By: Elkins H.B. No. 3125
A BILL TO BE ENTITLED
AN ACT
relating to abolishing the property tax assistance division of the
office of the comptroller of public accounts and transferring its
powers and duties to the newly created State Property Tax Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. ESTABLISHING THE STATE PROPERTY TAX BOARD
SECTION 1.01. Chapter 5, Tax Code, is amended by
designating Sections 5.03 through 5.16 as Subchapter A and adding a
subchapter heading to read as follows:
SUBCHAPTER A. STATE PROPERTY TAX BOARD
SECTION 1.02. Subchapter A, Chapter 5, Tax Code, as added by
this Act, is amended by adding Sections 5.01, 5.02, 5.021, 5.022,
and 5.023 to read as follows:
Sec. 5.01. DEFINITION. In this chapter, "board" means the
State Property Tax Board.
Sec. 5.02. STATE PROPERTY TAX BOARD. (a) The State
Property Tax Board is established. The board consists of seven
members appointed by the governor with the advice and consent of the
senate. In making the appointments, the governor, to the extent
practicable, shall select persons so that each geographical area of
the state is represented. A vacancy on the board is filled in the
same manner for the unexpired portion of the term.
(b) Members of the board hold office for terms of six years,
with the terms of two or three members expiring on March 1 of each
odd-numbered year.
(c) To be eligible to serve on the board, a person must have
been a resident of this state for at least 10 years.
(d) At least two members must be either registered with the
Texas Department of Licensing and Regulation under Chapter 1151 or
1152, Occupations Code, or an elected county assessor-collector.
(e) A majority of the board constitutes a quorum.
(f) The governor shall designate one of the members of the
board to serve as chair for a term, in that capacity, of two years
expiring on March 1 of each odd-numbered year.
(g) The board shall maintain a principal office in Austin.
(h) The board shall meet at least once in each calendar
quarter and may meet at other times at the call of the chair or as
provided by the rules of the board.
(i) A member of the board may not receive compensation for
service on the board but is entitled to reimbursement for actual and
necessary expenses, as provided by legislative appropriation,
incurred while on travel status in the performance of official
duties.
Sec. 5.021. BOARD PERSONNEL. (a) The board shall employ an
executive director who shall administer board operations as
directed by the board.
(b) The executive director may employ professional,
clerical, and other personnel to assist in administering board
operations.
Sec. 5.022. GROUNDS FOR REMOVAL OF BOARD MEMBERS. (a) It
is a ground for removal from the board if a member:
(1) does not have at the time of appointment the
qualifications required under Section 5.02;
(2) does not maintain during service on the board the
qualifications and other eligibility conditions required by
Section 5.02;
(3) violates a prohibition described by Section 5.023;
(4) cannot discharge the member's duties for a
substantial part of the term for which the member is appointed
because of illness or disability; or
(5) is absent from more than half of the regularly
scheduled board meetings that the member is eligible to attend
during a calendar year unless the absence is excused by a majority
vote of the board.
(b) The validity of an action of the board is not affected by
the fact that it is taken when a ground for removal of a board member
exists.
(c) If the executive director has knowledge that a potential
ground for removal exists, the executive director shall notify the
chair of the ground. The chair shall then notify the governor that
a potential ground for removal exists. If the member about which
the executive director has knowledge that a potential ground for
removal exists is the chair, the executive director shall notify
two other board members of the ground, and those members shall then
notify the governor that a potential ground for removal exists.
Sec. 5.023. RESTRICTIONS ON BOARD MEMBERSHIP AND
EMPLOYMENT. (a) An officer, employee, or paid consultant of a
Texas trade association in the field of property taxation may not be
a member of the board or be an employee of the board who is exempt
from the state's position classification plan or is compensated at
or above the amount prescribed by the General Appropriations Act
for step 1, salary group 17, of the position classification salary
schedule.
(b) A person who is the spouse of an officer, manager, or
paid consultant of a Texas trade association in the field of
property taxation may not be a member of the board or be an employee
of the board who is exempt from the state's position classification
plan or is compensated at or above the amount prescribed by the
General Appropriations Act for step 1, salary group 17, of the
position classification salary schedule.
(c) A person may not serve as a member of the board or act as
the general counsel to the board if the person is required to
register as a lobbyist under Chapter 305, Government Code, because
of the person's activities for compensation on behalf of a
profession related to the operation of the board.
(d) In this section, "Texas trade association" means a
nonprofit, cooperative, and voluntarily joined association of
business or professional competitors in this state designed to
assist its members and its industry or profession in dealing with
mutual business or professional problems and in promoting their
common interest.
SECTION 1.03. Section 5.03, Tax Code, is amended to read as
follows:
Sec. 5.03. POWERS AND DUTIES GENERALLY. (a) The board
[comptroller] shall adopt rules establishing minimum standards for
the administration and operation of an appraisal district. The
minimum standards may vary according to the number of parcels and
the kinds of property the district is responsible for appraising.
(b) The board [comptroller] may require from each district
engaged in appraising property for taxation an annual report on a
form prescribed by the board [comptroller] on the administration
and operation of the appraisal office.
(c) The board [comptroller] may contract with consultants
to assist in performance of the duties imposed by this chapter.
SECTION 1.04. Section 5.04(a), Tax Code, is amended to read
as follows:
(a) The board [comptroller] shall enter into a memorandum of
understanding with the Texas Department of Licensing and Regulation
or any successor agency responsible for certifying tax
professionals in this state in setting standards for and approving
curricula and materials for use in training and educating
appraisers and assessor-collectors, and the board [comptroller]
may contract or enter into a memorandum of understanding with other
public agencies, educational institutions, or private
organizations in sponsoring courses of instruction and training
programs.
SECTION 1.05. Sections 5.041(a), (b), (b-1), (c), (d),
(e-1), (e-2), (e-3), and (f), Tax Code, are amended to read as
follows:
(a) The board [comptroller] shall:
(1) approve curricula and provide materials for use in
training and educating members of an appraisal review board;
(2) supervise a comprehensive course for training and
education of appraisal review board members and issue certificates
indicating course completion;
(3) make all materials for use in training and
educating members of an appraisal review board freely available
online;
(4) establish and maintain a toll-free telephone
number that appraisal review board members may call for answers to
technical questions relating to the duties and responsibilities of
appraisal review board members and property appraisal issues; and
(5) provide, as feasible, online technological
assistance to improve the operations of appraisal review boards and
appraisal districts.
(b) A member of the appraisal review board established for
an appraisal district must complete the course established under
Subsection (a). A member of the appraisal review board may not
participate in a hearing conducted by the appraisal review board
unless the person has completed the course established under
Subsection (a) and received a certificate of course completion.
(b-1) At the conclusion of a course established under
Subsection (a), each member of an appraisal review board in
attendance shall complete a statement, on a form prescribed by the
board [comptroller], indicating that the member will comply with
the requirements of this title in conducting hearings.
(c) The board [comptroller] may contract with service
providers to assist with the duties imposed under Subsection (a),
but the course required may not be provided by an appraisal
district, the chief appraiser or another employee of an appraisal
district, a member of the board of directors of an appraisal
district, a member of an appraisal review board, or a taxing unit.
The board [comptroller] may assess a fee to recover a portion of the
costs incurred for the training course, but the fee may not exceed
$50 per person trained.
(d) The course material for the course required under
Subsection (a) is the State Property Tax Board's [comptroller's]
Appraisal Review Board Manual [in use on the effective date of this
section]. The manual shall be updated regularly. It may be revised
on request, in writing, to the board [comptroller]. The revision
language must be approved on the unanimous agreement of a committee
selected by the board [comptroller] and representing, equally,
taxpayers and chief appraisers. The person requesting the revision
shall pay the costs of mediation if the board [comptroller]
determines that mediation is required.
(e-1) In addition to the course established under
Subsection (a), the board [comptroller] shall approve curricula and
provide materials for use in a continuing education course for
members of an appraisal review board. The curricula and materials
must include information regarding:
(1) the cost, income, and market data comparison
methods of appraising property;
(2) the appraisal of business personal property;
(3) the determination of capitalization rates for
property appraisal purposes;
(4) the duties of an appraisal review board;
(5) the requirements regarding the independence of an
appraisal review board from the board of directors and the chief
appraiser and other employees of the appraisal district;
(6) the prohibitions against ex parte communications
applicable to appraisal review board members;
(7) the Uniform Standards of Professional Appraisal
Practice;
(8) the duty of the appraisal district to substantiate
the district's determination of the value of property;
(9) the requirements regarding the equal and uniform
appraisal of property;
(10) the right of a property owner to protest the
appraisal of the property as provided by Chapter 41; and
(11) a detailed explanation of each of the actions
described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413,
41.42, and 41.43 so that members are fully aware of each of the
grounds on which a property appraisal can be appealed.
(e-2) During the second year of an appraisal review board
member's term of office, the member must successfully complete the
course established under Subsection (e-1). At the conclusion of
the course, the member must complete a statement described by
Subsection (b-1). A person may not participate in a hearing
conducted by the appraisal review board, vote on a determination of
a protest, or be reappointed to an additional term on the appraisal
review board until the person has completed the course established
under Subsection (e-1) and has received a certificate of course
completion. If the person is reappointed to an additional term on
the appraisal review board, the person must successfully complete
the course established under Subsection (e-1) and comply with the
other requirements of this subsection in each year the member
continues to serve.
(e-3) The board [comptroller] may contract with service
providers to assist with the duties imposed under Subsection (e-1),
but the course required by that subsection may not be provided by an
appraisal district, the chief appraiser or another employee of an
appraisal district, a member of the board of directors of an
appraisal district, a member of an appraisal review board, or a
taxing unit. The board [comptroller] may assess a fee to recover a
portion of the costs incurred for the continuing education course,
but the fee may not exceed $50 for each person trained.
(f) The board [comptroller] may not advise a property owner,
a property owner's agent, or the chief appraiser or another
employee of an appraisal district on a matter that the board
[comptroller] knows is the subject of a protest to the appraisal
review board. The board [comptroller] may provide advice to an
appraisal review board member as authorized by Subsection (a)(4) of
this section or Section 5.103 and may communicate with the chair
[chairman] of an appraisal review board or a taxpayer liaison
officer concerning a complaint filed under Section 6.052.
SECTION 1.06. Sections 5.05(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) The board [comptroller] may prepare and issue
publications relating to the appraisal of property and the
administration of taxes, or may approve other publications relating
to those matters, including materials published by The Appraisal
Foundation, the International Association of Assessing Officers,
or other professionally recognized organizations, for use in the
administration of property taxes, including:
(1) a general appraisal manual;
(2) special appraisal manuals as authorized by law;
(3) cost, price, and depreciation schedules as
authorized by law, with provision for inserting local market index
factors and with a standard procedure for determining local market
index factors;
(4) periodic news and reference bulletins;
(5) [an] annotated digests of all laws relating to
property taxation [version of this title and Title 3]; and
(6) a handbook of [containing selected laws and] all
rules promulgated by the board [comptroller] relating to the
property tax and its administration.
(b) The board [comptroller] shall revise or supplement all
materials issued by the board [comptroller] or approve other
publications periodically as necessary to keep them current.
(c) The board [comptroller] shall electronically publish
all materials under this section for administering the property tax
system. The board [comptroller] shall make the materials available
to local governmental officials and members of the public but may
charge a reasonable fee to offset the costs of preparing, printing,
and distributing the materials.
SECTION 1.07. Sections 5.06, 5.07, 5.08, 5.09, 5.10, 5.102,
5.103, 5.12, 5.13, 5.14, and 5.16, Tax Code, are amended to read as
follows:
Sec. 5.06. EXPLANATION OF TAXPAYER REMEDIES. The board
[comptroller] shall prepare and electronically publish a pamphlet
explaining the remedies available to dissatisfied taxpayers and the
procedures to be followed in seeking remedial action. The board
[comptroller] shall include in the pamphlet advice on preparing and
presenting a protest.
Sec. 5.07. PROPERTY TAX FORMS AND RECORDS SYSTEMS. (a) The
board [comptroller] shall prescribe the contents of all forms
necessary for the administration of the property tax system and on
request shall furnish sufficient copies of model forms of each type
to the appropriate local officials. The board [comptroller] may
require reimbursement for the costs of printing and distributing
the forms.
(b) The board [comptroller] shall make the contents of the
forms uniform to the extent practicable but may prescribe or
approve additional or substitute forms for special circumstances.
(c) The board [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 studies required by Sections
[Section] 5.10 [of this code] and 5.23 [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 board [comptroller].
Sec. 5.08. PROFESSIONAL AND TECHNICAL ASSISTANCE. (a) The
board [comptroller] may provide professional and technical
assistance on request in appraising property, installing or
updating tax maps, purchasing equipment, developing recordkeeping
systems, or performing other appraisal activities. The board
[comptroller] may also provide professional and technical
assistance on request to an appraisal review board. The board
[comptroller] may require reimbursement for the costs of providing
the assistance.
(b) The board [comptroller] may provide information to and
consult with persons actively engaged in appraising property for
tax purposes about any matter relating to property taxation without
charge.
Sec. 5.09. BIENNIAL REPORTS. (a) The board [comptroller]
shall prepare a biennial report of its operations and the
operations of the appraisal districts of this state. The report
shall include the total appraised values and taxable values of
taxable property by category and the tax rates of each county,
municipality, and school district in effect for the two years
preceding the year in which the report is prepared.
(b) Not later than December 31 of each even-numbered year,
the board [comptroller] shall:
(1) electronically publish on the board's
[comptroller's] Internet website the report required by Subsection
(a); and
(2) notify the governor, the lieutenant governor, and
each member of the legislature that the report is available on the
website.
Sec. 5.10. RATIO STUDIES. (a) At least once every two
years, the board [comptroller] shall conduct a 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 board [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 board [comptroller] considers appropriate. In
conducting the study, the board [comptroller] shall apply
appropriate standard statistical analysis techniques to data
collected as part of the study of school district taxable values
required by Section 5.23 [403.302, Government Code].
(b) The published findings of a ratio study conducted by the
board [comptroller] shall be distributed to all members of the
legislature and to all appraisal districts.
(c) In conducting a study under this section, the board
[comptroller] or the board's [comptroller's] authorized
representative may enter the premises of a business, trade, or
profession and inspect the property to determine the existence and
market value of property used for the production of income. An
inspection under this subsection must be made during normal
business hours or at a time mutually agreeable to the board
[comptroller] or the board's [comptroller's] authorized
representative and the person in control of the premises.
Sec. 5.102. REVIEW OF APPRAISAL DISTRICTS. (a) At least
once every two years, the board [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, to determine
compliance with generally accepted standards, procedures, and
methodology. After consultation with the advisory committee
created under Section 5.23 [403.302, Government Code], the board
[comptroller] by rule may establish procedures and standards for
conducting and scoring the review.
(b) In conducting the review, the board [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 board [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
standards, procedures, and methodology, the board [comptroller]
shall deliver a report that details the board's [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 board [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 board
[comptroller] shall notify the department [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.
(e) Before February 1 of the year following the year in
which the department [Board of Tax Professional Examiners, or its
successor,] takes action under Subsection (d), and with the
assistance of the board [comptroller], the department [board] shall
determine whether the recommendations in the most recent report
have been substantially implemented. The executive director of the
department [presiding officer of the board] shall notify the chief
appraiser and the board of directors of the appraisal district in
writing of the department's [board's] determination.
(f) In this section, "department" means the Texas
Department of Licensing and Regulation.
Sec. 5.103. APPRAISAL REVIEW BOARD OVERSIGHT. (a) The
board [comptroller] shall prepare model hearing procedures for
appraisal review boards.
(b) The model hearing procedures shall address:
(1) the statutory duties of an appraisal review board;
(2) the process for conducting a hearing;
(3) the scheduling of hearings;
(4) the postponement of hearings;
(5) the notices required under this title;
(6) the determination of good cause under Section
41.44(b);
(7) the determination of good cause under Sections
41.45(e) and(e-1);
(8) a party's right to offer evidence and argument;
(9) a party's right to examine or cross-examine
witnesses or other parties;
(10) a party's right to appear by an agent;
(11) the prohibition of an appraisal review board's
consideration of information not provided at a hearing;
(12) ex parte and other prohibited communications;
(13) the exclusion of evidence at a hearing as
required by Section 41.67(d);
(14) the postponement of a hearing as required by
Section 41.66(h);
(15) conflicts of interest;
(16) the process for the administration of
applications for membership on an appraisal review board; and
(17) any other matter related to fair and efficient
appraisal review board hearings.
(c) The board [comptroller] may:
(1) categorize appraisal districts based on the size
of the district, the number of protests filed in the district, or
similar characteristics; and
(2) develop different model hearing procedures for
different categories of districts.
(d) An appraisal review board shall follow the model hearing
procedures prepared by the board [comptroller] when establishing
its procedures for hearings as required by Section 41.66(a).
(e) The board [comptroller] shall prescribe the contents of
a survey form for the purpose of providing the public a reasonable
opportunity to offer comments and suggestions concerning the
appraisal review board established for an appraisal district. The
survey form must permit a person to offer comments and suggestions
concerning the matters listed in Subsection (b) or any other matter
related to the fairness and efficiency of the appraisal review
board. The survey form, together with instructions for completing
the form and submitting the form, shall be provided to each property
owner at or before each hearing on a protest conducted by an
appraisal review board. The appraisal office may provide clerical
assistance to the board [comptroller] for purposes of the
implementation of this subsection, including assistance in
providing and receiving the survey form. The board [comptroller],
or an appraisal office providing clerical assistance to the board
[comptroller], may provide for the provision and submission of
survey forms electronically.
(f) The board [comptroller] shall issue an annual report
summarizing the survey forms submitted by property owners
concerning each appraisal review board. The report may not
disclose the identity of a person who submits a survey form.
Sec. 5.12. PERFORMANCE AUDIT OF APPRAISAL DISTRICT. (a)
The board [comptroller] shall audit the performance of an appraisal
district if one or more of the following conditions exist according
to each of two consecutive studies conducted by the board
[comptroller] under Section 5.10, 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 board [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 board [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 board [comptroller] determines a median level of appraisal is
more than 0.45.
(b) At the written request of the governing bodies of a
majority of the taxing units participating in an appraisal district
or of a majority of the taxing units entitled to vote on the
appointment of appraisal district directors, the board
[comptroller] shall audit the performance of the appraisal
district. The governing bodies may request a general audit of the
performance of the appraisal district or may request an audit of
only one or more particular duties, practices, functions,
departments, or other appraisal district matters.
(c) At the written request of the owners of not less than 10
percent of the number of accounts or parcels of property in an
appraisal district belonging to a single class of property, if the
class constitutes at least five percent of the appraised value of
taxable property within the district in the preceding year, or at
the written request of the owners of property representing not less
than 10 percent of the appraised value of all property in the
district belonging to a single class of property, if the class
constitutes at least five percent of the appraised value of taxable
property in the district in the preceding year, the board
[comptroller] shall audit the performance of the appraisal
district. The property owners may request a general audit of the
performance of the appraisal district or may request an audit of
only one or more particular duties, practices, functions,
departments, or other appraisal district matters. A property owner
may authorize an agent to sign a request for an audit under this
subsection on the property owner's behalf. The board [comptroller]
may require a person signing a request for an audit to provide proof
that the person is entitled to sign the request as a property owner
or as the agent of a property owner.
(d) A request for a performance audit of an appraisal
district may not be made under Subsection (b) or (c) if according to
each of the two most recently published studies conducted by the
board [comptroller] under Section 5.10:
(1) the overall median level of appraisal for all
property in the district for which the board [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 board [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 board [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):
(1) during the two years immediately following the
publication of the second of two consecutive studies according to
which the board [comptroller] is required to conduct an audit of the
district under Subsection (a);
(2) during the year immediately following the date the
results of an audit of the district conducted by the board
[comptroller] under Subsection (a) are reported to the chief
appraiser of the district; or
(3) during a year in which the board [comptroller] is
conducting a review of the district under Section 5.102.
(f) For purposes of this section, "class of property" means
a major kind of property for which the board [comptroller]
determines a median level of appraisal under Section 5.10 [of this
code].
(h) In addition to the performance audits required by
Subsections (a), (b), and (c) and the review of appraisal standards
required by Section 5.102, the board [comptroller] may audit an
appraisal district to analyze the effectiveness and efficiency of
the policies, management, and operations of the appraisal district.
The results of the audit shall be delivered in a report that details
the board's [comptroller's] findings and recommendations for
improvement to the appraisal district's chief appraiser and board
of directors and the governing body of each taxing unit
participating in the appraisal district. The board [comptroller]
may require reimbursement by the appraisal district for some or all
of the costs of the audit, not to exceed the actual costs associated
with conducting the audit.
Sec. 5.13. ADMINISTRATION OF PERFORMANCE AUDITS. (a) The
board [comptroller] shall complete an audit required by Section
5.12(a) within two years after the date of the publication of the
second of the two studies the results of which required the audit to
be conducted. The board [comptroller] shall complete an audit
requested under Section 5.12(b) or (c) as soon as practicable after
the request is made.
(b) The board [comptroller] may not audit the financial
condition of an appraisal district or a district's tax collections.
If the request is for an audit limited to one or more particular
matters, the board's [comptroller's] audit must be limited to those
matters.
(c) The board [comptroller] must approve the specific plan
for the performance audit of an appraisal district. Before
approving an audit plan, the board [comptroller] must provide any
interested person an opportunity to appear before the board
[comptroller] and to comment on the proposed plan. Not later than
the 20th day before the date the board [comptroller] considers the
plan for an appraisal district performance audit, the board
[comptroller] must notify the presiding officer of the appraisal
district board of directors that the board [comptroller] intends to
consider the plan. The notice must include the time, date, and place
of the meeting to consider the plan. Immediately after receiving
the notice, the presiding officer shall deliver a copy of the notice
to the other members of the appraisal district board of directors.
(d) In conducting a general audit, the board [comptroller]
shall consider and report on:
(1) the extent to which the district complies with
applicable law or generally accepted standards of appraisal or
other relevant practice;
(2) the uniformity and level of appraisal of major
kinds of property and the cause of any significant deviations from
ideal uniformity and equality of appraisal of major kinds of
property;
(3) duplication of effort and efficiency of operation;
(4) the general efficiency, quality of service, and
qualification of appraisal district personnel; and
(5) except as otherwise provided by Subsection (b) of
this section, any other matter included in the request for the
audit.
(e) In conducting the audit, the board [comptroller] is
entitled to have access at all times to the books, appraisal and
other records, reports, vouchers, and other information, whether
confidential or not, of the appraisal district. The board
[comptroller] may require the assistance of appraisal district
officers or employees that does not interfere significantly with
the ordinary functions of the appraisal district. The board
[comptroller] may rely on any analysis it has made previously
relating to the appraisal district if the previous analysis is
useful or relevant to the audit.
(f) The board [comptroller] shall report the results of its
audit in writing to the governing body of each taxing unit that
participates in the appraisal district, to the chief appraiser, and
to the presiding officer of the appraisal district board of
directors. If the audit was requested under Section 5.12(c) [of
this code], the board [comptroller] shall also provide a report to a
representative of the property owners who requested the audit.
(g) If the audit is required or requested under Section
5.12(a) or (b) [of this code], the appraisal district shall
reimburse the board [comptroller] for the costs incurred in
conducting the audit and making its report of the audit. The costs
shall be allocated among the taxing units participating in the
district in the same manner as an operating expense of the district.
If the audit is requested under Section 5.12(c) [of this code], the
property owners who requested the audit shall reimburse the board
[comptroller] for the costs incurred in conducting the audit and
making its report of the audit and shall allocate the costs among
those property owners in proportion to the appraised value of each
property owner's property in the district or on such other basis as
the property owners may agree. If the audit confirms that the
median level of appraisal for a class of property exceeds 1.10 or
that the median level of appraisal for a class of property varies at
least 10 percent from the overall median level of appraisal for all
property in the district for which the board [comptroller]
determines a median level of appraisal, within 90 days after the
date a request is made by the property owners for reimbursement the
appraisal district shall reimburse the property owners who
requested the audit for the amount paid to the board [comptroller]
for the costs incurred in conducting the audit and making the
report. Before conducting an audit under Section 5.12(c), the
board [comptroller] may require the requesting taxing units or
property owners to provide the board [comptroller] with a bond,
deposit, or other financial security sufficient to cover the
expected costs of conducting the audit and making the report. For
purposes of this subsection, "costs" include expenses related to
salaries, professional fees, travel, reproduction or other
printing services, and consumable supplies that are directly
attributable to conducting the audit.
(h) At any time after the request for an audit is made, the
board [comptroller] may discontinue the audit in whole or in part if
requested to do so by:
(1) the governing bodies of a majority of the taxing
units participating in the district, if the audit was requested by a
majority of those units;
(2) the governing bodies of a majority of the taxing
units entitled to vote on the appointment of appraisal district
directors, if the audit was requested by a majority of those units;
or
(3) if the audit was requested under Section 5.12(c)
[of this code], by the taxpayers who requested the audit.
(i) The board [comptroller] by rule may adopt procedures,
audit standards, and forms for the administration of the
performance audits.
Sec. 5.14. PUBLIC ACCESS, INFORMATION, AND COMPLAINTS. (a)
The board [comptroller] shall develop and implement policies that
provide the public with a reasonable opportunity to submit
information on any property tax issue under the jurisdiction of the
board [comptroller].
(b) The board [comptroller] shall prepare and maintain a
written plan that describes how a person who does not speak English
or who has a physical, mental, or developmental disability may be
provided reasonable access to the board's [comptroller's] programs.
(c) The board [comptroller] shall prepare information of
public interest describing the property tax functions of the board
[office of the comptroller] and the board's [comptroller's]
procedures by which complaints are filed with and resolved by the
board [comptroller]. The board [comptroller] shall make the
information available to the public and appropriate state agencies.
(d) If a written complaint is filed with the board
[comptroller] that the board [comptroller] has authority to
resolve, the board [comptroller], at least quarterly and until
final disposition of the complaint, shall notify the parties to the
complaint of the status of the complaint unless notice would
jeopardize an undercover investigation.
(e) The board [comptroller] shall keep an information file
about each complaint filed with the board [comptroller] that the
board [comptroller] has authority to resolve.
Sec. 5.16. ADMINISTRATIVE PROVISIONS. (a) The board
[comptroller] may inspect the records or other materials of an
appraisal office or taxing unit, including the relevant records and
materials in the possession or control of a consultant, advisor, or
expert hired by the appraisal office or taxing unit, for the purpose
of:
(1) establishing, reviewing, or evaluating the value
of or an appraisal of any property; or
(2) conducting a study, review, or audit required by
Section 5.10, [or] 5.102, or 5.23 [by Section 403.302, Government
Code].
(b) On request of the board [comptroller], the chief
appraiser or administrative head of the taxing unit shall produce
the materials in the form and manner prescribed by the board
[comptroller].
SECTION 1.08. Subchapter M, Chapter 403, Government Code,
is transferred to Chapter 5, Tax Code, redesignated as Subchapter
B, and amended to read as follows:
SUBCHAPTER B [M]. STUDY OF SCHOOL DISTRICT PROPERTY VALUES
Sec. 5.21 [403.301]. PURPOSE. It is the policy of this
state to ensure equity among taxpayers in the burden of school
district taxes and among school districts in the distribution of
state financial aid for public education. The purpose of this
subchapter is to promote that policy by providing for uniformity in
local property appraisal practices and procedures and in the
determination of property values for schools in order to distribute
state funding equitably.
Sec. 5.22 [403.3011]. DEFINITIONS. In this subchapter:
(1) "Study" means a study conducted under Section 5.23
[403.302].
(2) "Eligible school district" means a school district
for which the board [comptroller] has determined the following:
(A) in the most recent study, the local value is
invalid under Section 5.23(c) [403.302(c)] and does not exceed the
state value for the school district determined in the study;
(B) in the two studies preceding the most recent
study, the school district's local value was valid under Section
5.23(c) [403.302(c)];
(C) in the most recent study, the aggregate local
value of all of the categories of property sampled by the board
[comptroller] is not less than 90 percent of the lower limit of the
margin of error as determined by the board [comptroller] of the
aggregate value as determined by the board [comptroller] of all of
the categories of property sampled by the board [comptroller]; and
(D) the appraisal district that appraises
property for the school district was in compliance with the scoring
requirement of the board's [comptroller's] most recent review of
the appraisal district conducted under Section 5.102[, Tax Code].
(3) "Local value" means 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 amounts
and values listed in Section 5.23(d) [403.302(d)] as determined by
that appraisal district.
(4) "State value" means the value of property in a
school district as determined in a study.
Sec. 5.23 [403.302]. DETERMINATION OF SCHOOL DISTRICT
PROPERTY VALUES. (a) The board [comptroller] shall conduct a 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 board
[comptroller] shall make appropriate adjustments in the study to
account for actions taken under Chapter 41, Education Code.
(a-1) The board [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
board [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 board [comptroller]
that the school district's local value was not valid.
(a-2) If in any year the board [comptroller] does not
conduct a study, the school district's local value for that year is
considered to be valid.
(b) In conducting the study, the board [comptroller] shall
determine the taxable value of property in each school district:
(1) using, if appropriate, samples selected through
generally accepted sampling techniques;
(2) according to generally accepted standard
valuation, statistical compilation, and analysis techniques;
(3) ensuring that different levels of appraisal on
sold and unsold property do not adversely affect the accuracy of the
study; and
(4) ensuring that different levels of appraisal
resulting from protests determined under Section 41.43[, Tax Code,]
are appropriately adjusted in the study.
(c) If after conducting the study the board [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 board [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 board [comptroller] shall use a margin of error that
does not exceed five percent unless the board [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 board [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 study for a tax year the
board [comptroller] determines that the local value for a school
district is not valid, the board [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 board [comptroller] in the school district, the board
[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 board [comptroller] for that category of property
in the immediately preceding study, in which case the board
[comptroller] shall use the weighted mean appraisal ratio
determined in the immediately preceding study minus four percentage
points;
(2) the board [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 board [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 board [comptroller], less total
deductions determined by the board [comptroller], determine the
taxable value for the school district.
(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 former 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) 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];
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253[, Tax Code];
(7) the difference between the board's [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 board
[comptroller] may not exceed the fair market value of the land;
(8) 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;
(9) 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, other than Section 11.311[, Tax Code,]
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,] before the expiration of the
subchapter;
(10) 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;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06[, Tax
Code];
(12) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065[, Tax Code]; and
(13) 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.
(d-1) For purposes of Subsection (d), a residence homestead
that receives an exemption under Section 11.131 or 11.132[, Tax
Code,] in the year that is the subject of the study is not
considered to be taxable property.
(e) The total dollar amount deducted in each year as
required by Subsection (d)(4) in a reinvestment zone created after
January 1, 1999, may not exceed the captured appraised value
estimated for that year as required by Section 311.011(c)(8)[, Tax
Code,] in the reinvestment zone financing plan approved under
Section 311.011(d)[, Tax Code,] before September 1, 1999. The
number of years for which the total dollar amount may be deducted
under Subsection (d)(4) shall for any zone, including those created
on or before January 1, 1999, be limited to the duration of the zone
as specified as required by Section 311.011(c)(9)[, Tax Code,] in
the reinvestment zone financing plan approved under Section
311.011(d)[, Tax Code,] before September 1, 1999. The total dollar
amount deducted under Subsection (d)(4) for any zone, including
those created on or before January 1, 1999, may not be increased by
any reinvestment zone financing plan amendments that occur after
August 31, 1999. The total dollar amount deducted under Subsection
(d)(4) for any zone, including those created on or before January 1,
1999, may not be increased by a change made after August 31, 1999,
in the portion of the tax increment retained by the school district.
(e-1) This subsection applies only to a reinvestment zone
created by a municipality that has a population of 70,000 or less
and is located in a county in which all or part of a military
installation is located. Notwithstanding Subsection (e), if on or
after January 1, 2017, the municipality adopts an ordinance
designating a termination date for the zone that is later than the
termination date designated in the ordinance creating the zone, the
number of years for which the total dollar amount may be deducted
under Subsection (d)(4) is limited to the duration of the zone as
determined under Section 311.017[, Tax Code].
(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).
(g) The board [comptroller] shall publish preliminary
findings, listing values by district, before February 1 of the year
following the year of the study. Preliminary findings shall be
delivered to each school district and shall be certified to the
commissioner of education.
(h) On request of the commissioner of education or a school
district, the board [comptroller] may audit the total taxable value
of property in a school district and may revise the 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 study findings by the board [comptroller].
Except as otherwise provided by this subsection, the request for
audit must be filed with the board [comptroller] not later than the
third anniversary of the date of the final certification of the
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 board [comptroller] shall
certify the findings of the audit to the commissioner of education.
(i) If the board [comptroller] determines in the 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 board [comptroller], in determining the taxable value of
property in the school district under Subsection (d), shall for
purposes of Subsection (d)(13) 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 board [comptroller] determines in the 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 board
[comptroller], in determining the taxable value of property in the
school district under Subsection (d), shall for purposes of
Subsection (d)(13) subtract from the market value as estimated by
the board [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].
(j) For purposes of Chapter 42, Education Code, the board
[comptroller] shall certify to the commissioner of education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $5,000;
(2) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
Regular Session, 1997; and
(3) a final value for each school district computed on
the effect of the reduction of the limitation on tax increases to
reflect any reduction in the school district tax rate as provided by
Section 11.26(a-1), (a-2), or (a-3), [Tax Code,] as applicable.
(k) For purposes of Section 42.2522, Education Code, the
board [comptroller] shall certify to the commissioner of education:
(1) a final value for each school district computed
without any deduction for residence homestead exemptions granted
under Section 11.13(n)[, Tax Code]; and
(2) a final value for each school district computed
after deducting one-half the total dollar amount of residence
homestead exemptions granted under Section 11.13(n)[, Tax Code].
(l) If after conducting the study for a year the board
[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.
(m) Subsection (d)(9) does not apply to property that was
the subject of an application under Subchapter B or C, Chapter 313,
[Tax Code,] made after May 1, 2009, that the board or comptroller,
as applicable, recommended should be disapproved.
(m-1) The State Property Tax Board's [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 board chair [comptroller];
(4) two members who represent school districts,
appointed by the board chair [comptroller]; and
(5) three members appointed by the board chair
[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, Government Code, does not apply to the
size, composition, or duration of the State Property Tax Board's
[Comptroller's] Property Value Study Advisory Committee.
(o) The board [comptroller] shall adopt rules governing the
conduct of the study after consultation with the board's
[Comptroller's] Property Value Study Advisory Committee.
Sec. 5.24 [403.303]. PROTEST. (a) A school district or a
property owner whose property is included in the study under
Section 5.23 [403.302] and whose tax liability on the property is
$100,000 or more may protest the board's [comptroller's] findings
under Section 5.23(g) or (h) [403.302(g) or (h)] by filing a
petition with the board [comptroller]. The petition must be filed
not later than the 40th day after the date on which the board's
[comptroller's] findings are certified to the commissioner of
education and must specify the grounds for objection and the value
claimed to be correct by the school district or property owner.
(b) After receipt of a petition, the board [comptroller]
shall hold a hearing. The board [comptroller] has the burden to
prove the accuracy of the findings. Until a final decision is made
by the board [comptroller], the taxable value of property in the
district is determined, with respect to property subject to the
protest, according to the value claimed by the school district or
property owner, except that the value to be used while a final
decision is pending may not be less than the appraisal roll value
for the year of the study. If after a hearing the board
[comptroller] concludes that the findings should be changed, the
board [comptroller] shall order the appropriate changes and shall
certify to the commissioner of education the changes in the values
of the school district that brought the protest, the values of the
school district named by the property owner who brought the
protest, or, if the board [comptroller] by rule allows an appraisal
district to bring a protest, the values of the school district named
by the appraisal district that brought the protest. The board
[comptroller] may not order a change in the values of a school
district as a result of a protest brought by another school
district, a property owner in the other school district, or an
appraisal district that appraises property for the other school
district. The board [comptroller] shall complete all protest
hearings and certify all changes as necessary to comply with
Chapter 42, Education Code. A hearing conducted under this
subsection is not a contested case for purposes of Section
2001.003, Government Code.
(c) The board [comptroller] shall adopt procedural rules
governing the conduct of protest hearings. The rules shall provide
each protesting school district and property owner with the
requirements for submitting a petition initiating a protest and
shall provide each protesting school district and property owner
with adequate notice of a hearing, an opportunity to present
evidence and oral argument, and notice of the board's
[comptroller's] decision on the hearing.
(d) A protesting school district may appeal a determination
of a protest by the board [comptroller] to a district court of
Travis County by filing a petition with the court. An appeal must
be filed not later than the 30th day after the date the school
district receives notification of a final decision on a protest.
Review is conducted by the court sitting without a jury. The court
shall remand the determination to the board [comptroller] if on the
review the court discovers that substantial rights of the school
district have been prejudiced, and that:
(1) the board [comptroller] has acted arbitrarily and
without regard to the facts; or
(2) the finding of the board [comptroller] is not
reasonably supported by substantial evidence introduced before the
court.
(e) If, in a hearing under Subsection (b), the board
[comptroller] has not heard the case or read the record, the
decision may not be made until a proposal for decision is served on
each party and an opportunity to file exceptions is afforded to each
party adversely affected. If exceptions are filed, an opportunity
must be afforded to all other parties to file replies to the
exceptions. The proposal for decision must contain a statement of
the reasons for the proposed decision, prepared by the person who
conducted the hearing or by a person who has read the record. The
proposal for decision may be amended pursuant to the exceptions or
replies submitted without again being served on the parties. The
parties by written stipulation may waive compliance with this
subsection. The board [comptroller] may adopt rules to implement
this subsection.
Sec. 5.25 [403.304]. COOPERATION WITH BOARD [COMPTROLLER];
CONFIDENTIALITY. (a) A school district, appraisal district, or
other governmental entity in this state shall promptly comply with
an oral or written request from the board [comptroller] for
information to be used in conducting a study, including information
that is made confidential by Chapter 552, Government Code [of this
code], Section 22.27 of this code, [Tax Code,] or another law of
this state.
(a-1) All information the board [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 is confidential
and may not be disclosed except as provided in Subsection (b).
(b) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who gave the information to the board
[comptroller]; or
(3) for statistical purposes if in a form that does not
identify specific property or a specific property owner.
ARTICLE 2. TRANSFER OF DUTIES AND CONFORMING AMENDMENTS
SECTION 2.01. Sections 1.085(e), (f), and (g), Tax Code,
are amended to read as follows:
(e) The State Property Tax Board [comptroller] by rule:
(1) shall prescribe acceptable media, formats,
content, and methods for the electronic transmission of notices
required by Section 25.19; and
(2) may prescribe acceptable media, formats, content,
and methods for the electronic transmission of other notices,
renditions, and applications.
(f) In an agreement entered into under this section, a chief
appraiser may select the medium, format, content, and method to be
used by the appraisal district from among those prescribed by the
State Property Tax Board [comptroller] under Subsection (e). If
the board [comptroller] has not prescribed the media, format,
content, and method applicable to the communication, the chief
appraiser may determine the medium, format, content, and method to
be used.
(g) Notwithstanding Subsection (a), if a property owner
whose property is included in 25 or more accounts in the appraisal
records of the appraisal district requests the chief appraiser to
enter into an agreement for the delivery of the notice required by
Section 25.19 in an electronic format, the chief appraiser must
enter into an agreement under this section for that purpose if the
appraisal district is located in a county that has a population of
more than 200,000. If the chief appraiser must enter into an
agreement under this subsection, the chief appraiser shall deliver
the notice in accordance with an electronic medium, format,
content, and method prescribed by the State Property Tax Board
[comptroller] under Subsection (e). If the board [comptroller] has
not prescribed the media, format, content, and method applicable to
the notice, the chief appraiser may determine the medium, format,
content, and method to be used.
SECTION 2.02. Sections 1.111(b), (e), and (h), Tax Code,
are amended to read as follows:
(b) The designation of an agent must be made by written
authorization on a form prescribed by the State Property Tax Board
[comptroller] under Subsection (h) and signed by the owner, a
property manager authorized to designate agents for the owner, or
another person authorized to act on behalf of the owner other than
the person being designated as agent, and must clearly indicate
that the person is authorized to act on behalf of the property owner
in property tax matters relating to the property or the property
owner. The designation may authorize the agent to represent the
owner in all property tax matters or in specific property tax
matters as identified in the designation. The designation does not
take effect with respect to an appraisal district or a taxing unit
participating in the appraisal district until a copy of the
designation is filed with the appraisal district. Each appraisal
district established for a county having a population of 500,000 or
more shall implement a system that allows a designation to be signed
and filed electronically.
(e) An agreement between a property owner or the owner's
agent and the chief appraiser is final if the agreement relates to a
matter:
(1) which may be protested to the appraisal review
board or on which a protest has been filed but not determined by the
appraisal review board; or
(2) which may be corrected under Section 25.25 or on
which a motion for correction under that section has been filed but
not determined by the appraisal review board.
(h) The State Property Tax Board [comptroller] shall
prescribe forms and adopt rules to facilitate compliance with this
section. The board [comptroller] shall include on any form used for
designation of an agent for a single-family residential property in
which the property owner resides the following statement in
boldfaced type:
"In some cases, you may want to contact your appraisal district or
other local taxing units for free information and/or forms
concerning your case before designating an agent."
SECTION 2.03. Sections 6.05(c) and (i), Tax Code, are
amended to read as follows:
(c) The chief appraiser is the chief administrator of the
appraisal office. Except as provided by Section 6.0501, the chief
appraiser is appointed by and serves at the pleasure of the
appraisal district board of directors. If a taxing unit performs
the duties of the appraisal office pursuant to a contract, the
assessor for the unit is the chief appraiser. To be eligible to be
appointed or serve as a chief appraiser, a person must be certified
as a registered professional appraiser under Section 1151.160,
Occupations Code, possess an MAI professional designation from the
Appraisal Institute, or possess an Assessment Administration
Specialist (AAS), Certified Assessment Evaluator (CAE), or
Residential Evaluation Specialist (RES) professional designation
from the International Association of Assessing Officers. A person
who is eligible to be appointed or serve as a chief appraiser by
having a professional designation described by this subsection must
become certified as a registered professional appraiser under
Section 1151.160, Occupations Code, not later than the fifth
anniversary of the date the person is appointed or begins to serve
as chief appraiser. A chief appraiser who is not eligible to be
appointed or serve as chief appraiser may not perform an action
authorized or required by law to be performed by a chief appraiser,
including the preparation, certification, or submission of any part
of the appraisal roll. Not later than January 1 of each year, a
chief appraiser shall notify the State Property Tax Board
[comptroller] in writing that the chief appraiser is either
eligible to be appointed or serve as the chief appraiser or not
eligible to be appointed or serve as the chief appraiser.
(i) To ensure adherence with generally accepted appraisal
practices, the board of directors of an appraisal district shall
develop biennially a written plan for the periodic reappraisal of
all property within the boundaries of the district according to the
requirements of Section 25.18 and shall hold a public hearing to
consider the proposed plan. Not later than the 10th day before the
date of the hearing, the secretary of the board shall deliver to the
presiding officer of the governing body of each taxing unit
participating in the district a written notice of the date, time,
and place for the hearing. Not later than September 15 of each
even-numbered year, the board shall complete its hearings, make any
amendments, and by resolution finally approve the plan. Copies of
the approved plan shall be distributed to the presiding officer of
the governing body of each taxing unit participating in the
district and to the State Property Tax Board [comptroller] within
60 days of the approval date.
SECTION 2.04. Section 6.0501, Tax Code, is amended to read
as follows:
Sec. 6.0501. APPOINTMENT OF ELIGIBLE CHIEF APPRAISER BY
STATE PROPERTY TAX BOARD [COMPTROLLER]. (a) The State Property Tax
Board [comptroller] shall appoint a person eligible to be a chief
appraiser under Section 6.05(c) or a person who has previously been
appointed or served as a chief appraiser to perform the duties of
chief appraiser for an appraisal district whose chief appraiser is
ineligible to serve.
(b) A chief appraiser appointed under this section serves
until the earlier of:
(1) the first anniversary of the date the State
Property Tax Board [comptroller] appoints the chief appraiser; or
(2) the date the board of directors of the appraisal
district:
(A) appoints a chief appraiser under Section
6.05(c); or
(B) contracts with an appraisal district or a
taxing unit to perform the duties of the appraisal office for the
district under Section 6.05(b).
(c) The State Property Tax Board [comptroller] shall
determine the compensation of a chief appraiser appointed under
this section. A chief appraiser appointed under this section shall
determine the budget necessary for the adequate operation of the
appraisal office, subject to the approval of the State Property Tax
Board [comptroller]. The board of directors of the appraisal
district shall amend the budget as necessary to compensate the
appointed chief appraiser and fund the appraisal office as
determined under this subsection.
(d) An appraisal district that does not appoint a chief
appraiser or contract with an appraisal district or a taxing unit to
perform the duties of the appraisal office by the first anniversary
of the date the State Property Tax Board [comptroller] appoints a
chief appraiser shall contract with an appraisal district or a
taxing unit to perform the duties of the appraisal office or with a
qualified public or private entity to perform the duties of the
chief appraiser, subject to the approval of the State Property Tax
Board [comptroller].
SECTION 2.05. Sections 6.052(a) and (b), Tax Code, are
amended to read as follows:
(a) The board of directors for an appraisal district created
for a county with a population of more than 120,000 shall appoint a
taxpayer liaison officer who shall serve at the pleasure of the
board. The taxpayer 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. In addition, the taxpayer
liaison officer is responsible for receiving, and compiling a list
of, comments and suggestions filed by the chief appraiser, a
property owner, or a property owner's agent concerning the matters
listed in Section 5.103(b) or any other matter related to the
fairness and efficiency of the appraisal review board established
for the appraisal district. The taxpayer liaison officer shall
forward to the State Property Tax Board [comptroller] comments and
suggestions filed under this subsection in the form and manner
prescribed by that board [the comptroller].
(b) The taxpayer liaison officer shall provide to the public
information and materials designed to assist property owners in
understanding the appraisal process, protest procedures, the
procedure for filing comments and suggestions under Subsection (a)
of this section or a complaint under Section 6.04(g), and other
matters. Information concerning the process for submitting
comments and suggestions to the State Property Tax Board
[comptroller] concerning an appraisal review board shall be
provided at each protest hearing.
SECTION 2.06. Section 6.412(c), Tax Code, is amended to
read as follows:
(c) A person is ineligible to serve on the appraisal review
board if the person is a member of the board of directors, an
officer, or an employee of the appraisal district, is an employee or
member of the State Property Tax Board [comptroller], or is a member
of the governing body, an officer, or an employee of a taxing unit.
SECTION 2.07. Section 11.11(b), Tax Code, is amended to
read as follows:
(b) Land owned by the Permanent University Fund is taxable
for county purposes. Any notice required by Section 25.19 [of this
code] shall be sent to the State Property Tax Board [comptroller],
and the board [comptroller] shall appear on [in] behalf of the state
in any protest or appeal relating to taxation of Permanent
University Fund land.
SECTION 2.08. Section 11.135(g), Tax Code, is amended to
read as follows:
(g) The State Property Tax Board [comptroller] shall adopt
rules and forms to implement this section.
SECTION 2.09. Section 11.182(i), Tax Code, is amended to
read as follows:
(i) If any property owned by an organization receiving an
exemption under this section has been acquired or sold during the
preceding year, such organization shall file by March 31 of the
following year with the chief appraiser in the county in which the
relevant property is located, on a form promulgated by the State
Property Tax Board [comptroller of public accounts], a list of such
properties acquired or sold during the preceding year.
SECTION 2.10. Section 11.26(e), Tax Code, is amended to
read as follows:
(e) For each school district in an appraisal district, the
chief appraiser shall determine the portion of the appraised value
of residence homesteads of individuals on which school district
taxes are not imposed in a tax year because of the limitation on tax
increases imposed by this section. That portion is calculated by
determining the taxable value that, if multiplied by the tax rate
adopted by the school district for the tax year, would produce an
amount equal to the amount of tax that would have been imposed by
the school district on those residence homesteads if the limitation
on tax increases imposed by this section were not in effect, but
that was not imposed because of that limitation. The chief
appraiser shall determine that taxable value and certify it to the
State Property Tax Board [comptroller] as soon as practicable for
each tax year.
SECTION 2.11. Section 11.27(b), Tax Code, is amended to
read as follows:
(b) The State Property Tax Board [comptroller], with the
assistance of the Texas Energy and Natural Resources Advisory
Council, or its successor, shall develop guidelines to assist local
officials in the administration of this section.
SECTION 2.12. Sections 11.43(f) and (j), Tax Code, are
amended to read as follows:
(f) The State Property Tax Board [comptroller], in
prescribing the contents of the application form for each kind of
exemption, shall ensure that the form requires an applicant to
furnish the information necessary to determine the validity of the
exemption claim. The form must require an applicant to provide the
applicant's name and driver's license number, personal
identification certificate number, or social security account
number. If the applicant is a charitable organization with a
federal tax identification number, the form must allow the
applicant to provide the organization's federal tax identification
number in lieu of a driver's license number, personal
identification certificate number, or social security account
number. The board [comptroller] shall include on the forms a notice
of the penalties prescribed by Section 37.10, Penal Code, for
making or filing an application containing a false statement. The
board [comptroller] shall include, on application forms for
exemptions that do not have to be claimed annually, a statement
explaining that the application need not be made annually and that
if the exemption is allowed, the applicant has a duty to notify the
chief appraiser when the applicant's entitlement to the exemption
ends. In this subsection:
(1) "Driver's license" has the meaning assigned that
term by Section 521.001, Transportation Code.
(2) "Personal identification certificate" means a
certificate issued by the Department of Public Safety under
Subchapter E, Chapter 521, Transportation Code.
(j) In addition to the items required by Subsection (f), an
application for a residence homestead exemption prescribed by the
State Property Tax Board [comptroller] and authorized by Section
11.13 must:
(1) list each owner of the residence homestead and the
interest of each owner;
(2) state that the applicant does not claim an
exemption under that section on another residence homestead in this
state or claim a residence homestead exemption on a residence
homestead outside this state;
(3) state that each fact contained in the application
is true;
(4) include a copy of the applicant's driver's license
or state-issued personal identification certificate unless the
applicant:
(A) is a resident of a facility that provides
services related to health, infirmity, or aging; or
(B) is certified for participation in the address
confidentiality program administered by the attorney general under
Subchapter C, Chapter 56, Code of Criminal Procedure;
(5) state that the applicant has read and understands
the notice of the penalties required by Subsection (f); and
(6) be signed by the applicant.
SECTION 2.13. Section 11.44(c), Tax Code, is amended to
read as follows:
(c) The State Property Tax Board [comptroller] shall
prescribe by rule the content of the explanation required by
Subsection (a) of this section, and shall require that each
exemption application form be printed and prepared:
(1) as a separate form from any other form; or
(2) on the front of the form if the form also provides
for other information.
SECTION 2.14. Section 11.48(b), Tax Code, is amended to
read as follows:
(b) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the application or to the
person's representative authorized in writing to receive the
information;
(3) to the State Property Tax Board [comptroller] and
the board's [comptroller's] employees authorized by the board
[comptroller] in writing to receive the information or to an
assessor or a chief appraiser if requested in writing;
(4) in a judicial or administrative proceeding
relating to property taxation to which the person who filed the
application is a party; or
(5) if and to the extent the information is required to
be included in a public document or record that the appraisal office
is required by law to prepare or maintain.
SECTION 2.15. Section 21.03(b), Tax Code, is amended to
read as follows:
(b) The State Property Tax Board [comptroller] shall adopt
rules:
(1) identifying the kinds of property subject to this
section; and
(2) establishing formulas for calculating the
proportion of total market value to be allocated to this state.
SECTION 2.16. Sections 21.031(e) and (f), Tax Code, are
amended to read as follows:
(e) To receive an allocation of value under this section, a
property owner must apply for the allocation on a form that
substantially complies with the form prescribed by the State
Property Tax Board [comptroller]. The application must be filed
with the chief appraiser for the district in which the property to
which the application applies is taxable before the approval of the
appraisal records by the appraisal review board as provided by
Section 41.12 [of this code].
(f) The State Property Tax Board [comptroller] shall
promulgate forms and may adopt rules consistent with the provisions
of this section.
SECTION 2.17. Section 21.09(c), Tax Code, is amended to
read as follows:
(c) The State Property Tax Board [comptroller] shall
prescribe the contents of the allocation application form and shall
ensure that the form requires an applicant to provide the
information necessary to determine the validity of the allocation
claim.
SECTION 2.18. Section 22.01(l), Tax Code, is amended to
read as follows:
(l) If the information contained in the most recent
rendition statement filed by a person in a prior tax year is
accurate with respect to the current tax year, the person may comply
with the requirements of Subsection (a) by filing a rendition
statement on a form prescribed or approved by the State Property Tax
Board [comptroller] under Section 22.24(c) on which the person has
checked the appropriate box to affirm that the information
continues to be complete and accurate.
SECTION 2.19. Section 22.21, Tax Code, is amended to read as
follows:
Sec. 22.21. PUBLICIZING REQUIREMENTS. Each year the State
Property Tax Board [comptroller] and each chief appraiser shall
publicize in a manner reasonably designed to notify all property
owners the requirements of the law relating to filing rendition
statements and property reports and of the availability of forms.
SECTION 2.20. Sections 22.24(a), (c), and (e), Tax Code,
are amended to read as follows:
(a) A person required to render property or to file a report
as provided by this chapter shall use a form that substantially
complies with the appropriate form prescribed or approved by the
State Property Tax Board [comptroller].
(c) The State Property Tax Board [comptroller] may
prescribe or approve different forms for different kinds of
property but shall ensure that each form requires a property owner
to furnish the information necessary to identify the property and
to determine its ownership, taxability, and situs. Each form must
include a box that the property owner may check to permit the
property owner to affirm that the information contained in the most
recent rendition statement filed by the property owner in a prior
tax year is accurate with respect to the current tax year in
accordance with Section 22.01(l). A form may not require but may
permit a property owner to furnish information not specifically
required by this chapter to be reported. In addition, a form
prescribed or approved under this subsection must contain the
following statement in bold type: "If you make a false statement on
this form, you could be found guilty of a Class A misdemeanor or a
state jail felony under Section 37.10, Penal Code."
(e) To be valid, a rendition or report must be sworn to
before an officer authorized by law to administer an oath. The
State Property Tax Board [comptroller] may not prescribe or approve
a rendition or report form unless the form provides for the person
filing the form to swear that the information provided in the
rendition or report is true and accurate to the best of the person's
knowledge and belief. This subsection does not apply to a rendition
or report filed by a secured party, as defined by Section 22.01, the
property owner, an employee of the property owner, or an employee of
a property owner on behalf of an affiliated entity of the property
owner.
SECTION 2.21. Sections 22.27(a), (b), and (d), Tax Code,
are amended to read as follows:
(a) Rendition statements, real and personal property
reports, attachments to those statements and reports, and other
information the owner of property provides to the appraisal office
in connection with the appraisal of the property, including income
and expense information related to a property filed with an
appraisal office and information voluntarily disclosed to an
appraisal office or the State Property Tax Board [comptroller]
about real or personal property sales prices after a promise it will
be held confidential, are confidential and not open to public
inspection. The statements and reports and the information they
contain about specific real or personal property or a specific real
or personal property owner and information voluntarily disclosed to
an appraisal office about real or personal property sales prices
after a promise it will be held confidential may not be disclosed to
anyone other than an employee of the appraisal office who appraises
property except as authorized by Subsection (b) of this section.
(b) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the statement or report or
the owner of property subject to the statement, report, or
information or to a representative of either authorized in writing
to receive the information;
(3) to the State Property Tax Board [comptroller] and
the board's [comptroller's] employees authorized by the board
[comptroller] in writing to receive the information or to an
assessor or a chief appraiser if requested in writing;
(4) in a judicial or administrative proceeding
relating to property taxation to which the person who filed the
statement or report or the owner of the property that is a subject
of the statement, report, or information is a party;
(5) for statistical purposes if in a form that does not
identify specific property or a specific property owner;
(6) if and to the extent the information is required to
be included in a public document or record that the appraisal office
is required to prepare or maintain;
(7) to a taxing unit or its legal representative that
is engaged in the collection of delinquent taxes on the property
that is the subject of the information;
(8) to an employee or agent of a taxing unit
responsible for auditing, monitoring, or reviewing the operations
of an appraisal district; or
(9) to an employee or agent of a school district that
is engaged in the preparation of a protest of the State Property Tax
Board's [comptroller's] property value study in accordance with
Section 5.24 [403.303, Government Code].
(d) No person who directly or indirectly provides
information to the State Property Tax Board [comptroller] or
appraisal office about real or personal property sales prices,
either as set forth in Subsection (a) of this section under a
promise of confidentiality, or otherwise, shall be liable to any
other person as the result of providing such information.
SECTION 2.22. Sections 23.121(a)(3) and (6), Tax Code, are
amended to read as follows:
(3) "Dealer" means a person who holds a dealer's
general distinguishing number issued by the Texas Department of
Motor Vehicles under the authority of Chapter 503, Transportation
Code, or who is legally recognized as a motor vehicle dealer
pursuant to the law of another state and who complies with the terms
of Section 152.063(f). The term does not include:
(A) a person who holds a manufacturer's license
issued under Chapter 2301, Occupations Code;
(B) an entity that is owned or controlled by a
person who holds a manufacturer's license issued under Chapter
2301, Occupations Code;
(C) a dealer whose general distinguishing number
issued by the Texas Department of Motor Vehicles under the
authority of Chapter 503, Transportation Code, prohibits the dealer
from selling a vehicle to any person except a dealer; or
(D) a dealer who:
(i) does not sell motor vehicles described
by Section 152.001(3)(A);
(ii) meets either of the following
requirements:
(a) the total annual sales from the
dealer's motor vehicle inventory, less sales to dealers, fleet
transactions, and subsequent sales, for the 12-month period
corresponding to the preceding tax year are 25 percent or less of
the dealer's total revenue from all sources during that period; or
(b) the dealer did not sell a motor
vehicle to a person other than another dealer during the 12-month
period corresponding to the preceding tax year and the dealer
estimates that the dealer's total annual sales from the dealer's
motor vehicle inventory, less sales to dealers, fleet transactions,
and subsequent sales, for the 12-month period corresponding to the
current tax year will be 25 percent or less of the dealer's total
revenue from all sources during that period;
(iii) not later than August 31 of the
preceding tax year, filed with the chief appraiser and the
collector a declaration on a form prescribed by the State Property
Tax Board [comptroller] stating that the dealer elected not to be
treated as a dealer under this section in the current tax year; and
(iv) renders the dealer's motor vehicle
inventory in the current tax year by filing a rendition with the
chief appraiser in the manner provided by Chapter 22.
(6) "Declaration" means the dealer's motor vehicle
inventory declaration form promulgated by the State Property Tax
Board [comptroller] as required by this section.
SECTION 2.23. Section 23.121(f), Tax Code, is amended to
read as follows:
(f) The State Property Tax Board [comptroller] shall
promulgate a form entitled Dealer's Motor Vehicle Inventory
Declaration. Except as provided by Section 23.122(l), not later
than February 1 of each year, or, in the case of a dealer who was not
in business on January 1, not later than 30 days after commencement
of business, each dealer shall file a declaration with the chief
appraiser and file a copy with the collector. For purposes of this
subsection, a dealer is presumed to have commenced business on the
date of issuance to the dealer of a dealer's general distinguishing
number as provided by Chapter 503, Transportation Code.
Notwithstanding the presumption created by this subsection, a chief
appraiser may, at his or her sole discretion, designate as the date
on which a dealer commenced business a date other than the date of
issuance to the dealer of a dealer's general distinguishing number.
The declaration is sufficient to comply with this subsection if it
sets forth the following information:
(1) the name and business address of each location at
which the dealer owner conducts business;
(2) each of the dealer's general distinguishing
numbers issued by the Texas Department of Motor Vehicles;
(3) a statement that the dealer owner is the owner of a
dealer's motor vehicle inventory; and
(4) the market value of the dealer's motor vehicle
inventory for the current tax year as computed under Section
23.121(b).
SECTION 2.24. Sections 23.122(a) and (e), Tax Code, are
amended to read as follows:
(a) In this section:
(1) "Aggregate tax rate" means the combined tax rates
of all relevant taxing units authorized by law to levy property
taxes against a dealer's motor vehicle inventory.
(2) "Chief appraiser" has the meaning given it in
Section 23.121 [of this code].
(3) "Collector" has the meaning given it in Section
23.121 [of this code].
(4) "Dealer's motor vehicle inventory" has the meaning
given it in Section 23.121 [of this code].
(5) "Declaration" has the meaning given it in Section
23.121 [of this code].
(6) "Owner" has the meaning given it in Section 23.121
[of this code].
(7) "Relevant taxing unit" means a taxing unit,
including the county, authorized by law to levy property taxes
against a dealer's motor vehicle inventory.
(8) "Sales price" has the meaning given it in Section
23.121 [of this code].
(9) "Statement" means the Dealer's Motor Vehicle
Inventory Tax Statement filed on a form promulgated by the State
Property Tax Board [comptroller] as required by this section.
(10) "Subsequent sale" has the meaning given it in
Section 23.121 [of this code].
(11) "Total annual sales" has the meaning given it in
Section 23.121 [of this code].
(12) "Unit property tax factor" means a number equal
to one-twelfth of the prior year aggregate tax rate at the location
where a dealer's motor vehicle inventory is located on January 1 of
the current year.
(e) The State Property Tax Board [comptroller] shall
promulgate a form entitled a Dealer's Motor Vehicle Inventory Tax
Statement. Each month, a dealer shall complete the form regardless
of whether a motor vehicle is sold. A dealer may use no other form
for that purpose. The statement may include the information the
board [comptroller] deems appropriate but shall include at least
the following:
(1) a description of each motor vehicle sold;
(2) the sales price of the motor vehicle;
(3) the unit property tax of the motor vehicle if any;
and
(4) the reason no unit property tax is assigned if no
unit property tax is assigned.
SECTION 2.25. Section 23.123(c), Tax Code, is amended to
read as follows:
(c) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the declaration or
statement or to that person's representative authorized by the
person in writing to receive the information;
(3) to the comptroller or an employee of the
comptroller authorized by the comptroller to receive the
information;
(4) to a collector or chief appraiser;
(5) to a district attorney, criminal district attorney
or county attorney involved in the enforcement of a penalty imposed
pursuant to Section 23.121 or Section 23.122;
(6) for statistical purposes if in a form that does not
identify specific property or a specific property owner;
(7) if and to the extent that the information is
required for inclusion in a public document or record that the
appraisal or collection office is required by law to prepare or
maintain; [or]
(8) to the Texas Department of Motor Vehicles for use
by that department in auditing compliance of its licensees with
appropriate provisions of applicable law; or
(9) to the State Property Tax Board or an employee of
the board authorized by the board to receive the information.
SECTION 2.26. Section 23.124(a)(6), Tax Code, is amended to
read as follows:
(6) "Declaration" means the dealer's vessel and
outboard motor inventory declaration form promulgated by the State
Property Tax Board [comptroller] as required by this section.
SECTION 2.27. Section 23.124(f), Tax Code, is amended to
read as follows:
(f) The State Property Tax Board [comptroller] shall
promulgate a form entitled "Dealer's Vessel and Outboard Motor
Inventory Declaration." Except as provided by Section 23.125(l)
[of this code], not later than February 1 of each year or, in the
case of a dealer who was not in business on January 1, not later than
30 days after commencement of business, each dealer shall file a
declaration with the chief appraiser and file a copy with the
collector. The declaration is sufficient to comply with this
subsection if it sets forth the following information:
(1) the name and business address of each location at
which the dealer owner conducts business;
(2) each of the dealer's and manufacturer's numbers
issued by the Parks and Wildlife Department;
(3) a statement that the dealer owner is the owner of a
dealer's vessel and outboard motor inventory; and
(4) the market value of the dealer's vessel and
outboard motor inventory for the current tax year as computed under
Subsection (b) of this section.
SECTION 2.28. Section 23.1241(a)(4), Tax Code, is amended
to read as follows:
(4) "Declaration" means a dealer's heavy equipment
inventory declaration form adopted by the State Property Tax Board
[comptroller] under this section.
SECTION 2.29. Section 23.1241(f), Tax Code, is amended to
read as follows:
(f) The State Property Tax Board [comptroller] by rule shall
adopt a dealer's heavy equipment inventory declaration form.
Except as provided by Section 23.1242(k), not later than February 1
of each year, or, in the case of a dealer who was not in business on
January 1, not later than 30 days after commencement of business,
each dealer shall file a declaration with the chief appraiser and
file a copy with the collector. The declaration is sufficient to
comply with this subsection if it sets forth:
(1) the name and business address of each location at
which the declarant conducts business;
(2) a statement that the declarant is the owner of a
dealer's heavy equipment inventory; and
(3) the market value of the declarant's heavy
equipment inventory for the current tax year as computed under
Subsection (b).
SECTION 2.30. Section 23.1242(a)(3), Tax Code, is amended
to read as follows:
(3) "Statement" means the dealer's heavy equipment
inventory tax statement filed on a form adopted by the State
Property Tax Board [comptroller] under this section.
SECTION 2.31. Section 23.1242(e), Tax Code, is amended to
read as follows:
(e) The State Property Tax Board [comptroller] by rule shall
adopt a dealer's heavy equipment inventory tax statement form.
Each month, a dealer shall complete the form regardless of whether
an item of heavy equipment is sold, leased, or rented. A dealer may
use no other form for that purpose. The statement may include the
information the board [comptroller] considers appropriate but
shall include at least the following:
(1) a description of each item of heavy equipment
sold, leased, or rented including any unique identification or
serial number affixed to the item by the manufacturer;
(2) the sales price of or lease or rental payment
received for the item of heavy equipment, as applicable;
(3) the unit property tax of the item of heavy
equipment, if any; and
(4) the reason no unit property tax is assigned if no
unit property tax is assigned.
SECTION 2.32. Sections 23.125(a) and (e), Tax Code, are
amended to read as follows:
(a) In [in] this section:
(1) "Aggregate tax rate" means the combined tax rates
of all relevant taxing units authorized by law to levy property
taxes against a dealer's vessel and outboard motor inventory.
(2) "Chief appraiser" has the meaning given it in
Section 23.124 [of this code].
(3) "Collector" has the meaning given it in Section
23.124 [of this code].
(4) "Dealer's vessel and outboard motor inventory" has
the meaning given it in Section 23.124 [of this code].
(5) "Declaration" has the meaning given it in Section
23.124 [of this code].
(6) "Owner" has the meaning given it in Section 23.124
[of this code].
(7) "Relevant taxing unit" means a taxing unit,
including the county, authorized by law to levy property taxes
against a dealer's vessel and outboard motor inventory.
(8) "Sales price" has the meaning given it in Section
23.124 [of this code].
(9) "Statement" means the dealer's vessel and outboard
motor inventory tax statement filed on a form promulgated by the
State Property Tax Board [comptroller] as required by this section.
(10) "Subsequent sale" has the meaning given it in
Section 23.124 [of this code].
(11) "Total annual sales" has the meaning given it in
Section 23.124 [of this code].
(12) "Unit property tax factor" means a number equal
to one-twelfth of the prior year aggregate tax rate at the location
where a dealer's vessel and outboard motor inventory is located on
January 1 of the current year.
(e) The State Property Tax Board [comptroller] shall
promulgate a form entitled "Dealer's Vessel and Outboard Motor
Inventory Tax Statement." Each month, a dealer shall complete the
form regardless of whether a vessel and outboard motor is sold. A
dealer may use no other form for that purpose. The statement may
include the information the board [comptroller] deems appropriate
but shall include at least the following:
(1) a description of each vessel or outboard motor
sold;
(2) the sales price of the vessel or outboard motor;
(3) the unit property tax of the vessel or outboard
motor, if any; and
(4) the reason no unit property tax is assigned if no
unit property tax is assigned.
SECTION 2.33. Section 23.126(c), Tax Code, is amended to
read as follows:
(c) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the declaration or
statement or to that person's representative authorized by the
person in writing to receive the information;
(3) to the comptroller or an employee of the
comptroller authorized by the comptroller to receive the
information;
(4) to a collector or chief appraiser;
(5) to a district attorney, criminal district
attorney, or county attorney involved in the enforcement of a
penalty imposed pursuant to Section 23.124 or Section 23.125 [of
this code];
(6) for statistical purposes if in a form that does not
identify specific property or a specific property owner; [or]
(7) if and to the extent that the information is
required for inclusion in a document or record that the appraisal or
collection office is required by law to prepare or maintain; or
(8) to the State Property Tax Board or an employee of
the board authorized by the board to receive the information.
SECTION 2.34. Section 23.127(a)(3), Tax Code, is amended to
read as follows:
(3) "Declaration" means a retail manufactured housing
inventory declaration form adopted by the State Property Tax Board
[comptroller] under this section.
SECTION 2.35. Section 23.127(f), Tax Code, is amended to
read as follows:
(f) The State Property Tax Board [comptroller] by rule shall
adopt a form entitled "Retail Manufactured Housing Inventory
Declaration." Except as provided by Section 23.128(k), not later
than February 1 of each year or, in the case of a retailer who was
not in business on January 1, not later than the 30th day after the
date the retailer commences business, each retailer shall file a
declaration with the chief appraiser and file a copy with the
collector. The declaration is sufficient to comply with this
subsection if it sets forth the following information:
(1) the name and business address of each location at
which the retailer conducts business;
(2) the retailer's license number issued by the
department;
(3) a statement that the retailer is the owner of a
retail manufactured housing inventory; and
(4) the market value of the retailer's manufactured
housing inventory for the current tax year as computed under
Subsection (b).
SECTION 2.36. Section 23.128(a)(4), Tax Code, is amended to
read as follows:
(4) "Statement" means the retail manufactured housing
inventory tax statement filed on a form adopted by the State
Property Tax Board [comptroller] under this section.
SECTION 2.37. Section 23.128(e), Tax Code, is amended to
read as follows:
(e) The State Property Tax Board [comptroller] by rule shall
adopt a form entitled "Retail Manufactured Housing Inventory Tax
Statement." Each month, a retailer shall complete the form
regardless of whether a unit of manufactured housing is sold. A
retailer may not use another form for that purpose. The statement
shall include:
(1) a description of the unit of manufactured housing
sold, including any unique identification or serial number affixed
to each unit by the manufacturer;
(2) the sales price of the unit of manufactured
housing;
(3) any unit property tax of the unit of manufactured
housing;
(4) the reason a unit property tax is not assigned if
that is the case; and
(5) any other information the board [comptroller]
considers appropriate.
SECTION 2.38. Section 23.175(b), Tax Code, is amended to
read as follows:
(b) The State Property Tax Board [comptroller] by rule shall
develop and distribute to each appraisal office appraisal manuals
that specify the formula to be used in computing the limit on the
price for an interest used in the second through the sixth year of
an appraisal and the methods and procedures to discount future
income from the sale of oil or gas from the interest to present
value.
SECTION 2.39. Sections 23.41(b) and (e), Tax Code, are
amended to read as follows:
(b) The State Property Tax Board [comptroller] shall
promulgate rules specifying the methods to apply and the procedures
to use in appraising land designated for agricultural use.
(e) Improvements other than appurtenances to the land, the
mineral estate, and all land used for residential purposes and for
processing harvested agricultural products are appraised
separately at market value. Riparian water rights, private roads,
dams, reservoirs, water wells, and canals, ditches, terraces, and
similar reshapings of or additions to the soil for agricultural
purposes are appurtenances to the land, and the effect of each on
the value of the land for agricultural use shall be considered in
appraising the land. However, the State Property Tax Board
[comptroller] shall provide that in calculating average net income
from land a deduction from income be allowed for an appurtenance
subject to depreciation or depletion.
SECTION 2.40. Section 23.43(d), Tax Code, is amended to
read as follows:
(d) The State Property Tax Board [comptroller] in
prescribing the contents of the application forms shall ensure that
each form requires a claimant to furnish the information necessary
to determine the validity of the claim. The board [comptroller]
shall require that the form permit a claimant who has previously
been allowed an agricultural designation to indicate that
previously reported information has not changed and to supply only
the eligibility information not previously reported.
SECTION 2.41. Section 23.45(b), Tax Code, is amended to
read as follows:
(b) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the application or to the
person's [his] representative authorized in writing to receive the
information;
(3) to the comptroller and to employees of the
comptroller [his employees] authorized by the comptroller [him] in
writing to receive the information or to an assessor or a chief
appraiser if requested in writing by that official;
(4) in a judicial or administrative proceeding
relating to property taxation to which the person who filed the
application is a party;
(5) for statistical purposes if in a form that does not
identify specific property or a specific property owner; [or]
(6) if and to the extent the information is required to
be included in a public document or record that the appraisal office
is required to prepare or maintain; or
(7) to the State Property Tax Board or an employee of
the board authorized by the board to receive the information.
SECTION 2.42. Section 23.52(d), Tax Code, is amended to
read as follows:
(d) The State Property Tax Board [comptroller] by rule shall
develop and distribute to each appraisal office appraisal manuals
setting forth this method of appraising qualified open-space land,
and each appraisal office shall use the appraisal manuals in
appraising qualified open-space land. The board [comptroller] by
rule shall develop and the appraisal office shall enforce
procedures to verify that land meets the conditions contained in
Subdivision (1) of Section 23.51 [of this code]. The rules, before
taking effect, must be approved by a majority vote of a committee
comprised of the following officials or their designees: the
governor, the comptroller, the attorney general, the agriculture
commissioner, and the Commissioner of the General Land Office.
SECTION 2.43. Section 23.521(a), Tax Code, is amended to
read as follows:
(a) The Parks and Wildlife Department, with the assistance
of the State Property Tax Board [comptroller], shall develop
standards for determining whether land qualifies under Section
23.51(7) for appraisal under this subchapter. The board
[comptroller] by rule shall adopt the standards developed by the
Parks and Wildlife Department and distribute those rules to each
appraisal district. On request of the Parks and Wildlife
Department, the Texas Agricultural Extension Service shall assist
the department in developing the standards.
SECTION 2.44. Sections 23.54(b) and (c), Tax Code, are
amended to read as follows:
(b) To be valid, the application must:
(1) be on a form provided by the appraisal office and
prescribed by the State Property Tax Board [comptroller]; and
(2) contain the information necessary to determine the
validity of the claim.
(c) The State Property Tax Board [comptroller] shall
include on the form a notice of the penalties prescribed by Section
37.10, Penal Code, for making or filing an application containing a
false statement. The board [comptroller], in prescribing the
contents of the application form, shall require that the form
permit a claimant who has previously been allowed appraisal under
this subchapter to indicate that previously reported information
has not changed and to supply only the eligibility information not
previously reported.
SECTION 2.45. Section 23.73(b), Tax Code, is amended to
read as follows:
(b) The State Property Tax Board [comptroller] by rule shall
develop and distribute to each appraisal office appraisal manuals
setting forth this method of appraising qualified timber land, and
each appraisal office shall use the appraisal manuals in appraising
qualified timber land. The board [comptroller] by rule shall
develop and the appraisal office shall enforce procedures to verify
that land meets the conditions contained in Section 23.72 [of this
code]. The rules, before taking effect, must be approved by
majority vote of a committee comprised of the following officials
or their designees: the governor, the comptroller, the attorney
general, the agriculture commissioner, and the Commissioner of the
General Land Office.
SECTION 2.46. Sections 23.75(b) and (c), Tax Code, are
amended to read as follows:
(b) To be valid, the application must:
(1) be on a form provided by the appraisal office and
prescribed by the State Property Tax Board [comptroller]; and
(2) contain the information necessary to determine the
validity of the claim.
(c) The State Property Tax Board [comptroller] shall
include on the form a notice of the penalties prescribed by Section
37.10, Penal Code, for making or filing an application containing a
false statement. The board [comptroller], in prescribing the
contents of the application form, shall require that the form
permit a claimant who has previously been allowed appraisal under
this subchapter to indicate that previously reported information
has not changed and to supply only the eligibility information not
previously reported.
SECTION 2.47. Section 23.83(e), Tax Code, is amended to
read as follows:
(e) The State Property Tax Board [comptroller] shall
promulgate rules specifying the methods to apply and the procedures
to use in appraising land under this subchapter.
SECTION 2.48. Section 23.84(f), Tax Code, is amended to
read as follows:
(f) The State Property Tax Board [comptroller] in
prescribing the contents of the application forms shall ensure that
each form requires a claimant to furnish the information necessary
to determine the validity of the claim and that the form requires
the claimant to state that the land for which he or she claims
appraisal under this subchapter will be used exclusively for
recreational, park, or scenic uses in the current year.
SECTION 2.49. Section 23.93(e), Tax Code, is amended to
read as follows:
(e) The State Property Tax Board [comptroller] shall
promulgate rules specifying the methods to apply and the procedures
to use in appraising property under this subchapter.
SECTION 2.50. Section 23.94(f), Tax Code, is amended to
read as follows:
(f) The State Property Tax Board [comptroller] in
prescribing the contents of the application forms shall ensure that
each form requires a claimant to furnish the information necessary
to determine the validity of the claim and that the form requires
the claimant to state that the airport property for which he or she
claims appraisal under this subchapter will be used exclusively as
public access airport property in the current year.
SECTION 2.51. Sections 23.9804(b), (c), and (d), Tax Code,
are amended to read as follows:
(b) To be valid, an application for appraisal under Section
23.9802(a) must:
(1) be on a form provided by the appraisal office and
prescribed by the State Property Tax Board [comptroller];
(2) provide evidence that the land qualifies for
designation as an aesthetic management zone, critical wildlife
habitat zone, or streamside management zone;
(3) specify the location of the proposed zone and the
quantity of land, in acres, in the proposed zone; and
(4) contain other information necessary to determine
the validity of the claim.
(c) To be valid, an application for appraisal under Section
23.9802(b) must:
(1) be on a form provided by the appraisal office and
prescribed by the State Property Tax Board [comptroller];
(2) provide evidence that the land on which the timber
was harvested was appraised under Subchapter E in the year in which
the timber was harvested;
(3) provide evidence that all of the land has been
regenerated in compliance with Section 23.9802(b)(2); and
(4) contain other information necessary to determine
the validity of the claim.
(d) The State Property Tax Board [comptroller] shall
include on the form a notice of the penalties prescribed by Section
37.10, Penal Code, for making or filing an application containing a
false statement. The board [comptroller], in prescribing the
contents of the application form, shall require that the form
permit a claimant who has previously been allowed appraisal under
this subchapter to indicate that the previously reported
information has not changed and to supply only the eligibility
information not previously reported.
SECTION 2.52. Section 24.32(c), Tax Code, is amended to
read as follows:
(c) A report required by this section must be on a form
prescribed by the State Property Tax Board [comptroller]. In
prescribing the form, the board [comptroller] shall ensure that it
requires the information necessary to determine market value of
rolling stock used in this state.
SECTION 2.53. Section 24.34(b), Tax Code, is amended to
read as follows:
(b) The State Property Tax Board [comptroller] shall adopt
rules establishing formulas for interstate allocation of the value
of railroad rolling stock.
SECTION 2.54. Section 24.36, Tax Code, is amended to read as
follows:
Sec. 24.36. CERTIFICATION TO STATE PROPERTY TAX BOARD
[COMPTROLLER]. On approval of the appraised value of the rolling
stock as provided by Chapter 41 of this code, the chief appraiser
shall certify to the State Property Tax Board [comptroller] the
amount of market value allocated to this state for each owner whose
rolling stock is appraised in the county and the name and business
address of each owner.
SECTION 2.55. Section 24.365, Tax Code, is amended to read
as follows:
Sec. 24.365. CORRECTION OF CERTIFIED AMOUNT. (a) A chief
appraiser who discovers that the chief appraiser's certification to
the State Property Tax Board [comptroller] of the amount of the
market value of rolling stock allocated to this state under Section
24.36 was incomplete or incorrect shall immediately certify the
correct amount of that market value to the board [comptroller].
(b) As soon as practicable after the State Property Tax
Board [comptroller] receives the correct certification from the
chief appraiser, the board [comptroller] shall certify to the
county assessor-collector for each affected county the information
required by Section 24.38 as corrected.
SECTION 2.56. Section 24.37, Tax Code, is amended to read as
follows:
Sec. 24.37. INTRASTATE APPORTIONMENT. The State Property
Tax Board [comptroller] shall apportion the appraised value of each
owner's rolling stock to each county in which the railroad using it
operates according to the ratio the mileage of road owned by the
railroad in the county bears to the total mileage of road the
railroad owns in this state.
SECTION 2.57. Section 24.38, Tax Code, is amended to read as
follows:
Sec. 24.38. CERTIFICATION OF APPORTIONED VALUE. Before
July 26, the State Property Tax Board [comptroller] shall certify
to the county assessor-collector for each county in which a
railroad operates:
(1) the county's apportioned amount of the market
value of each owner's rolling stock; and
(2) the name and business address of each owner.
SECTION 2.58. Section 24.40(a), Tax Code, is amended to
read as follows:
(a) If a chief appraiser discovers that rolling stock used
in this state and subject to appraisal by him or her has not been
appraised and apportioned to the counties in one of the two
preceding years, the appraiser [he] shall appraise the property as
of January 1 for each year it was omitted, submit the appraisal for
review and protest, and certify the approved value to the State
Property Tax Board [comptroller].
SECTION 2.59. Section 25.011(b), Tax Code, is amended to
read as follows:
(b) The record for each type of specially appraised property
must be maintained in a separate document for each 12-month period
beginning June 1. The document must include the name of at least one
owner of the property, the acreage of the property, and other
information sufficient to identify the property as required by the
State Property Tax Board [comptroller]. All entries in each
document must be kept in alphabetical order according to the last
name of each owner whose name is part of the record.
SECTION 2.60. Section 25.02(a), Tax Code, is amended to
read as follows:
(a) The appraisal records shall be in the form prescribed by
the State Property Tax Board [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 tax year to which the appraisal applies; and
(11) an identification of each taxing unit in which
the property is taxable.
SECTION 2.61. Section 25.025(b), Tax Code, is amended to
read as follows:
(b) Information in appraisal records under Section 25.02 is
confidential and is available only for the official use of the
appraisal district, this state, the State Property Tax Board
[comptroller], and taxing units and political subdivisions of this
state if:
(1) the information identifies the home address of a
named individual to whom this section applies; and
(2) the individual chooses to restrict public access
to the information on the form prescribed for that purpose by the
board [comptroller] under Section 5.07.
SECTION 2.62. Section 25.026(b), Tax Code, is amended to
read as follows:
(b) Information in appraisal records under Section 25.02 is
confidential and is available only for the official use of the
appraisal district, this state, the State Property Tax Board
[comptroller], and taxing units and political subdivisions of this
state if the information identifies the address of a family
violence shelter center, a sexual assault program, or a victims of
trafficking shelter center.
SECTION 2.63. Section 25.03(b), Tax Code, is amended to
read as follows:
(b) The State Property Tax Board [comptroller] may adopt
rules establishing minimum standards for descriptions of property.
SECTION 2.64. Sections 25.19(i) and (j), Tax Code, are
amended to read as follows:
(i) Delivery with a notice required by Subsection (a) or (g)
of a copy of the pamphlet published by the State Property Tax Board
[comptroller] under Section 5.06 or a copy of the notice published
by the chief appraiser under Section 41.70 is sufficient to comply
with the requirement that the notice include the information
specified by Subsection (b)(7) or (g)(3), as applicable.
(j) The chief appraiser shall include with a notice required
by Subsection (a) or (g):
(1) a copy of a notice of protest form as prescribed by
the State Property Tax Board [comptroller] under Section 41.44(d);
and
(2) instructions for completing and mailing the form
to the appraisal review board and requesting a hearing on the
protest.
SECTION 2.65. Section 25.23(b), Tax Code, is amended to
read as follows:
(b) Supplemental appraisal records shall be in the form
prescribed by the State Property Tax Board [comptroller] and shall
include the items required by Section 25.02 [of this code].
SECTION 2.66. Section 26.01(b), Tax Code, is amended to
read as follows:
(b) When a chief appraiser submits an appraisal roll for
county taxes to a county assessor-collector, the chief appraiser
also shall certify the appraisal district appraisal roll to the
State Property Tax Board [comptroller]. However, the board
[comptroller] by rule may provide for submission of only a summary
of the appraisal roll. The chief appraiser shall certify the
district appraisal roll or the summary of that roll in the form and
manner prescribed by the board's [comptroller's] rule.
SECTION 2.67. Section 26.04(e), Tax Code, is amended to
read as follows:
(e) By August 7 or as soon thereafter as practicable, the
designated officer or employee shall submit the rates to the
governing body. The officer or employee [He] shall deliver by mail
to each property owner in the unit or publish in a newspaper in the
form prescribed by the State Property Tax Board [comptroller]:
(1) the effective tax rate, the rollback tax rate, and
an explanation of how they were calculated;
(2) the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding existing debt
obligation;
(3) a schedule of the unit's debt obligations showing:
(A) the amount of principal and interest that
will be paid to service the unit's debts in the next year from
property tax revenue, including payments of lawfully incurred
contractual obligations providing security for the payment of the
principal of and interest on bonds and other evidences of
indebtedness issued on behalf of the unit by another political
subdivision and, if the unit is created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, payments on
debts that the unit anticipates to incur in the next calendar year;
(B) the amount by which taxes imposed for debt
are to be increased because of the unit's anticipated collection
rate; and
(C) the total of the amounts listed in Paragraphs
(A)-(B), less any amount collected in excess of the previous year's
anticipated collections certified as provided in Subsection (b);
(4) the amount of additional sales and use tax revenue
anticipated in calculations under Section 26.041;
(5) a statement that the adoption of a tax rate equal
to the effective tax rate would result in an increase or decrease,
as applicable, in the amount of taxes imposed by the unit as
compared to last year's levy, and the amount of the increase or
decrease;
(6) in the year that a taxing unit calculates an
adjustment under Subsection (i) or (j), a schedule that includes
the following elements:
(A) the name of the unit discontinuing the
department, function, or activity;
(B) the amount of property tax revenue spent by
the unit listed under Paragraph (A) to operate the discontinued
department, function, or activity in the 12 months preceding the
month in which the calculations required by this chapter are made;
and
(C) the name of the unit that operates a distinct
department, function, or activity in all or a majority of the
territory of a taxing unit that has discontinued operating the
distinct department, function, or activity; and
(7) in the year following the year in which a taxing
unit raised its rollback rate as required by Subsection (j), a
schedule that includes the following elements:
(A) the amount of property tax revenue spent by
the unit to operate the department, function, or activity for which
the taxing unit raised the rollback rate as required by Subsection
(j) for the 12 months preceding the month in which the calculations
required by this chapter are made; and
(B) the amount published by the unit in the
preceding tax year under Subdivision (6)(B).
SECTION 2.68. Section 26.16(e), Tax Code, is amended to
read as follows:
(e) The State Property Tax Board [comptroller] by rule shall
prescribe the manner in which the information described by this
section is required to be presented.
SECTION 2.69. Section 31.075(a), Tax Code, is amended to
read as follows:
(a) At the request of a property owner or a property owner's
agent, the collector for a taxing unit shall issue a receipt showing
the taxable value and the amount of tax imposed by the unit on the
property in one or more tax years for which the information is
requested, the tax rate for each of those tax years, and the amount
of tax paid in each of those years. The receipt must describe the
property in the manner prescribed by the State Property Tax Board
[comptroller]. If the amount of the tax for the current year has
not been calculated when the request is made, the collector shall on
request issue to the property owner or agent a statement indicating
that taxes for the current year have not been calculated.
SECTION 2.70. Section 31.11(c), Tax Code, is amended to
read as follows:
(c) Except as provided by Subsection (c-1), an application
for a refund must be made within three years after the date of the
payment or the taxpayer waives the right to the refund. A taxpayer
may apply for a refund by filing:
(1) an application on a form prescribed by the State
Property Tax Board [comptroller] by rule; or
(2) a written request that includes information
sufficient to enable the collector and the auditor for the taxing
unit and, if applicable, the governing body of the taxing unit to
determine whether the taxpayer is entitled to the refund.
SECTION 2.71. Section 33.43(e), Tax Code, is amended to
read as follows:
(e) The State Property Tax Board [comptroller] shall
prepare forms for petitions initiating suits to collect delinquent
taxes. An attorney representing a taxing unit may use the forms or
develop his or her own form.
SECTION 2.72. Section 41.44(d), Tax Code, is amended to
read as follows:
(d) A notice of protest is sufficient if it identifies the
protesting property owner, including a person claiming an ownership
interest in the property even if that person is not listed on the
appraisal records as an owner of the property, identifies the
property that is the subject of the protest, and indicates apparent
dissatisfaction with some determination of the appraisal office.
The notice need not be on an official form, but the State Property
Tax Board [comptroller] shall prescribe a form that provides for
more detail about the nature of the protest. The form must permit a
property owner to include each property in the appraisal district
that is the subject of a protest. The State Property Tax Board
[comptroller], each appraisal office, and each appraisal review
board shall make the forms readily available and deliver one to a
property owner on request.
SECTION 2.73. Sections 41.45(k) and (l), Tax Code, are
amended to read as follows:
(k) The State Property Tax Board [comptroller] shall
prescribe a standard form for an affidavit offered under Subsection
(b). Each appraisal district shall make copies of the affidavit
form available to property owners without charge.
(l) A property owner is not required to use the affidavit
form prescribed by the State Property Tax Board [comptroller] when
offering an affidavit under Subsection (b).
SECTION 2.74. Section 41.461(a), Tax Code, is amended to
read as follows:
(a) At least 14 days before a hearing on a protest, the chief
appraiser shall:
(1) deliver a copy of the pamphlet prepared by the
State Property Tax Board [comptroller] under Section 5.06 [5.06(a)]
to the property owner initiating the protest if the owner is
representing himself or herself, or to an agent representing the
owner if requested by the agent;
(2) inform the property owner that the owner or the
agent of the owner may inspect and may obtain a copy of the data,
schedules, formulas, and all other information the chief appraiser
plans to introduce at the hearing to establish any matter at issue;
and
(3) deliver a copy of the hearing procedures
established by the appraisal review board under Section 41.66 to
the property owner.
SECTION 2.75. Section 41.65, Tax Code, is amended to read as
follows:
Sec. 41.65. REQUEST FOR STATE ASSISTANCE. The appraisal
review board may request the State Property Tax Board [comptroller]
to assist in determining the accuracy of appraisals by the
appraisal office or to provide other professional assistance. The
appraisal office shall reimburse the costs of providing assistance
if the board [comptroller] requests reimbursement.
SECTION 2.76. Section 41.66(a), Tax Code, is amended to
read as follows:
(a) The appraisal review board shall establish by rule the
procedures for hearings it conducts as provided by Subchapters A
and C of this chapter. On request made by a property owner in the
owner's notice of protest or in a separate writing delivered to the
appraisal review board on or before the date the notice of protest
is filed, the property owner is entitled to a copy of the hearing
procedures. The copy of the hearing procedures shall be delivered
to the property owner not later than the 10th day before the date
the hearing on the protest begins and may be delivered with the
notice of the protest hearing required under Section 41.46(a). The
notice of protest form prescribed by the State Property Tax Board
[comptroller] under Section 41.44(d) or any other notice of protest
form made available to a property owner by the appraisal review
board or the appraisal office shall provide the property owner an
opportunity to make or decline to make a request under this
subsection. The appraisal review board shall post a copy of the
hearing procedures in a prominent place in the room in which the
hearing is held.
SECTION 2.77. Section 41.68, Tax Code, is amended to read as
follows:
Sec. 41.68. RECORD OF PROCEEDING. The appraisal review
board shall keep a record of its proceedings in the form and manner
prescribed by the State Property Tax Board [comptroller].
SECTION 2.78. Section 41.70(a), Tax Code, is amended to
read as follows:
(a) On or after May 1 but not later than May 15, the chief
appraiser shall publish notice of the manner in which a protest
under this chapter may be brought by a property owner. The notice
must describe how to initiate a protest and must describe the
deadlines for filing a protest. The notice must also describe the
manner in which an order of the appraisal review board may be
appealed. The State Property Tax Board [comptroller] by rule shall
adopt minimum standards for the form and content of the notice
required by this section.
SECTION 2.79. Section 41A.03(a), Tax Code, is amended to
read as follows:
(a) To appeal an appraisal review board order under this
chapter, a property owner must file with the appraisal district not
later than the 45th day after the date the property owner receives
notice of the order:
(1) a completed request for binding arbitration under
this chapter in the form prescribed by Section 41A.04; and
(2) an arbitration deposit made payable to the State
Property Tax Board [comptroller] in the amount of $500.
SECTION 2.80. Section 41A.04, Tax Code, is amended to read
as follows:
Sec. 41A.04. CONTENTS OF REQUEST FORM. The State Property
Tax Board [comptroller] by rule shall prescribe the form of a
request for binding arbitration under this chapter. The form must
require the property owner to provide only:
(1) a brief statement that explains the basis for the
property owner's appeal of the appraisal review board order;
(2) 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; and
(3) any other information reasonably necessary for the
appraisal district to request appointment of an arbitrator.
SECTION 2.81. Section 41A.05, Tax Code, is amended to read
as follows:
Sec. 41A.05. PROCESSING OF REGISTRATION REQUEST. (a) Not
later than the 10th day after the date an appraisal district
receives from a property owner a completed request for binding
arbitration under this chapter and an arbitration deposit as
required by Section 41A.03, the appraisal district shall:
(1) certify the request;
(2) submit the request and deposit to the State
Property Tax Board [comptroller]; and
(3) request the State Property Tax Board [comptroller]
to appoint a qualified arbitrator to conduct the arbitration.
(b) The State Property Tax Board [comptroller] may retain an
amount equal to 10 percent of the deposit to cover the board's
[comptroller's] administrative costs.
SECTION 2.82. Sections 41A.06(a) and (c), Tax Code, are
amended to read as follows:
(a) The State Property Tax Board [comptroller] shall
maintain a registry listing the qualified persons who have agreed
to serve as arbitrators under this chapter.
(c) An arbitrator must complete a training program on
property tax law before conducting a hearing on an arbitration
relating to the appeal of an appraisal review board order
determining a protest filed under Section 41.41(a)(2). The
training program must:
(1) emphasize the requirements regarding the equal and
uniform appraisal of property;
(2) be at least four hours in length; and
(3) be approved by the State Property Tax Board
[comptroller].
SECTION 2.83. Section 41A.061, Tax Code, is amended to read
as follows:
Sec. 41A.061. CONTINUED QUALIFICATION OF ARBITRATOR;
RENEWAL OF AGREEMENT. (a) The State Property Tax Board
[comptroller] shall include a qualified arbitrator in the registry
until the second anniversary of the date the person was added to the
registry. To continue to be included in the registry after the
second anniversary of the date the person was added to the registry,
the person must renew the person's agreement with the board
[comptroller] to serve as an arbitrator on or as near as possible to
the date on which the person's license or certification issued
under Chapter 901, 1101, or 1103, Occupations Code, is renewed.
(b) To renew the person's agreement to serve as an
arbitrator, the person must:
(1) file a renewal application with the State Property
Tax Board [comptroller] at the time and in the manner prescribed by
the board [comptroller];
(2) continue to meet the requirements provided by
Section 41A.06(b); and
(3) during the preceding two years have completed at
least eight hours of continuing education in arbitration and
alternative dispute resolution procedures offered by a university,
college, real estate trade association, or legal association.
(c) The State Property Tax Board [comptroller] shall remove
a person from the registry if the person fails or declines to renew
the person's agreement to serve as an arbitrator in the manner
required by this section.
SECTION 2.84. Section 41A.07, Tax Code, is amended to read
as follows:
Sec. 41A.07. APPOINTMENT OF ARBITRATOR. (a) On receipt of
the request and deposit under Section 41A.05, the State Property
Tax Board [comptroller] shall send the property owner and the
appraisal district a copy of the board's [comptroller's] registry
of qualified arbitrators and request that the parties select an
arbitrator from the registry. The board [comptroller] may send a
copy of the registry to the parties by regular mail in paper form or
may send the parties written notice of the Internet address of a
website at which the registry is maintained and may be accessed.
The parties shall attempt to select an arbitrator from the
registry.
(b) Not later than the 20th day after the date the parties
receive the copy of the registry or notice of the Internet address
of the registry website, the appraisal district shall notify the
State Property Tax Board [comptroller] that:
(1) the parties have selected an arbitrator and
request that the board [comptroller] appoint the selected
arbitrator; or
(2) the parties were unable to select an arbitrator
and request the board [comptroller] to appoint an arbitrator.
(c) On receipt of notice from the appraisal district under
Subsection (b), the State Property Tax Board [comptroller] shall:
(1) appoint:
(A) the arbitrator selected under Subsection
(b)(1), if applicable; or
(B) any arbitrator included in the board's
[comptroller's] registry, if Subsection (b)(2) applies; and
(2) send notice to the arbitrator appointed,
requesting that the arbitrator conduct the arbitration.
(d) If the arbitrator appointed is unable or unwilling to
conduct the arbitration for any reason, the arbitrator shall
promptly notify the State Property Tax Board [comptroller] that the
arbitrator does not accept the appointment and state the reason.
The board [comptroller] shall appoint a substitute arbitrator
promptly after receipt of the notice.
SECTION 2.85. Sections 41A.09(a), (c), (d), and (e), Tax
Code, are amended to read as follows:
(a) Not later than the 20th day after the date the hearing
under Section 41A.08 is concluded, the arbitrator shall make an
arbitration award and deliver a copy of the award to the property
owner, appraisal district, and State Property Tax Board
[comptroller].
(c) If the arbitrator 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 binding arbitration submitted under Section
41A.03 than the value determined by the appraisal review board:
(1) the State Property Tax Board [comptroller], on
receipt of a copy of the award, shall refund the property owner's
arbitration deposit, less the amount retained by the board
[comptroller] under Section 41A.05(b);
(2) the appraisal district, on receipt of a copy of the
award, shall pay the arbitrator's fee; 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 arbitrator's determination.
(d) If the arbitrator 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 request for binding arbitration submitted under Section
41A.03 than the value determined by the appraisal review board:
(1) the State Property Tax Board [comptroller], on
receipt of a copy of the award, shall:
(A) pay the arbitrator's fee out of the owner's
arbitration deposit; and
(B) refund to the owner the owner's arbitration
deposit, less the arbitrator's fee and the amount retained by the
board [comptroller] under Section 41A.05(b); and
(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 arbitrator's determination if the
value as determined by the arbitrator is less than the value as
determined by the appraisal review board.
(e) The State Property Tax Board [comptroller] by rule may
prescribe a standard form for an award and may require arbitrators
to use the award form when making awards under this chapter.
SECTION 2.86. Section 41A.10(b), Tax Code, is amended to
read as follows:
(b) A property owner may not file an appeal under this
chapter if the taxes on the property subject to the appeal are
delinquent. An arbitrator 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 State Property Tax Board [comptroller] shall refund
the property owner's arbitration deposit, less the amount retained
by the board [comptroller] under Section 41A.05(b).
SECTION 2.87. 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
study conducted under Section 5.23 [403.302, Government Code].
SECTION 2.88. Section 41A.13, Tax Code, is amended to read
as follows:
Sec. 41A.13. RULES. The State Property Tax Board
[comptroller] may adopt rules necessary to implement and administer
this chapter.
SECTION 2.89. Section 42.01(a), Tax Code, is amended to
read as follows:
(a) A property owner is entitled to appeal:
(1) an order of the appraisal review board
determining:
(A) a protest by the property owner as provided
by Subchapter C of Chapter 41;
(B) a determination of an appraisal review board
on a motion filed under Section 25.25;
(C) a determination of an appraisal review board
that the property owner has forfeited the right to a final
determination of a motion filed under Section 25.25 or of a protest
under Section 41.411 for failing to comply with the prepayment
requirements of Section 25.26 or 41.4115, as applicable; or
(D) a determination of an appraisal review board
of eligibility for a refund requested under Section 23.1243; or
(2) an order of the State Property Tax Board
[comptroller] issued as provided by Subchapter B, Chapter 24,
apportioning among the counties the appraised value of railroad
rolling stock owned by the property owner.
SECTION 2.90. Section 42.03, Tax Code, is amended to read as
follows:
Sec. 42.03. RIGHT OF APPEAL BY COUNTY. A county may appeal
the order of the State Property Tax Board [comptroller] issued as
provided by Subchapter B, Chapter 24 of this code apportioning
among the counties the appraised value of railroad rolling stock.
SECTION 2.91. Section 42.05, Tax Code, is amended to read as
follows:
Sec. 42.05. STATE PROPERTY TAX BOARD [COMPTROLLER] AS
PARTY. The State Property Tax Board [comptroller] is an opposing
party in an appeal by:
(1) a property owner of an order of the board
[comptroller] determining a protest of the appraisal, interstate
allocation, or intrastate apportionment of transportation business
intangibles; or
(2) a county or a property owner of an order of the
board [comptroller] apportioning among the counties the appraised
value of railroad rolling stock.
SECTION 2.92. Sections 42.06(a), (b), and (c), Tax Code,
are amended to read as follows:
(a) To exercise the party's right to appeal an order of an
appraisal review board, a party other than a property owner must
file written notice of appeal within 15 days after the date the
party receives the notice required by Section 41.47 or, in the case
of a taxing unit, by Section 41.07 that the order appealed has been
issued. To exercise the right to appeal an order of the State
Property Tax Board [comptroller], a party other than a property
owner must file written notice of appeal within 15 days after the
date the party receives the board's [comptroller's] order. A
property owner is not required to file a notice of appeal under this
section.
(b) A party required to file a notice of appeal under this
section other than a chief appraiser who appeals an order of an
appraisal review board shall file the notice with the chief
appraiser of the appraisal district for which the appraisal review
board is established. A chief appraiser who appeals an order of an
appraisal review board shall file the notice with the appraisal
review board. A party who appeals an order of the State Property Tax
Board [comptroller] shall file the notice with that board [the
comptroller].
(c) If the chief appraiser, a taxing unit, or a county
appeals, the chief appraiser, if the appeal is of an order of the
appraisal review board, or the State Property Tax Board
[comptroller], if the appeal is of an order of the State Property
Tax Board [comptroller], shall deliver a copy of the notice to the
property owner whose property is involved in the appeal within 10
days after the date the notice is filed.
SECTION 2.93. Section 42.21(b), Tax Code, is amended to
read as follows:
(b) A petition for review brought under Section 42.02 must
be brought against the owner of the property involved in the appeal.
A petition for review brought under Section 42.031 must be brought
against the appraisal district and against the owner of the
property involved in the appeal. A petition for review brought
under Section 42.01(a)(2) or 42.03 must be brought against the
State Property Tax Board [comptroller]. Any other petition for
review under this chapter must be brought against the appraisal
district. A petition for review may not be brought against the
appraisal review board. An appraisal district may hire an attorney
that represents the district to represent the appraisal review
board established for the district to file an answer and obtain a
dismissal of a suit filed against the appraisal review board in
violation of this subsection.
SECTION 2.94. Section 42.22, Tax Code, as amended by
Chapters 667 (S.B. 548) and 1033 (H.B. 301), Acts of the 73rd
Legislature, Regular Session, 1993, is reenacted and amended to
read as follows:
Sec. 42.22. VENUE. Venue is in the county in which the
appraisal review board that issued the order appealed is located,
except as provided by Section 42.221. Venue is in Travis County if
the order appealed was issued by the State Property Tax Board
[comptroller].
SECTION 2.95. Section 42.23(b), Tax Code, is amended to
read as follows:
(b) The court may not admit in evidence the fact of prior
action by the appraisal review board or State Property Tax Board
[comptroller], except to the extent necessary to establish its
jurisdiction.
SECTION 2.96. Section 42.26(c), Tax Code, is amended to
read as follows:
(c) For purposes of establishing the median level of
appraisal under Subsection (a)(1), the median level of appraisal in
the appraisal district as determined by the State Property Tax
Board [comptroller] under Section 5.10 is admissible as evidence of
the median level of appraisal of a reasonable and representative
sample of properties in the appraisal district for the year of the
board's [comptroller's] determination, subject to the Texas Rules
of Evidence and the Texas Rules of Civil Procedure.
SECTION 2.97. Section 42.28, Tax Code, is amended to read as
follows:
Sec. 42.28. APPEAL OF DISTRICT COURT JUDGMENT. A party may
appeal the final judgment of the district court as provided by law
for appeal of civil suits generally, except that an appeal bond is
not required of the chief appraiser, the county, the State Property
Tax Board [comptroller], or the commissioners court.
SECTION 2.98. Sections 42.43(g) and (i), Tax Code, are
amended to read as follows:
(g) If a form prescribed by the State Property Tax Board
[comptroller] under Subsection (i) is filed with a taxing unit
before the 21st day after the final determination of an appeal that
requires a refund be made, the taxing unit shall send the refund to
the person and address designated on the form.
(i) The State Property Tax Board [comptroller] shall
prescribe the form necessary to allow a property owner to designate
the person to whom a refund must be sent. The board [comptroller]
shall include on the form a space for the property owner to
designate to whom and where the refund must be sent and provide
options to mail the refund to:
(1) the property owner;
(2) the business office of the property owner's
attorney of record in the appeal; or
(3) any other individual and address designated by the
property owner.
SECTION 2.99. Section 43.01, Tax Code, is amended to read as
follows:
Sec. 43.01. AUTHORITY TO BRING SUIT. A taxing unit may sue
the appraisal district that appraises property for the unit to
compel the appraisal district to comply with the provisions of this
title, rules of the State Property Tax Board [comptroller], or
other applicable law.
SECTION 2.100. Section 111.00455(b), Tax Code, is amended
to read as follows:
(b) The following are not contested cases under Subsection
(a) and Section 2003.101, Government Code:
(1) a show cause hearing or any hearing not related to
the collection, receipt, administration, or enforcement of the
amount of a tax or fee imposed, or the penalty or interest
associated with that amount, except for a hearing under Section
151.157(f), 151.1575(c), 151.712(g), 154.1142, or 155.0592;
(2) a property value study hearing under Subchapter B
[M], Chapter 5 [403, Government Code];
(3) a hearing in which the issue relates to:
(A) Chapters 72-75, Property Code;
(B) forfeiture of a right to do business;
(C) a certificate of authority;
(D) articles of incorporation;
(E) a penalty imposed under Section 151.703(d);
(F) the refusal or failure to settle under
Section 111.101; or
(G) a request for or revocation of an exemption
from taxation; and
(4) any other hearing not related to the collection,
receipt, administration, or enforcement of the amount of a tax or
fee imposed, or the penalty or interest associated with that
amount.
SECTION 2.101. Section 111.0081(c), Tax Code, is amended to
read as follows:
(c) The amount of a determination made under this code is
due and payable 20 days after a [comptroller's] decision of the
comptroller or the State Property Tax Board, as applicable, in a
redetermination hearing becomes final. If the amount of the
determination is not paid within 20 days after the day the decision
became final, a penalty of 10 percent of the amount of the
determination, exclusive of penalties and interest, shall be added.
SECTION 2.102. Section 111.009, Tax Code, is amended by
amending Subsections (a) and (d) and adding Subsection (a-1) to
read as follows:
(a) Except as provided by Subsection (a-1), a [A] person
having a direct interest in a determination may petition the
comptroller for a redetermination.
(a-1) A person having a direct interest in a determination
under Section 313.0276 may petition the State Property Tax Board
for a redetermination.
(d) An order or decision of the comptroller or State
Property Tax Board, as applicable, on a petition for
redetermination becomes final 20 days after service on the
petitioner of the notice of the order or decision.
SECTION 2.103. Section 311.011(h), Tax Code, is amended to
read as follows:
(h) Unless specifically provided otherwise in the plan, all
amounts contained in the project plan or reinvestment zone
financing plan, including amounts of expenditures relating to
project costs and amounts relating to participation by taxing
units, are considered estimates and do not act as a limitation on
the described items, but the amounts contained in the project plan
or reinvestment zone financing plan may not vary materially from
the estimates. This subsection may not be construed to increase the
amount of any reduction under Section 5.23(d)(4) [403.302(d)(4),
Government Code,] in the total taxable value of the property in a
school district that participates in the zone as computed under
Section 5.23(d) [403.302(d) of that code].
SECTION 2.104. Section 311.013(n), Tax Code, is amended to
read as follows:
(n) This subsection applies only to a school district whose
taxable value computed under Section 5.23(d) [403.302(d),
Government Code,] is reduced in accordance with Subdivision (4) of
that subsection. In addition to the amount otherwise required to be
paid into the tax increment fund, the district shall pay into the
fund an amount equal to the amount by which the amount of taxes the
district would have been required to pay into the fund in the
current year if the district levied taxes at the rate the district
levied in 2005 exceeds the amount the district is otherwise
required to pay into the fund in the year of the reduction. This
additional amount may not exceed the amount the school district
receives in state aid for the current tax year under Section
42.2514, Education Code. The school district shall pay the
additional amount after the district receives the state aid to
which the district is entitled for the current tax year under
Section 42.2514, Education Code.
SECTION 2.105. Section 311.016(b), Tax Code, is amended to
read as follows:
(b) The municipality or county shall send a copy of a report
made under this section to the State Property Tax Board
[comptroller].
SECTION 2.106. Section 311.0163(a), Tax Code, is amended to
read as follows:
(a) Not later than December 31 of each even-numbered year,
the State Property Tax Board [comptroller] shall submit a report to
the legislature and to the governor on reinvestment zones
designated under this chapter and on project plans and reinvestment
zone financing plans adopted under this chapter.
SECTION 2.107. Section 311.019, Tax Code, is amended to
read as follows:
Sec. 311.019. CENTRAL REGISTRY. (a) The State Property Tax
Board [comptroller] shall maintain a central registry of:
(1) reinvestment zones designated under this chapter;
(2) project plans and reinvestment zone financing
plans adopted under this chapter; and
(3) annual reports submitted under Section 311.016.
(b) A municipality or county that designates a reinvestment
zone or approves a project plan or reinvestment zone financing plan
under this chapter shall deliver to the State Property Tax Board
[comptroller] before April 1 of the year following the year in which
the zone is designated or the plan is approved a report containing:
(1) a general description of each zone, including:
(A) the size of the zone;
(B) the types of property located in the zone;
(C) the duration of the zone; and
(D) the guidelines and criteria established for
the zone under Section 311.005;
(2) a copy of each project plan or reinvestment zone
financing plan adopted; and
(3) any other information required by the board
[comptroller] to administer this section [and Subchapter F, Chapter
111].
(c) A municipality or county that amends or modifies a
project plan or reinvestment zone financing plan adopted under this
chapter shall deliver a copy of the amendment or modification to the
State Property Tax Board [comptroller] before April 1 of the year
following the year in which the plan was amended or modified.
SECTION 2.108. Section 311.020, Tax Code, is amended to
read as follows:
Sec. 311.020. STATE ASSISTANCE. (a) On request of the
governing body of a municipality or county or of the presiding
officer of the governing body, the State Property Tax Board
[comptroller] may provide assistance to a municipality or county
relating to the administration of this chapter.
(b) The economic development and tourism division of the
governor's office [Texas Department of Economic Development] and
the State Property Tax Board [comptroller] may provide technical
assistance to a municipality or county regarding:
(1) the designation of reinvestment zones under this
chapter; and
(2) the adoption and execution of project plans or
reinvestment zone financing plans under this chapter.
SECTION 2.109. Section 312.005, Tax Code, is amended to
read as follows:
Sec. 312.005. STATE ADMINISTRATION. (a) The State
Property Tax Board [comptroller] shall maintain a central registry
of reinvestment zones designated under this chapter and of ad
valorem tax abatement agreements executed under this chapter. The
chief appraiser of each appraisal district that appraises property
for a taxing unit that has designated a reinvestment zone or
executed a tax abatement agreement under this chapter shall deliver
to the board [comptroller] before July 1 of the year following the
year in which the zone is designated or the agreement is executed a
report providing the following information:
(1) for a reinvestment zone, a general description of
the zone, including its size, the types of property located in it,
its duration, and the guidelines and criteria established for the
reinvestment zone under Section 312.002, including subsequent
amendments and modifications of the guidelines or criteria;
(2) a copy of each tax abatement agreement to which a
taxing unit that participates in the appraisal district is a party;
and
(3) any other information required by the board
[comptroller] to administer this section [and Subchapter F, Chapter
111].
(b) The State Property Tax Board [comptroller] may provide
assistance to a taxing unit on request of its governing body or the
presiding officer of its governing body relating to the
administration of this chapter. The economic development and
tourism division of the governor's office [Texas Department of
Commerce] and the State Property Tax Board [comptroller] may
provide technical assistance to a local governing body regarding
the designation of reinvestment zones, the adoption of tax
abatement guidelines, and the execution of tax abatement
agreements.
(c) Not later than December 31 of each even-numbered year,
the State Property Tax Board [comptroller] shall submit a report to
the legislature and to the governor on reinvestment zones
designated under this chapter and on tax abatement agreements
adopted under this chapter, including a summary of the information
reported under this section.
SECTION 2.110. Section 313.004, Tax Code, is amended to
read as follows:
Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the
legislature in enacting this chapter that:
(1) economic development decisions involving school
district taxes should occur at the local level with oversight by the
state and should be consistent with identifiable statewide economic
development goals;
(2) this chapter should not be construed or
interpreted to allow:
(A) property owners to pool investments to create
sufficiently large investments to qualify for an ad valorem tax
benefit provided by this chapter;
(B) an applicant for an ad valorem tax benefit
provided by this chapter to assert that jobs will be eliminated if
certain investments are not made if the assertion is not true; or
(C) an entity not subject to the tax imposed by
Chapter 171 to receive an ad valorem tax benefit provided by this
chapter;
(3) in implementing this chapter, school districts
should:
(A) strictly interpret the criteria and
selection guidelines provided by this chapter; and
(B) approve only those applications for an ad
valorem tax benefit provided by this chapter that:
(i) enhance the local community;
(ii) improve the local public education
system;
(iii) create high-paying jobs; and
(iv) advance the economic development goals
of this state; and
(4) in implementing this chapter, the board
[comptroller] should:
(A) strictly interpret the criteria and
selection guidelines provided by this chapter; and
(B) issue certificates for limitations on
appraised value only for those applications for an ad valorem tax
benefit provided by this chapter that:
(i) create high-paying jobs;
(ii) provide a net benefit to the state over
the long term; and
(iii) advance the economic development
goals of this state.
SECTION 2.111. Section 313.005, Tax Code, is amended to
read as follows:
Sec. 313.005. DEFINITIONS. (a) Unless this chapter
defines a word or phrase used in this chapter, Section 1.04 or any
other section of Title 1 or this title that defines the word or
phrase or ascribes a meaning to the word or phrase applies to the
word or phrase used in this chapter.
(b) In this chapter, "board" means the State Property Tax
Board.
SECTION 2.112. Section 313.022(b), Tax Code, is amended to
read as follows:
(b) For purposes of determining the required minimum amount
of a qualified investment under Section 313.021(2)(A)(iv)(a), and
the minimum amount of a limitation on appraised value under Section
313.027(b), school districts to which this subchapter applies are
categorized according to the taxable value of property in the
district for the preceding tax year determined under Subchapter B
[M], Chapter 5 [403, Government Code], as follows:
CATEGORY TAXABLE VALUE OF PROPERTY
I $10 billion or more I $10 billion or more
I $10 billion or more
II $1 billion or more but less than $10 billion II $1 billion or more but less than $10 billion
II $1 billion or more but less than $10 billion
III $500 million or more but less than $1 billion III $500 million or more but less than $1 billion
III $500 million or more but less than $1 billion
IV $100 million or more but less than $500 million IV $100 million or more but less than $500 million
IV $100 million or more but less than $500 million
V less than $100 million V less than $100 million
V less than $100 million
SECTION 2.113. Sections 313.025(a), (a-1), (b), (b-1), (c),
(d), (d-1), (e), (h), and (i), Tax Code, are amended to read as
follows:
(a) The owner or lessee of, or the holder of another
possessory interest in, any qualified property described by Section
313.021(2)(A), (B), or (C) may apply to the governing body of the
school district in which the property is located for a limitation on
the appraised value for school district maintenance and operations
ad valorem tax purposes of the person's qualified property. An
application must be made on the form prescribed by the board
[comptroller] and include the information required by the board
[comptroller], and it must be accompanied by:
(1) the application fee established by the governing
body of the school district;
(2) information sufficient to show that the real and
personal property identified in the application as qualified
property meets the applicable criteria established by Section
313.021(2); and
(3) any information required by the board
[comptroller] for the purposes of Section 313.026.
(a-1) Within seven days of the receipt of each document, the
school district shall submit to the board [comptroller] a copy of
the application and the proposed agreement between the applicant
and the school district. If the applicant submits an economic
analysis of the proposed project to the school district, the
district shall submit a copy of the analysis to the board
[comptroller]. In addition, the school district shall submit to
the board [comptroller] any subsequent revision of or amendment to
any of those documents within seven days of its receipt. The board
[comptroller] shall publish each document received from the school
district under this subsection on the board's [comptroller's]
Internet website. If the school district maintains a generally
accessible Internet website, the district shall provide on its
website a link to the location of those documents posted on the
board's [comptroller's] website in compliance with this subsection.
This subsection does not require the board [comptroller] to post
information that is confidential under Section 313.028.
(b) The governing body of a school district is not required
to consider an application for a limitation on appraised value. If
the governing body of the school district elects to consider an
application, the governing body shall deliver a copy of the
application to the board [comptroller] and request that the board
[comptroller] conduct an economic impact evaluation of the
investment proposed by the application. The board [comptroller]
shall conduct or contract with a third person to conduct the
economic impact evaluation, which shall be completed and provided
to the governing body of the school district, along with the board's
[comptroller's] certificate or written explanation under
Subsection (d), as soon as practicable but not later than the 90th
day after the date the board [comptroller] receives the
application. The governing body shall provide to the board
[comptroller] or to a third person contracted by the board
[comptroller] to conduct the economic impact evaluation any
requested information. A methodology to allow comparisons of
economic impact for different schedules of the addition of
qualified investment or qualified property may be developed as part
of the economic impact evaluation. The governing body shall
provide a copy of the economic impact evaluation to the applicant on
request. The board [comptroller] may charge the applicant a fee
sufficient to cover the costs of providing the economic impact
evaluation. The governing body of a school district shall approve
or disapprove an application not later than the 150th day after the
date the application is filed, unless the economic impact
evaluation has not been received or an extension is agreed to by the
governing body and the applicant.
(b-1) The board [comptroller] shall promptly deliver a copy
of the application to the Texas Education Agency. The Texas
Education Agency shall determine the effect that the applicant's
proposal will have on the number or size of the school district's
instructional facilities and submit a written report containing the
agency's determination to the school district. The governing body
of the school district shall provide any requested information to
the Texas Education Agency. Not later than the 45th day after the
date the Texas Education Agency receives the application, the Texas
Education Agency shall make the required determination and submit
the agency's written report to the governing body of the school
district.
(c) In determining whether to approve an application, the
governing body of the school district is entitled to request and
receive assistance from:
(1) the board [comptroller];
(2) the Texas Economic Development and Tourism Office;
(3) the Texas Workforce Investment Council; and
(4) the Texas Workforce Commission.
(d) Not later than the 90th day after the date the board
[comptroller] receives the copy of the application, the board
[comptroller] shall issue a certificate for a limitation on
appraised value of the property and provide the certificate to the
governing body of the school district or provide the governing body
a written explanation of the board's [comptroller's] decision not
to issue a certificate.
(d-1) The governing body of a school district may not
approve an application unless the board [comptroller] submits to
the governing body a certificate for a limitation on appraised
value of the property.
(e) Before approving or disapproving an application under
this subchapter that the governing body of the school district
elects to consider, the governing body must make a written finding
as to any criteria considered by the board [comptroller] in
conducting the economic impact evaluation under Section 313.026.
The governing body shall deliver a copy of those findings to the
applicant.
(h) After receiving a copy of the application, the board
[comptroller] shall determine whether the property meets the
requirements of Section 313.024 for eligibility for a limitation on
appraised value under this subchapter. The board [comptroller]
shall notify the governing body of the school district of the
board's [comptroller's] determination and provide the applicant an
opportunity for a hearing before the determination becomes final.
A hearing under this subsection is a contested case hearing and
shall be conducted by the State Office of Administrative Hearings
in the manner provided by Section 2003.101, Government Code. The
applicant has the burden of proof on each issue in the hearing. The
applicant may seek judicial review of the board's [comptroller's]
determination in a Travis County district court under the
substantial evidence rule as provided by Subchapter G, Chapter
2001, Government Code.
(i) If the board's [comptroller's] determination under
Subsection (h) that the property does not meet the requirements of
Section 313.024 for eligibility for a limitation on appraised value
under this subchapter becomes final, the board [comptroller] is not
required to provide an economic impact evaluation of the
application or to submit a certificate for a limitation on
appraised value of the property or a written explanation of the
decision not to issue a certificate, and the governing body of the
school district may not grant the application.
SECTION 2.114. Section 313.026, Tax Code, is amended to
read as follows:
Sec. 313.026. ECONOMIC IMPACT EVALUATION. (a) The
economic impact evaluation of the application must include any
information the board [comptroller] determines is necessary or
helpful to:
(1) the governing body of the school district in
determining whether to approve the application under Section
313.025; or
(2) the board [comptroller] in determining whether to
issue a certificate for a limitation on appraised value of the
property under Section 313.025.
(b) Except as provided by Subsections (c) and (d), the
board's [comptroller's] determination whether to issue a
certificate for a limitation on appraised value under this chapter
for property described in the application shall be based on the
economic impact evaluation described by Subsection (a) and on any
other information available to the board [comptroller], including
information provided by the governing body of the school district.
(c) The board [comptroller] may not issue a certificate for
a limitation on appraised value under this chapter for property
described in an application unless the board [comptroller]
determines that:
(1) the project proposed by the applicant is
reasonably likely to generate, before the 25th anniversary of the
beginning of the limitation period, tax revenue, including state
tax revenue, school district maintenance and operations ad valorem
tax revenue attributable to the project, and any other tax revenue
attributable to the effect of the project on the economy of the
state, in an amount sufficient to offset the school district
maintenance and operations ad valorem tax revenue lost as a result
of the agreement; and
(2) the limitation on appraised value is a determining
factor in the applicant's decision to invest capital and construct
the project in this state.
(d) The board [comptroller] shall state in writing the basis
for the determinations made under Subsections (c)(1) and (2).
(e) The applicant may submit information to the board
[comptroller] that would provide a basis for an affirmative
determination under Subsection (c)(2).
(f) Notwithstanding Subsections (c) and (d), if the board
[comptroller] makes a qualitative determination that other
considerations associated with the project result in a net positive
benefit to the state, the board [comptroller] may issue the
certificate.
SECTION 2.115. Section 313.0265, Tax Code, is amended to
read as follows:
Sec. 313.0265. DISCLOSURE OF APPRAISED VALUE LIMITATION
INFORMATION. (a) The board [comptroller] shall post on the board's
[comptroller's] Internet website each document or item of
information the board [comptroller] designates as substantive
before the 15th day after the date the document or item of
information was received or created. Each document or item of
information must continue to be posted until the appraised value
limitation expires.
(b) The board [comptroller] shall designate the following
as substantive:
(1) each application requesting a limitation on
appraised value; and
(2) the economic impact evaluation made in connection
with the application.
(c) If a school district maintains a generally accessible
Internet website, the district shall maintain a link on its
Internet website to the area of the board's [comptroller's]
Internet website where information on each of the district's
agreements to limit appraised value is maintained.
SECTION 2.116. Section 313.027(f), Tax Code, is amended to
read as follows:
(f) In addition, the agreement:
(1) must incorporate each relevant provision of this
subchapter and, to the extent necessary, include provisions for the
protection of future school district revenues through the
adjustment of the minimum valuations, the payment of revenue
offsets, and other mechanisms agreed to by the property owner and
the school district;
(2) may provide that the property owner will protect
the school district in the event the district incurs extraordinary
education-related expenses related to the project that are not
directly funded in state aid formulas, including expenses for the
purchase of portable classrooms and the hiring of additional
personnel to accommodate a temporary increase in student enrollment
attributable to the project;
(3) must require the property owner to maintain a
viable presence in the school district for at least five years after
the date the limitation on appraised value of the owner's property
expires;
(4) must provide for the termination of the agreement,
the recapture of ad valorem tax revenue lost as a result of the
agreement if the owner of the property fails to comply with the
terms of the agreement, and payment of a penalty or interest, or
both, on that recaptured ad valorem tax revenue;
(5) may specify any conditions the occurrence of which
will require the district and the property owner to renegotiate all
or any part of the agreement;
(6) must specify the ad valorem tax years covered by
the agreement; and
(7) must be in a form approved by the board
[comptroller].
SECTION 2.117. Section 313.0275(d), Tax Code, is amended to
read as follows:
(d) In the event of a casualty loss that prevents a person
from complying with Subsection (a), the person may request and the
board [comptroller] may grant a waiver of the penalty imposed under
Subsection (b).
SECTION 2.118. Sections 313.0276(a), (b), (c), (d), (g),
(j), (k), (l), and (m), Tax Code, are amended to read as follows:
(a) The board [comptroller] shall conduct an annual review
and issue a determination as to whether a person with whom a school
district has entered into an agreement under this chapter satisfied
in the preceding year the requirements of this chapter regarding
the creation of the required number of qualifying jobs. If the
board [comptroller] makes an adverse determination in the review,
the board [comptroller] shall notify the person of the cause of the
adverse determination and the corrective measures necessary to
remedy the determination.
(b) If a person who receives an adverse determination fails
to remedy the determination following notification of the
determination and the board [comptroller] makes an adverse
determination with respect to the person's compliance in the
following year, the person must submit to the board [comptroller] a
plan for remedying the determination and certify the person's
intent to fully implement the plan not later than December 31 of the
year in which the determination is made.
(c) If a person who receives an adverse determination under
Subsection (b) fails to comply with that subsection following
notification of the determination and receives an adverse
determination in the following year, the board [comptroller] shall
impose a penalty on the person. The penalty is in an amount equal to
the amount computed by:
(1) subtracting from the number of qualifying jobs
required to be created the number of qualifying jobs actually
created; and
(2) multiplying the amount computed under Subdivision
(1) by the average annual wage for all jobs in the county during the
most recent four quarters for which data is available.
(d) Notwithstanding Subsection (c), if a person receives an
adverse determination and the board [comptroller] has previously
imposed a penalty on the person under this section one or more
times, the board [comptroller] shall impose a penalty on the person
in an amount equal to the amount computed by multiplying the amount
computed under Subsection (c)(1) by an amount equal to twice the
amount computed under Subsection (c)(2).
(g) An adverse determination under this section is a
deficiency determination under Section 111.008. The board shall
report a penalty under this section to the comptroller. The [A
penalty imposed under this section is an amount the] comptroller is
required to collect, receive, or administer the amount of the
penalty imposed under this section, [or enforce,] and the
determination is subject to the payment and redetermination
requirements of Sections 111.0081 and 111.009.
(j) If the board [comptroller] imposes a penalty on a person
under this section three times, the board [comptroller] may rescind
the agreement between the person and the school district under this
chapter.
(k) A person may contest a determination by the board
[comptroller] to rescind an agreement between the person and a
school district under this chapter pursuant to Subsection (j) by
filing suit against the board [comptroller] and the attorney
general. The district courts of Travis County have exclusive,
original jurisdiction of a suit brought under this subsection.
This subsection prevails over a provision of Chapter 25, Government
Code, to the extent of any conflict.
(l) If a person files suit under Subsection (k) and the
board's [comptroller's] determination to rescind the agreement is
upheld on appeal, the person shall pay to the board [comptroller]
any tax that would have been due and payable to the school district
during the pendency of the appeal, including statutory interest and
penalties imposed on delinquent taxes under Sections 111.060 and
111.061.
(m) The board [comptroller] shall transfer any [deposit a]
penalty collected under this section, including any interest and
penalty applicable to the penalty, to the comptroller who shall
deposit it to the credit of the foundation school fund.
SECTION 2.119. Section 313.028, Tax Code, is amended to
read as follows:
Sec. 313.028. CERTAIN BUSINESS INFORMATION CONFIDENTIAL.
Information provided to a school district in connection with an
application for a limitation on appraised value under this
subchapter that describes the specific processes or business
activities to be conducted or the specific tangible personal
property to be located on real property covered by the application
shall be segregated in the application from other information in
the application and is confidential and not subject to public
disclosure unless the governing body of the school district
approves the application. Other information in the custody of a
school district or the board [comptroller] in connection with the
application, including information related to the economic impact
of a project or the essential elements of eligibility under this
chapter, such as the nature and amount of the projected investment,
employment, wages, and benefits, may not be considered confidential
business information if the governing body of the school district
agrees to consider the application. Information in the custody of a
school district or the board [comptroller] if the governing body
approves the application is not confidential under this section.
SECTION 2.120. Section 313.031(a), Tax Code, is amended to
read as follows:
(a) The board [comptroller] shall:
(1) adopt rules and forms necessary for the
implementation and administration of this chapter, including rules
for determining whether a property owner's property qualifies as a
qualified investment under Section 313.021(1); and
(2) provide without charge one copy of the rules and
forms to any school district and to any person who states that the
person intends to apply for a limitation on appraised value under
this subchapter.
SECTION 2.121. Sections 313.032(a), (b-1), (c), and (d),
Tax Code, are amended to read as follows:
(a) Before the beginning of each regular session of the
legislature, the board [comptroller] shall submit to the lieutenant
governor, the speaker of the house of representatives, and each
other member of the legislature a report on the agreements entered
into under this chapter that includes:
(1) an assessment of the following with regard to the
agreements entered into under this chapter, considered in the
aggregate:
(A) the total number of jobs created, direct and
otherwise, in this state;
(B) the total effect on personal income, direct
and otherwise, in this state;
(C) the total amount of investment in this state;
(D) the total taxable value of property on the
tax rolls in this state, including property for which the
limitation period has expired;
(E) the total value of property not on the tax
rolls in this state as a result of agreements entered into under
this chapter; and
(F) the total fiscal effect on the state and
local governments; and
(2) an assessment of the progress of each agreement
made under this chapter that states for each agreement:
(A) the number of qualifying jobs each recipient
of a limitation on appraised value committed to create;
(B) the number of qualifying jobs each recipient
created;
(C) the total amount of wages and the median wage
of the new qualifying jobs each recipient created;
(D) the amount of the qualified investment each
recipient committed to spend or allocate for each project;
(E) the amount of the qualified investment each
recipient spent or allocated for each project;
(F) the market value of the qualified property of
each recipient as determined by the applicable chief appraiser,
including property that is no longer eligible for a limitation on
appraised value under the agreement;
(G) the limitation on appraised value for the
qualified property of each recipient;
(H) the dollar amount of the taxes that would
have been imposed on the qualified property if the property had not
received a limitation on appraised value; and
(I) the dollar amount of the taxes imposed on the
qualified property.
(b-1) In preparing the portion of the report described by
Subsection (a)(1), the board [comptroller] may use standard
economic estimation techniques, including economic multipliers.
(c) The portion of the report described by Subsection (a)(2)
must be based on data certified to the board [comptroller] by each
recipient or former recipient of a limitation on appraised value
under this chapter.
(d) The board [comptroller] may require a recipient or
former recipient of a limitation on appraised value under this
chapter to submit, on a form the board [comptroller] provides,
information required to complete the report.
SECTION 2.122. Section 313.033, Tax Code, is amended to
read as follows:
Sec. 313.033. REPORT ON COMPLIANCE WITH JOB-CREATION
REQUIREMENTS. Each recipient of a limitation on appraised value
under this chapter shall submit to the board [comptroller] an
annual report on a form provided by the board [comptroller] that
provides information sufficient to document the number of
qualifying jobs created.
SECTION 2.123. Sections 313.051(a) and (a-3), Tax Code, are
amended to read as follows:
(a) In this section, "strategic investment area" means an
area the board [comptroller] determines under Subsection (a-3) is:
(1) a county within this state with unemployment above
the state average and per capita income below the state average;
(2) an area within this state that is a federally
designated urban enterprise community or an urban enhanced
enterprise community; or
(3) a defense economic readjustment zone designated
under Chapter 2310, Government Code.
(a-3) Not later than September 1 of each year, the board
[comptroller] shall determine areas that qualify as a strategic
investment area using the most recently completed full calendar
year data available on that date and, not later than October 1,
shall publish a list and map of the designated areas. A
determination under this subsection is effective for the following
tax year for purposes of this subchapter.
SECTION 2.124. Section 313.052, Tax Code, is amended to
read as follows:
Sec. 313.052. CATEGORIZATION OF SCHOOL DISTRICTS. For
purposes of determining the required minimum amount of a qualified
investment under Section 313.021(2)(A)(iv)(a) and the minimum
amount of a limitation on appraised value under this subchapter,
school districts to which this subchapter applies are categorized
according to the taxable value of industrial property in the
district for the preceding tax year determined under Subchapter B
[M], Chapter 5 [403, Government Code], as follows:
CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
I $200 million or more I $200 million or more
I $200 million or more
II $90 million or more but less than $200 million II $90 million or more but less than $200 million
II $90 million or more but less than $200 million
III $1 million or more but less than $90 million III $1 million or more but less than $90 million
III $1 million or more but less than $90 million
IV $100,000 or more but less than $1 million IV $100,000 or more but less than $1 million
IV $100,000 or more but less than $1 million
V less than $100,000 V less than $100,000
V less than $100,000
SECTION 2.125. Section 7.062(a), Education Code, is amended
to read as follows:
(a) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
B [M], Chapter 5 [403], Tax [Government] Code, or, if applicable,
Section 42.2521, divided by the district's average daily attendance
as determined under Section 42.005.
SECTION 2.126. Section 13.051(c), Education Code, is
amended to read as follows:
(c) Territory that does not have residents may be detached
from a school district and annexed to another school district if:
(1) the total taxable value of the property in the
territory according to the most recent certified appraisal roll for
each school district is not greater than:
(A) five percent of the district's taxable value
of all property in that district as determined under Subchapter B
[M], Chapter 5 [403], Tax [Government] Code; and
(B) $5,000 property value per student in average
daily attendance as determined under Section 42.005; and
(2) the school district from which the property will
be detached does not own any real property located in the territory.
SECTION 2.127. Section 13.231(b), Education Code, is
amended to read as follows:
(b) In this section, "taxable value" has the meaning
assigned by Section 5.23 [403.302], Tax [Government] Code.
SECTION 2.128. Section 41.001(2), Education Code, is
amended to read as follows:
(2) "Wealth per student" means the taxable value of
property, as determined under Subchapter B [M], Chapter 5 [403],
Tax [Government] Code, divided by the number of students in
weighted average daily attendance.
SECTION 2.129. Section 41.002(f), Education Code, is
amended to read as follows:
(f) For purposes of Subsection (e), a school district's
effective tax rate is determined by dividing the total amount of
taxes collected by the district for the applicable school year less
any amounts paid into a tax increment fund under Chapter 311, Tax
Code, by the quotient of the district's taxable value of property,
as determined under Subchapter B [M], Chapter 5 [403], Tax
[Government] Code, divided by 100.
SECTION 2.130. Section 41.202(a), Education Code, is
amended to read as follows:
(a) For purposes of this subchapter, the taxable value of an
individual parcel or other item of property and the total taxable
value of property in a school district resulting from the
detachment of property from or annexation of property to that
district is determined by applying the appraisal ratio for the
appropriate category of property determined under Subchapter B [M],
Chapter 5 [403], Tax [Government] Code, for the preceding tax year
to the taxable value of the detached or annexed property determined
under Title 1, Tax Code, for the preceding tax year.
SECTION 2.131. Sections 42.252(a), (b), and (c), Education
Code, are amended to read as follows:
(a) Each school district's share of the Foundation School
Program is determined by the following formula:
LFA = TR X DPV
where:
"LFA" is the school district's local share;
"TR" is a tax rate which for each hundred dollars of valuation
is an effective tax rate of the amount equal to the product of the
state compression percentage, as determined under Section 42.2516,
multiplied by the lesser of:
(1) $1.50; or
(2) the maintenance and operations tax rate adopted by
the district for the 2005 tax year; and
"DPV" is the taxable value of property in the school district
for the preceding tax year determined under Subchapter B [M],
Chapter 5 [403], Tax [Government] Code.
(b) The commissioner shall adjust the values reported in the
official report of the State Property Tax Board [comptroller] as
required by Section 5.09(a), Tax Code, to reflect reductions in
taxable value of property resulting from natural or economic
disaster after January 1 in the year in which the valuations are
determined. The decision of the commissioner is final. An
adjustment does not affect the local fund assignment of any other
school district.
(c) Appeals of district values shall be held pursuant to
Section 5.24 [403.303], Tax [Government] Code.
SECTION 2.132. Sections 42.2522(a) and (d), Education Code,
are amended to read as follows:
(a) In any school year, the commissioner may not provide
funding under this chapter based on a school district's taxable
value of property computed in accordance with Section 5.23(d)(2)
[403.302(d)(2)], Tax [Government] Code, unless:
(1) funds are specifically appropriated for purposes
of this section; or
(2) the commissioner determines that the total amount
of state funds appropriated for purposes of the Foundation School
Program for the school year exceeds the amount of state funds
distributed to school districts in accordance with Section 42.253
based on the taxable values of property in school districts
computed in accordance with Section 5.23(d) [403.302(d)], Tax
[Government] Code, without any deduction for residence homestead
exemptions granted under Section 11.13(n), Tax Code.
(d) If the commissioner determines that the amount of funds
available under Subsection (a)(1) or (2) does not at least equal the
total amount of state funding to which districts would be entitled
if state funding under this chapter were based on the taxable values
of property in school districts computed in accordance with Section
5.23(d)(2) [403.302(d)(2)], Tax [Government] Code, the
commissioner may, to the extent necessary, provide state funding
based on a uniform lesser fraction of the deduction under Section
5.23(d)(2) [403.302(d)(2)], Tax [Government] Code.
SECTION 2.133. Section 42.254, Education Code, is amended
to read as follows:
Sec. 42.254. ESTIMATES REQUIRED. (a) Not later than
October 1 of each even-numbered year:
(1) the agency shall submit to the legislature an
estimate of the tax rate and student enrollment of each school
district for the following biennium; and
(2) the State Property Tax Board [comptroller] shall
submit to the legislature an estimate of the total taxable value of
all property in the state as determined under Subchapter B [M],
Chapter 5 [403], Tax [Government] Code, for the following biennium.
(b) The agency and the State Property Tax Board
[comptroller] shall update the information provided to the
legislature under Subsection (a) not later than March 1 of each
odd-numbered year.
SECTION 2.134. Section 42.257(a), Education Code, is
amended to read as follows:
(a) If the final determination of an appeal under Chapter
42, Tax Code, results in a reduction in the taxable value of
property that exceeds five percent of the total taxable value of
property in the school district for the same tax year determined
under Subchapter B [M], Chapter 5 [403], Tax [Government] Code, the
commissioner shall request the State Property Tax Board
[comptroller] to adjust its taxable property value findings for
that year consistent with the final determination of the appraisal
appeal.
SECTION 2.135. Section 42.259(a)(4), Education Code, is
amended to read as follows:
(4) "Wealth per student" means the taxable property
values reported by the State Property Tax Board [comptroller] to
the commissioner under Section 42.252 divided by the number of
students in average daily attendance.
SECTION 2.136. Section 42.302(a), Education Code, is
amended to read as follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount of
state support, subject only to the maximum amount under Section
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is an
amount described by Subsection (a-1) or a greater amount for any
year provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment under Section
42.158 or 42.160, and 50 percent of the adjustment under Section
42.102, by the basic allotment for the applicable year;
"DTR" is the district enrichment tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter B [M], Chapter 5 [403], Tax [Government] Code, or, if
applicable, under Section 42.2521, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter B [M], Chapter 5 [403], Tax
[Government] Code, or, if applicable, under Section 42.2521,
divided by 100.
SECTION 2.137. Section 46.003(a), Education Code, is
amended to read as follows:
(a) For each year, except as provided by Sections 46.005 and
46.006, a school district is guaranteed a specified amount per
student in state and local funds for each cent of tax effort, up to
the maximum rate under Subsection (b), to pay the principal of and
interest on eligible bonds issued to construct, acquire, renovate,
or improve an instructional facility. The amount of state support
is determined by the formula:
FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
where:
"FYA" is the guaranteed facilities yield amount of state
funds allocated to the district for the year;
"FYL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the greater of the number of students in average
daily attendance, as determined under Section 42.005, in the
district or 400;
"BTR" is the district's bond tax rate for the current year,
which is determined by dividing the amount budgeted by the district
for payment of eligible bonds by the quotient of the district's
taxable value of property as determined under Subchapter B [M],
Chapter 5 [403], Tax [Government] Code, or, if applicable, Section
42.2521, divided by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter B [M], Chapter 5 [403], Tax
[Government] Code, or, if applicable, Section 42.2521.
SECTION 2.138. Section 46.006(g), Education Code, is
amended to read as follows:
(g) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
B [M], Chapter 5 [403], Tax [Government] Code, or, if applicable,
Section 42.2521, divided by the district's average daily attendance
as determined under Section 42.005.
SECTION 2.139. Section 46.032(a), Education Code, is
amended to read as follows:
(a) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of tax effort to
pay the principal of and interest on eligible bonds. The amount of
state support, subject only to the maximum amount under Section
46.034, is determined by the formula:
EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
where:
"EDA" is the amount of state funds to be allocated to the
district for assistance with existing debt;
"EDGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is $35 or a
greater amount for any year provided by appropriation;
"ADA" is the number of students in average daily attendance,
as determined under Section 42.005, in the district;
"EDTR" is the existing debt tax rate of the district, which is
determined by dividing the amount budgeted by the district for
payment of eligible bonds by the quotient of the district's taxable
value of property as determined under Subchapter B [M], Chapter 5
[403], Tax [Government] Code, or, if applicable, under Section
42.2521, divided by 100; and
"DPV" is the district's taxable value of property as
determined under Subchapter B [M], Chapter 5 [403], Tax
[Government] Code, or, if applicable, under Section 42.2521.
SECTION 2.140. The heading to Section 552.149, Government
Code, is amended to read as follows:
Sec. 552.149. EXCEPTION: CONFIDENTIALITY OF RECORDS OF
STATE PROPERTY TAX BOARD [COMPTROLLER] OR APPRAISAL DISTRICT
RECEIVED FROM PRIVATE ENTITY.
SECTION 2.141. Sections 552.149(a), (c), and (d),
Government Code, are amended to read as follows:
(a) Information relating to real property sales prices,
descriptions, characteristics, and other related information
received from a private entity by the State Property Tax Board
[comptroller] or the chief appraiser of an appraisal district under
Chapter 6, Tax Code, is excepted from the requirements of Section
552.021.
(c) Notwithstanding Subsection (a) or Section 5.25, Tax
Code [403.304], so as to assist a property owner or an appraisal
district in a protest filed under Section 5.24, Tax Code [403.303],
the property owner, the district, or an agent of the property owner
or district may, on request, obtain from the State Property Tax
Board [comptroller] any information, including confidential
information, obtained by the board [comptroller] in connection with
the board's [comptroller's] finding that is being protested.
Confidential information obtained by a property owner, an appraisal
district, or an agent of the property owner or district under this
subsection:
(1) remains confidential in the possession of the
property owner, district, or agent; and
(2) may not be disclosed to a person who is not
authorized to receive or inspect the information.
(d) Notwithstanding Subsection (a) or Section 5.25, Tax
Code [403.304], so as to assist a school district in the preparation
of a protest filed or to be filed under Section 5.24, Tax Code
[403.303], the school district or an agent of the school district
may, on request, obtain from the State Property Tax Board
[comptroller] or the appraisal district any information, including
confidential information, obtained by the board [comptroller] or
the appraisal district that relates to the appraisal of property
involved in the board's [comptroller's] finding that is being
protested. Confidential information obtained by a school district
or an agent of the school district under this subsection:
(1) remains confidential in the possession of the
school district or agent; and
(2) may not be disclosed to a person who is not
authorized to receive or inspect the information.
SECTION 2.142. Sections 825.405(h) and (i), Government
Code, are amended to read as follows:
(h) This section does not apply to state contributions for
members employed by a school district in a school year if the
district's effective tax rate for maintenance and operation
revenues for the tax year that ended in the preceding school year
equals or exceeds 125 percent of the statewide average effective
tax rate for school district maintenance and operation revenues for
that tax year. For a tax year, the statewide average effective tax
rate for school district maintenance and operation revenues is the
tax rate that, if applied to the statewide total appraised value of
taxable property for every school district in the state determined
under Section 5.23, Tax Code [403.302], would produce an amount
equal to the statewide total amount of maintenance and operation
taxes imposed in the tax year for every school district in the
state.
(i) Not later than the seventh day after the final date the
State Property Tax Board [comptroller] certifies to the
commissioner of education changes to the property value study
conducted under Subchapter B [M], Chapter 5, Tax Code [403], the
board [comptroller] shall certify to the Teacher Retirement System
of Texas:
(1) the effective tax rate for school district
maintenance and operation revenues for each school district in the
state for the immediately preceding tax year; and
(2) the statewide average effective tax rate for
school district maintenance and operation revenues for the
immediately preceding tax year.
SECTION 2.143. Section 61.040, Health and Safety Code, is
amended to read as follows:
Sec. 61.040. TAX INFORMATION. The State Property Tax Board
[comptroller] shall give the department information relating to:
(1) the taxable value of property taxable by each
county and each county's applicable general revenue tax levy for
the relevant period; and
(2) the amount of sales and use tax revenue received by
each county for the relevant period.
SECTION 2.144. Section 1151.1015, Occupations Code, is
amended to read as follows:
Sec. 1151.1015. ASSISTANCE FROM STATE PROPERTY TAX BOARD
[COMPTROLLER]. The State Property Tax Board [comptroller] shall
enter into a memorandum of understanding with the department under
which the board [comptroller] shall provide:
(1) information on the educational needs of and
opportunities for tax professionals;
(2) review and approval of all required educational
courses, examinations, and continuing education programs for
registrants;
(3) a copy of any report issued by the board
[comptroller] under Section 5.102, Tax Code, and if requested by
the department a copy of any work papers or other documents
collected or created in connection with a report issued under that
section; and
(4) information and assistance regarding
administrative proceedings conducted under the commission's rules
or this chapter.
SECTION 2.145. Sections 1151.1581(b) and (e), Occupations
Code, are amended to read as follows:
(b) The State Property Tax Board [comptroller] must review
and approve all continuing education programs for registrants.
(e) The State Property Tax Board [comptroller] may set fees
for continuing education courses and providers of continuing
education courses in amounts reasonable and necessary to cover the
board's [comptroller's] costs in administering the board's
[comptroller's] duties under this section.
SECTION 2.146. Section 1151.161(c), Occupations Code, is
amended to read as follows:
(c) The department may accept, develop, or contract for the
examinations required by this section, including the
administration of the examinations. The State Property Tax Board
[comptroller] must approve the content of an examination accepted,
developed, or contracted for by the department. The department may
require a third-party vendor to collect a fee associated with the
examination directly from examinees.
SECTION 2.147. Section 1151.202(c), Occupations Code, is
amended to read as follows:
(c) Before imposing an administrative penalty under
Subchapter F, Chapter 51, against a registrant, the department must
consider evidence that the registrant:
(1) attempted in good faith to implement or execute a
law, policy, rule, order, budgetary restriction, or other
regulation provided by the laws of this state, the State Property
Tax Board [comptroller], or the governing body or the chief
administrator of the appraisal district or taxing jurisdiction that
employs the registrant;
(2) acted on the advice of counsel or the State
Property Tax Board [comptroller]; or
(3) had discretion over the matter on which the
complaint is based, if the complaint is based solely on grounds that
the registrant decided incorrectly or failed to exercise discretion
in favor of the complainant.
SECTION 2.148. Section 1151.204(c), Occupations Code, is
amended to read as follows:
(c) This section does not apply to:
(1) a matter referred to the department by the State
Property Tax Board [comptroller] under Section 5.102, Tax Code, or
a successor statute;
(2) a complaint concerning a registrant's failure to
comply with the registration and certification requirements of this
chapter; or
(3) a complaint concerning a newly appointed chief
appraiser's failure to complete the training program described by
Section 1151.164.
SECTION 2.149. Section 1152.204(c), Occupations Code, is
amended to read as follows:
(c) The commission may recognize an educational program or
course:
(1) related to property tax consulting services; and
(2) offered or sponsored by a public provider or a
recognized private provider, including:
(A) the State Property Tax Board [comptroller];
(B) the State Bar of Texas;
(C) the Texas Real Estate Commission;
(D) an institution of higher education that meets
program and accreditation standards comparable to those for public
institutions of higher education as determined by the Texas Higher
Education Coordinating Board; or
(E) a nonprofit and voluntary trade association,
institute, or organization:
(i) whose membership consists primarily of
persons who represent property owners in property tax or
transactional tax matters;
(ii) that has written experience and
examination requirements for membership or for granting
professional designation to its members; and
(iii) that subscribes to a code of
professional conduct or ethics.
ARTICLE 3. TRANSITION AND EFFECTIVE DATE
SECTION 3.01. (a) On January 1, 2016:
(1) the property tax assistance division of the office
of the comptroller of public accounts is abolished and all powers
and duties of the division are transferred to the State Property Tax
Board;
(2) all obligations, rights, contracts,
appropriations, records, and property of the property tax
assistance division of the office of the comptroller of public
accounts are transferred to the State Property Tax Board;
(3) a rule, policy, procedure, or decision of the
property tax assistance division of the office of the comptroller
of public accounts continues in effect as a rule, policy,
procedure, or decision of the State Property Tax Board, in
accordance with Subdivision (1) of this subsection, until
superseded by a later act of the State Property Tax Board; and
(4) a reference in law to the property tax assistance
division of the office of the comptroller of public accounts or to
the comptroller in a law concerning the former duties of the
division means the State Property Tax Board.
(b) The validity of a form adopted, contract or acquisition
made, proceeding begun, obligation incurred, right accrued, or
other action taken by or in connection with the authority of the
property tax assistance division of the office of the comptroller
of public accounts before it is abolished under Subsection (a) of
this section is not affected by this Act. To the extent those
actions continue to have any effect on or after January 1, 2016,
they are considered to be actions of the State Property Tax Board.
(c) The State Property Tax Board shall reimburse the general
revenue fund with all money received from appraisal districts or
property owners as reimbursement for the board's cost of conducting
performance audits.
(d) All appropriations made to the office of the comptroller
of public accounts to conduct the duties of the property tax
assistance division of that office are transferred to the State
Property Tax Board.
(e) As soon as practicable after the effective date of this
Act, but not later than October 1, 2015, the governor shall make
appointments to the State Property Tax Board. In making those
appointments, the governor shall appoint three members to terms
expiring March 1, 2017, two to terms expiring March 1, 2019, and two
to terms expiring March 1, 2021.
(f) The governor or the person appointed by the governor to
be the chair of the State Property Tax Board may designate a person
to perform ministerial duties necessary for posting notice of and
holding the first meeting of the board.
SECTION 3.02. (a) Not later than November 1, 2015, the
property tax assistance division of the office of the comptroller
of public accounts and the State Property Tax Board shall adopt a
comprehensive transition plan to transfer the powers and duties of
the division to the board under this Act. The comprehensive
transition plan may include an agreement for the provision of
office space, utilities and other facility services, and support
services and for the transfer of information technology as
necessary or appropriate to effect the transfer of the powers and
duties of the division to the board.
(b) Otherwise confidential information shared between the
property tax assistance division of the office of the comptroller
of public accounts and the State Property Tax Board remains subject
to the same confidentiality requirements and legal restrictions on
access to the information that are imposed by law on the entity that
originally obtained or collected the information.
(c) Information described in Subsection (b) of this section
may be shared between the property tax assistance division of the
office of the comptroller of public accounts and the State Property
Tax Board without the consent of the person who is the subject of
the information.
SECTION 3.03. (a) Not later than December 1, 2015, the head
of the property tax assistance division of the office of the
comptroller of public accounts shall meet with the State Property
Tax Board to provide for the transfer of essential personnel to the
board.
(b) The division shall continue, as necessary, to perform
the duties and functions being transferred to the board until the
transfer of agency duties and functions is complete.
SECTION 3.04. The Comptroller's Appraisal Review Board
Manual is renamed the State Property Tax Board's Appraisal Review
Board Manual. Any references to the Comptroller's Appraisal Review
Board Manual mean the State Property Tax Board's Appraisal Review
Board Manual.
SECTION 3.05. This Act applies only to a tax year beginning
on or after the effective date of this Act.
SECTION 3.06. This Act takes effect September 1, 2015.
I $10 billion or more
II $1 billion or more but less than $10 billion
III $500 million or more but less than $1 billion
IV $100 million or more but less than $500 million
V less than $100 million
I $200 million or more
II $90 million or more but less than $200 million
III $1 million or more but less than $90 million
IV $100,000 or more but less than $1 million
V less than $100,000