85R27337 TJB-F
By: Geren H.B. No. 3168
Substitute the following for H.B. No. 3168:
By: Murr C.S.H.B. No. 3168
A BILL TO BE ENTITLED
AN ACT
relating to ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.05, Tax Code, is amended by adding
Subsection (e) to read as follows:
(e) An appraisal review board shall comply with all
procedural requirements included in the Appraisal Review Board
Manual prepared and issued by the comptroller.
SECTION 2. Section 6.42, Tax Code, is amended by amending
Subsection (a) and adding Subsection (d) to read as follows:
(a) A majority of the appraisal review board constitutes a
quorum. The local administrative district judge under Subchapter
D, Chapter 74, Government Code, in the county in which [board of
directors of] the appraisal district is established [by resolution]
shall select a chairman and a secretary from among the members of
the appraisal review board. The judge [board of directors of the
appraisal district] is encouraged to select as chairman [of the
appraisal review board] a member of the appraisal review board, if
any, who has a background in law and property appraisal.
(d) The concurrence of a majority of the members of the
appraisal review board or a panel of the board present at a meeting
of the board or panel is sufficient for a recommendation,
determination, decision, or other action by the board or panel, and
the concurrence of more than a majority of the members of the board
or panel may not be required.
SECTION 3. Chapter 6, Tax Code, is amended by adding
Subchapter D to read as follows:
SUBCHAPTER D. LIMITED APPEAL OF NONCOMPLIANCE WITH PROCEDURAL
REQUIREMENT
Sec. 6.61. LIMITED APPEAL. (a) Notwithstanding any other
law or the Texas Rules of Civil Procedure, an affected property
owner may file a petition directly with the district court to
compel an appraisal district, chief appraiser, or appraisal review
board to comply with a procedural requirement that:
(1) is imposed on the district, chief appraiser, or
board under this title, a comptroller rule, or a rule of procedure
established by an appraisal review board under Chapter 41; and
(2) the property owner alleges has not been complied
with by the district, chief appraiser, or board.
(b) A property owner may not file a petition authorized by
this section before the 10th day after the date the property owner
provides written notice as provided by this subsection of the
owner's intent to file the petition. The notice must state whether
the appraisal district, chief appraiser, or appraisal review board
failed to comply with a procedural requirement described by
Subsection (a) and must identify the procedural requirement. The
notice must be sent by certified mail, return receipt requested,
to:
(1) the chief appraiser of the appraisal district if
the owner alleges that the chief appraiser or appraisal district
failed to comply with the requirement;
(2) except as provided by Subdivision (3), the chair
of the appraisal review board if the owner alleges that the board
failed to comply with the requirement; or
(3) the local administrative district judge if the
judge appoints the members of the appraisal review board and the
owner alleges that the board failed to comply with the requirement.
(c) A suit brought under this section is for the limited
purpose of determining whether the defendant failed to comply with
the procedural requirement that is the subject of the suit. The suit
may not address the merits of a motion filed under Section 25.25 or
a protest filed under Chapter 41.
(d) Neither party may conduct discovery in a suit brought
under this section.
(e) A property owner may set the matter that is the subject
of the suit for an evidentiary hearing in accordance with the notice
requirements provided by Rule 21, Texas Rules of Civil Procedure. A
property owner may not set the matter for a hearing under this
subsection until the petition initiating the suit has been served
on the defendant.
(f) At the end of a hearing under Subsection (e), the court
must determine the merits of the suit. If the court determines that
the defendant failed to comply with a procedural requirement
imposed on the defendant, the court:
(1) shall order the defendant to comply with the
procedural requirement;
(2) shall enter any order necessary to preserve rights
protected by, and impose duties required by, the law; and
(3) may award court costs and reasonable attorney's
fees to the property owner.
(g) An order entered under Subsection (f) is final and may
not be appealed.
SECTION 4. Section 21.10(b), Tax Code, is amended to read as
follows:
(b) Except as otherwise provided by this subsection, if [If]
the application is approved, the property owner is liable to each
taxing unit for a penalty in an amount equal to 10 percent of the
[difference between the] amount of tax imposed by the taxing unit on
the property [without the allocation and the amount of tax imposed
on the property] with the allocation. A property owner is not liable
for the penalty prescribed by this subsection if the chief
appraiser who received the owner's allocation application
determines that the owner:
(1) exercised reasonable diligence in attempting to
file the application before the deadline imposed by Section 21.09;
or
(2) substantially complied with the requirements of
that section.
SECTION 5. Sections 25.19(a) and (g), Tax Code, are amended
to read as follows:
(a) By April 1 or as soon thereafter as practicable [if the
property is a single-family residence that qualifies for an
exemption under Section 11.13, or by May 1 or as soon thereafter as
practicable in connection with any other property], the chief
appraiser shall deliver a clear and understandable written notice
to a property owner of the appraised value of the property owner's
property if:
(1) the appraised value of the property is greater
than it was in the preceding year;
(2) the appraised value of the property is greater
than the value rendered by the property owner;
(3) the property was not on the appraisal roll in the
preceding year; or
(4) an exemption or partial exemption approved for the
property for the preceding year was canceled or reduced for the
current year.
(g) By April 1 or as soon thereafter as practicable [if the
property is a single-family residence that qualifies for an
exemption under Section 11.13, or by May 1 or as soon thereafter as
practicable in connection with any other property], the chief
appraiser shall deliver a written notice to the owner of each
property not included in a notice required to be delivered under
Subsection (a), if the property was reappraised in the current tax
year, if the ownership of the property changed during the preceding
year, or if the property owner or the agent of a property owner
authorized under Section 1.111 makes a written request for the
notice. The chief appraiser shall separate real from personal
property and include in the notice for each property:
(1) the appraised value of the property in the
preceding year;
(2) the appraised value of the property for the
current year and the kind of each partial exemption, if any,
approved for the current year;
(3) a detailed explanation of the time and procedure
for protesting the value; and
(4) the date and place the appraisal review board will
begin hearing protests.
SECTION 6. Section 25.25(d), Tax Code, is amended to read as
follows:
(d) At any time prior to the date the taxes become
delinquent, a property owner or the chief appraiser may file a
motion with the appraisal review board to change the appraisal roll
to correct an error, including an error regarding the unequal
appraisal or excessive market value of a property, that resulted in
an incorrect appraised value for the owner's property. However,
the error may not be corrected unless it resulted in an appraised
value that exceeds by more than one-third the correct appraised
value. If the appraisal roll is changed under this subsection, the
property owner must pay to each affected taxing unit a
late-correction penalty equal to 10 percent of the amount of taxes
as calculated on the basis of the corrected appraised value.
Payment of the late-correction penalty is secured by the lien that
attaches to the property under Section 32.01 and is subject to
enforced collection under Chapter 33. The roll may not be changed
under this subsection if:
(1) the property was the subject of a protest brought
by the property owner under Chapter 41, a hearing on the protest was
conducted in which the property owner offered evidence or argument,
and the appraisal review board made a determination of the protest
on the merits; or
(2) the appraised value of the property was
established as a result of a written agreement between the property
owner or the owner's agent and the appraisal district.
SECTION 7. Section 41.03(a), Tax Code, is amended to read as
follows:
(a) A taxing unit is entitled to challenge before the
appraisal review board:
(1) [the level of appraisals of any category of
property in the district or in any territory in the district, but
not the appraised value of a single taxpayer's property;
[(2)] an exclusion of property from the appraisal
records;
(2) [(3)] a grant in whole or in part of a partial
exemption;
(3) [(4)] a determination that land qualifies for
appraisal as provided by Subchapter C, D, E, or H, Chapter 23; or
(4) [(5)] failure to identify the taxing unit as one in
which a particular property is taxable.
SECTION 8. Section 41.11(a), Tax Code, is amended to read as
follows:
(a) Not later than the date the appraisal review board
approves the appraisal records as provided by Section 41.12, the
secretary of the board shall deliver written notice to a property
owner of any change in the records that is ordered by the board as
provided by this subchapter and that will result in an increase in
the tax liability of the property owner. An owner who receives a
notice as provided by this section shall be entitled to protest such
action as provided by Section 41.44(a)(2) [41.44(a)(3)].
SECTION 9. Sections 41.44(a) and (c), Tax Code, are amended
to read as follows:
(a) Except as provided by Subsections (b), [(b-1),] (c),
(c-1), and (c-2), to be entitled to a hearing and determination of a
protest, the property owner initiating the protest must file a
written notice of the protest with the appraisal review board
having authority to hear the matter protested:
(1) before June [May] 1 or not later than the 30th day
after the date that notice to the property owner was delivered to
the property owner as provided by Section 25.19, [if the property is
a single-family residence that qualifies for an exemption under
Section 11.13,] whichever is later;
(2) [before June 1 or not later than the 30th day after
the date that notice was delivered to the property owner as provided
by Section 25.19 in connection with any other property, whichever
is later;
[(3)] in the case of a protest of a change in the
appraisal records ordered as provided by Subchapter A of this
chapter or by Chapter 25, not later than the 30th day after the date
notice of the change is delivered to the property owner;
(3) [(4)] in the case of a determination that a change
in the use of land appraised under Subchapter C, D, E, or H, Chapter
23, has occurred, not later than the 30th day after the date the
notice of the determination is delivered to the property owner; or
(4) [(5)] in the case of a determination of
eligibility for a refund under Section 23.1243, not later than the
30th day after the date the notice of the determination is delivered
to the property owner.
(c) A property owner who files notice of a protest
authorized by Section 41.411 is entitled to a hearing and
determination of the protest if the property owner files the notice
prior to the date the taxes on the property to which the notice
applies become delinquent. An owner of land who files a notice of
protest under Subsection (a)(3) [(a)(4)] is entitled to a hearing
and determination of the protest without regard to whether the
appraisal records are approved.
SECTION 10. Section 41.71, Tax Code, is amended to read as
follows:
Sec. 41.71. EVENING AND WEEKEND HEARINGS. (a) An appraisal
review board by rule shall provide for hearings on protests [in the
evening or] on a Saturday or after 5 p.m. on a weekday [Sunday].
(b) The board may not schedule:
(1) the first hearing on a protest held on a weekday
evening to begin after 7 p.m.; or
(2) a hearing on a protest on a Sunday.
SECTION 11. Section 41A.01, Tax Code, is amended to read as
follows:
Sec. 41A.01. RIGHT OF APPEAL BY PROPERTY OWNER. As an
alternative to filing an appeal under Section 42.01, a property
owner is entitled to appeal through binding arbitration under this
chapter an appraisal review board order determining a protest filed
under Section 41.41(a)(1) or (2), or a motion filed under Section
25.25(d), concerning the appraised or market value of property if:
(1) the property qualifies as the owner's residence
homestead under Section 11.13; or
(2) the appraised or market value, as applicable, of
the property as determined by the order is $3 million or less.
SECTION 12. Sections 41A.03(a) and (a-1), Tax Code, are
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 60th [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
comptroller in the amount of:
(A) $450, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $500,000 or less,
as determined by the order;
(B) $500, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than
$500,000, as determined by the order;
(C) $500, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $1 million or
less, as determined by the order;
(D) $800, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than $1
million but not more than $2 million, as determined by the order; or
(E) $1,050, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $2 million but not more than $3 million, as determined by the
order.
(a-1) If a property owner requests binding arbitration
under this chapter to appeal appraisal review board orders
involving two or more tracts of land that are contiguous to one
another, a single arbitration deposit in the amount provided by
Subsection (a)(2) is sufficient to satisfy the requirement of
Subsection (a)(2). For purposes of this subsection, a tract of land
is considered to be contiguous with another tract of land if the
tracts are divided only by a road, railroad track, river, or stream.
SECTION 13. The following provisions of the Tax Code are
repealed:
(1) Section 6.414; and
(2) Section 41.44(b-1).
SECTION 14. Subchapter D, Chapter 6, Tax Code, as added by
this Act, applies only to a procedural requirement as described by
Section 6.61(a) of that code that a property owner alleges was not
complied with on or after the effective date of Section 6.61 of that
chapter as provided by this Act.
SECTION 15. Section 21.10(b), Tax Code, as amended by this
Act, applies only to an allocation application that is approved by
the chief appraiser of an appraisal district on or after the
effective date of that subsection as provided by this Act. An
allocation application that is approved by the chief appraiser
before the effective date of that subsection is governed by the law
in effect on the date the application is approved, and the former
law is continued in effect for that purpose.
SECTION 16. Section 41.03(a), Tax Code, as amended by this
Act, applies only to a challenge under Chapter 41, Tax Code, for
which a challenge petition is filed on or after the effective date
of that subsection as provided by this Act. A challenge under
Chapter 41, Tax Code, for which a challenge petition was filed
before the effective date of that subsection is governed by the law
in effect on the date the challenge petition was filed, and the
former law is continued in effect for that purpose.
SECTION 17. Section 41.44, Tax Code, as amended by this Act,
applies only to a protest filed under Chapter 41, Tax Code, on or
after the effective date of that section as provided by this Act. A
protest filed under that chapter before the effective date of that
section is governed by the law in effect on the date the protest was
filed, and the former law is continued in effect for that purpose.
SECTION 18. Section 41.71, Tax Code, as amended by this Act,
applies only to a hearing on a protest under Chapter 41, Tax Code,
that is scheduled on or after the effective date of that section as
provided by this Act. A hearing on a protest under Chapter 41, Tax
Code, that is scheduled before the effective date of that section is
governed by the law in effect on the date the hearing was scheduled,
and that law is continued in effect for that purpose.
SECTION 19. Sections 41A.01 and 41A.03, Tax Code, as
amended by this Act, apply only to a request for binding arbitration
under Chapter 41A, Tax Code, that is filed on or after the effective
date of those sections as provided by this Act. A request for
binding arbitration under Chapter 41A, Tax Code, that is filed
before the effective date of those sections is governed by the law
in effect on the date the request is filed, and the former law is
continued in effect for that purpose.
SECTION 20. (a) Except as provided by Subsections (b) and
(c) of this section, this Act takes effect January 1, 2018.
(b) The following provisions take effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution, or September 1, 2017, if this Act does not receive the
vote necessary for immediate effect:
(1) Section 5.05(e), Tax Code, as added by this Act;
(2) Section 6.61, Tax Code, as added by this Act;
(3) Section 21.10(b), Tax Code, as amended by this
Act;
(4) Section 25.25(d), Tax Code, as amended by this
Act; and
(5) Section 41.03(a), Tax Code, as amended by this
Act.
(c) The following provisions take effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution, or January 1, 2018, if this Act does not receive the
vote necessary for immediate effect:
(1) Section 41A.01, Tax Code, as amended by this Act;
and
(2) Sections 41A.03(a) and (a-1), Tax Code, as amended
by this Act.