Texas 2017 - 85th Regular

Texas House Bill HB3168 Compare Versions

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1	1	85R27337 TJB-F
2	2	By: Geren H.B. No. 3168
3	3	Substitute the following for H.B. No. 3168:
4	4	By: Murr C.S.H.B. No. 3168
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to ad valorem taxation.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 5.05, Tax Code, is amended by adding
12	12	Subsection (e) to read as follows:
13	13	(e) An appraisal review board shall comply with all
14	14	procedural requirements included in the Appraisal Review Board
15	15	Manual prepared and issued by the comptroller.
16	16	SECTION 2. Section 6.42, Tax Code, is amended by amending
17	17	Subsection (a) and adding Subsection (d) to read as follows:
18	18	(a) A majority of the appraisal review board constitutes a
19	19	quorum. The local administrative district judge under Subchapter
20	20	D, Chapter 74, Government Code, in the county in which [board of
21	21	directors of] the appraisal district is established [by resolution]
22	22	shall select a chairman and a secretary from among the members of
23	23	the appraisal review board. The judge [board of directors of the
24	24	appraisal district] is encouraged to select as chairman [of the
25	25	appraisal review board] a member of the appraisal review board, if
26	26	any, who has a background in law and property appraisal.
27	27	(d) The concurrence of a majority of the members of the
28	28	appraisal review board or a panel of the board present at a meeting
29	29	of the board or panel is sufficient for a recommendation,
30	30	determination, decision, or other action by the board or panel, and
31	31	the concurrence of more than a majority of the members of the board
32	32	or panel may not be required.
33	33	SECTION 3. Chapter 6, Tax Code, is amended by adding
34	34	Subchapter D to read as follows:
35	35	SUBCHAPTER D. LIMITED APPEAL OF NONCOMPLIANCE WITH PROCEDURAL
36	36	REQUIREMENT
37	37	Sec. 6.61. LIMITED APPEAL. (a) Notwithstanding any other
38	38	law or the Texas Rules of Civil Procedure, an affected property
39	39	owner may file a petition directly with the district court to
40	40	compel an appraisal district, chief appraiser, or appraisal review
41	41	board to comply with a procedural requirement that:
42	42	(1) is imposed on the district, chief appraiser, or
43	43	board under this title, a comptroller rule, or a rule of procedure
44	44	established by an appraisal review board under Chapter 41; and
45	45	(2) the property owner alleges has not been complied
46	46	with by the district, chief appraiser, or board.
47	47	(b) A property owner may not file a petition authorized by
48	48	this section before the 10th day after the date the property owner
49	49	provides written notice as provided by this subsection of the
50	50	owner's intent to file the petition. The notice must state whether
51	51	the appraisal district, chief appraiser, or appraisal review board
52	52	failed to comply with a procedural requirement described by
53	53	Subsection (a) and must identify the procedural requirement. The
54	54	notice must be sent by certified mail, return receipt requested,
55	55	to:
56	56	(1) the chief appraiser of the appraisal district if
57	57	the owner alleges that the chief appraiser or appraisal district
58	58	failed to comply with the requirement;
59	59	(2) except as provided by Subdivision (3), the chair
60	60	of the appraisal review board if the owner alleges that the board
61	61	failed to comply with the requirement; or
62	62	(3) the local administrative district judge if the
63	63	judge appoints the members of the appraisal review board and the
64	64	owner alleges that the board failed to comply with the requirement.
65	65	(c) A suit brought under this section is for the limited
66	66	purpose of determining whether the defendant failed to comply with
67	67	the procedural requirement that is the subject of the suit. The suit
68	68	may not address the merits of a motion filed under Section 25.25 or
69	69	a protest filed under Chapter 41.
70	70	(d) Neither party may conduct discovery in a suit brought
71	71	under this section.
72	72	(e) A property owner may set the matter that is the subject
73	73	of the suit for an evidentiary hearing in accordance with the notice
74	74	requirements provided by Rule 21, Texas Rules of Civil Procedure. A
75	75	property owner may not set the matter for a hearing under this
76	76	subsection until the petition initiating the suit has been served
77	77	on the defendant.
78	78	(f) At the end of a hearing under Subsection (e), the court
79	79	must determine the merits of the suit. If the court determines that
80	80	the defendant failed to comply with a procedural requirement
81	81	imposed on the defendant, the court:
82	82	(1) shall order the defendant to comply with the
83	83	procedural requirement;
84	84	(2) shall enter any order necessary to preserve rights
85	85	protected by, and impose duties required by, the law; and
86	86	(3) may award court costs and reasonable attorney's
87	87	fees to the property owner.
88	88	(g) An order entered under Subsection (f) is final and may
89	89	not be appealed.
90	90	SECTION 4. Section 21.10(b), Tax Code, is amended to read as
91	91	follows:
92	92	(b) Except as otherwise provided by this subsection, if [If]
93	93	the application is approved, the property owner is liable to each
94	94	taxing unit for a penalty in an amount equal to 10 percent of the
95	95	[difference between the] amount of tax imposed by the taxing unit on
96	96	the property [without the allocation and the amount of tax imposed
97	97	on the property] with the allocation. A property owner is not liable
98	98	for the penalty prescribed by this subsection if the chief
99	99	appraiser who received the owner's allocation application
100	100	determines that the owner:
101	101	(1) exercised reasonable diligence in attempting to
102	102	file the application before the deadline imposed by Section 21.09;
103	103	or
104	104	(2) substantially complied with the requirements of
105	105	that section.
106	106	SECTION 5. Sections 25.19(a) and (g), Tax Code, are amended
107	107	to read as follows:
108	108	(a) By April 1 or as soon thereafter as practicable [if the
109	109	property is a single-family residence that qualifies for an
110	110	exemption under Section 11.13, or by May 1 or as soon thereafter as
111	111	practicable in connection with any other property], the chief
112	112	appraiser shall deliver a clear and understandable written notice
113	113	to a property owner of the appraised value of the property owner's
114	114	property if:
115	115	(1) the appraised value of the property is greater
116	116	than it was in the preceding year;
117	117	(2) the appraised value of the property is greater
118	118	than the value rendered by the property owner;
119	119	(3) the property was not on the appraisal roll in the
120	120	preceding year; or
121	121	(4) an exemption or partial exemption approved for the
122	122	property for the preceding year was canceled or reduced for the
123	123	current year.
124	124	(g) By April 1 or as soon thereafter as practicable [if the
125	125	property is a single-family residence that qualifies for an
126	126	exemption under Section 11.13, or by May 1 or as soon thereafter as
127	127	practicable in connection with any other property], the chief
128	128	appraiser shall deliver a written notice to the owner of each
129	129	property not included in a notice required to be delivered under
130	130	Subsection (a), if the property was reappraised in the current tax
131	131	year, if the ownership of the property changed during the preceding
132	132	year, or if the property owner or the agent of a property owner
133	133	authorized under Section 1.111 makes a written request for the
134	134	notice. The chief appraiser shall separate real from personal
135	135	property and include in the notice for each property:
136	136	(1) the appraised value of the property in the
137	137	preceding year;
138	138	(2) the appraised value of the property for the
139	139	current year and the kind of each partial exemption, if any,
140	140	approved for the current year;
141	141	(3) a detailed explanation of the time and procedure
142	142	for protesting the value; and
143	143	(4) the date and place the appraisal review board will
144	144	begin hearing protests.
145	145	SECTION 6. Section 25.25(d), Tax Code, is amended to read as
146	146	follows:
147	147	(d) At any time prior to the date the taxes become
148	148	delinquent, a property owner or the chief appraiser may file a
149	149	motion with the appraisal review board to change the appraisal roll
150	150	to correct an error, including an error regarding the unequal
151	151	appraisal or excessive market value of a property, that resulted in
152	152	an incorrect appraised value for the owner's property. However,
153	153	the error may not be corrected unless it resulted in an appraised
154	154	value that exceeds by more than one-third the correct appraised
155	155	value. If the appraisal roll is changed under this subsection, the
156	156	property owner must pay to each affected taxing unit a
157	157	late-correction penalty equal to 10 percent of the amount of taxes
158	158	as calculated on the basis of the corrected appraised value.
159	159	Payment of the late-correction penalty is secured by the lien that
160	160	attaches to the property under Section 32.01 and is subject to
161	161	enforced collection under Chapter 33. The roll may not be changed
162	162	under this subsection if:
163	163	(1) the property was the subject of a protest brought
164	164	by the property owner under Chapter 41, a hearing on the protest was
165	165	conducted in which the property owner offered evidence or argument,
166	166	and the appraisal review board made a determination of the protest
167	167	on the merits; or
168	168	(2) the appraised value of the property was
169	169	established as a result of a written agreement between the property
170	170	owner or the owner's agent and the appraisal district.
171	171	SECTION 7. Section 41.03(a), Tax Code, is amended to read as
172	172	follows:
173	173	(a) A taxing unit is entitled to challenge before the
174	174	appraisal review board:
175	175	(1) [the level of appraisals of any category of
176	176	property in the district or in any territory in the district, but
177	177	not the appraised value of a single taxpayer's property;
178	178	[(2)] an exclusion of property from the appraisal
179	179	records;
180	180	(2) [(3)] a grant in whole or in part of a partial
181	181	exemption;
182	182	(3) [(4)] a determination that land qualifies for
183	183	appraisal as provided by Subchapter C, D, E, or H, Chapter 23; or
184	184	(4) [(5)] failure to identify the taxing unit as one in
185	185	which a particular property is taxable.
186	186	SECTION 8. Section 41.11(a), Tax Code, is amended to read as
187	187	follows:
188	188	(a) Not later than the date the appraisal review board
189	189	approves the appraisal records as provided by Section 41.12, the
190	190	secretary of the board shall deliver written notice to a property
191	191	owner of any change in the records that is ordered by the board as
192	192	provided by this subchapter and that will result in an increase in
193	193	the tax liability of the property owner. An owner who receives a
194	194	notice as provided by this section shall be entitled to protest such
195	195	action as provided by Section 41.44(a)(2) [41.44(a)(3)].
196	196	SECTION 9. Sections 41.44(a) and (c), Tax Code, are amended
197	197	to read as follows:
198	198	(a) Except as provided by Subsections (b), [(b-1),] (c),
199	199	(c-1), and (c-2), to be entitled to a hearing and determination of a
200	200	protest, the property owner initiating the protest must file a
201	201	written notice of the protest with the appraisal review board
202	202	having authority to hear the matter protested:
203	203	(1) before June [May] 1 or not later than the 30th day
204	204	after the date that notice to the property owner was delivered to
205	205	the property owner as provided by Section 25.19, [if the property is
206	206	a single-family residence that qualifies for an exemption under
207	207	Section 11.13,] whichever is later;
208	208	(2) [before June 1 or not later than the 30th day after
209	209	the date that notice was delivered to the property owner as provided
210	210	by Section 25.19 in connection with any other property, whichever
211	211	is later;
212	212	[(3)] in the case of a protest of a change in the
213	213	appraisal records ordered as provided by Subchapter A of this
214	214	chapter or by Chapter 25, not later than the 30th day after the date
215	215	notice of the change is delivered to the property owner;
216	216	(3) [(4)] in the case of a determination that a change
217	217	in the use of land appraised under Subchapter C, D, E, or H, Chapter
218	218	23, has occurred, not later than the 30th day after the date the
219	219	notice of the determination is delivered to the property owner; or
220	220	(4) [(5)] in the case of a determination of
221	221	eligibility for a refund under Section 23.1243, not later than the
222	222	30th day after the date the notice of the determination is delivered
223	223	to the property owner.
224	224	(c) A property owner who files notice of a protest
225	225	authorized by Section 41.411 is entitled to a hearing and
226	226	determination of the protest if the property owner files the notice
227	227	prior to the date the taxes on the property to which the notice
228	228	applies become delinquent. An owner of land who files a notice of
229	229	protest under Subsection (a)(3) [(a)(4)] is entitled to a hearing
230	230	and determination of the protest without regard to whether the
231	231	appraisal records are approved.
232	232	SECTION 10. Section 41.71, Tax Code, is amended to read as
233	233	follows:
234	234	Sec. 41.71. EVENING AND WEEKEND HEARINGS. (a) An appraisal
235	235	review board by rule shall provide for hearings on protests [in the
236	236	evening or] on a Saturday or after 5 p.m. on a weekday [Sunday].
237	237	(b) The board may not schedule:
238	238	(1) the first hearing on a protest held on a weekday
239	239	evening to begin after 7 p.m.; or
240	240	(2) a hearing on a protest on a Sunday.
241	241	SECTION 11. Section 41A.01, Tax Code, is amended to read as
242	242	follows:
243	243	Sec. 41A.01. RIGHT OF APPEAL BY PROPERTY OWNER. As an
244	244	alternative to filing an appeal under Section 42.01, a property
245	245	owner is entitled to appeal through binding arbitration under this
246	246	chapter an appraisal review board order determining a protest filed
247	247	under Section 41.41(a)(1) or (2), or a motion filed under Section
248	248	25.25(d), concerning the appraised or market value of property if:
249	249	(1) the property qualifies as the owner's residence
250	250	homestead under Section 11.13; or
251	251	(2) the appraised or market value, as applicable, of
252	252	the property as determined by the order is $3 million or less.
253	253	SECTION 12. Sections 41A.03(a) and (a-1), Tax Code, are
254	254	amended to read as follows:
255	255	(a) To appeal an appraisal review board order under this
256	256	chapter, a property owner must file with the appraisal district not
257	257	later than the 60th [45th] day after the date the property owner
258	258	receives notice of the order:
259	259	(1) a completed request for binding arbitration under
260	260	this chapter in the form prescribed by Section 41A.04; and
261	261	(2) an arbitration deposit made payable to the
262	262	comptroller in the amount of:
263	263	(A) $450, if the property qualifies as the
264	264	owner's residence homestead under Section 11.13 and the appraised
265	265	or market value, as applicable, of the property is $500,000 or less,
266	266	as determined by the order;
267	267	(B) $500, if the property qualifies as the
268	268	owner's residence homestead under Section 11.13 and the appraised
269	269	or market value, as applicable, of the property is more than
270	270	$500,000, as determined by the order;
271	271	(C) $500, if the property does not qualify as the
272	272	owner's residence homestead under Section 11.13 and the appraised
273	273	or market value, as applicable, of the property is $1 million or
274	274	less, as determined by the order;
275	275	(D) $800, if the property does not qualify as the
276	276	owner's residence homestead under Section 11.13 and the appraised
277	277	or market value, as applicable, of the property is more than $1
278	278	million but not more than $2 million, as determined by the order; or
279	279	(E) $1,050, if the property does not qualify as
280	280	the owner's residence homestead under Section 11.13 and the
281	281	appraised or market value, as applicable, of the property is more
282	282	than $2 million but not more than $3 million, as determined by the
283	283	order.
284	284	(a-1) If a property owner requests binding arbitration
285	285	under this chapter to appeal appraisal review board orders
286	286	involving two or more tracts of land that are contiguous to one
287	287	another, a single arbitration deposit in the amount provided by
288	288	Subsection (a)(2) is sufficient to satisfy the requirement of
289	289	Subsection (a)(2). For purposes of this subsection, a tract of land
290	290	is considered to be contiguous with another tract of land if the
291	291	tracts are divided only by a road, railroad track, river, or stream.
292	292	SECTION 13. The following provisions of the Tax Code are
293	293	repealed:
294	294	(1) Section 6.414; and
295	295	(2) Section 41.44(b-1).
296	296	SECTION 14. Subchapter D, Chapter 6, Tax Code, as added by
297	297	this Act, applies only to a procedural requirement as described by
298	298	Section 6.61(a) of that code that a property owner alleges was not
299	299	complied with on or after the effective date of Section 6.61 of that
300	300	chapter as provided by this Act.
301	301	SECTION 15. Section 21.10(b), Tax Code, as amended by this
302	302	Act, applies only to an allocation application that is approved by
303	303	the chief appraiser of an appraisal district on or after the
304	304	effective date of that subsection as provided by this Act. An
305	305	allocation application that is approved by the chief appraiser
306	306	before the effective date of that subsection is governed by the law
307	307	in effect on the date the application is approved, and the former
308	308	law is continued in effect for that purpose.
309	309	SECTION 16. Section 41.03(a), Tax Code, as amended by this
310	310	Act, applies only to a challenge under Chapter 41, Tax Code, for
311	311	which a challenge petition is filed on or after the effective date
312	312	of that subsection as provided by this Act. A challenge under
313	313	Chapter 41, Tax Code, for which a challenge petition was filed
314	314	before the effective date of that subsection is governed by the law
315	315	in effect on the date the challenge petition was filed, and the
316	316	former law is continued in effect for that purpose.
317	317	SECTION 17. Section 41.44, Tax Code, as amended by this Act,
318	318	applies only to a protest filed under Chapter 41, Tax Code, on or
319	319	after the effective date of that section as provided by this Act. A
320	320	protest filed under that chapter before the effective date of that
321	321	section is governed by the law in effect on the date the protest was
322	322	filed, and the former law is continued in effect for that purpose.
323	323	SECTION 18. Section 41.71, Tax Code, as amended by this Act,
324	324	applies only to a hearing on a protest under Chapter 41, Tax Code,
325	325	that is scheduled on or after the effective date of that section as
326	326	provided by this Act. A hearing on a protest under Chapter 41, Tax
327	327	Code, that is scheduled before the effective date of that section is
328	328	governed by the law in effect on the date the hearing was scheduled,
329	329	and that law is continued in effect for that purpose.
330	330	SECTION 19. Sections 41A.01 and 41A.03, Tax Code, as
331	331	amended by this Act, apply only to a request for binding arbitration
332	332	under Chapter 41A, Tax Code, that is filed on or after the effective
333	333	date of those sections as provided by this Act. A request for
334	334	binding arbitration under Chapter 41A, Tax Code, that is filed
335	335	before the effective date of those sections is governed by the law
336	336	in effect on the date the request is filed, and the former law is
337	337	continued in effect for that purpose.
338	338	SECTION 20. (a) Except as provided by Subsections (b) and
339	339	(c) of this section, this Act takes effect January 1, 2018.
340	340	(b) The following provisions take effect immediately if
341	341	this Act receives a vote of two-thirds of all the members elected to
342	342	each house, as provided by Section 39, Article III, Texas
343	343	Constitution, or September 1, 2017, if this Act does not receive the
344	344	vote necessary for immediate effect:
345	345	(1) Section 5.05(e), Tax Code, as added by this Act;
346	346	(2) Section 6.61, Tax Code, as added by this Act;
347	347	(3) Section 21.10(b), Tax Code, as amended by this
348	348	Act;
349	349	(4) Section 25.25(d), Tax Code, as amended by this
350	350	Act; and
351	351	(5) Section 41.03(a), Tax Code, as amended by this
352	352	Act.
353	353	(c) The following provisions take effect immediately if
354	354	this Act receives a vote of two-thirds of all the members elected to
355	355	each house, as provided by Section 39, Article III, Texas
356	356	Constitution, or January 1, 2018, if this Act does not receive the
357	357	vote necessary for immediate effect:
358	358	(1) Section 41A.01, Tax Code, as amended by this Act;
359	359	and
360	360	(2) Sections 41A.03(a) and (a-1), Tax Code, as amended
361	361	by this Act.