Texas 2019 - 86th Regular

Texas House Bill HB1188 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		86R4438 CJC-F
2		-	By: Hefner, Sanford, Springer, Canales, H.B. No. 1188
3		-	et al.
	2	+	By: Hefner H.B. No. 1188
4	3
5	4
6	5		A BILL TO BE ENTITLED
7	6		AN ACT
8	7		relating to the appraisal of land for ad valorem tax purposes as
9	8		qualified open-space land following a transfer between family
10	9		members.
11	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	11		SECTION 1. Section 23.54, Tax Code, is amended by adding
13	12		Subsection (e-1) to read as follows:
14	13		(e-1) Notwithstanding Subsection (e), land remains eligible
15	14		for appraisal under this subchapter after a change in ownership of
16	15		the land occurs if the change in ownership results from a transfer
17	16		of the land from the former owner to a person who is related to the
18	17		former owner within the second degree by affinity or third degree by
19	18		consanguinity, as determined under Subchapter B, Chapter 573,
20	19		Government Code. A person described by this subsection must notify
21	20		the appraisal office of the transfer in writing within 180 days of
22	21		the date of the transfer.
23	22		SECTION 2. Section 25.25, Tax Code, is amended by adding
24	23		Subsections (d-1), (d-2), and (d-3) and amending Subsections (e)
25	24		and (m) to read as follows:
26	25		(d-1) The appraisal review board, on motion of the chief
27	26		appraiser or of the property owner, may direct by written order
28	27		changes in the appraisal roll as provided by this subsection. The
29	28		board may order the appraised value of the owner's land in either of
30	29		the two preceding tax years to be changed to the value at which the
31	30		land would have been appraised under Subchapter D, Chapter 23, if:
32	31		(1) the chief appraiser or the property owner
33	32		demonstrates by clear and convincing evidence that the land was
34	33		appraised under Subchapter D, Chapter 23, for three of the five
35	34		preceding tax years;
36	35		(2) the land was determined to be ineligible for
37	36		appraisal under Subchapter D, Chapter 23, for the applicable tax
38	37		year or years for which the change in appraised value is sought
39	38		because the property owner failed to file a new application for
40	39		appraisal under that subchapter after a change in ownership of the
41	40		land occurred;
42	41		(3) the change in ownership was the result of a
43	42		transfer of the land from a person to whom the property owner is
44	43		related within the second degree by affinity or third degree by
45	44		consanguinity, as determined under Subchapter B, Chapter 573,
46	45		Government Code; and
47	46		(4) the land continued to be used in a manner that
48	47		otherwise qualified the land for appraisal under Subchapter D,
49	48		Chapter 23, during the applicable tax year.
50	49		(d-2) If an appraisal roll is changed under Subsection
51	50		(d-1), the property owner must pay to each affected taxing unit a
52	51		penalty equal to 10 percent of the difference between the amount of
53	52		tax imposed on the land and the amount of tax that would have been
54	53		imposed had the land been taxed at market value. Payment of the
55	54		penalty is secured by the lien that attaches to the land under
56	55		Section 32.01 and is subject to enforced collection under Chapter
57	56		33.
58	57		(d-3) An appraisal roll may not be changed under Subsection
59	58		(d-1) if:
60	59		(1) the land was the subject of a protest brought by
61	60		the property owner under Chapter 41, a hearing on the protest was
62	61		conducted in which the property owner offered evidence or argument,
63	62		and the appraisal review board made a determination of the protest
64	63		on the merits; or
65	64		(2) the appraised value of the land was established as
66	65		a result of a written agreement between the property owner or the
67	66		owner's agent and the appraisal district.
68	67		(e) If the chief appraiser and the property owner do not
69	68		agree to the correction before the 15th day after the date the
70	69		motion is filed, a party bringing a motion under Subsection (c),
71	70		[or] (d), or (d-1) is entitled on request to a hearing on and a
72	71		determination of the motion by the appraisal review board. A party
73	72		bringing a motion under this section must describe the error or
74	73		errors that the motion is seeking to correct under Subsection (c) or
75	74		(d) or state the grounds for the change in appraised value sought
76	75		under Subsection (d-1). Not later than 15 days before the date of
77	76		the hearing, the board shall deliver written notice of the date,
78	77		time, and place of the hearing to the chief appraiser, the property
79	78		owner, and the presiding officer of the governing body of each
80	79		taxing unit in which the property is located. The chief appraiser,
81	80		the property owner, and each taxing unit are entitled to present
82	81		evidence and argument at the hearing and to receive written notice
83	82		of the board's determination of the motion. The property owner is
84	83		entitled to elect to present the owner's evidence and argument
85	84		before, after, or between the cases presented by the chief
86	85		appraiser and each taxing unit. A property owner who files the
87	86		motion must comply with the payment requirements of Section 25.26
88	87		or forfeit the right to a final determination of the motion.
89	88		(m) The hearing on a motion under Subsection (c), [or] (d),
90	89		or (d-1) shall be conducted in the manner provided by Subchapter C,
91	90		Chapter 41.
92	91		SECTION 3. This Act takes effect January 1, 2020.