85R10660 TJB/CJC/LHC-F
By: Geren H.B. No. 3168
A BILL TO BE ENTITLED
AN ACT
relating to ad valorem taxation; authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 5, Tax Code, is amended by designating
Sections 5.03, 5.04, 5.041, 5.042, 5.05, 5.06, 5.07, 5.08, 5.09,
5.091, 5.10, 5.102, 5.103, 5.12, 5.13, 5.14, and 5.16 as Subchapter
A and adding a subchapter heading to read as follows:
SUBCHAPTER A. COMPTROLLER OF PUBLIC ACCOUNTS
SECTION 2. Section 5.041, Tax Code, is amended by amending
Subsections (a), (d), and (e-1) and adding Subsection (i) to read as
follows:
(a) The comptroller shall:
(1) in consultation with property owners, individuals
engaged in the business of representing property owners in
proceedings under this title, and chief appraisers, 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.
(d) The written course material for the course required
under Subsection (a) is the 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 comptroller. The revision language must be
approved on the unanimous agreement of a committee selected by the
comptroller and representing, equally, property owners,
individuals engaged in the business of representing property owners
in proceedings under this title, [taxpayers] and chief appraisers.
The person requesting the revision shall pay the costs of mediation
if the comptroller determines that mediation is required.
(e-1) In addition to the course established under
Subsection (a), the comptroller, in consultation with property
owners, individuals engaged in the business of representing
property owners in proceedings under this title, and chief
appraisers, 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.
(i) Notwithstanding Subsections (c) and (e-3), the
comptroller shall ensure that a course required by this section
includes at least one component in which property owners,
individuals engaged in the business of representing property owners
in proceedings under this title, and chief appraisers or other
representatives of an appraisal district or appraisal review board
are allowed to participate.
SECTION 3. 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 4. Chapter 5, Tax Code, is amended by adding
Subchapter B to read as follows:
SUBCHAPTER B. OFFICE OF LOCAL PROPERTY TAX OMBUDSMAN
Sec. 5.051. DEFINITIONS. In this subchapter:
(1) "Complaint" means a complaint filed under Section
5.056.
(2) "Office" means the Office of Local Property Tax
Ombudsman.
(3) "Ombudsman" means the local property tax ombudsman
appointed under this subchapter.
Sec. 5.052. ESTABLISHMENT OF OFFICE. The Office of Local
Property Tax Ombudsman is established in the office of the
comptroller to resolve complaints involving alleged violations of
procedural requirements imposed by law, by comptroller rule, or by
the rules of procedure established by an appraisal review board
regarding the activities of an appraisal district, appraisal review
board, chief appraiser, or appraisal review board member under this
title.
Sec. 5.053. SUNSET PROVISION. The office is subject to
Chapter 325, Government Code (Texas Sunset Act). Unless continued
in existence as provided by that chapter, the office is abolished
and this subchapter expires on September 1, 2021.
Sec. 5.054. LOCAL PROPERTY TAX OMBUDSMAN. (a) The office is
headed by the local property tax ombudsman.
(b) The ombudsman is appointed by the comptroller with the
advice of the governor, lieutenant governor, and speaker of the
house of representatives.
(c) Appointment of the ombudsman shall be made without
regard to the race, color, disability, sex, religion, age, or
national origin of the appointee.
(d) The ombudsman serves a two-year term beginning on
February 1 of each even-numbered year.
(e) To be eligible for appointment as the ombudsman, an
individual must:
(1) be licensed to practice law in this state;
(2) have demonstrated a strong commitment to and
involvement in efforts to safeguard the rights of the public; and
(3) possess the knowledge and experience necessary to
practice effectively in property tax proceedings.
(f) An individual is not eligible for appointment as the
ombudsman if the individual or the individual's spouse:
(1) is employed by or participates in the management
of a business entity or other organization the employees of which
are regulated by the comptroller;
(2) is employed by an appraisal district or taxing
unit; or
(3) has during the preceding five-year period been a
member or employee of a law firm that rendered legal services to an
appraisal district, appraisal review board, or taxing unit.
Sec. 5.055. STAFF AND OFFICES. (a) The comptroller shall
provide the ombudsman with sufficient funds to employ the
professional and administrative staff necessary for the efficient
operation of the office.
(b) The comptroller shall provide the ombudsman with
sufficient office space, equipment, and supplies necessary for the
efficient operation of the office.
Sec. 5.056. FILING OF COMPLAINT. (a) A property owner may
file a written complaint with the office alleging that an appraisal
district, appraisal review board, chief appraiser, or appraisal
review board member has failed to comply with a procedural
requirement imposed by law, by comptroller rule, or by the rules of
procedure established by an appraisal review board regarding the
activities of an appraisal district, appraisal review board, chief
appraiser, or appraisal review board member under this title.
(b) A complaint filed under this section may allege the
violation of any procedural requirement described by Subsection
(a), including a complaint involving:
(1) the application of hearing procedures;
(2) the provision of a required notice;
(3) the scheduling of a hearing;
(4) the postponement of a hearing;
(5) the evidence presented at a hearing;
(6) the issuance of a subpoena;
(7) conflicts of interest;
(8) the selection of appraisal review board members;
(9) the assignment of protests to a panel of an
appraisal review board;
(10) the occurrence of an ex parte communication; and
(11) any other matter affecting a procedural matter or
right under this title.
(c) A complaint may not address a substantive issue or the
merits of a motion filed under Section 25.25 or a protest filed
under Chapter 41.
(d) The filing of a complaint or assertion that a complaint
will be filed is not a ground to postpone a hearing before an
appraisal review board.
Sec. 5.057. NOTICE OF COMPLAINT. (a) Not later than the
15th day after the date a complaint is filed, the office must notify
the chief appraiser of the appraisal district from which the
complaint was filed.
(b) The notice must be in writing, include a copy of the
complaint, and be sent by certified mail, return receipt requested.
Sec. 5.058. RESOLUTION OF COMPLAINT. (a) The ombudsman may
resolve a complaint through an alternative dispute resolution
process agreed to by the parties, including through mediation or
binding arbitration.
(b) The office may investigate a complaint and gather
information and documents necessary to resolve a complaint.
(c) The office shall encourage the parties to a complaint to
agree to a resolution of the complaint.
(d) The office may resolve a complaint without a hearing.
Sec. 5.059. OMBUDSMAN RULING. (a) The ombudsman shall
issue a ruling resolving a complaint.
(b) A ruling by the ombudsman must be in writing and may
provide for any appropriate remedy, including:
(1) dismissal of the complaint; and
(2) a public reprimand of an appraisal district,
appraisal review board, chief appraiser, appraisal review board
member, or other person.
(c) Not later than the third day after the date the
ombudsman issues the ruling under this section, the ombudsman shall
send notice of the ruling and a copy of the ruling to each party to
the complaint by certified mail, return receipt requested.
Sec. 5.060. APPEAL. (a) Except as provided by Subsection
(b), a party to a complaint resolved by the ombudsman under this
subchapter may appeal the ruling of the ombudsman to district
court.
(b) A party to a complaint resolved under this subchapter
through binding arbitration may not appeal the ruling.
(c) The appeal must be filed not later than the 60th day
after the date the ombudsman sends notice of the ruling to the
parties to the complaint under Section 5.059.
(d) Review by district court shall be de novo.
Sec. 5.061. COMPTROLLER RULES. The comptroller shall adopt
rules necessary to implement this subchapter, including rules
requiring and establishing filing and administrative fees
necessary to defray the costs to administer this subchapter.
SECTION 5. Section 6.41, Tax Code, is amended by amending
Subsections (b), (d-1), and (d-9) and adding Subsections (b-1),
(b-2), and (d-10) to read as follows:
(b) Except as provided by Subsection (b-1) or (b-2), an
appraisal review [The] board consists of three members.
(b-1) An appraisal [However, the] district board of
directors by resolution of a majority of the board's [its] members
may increase the size of the district's appraisal review board to
the number of members the board of directors considers appropriate.
(b-2) An appraisal district board of directors for a
district established in a county described by Subsection (d-1) by
resolution of a majority of the board's members shall increase the
size of the district's appraisal review board to the number of
members the board of directors considers appropriate to manage the
duties of the appraisal review board, including the duties of each
special panel established under Section 6.425.
(d-1) In a county with a population of 75,000 [120,000] or
more the members of the board are appointed by the local
administrative district judge under Subchapter D, Chapter 74,
Government Code, in the county in which the appraisal district is
established. All applications submitted to the appraisal district
or to the appraisal review board from persons seeking appointment
as a member of the appraisal review board shall be delivered to the
local administrative district judge. The appraisal district may
provide the local administrative district judge with information
regarding whether an applicant for appointment to or a member of the
board owes any delinquent ad valorem taxes to a taxing unit
participating in the appraisal district.
(d-9) In selecting individuals who are to serve as members
of the appraisal review board, the local administrative district
judge shall select an adequate number of qualified individuals to
permit the chairman of the appraisal review board to fill the
positions on each special panel established under Section 6.425.
(d-10) Upon selection of the individuals who are to serve as
members of the appraisal review board, the local administrative
district judge shall enter an appropriate order designating such
members and setting each member's respective term of office, as
provided elsewhere in this section.
SECTION 6. Section 6.412(d), Tax Code, is amended to read as
follows:
(d) A person is ineligible to serve on the appraisal review
board of an appraisal district established for a county with
[having] a population of 120,000 or more [than 100,000] if the
person:
(1) is a former member of the board of directors,
former officer, or former employee of the appraisal district;
(2) served as a member of the governing body or officer
of a taxing unit for which the appraisal district appraises
property, until the fourth anniversary of the date the person
ceased to be a member or officer; [or]
(3) appeared before the appraisal review board for
compensation during the two-year period preceding the date the
person is appointed; or
(4) served for all or part of three previous terms as a
board member or auxiliary board member under former Section 6.414
on the appraisal review board.
SECTION 7. Section 6.42, Tax Code, is amended by amending
Subsections (a) and (c) and adding Subsection (d) to read as
follows:
(a) A majority of the appraisal review board constitutes a
quorum. The appraisal review board [of directors of the appraisal
district] by resolution shall select a chairman and a secretary
from among its [the] members [of the appraisal review board]. The
appraisal review 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.
(c) Members of the board are entitled to per diem in the
amount determined [set] by the comptroller [appraisal district
budget] for each day the board meets and to reimbursement for actual
and necessary expenses incurred in the performance of board
functions [as provided by the district budget]. The comptroller may
provide that a member of a panel established under Section 6.425 is
entitled to a per diem in an amount greater than the amount of the
standard per diem determined by the comptroller. The comptroller
shall periodically pay to each member the amount to which the member
is entitled under this subsection. The comptroller shall make the
payment from funds provided by the appraisal district for which the
member's appraisal review board is established. The comptroller
shall establish separate bank accounts outside the state treasury
for the purposes of this subsection. The comptroller shall assess
the costs required to make payments under this subsection to each
appraisal district at least quarterly. The comptroller shall adopt
rules necessary to implement this subsection.
(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 8. Subchapter C, Chapter 6, Tax Code, is amended by
adding Section 6.425 to read as follows:
Sec. 6.425. SPECIAL APPRAISAL REVIEW BOARD PANELS IN
CERTAIN DISTRICTS. (a) This section applies only to the appraisal
review board of an appraisal district established for a county with
a population of 120,000 or more.
(b) The appraisal review board shall establish a separate
special panel for each of the following classifications of property
to conduct protest hearings under Chapter 41 relating to property
included in that classification:
(1) real property interests in oil, gas, or other
minerals;
(2) commercial real and personal property with an
appraised value of $50 million or more;
(3) real and personal property of utilities;
(4) industrial and manufacturing real and personal
property; and
(5) multifamily residential real property.
(c) The chairman of the appraisal review board may establish
additional special panels described by this section to conduct
protest hearings relating to property included in a classification
described by Subsection (b) if the chairman determines that
additional panels are necessary.
(d) Each special panel described by this section consists of
three members of the appraisal review board appointed by the
chairman of the board.
(e) To be eligible to be appointed to a special panel
described by this section, a member of the appraisal review board
must:
(1) hold a juris doctor or equivalent degree;
(2) hold a master of business administration degree;
(3) be licensed as a certified public accountant under
Chapter 901, Occupations Code;
(4) be accredited by the American Society of
Appraisers as an accredited senior appraiser;
(5) possess an MAI professional designation from the
Appraisal Institute;
(6) possess a Certified Assessment Evaluator (CAE)
professional designation from the International Association of
Assessing Officers; or
(7) have at least 20 years of experience in property
tax appraisal or consulting.
(f) Notwithstanding Subsection (e), the chairman of the
appraisal review board may appoint to a special panel described by
this section a member of the appraisal review board who does not
meet the qualifications prescribed by that subsection if:
(1) the number of persons appointed to the board by the
local administrative district judge who meet those qualifications
is not sufficient to fill the positions on each special panel; and
(2) the board member being appointed to the panel:
(A) holds a bachelor's degree in any field; or
(B) is licensed as a real estate broker or sales
agent under Chapter 1101, Occupations Code.
SECTION 9. Section 25.19, Tax Code, is amended by amending
Subsections (a) and (g) and adding Subsection (b-3) 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.
(b-3) This subsection applies only to an appraisal district
established for a county with a population of 120,000 or more. In
addition to the information required by Subsection (b), the chief
appraiser shall state in a notice of appraised value of property
included in a classification described by Section 6.425(b) that the
property owner has the right to have a protest relating to the
property heard by a special panel of the appraisal review board.
(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 10. 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 11. 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 12. 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 13. Sections 41.44(a), (c), and (d), 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.
(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 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 form must permit a property owner to request that
the protest be heard by a special panel established under Section
6.425 if the protest will be determined by an appraisal review board
to which that section applies and the property is included in a
classification described by that section. The 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 14. Section 41.45, Tax Code, is amended by amending
Subsection (d) and adding Subsections (d-1), (d-2), and (d-3) to
read as follows:
(d) This subsection does not apply to a special panel
established under Section 6.425. An appraisal review board
consisting of more than three members may sit in panels of not fewer
than three members to conduct protest hearings. [However, the
determination of a protest heard by a panel must be made by the
board.] If the recommendation of a panel is not accepted by the
board, the board may refer the matter for rehearing to a panel
composed of members who did not hear the original hearing or, if
there are not at least three members who did not hear the original
protest, the board may determine the protest. [Before determining
a protest or conducting a rehearing before a new panel or the board,
the board shall deliver notice of the hearing or meeting to
determine the protest in accordance with the provisions of this
subchapter.]
(d-1) An appraisal review board to which Section 6.425
applies shall sit in special panels established under that section
to conduct protest hearings. A special panel may conduct a protest
hearing relating to property only if the property is included in the
classification for which the panel was established and the property
owner has requested that the panel conduct the hearing. The board
may rehear a protest heard by a special panel if the board elects
not to accept the recommendation of the panel.
(d-2) The determination of a protest heard by a panel under
Subsection (d) or (d-1) must be made by the board.
(d-3) The board must deliver notice of a hearing or meeting
to determine a protest heard by a panel, or to rehear a protest,
under Subsection (d) or (d-1) in accordance with the provisions of
this subchapter.
SECTION 15. Section 41.66, Tax Code, is amended by amending
Subsection (k) and adding Subsection (k-1) to read as follows:
(k) This subsection does not apply to a special panel
established under Section 6.425. If an appraisal review board sits
in panels to conduct protest hearings, protests shall be randomly
assigned to panels, except that the board may consider the type of
property subject to the protest or the ground of the protest for the
purpose of using the expertise of a particular panel in hearing
protests regarding particular types of property or based on
particular grounds. If a protest is scheduled to be heard by a
particular panel, the protest may not be reassigned to another
panel without the consent of the property owner or designated
agent. If the appraisal review board has cause to reassign a
protest to another panel, a property owner or designated agent may
agree to reassignment of the protest or may request that the hearing
on the protest be postponed. The board shall postpone the hearing
on that request. A change of members of a panel because of a
conflict of interest, illness, or inability to continue
participating in hearings for the remainder of the day does not
constitute reassignment of a protest to another panel.
(k-1) On the request of a property owner, an appraisal
review board to which Section 6.425 applies shall assign a protest
relating to property included in a classification described by that
section to the special panel established to conduct protest
hearings relating to property included in that classification. If
the board has established more than one special panel to conduct
protest hearings relating to property included in a particular
classification, protests relating to property included in that
classification shall be randomly assigned to those special panels.
If a protest is scheduled to be heard by a particular special panel,
the protest may not be reassigned to another special panel without
the consent of the property owner or designated agent. If the board
has cause to reassign a protest to another special panel, a property
owner or designated agent may agree to reassignment of the protest
or may request that the hearing on the protest be postponed. The
board shall postpone the hearing on that request. A change of
members of a special panel because of a conflict of interest,
illness, or inability to continue participating in hearings for the
remainder of the day does not constitute reassignment of a protest
to another special panel.
SECTION 16. 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 17. 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, 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 $5 [$3] million or less.
SECTION 18. 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; or
(F) $1,250, 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 $3 million but not more than $5 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 19. Section 41A.06(b), Tax Code, is amended to read
as follows:
(b) To initially qualify to serve as an arbitrator under
this chapter, a person must:
(1) meet the following requirements, as applicable:
(A) be licensed as an attorney in this state; or
(B) have:
(i) completed at least 30 hours of training
in arbitration and alternative dispute resolution procedures from a
university, college, or legal or real estate trade association; and
(ii) been licensed or certified
continuously during the five years preceding the date the person
agrees to serve as an arbitrator as:
(a) a real estate broker or sales
agent [salesperson] under Chapter 1101, Occupations Code;
(b) a real estate appraiser under
Chapter 1103, Occupations Code; or
(c) a certified public accountant
under Chapter 901, Occupations Code; and
(2) agree to conduct an arbitration for a fee that is
not more than:
(A) $400, 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) $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 more than
$500,000, as determined by the order;
(C) $450, 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) $750, 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) $1,000, 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; or
(F) $1,200, 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 $3 million but not more than $5 million, as determined by the
order.
SECTION 20. 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) a determination of the appraisal review board of a
procedural issue involving a motion filed under Section 25.25 or a
protest filed under Chapter 41; or
(3) [(2)] an order of the 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 21. 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) must be brought against the appraisal
review board. A petition for review brought under Section
42.01(a)(3) [42.01(a)(2)] or 42.03 must be brought against the
comptroller. Any other petition for review under this chapter must
be brought against the appraisal district. Except as otherwise
provided by this subsection, a [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 22. Section 42.29, Tax Code, is amended to read as
follows:
Sec. 42.29. ATTORNEY'S FEES. (a) A property owner may be
awarded reasonable attorney's fees in an amount authorized by this
section if the property owner [who] prevails:
(1) in an appeal to the court under Section 42.25 or
42.26;
(2) [,] in an appeal to the court of a determination of
an appraisal review board on a motion filed under Section 25.25;
(3) in an appeal to the court of a determination of an
appraisal review board of a procedural issue involving a motion
filed under Section 25.25 or a protest filed under Chapter 41; [,]
or
(4) in an appeal to the court of a determination of an
appraisal review board of a protest of the denial in whole or in
part of an exemption under Section 11.17, 11.22, 11.23, 11.231, or
11.24 [may be awarded reasonable attorney's fees].
(b) Subject to Subsection (c), the [The] amount of the award
to a property owner may not exceed the greater of:
(1) $15,000; or
(2) 20 percent of the total amount by which the
property owner's tax liability is reduced as a result of the appeal.
(c) The [(b) Notwithstanding Subsection (a), the] amount
of an award of attorney's fees to a property owner may not exceed
the lesser of:
(1) $100,000; or
(2) the total amount by which the property owner's tax
liability is reduced as a result of the appeal.
SECTION 23. The following provisions of the Tax Code are
repealed:
(1) Section 6.414; and
(2) Section 41.44(b-1).
SECTION 24. (a) Not later than February 1, 2018, the
comptroller of public accounts shall:
(1) appoint the local property tax ombudsman as
required by Section 5.054, Tax Code, as added by this Act; and
(2) adopt rules as provided by Section 5.061, Tax
Code, as added by this Act.
(b) A property owner may not file a complaint with the
Office of Local Property Tax Ombudsman under Subchapter B, Chapter
5, Tax Code, as added by this Act, before March 1, 2018.
SECTION 25. Sections 6.41(d-1) and (d-9), Tax Code, as
amended by this Act, and Section 6.41(d-10), Tax Code, as added by
this Act, apply only to the appointment of appraisal review board
members to terms beginning on or after January 1, 2019.
SECTION 26. Section 6.412(d), Tax Code, as amended by this
Act, does not affect the eligibility of a person serving on an
appraisal review board immediately before the effective date of
this Act to continue to serve on the board for the term to which the
member was appointed.
SECTION 27. (a) Section 6.42(c), Tax Code, as amended by
this Act, applies only to the per diem and reimbursement of actual
and necessary expenses to which a member of an appraisal review
board is entitled to for appraisal review board functions that
occur on or after March 1, 2018.
(b) The comptroller of public accounts shall adopt rules as
provided by Section 6.42(c), Tax Code, as amended by this Act, not
later than February 1, 2018.
SECTION 28. Section 25.19(b-3), Tax Code, as added by this
Act, applies only to a notice of appraised value for a tax year
beginning on or after January 1, 2019. A notice of appraised value
for a tax year beginning before January 1, 2019, is governed by the
law in effect immediately before that date, and that law is
continued in effect for that purpose.
SECTION 29. 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 January 1, 2018. A
challenge under Chapter 41, Tax Code, for which a challenge
petition was filed before January 1, 2018, 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 30. Sections 41.44, 41.45, and 41.66, Tax Code, as
amended by this Act, apply only to a protest filed under Chapter 41,
Tax Code, on or after January 1, 2019. A protest filed under that
chapter before January 1, 2019, 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 31. 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 January 1, 2018. A hearing on a
protest under Chapter 41, Tax Code, that is scheduled before
January 1, 2018, 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 32. Sections 41A.01, 41A.03, and 41A.06, 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
January 1, 2018. A request for binding arbitration under Chapter
41A, Tax Code, that is filed before January 1, 2018, 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 33. Sections 42.01, 42.21, and 42.29, Tax Code, as
amended by this Act, apply only to an appeal under Chapter 42, Tax
Code, that is filed on or after the effective date of this Act. An
appeal under Chapter 42, Tax Code, that is filed before the
effective date of this Act is governed by the law in effect on the
date the appeal is filed, and the former law is continued in effect
for that purpose.
SECTION 34. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2018.
(b) The following provisions take effect September 1, 2018:
(1) Sections 6.41(b), (d-1), and (d-9), Tax Code, as
amended by this Act;
(2) Sections 6.41(b-1), (b-2), and (d-10), Tax Code,
as added by this Act;
(3) Section 6.425, Tax Code, as added by this Act;
(4) Section 25.19(b-3), Tax Code, as added by this
Act;
(5) Section 41.44(d), Tax Code, as amended by this
Act;
(6) Section 41.45(d), Tax Code, as amended by this
Act;
(7) Sections 41.45(d-1), (d-2), and (d-3), Tax Code,
as added by this Act;
(8) Section 41.66(k), Tax Code, as amended by this
Act; and
(9) Section 41.66(k-1), Tax Code, as added by this
Act.