By: Williams, Patrick
Shapleigh
A BILL TO BE ENTITLED
AN ACT
relating to ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. CONSOLIDATED APPRAISAL REVIEW BOARDS
SECTION 1.01. Section 6.41, Tax Code, is amended by adding
Subsections (g) and (h) to read as follows:
(g) Subsection (a) does not preclude the boards of directors
of two or more adjoining appraisal districts from providing for the
operation of a consolidated appraisal review board by interlocal
contract.
(h) When adjoining appraisal districts by interlocal
contract have provided for the operation of a consolidated
appraisal review board:
(1) a reference in this or another section of this code
to the appraisal district means the adjoining appraisal districts;
(2) a reference in this or another section of this code
to the appraisal district board of directors means the boards of
directors of the adjoining appraisal districts;
(3) a provision of this code that applies to an
appraisal review board also applies to the consolidated appraisal
review board; and
(4) a reference in this code to the appraisal review
board shall be construed to also refer to the consolidated
appraisal review board.
SECTION 1.02. This article takes effect only if the
constitutional amendment proposed by the 81st Legislature, Regular
Session, 2009, authorizing the legislature to authorize a single
board of equalization for two or more adjoining appraisal entities
that elect to provide for consolidated equalizations is approved by
the voters. If that amendment is not approved by the voters, this
article has no effect.
ARTICLE 2. APPRAISAL OF RESIDENCE HOMESTEADS
SECTION 2.01. Section 23.01, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) The market value of a residence homestead shall be
determined solely on the basis of the property's value as a
residence homestead, regardless of whether the residential use of
the property by the owner is considered to be the highest and best
use of the property.
SECTION 2.02. (a) Subject to Subsection (b) of this
section, this article takes effect only if the constitutional
amendment proposed by the 81st Legislature, Regular Session, 2009,
authorizing the legislature to provide for the ad valorem taxation
of a residence homestead solely on the basis of the property's value
as a residence homestead is approved by the voters. If that
amendment is not approved by the voters, this article has no effect.
(b) This article takes effect only if a specific
appropriation to the Texas Education Agency is included in Senate
Bill No. 1 (General Appropriations Act), Acts of the 81st
Legislature, Regular Session, 2009, intended to offset the cost to
the Foundation School Program resulting from the implementation of
this article.
ARTICLE 3. TAXPAYER OMBUDSMAN
SECTION 3.01. Subsection (d), Section 6.04, Tax Code, is
amended to read as follows:
(d) The board shall develop and implement policies that
provide the public with reasonable opportunity to appear before the
board to speak on any issue under the jurisdiction of the board.
Reasonable time shall be provided during each board meeting for
public comment on appraisal district and appraisal review board
policies and procedures, and a report from the taxpayer ombudsman
[liaison officer] if one is required by Section 6.052.
SECTION 3.02. Section 6.052, Tax Code, is amended to read as
follows:
Sec. 6.052. TAXPAYER OMBUDSMAN [LIAISON OFFICER]. (a) The
board of directors for an appraisal district created for a county
with a population of more than 50,000 [125,000] shall appoint a
taxpayer ombudsman [liaison officer] who shall serve at the
pleasure of the board. The taxpayer ombudsman [liaison officer]
shall administer the public access functions required by Sections
6.04(d), (e), and (f), and is responsible for resolving disputes
not involving matters that may be protested under Section 41.41.
(b) The taxpayer ombudsman shall [liaison officer may]
provide information and materials designed to assist property
owners in understanding the appraisal process, protest procedures,
and related matters.
(c) The taxpayer ombudsman [liaison officer] shall report
to the board at each meeting on the status of all complaints filed
with the board under Section 6.04(g).
(d) The taxpayer ombudsman [liaison officer] is entitled to
compensation as provided by the budget adopted by the board of
directors.
(d-1) The appraisal review board shall provide the taxpayer
ombudsman with the contact information of each property owner who
files a notice of protest under Chapter 41 with the board. On
receipt of the information, the taxpayer ombudsman shall contact
the property owner to inform the property owner of the services
provided by the ombudsman and provide the business address and
telephone number of the ombudsman.
(e) The chief appraiser or any other person who performs
appraisal services for the appraisal district for compensation is
not eligible to be the taxpayer ombudsman [liaison officer] for the
appraisal district.
ARTICLE 4. STUDIES CONDUCTED BY COMPTROLLER
SECTION 4.01. Subdivisions (1), (2), and (4), Section
403.3011, Government Code, are amended to read as follows:
(1) "Study" ["Annual study"] means a study conducted
under Section 403.302.
(2) "Eligible school district" means a school district
for which the comptroller has determined the following:
(A) in the most recent [annual] study, the local
value is invalid under Section 403.302(c) and does not exceed the
state value for the school district determined in the [annual]
study;
(B) in the two studies [annual study for each of
the two years] preceding the most recent [annual] study, the school
district's local value was valid under Section 403.302(c); [and]
(C) in the most recent [annual] study, the
aggregate local value of all of the categories of property sampled
by the comptroller is not less than 90 percent of the lower limit of
the margin of error as determined by the comptroller of the
aggregate value as determined by the comptroller of all of the
categories of property sampled by the comptroller; and
(D) the appraisal district that appraises
property for the school district was in compliance with the scoring
requirement of the comptroller's most recent review of the
appraisal district conducted under Section 5.102, Tax Code.
(4) "State value" means the value of property in a
school district as determined in a [the annual] study.
SECTION 4.02. Section 403.302, Government Code, is amended
by amending Subsections (a), (c), (c-1), (f), (h), (i), and (l) and
adding Subsections (a-1), (a-2), (m), (n), and (o) to read as
follows:
(a) The comptroller shall conduct a [an annual] study using
comparable sales and generally accepted auditing and sampling
techniques to determine the total taxable value of all property in
each school district. The study shall determine the taxable value
of all property and of each category of property in the district and
the productivity value of all land that qualifies for appraisal on
the basis of its productive capacity and for which the owner has
applied for and received a productivity appraisal. The comptroller
shall make appropriate adjustments in the study to account for
actions taken under Chapter 41, Education Code.
(a-1) The comptroller shall conduct a study:
(1) at least every two years in each school district
for which the most recent study resulted in a determination by the
comptroller that the school district's local value was valid; and
(2) each year in a school district for which the most
recent study resulted in a determination by the comptroller that
the school district's local value was not valid.
(a-2) If in any year the comptroller does not conduct a
study, the school district's local value for that year is
considered to be valid.
(c) If after conducting the [annual] study the comptroller
determines that the local value for a school district is valid, the
local value is presumed to represent taxable value for the school
district. In the absence of that presumption, taxable value for a
school district is the state value for the school district
determined by the comptroller under Subsections (a) and (b) unless
the local value exceeds the state value, in which case the taxable
value for the school district is the district's local value. In
determining whether the local value for a school district is valid,
the comptroller shall use a margin of error that does not exceed
five percent unless the comptroller determines that the size of the
sample of properties necessary to make the determination makes the
use of such a margin of error not feasible, in which case the
comptroller may use a larger margin of error.
(c-1) This subsection applies only to a school district
whose central administrative office is located in a county with a
population of 9,000 or less and a total area of more than 6,000
square miles. If after conducting the [annual] study for a tax
year the comptroller determines that the local value for a school
district is not valid, the comptroller shall adjust the taxable
value determined under Subsections (a) and (b) as follows:
(1) for each category of property sampled and tested
by the comptroller in the school district, the comptroller shall
use the weighted mean appraisal ratio determined by the study,
unless the ratio is more than four percentage points lower than the
weighted mean appraisal ratio determined by the comptroller for
that category of property in the immediately preceding study, in
which case the comptroller shall use the weighted mean appraisal
ratio determined in the immediately preceding study minus four
percentage points;
(2) the comptroller shall use the category weighted
mean appraisal ratios as adjusted under Subdivision (1) to
establish a value estimate for each category of property sampled
and tested by the comptroller in the school district; and
(3) the value estimates established under Subdivision
(2), together with the local tax roll value for any categories not
sampled and tested by the comptroller, less total deductions
determined by the comptroller, determine the taxable value for the
school district.
(f) The study shall determine the values as of January 1 of
each year:
(1) for a school district in which a study was
conducted according to the results of the study; and
(2) for a school district in which a study was not
conducted according to the market value determined by the appraisal
district that appraises property for the district, less the amounts
specified by Subsection (d).
(h) On request of the commissioner of education or a school
district, the comptroller may audit the total taxable value of
property in a school district and may revise the [annual] study
findings. The request for audit is limited to corrections and
changes in a school district's appraisal roll that occurred after
preliminary certification of the [annual] study findings by the
comptroller. Except as otherwise provided by this subsection, the
request for audit must be filed with the comptroller not later than
the third anniversary of the date of the final certification of the
[annual] study findings. The request for audit may be filed not
later than the first anniversary of the date the chief appraiser
certifies a change to the appraisal roll if the chief appraiser
corrects the appraisal roll under Section 25.25 or 42.41, Tax Code,
and the change results in a material reduction in the total taxable
value of property in the school district. The comptroller shall
certify the findings of the audit to the commissioner of education.
(i) If the comptroller determines in the [annual] study that
the market value of property in a school district as determined by
the appraisal district that appraises property for the school
district, less the total of the amounts and values listed in
Subsection (d) as determined by that appraisal district, is valid,
the comptroller, in determining the taxable value of property in
the school district under Subsection (d), shall for purposes of
Subsection (d)(14) subtract from the market value as determined by
the appraisal district of residence homesteads to which Section
23.23, Tax Code, applies the amount by which that amount exceeds the
appraised value of those properties as calculated by the appraisal
district under Section 23.23, Tax Code. If the comptroller
determines in the [annual] study that the market value of property
in a school district as determined by the appraisal district that
appraises property for the school district, less the total of the
amounts and values listed in Subsection (d) as determined by that
appraisal district, is not valid, the comptroller, in determining
the taxable value of property in the school district under
Subsection (d), shall for purposes of Subsection (d)(14) subtract
from the market value as estimated by the comptroller of residence
homesteads to which Section 23.23, Tax Code, applies the amount by
which that amount exceeds the appraised value of those properties
as calculated by the appraisal district under Section 23.23, Tax
Code.
(l) If after conducting the [annual] study for [the year
2003 or] a [subsequent] year the comptroller determines that a
school district is an eligible school district, for that year and
the following year the taxable value for the school district is the
district's local value. [Not later than the first anniversary of
the date of the determination that a school district is an eligible
school district, the comptroller shall complete an appraisal
standards review as provided by Section 5.102, Tax Code, of each
appraisal district that appraises property for the school
district.]
(m) The Comptroller's Property Value Study Advisory
Committee is created. The committee is composed of:
(1) one member of the house of representatives,
appointed by the speaker of the house of representatives;
(2) one member of the senate, appointed by the
lieutenant governor;
(3) two members who represent appraisal districts,
appointed by the comptroller;
(4) two members who represent school districts,
appointed by the comptroller; and
(5) three members appointed by the comptroller who are
residents of this state and are school district taxpayers or have
expertise in school district taxation or ratio studies.
(n) Chapter 2110 does not apply to the size, composition, or
duration of the Comptroller's Property Value Study Advisory
Committee.
(o) The comptroller shall adopt rules governing the conduct
of the study after consultation with the Comptroller's Property
Value Study Advisory Committee.
SECTION 4.03. The heading to Section 403.304, Government
Code, is amended to read as follows:
Sec. 403.304. COOPERATION WITH COMPTROLLER;
CONFIDENTIALITY.
SECTION 4.04. Section 403.304, Government Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A school district, appraisal district, or other
governmental entity in this state shall promptly comply with an
oral or written request from the comptroller for information to be
used in conducting a study, including information that is made
confidential by Chapter 552 of this code, Section 22.27, Tax Code,
or another law of this state.
(a-1) All information the comptroller obtains from a
person, other than a government or governmental subdivision or
agency, under an assurance that the information will be kept
confidential, in the course of conducting a study [of school
district values] is confidential and may not be disclosed except as
provided in Subsection (b).
SECTION 4.05. Subsection (c), Section 5.07, Tax Code, is
amended to read as follows:
(c) The comptroller shall also prescribe a uniform record
system to be used by all appraisal districts for the purpose of
submitting data to be used in the [annual] studies required by
Section 5.10 of this code and by Section 403.302, Government Code.
The record system shall include a compilation of information
concerning sales of real property within the boundaries of the
appraisal district. The sales information maintained in the
uniform record system shall be submitted annually in a form
prescribed by the comptroller.
SECTION 4.06. Subsection (a), Section 5.10, Tax Code, is
amended to read as follows:
(a) At least once every two years, the [The] comptroller
shall conduct a [an annual] study in each appraisal district to
determine the degree of uniformity of and the median level of
appraisals by the appraisal district within each major category of
property. The comptroller shall publish a report of the findings of
the study, including in the report the median levels of appraisal
for each major category of property, the coefficient of dispersion
around the median level of appraisal for each major category of
property, and any other standard statistical measures that the
comptroller considers appropriate. In conducting the study, the
comptroller shall apply appropriate standard statistical analysis
techniques to data collected as part of the [annual] study of school
district taxable values required by Section 403.302, Government
Code.
SECTION 4.07. Section 5.102, Tax Code, is amended to read as
follows:
Sec. 5.102. REVIEW OF APPRAISAL DISTRICTS [STANDARDS].
(a) At least once every two years, the [The] comptroller shall
review the governance of each appraisal district, taxpayer
assistance provided, and the operating and appraisal standards,
procedures, and methodology used by each appraisal district [that
appraises property for an eligible school district as defined by
Section 403.3011, Government Code,] to determine compliance with
generally accepted [appraisal] standards, procedures, and
methodology [and practices]. After consultation with the advisory
committee created under Section 403.302, Government Code, the [The]
comptroller by rule may establish procedures and standards for
conducting and scoring the review.
(b) In conducting the review, the comptroller is entitled to
access to all records and reports of the appraisal district, to copy
or print any record or report of the appraisal district, and to the
assistance of the appraisal district's officers and employees.
(c) At the conclusion of the review, the comptroller shall,
in writing, notify the appraisal district concerning its
performance in the review. If the review results in a finding that
an appraisal district is not in compliance with generally accepted
[appraisal] standards, procedures, and methodology [and
practices], the comptroller shall deliver a report that details the
comptroller's findings and recommendations for improvement to:
(1) the appraisal 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
board of directors of the appraisal district failed to take
remedial action reasonably designed to ensure substantial
compliance with each recommendation in the report before the first
anniversary of the date the report was issued, the comptroller
shall notify the Board of Tax Professional Examiners, or a
successor to the board, which shall take action necessary to ensure
that the recommendations in the report are implemented as soon as
practicable [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].
(e) Before February 1 of the year following the year in
which the Board of Tax Professional Examiners, or its successor,
takes action under Subsection (d), and with the assistance of the
comptroller, the board shall determine whether the recommendations
in the most recent report have been substantially implemented. The
presiding officer of the board shall notify the chief appraiser and
the board of directors of the appraisal district in writing of the
board's determination.
SECTION 4.08. Subsections (a), (d), and (e), Section 5.12,
Tax Code, are amended to read as follows:
(a) The comptroller shall audit the performance of an
appraisal district if one or more of the following conditions exist
according to each of two consecutive [annual] studies conducted by
the comptroller under Section 5.10 [of this code], regardless of
whether the prescribed condition or conditions that exist are the
same for each of those studies:
(1) the overall median level of appraisal for all
property in the district for which the comptroller determines a
median level of appraisal is less than 0.75;
(2) the coefficient of dispersion around the overall
median level of appraisal of the properties used to determine the
overall median level of appraisal for all property in the district
for which the comptroller determines a median level of appraisal
exceeds 0.30; or
(3) the difference between the median levels of
appraisal for any two classes of property in the district for which
the comptroller determines a median level of appraisal is more than
0.45.
(d) A request for a performance audit of an appraisal
district may not be made under Subsection (b) or (c) [of this
section] if according to each of the two most recently published
[annual] studies conducted by the comptroller under Section 5.10
[of this code]:
(1) the overall median level of appraisal for all
property in the district for which the comptroller determines a
median level of appraisal is more than 0.90 and less than 1.10;
(2) the coefficient of dispersion around the overall
median level of appraisal of the properties used to determine the
overall median level of appraisal for all property in the district
for which the comptroller determines a median level of appraisal is
less than 0.15; and
(3) the difference between the highest and lowest
median levels of appraisal in the district for the classes of
property for which the comptroller determines a median level of
appraisal is less than 0.20.
(e) A request for a performance audit of an appraisal
district may not be made under Subsection (b) or (c) [of this
section]:
(1) during the two years immediately following the
publication of the second of two consecutive [annual] studies
according to which the comptroller is required to conduct an audit
of the district under Subsection (a) [of this section]; [or]
(2) during the year immediately following the date the
results of an audit of the district conducted by the comptroller
under Subsection (a) [of this section] are reported to the chief
appraiser of the district; or
(3) during a year in which the comptroller is
conducting a review of the district under Section 5.102.
SECTION 4.09. Subsection (a), Section 5.13, Tax Code, is
amended to read as follows:
(a) The comptroller shall complete an audit required by
Section 5.12(a) [of this code] within two years after the date of
the publication of the second of the two [annual] studies the
results of which required the audit to be conducted. The
comptroller shall complete an audit requested under Section 5.12(b)
or (c) [of this code] as soon as practicable after the request is
made.
SECTION 4.10. Section 41A.12, Tax Code, is amended to read
as follows:
Sec. 41A.12. USE OF PROPERTIES AS SAMPLES. An arbitrator's
determination of market value under this chapter is the market
value of the property subject to the appeal for the purposes of the
[annual] study conducted under Section 403.302, Government Code.
SECTION 4.11. Section 5.101 and Subsection (g), Section
5.12, Tax Code, are repealed.
SECTION 4.12. As soon as possible after the effective date
of this Act, the speaker of the house of representatives,
lieutenant governor, and comptroller of public accounts shall
appoint members to the Comptroller's Property Value Study Advisory
Committee in accordance with Subsection (m), Section 403.302,
Government Code, as added by this Act.
SECTION 4.13. The change in law made by this article applies
only to a study conducted under Section 5.10, Tax Code, or Section
403.302, Government Code, or a review conducted under Section
5.102, Tax Code, for a year that begins on or after January 1, 2009.
A study or review for a year that began before that date is covered
by the law in effect immediately before the effective date of this
Act, and the former law is continued in effect for that purpose.
ARTICLE 5. STUDY REGARDING CIRCUIT BREAKER PROGRAMS
SECTION 5.01. (a) In this section, "circuit breaker
program" means a program that limits the amount of ad valorem taxes
that may be imposed on a residence homestead based on the owner's
annual income.
(b) The comptroller of public accounts shall conduct a study
to examine circuit breaker programs.
(c) Before collecting information for purposes of the study,
the comptroller of public accounts shall establish an advisory
committee to assist the comptroller in conducting the study. The
advisory committee must be composed of representatives of:
(1) school districts and other taxing units;
(2) home builders;
(3) real estate agents;
(4) mortgage lenders;
(5) financial agencies involved in mortgage markets;
(6) organizations interested in housing for
low-income and moderate-income households;
(7) organizations interested in the effect of ad
valorem taxes on low-income and moderate-income households;
(8) organizations interested in the effect of public
policy on low-income and moderate-income households; and
(9) other appropriate, interested organizations or
members of the public, as determined by the comptroller.
(d) The comptroller of public accounts, with the assistance
of the advisory committee, shall study:
(1) methods to implement a circuit breaker program,
including the use of rebates or tax credits;
(2) methods to create a simple, transparent process
for the owner of a residence homestead to apply for and receive a
limitation on the amount of ad valorem taxes that may be imposed on
the homestead under a circuit breaker program;
(3) the effects of different designs of a circuit
breaker program, including the effect of:
(A) limiting which taxing units are involved;
(B) basing eligibility on a maximum annual income
level;
(C) limiting the dollar amount of the benefit
that a property owner could receive in the program; and
(D) basing eligibility on a minimum ratio of
residence homestead ad valorem taxes imposed to annual income,
including a progressive scale of minimum ratios based on annual
income; and
(4) methods to ensure the reliability of a property
owner's statement of annual income.
(e) The comptroller of public accounts and the advisory
committee shall analyze the information studied and prepare a
report that:
(1) describes the parameters, techniques, and legal
assumptions established under Subsection (d) of this section that
were used in conducting the study;
(2) estimates the benefit of alternative designs of a
circuit breaker program for property owners in various annual
income brackets and with varying amounts of residence homestead ad
valorem tax liability, including an estimate of the percentage of
property owners in various annual income brackets that would
benefit and the dollar amount of the benefit to those property
owners;
(3) estimates the cost to the state and taxing units of
implementing alternative designs of a circuit breaker program,
including the percentage by which the amount of ad valorem taxes
collected would be reduced;
(4) analyzes the effects on this state's economy of
implementing a circuit breaker program, including the effect on
home ownership rates, the residential housing market, and economic
development; and
(5) specifies any necessary statutory changes the
comptroller and the advisory committee determine are necessary to
implement a circuit breaker program described by the study.
(f) The comptroller of public accounts may contract with
appraisal districts, taxing units, or other appropriate
organizations for assistance and to obtain information necessary to
conduct the study. A state agency, appraisal district, or taxing
unit shall assist the comptroller if the comptroller requests
information or assistance in conducting the study.
(g) Not later than December 1, 2010, the comptroller of
public accounts shall submit to the governor, lieutenant governor,
and speaker of the house of representatives the report prepared
under Subsection (e) of this section.
SECTION 5.02. This article expires September 1, 2011.
SECTION 5.03. This article takes effect September 1, 2009.
ARTICLE 6. SETTING OF SCHOOL DISTRICT TAX RATES
SECTION 6.01. Section 26.04, Tax Code, is amended by adding
Subsection (d-1) to read as follows:
(d-1) This subsection applies only to a school district.
Notwithstanding Subsections (a), (b), and (c), on receipt of the
estimate of the taxable value of property in the district under
Section 26.01(e):
(1) the assessor for the district shall:
(A) determine an estimate of the values specified
in Subsection (a) for the district using the estimated value
provided under Section 26.01(e); and
(B) submit an appraisal roll to the governing
body of the district showing an estimate of each item of information
specified by Subsection (b), using the estimated values provided
under Section 26.01(e) and determined under Paragraph (A); and
(2) an officer or employee designated by the governing
body of the school district shall calculate the effective tax rate
and the rollback tax rate for the district using the estimates
described by Subdivision (1).
SECTION 6.02. Section 26.05, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) This subsection applies only to a school district.
The governing body of the school district shall adopt a tax rate for
the current tax year before the later of September 30 or the 60th
day after the date the estimate of the taxable value of property in
the district is received under Section 26.01(e) using the values
estimated under that section and Section 26.04(d-1).
ARTICLE 7. COMMUNICATIONS WITH APPRAISAL REVIEW BOARD MEMBERS
SECTION 7.01. Subsection (c), Section 6.411, Tax Code, is
amended to read as follows:
(c) Except for communications described by Section
41.66(f)(3), this [This] section does not apply to communications
that do not discuss the specific evidence, argument, facts, merits,
or property involved in a hearing currently pending before the
appraisal review board or to communications between the board and
its legal counsel.
SECTION 7.02. Subsection (f), Section 41.66, Tax Code, is
amended to read as follows:
(f) A member of the appraisal review board may not
communicate with another person concerning:
(1) the evidence, argument, facts, merits, or any
other matters related to an owner's protest, except during the
hearing on the protest; [or]
(2) a property that is the subject of the protest,
except during a hearing on another protest or other proceeding
before the board at which the property is compared to other property
or used in a sample of properties; or
(3) a factual or hypothetical situation that is
substantially similar to a situation that is the subject of the
protest, except during the hearing on the protest.
SECTION 7.03. (a) The change in law made by this article
applies only to an offense committed on or after the effective date
of this article. For purposes of this section, an offense is
committed before the effective date of this article if any element
of the offense occurs before that date.
(b) An offense committed before the effective date of this
article is covered by the law in effect when the offense was
committed, and the former law is continued in effect for that
purpose.
ARTICLE 8. RESTRICTION ON AUTHORITY OF APPRAISAL REVIEW BOARD TO
RETAIN LEGAL COUNSEL
SECTION 8.01. Section 6.43, Tax Code, is amended to read as
follows:
Sec. 6.43. PERSONNEL. (a) The appraisal review board may
employ legal counsel as provided by the district budget or use the
services of the county attorney and may use the staff of the
appraisal office for clerical assistance.
(b) The appraisal review board may not employ or retain a
person to serve as legal counsel for the board if the person serves
as legal counsel for the appraisal district or chief appraiser.
This subsection does not prevent the appraisal review board from
using the services of the county attorney as authorized by
Subsection (a).
ARTICLE 9. PILOT PROGRAM IN CERTAIN COUNTIES
SECTION 9.01. Chapter 2003, Government Code, is amended by
adding Subchapter Z to read as follows:
SUBCHAPTER Z. PILOT PROGRAM: APPEALS FROM APPRAISAL REVIEW BOARD
DETERMINATIONS IN CERTAIN COUNTIES
Sec. 2003.901. PILOT PROGRAM. (a) Not later than January
1, 2010, the office shall develop a pilot program under which, as an
alternative to filing an appeal under Section 42.01, Tax Code, a
property owner may appeal to the office an appraisal review board
order determining a protest concerning the appraised or market
value of property brought under Section 41.41(a)(1) or (2), Tax
Code, if the appraised or market value, as applicable, of the
property that was the subject of the protest, as determined by the
board order, is more than $1 million.
(b) The pilot program shall be developed and implemented in
conformance with the provisions of this subchapter.
Sec. 2003.902. COUNTIES INCLUDED. The pilot program shall
be implemented in Bexar, Dallas, El Paso, Harris, Tarrant, and
Travis Counties for a three-year period beginning with the ad
valorem tax year that begins January 1, 2010.
Sec. 2003.903. APPLICABILITY TO REAL AND PERSONAL PROPERTY.
The pilot program must be applicable to a determination of the
appraised or market value made by an appraisal review board in
connection with real or personal property, other than industrial
property or minerals.
Sec. 2003.904. EDUCATION AND TRAINING OF ADMINISTRATIVE LAW
JUDGES. (a) An administrative law judge assigned to hear an
appeal brought under this subchapter must have knowledge of:
(1) each of the appraisal methods a chief appraiser
may use to determine the appraised value or the market value of
property under Chapter 23, Tax Code; and
(2) the proper method for determining an appeal of a
protest, including a protest brought on the ground of unequal
appraisal.
(b) An administrative law judge is entitled to attend one or
more training and education courses under Sections 5.04 and 5.041,
Tax Code, to receive a copy of the materials used in a course, or
both, without charge.
Sec. 2003.905. NOTICE OF APPEAL TO OFFICE. (a) To appeal
an appraisal review board order to the office under this
subchapter, a property owner must file with the chief appraiser of
the appraisal district not later than the 15th day after the date
the property owner receives notice of the order:
(1) a completed notice of appeal to the office in the
form prescribed by Section 2003.906; and
(2) a filing fee in the amount of $300, made payable to
the office.
(b) As soon as practicable after receipt of a notice of
appeal, the chief appraiser for the appraisal district shall:
(1) indicate, where appropriate, those entries in the
records that are subject to the appeal;
(2) submit the notice of appeal and filing fee to the
office; and
(3) request the appointment of a qualified
administrative law judge to hear the appeal.
Sec. 2003.906. CONTENTS OF NOTICE OF APPEAL. The chief
administrative law judge by rule shall prescribe the form of a
notice of appeal under this subchapter. The form must require the
property owner to provide:
(1) a copy of the order of the appraisal review board;
(2) a brief statement that explains the basis for the
property owner's appeal of the order; and
(3) a statement of the property owner's opinion of the
appraised or market value, as applicable, of the property that is
the subject of the appeal.
Sec. 2003.907. NOTICE TO PROPERTY OWNERS. An appraisal
review board of an appraisal district established in a county
listed in Section 2003.902 that delivers notice of issuance of an
order described by Section 2003.901 pertaining to property
described by Section 2003.903 and a copy of the order to a property
owner as required by Section 41.47, Tax Code, shall include with the
notice and copy:
(1) a notice of the property owner's rights under this
subchapter; and
(2) a copy of the notice of appeal prescribed by
Section 2003.906.
Sec. 2003.908. DESIGNATION OF ADMINISTRATIVE LAW JUDGE.
(a) As soon as practicable after the office receives a notice of
appeal and the filing fee, the office shall designate an
administrative law judge to hear the appeal.
(b) As soon as practicable after the administrative law
judge is designated, the administrative law judge shall set the
date, time, and place of the hearing on the appeal.
(c) The hearing must be held in a building or facility that
is owned or partly or entirely leased by the office and located in
the county in which the applicable appraisal district is
established, except that if the office does not own or lease a
building or facility in the county, the hearing may be held in any
public or privately owned building or facility in that county,
preferably a building or facility in which the office regularly
conducts business. The hearing may not be held in a building or
facility that is owned, leased, or under the control of the
appraisal district.
Sec. 2003.909. SCOPE OF APPEAL. An appeal is by trial de
novo. The administrative law judge may not admit into evidence the
fact of previous action by the appraisal review board, except as
otherwise provided by this subchapter.
Sec. 2003.910. REPRESENTATION OF PARTIES. (a) A property
owner may be represented at the hearing by:
(1) the property owner;
(2) an attorney who is licensed in this state;
(3) a certified public accountant; or
(4) any other person who is not otherwise prohibited
from appearing in a hearing held by the office.
(b) The appraisal district may be represented by the chief
appraiser or a person designated by the chief appraiser.
Sec. 2003.911. DETERMINATION OF ADMINISTRATIVE LAW JUDGE.
(a) As soon as practicable, but not later than the 30th day after
the date the hearing is concluded, the administrative law judge
shall issue a determination and send a copy to the property owner
and the chief appraiser.
(b) The determination:
(1) must include a determination of the appraised or
market value, as applicable, of the property that is the subject of
the appeal;
(2) must state the administrative law judge's
rationale for the determination of value;
(3) may include any remedy or relief a court may order
under Chapter 42, Tax Code, in an appeal relating to the appraised
or market value of property; and
(4) shall specify whether the appraisal district or
the property owner is required to pay the costs of the hearing and
the amount of those costs.
(c) If the administrative law judge determines that the
appraised or market value, as applicable, of the property that is
the subject of the appeal is nearer to the property owner's opinion
of the appraised or market value, as applicable, of the property as
stated in the request for the hearing submitted by the property
owner than the value determined by the appraisal review board:
(1) the office, on receipt of a copy of the
determination, shall refund the property owner's filing fee;
(2) the appraisal district, on receipt of a copy of the
determination, shall pay the costs of the appeal as specified in the
determination; and
(3) the chief appraiser shall correct the appraised or
market value, as applicable, of the property as shown in the
appraisal roll to reflect the administrative law judge's
determination.
(d) If the administrative law judge determines that the
appraised or market value, as applicable, of the property that is
the subject of the appeal is not nearer to the property owner's
opinion of the appraised or market value, as applicable, of the
property as stated in the property owner's request for a hearing
than the value determined by the appraisal review board:
(1) the office, on receipt of a copy of the
determination, shall retain the property owner's filing fee;
(2) the chief appraiser shall correct the appraised or
market value, as applicable, of the property as shown in the
appraisal roll to reflect the administrative law judge's
determination if the value as determined by the administrative law
judge is less than the value as determined by the appraisal review
board; and
(3) the property owner shall pay the difference
between the costs of the appeal as specified in the determination
and the property owner's filing fee.
(e) Notwithstanding Subsection (a), the office by rule may
implement a process under which:
(1) the administrative law judge issues a proposal for
determination to the parties;
(2) the parties are given a reasonable period in which
to make written objections to the proposal; and
(3) the administrative law judge is authorized to take
into account those written objections before issuing a final
determination.
Sec. 2003.912. PAYMENT OF TAXES PENDING APPEAL. (a) The
pendency of an appeal to the office does not affect the delinquency
date for the taxes on the property subject to the appeal. A
property owner who appeals an appraisal review board order to the
office shall pay taxes on the property subject to the appeal in an
amount equal to the amount of taxes due on the portion of the
taxable value of the property that is not in dispute. If the final
determination of the appeal decreases the property owner's tax
liability to an amount less than the amount of taxes paid, each
taxing unit shall refund to the property owner the difference
between the amount of taxes paid and the amount of taxes for which
the property owner is liable.
(b) A property owner may not appeal to the office if the
taxes on the property subject to the appeal are delinquent. An
administrative law judge who determines that the taxes on the
property subject to an appeal are delinquent shall dismiss the
pending appeal with prejudice. If an appeal is dismissed under this
subsection, the office shall retain the property owner's filing
fee.
Sec. 2003.913. JUDICIAL APPEAL. (a) A final order of an
administrative law judge determining an appeal brought under this
subchapter may be appealed to a district court in the manner
provided by Chapter 42, Tax Code, except that a party is not
entitled to a jury trial.
(b) A chief appraiser may not bring an appeal unless the
board of directors of the appraisal district votes to allow the
appeal.
(c) Except as provided by Subsection (a), to the extent that
they can be made applicable, the provisions of Chapter 42, Tax Code,
also apply to an appeal of a final order of an administrative law
judge determining an appeal brought under this subchapter.
Sec. 2003.914. EFFECT ON RIGHT TO JUDICIAL APPEAL. An
appeal to the office under this subchapter does not prevent the
property owner from seeking judicial review of the order of the
appraisal review board. The period in which a petition for review
must be filed under Section 42.21, Tax Code, is tolled beginning on
the date the notice of appeal under this subchapter is filed and
ending on the date the administrative law judge issues the judge's
determination.
Sec. 2003.915. REPORT TO LEGISLATURE. Not later than
January 1, 2013, the office and the chief appraisers of the
appraisal districts established in the counties in which the pilot
program is implemented shall submit a report to the legislature
that includes:
(1) the number of appeals for property in each
appraisal district;
(2) the number of appeals that were settled before
being heard by an administrative law judge;
(3) the number of appeals brought on the ground of
excessive appraisal;
(4) the number of appeals brought on the ground of
unequal appraisal;
(5) the number of judicial appeals of an
administrative law judge's determination for each appraisal
district; and
(6) any recommendations for future legislative action
that the office or the chief appraisers consider appropriate.
Sec. 2003.916. EXPIRATION. This subchapter expires January
1, 2013.
ARTICLE 10. APPLICABILITY; EFFECTIVE DATE
SECTION 10.01. This Act applies only to an ad valorem tax
year that begins on or after the effective date of this Act.
SECTION 10.02. Except as otherwise provided by this Act,
this Act takes effect January 1, 2010.