81R8629 SMH-F
By: Shapleigh S.B. No. 951
A BILL TO BE ENTITLED
AN ACT
relating to the appraisal for ad valorem tax purposes of historic
property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 23, Tax Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. APPRAISAL OF HISTORIC PROPERTY
Sec. 23.9851. DEFINITIONS. In this subchapter:
(1) "Historic property" means real property listed in
a local register of historic places created by a comprehensive
ordinance and certified by the secretary of the interior as
provided by Pub. L. No. 96-515, real property listed in the National
Register of Historic Places, or a structure and the land necessary
for acccess to and use of the structure, if the structure is
designated as a Recorded Texas Historic Landmark under Chapter 442,
Government Code, by the Texas Historical Commission. The term does
not include property listed in a register that is primarily for
objects buried below ground.
(2) "Rehabilitation" means the process of returning
property to a state of utility through repair or alteration so as to
make possible an efficient contemporary use of the property while
preserving those portions and features of the property that are
significant to its architectural and cultural values.
Sec. 23.9852. APPRAISAL OF HISTORIC PROPERTY. A person is
entitled to have property the person owns appraised under this
subchapter for purposes of taxation by a taxing unit if:
(1) the property is historic property;
(2) the property is in a class of historic property
determined by the governing body of the taxing unit to be eligible
for appraisal under this subchapter;
(3) within 24 months before the date the owner applied
for appraisal of the property under this subchapter, the owner
rehabilitated the property at a cost equal to at least 25 percent of
the appraised value of the property, excluding the appraised value
of the land, for the tax year preceding the year in which the owner
began rehabilitating the property; and
(4) the owner has entered into an agreement with the
governing body of the taxing unit as described by Section 23.9854.
Sec. 23.9853. APPLICATION. (a) A person claiming that the
person's property is eligible for appraisal under this subchapter
must file an application with the chief appraiser.
(b) To be valid, the application must:
(1) be on a form provided by the appraisal office and
prescribed by the comptroller; and
(2) contain the information necessary to determine the
validity of the claim, including evidence that the property is
described by Sections 23.9852(1) and (2) and that the owner of the
property has complied with Section 23.9852(3).
(c) The application form must include a statement that the
applicant is aware of the potential tax liability involved when the
property ceases to be eligible for appraisal under this subchapter.
(d) The application must be filed not later than October 1
of the tax year preceding the first tax year for which the appraisal
of the property under this subchapter is sought.
Sec. 23.9854. FORWARDING OF APPLICATION TO TAXING UNIT;
AGREEMENT; ACTION ON APPLICATION. (a) Not later than the 10th day
after the date the application is filed, the chief appraiser shall
send a copy of the application to the governing body of each taxing
unit that taxes the property.
(b) The governing body of a taxing unit to which a copy of
the application is sent shall approve the application if:
(1) the property meets the criteria specified by
Sections 23.9852(1) and (2) and has not been altered in a way that
adversely affects the elements that qualify it as historically
significant;
(2) the owner of the property has complied with
Section 23.9852(3); and
(3) the owner of the property has entered into an
agreement with the governing body of the taxing unit that requires
the owner for the period for which the property is eligible to be
appraised under this subchapter to:
(A) monitor the property for its continued
qualification for appraisal under this subchapter;
(B) comply with any rehabilitation plans and
minimum standards of maintenance provided by the agreement;
(C) make the historically significant aspects of
the property accessible to public view at least one day a year, if
the property is not visible from the public right-of-way;
(D) obtain the taxing unit's approval of any
demolition or alteration; and
(E) comply with any other provisions of the
agreement as applicable.
(c) After an agreement under this section between an owner
of property and the governing body of a taxing unit takes effect,
the provisions of the agreement, including the provisions described
by Subsections (b)(3)(A)-(D), may not be changed during the period
in which the property is appraised under this subchapter without
the approval of all parties to the agreement.
(d) Not later than December 31 of the tax year in which the
chief appraiser sends an application for appraisal of property
under this subchapter to the governing body of a taxing unit that
has designated a class of historic property to be eligible for
appraisal under this subchapter, the governing body shall approve
or deny the application.
(e) The governing body of a taxing unit may require the
applicant to submit records for purposes of determining whether the
applicant's property qualifies for appraisal under this
subchapter.
Sec. 23.9855. NOTICE TO CHIEF APPRAISER AND APPLICANT OF
ACTION ON APPLICATION. (a) Not later than the 10th day after the
date the governing body of a taxing unit that has designated a class
of historic property to be eligible for appraisal under this
subchapter determines whether property qualifies for the
appraisal, the governing body shall notify the chief appraiser and
the applicant of the determination.
(b) The governing body of a taxing unit that has not
designated a class of historic property to be eligible for
appraisal under this subchapter shall promptly return to the chief
appraiser an application for appraisal of property under this
subchapter sent to the governing body and notify the chief
appraiser and the applicant that the governing body has not made
such a designation.
Sec. 23.9856. APPRAISAL OF PROPERTY. If the governing body
of a taxing unit notifies the chief appraiser that property
qualifies for appraisal under this subchapter, the chief appraiser
shall, for the first 10 tax years following the tax year in which
the application is approved, appraise the property for purposes of
taxation by the taxing unit by subtracting from the market value of
the property the actual cost of rehabilitating the property.
Sec. 23.9857. CESSATION OF QUALIFICATION FOR SPECIAL
APPRAISAL. (a) Property ceases to qualify for appraisal under this
subchapter before the date provided by Section 23.9856 if:
(1) the owner notifies the chief appraiser that the
owner does not want the property to be appraised under this
subchapter;
(2) the property is sold or otherwise transferred to
an owner who is entitled to an exemption of the property from
taxation; or
(3) the governing body of the taxing unit notifies the
chief appraiser that the property does not qualify for appraisal
under this subchapter because the property no longer qualifies as
historic property or the owner has failed to comply with the
conditions established under Section 23.9854.
(b) A transfer of ownership of the property does not
disqualify the property from appraisal under this subchapter if:
(1) the property continues to qualify as historic
property; and
(2) the new owner files a notice of compliance with the
chief appraiser on a form provided by the appraisal office and
prescribed by the comptroller.
(c) A notice under Subsection (b)(2) must contain a
statement that the new owner is aware that the property is appraised
under this subchapter and of the potential tax liability involved
when the property ceases to be appraised under this subchapter.
(d) If property ceases to qualify for appraisal under this
subchapter, the owner shall immediately notify the chief appraiser.
Sec. 23.9858. ADDITIONAL TAX. (a) If property that has
been appraised under this subchapter ceases to qualify for
appraisal under this subchapter before the expiration of the period
provided by Section 23.9856, an additional tax is imposed on the
property by each taxing unit for which the property was appraised
under this subchapter equal to the difference between the taxes
imposed by the taxing unit on the property for each year preceding
the year in which the property ceased to qualify for appraisal under
this subchapter and the tax that would have been imposed by the
taxing unit had the property been taxed on the basis of market value
in each of those years, plus interest at an annual rate of seven
percent calculated from the dates on which the differences would
have become due.
(b) A tax lien attaches to the property on the date the
property ceases to qualify for appraisal under this subchapter to
secure payment of the additional tax and interest imposed by this
section and any penalties incurred. The lien exists in favor of
each taxing unit for which the additional tax is imposed.
(c) The additional tax imposed by this section does not
apply to a year for which the tax has already been imposed.
(d) A determination that property has ceased to qualify for
appraisal under this subchapter is made by the chief appraiser. The
chief appraiser shall deliver a notice of the determination to the
owner of the property as soon as possible after making the
determination and shall include in the notice an explanation of the
owner's right to protest the determination. If the owner does not
file a timely protest or if the final determination of the protest
is that the additional taxes are due, the assessor for each taxing
unit for which the property was appraised under this subchapter
shall prepare and deliver a bill for the additional taxes plus
interest as soon as practicable. The taxes and interest are due and
become delinquent and incur penalties and interest as provided by
law for ad valorem taxes imposed by the taxing unit if not paid
before the next February 1 that is at least 20 days after the date
the bill is delivered to the owner of the property.
(e) The sanctions provided by Subsection (a) do not apply if
property ceases to qualify for appraisal under this subchapter as a
result of:
(1) a sale or other transfer of ownership of the
property to an owner who is entitled to an exemption of the property
from taxation;
(2) alteration or destruction of the property through
no fault of the owner; or
(3) a condemnation.
Sec. 23.9859. ASSISTANCE OF STATE HISTORIC PRESERVATION
OFFICER. The governing body of a taxing unit may request the
assistance of the state historic preservation officer in conducting
activities under this subchapter.
Sec. 23.9860. RULES. The Texas Historical Commission shall
adopt rules as necessary to be used by appraisal districts and
taxing units in implementing this subchapter. The rules must
include rehabilitation and maintenance standards for historic
properties to be used by taxing units as minimum requirements for
ensuring that a historic property is safe and habitable, including:
(1) elimination of visual blight because of past
neglect of maintenance and repair to the exterior of the building,
including replacement of broken or missing doors and windows,
repair of deteriorated architectural features, and painting of
exterior surfaces;
(2) correction of structural defects and hazards;
(3) protection from weather damage because of
defective roofing, flashing, glazing, caulking, or lack of heat;
and
(4) elimination of any condition on the premises that
could cause or augment a fire or explosion.
SECTION 2. Section 25.02(a), Tax Code, is amended to read as
follows:
(a) The appraisal records shall be in the form prescribed by
the comptroller and shall include:
(1) the name and address of the owner or, if the name
or address is unknown, a statement that it is unknown;
(2) real property;
(3) separately taxable estates or interests in real
property, including taxable possessory interests in exempt real
property;
(4) personal property;
(5) the appraised value of land and, if the land is
appraised as provided by Subchapter C, D, E, or H, Chapter 23, the
market value of the land;
(6) the appraised value of improvements to land;
(7) the appraised value of a separately taxable estate
or interest in land;
(8) the appraised value of personal property;
(9) the kind of any partial exemption the owner is
entitled to receive, whether the exemption applies to appraised or
assessed value, and, in the case of an exemption authorized by
Section 11.23, the amount of the exemption;
(10) the appraised and market value of property
appraised under Subchapter I, Chapter 23;
(11) the tax year to which the appraisal applies; and
(12) [(11)] an identification of each taxing unit in
which the property is taxable.
SECTION 3. Section 25.22(a), Tax Code, is amended to read as
follows:
(a) By May 15 or as soon thereafter as practicable, the
chief appraiser shall submit the completed appraisal records to the
appraisal review board for review and determination of protests.
However, the chief appraiser may not submit the records until the
chief appraiser has delivered the notices required by Subsection
(d) of Section 11.45, Subsection (d) of Section 23.44, Subsection
(d) of Section 23.57, Subsection (d) of Section 23.79, Subsection
(d) of Section 23.85, Subsection (d) of Section 23.95, Subsection
(d) of Section 23.9805, and Section 25.19, and each taxing unit has
delivered the notice required by Section 23.9855.
SECTION 4. Section 31.01(c), Tax Code, is amended to read as
follows:
(c) The tax bill or a separate statement accompanying the
tax bill shall:
(1) identify the property subject to the tax;
(2) state the appraised value, assessed value, and
taxable value of the property;
(3) if the property is land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, or is historic property
appraised as provided by Subchapter I, Chapter 23, state the market
value and the taxable value for purposes of deferred or additional
taxation as provided by Section 23.46, 23.55, 23.76, [or] 23.9807,
or 23.9858, as applicable;
(4) state the assessment ratio for the unit;
(5) state the type and amount of any partial exemption
applicable to the property, indicating whether it applies to
appraised or assessed value;
(6) state the total tax rate for the unit;
(7) state the amount of tax due, the due date, and the
delinquency date;
(8) explain the payment option and discounts provided
by Sections 31.03 and 31.05, if available to the unit's taxpayers,
and state the date on which each of the discount periods provided by
Section 31.05 concludes, if the discounts are available;
(9) state the rates of penalty and interest imposed
for delinquent payment of the tax;
(10) include the name and telephone number of the
assessor for the unit and, if different, of the collector for the
unit;
(11) for real property, state for the current tax year
and each of the preceding five tax years:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the unit;
(C) the amount of taxes imposed on the property
by the unit; and
(D) the difference, expressed as a percent
increase or decrease, as applicable, in the amount of taxes imposed
on the property by the unit compared to the amount imposed for the
preceding tax year; and
(12) for real property, state the differences,
expressed as a percent increase or decrease, as applicable, in the
following for the current tax year as compared to the fifth tax year
before that tax year:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the unit; and
(C) the amount of taxes imposed on the property
by the unit.
SECTION 5. Section 41.01(a), Tax Code, is amended to read as
follows:
(a) The appraisal review board shall:
(1) determine protests initiated by property owners;
(2) determine challenges initiated by taxing units;
(3) correct clerical errors in the appraisal records
and the appraisal rolls;
(4) act on motions to correct appraisal rolls under
Section 25.25;
(5) determine whether an exemption or a partial
exemption is improperly granted, [and] whether land is improperly
granted appraisal as provided by Subchapter C, D, E, or H, Chapter
23, and whether property is improperly granted appraisal as
provided by Subchapter I, Chapter 23; and
(6) take any other action or make any other
determination that this title specifically authorizes or requires.
SECTION 6. Section 41.41(a), Tax Code, is amended to read as
follows:
(a) A property owner is entitled to protest before the
appraisal review board the following actions:
(1) determination of the appraised value of the
owner's property or, in the case of land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, or property appraised as
provided by Subchapter I, Chapter 23, determination of its
appraised or market value;
(2) unequal appraisal of the owner's property;
(3) inclusion of the owner's property on the appraisal
records;
(4) denial to the property owner in whole or in part of
a partial exemption;
(5) determination that the owner's land does not
qualify for appraisal as provided by Subchapter C, D, E, or H,
Chapter 23, or that the owner's property does not qualify for
appraisal as provided by Subchapter I, Chapter 23;
(6) identification of the taxing units in which the
owner's property is taxable in the case of the appraisal district's
appraisal roll;
(7) determination that the property owner is the owner
of property;
(8) a determination that a change in use of land
appraised under Subchapter C, D, E, or H, Chapter 23, has occurred
or that property has ceased to be eligible for appraisal under
Subchapter I, Chapter 23; or
(9) any other action of the chief appraiser, appraisal
district, or appraisal review board that applies to and adversely
affects the property owner.
SECTION 7. Section 41.44(a), Tax Code, is amended to read as
follows:
(a) Except as provided by Subsections (b), (b-1), (c),
(c-1), and (c-2), to be entitled to a hearing and determination of a
protest, the property owner initiating the protest must file a
written notice of the protest with the appraisal review board
having authority to hear the matter protested:
(1) before May 1 or not later than the 30th day after
the date that notice to the property owner was delivered to the
property owner as provided by Section 25.19, if the property is a
single-family residence that qualifies for an exemption under
Section 11.13, whichever is later;
(2) before June 1 or not later than the 30th day after
the date that notice was delivered to the property owner as provided
by Section 25.19 in connection with any other property, whichever
is later;
(3) in the case of a protest of a change in the
appraisal records ordered as provided by Subchapter A of this
chapter or by Chapter 25, not later than the 30th day after the date
notice of the change is delivered to the property owner; [or]
(4) in the case of a determination that a change in the
use of land appraised under Subchapter C, D, E, or H, Chapter 23,
has occurred, not later than the 30th day after the date the notice
of the determination is delivered to the property owner; or
(5) in the case of a determination that property has
ceased to be eligible for appraisal under Subchapter I, Chapter 23,
not later than the 30th day after the date the notice of the
determination is delivered to the property owner.
SECTION 8. Section 403.302(d), Government Code, is amended
to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by Section 311.003(e), Tax Code, before May 31, 1999, and
within the boundaries of the zone as those boundaries existed on
September 1, 1999, including subsequent improvements to the
property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) for a school district for which a deduction from
taxable value is made under Subdivision (4), an amount equal to the
taxable value required to generate revenue when taxed at the school
district's current tax rate in an amount that, when added to the
taxes of the district paid into a tax increment fund as described by
Subdivision (4)(B), is equal to the total amount of taxes the
district would have paid into the tax increment fund if the district
levied taxes at the rate the district levied in 2005;
(6) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(7) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(8) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(9) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(10) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state that, if the tax rate adopted by the
district is applied to it, produces an amount equal to the
difference between the tax that the district would have imposed on
the property if the property were fully taxable at market value and
the tax that the district is actually authorized to impose on the
property, if this subsection does not otherwise require that
portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code;
(11) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(12) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(13) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; [and]
(14) the amount by which the market value of a
residence homestead to which Section 23.23, Tax Code, applies
exceeds the appraised value of that property as calculated under
that section; and
(15) the amount by which the market value of property
appraised under Subchapter I, Chapter 23, Tax Code, exceeds the
appraised value of that property as calculated under that
subchapter.
SECTION 9. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 10. This Act takes effect January 1, 2010.