	homesteads to which Section 23.23, Tax Code, applies the amount by
233	233	which that amount exceeds the appraised value of those properties
234	234	as calculated by the appraisal district under Section 23.23, Tax
235	235	Code.
236	236	(l) If after conducting the [annual] study for [the year
237	237	2003 or] a [subsequent] year the comptroller determines that a
238	238	school district is an eligible school district, for that year and
239	239	the following year the taxable value for the school district is the
240	240	district's local value. [Not later than the first anniversary of
241	241	the date of the determination that a school district is an eligible
242	242	school district, the comptroller shall complete an appraisal
243	243	standards review as provided by Section 5.102, Tax Code, of each
244	244	appraisal district that appraises property for the school
245	245	district.]
246	246	(m) The Comptroller's Property Value Study Advisory
247	247	Committee is created. The committee is composed of:
248	248	(1) one member of the house of representatives,
249	249	appointed by the speaker of the house of representatives;
250	250	(2) one member of the senate, appointed by the
251	251	lieutenant governor;
252	252	(3) two members who represent appraisal districts,
253	253	appointed by the comptroller;
254	254	(4) two members who represent school districts,
255	255	appointed by the comptroller; and
256	256	(5) three members appointed by the comptroller who are
257	257	residents of this state and are school district taxpayers or have
258	258	expertise in school district taxation or ratio studies.
259	259	(n) Chapter 2110 does not apply to the size, composition, or
260	260	duration of the Comptroller's Property Value Study Advisory
261	261	Committee.
262	262	(o) The comptroller shall adopt rules governing the conduct
263	263	of the study after consultation with the Comptroller's Property
264	264	Value Study Advisory Committee.
265	265	SECTION 4.03. The heading to Section 403.304, Government
266	266	Code, is amended to read as follows:
267	267	Sec. 403.304. COOPERATION WITH COMPTROLLER;
268	268	CONFIDENTIALITY.
269	269	SECTION 4.04. Section 403.304, Government Code, is amended
270	270	by amending Subsection (a) and adding Subsection (a-1) to read as
271	271	follows:
272	272	(a) A school district, appraisal district, or other
273	273	governmental entity in this state shall promptly comply with an
274	274	oral or written request from the comptroller for information to be
275	275	used in conducting a study, including information that is made
276	276	confidential by Chapter 552 of this code, Section 22.27, Tax Code,
277	277	or another law of this state.
278	278	(a-1) All information the comptroller obtains from a
279	279	person, other than a government or governmental subdivision or
280	280	agency, under an assurance that the information will be kept
281	281	confidential, in the course of conducting a study [of school
282	282	district values] is confidential and may not be disclosed except as
283	283	provided in Subsection (b).
284	284	SECTION 4.05. Subsection (c), Section 5.07, Tax Code, is
285	285	amended to read as follows:
286	286	(c) The comptroller shall also prescribe a uniform record
287	287	system to be used by all appraisal districts for the purpose of
288	288	submitting data to be used in the [annual] studies required by
289	289	Section 5.10 of this code and by Section 403.302, Government Code.
290	290	The record system shall include a compilation of information
291	291	concerning sales of real property within the boundaries of the
292	292	appraisal district. The sales information maintained in the
293	293	uniform record system shall be submitted annually in a form
294	294	prescribed by the comptroller.
295	295	SECTION 4.06. Subsection (a), Section 5.10, Tax Code, is
296	296	amended to read as follows:
297	297	(a) At least once every two years, the [The] comptroller
298	298	shall conduct a [an annual] study in each appraisal district to
299	299	determine the degree of uniformity of and the median level of
300	300	appraisals by the appraisal district within each major category of
301	301	property. The comptroller shall publish a report of the findings of
302	302	the study, including in the report the median levels of appraisal
303	303	for each major category of property, the coefficient of dispersion
304	304	around the median level of appraisal for each major category of
305	305	property, and any other standard statistical measures that the
306	306	comptroller considers appropriate. In conducting the study, the
307	307	comptroller shall apply appropriate standard statistical analysis
308	308	techniques to data collected as part of the [annual] study of school
309	309	district taxable values required by Section 403.302, Government
310	310	Code.
311	311	SECTION 4.07. Section 5.102, Tax Code, is amended to read as
312	312	follows:
313	313	Sec. 5.102. REVIEW OF APPRAISAL DISTRICTS [STANDARDS].
314	314	(a) At least once every two years, the [The] comptroller shall
315	315	review the governance of each appraisal district, taxpayer
316	316	assistance provided, and the operating and appraisal standards,
317	317	procedures, and methodology used by each appraisal district [that
318	318	appraises property for an eligible school district as defined by
319	319	Section 403.3011, Government Code,] to determine compliance with
320	320	generally accepted [appraisal] standards, procedures, and
321	321	methodology [and practices]. After consultation with the advisory
322	322	committee created under Section 403.302, Government Code, the [The]
323	323	comptroller by rule may establish procedures and standards for
324	324	conducting and scoring the review.
325	325	(b) In conducting the review, the comptroller is entitled to
326	326	access to all records and reports of the appraisal district, to copy
327	327	or print any record or report of the appraisal district, and to the
328	328	assistance of the appraisal district's officers and employees.
329	329	(c) At the conclusion of the review, the comptroller shall,
330	330	in writing, notify the appraisal district concerning its
331	331	performance in the review. If the review results in a finding that
332	332	an appraisal district is not in compliance with generally accepted
333	333	[appraisal] standards, procedures, and methodology [and
334	334	practices], the comptroller shall deliver a report that details the
335	335	comptroller's findings and recommendations for improvement to:
336	336	(1) the appraisal district's chief appraiser and board
337	337	of directors; and
338	338	(2) the superintendent and board of trustees of each
339	339	school district participating in the appraisal district.
340	340	(d) If the appraisal district fails to comply with the
341	341	recommendations in the report and the comptroller finds that the
342	342	board of directors of the appraisal district failed to take
343	343	remedial action reasonably designed to ensure substantial
344	344	compliance with each recommendation in the report before the first
345	345	anniversary of the date the report was issued, the comptroller
346	346	shall notify the Board of Tax Professional Examiners, or a
347	347	successor to the board, which shall take action necessary to ensure
348	348	that the recommendations in the report are implemented as soon as
349	349	practicable [judge of each district court in the county for which
350	350	the appraisal district is established, who shall appoint a board of
351	351	conservators consisting of five members to implement the
352	352	recommendations. The board of conservators shall exercise
353	353	supervision and control over the operations of the appraisal
354	354	district until the comptroller determines under Section 403.302,
355	355	Government Code, that in the same year the taxable value of each
356	356	school district for which the appraisal district appraises property
357	357	is the local value for the school district. The appraisal district
358	358	shall bear the costs related to the supervision and control of the
359	359	district by the board of conservators].
360	360	(e) Before February 1 of the year following the year in
361	361	which the Board of Tax Professional Examiners, or its successor,
362	362	takes action under Subsection (d), and with the assistance of the
363	363	comptroller, the board shall determine whether the recommendations
364	364	in the most recent report have been substantially implemented. The
365	365	presiding officer of the board shall notify the chief appraiser and
366	366	the board of directors of the appraisal district in writing of the
367	367	board's determination.
368	368	SECTION 4.08. Subsections (a), (d), and (e), Section 5.12,
369	369	Tax Code, are amended to read as follows:
370	370	(a) The comptroller shall audit the performance of an
371	371	appraisal district if one or more of the following conditions exist
372	372	according to each of two consecutive [annual] studies conducted by
373	373	the comptroller under Section 5.10 [of this code], regardless of
374	374	whether the prescribed condition or conditions that exist are the
375	375	same for each of those studies:
376	376	(1) the overall median level of appraisal for all
377	377	property in the district for which the comptroller determines a
378	378	median level of appraisal is less than 0.75;
379	379	(2) the coefficient of dispersion around the overall
380	380	median level of appraisal of the properties used to determine the
381	381	overall median level of appraisal for all property in the district
382	382	for which the comptroller determines a median level of appraisal
383	383	exceeds 0.30; or
384	384	(3) the difference between the median levels of
385	385	appraisal for any two classes of property in the district for which
386	386	the comptroller determines a median level of appraisal is more than
387	387	0.45.
388	388	(d) A request for a performance audit of an appraisal
389	389	district may not be made under Subsection (b) or (c) [of this
390	390	section] if according to each of the two most recently published
391	391	[annual] studies conducted by the comptroller under Section 5.10
392	392	[of this code]:
393	393	(1) the overall median level of appraisal for all
394	394	property in the district for which the comptroller determines a
395	395	median level of appraisal is more than 0.90 and less than 1.10;
396	396	(2) the coefficient of dispersion around the overall
397	397	median level of appraisal of the properties used to determine the
398	398	overall median level of appraisal for all property in the district
399	399	for which the comptroller determines a median level of appraisal is
400	400	less than 0.15; and
401	401	(3) the difference between the highest and lowest
402	402	median levels of appraisal in the district for the classes of
403	403	property for which the comptroller determines a median level of
404	404	appraisal is less than 0.20.
405	405	(e) A request for a performance audit of an appraisal
406	406	district may not be made under Subsection (b) or (c) [of this
407	407	section]:
408	408	(1) during the two years immediately following the
409	409	publication of the second of two consecutive [annual] studies
410	410	according to which the comptroller is required to conduct an audit
411	411	of the district under Subsection (a) [of this section]; [or]
412	412	(2) during the year immediately following the date the
413	413	results of an audit of the district conducted by the comptroller
414	414	under Subsection (a) [of this section] are reported to the chief
415	415	appraiser of the district; or
416	416	(3) during a year in which the comptroller is
417	417	conducting a review of the district under Section 5.102.
418	418	SECTION 4.09. Subsection (a), Section 5.13, Tax Code, is
419	419	amended to read as follows:
420	420	(a) The comptroller shall complete an audit required by
421	421	Section 5.12(a) [of this code] within two years after the date of
422	422	the publication of the second of the two [annual] studies the
423	423	results of which required the audit to be conducted. The
424	424	comptroller shall complete an audit requested under Section 5.12(b)
425	425	or (c) [of this code] as soon as practicable after the request is
426	426	made.
427	427	SECTION 4.10. Section 41A.12, Tax Code, is amended to read
428	428	as follows:
429	429	Sec. 41A.12. USE OF PROPERTIES AS SAMPLES. An arbitrator's
430	430	determination of market value under this chapter is the market
431	431	value of the property subject to the appeal for the purposes of the
432	432	[annual] study conducted under Section 403.302, Government Code.
433	433	SECTION 4.11. Section 5.101 and Subsection (g), Section
434	434	5.12, Tax Code, are repealed.
435	435	SECTION 4.12. As soon as possible after the effective date
436	436	of this Act, the speaker of the house of representatives,
437	437	lieutenant governor, and comptroller of public accounts shall
438	438	appoint members to the Comptroller's Property Value Study Advisory
439	439	Committee in accordance with Subsection (m), Section 403.302,
440	440	Government Code, as added by this Act.
441	441	SECTION 4.13. The change in law made by this article applies
442	442	only to a study conducted under Section 5.10, Tax Code, or Section
443	443	403.302, Government Code, or a review conducted under Section
444	444	5.102, Tax Code, for a year that begins on or after January 1, 2009.
445	445	A study or review for a year that began before that date is covered
446	446	by the law in effect immediately before the effective date of this
447	447	Act, and the former law is continued in effect for that purpose.
448	448	ARTICLE 5. STUDY REGARDING CIRCUIT BREAKER PROGRAMS
449	449	SECTION 5.01. (a) In this section, "circuit breaker
450	450	program" means a program that limits the amount of ad valorem taxes
451	451	that may be imposed on a residence homestead based on the owner's
452	452	annual income.
453	453	(b) The comptroller of public accounts shall conduct a study
454	454	to examine circuit breaker programs.
455	455	(c) Before collecting information for purposes of the study,
456	456	the comptroller of public accounts shall establish an advisory
457	457	committee to assist the comptroller in conducting the study. The
458	458	advisory committee must be composed of representatives of:
459	459	(1) school districts and other taxing units;
460	460	(2) home builders;
461	461	(3) real estate agents;
462	462	(4) mortgage lenders;
463	463	(5) financial agencies involved in mortgage markets;
464	464	(6) organizations interested in housing for
465	465	low-income and moderate-income households;
466	466	(7) organizations interested in the effect of ad
467	467	valorem taxes on low-income and moderate-income households;
468	468	(8) organizations interested in the effect of public
469	469	policy on low-income and moderate-income households; and
470	470	(9) other appropriate, interested organizations or
471	471	members of the public, as determined by the comptroller.
472	472	(d) The comptroller of public accounts, with the assistance
473	473	of the advisory committee, shall study:
474	474	(1) methods to implement a circuit breaker program,
475	475	including the use of rebates or tax credits;
476	476	(2) methods to create a simple, transparent process
477	477	for the owner of a residence homestead to apply for and receive a
478	478	limitation on the amount of ad valorem taxes that may be imposed on
479	479	the homestead under a circuit breaker program;
480	480	(3) the effects of different designs of a circuit
481	481	breaker program, including the effect of:
482	482	(A) limiting which taxing units are involved;
483	483	(B) basing eligibility on a maximum annual income
484	484	level;
485	485	(C) limiting the dollar amount of the benefit
486	486	that a property owner could receive in the program; and
487	487	(D) basing eligibility on a minimum ratio of
488	488	residence homestead ad valorem taxes imposed to annual income,
489	489	including a progressive scale of minimum ratios based on annual
490	490	income; and
491	491	(4) methods to ensure the reliability of a property
492	492	owner's statement of annual income.
493	493	(e) The comptroller of public accounts and the advisory
494	494	committee shall analyze the information studied and prepare a
495	495	report that:
496	496	(1) describes the parameters, techniques, and legal
497	497	assumptions established under Subsection (d) of this section that
498	498	were used in conducting the study;
499	499	(2) estimates the benefit of alternative designs of a
500	500	circuit breaker program for property owners in various annual
501	501	income brackets and with varying amounts of residence homestead ad
502	502	valorem tax liability, including an estimate of the percentage of
503	503	property owners in various annual income brackets that would
504	504	benefit and the dollar amount of the benefit to those property
505	505	owners;
506	506	(3) estimates the cost to the state and taxing units of
507	507	implementing alternative designs of a circuit breaker program,
508	508	including the percentage by which the amount of ad valorem taxes
509	509	collected would be reduced;
510	510	(4) analyzes the effects on this state's economy of
511	511	implementing a circuit breaker program, including the effect on
512	512	home ownership rates, the residential housing market, and economic
513	513	development; and
514	514	(5) specifies any necessary statutory changes the
515	515	comptroller and the advisory committee determine are necessary to
516	516	implement a circuit breaker program described by the study.
517	517	(f) The comptroller of public accounts may contract with
518	518	appraisal districts, taxing units, or other appropriate
519	519	organizations for assistance and to obtain information necessary to
520	520	conduct the study. A state agency, appraisal district, or taxing
521	521	unit shall assist the comptroller if the comptroller requests
522	522	information or assistance in conducting the study.
523	523	(g) Not later than December 1, 2010, the comptroller of
524	524	public accounts shall submit to the governor, lieutenant governor,
525	525	and speaker of the house of representatives the report prepared
526	526	under Subsection (e) of this section.
527	527	SECTION 5.02. This article expires September 1, 2011.
528	528	SECTION 5.03. This article takes effect September 1, 2009.
529	529	ARTICLE 6. SETTING OF SCHOOL DISTRICT TAX RATES
530	530	SECTION 6.01. Section 26.04, Tax Code, is amended by adding
531	531	Subsection (d-1) to read as follows:
532	532	(d-1) This subsection applies only to a school district.
533	533	Notwithstanding Subsections (a), (b), and (c), on receipt of the
534	534	estimate of the taxable value of property in the district under
535	535	Section 26.01(e):
536	536	(1) the assessor for the district shall:
537	537	(A) determine an estimate of the values specified
538	538	in Subsection (a) for the district using the estimated value
539	539	provided under Section 26.01(e); and
540	540	(B) submit an appraisal roll to the governing
541	541	body of the district showing an estimate of each item of information
542	542	specified by Subsection (b), using the estimated values provided
543	543	under Section 26.01(e) and determined under Paragraph (A); and
544	544	(2) an officer or employee designated by the governing
545	545	body of the school district shall calculate the effective tax rate
546	546	and the rollback tax rate for the district using the estimates
547	547	described by Subdivision (1).
548	548	SECTION 6.02. Section 26.05, Tax Code, is amended by adding
549	549	Subsection (a-1) to read as follows:
550	550	(a-1) This subsection applies only to a school district.
551	551	The governing body of the school district shall adopt a tax rate for
552	552	the current tax year before the later of September 30 or the 60th
553	553	day after the date the estimate of the taxable value of property in
554	554	the district is received under Section 26.01(e) using the values
555	555	estimated under that section and Section 26.04(d-1).
556	556	ARTICLE 7. COMMUNICATIONS WITH APPRAISAL REVIEW BOARD MEMBERS
557	557	SECTION 7.01. Subsection (c), Section 6.411, Tax Code, is
558	558	amended to read as follows:
559	559	(c) Except for communications described by Section
560	560	41.66(f)(3), this [This] section does not apply to communications
561	561	that do not discuss the specific evidence, argument, facts, merits,
562	562	or property involved in a hearing currently pending before the
563	563	appraisal review board or to communications between the board and
564	564	its legal counsel.
565	565	SECTION 7.02. Subsection (f), Section 41.66, Tax Code, is
566	566	amended to read as follows:
567	567	(f) A member of the appraisal review board may not
568	568	communicate with another person concerning:
569	569	(1) the evidence, argument, facts, merits, or any
570	570	other matters related to an owner's protest, except during the
571	571	hearing on the protest; [or]
572	572	(2) a property that is the subject of the protest,
573	573	except during a hearing on another protest or other proceeding
574	574	before the board at which the property is compared to other property
575	575	or used in a sample of properties; or
576	576	(3) a factual or hypothetical situation that is
577	577	substantially similar to a situation that is the subject of the
578	578	protest, except during the hearing on the protest.
579	579	SECTION 7.03. (a) The change in law made by this article
580	580	applies only to an offense committed on or after the effective date
581	581	of this article. For purposes of this section, an offense is
582	582	committed before the effective date of this article if any element
583	583	of the offense occurs before that date.
584	584	(b) An offense committed before the effective date of this
585	585	article is covered by the law in effect when the offense was
586	586	committed, and the former law is continued in effect for that
587	587	purpose.
588	588	ARTICLE 8. RESTRICTION ON AUTHORITY OF APPRAISAL REVIEW BOARD TO
589	589	RETAIN LEGAL COUNSEL
590	590	SECTION 8.01. Section 6.43, Tax Code, is amended to read as
591	591	follows:
592	592	Sec. 6.43. PERSONNEL. (a) The appraisal review board may
593	593	employ legal counsel as provided by the district budget or use the
594	594	services of the county attorney and may use the staff of the
595	595	appraisal office for clerical assistance.
596	596	(b) The appraisal review board may not employ or retain a
597	597	person to serve as legal counsel for the board if the person serves
598	598	as legal counsel for the appraisal district or chief appraiser.
599	599	This subsection does not prevent the appraisal review board from
600	600	using the services of the county attorney as authorized by
601	601	Subsection (a).
602	602	ARTICLE 9. PILOT PROGRAM IN CERTAIN COUNTIES
603	603	SECTION 9.01. Chapter 2003, Government Code, is amended by
604	604	adding Subchapter Z to read as follows:
605	605	SUBCHAPTER Z. PILOT PROGRAM: APPEALS FROM APPRAISAL REVIEW BOARD
606	606	DETERMINATIONS IN CERTAIN COUNTIES
607	607	Sec. 2003.901. PILOT PROGRAM. (a) Not later than January
608	608	1, 2010, the office shall develop a pilot program under which, as an
609	609	alternative to filing an appeal under Section 42.01, Tax Code, a
610	610	property owner may appeal to the office an appraisal review board
611	611	order determining a protest concerning the appraised or market
612	612	value of property brought under Section 41.41(a)(1) or (2), Tax
613	613	Code, if the appraised or market value, as applicable, of the
614	614	property that was the subject of the protest, as determined by the
615	615	board order, is more than $1 million.
616	616	(b) The pilot program shall be developed and implemented in
617	617	conformance with the provisions of this subchapter.
618	618	Sec. 2003.902. COUNTIES INCLUDED. The pilot program shall
619	619	be implemented in Bexar, Dallas, El Paso, Harris, Tarrant, and
620	620	Travis Counties for a three-year period beginning with the ad
621	621	valorem tax year that begins January 1, 2010.
622	622	Sec. 2003.903. APPLICABILITY TO REAL AND PERSONAL PROPERTY.
623	623	The pilot program must be applicable to a determination of the
624	624	appraised or market value made by an appraisal review board in
625	625	connection with real or personal property, other than industrial
626	626	property or minerals.
627	627	Sec. 2003.904. EDUCATION AND TRAINING OF ADMINISTRATIVE LAW
628	628	JUDGES. (a) An administrative law judge assigned to hear an
629	629	appeal brought under this subchapter must have knowledge of:
630	630	(1) each of the appraisal methods a chief appraiser
631	631	may use to determine the appraised value or the market value of
632	632	property under Chapter 23, Tax Code; and
633	633	(2) the proper method for determining an appeal of a
634	634	protest, including a protest brought on the ground of unequal
635	635	appraisal.
636	636	(b) An administrative law judge is entitled to attend one or
637	637	more training and education courses under Sections 5.04 and 5.041,
638	638	Tax Code, to receive a copy of the materials used in a course, or
639	639	both, without charge.
640	640	Sec. 2003.905. NOTICE OF APPEAL TO OFFICE. (a) To appeal
641	641	an appraisal review board order to the office under this
642	642	subchapter, a property owner must file with the chief appraiser of
643	643	the appraisal district not later than the 15th day after the date
644	644	the property owner receives notice of the order:
645	645	(1) a completed notice of appeal to the office in the
646	646	form prescribed by Section 2003.906; and
647	647	(2) a filing fee in the amount of $300, made payable to
648	648	the office.
649	649	(b) As soon as practicable after receipt of a notice of
650	650	appeal, the chief appraiser for the appraisal district shall:
651	651	(1) indicate, where appropriate, those entries in the
652	652	records that are subject to the appeal;
653	653	(2) submit the notice of appeal and filing fee to the
654	654	office; and
655	655	(3) request the appointment of a qualified
656	656	administrative law judge to hear the appeal.
657	657	Sec. 2003.906. CONTENTS OF NOTICE OF APPEAL. The chief
658	658	administrative law judge by rule shall prescribe the form of a
659	659	notice of appeal under this subchapter. The form must require the
660	660	property owner to provide:
661	661	(1) a copy of the order of the appraisal review board;
662	662	(2) a brief statement that explains the basis for the
663	663	property owner's appeal of the order; and
664	664	(3) a statement of the property owner's opinion of the
665	665	appraised or market value, as applicable, of the property that is
666	666	the subject of the appeal.
667	667	Sec. 2003.907. NOTICE TO PROPERTY OWNERS. An appraisal
668	668	review board of an appraisal district established in a county
669	669	listed in Section 2003.902 that delivers notice of issuance of an
670	670	order described by Section 2003.901 pertaining to property
671	671	described by Section 2003.903 and a copy of the order to a property
672	672	owner as required by Section 41.47, Tax Code, shall include with the
673	673	notice and copy:
674	674	(1) a notice of the property owner's rights under this
675	675	subchapter; and
676	676	(2) a copy of the notice of appeal prescribed by
677	677	Section 2003.906.
678	678	Sec. 2003.908. DESIGNATION OF ADMINISTRATIVE LAW JUDGE.
679	679	(a) As soon as practicable after the office receives a notice of
680	680	appeal and the filing fee, the office shall designate an
681	681	administrative law judge to hear the appeal.
682	682	(b) As soon as practicable after the administrative law
683	683	judge is designated, the administrative law judge shall set the
684	684	date, time, and place of the hearing on the appeal.
685	685	(c) The hearing must be held in a building or facility that
686	686	is owned or partly or entirely leased by the office and located in
687	687	the county in which the applicable appraisal district is
688	688	established, except that if the office does not own or lease a
689	689	building or facility in the county, the hearing may be held in any
690	690	public or privately owned building or facility in that county,
691	691	preferably a building or facility in which the office regularly
692	692	conducts business. The hearing may not be held in a building or
693	693	facility that is owned, leased, or under the control of the
694	694	appraisal district.
695	695	Sec. 2003.909. SCOPE OF APPEAL. An appeal is by trial de
696	696	novo. The administrative law judge may not admit into evidence the
697	697	fact of previous action by the appraisal review board, except as
698	698	otherwise provided by this subchapter.
699	699	Sec. 2003.910. REPRESENTATION OF PARTIES. (a) A property
700	700	owner may be represented at the hearing by:
701	701	(1) the property owner;
702	702	(2) an attorney who is licensed in this state;
703	703	(3) a certified public accountant; or
704	704	(4) any other person who is not otherwise prohibited
705	705	from appearing in a hearing held by the office.
706	706	(b) The appraisal district may be represented by the chief
707	707	appraiser or a person designated by the chief appraiser.
708	708	Sec. 2003.911. DETERMINATION OF ADMINISTRATIVE LAW JUDGE.
709	709	(a) As soon as practicable, but not later than the 30th day after
710	710	the date the hearing is concluded, the administrative law judge
711	711	shall issue a determination and send a copy to the property owner
712	712	and the chief appraiser.
713	713	(b) The determination:
714	714	(1) must include a determination of the appraised or
715	715	market value, as applicable, of the property that is the subject of
716	716	the appeal;
717	717	(2) must state the administrative law judge's
718	718	rationale for the determination of value;
719	719	(3) may include any remedy or relief a court may order
720	720	under Chapter 42, Tax Code, in an appeal relating to the appraised
721	721	or market value of property; and
722	722	(4) shall specify whether the appraisal district or
723	723	the property owner is required to pay the costs of the hearing and
724	724	the amount of those costs.
725	725	(c) If the administrative law judge determines that the
726	726	appraised or market value, as applicable, of the property that is
727	727	the subject of the appeal is nearer to the property owner's opinion
728	728	of the appraised or market value, as applicable, of the property as
729	729	stated in the request for the hearing submitted by the property
730	730	owner than the value determined by the appraisal review board:
731	731	(1) the office, on receipt of a copy of the
732	732	determination, shall refund the property owner's filing fee;
733	733	(2) the appraisal district, on receipt of a copy of the
734	734	determination, shall pay the costs of the appeal as specified in the
735	735	determination; and
736	736	(3) the chief appraiser shall correct the appraised or
737	737	market value, as applicable, of the property as shown in the
738	738	appraisal roll to reflect the administrative law judge's
739	739	determination.
740	740	(d) If the administrative law judge determines that the
741	741	appraised or market value, as applicable, of the property that is
742	742	the subject of the appeal is not nearer to the property owner's
743	743	opinion of the appraised or market value, as applicable, of the
744	744	property as stated in the property owner's request for a hearing
745	745	than the value determined by the appraisal review board:
746	746	(1) the office, on receipt of a copy of the
747	747	determination, shall retain the property owner's filing fee;
748	748	(2) the chief appraiser shall correct the appraised or
749	749	market value, as applicable, of the property as shown in the
750	750	appraisal roll to reflect the administrative law judge's
751	751	determination if the value as determined by the administrative law
752	752	judge is less than the value as determined by the appraisal review
753	753	board; and
754	754	(3) the property owner shall pay the difference
755	755	between the costs of the appeal as specified in the determination
756	756	and the property owner's filing fee.
757	757	(e) Notwithstanding Subsection (a), the office by rule may
758	758	implement a process under which:
759	759	(1) the administrative law judge issues a proposal for
760	760	determination to the parties;
761	761	(2) the parties are given a reasonable period in which
762	762	to make written objections to the proposal; and
763	763	(3) the administrative law judge is authorized to take
764	764	into account those written objections before issuing a final
765	765	determination.
766	766	Sec. 2003.912. PAYMENT OF TAXES PENDING APPEAL. (a) The
767	767	pendency of an appeal to the office does not affect the delinquency
768	768	date for the taxes on the property subject to the appeal. A
769	769	property owner who appeals an appraisal review board order to the
770	770	office shall pay taxes on the property subject to the appeal in an
771	771	amount equal to the amount of taxes due on the portion of the
772	772	taxable value of the property that is not in dispute. If the final
773	773	determination of the appeal decreases the property owner's tax
774	774	liability to an amount less than the amount of taxes paid, each
775	775	taxing unit shall refund to the property owner the difference
776	776	between the amount of taxes paid and the amount of taxes for which
777	777	the property owner is liable.
778	778	(b) A property owner may not appeal to the office if the
779	779	taxes on the property subject to the appeal are delinquent. An
780	780	administrative law judge who determines that the taxes on the
781	781	property subject to an appeal are delinquent shall dismiss the
782	782	pending appeal with prejudice. If an appeal is dismissed under this
783	783	subsection, the office shall retain the property owner's filing
784	784	fee.
785	785	Sec. 2003.913. JUDICIAL APPEAL. (a) A final order of an
786	786	administrative law judge determining an appeal brought under this
787	787	subchapter may be appealed to a district court in the manner
788	788	provided by Chapter 42, Tax Code, except that a party is not
789	789	entitled to a jury trial.
790	790	(b) A chief appraiser may not bring an appeal unless the
791	791	board of directors of the appraisal district votes to allow the
792	792	appeal.
793	793	(c) Except as provided by Subsection (a), to the extent that
794	794	they can be made applicable, the provisions of Chapter 42, Tax Code,
795	795	also apply to an appeal of a final order of an administrative law
796	796	judge determining an appeal brought under this subchapter.
797	797	Sec. 2003.914. EFFECT ON RIGHT TO JUDICIAL APPEAL. An
798	798	appeal to the office under this subchapter does not prevent the
799	799	property owner from seeking judicial review of the order of the
800	800	appraisal review board. The period in which a petition for review
801	801	must be filed under Section 42.21, Tax Code, is tolled beginning on
802	802	the date the notice of appeal under this subchapter is filed and
803	803	ending on the date the administrative law judge issues the judge's
804	804	determination.
805	805	Sec. 2003.915. REPORT TO LEGISLATURE. Not later than
806	806	January 1, 2013, the office and the chief appraisers of the
807	807	appraisal districts established in the counties in which the pilot
808	808	program is implemented shall submit a report to the legislature
809	809	that includes:
810	810	(1) the number of appeals for property in each
811	811	appraisal district;
812	812	(2) the number of appeals that were settled before
813	813	being heard by an administrative law judge;
814	814	(3) the number of appeals brought on the ground of
815	815	excessive appraisal;
816	816	(4) the number of appeals brought on the ground of
817	817	unequal appraisal;
818	818	(5) the number of judicial appeals of an
819	819	administrative law judge's determination for each appraisal
820	820	district; and
821	821	(6) any recommendations for future legislative action
822	822	that the office or the chief appraisers consider appropriate.
823	823	Sec. 2003.916. EXPIRATION. This subchapter expires January
824	824	1, 2013.
825	825	ARTICLE 10. APPLICABILITY; EFFECTIVE DATE
826	826	SECTION 10.01. This Act applies only to an ad valorem tax
827	827	year that begins on or after the effective date of this Act.
828	828	SECTION 10.02. Except as otherwise provided by this Act,
829	829	this Act takes effect January 1, 2010.