Texas 2017 - 85th Regular

Texas House Bill HB934 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R3415 CJC/TJB-D
2	2	By: Zerwas H.B. No. 934
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to ad valorem taxation.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 5, Tax Code, is amended by adding
10	10	Sections 5.01 and 5.02 to read as follows:
11	11	Sec. 5.01. PROPERTY TAX ADMINISTRATION ADVISORY BOARD. (a)
12	12	The comptroller shall appoint the property tax administration
13	13	advisory board to advise the comptroller with respect to the
14	14	division or divisions within the office of the comptroller with
15	15	primary responsibility for state administration of property
16	16	taxation and state oversight of appraisal districts and local tax
17	17	offices. The advisory board shall make recommendations to the
18	18	comptroller regarding:
19	19	(1) proposed property tax rules and prescribed
20	20	procedures and forms;
21	21	(2) minimum standards for the administration and
22	22	operation of an appraisal district;
23	23	(3) minimum standards for the administration and
24	24	operation of a local tax office;
25	25	(4) appointment of the director, managers, and other
26	26	executive staff of the division or divisions within the office of
27	27	the comptroller with primary responsibility for state
28	28	administration of property taxation and state oversight of
29	29	appraisal districts and local tax offices;
30	30	(5) property tax publications, guidelines, and
31	31	communications;
32	32	(6) property value studies for school districts and
33	33	ratio studies for appraisal districts;
34	34	(7) reviews of appraisal districts and appraisal
35	35	review boards;
36	36	(8) computer hardware and software needs for:
37	37	(A) the division or divisions within the office
38	38	of the comptroller with primary responsibility for state
39	39	administration of property taxation and state oversight of
40	40	appraisal districts and local tax offices;
41	41	(B) appraisal districts; and
42	42	(C) local tax offices; and
43	43	(9) other property tax operational matters.
44	44	(b) The advisory board is composed of six members appointed
45	45	by the comptroller with the advice of the governor, lieutenant
46	46	governor, and speaker of the house of representatives. Board
47	47	members serve at the pleasure of the comptroller.
48	48	(c) The members of the advisory board must have knowledge of
49	49	or experience in property tax administration, appraisal, or law.
50	50	(d) Appointments to the advisory board shall be made without
51	51	regard to the race, color, disability, gender, religion, age, or
52	52	national origin of appointees.
53	53	(e) Each member of the advisory board must be a resident of
54	54	this state.
55	55	(f) An elected official may not serve on the advisory board.
56	56	(g) The advisory board is governed exclusively by this
57	57	chapter.
58	58	(h) The comptroller's staff shall provide assistance to the
59	59	advisory board in performing its duties.
60	60	Sec. 5.02. RESTRICTIONS ON ADVISORY BOARD MEMBERSHIP. A
61	61	person is not eligible to serve on the property tax administration
62	62	advisory board if the person or the person's spouse:
63	63	(1) is employed by or contracts with the comptroller,
64	64	an appraisal district, or a taxing unit;
65	65	(2) owns or controls, directly or indirectly, more
66	66	than a 10 percent interest in a business entity or other
67	67	organization receiving money from the comptroller, an appraisal
68	68	district, or a taxing unit; or
69	69	(3) receives money from a business entity or other
70	70	organization receiving money from the comptroller, an appraisal
71	71	district, or a taxing unit in an amount that exceeds five percent of
72	72	the person's gross income for the preceding calendar year.
73	73	SECTION 2. Section 5.05, Tax Code, is amended by adding
74	74	Subsection (c-1) to read as follows:
75	75	(c-1) An appraisal district shall appraise property in
76	76	accordance with any appraisal manuals prepared and issued by the
77	77	comptroller under this section.
78	78	SECTION 3. Sections 5.102(a) and (c), Tax Code, are amended
79	79	to read as follows:
80	80	(a) At least once every two years, the comptroller shall
81	81	review the governance of each appraisal district, taxpayer
82	82	assistance provided, and the operating and appraisal standards,
83	83	procedures, and methodology used by each appraisal district, to
84	84	determine compliance with generally accepted standards,
85	85	procedures, and methodology, including compliance with standards,
86	86	procedures, and methodology prescribed by appraisal manuals
87	87	prepared and issued by the comptroller. After consultation with
88	88	the property tax administration advisory board [committee created
89	89	under Section 403.302, Government Code], the comptroller by rule
90	90	may establish procedures and standards for conducting and scoring
91	91	the review.
92	92	(c) At the conclusion of the review, the comptroller shall,
93	93	in writing, notify the appraisal district concerning its
94	94	performance in the review. If the review results in a finding that
95	95	an appraisal district is not in compliance with generally accepted
96	96	standards, procedures, and methodology, including compliance with
97	97	standards, procedures, and methodology prescribed by appraisal
98	98	manuals prepared and issued by the comptroller, the comptroller
99	99	shall deliver a report that details the comptroller's findings and
100	100	recommendations for improvement to:
101	101	(1) the appraisal district's chief appraiser and board
102	102	of directors; and
103	103	(2) the superintendent and board of trustees of each
104	104	school district participating in the appraisal district.
105	105	SECTION 4. Section 5.13(d), Tax Code, is amended to read as
106	106	follows:
107	107	(d) In conducting a general audit, the comptroller shall
108	108	consider and report on:
109	109	(1) the extent to which the district complies with
110	110	applicable law or generally accepted standards of appraisal or
111	111	other relevant practice, including appraisal standards and
112	112	practices prescribed by appraisal manuals prepared and issued by
113	113	the comptroller;
114	114	(2) the uniformity and level of appraisal of major
115	115	kinds of property and the cause of any significant deviations from
116	116	ideal uniformity and equality of appraisal of major kinds of
117	117	property;
118	118	(3) duplication of effort and efficiency of operation;
119	119	(4) the general efficiency, quality of service, and
120	120	qualification of appraisal district personnel; and
121	121	(5) except as otherwise provided by Subsection (b) [of
122	122	this section], any other matter included in the request for the
123	123	audit.
124	124	SECTION 5. Section 6.03(a), Tax Code, is amended to read as
125	125	follows:
126	126	(a) The appraisal district is governed by a board of
127	127	directors. Five directors are appointed by the taxing units that
128	128	participate in the district as provided by this section. If the
129	129	county assessor-collector is not appointed to the board, the county
130	130	assessor-collector serves as a nonvoting director. The county
131	131	assessor-collector is ineligible to serve if the board enters into
132	132	a contract under Section 6.05(b) or if the commissioners court of
133	133	the county enters into a contract under Section 6.24(b). To be
134	134	eligible to serve on the board of directors, an individual other
135	135	than a county assessor-collector serving as a nonvoting director
136	136	must:
137	137	(1) be a resident of the district;
138	138	(2) [and must] have resided in the district for at
139	139	least two years immediately preceding the date the individual takes
140	140	office; and
141	141	(3) be an elected county officer or an elected
142	142	official of a political subdivision all or part of the territory of
143	143	which is located in the county. [An individual who is otherwise
144	144	eligible to serve on the board is not ineligible because of
145	145	membership on the governing body of a taxing unit. An employee of a
146	146	taxing unit that participates in the district is not eligible to
147	147	serve on the board unless the individual is also a member of the
148	148	governing body or an elected official of a taxing unit that
149	149	participates in the district.]
150	150	SECTION 6. Section 6.41, Tax Code, is amended by amending
151	151	Subsections (b) and (d-9) and adding Subsections (b-1), (b-2), and
152	152	(d-10) to read as follows:
153	153	(b) Except as provided by Subsection (b-1) or (b-2), an
154	154	appraisal review [The] board consists of three members.
155	155	(b-1) An appraisal [However, the] district board of
156	156	directors by resolution of a majority of the board's [its] members
157	157	may increase the size of the district's appraisal review board to
158	158	the number of members the board of directors considers appropriate.
159	159	(b-2) An appraisal district board of directors for a
160	160	district established in a county described by Subsection (d-1) by
161	161	resolution of a majority of the board's members shall increase the
162	162	size of the district's appraisal review board to the number of
163	163	members the board of directors considers appropriate to manage the
164	164	duties of the appraisal review board, including the duties of each
165	165	special panel established under Section 6.425.
166	166	(d-9) In selecting individuals who are to serve as members
167	167	of the appraisal review board, the local administrative district
168	168	judge shall select an adequate number of qualified individuals to
169	169	permit the chairman of the appraisal review board to fill the
170	170	positions on each special panel established under Section 6.425.
171	171	(d-10) Upon selection of the individuals who are to serve as
172	172	members of the appraisal review board, the local administrative
173	173	district judge shall enter an appropriate order designating such
174	174	members and setting each member's respective term of office, as
175	175	provided elsewhere in this section.
176	176	SECTION 7. Section 6.414(d), Tax Code, is amended to read as
177	177	follows:
178	178	(d) An auxiliary board member may hear taxpayer protests
179	179	before the appraisal review board. An auxiliary board member may
180	180	not hear taxpayer protests before a special panel established under
181	181	Section 6.425 unless the member is eligible to be appointed to the
182	182	special panel. If one or more auxiliary board members sit on a panel
183	183	established under Section 6.425 or 41.45 to conduct a protest
184	184	hearing, the number of regular appraisal review board members
185	185	required by that section to constitute the panel is reduced by the
186	186	number of auxiliary board members sitting. An auxiliary board
187	187	member sitting on a panel is considered a regular board member for
188	188	all purposes related to the conduct of the hearing.
189	189	SECTION 8. Section 6.42, Tax Code, is amended by adding
190	190	Subsection (d) to read as follows:
191	191	(d) The concurrence of a majority of the members of the
192	192	appraisal review board or a panel of the board present at a meeting
193	193	of the board or panel is sufficient for a recommendation,
194	194	determination, decision, or other action by the board or panel, and
195	195	the concurrence of more than a majority of the members of the board
196	196	or panel may not be required.
197	197	SECTION 9. Subchapter C, Chapter 6, Tax Code, is amended by
198	198	adding Section 6.425 to read as follows:
199	199	Sec. 6.425. SPECIAL APPRAISAL REVIEW BOARD PANELS IN
200	200	CERTAIN DISTRICTS. (a) This section applies only to the appraisal
201	201	review board for an appraisal district described by Section
202	202	6.41(b-2).
203	203	(b) The appraisal review board shall establish a separate
204	204	special panel for each of the following classifications of property
205	205	to conduct protest hearings under Chapter 41 relating to property
206	206	included in that classification:
207	207	(1) commercial real and personal property;
208	208	(2) real and personal property of utilities;
209	209	(3) industrial and manufacturing real and personal
210	210	property; and
211	211	(4) multifamily residential real property.
212	212	(c) The chairman of the appraisal review board may establish
213	213	additional special panels described by this section to conduct
214	214	protest hearings relating to property included in a classification
215	215	described by Subsection (b) if the chairman determines that
216	216	additional panels are necessary.
217	217	(d) Each special panel described by this section consists of
218	218	three members of the appraisal review board appointed by the
219	219	chairman of the board.
220	220	(e) To be eligible to be appointed to a special panel
221	221	described by this section, a member of the appraisal review board
222	222	must:
223	223	(1) hold a juris doctor or equivalent degree;
224	224	(2) hold a master of business administration degree;
225	225	(3) be licensed as a certified public accountant under
226	226	Chapter 901, Occupations Code;
227	227	(4) be accredited by the American Society of
228	228	Appraisers as an accredited senior appraiser;
229	229	(5) possess an MAI professional designation from the
230	230	Appraisal Institute;
231	231	(6) possess a Certified Assessment Evaluator (CAE)
232	232	professional designation from the International Association of
233	233	Assessing Officers; or
234	234	(7) have at least 20 years of experience in property
235	235	tax appraisal or consulting.
236	236	(f) Notwithstanding Subsection (e), the chairman of the
237	237	appraisal review board may appoint to a special panel described by
238	238	this section a member of the appraisal review board who does not
239	239	meet the qualifications prescribed by that subsection if:
240	240	(1) the number of persons appointed to the board by the
241	241	local administrative district judge who meet those qualifications
242	242	is not sufficient to fill the positions on each special panel; and
243	243	(2) the board member being appointed to the panel:
244	244	(A) holds a bachelor's degree in any field; or
245	245	(B) is licensed as a real estate broker or sales
246	246	agent under Chapter 1101, Occupations Code.
247	247	SECTION 10. Section 23.01(b), Tax Code, is amended to read
248	248	as follows:
249	249	(b) The market value of property shall be determined by the
250	250	application of generally accepted appraisal methods and
251	251	techniques, including appraisal methods and techniques prescribed
252	252	by appraisal manuals prepared and issued by the comptroller. If
253	253	the appraisal district determines the appraised value of a property
254	254	using mass appraisal standards, the mass appraisal standards must
255	255	comply with the Uniform Standards of Professional Appraisal
256	256	Practice. The same or similar appraisal methods and techniques
257	257	shall be used in appraising the same or similar kinds of
258	258	property. However, each property shall be appraised based upon the
259	259	individual characteristics that affect the property's market
260	260	value, and all available evidence that is specific to the value of
261	261	the property shall be taken into account in determining the
262	262	property's market value.
263	263	SECTION 11. Section 25.19, Tax Code, is amended by adding
264	264	Subsection (b-3) to read as follows:
265	265	(b-3) This subsection applies only to an appraisal district
266	266	described by Section 6.41(b-2). In addition to the information
267	267	required by Subsection (b), the chief appraiser shall state in a
268	268	notice of appraised value of property included in a classification
269	269	described by Section 6.425(b) that the property owner has the right
270	270	to have a protest relating to the property heard by a special panel
271	271	of the appraisal review board.
272	272	SECTION 12. Section 41.44(d), Tax Code, is amended to read
273	273	as follows:
274	274	(d) A notice of protest is sufficient if it identifies the
275	275	protesting property owner, including a person claiming an ownership
276	276	interest in the property even if that person is not listed on the
277	277	appraisal records as an owner of the property, identifies the
278	278	property that is the subject of the protest, and indicates apparent
279	279	dissatisfaction with some determination of the appraisal office.
280	280	The notice need not be on an official form, but the comptroller
281	281	shall prescribe a form that provides for more detail about the
282	282	nature of the protest. The form must permit a property owner to
283	283	include each property in the appraisal district that is the subject
284	284	of a protest. The form must permit a property owner to request that
285	285	the protest be heard by a special panel established under Section
286	286	6.425 if the protest will be determined by an appraisal review board
287	287	to which that section applies and the property is included in a
288	288	classification described by that section. The comptroller, each
289	289	appraisal office, and each appraisal review board shall make the
290	290	forms readily available and deliver one to a property owner on
291	291	request.
292	292	SECTION 13. Section 41.45, Tax Code, is amended by amending
293	293	Subsection (d) and adding Subsections (d-1), (d-2), and (d-3) to
294	294	read as follows:
295	295	(d) This subsection does not apply to a special panel
296	296	established under Section 6.425. An appraisal review board
297	297	consisting of more than three members may sit in panels of not fewer
298	298	than three members to conduct protest hearings. [However, the
299	299	determination of a protest heard by a panel must be made by the
300	300	board.] If the recommendation of a panel is not accepted by the
301	301	board, the board may refer the matter for rehearing to a panel
302	302	composed of members who did not hear the original hearing or, if
303	303	there are not at least three members who did not hear the original
304	304	protest, the board may determine the protest. [Before determining a
305	305	protest or conducting a rehearing before a new panel or the board,
306	306	the board shall deliver notice of the hearing or meeting to
307	307	determine the protest in accordance with the provisions of this
308	308	subchapter.]
309	309	(d-1) An appraisal review board to which Section 6.425
310	310	applies shall sit in special panels established under that section
311	311	to conduct protest hearings. A special panel may conduct a protest
312	312	hearing relating to property only if the property is included in the
313	313	classification for which the panel was established and the property
314	314	owner has requested that the panel conduct the hearing. The board
315	315	may rehear a protest heard by a special panel if the board elects
316	316	not to accept the recommendation of the panel.
317	317	(d-2) The determination of a protest heard by a panel under
318	318	Subsection (d) or (d-1) must be made by the board.
319	319	(d-3) The board must deliver notice of a hearing or meeting
320	320	to determine a protest heard by a panel, or to rehear a protest,
321	321	under Subsection (d) or (d-1) in accordance with the provisions of
322	322	this subchapter.
323	323	SECTION 14. Section 41.66, Tax Code, is amended by amending
324	324	Subsection (k) and adding Subsection (k-1) to read as follows:
325	325	(k) This subsection does not apply to a special panel
326	326	established under Section 6.425. If an appraisal review board sits
327	327	in panels to conduct protest hearings, protests shall be randomly
328	328	assigned to panels, except that the board may consider the type of
329	329	property subject to the protest or the ground of the protest for the
330	330	purpose of using the expertise of a particular panel in hearing
331	331	protests regarding particular types of property or based on
332	332	particular grounds. If a protest is scheduled to be heard by a
333	333	particular panel, the protest may not be reassigned to another
334	334	panel without the consent of the property owner or designated
335	335	agent. If the appraisal review board has cause to reassign a
336	336	protest to another panel, a property owner or designated agent may
337	337	agree to reassignment of the protest or may request that the hearing
338	338	on the protest be postponed. The board shall postpone the hearing
339	339	on that request. A change of members of a panel because of a
340	340	conflict of interest, illness, or inability to continue
341	341	participating in hearings for the remainder of the day does not
342	342	constitute reassignment of a protest to another panel.
343	343	(k-1) On the request of a property owner, an appraisal
344	344	review board to which Section 6.425 applies shall assign a protest
345	345	relating to property included in a classification described by that
346	346	section to the special panel established to conduct protest
347	347	hearings relating to property included in that classification. If
348	348	the board has established more than one special panel to conduct
349	349	protest hearings relating to property included in a particular
350	350	classification, protests relating to property included in that
351	351	classification shall be randomly assigned to those special panels.
352	352	If a protest is scheduled to be heard by a particular special panel,
353	353	the protest may not be reassigned to another special panel without
354	354	the consent of the property owner or designated agent. If the board
355	355	has cause to reassign a protest to another special panel, a property
356	356	owner or designated agent may agree to reassignment of the protest
357	357	or may request that the hearing on the protest be postponed. The
358	358	board shall postpone the hearing on that request. A change of
359	359	members of a special panel because of a conflict of interest,
360	360	illness, or inability to continue participating in hearings for the
361	361	remainder of the day does not constitute reassignment of a protest
362	362	to another special panel.
363	363	SECTION 15. Section 403.302(o), Government Code, is amended
364	364	to read as follows:
365	365	(o) The comptroller shall adopt rules governing the conduct
366	366	of the study after consultation with the comptroller's property tax
367	367	administration advisory board [Comptroller's Property Value Study
368	368	Advisory Committee].
369	369	SECTION 16. Sections 403.302(m-1) and (n), Government Code,
370	370	are repealed.
371	371	SECTION 17. Sections 5.05, 5.102, 5.13, and 23.01, Tax
372	372	Code, as amended by this Act, apply only to the appraisal of
373	373	property for ad valorem tax purposes for a tax year beginning on or
374	374	after January 1, 2018.
375	375	SECTION 18. Section 6.03(a), Tax Code, as amended by this
376	376	Act, does not affect the right of a person serving on the board of
377	377	directors of an appraisal district on January 1, 2018, to complete
378	378	the person's term on the board.
379	379	SECTION 19. Section 6.41(d-9), Tax Code, as amended by this
380	380	Act, and Section 6.41(d-10), Tax Code, as added by this Act, apply
381	381	only to the appointment of appraisal review board members to terms
382	382	beginning on or after January 1, 2019.
383	383	SECTION 20. Section 6.42(d), Tax Code, as added by this Act,
384	384	applies only to a recommendation, determination, decision, or other
385	385	action by an appraisal review board or a panel of such a board on or
386	386	after January 1, 2018. A recommendation, determination, decision,
387	387	or other action by an appraisal review board or a panel of such a
388	388	board before January 1, 2018, is governed by the law as it existed
389	389	immediately before that date, and that law is continued in effect
390	390	for that purpose.
391	391	SECTION 21. Section 25.19(b-3), Tax Code, as added by this
392	392	Act, applies only to a notice of appraised value for a tax year
393	393	beginning on or after January 1, 2019. A notice of appraised value
394	394	for a tax year beginning before January 1, 2019, is governed by the
395	395	law in effect immediately before that date, and that law is
396	396	continued in effect for that purpose.
397	397	SECTION 22. Sections 41.45 and 41.66, Tax Code, as amended
398	398	by this Act, apply only to a protest filed under Chapter 41, Tax
399	399	Code, on or after January 1, 2019. A protest filed under that
400	400	chapter before January 1, 2019, is governed by the law in effect on
401	401	the date the protest was filed, and the former law is continued in
402	402	effect for that purpose.
403	403	SECTION 23. (a) Except as provided by Subsection (b) of
404	404	this section, this Act takes effect January 1, 2018.
405	405	(b) The following provisions take effect September 1, 2018:
406	406	(1) Sections 6.41(b) and (d-9), Tax Code, as amended
407	407	by this Act;
408	408	(2) Sections 6.41(b-1), (b-2), and (d-10), Tax Code,
409	409	as added by this Act;
410	410	(3) Section 6.414(d), Tax Code, as amended by this
411	411	Act;
412	412	(4) Section 6.425, Tax Code, as added by this Act;
413	413	(5) Section 25.19(b-3), Tax Code, as added by this
414	414	Act;
415	415	(6) Section 41.44(d), Tax Code, as amended by this
416	416	Act;
417	417	(7) Section 41.45(d), Tax Code, as amended by this
418	418	Act;
419	419	(8) Sections 41.45(d-1), (d-2), and (d-3), Tax Code,
420	420	as added by this Act;
421	421	(9) Section 41.66(k), Tax Code, as amended by this
422	422	Act; and
423	423	(10) Section 41.66(k-1), Tax Code, as added by this
424	424	Act.