By: Elkins H.B. No. 2419
A BILL TO BE ENTITLED
AN ACT
relating to a pilot program authorizing an administrative district
judge to appoint special magistrates to assist in hearing ad
valorem tax protests.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 41, Tax Code, is amended by adding
Subchapter E to read as follows:
SUBCHAPTER E. PILOT PROGRAM: APPOINTMENT OF SPECIAL MAGISTRATES TO
HEAR CERTAIN PROPERTY TAX PROTESTS IN HARRIS COUNTY
Sec. 41.81. APPLICABILITY. This subchapter applies only to
a protest filed under this chapter that relates to property:
(1) with an appraised or market value, whichever is
greater, of at least $1 million as determined by the appraisal
district; and
(2) that is used in a manner consistent with
commercial use.
Sec. 41.82. APPOINTMENT OF SPECIAL MAGISTRATES; TERMS. (a)
The local administrative district judge and the board of directors
of the appraisal district shall determine the number of special
magistrates necessary to conduct timely hearings on taxpayer
protests to which this subchapter applies. The local
administrative district judge shall appoint the appropriate number
of special magistrates as determined under this subsection.
(b) A special magistrate appointed under this section is not
required to be a resident of the county in which the appraisal
district is located. A person may not serve as a special magistrate
if the person:
(1) would be ineligible to serve as a member of an
appraisal review board under Section 6.412, 6.413, or 41.69;
(2) is a registered property tax consultant under
Chapter 1152, Occupations Code; or
(3) is an elected or appointed official or an employee
of:
(A) the appraisal district;
(B) a taxing unit that participates in the
appraisal district; or
(C) the comptroller.
(c) Except as provided by Section 41.90, special
magistrates are appointed to serve staggered two-year terms, with
the terms of as close to one-half of the members as possible
expiring December 31 of each year. Special magistrates may serve
consecutive terms.
(d) The local administrative district judge shall consult
with the chair of the appraisal review board to determine the
particular needs of the board when appointing special magistrates
under this section. To the extent practicable, the local
administrative district judge shall appoint as special magistrates
persons who are:
(1) members of the State Bar of Texas who have
experience in property tax law to conduct hearings on protests
related to exemptions and property classification;
(2) state-licensed real estate appraisers who have at
least five years of experience appraising real property to conduct
hearings on protests related to real property valuation; and
(3) certified public accountants or members of a
nationally recognized appraiser's organization with experience in
personal property valuation to conduct hearings on protests related
to tangible personal property valuation.
(e) The appointment of a special magistrate under this
section must be made on the basis of the magistrate's
qualifications and may not be influenced by the chief appraiser.
Sec. 41.83. COMPENSATION. A special magistrate is entitled
to a per diem set by the board of directors of the appraisal
district for each day the magistrate conducts a hearing on a
protest. The per diem shall be paid out of the appraisal district's
operating account.
Sec. 41.84. REQUIRED TRAINING. (a) Before conducting a
protest hearing under this subchapter, a special magistrate shall
complete a training program approved by the comptroller.
(b) The comptroller may require a special magistrate, to
satisfy the requirement under Subsection (a), to attend the
training provided to members of an appraisal review board.
Sec. 41.85. POWERS OF SPECIAL MAGISTRATE. A special
magistrate may conduct a hearing on a protest to which this
subchapter applies and in conducting the hearing has the same
powers as an appraisal review board or a panel of the appraisal
review board under this chapter.
Sec. 41.86. ASSIGNMENT OF HEARING TO SPECIAL MAGISTRATE.
(a) Notwithstanding Section 41.45(d), the chair of the appraisal
review board shall assign special magistrates to conduct hearings
on protests to which this subchapter applies.
(b) To the extent practicable, the chair shall assign a
hearing to a special magistrate based on the subject of the protest
and the magistrate's area of expertise as described by Section
41.82(d).
(c) The chair may not assign a hearing to a special
magistrate based on that magistrate's record of recommending
determinations favorable to the board.
Sec. 41.87. NOTICE; HEARING; PROCEDURE. (a) The
provisions of Subchapters C and D relating to scheduling, notice,
and procedures of a protest hearing apply to a hearing conducted by
a special magistrate under this subchapter.
(b) On completion of a hearing, the special magistrate
hearing a protest shall recommend a determination of the protest to
the appraisal review board in writing.
(c) After reviewing the special magistrate's
recommendation, the appraisal review board may:
(1) adopt the special magistrate's recommendation; or
(2) subject to Subsection (d), reject the special
magistrate's recommendation and:
(A) refer the protest to a different special
magistrate for rehearing; or
(B) determine the protest by majority vote at a
subsequent meeting of the board.
(d) If the appraisal review board refers a protest under
Subsection (c)(2)(A) or determines a protest under Subsection
(c)(2)(B), notice of the rehearing or meeting must be provided as
provided under Subchapter C.
Sec. 41.88. RESTRICTION ON APPEARANCE BEFORE APPRAISAL
REVIEW BOARD. A person may not represent an individual in a hearing
on a protest filed under this chapter with an appraisal review board
if, during the preceding 12-month period, the person served as a
special magistrate for the board.
Sec. 41.89. EX PARTE COMMUNICATIONS. A special magistrate
is considered a member of an appraisal review board for purposes of
Sections 6.411 and 41.66(f).
Sec. 41.90. TERMINATION. A person appointed as a special
magistrate under this subchapter serves as an independent
contractor of the appraisal review board and may be terminated at
any time by a vote of a majority of the members of the board.
Sec. 41.91. EFFECTIVE DATE; EXPIRATION. (a) The pilot
program shall be implemented in Harris County for a four-year
period beginning with the ad valorem tax year that begins January 1,
2014.
(b) This subchapter expires January 1, 2018.
SECTION 2. (a) Beginning September 1, 2013, the local
administrative district judge of Harris County shall meet with the
board of directors of the Harris County Appraisal District to
determine the number of special magistrates necessary to timely
conduct hearings on protests to which Subchapter E, Chapter 41, Tax
Code, as added by this Act, applies.
(b) Not later than November 1, 2013:
(1) the local administrative district judge shall
appoint the required number of special magistrates; and
(2) the comptroller of public accounts shall adopt
rules relating to the training required under Section 41.84, Tax
Code, as added by this Act.
(c) Notwithstanding Section 41.82(c), Tax Code, as added by
this Act, the local administrative district judge, in making the
initial appointments of special magistrates under Subsection
(b)(1) of this section, shall appoint one-half of the number of
special magistrates to serve a one-year term beginning on January
1, 2014, and the other one-half to serve two-year terms beginning
January 1, 2014. Subsequent appointees shall serve two-year terms
beginning on January 1 of each year.
SECTION 3. (a) Except as provided by Subsection (b) of this
section, this Act takes effect January 1, 2014.
(b) Section 2 of this Act takes effect September 1, 2013.