Texas 2019 - 86th Regular

Texas House Bill HB3098 Compare Versions

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

Old	New	Differences
1	1	86R14931 SMH-D
2	2	By: Toth H.B. No. 3098
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. The heading to Subchapter A, Chapter 6, Tax Code,
10	10	is amended to read as follows:
11	11	SUBCHAPTER A. APPRAISAL OFFICES [DISTRICTS]
12	12	SECTION 2. Section 6.01, Tax Code, is amended to read as
13	13	follows:
14	14	Sec. 6.01. APPRAISAL OFFICES [DISTRICTS] ESTABLISHED. (a)
15	15	An appraisal office [district] is established in each county.
16	16	(b) The office [district] is responsible for appraising
17	17	property in the county for which the office is established
18	18	[district] for ad valorem tax purposes of each taxing unit that
19	19	imposes ad valorem taxes on property in the county [district].
20	20	(c) An appraisal office [district] is governed by the
21	21	assessor-collector of the county for which the office is
22	22	established and is an administrative office of the county
23	23	assessor-collector [a political subdivision of the state].
24	24	(d) For purposes of this title, each taxing unit with
25	25	territory in the county is considered to participate in the
26	26	appraisal office established for the county.
27	27	(e) A reference in this title or other law to:
28	28	(1) an appraisal district means an appraisal office;
29	29	(2) the territory of an appraisal district means the
30	30	county for which an appraisal office is established; and
31	31	(3) the board of directors of an appraisal district
32	32	means the assessor-collector of the county for which an appraisal
33	33	office is established.
34	34	SECTION 3. Section 6.02, Tax Code, is amended to read as
35	35	follows:
36	36	Sec. 6.02. APPRAISAL OFFICE AUTHORITY WITHIN COUNTY
37	37	[DISTRICT BOUNDARIES]. (a) An [The] appraisal office has
38	38	authority under this title in the territory included within
39	39	[district's boundaries are the same as] the county's boundaries.
40	40	(b) This section does not preclude the county
41	41	assessor-collectors who govern [board of directors of] two or more
42	42	adjoining appraisal offices [districts] from providing for the
43	43	operation of a consolidated appraisal office [district] by
44	44	interlocal contract.
45	45	SECTION 4. The heading to Section 6.035, Tax Code, is
46	46	amended to read as follows:
47	47	Sec. 6.035. RESTRICTIONS ON ELIGIBILITY AND CONDUCT OF
48	48	COUNTY ASSESSOR-COLLECTORS [BOARD MEMBERS] AND CHIEF APPRAISERS
49	49	AND THEIR RELATIVES.
50	50	SECTION 5. Sections 6.035(a), (b), and (d), Tax Code, are
51	51	amended to read as follows:
52	52	(a) An individual is [ineligible to serve on an appraisal
53	53	district board of directors and is] disqualified from employment as
54	54	chief appraiser if the individual:
55	55	(1) is related within the second degree by
56	56	consanguinity or affinity, as determined under Chapter 573,
57	57	Government Code, to an individual who is engaged in the business of
58	58	appraising property for compensation for use in proceedings under
59	59	this title or of representing property owners for compensation in
60	60	proceedings under this title in the appraisal office [district]; or
61	61	(2) owns property on which delinquent taxes have been
62	62	owed to a taxing unit for more than 60 days after the date the
63	63	individual knew or should have known of the delinquency unless:
64	64	(A) the delinquent taxes and any penalties and
65	65	interest are being paid under an installment payment agreement
66	66	under Section 33.02; or
67	67	(B) a suit to collect the delinquent taxes is
68	68	deferred or abated under Section 33.06 or 33.065.
69	69	(b) A [member of an appraisal district board of directors or
70	70	a] chief appraiser commits an offense if the [board member
71	71	continues to hold office or the] chief appraiser remains employed
72	72	knowing that an individual related within the second degree by
73	73	consanguinity or affinity, as determined under Chapter 573,
74	74	Government Code, to the [board member or] chief appraiser is
75	75	engaged in the business of appraising property for compensation for
76	76	use in proceedings under this title or of representing property
77	77	owners for compensation in proceedings under this title in the
78	78	appraisal office [district] in which the [member serves or the]
79	79	chief appraiser is employed. An offense under this subsection is a
80	80	Class B misdemeanor.
81	81	(d) An appraisal performed by a chief appraiser in a private
82	82	capacity or by an individual related within the second degree by
83	83	consanguinity or affinity, as determined under Chapter 573,
84	84	Government Code, to the chief appraiser may not be used as evidence
85	85	in a protest or challenge under Chapter 41 or an appeal under
86	86	Chapter 42 concerning property that is taxable in the county for
87	87	which the appraisal office that employs [district in which] the
88	88	chief appraiser is established [employed].
89	89	SECTION 6. Sections 6.036(b), (c), and (f), Tax Code, are
90	90	amended to read as follows:
91	91	(b) An appraisal office [district] may not enter into a
92	92	contract with the county assessor-collector who governs [a member
93	93	of the board of directors of] the appraisal office [district] or
94	94	with a business entity in which the county assessor-collector [a
95	95	member of the board] has a substantial interest.
96	96	(c) A taxing unit may not enter into a contract relating to
97	97	the performance of an activity governed by this title with a
98	98	business entity in which the county assessor-collector who governs
99	99	[a member of the board of directors of] an appraisal office
100	100	[district] in which the taxing unit participates [or with a
101	101	business entity in which a member of the board] has a substantial
102	102	interest.
103	103	(f) This section does not limit the application of any other
104	104	law, including the common law relating to conflicts of interest, to
105	105	a county assessor-collector [an appraisal district director].
106	106	SECTION 7. Section 6.05, Tax Code, is amended to read as
107	107	follows:
108	108	Sec. 6.05. APPRAISAL OFFICE; CHIEF APPRAISER AND OTHER
109	109	EMPLOYEES. (a) Except as authorized by Subsection (b) [of this
110	110	section], each county assessor-collector [appraisal district]
111	111	shall establish an appraisal office. The appraisal office must be
112	112	located in the county for which the office [district] is
113	113	established. An appraisal office [district] may establish branch
114	114	appraisal offices outside the county for which the office
115	115	[district] is established.
116	116	(b) The county assessor-collector who governs [board of
117	117	directors of] an appraisal office [district] may contract with an
118	118	appraisal office in another county [district or with a taxing unit
119	119	in the district] to perform the duties of the appraisal office for
120	120	the county [district].
121	121	(c) The county assessor-collector may serve as the chief
122	122	appraiser for the appraisal office or may appoint another person to
123	123	serve as the chief appraiser.
124	124	(d) A county assessor-collector who appoints another person
125	125	to serve as the chief appraiser shall notify the comptroller and
126	126	each taxing unit that participates in the appraisal office of that
127	127	appointment.
128	128	(e) An appointed [The] chief appraiser [is the chief
129	129	administrator of the appraisal office. Except as provided by
130	130	Section 6.0501, the chief appraiser is appointed by and] serves at
131	131	the pleasure of the county assessor-collector and acts on behalf of
132	132	the county assessor-collector on all matters delegated to the
133	133	appointed chief appraiser by the county assessor-collector
134	134	[appraisal district board of directors. If a taxing unit performs
135	135	the duties of the appraisal office pursuant to a contract, the
136	136	assessor for the unit is the chief appraiser]. To be eligible to be
137	137	appointed [or serve] as a chief appraiser or to serve as an
138	138	appointed chief appraiser, a person must be certified as a
139	139	registered professional appraiser under Section 1151.160,
140	140	Occupations Code, possess an MAI professional designation from the
141	141	Appraisal Institute, or possess an Assessment Administration
142	142	Specialist (AAS), Certified Assessment Evaluator (CAE), or
143	143	Residential Evaluation Specialist (RES) professional designation
144	144	from the International Association of Assessing Officers. A person
145	145	who is eligible to be appointed [or serve] as a chief appraiser or
146	146	to serve as an appointed chief appraiser by having a professional
147	147	designation described by this subsection must become certified as a
148	148	registered professional appraiser under Section 1151.160,
149	149	Occupations Code, not later than the fifth anniversary of the date
150	150	the person is appointed or begins to serve as chief appraiser. A
151	151	chief appraiser who is not eligible to be appointed or serve as
152	152	chief appraiser may not perform an action authorized or required by
153	153	law to be performed by a chief appraiser, including the
154	154	preparation, certification, or submission of any part of the
155	155	appraisal roll. Not later than January 1 of each year, a county
156	156	assessor-collector who has appointed another person to serve as the
157	157	chief appraiser shall notify the comptroller in writing that the
158	158	chief appraiser is either eligible to be appointed or serve as the
159	159	chief appraiser or not eligible to be appointed or serve as the
160	160	chief appraiser.
161	161	(f) An appointed [(d) Except as provided by Section
162	162	6.0501, the] chief appraiser is entitled to compensation as
163	163	provided by the budget adopted by the county assessor-collector who
164	164	governs the appraisal office for performing duties delegated to the
165	165	appointed chief appraiser by the county assessor-collector [board
166	166	of directors]. The chief appraiser's compensation may not be
167	167	directly or indirectly linked to an increase in the total market,
168	168	appraised, or taxable value of property in the county for which the
169	169	appraisal office is established [district]. The county
170	170	assessor-collector [Except as provided by Section 6.0501, the chief
171	171	appraiser] may employ and compensate professional, clerical, and
172	172	other personnel as provided by the budget[, with the exception of a
173	173	general counsel to the appraisal district].
174	174	(g) [(e)] The county assessor-collector may not appoint a
175	175	person to serve as the chief appraiser if the person is related to
176	176	the county assessor-collector within the second degree by affinity
177	177	or within the third degree by consanguinity, as determined under
178	178	Chapter 573, Government Code. [chief appraiser may delegate
179	179	authority to his employees.
180	180	[(f) The chief appraiser may not employ any individual
181	181	related to a member of the board of directors within the second
182	182	degree by affinity or within the third degree by consanguinity, as
183	183	determined under Chapter 573, Government Code.] A person commits
184	184	an offense if the person intentionally or knowingly violates this
185	185	subsection. An offense under this subsection is a misdemeanor
186	186	punishable by a fine of not less than $100 or more than $1,000.
187	187	(h) [(g)] The chief appraiser is an officer of the appraisal
188	188	office [district] for purposes of the nepotism law, Chapter 573,
189	189	Government Code. An appraisal office [district] may not employ or
190	190	contract with an individual or the spouse of an individual who is
191	191	related to the chief appraiser within the first degree by
192	192	consanguinity or affinity, as determined under Chapter 573,
193	193	Government Code.
194	194	(i) A county assessor-collector who appoints another person
195	195	to serve as the chief appraiser [(h) The board of directors of an
196	196	appraisal district by resolution] may prescribe that specified
197	197	actions of the chief appraiser relating to the finances or
198	198	administration of the appraisal office [district] are subject to
199	199	the approval of the county assessor-collector [board].
200	200	[(i) To ensure adherence with generally accepted appraisal
201	201	practices, the board of directors of an appraisal district shall
202	202	develop biennially a written plan for the periodic reappraisal of
203	203	all property within the boundaries of the district according to the
204	204	requirements of Section 25.18 and shall hold a public hearing to
205	205	consider the proposed plan. Not later than the 10th day before the
206	206	date of the hearing, the secretary of the board shall deliver to the
207	207	presiding officer of the governing body of each taxing unit
208	208	participating in the district a written notice of the date, time,
209	209	and place for the hearing. Not later than September 15 of each
210	210	even-numbered year, the board shall complete its hearings, make any
211	211	amendments, and by resolution finally approve the plan. Copies of
212	212	the approved plan shall be distributed to the presiding officer of
213	213	the governing body of each taxing unit participating in the
214	214	district and to the comptroller within 60 days of the approval
215	215	date.]
216	216	(j) The county assessor-collector who governs [board of
217	217	directors of] an appraisal office [district] may employ a general
218	218	counsel to the office [district] to serve at the will of the county
219	219	assessor-collector [board]. The general counsel shall provide
220	220	counsel directly to the county assessor-collector [board] and
221	221	perform other duties and responsibilities as determined by the
222	222	county assessor-collector [board]. The general counsel is entitled
223	223	to compensation as provided by the budget adopted by the county
224	224	assessor-collector [board].
225	225	SECTION 8. Section 6.052, Tax Code, is amended to read as
226	226	follows:
227	227	Sec. 6.052. TAXPAYER LIAISON OFFICER. (a) The county
228	228	assessor-collector who governs [board of directors for] an
229	229	appraisal office [district] created for a county with a population
230	230	of more than 120,000 shall appoint a taxpayer liaison officer who
231	231	shall serve at the pleasure of the county assessor-collector
232	232	[board]. The taxpayer liaison officer [shall administer the public
233	233	access functions required by Sections 6.04(d), (e), and (f), and]
234	234	is responsible for resolving disputes not involving matters that
235	235	may be protested under Section 41.41. In addition, the taxpayer
236	236	liaison officer is responsible for receiving, and compiling a list
237	237	of, comments and suggestions filed by the chief appraiser, a
238	238	property owner, or a property owner's agent concerning the matters
239	239	listed in Section 5.103(b) or any other matter related to the
240	240	fairness and efficiency of the appraisal review board established
241	241	for the appraisal office [district]. The taxpayer liaison officer
242	242	shall forward to the comptroller comments and suggestions filed
243	243	under this subsection in the form and manner prescribed by the
244	244	comptroller.
245	245	(b) The taxpayer liaison officer shall provide to the public
246	246	information and materials designed to assist property owners in
247	247	understanding the appraisal process, protest procedures, the
248	248	procedure for filing comments and suggestions under Subsection (a)
249	249	[of this section or a complaint under Section 6.04(g)], and other
250	250	matters. Information concerning the process for submitting
251	251	comments and suggestions to the comptroller concerning an appraisal
252	252	review board shall be provided at each protest hearing.
253	253	(c) The taxpayer liaison officer shall report to the county
254	254	assessor-collector [board at each meeting] on the status of all
255	255	comments and suggestions filed with the officer under Subsection
256	256	(a) [of this section and all complaints filed with the board under
257	257	Section 6.04(g)].
258	258	(d) The taxpayer liaison officer is entitled to
259	259	compensation as provided by the budget adopted by the county
260	260	assessor-collector [board of directors].
261	261	(e) The chief appraiser or any other person who performs
262	262	appraisal or legal services for the appraisal office [district] for
263	263	compensation is not eligible to be the taxpayer liaison officer.
264	264	(f) The taxpayer liaison officer for an appraisal office
265	265	[district described by Section 6.41(d-1)] is responsible for
266	266	providing clerical assistance to the pertinent state senators and
267	267	state representatives [local administrative district judge] in the
268	268	selection of appraisal review board members. The officer shall
269	269	deliver to the state senators and state representatives [local
270	270	administrative district judge] any applications to serve on the
271	271	board that are submitted to the officer and shall perform other
272	272	duties as requested by the state senators and state representatives
273	273	[local administrative district judge]. The officer may not
274	274	influence the process for selecting appraisal review board members.
275	275	SECTION 9. The heading to Section 6.06, Tax Code, is amended
276	276	to read as follows:
277	277	Sec. 6.06. APPRAISAL OFFICE [DISTRICT] BUDGET AND
278	278	FINANCING.
279	279	SECTION 10. Sections 6.06(a), (b), (c), (d), (f), (g), (h),
280	280	(i), (j), and (k), Tax Code, are amended to read as follows:
281	281	(a) Each year the county assessor-collector who governs an
282	282	appraisal office, with the assistance of the chief appraiser, shall
283	283	prepare a proposed budget for the operations of the office
284	284	[district] for the following tax year and shall submit copies to
285	285	each taxing unit participating in the office [district and to the
286	286	district board of directors] before June 15. The budget must [He
287	287	shall] include [in the budget] a list showing each proposed
288	288	position, the proposed salary for the position, all benefits
289	289	proposed for the position, each proposed capital expenditure, and
290	290	an estimate of the amount of the budget that will be allocated to
291	291	each taxing unit. Each taxing unit [entitled to vote on the
292	292	appointment of board members] shall maintain a copy of the proposed
293	293	budget for public inspection at its principal administrative
294	294	office.
295	295	(b) The county assessor-collector [board of directors]
296	296	shall hold a public hearing to consider the budget. The chief
297	297	appraiser [secretary of the board] shall deliver to the presiding
298	298	officer of the governing body of each taxing unit participating in
299	299	the appraisal office [district] not later than the 10th day before
300	300	the date of the hearing a written notice of the date, time, and
301	301	place fixed for the hearing. The county assessor-collector [board]
302	302	shall complete the [its] hearings, make any amendments to the
303	303	proposed budget [it desires], and finally approve a budget before
304	304	September 15. If the governing bodies of a majority of the taxing
305	305	units participating in the appraisal office [entitled to vote on
306	306	the appointment of board members] adopt resolutions disapproving a
307	307	budget and file them with the county assessor-collector [secretary
308	308	of the board] within 30 days after its adoption, the budget does not
309	309	take effect, and the county assessor-collector [board] shall adopt
310	310	a new budget within 30 days of the disapproval.
311	311	(c) The county assessor-collector [board] may amend the
312	312	approved budget at any time[,] but [the secretary of the board] must
313	313	deliver a written copy of a proposed amendment to the presiding
314	314	officer of the governing body of each taxing unit participating in
315	315	the appraisal office [district] not later than the 30th day before
316	316	the date the county assessor-collector [board] acts on it.
317	317	(d) Each taxing unit participating in the appraisal office
318	318	[district] is allocated a portion of the amount of the budget equal
319	319	to the proportion that the total dollar amount of property taxes
320	320	imposed in the county for which the office is established
321	321	[district] by the taxing unit for the tax year in which the budget
322	322	proposal is prepared bears to the sum of the total dollar amount of
323	323	property taxes imposed in the county [district] by each
324	324	participating taxing unit for that year. If a taxing unit
325	325	participates in two or more appraisal offices [districts], only the
326	326	taxes imposed in the appropriate county [a district] are used to
327	327	calculate the taxing unit's cost allocations in that office
328	328	[district]. If the number of real property parcels in a taxing unit
329	329	is less than 5 percent of the total number of real property parcels
330	330	in the county [district] and the taxing unit imposes in excess of 25
331	331	percent of the total amount of the property taxes imposed in the
332	332	county [district] by all of the participating taxing units for a
333	333	year, the taxing unit's allocation may not exceed a percentage of
334	334	the appraisal office's [district's] budget equal to three times the
335	335	taxing unit's percentage of the total number of real property
336	336	parcels appraised by the office [district].
337	337	(f) Payments shall be made to a depository designated by the
338	338	county assessor-collector [district board of directors]. The
339	339	appraisal office's [district's] funds may be disbursed only by a
340	340	written check, draft, or order signed by the county
341	341	assessor-collector [chairman and secretary of the board] or, if
342	342	authorized by [resolution of] the county assessor-collector
343	343	[board], by the chief appraiser.
344	344	(g) If a taxing unit decides not to impose taxes for any tax
345	345	year, the taxing unit is not liable for any of the costs of
346	346	operating the appraisal office [district] in that year, and those
347	347	costs are allocated among the other taxing units as if that taxing
348	348	unit had not imposed taxes in the year used to calculate
349	349	allocations. However, if that taxing unit has made any payments, it
350	350	is not entitled to a refund.
351	351	(h) If a newly formed taxing unit or a taxing unit that did
352	352	not impose taxes in the preceding year imposes taxes in any tax
353	353	year, that taxing unit is allocated a portion of the amount budgeted
354	354	to operate the appraisal office [district] as if it had imposed
355	355	taxes in the preceding year, except that the amount of taxes the
356	356	taxing unit imposes in the current year is used to calculate its
357	357	allocation. Before the amount of taxes to be imposed for the
358	358	current year is known, the allocation may be based on an estimate to
359	359	which the county assessor-collector who governs the appraisal
360	360	office [district board of directors] and the governing body of the
361	361	taxing unit agree, and the payments made after that amount is known
362	362	shall be adjusted to reflect the amount imposed. The payments of a
363	363	newly formed taxing unit that has no source of funds are postponed
364	364	until the taxing unit has received adequate tax or other revenues.
365	365	(i) The fiscal year of an appraisal office [district] is the
366	366	calendar year unless the governing bodies of three-fourths of the
367	367	taxing units that participate in the office [entitled to vote on the
368	368	appointment of board members] adopt resolutions proposing a
369	369	different fiscal year and file them with the county
370	370	assessor-collector who governs the office [secretary of the board]
371	371	not more than 12 and not less than eight months before the first day
372	372	of the fiscal year proposed by the resolutions. If the fiscal year
373	373	of an appraisal office [district] is changed under this subsection,
374	374	the county assessor-collector, with the assistance of the chief
375	375	appraiser, shall prepare a proposed budget for the fiscal year as
376	376	provided by Subsection (a) [of this section] before the 15th day of
377	377	the seventh month preceding the first day of the fiscal year
378	378	established by the change, and the county assessor-collector [board
379	379	of directors] shall adopt a budget for the fiscal year as provided
380	380	by Subsection (b) [of this section] before the 15th day of the
381	381	fourth month preceding the first day of the fiscal year established
382	382	by the change. The [Unless the appraisal district adopts a
383	383	different method of allocation under Section 6.061 of this code,
384	384	the] allocation of the budget to each taxing unit shall be
385	385	calculated as provided by Subsection (d) [of this section] using
386	386	the amount of property taxes imposed by each participating taxing
387	387	unit in the most recent tax year preceding the fiscal year
388	388	established by the change for which the necessary information is
389	389	available. Each taxing unit shall pay its allocation as provided by
390	390	Subsection (e) [of this section], except that the first payment
391	391	shall be made before the first day of the fiscal year established by
392	392	the change and subsequent payments shall be made quarterly. In the
393	393	year in which a change in the fiscal year occurs, the budget that
394	394	takes effect on January 1 of that year may be amended as necessary
395	395	as provided by Subsection (c) [of this section] in order to
396	396	accomplish the change in fiscal years.
397	397	(j) If the total amount of the payments made or due to be
398	398	made by the taxing units participating in an appraisal office
399	399	[district] exceeds the amount actually spent or obligated to be
400	400	spent during the fiscal year for which the payments were made, the
401	401	chief appraiser shall credit the excess amount against each taxing
402	402	unit's allocated payments for the following year in proportion to
403	403	the amount of each taxing unit's budget allocation for the fiscal
404	404	year for which the payments were made. If a taxing unit that paid
405	405	its allocated amount is not allocated a portion of the appraisal
406	406	office's [district's] budget for the following fiscal year, the
407	407	chief appraiser shall refund to the taxing unit its proportionate
408	408	share of the excess funds not later than the 150th day after the end
409	409	of the fiscal year for which the payments were made.
410	410	(k) For good cause shown, the county assessor-collector who
411	411	governs an appraisal office [board of directors] may waive the
412	412	penalty and interest on a delinquent payment under Subsection (e).
413	413	SECTION 11. Sections 6.062(a) and (c), Tax Code, are
414	414	amended to read as follows:
415	415	(a) Not later than the 10th day before the date of the public
416	416	hearing at which the county assessor-collector who governs an
417	417	appraisal office [board of directors] considers the appraisal
418	418	office [district] budget, the chief appraiser shall give notice of
419	419	the public hearing by publishing the notice in a newspaper having
420	420	general circulation in the county for which the appraisal office
421	421	[district] is established. The notice may not be smaller than
422	422	one-quarter page of a standard-size or tabloid-size newspaper and
423	423	may not be published in the part of the paper in which legal notices
424	424	and classified advertisements appear.
425	425	(c) The notice must state that the appraisal office
426	426	[district] is supported solely by payments from the local taxing
427	427	units served by the appraisal office [district]. The notice must
428	428	also contain the following statement: "If approved by the county
429	429	assessor-collector who governs the appraisal office [district
430	430	board of directors] at the public hearing, this proposed budget
431	431	will take effect automatically unless disapproved by the governing
432	432	bodies of the taxing units [county, school districts, cities, and
433	433	towns] served by the appraisal office [district]. A copy of the
434	434	proposed budget is available for public inspection in the office of
435	435	each of those governing bodies."
436	436	SECTION 12. Section 6.063, Tax Code, is amended to read as
437	437	follows:
438	438	Sec. 6.063. FINANCIAL AUDIT. (a) At least once each year,
439	439	the county assessor-collector who governs [board of directors of]
440	440	an appraisal office [district] shall have prepared an audit of its
441	441	affairs by an independent certified public accountant or a firm of
442	442	independent certified public accountants.
443	443	(b) The report of the audit is a public record. A copy of
444	444	the report shall be delivered to the presiding officer of the
445	445	governing body of each taxing unit that participates in the
446	446	appraisal office [eligible to vote on the appointment of district
447	447	directors], and a reasonable number of copies shall be available
448	448	for inspection at the appraisal office.
449	449	SECTION 13. The heading to Section 6.09, Tax Code, is
450	450	amended to read as follows:
451	451	Sec. 6.09. DESIGNATION OF APPRAISAL OFFICE [DISTRICT]
452	452	DEPOSITORY.
453	453	SECTION 14. Sections 6.09(a), (b), and (c), Tax Code, are
454	454	amended to read as follows:
455	455	(a) The appraisal office [district] depository must be a
456	456	banking corporation incorporated under the laws of this state or
457	457	the United States or a savings and loan association in this state
458	458	whose deposits are insured by the Federal Deposit [Savings and
459	459	Loan] Insurance Corporation.
460	460	(b) The county assessor-collector who governs the appraisal
461	461	office [district board of directors] shall designate as the office
462	462	[district] depository the financial institution or institutions
463	463	that offer the most favorable terms and conditions for the handling
464	464	of the office's [district's] funds.
465	465	(c) The county assessor-collector [board] shall solicit
466	466	bids to be designated as depository for the appraisal office
467	467	[district]. The depository when designated shall serve for a term
468	468	of two years and until its successor is designated and has
469	469	qualified. The county assessor-collector [board] and the
470	470	depository may agree to extend a depository contract for one
471	471	additional two-year period.
472	472	SECTION 15. Section 6.11, Tax Code, is amended to read as
473	473	follows:
474	474	Sec. 6.11. PURCHASING AND CONTRACTING AUTHORITY. (a) An
475	475	appraisal office [district] is subject to the same requirements and
476	476	has the same purchasing and contracting authority as a municipality
477	477	under Chapter 252, Local Government Code.
478	478	(b) For purposes of this section, all the provisions of
479	479	Chapter 252, Local Government Code, applicable to a municipality or
480	480	to purchases and contracts by a municipality apply to an appraisal
481	481	office [district] and to purchases and contracts by an appraisal
482	482	office [district] to the extent they can be made applicable, and all
483	483	references to the municipality in that chapter mean the appraisal
484	484	office [district]. For purposes of applying Section 252.061, Local
485	485	Government Code, to an appraisal office [district], any resident of
486	486	the county for which the appraisal office is established [district]
487	487	may seek an injunction under that section. Sections 252.062 and
488	488	252.063, Local Government Code, apply to an officer or employee of
489	489	an appraisal office [district] in the same manner as those sections
490	490	apply to a municipal officer or employee.
491	491	SECTION 16. Sections 6.12(a), (b), (c), and (e), Tax Code,
492	492	are amended to read as follows:
493	493	(a) The state senators and state representatives whose
494	494	districts contain any part of the territory included in the county
495	495	for which an [chief appraiser of each] appraisal office is
496	496	established [district] shall by majority vote appoint, with the
497	497	advice [and consent] of and in the manner provided by the county
498	498	assessor-collector who governs the office [board of directors], an
499	499	agricultural advisory board composed of three or more members as
500	500	determined by the county assessor-collector [board]. Each state
501	501	senator and state representative is entitled to one vote for a
502	502	candidate for each position to be filled on the board.
503	503	(b) The agricultural advisory board members must be
504	504	landowners of the county for which the appraisal office is
505	505	established [district] whose land qualifies for appraisal under
506	506	Subchapter C, D, E, or H, Chapter 23, and who have been residents of
507	507	the county [district] for at least five years.
508	508	(c) Members of the board serve for [staggered] terms of two
509	509	years. The county assessor-collector who governs the appraisal
510	510	office shall provide for staggered terms, so that the terms of as
511	511	close to one-half of the members as possible expire each year [In
512	512	making the initial appointments of members of the agricultural
513	513	advisory board the chief appraiser shall appoint for a term of one
514	514	year one-half of the members, or if the number of members is an odd
515	515	number, one fewer than a majority of the membership].
516	516	(e) An employee or officer of an appraisal office [district]
517	517	may not be appointed and may not serve as a member of the
518	518	agricultural advisory board.
519	519	SECTION 17. Section 6.13, Tax Code, is amended to read as
520	520	follows:
521	521	Sec. 6.13. APPRAISAL OFFICE [DISTRICT] RECORDS. The
522	522	preservation, microfilming, destruction, or other disposition of
523	523	the records of each appraisal office [district] is subject to the
524	524	requirements of Subtitle C, Title 6, Local Government Code, and
525	525	rules adopted under that subtitle.
526	526	SECTION 18. Sections 6.14(a) and (b), Tax Code, are amended
527	527	to read as follows:
528	528	(a) On the written request of the Texas Legislative Council,
529	529	an appraisal office [district] that maintains its appraisal records
530	530	in electronic format shall provide a copy of the information or data
531	531	maintained in the office's [district's] appraisal records to the
532	532	council without charge.
533	533	(b) The appraisal office [district] shall provide the
534	534	requested information or data to the council as soon as practicable
535	535	but not later than the 30th day after the date the request is
536	536	received by the office [district].
537	537	SECTION 19. Sections 6.24(a) and (b), Tax Code, are amended
538	538	to read as follows:
539	539	(a) The governing body of a taxing unit other than a county
540	540	may contract as provided by Chapter 791, Government Code, [the
541	541	Interlocal Cooperation Act] with the governing body of another
542	542	taxing unit or with the county assessor-collector who governs
543	543	[board of directors of] an appraisal office [district] for the
544	544	other taxing unit or the office [district] to perform duties
545	545	relating to the assessment or collection of taxes.
546	546	(b) The commissioners court of a county with the approval of
547	547	the county assessor-collector may contract as provided by Chapter
548	548	791, Government Code, [the Interlocal Cooperation Act] with the
549	549	governing body of another taxing unit in the county [or with the
550	550	board of directors of the appraisal district] for the other taxing
551	551	unit [or the district] to perform duties relating to the assessment
552	552	or collection of taxes for the county. The commissioners court may
553	553	contract as provided by Chapter 791, Government Code, with the
554	554	county assessor-collector for the appraisal office established for
555	555	the county to perform duties relating to the assessment or
556	556	collection of taxes for the county. If a county contracts to have
557	557	its taxes assessed and collected by another taxing unit or by the
558	558	appraisal office [district, except as provided by Subsection (c)],
559	559	the contract shall require the other taxing unit or the office
560	560	[district] to assess and collect all taxes the county is required to
561	561	assess and collect.
562	562	SECTION 20. Sections 6.26(a), (b), (c), (e), (f), and (j),
563	563	Tax Code, are amended to read as follows:
564	564	(a) The qualified voters residing in the county for which an
565	565	appraisal office is established [district] by petition submitted to
566	566	the county clerk of the county [principally served by the appraisal
567	567	district] may require that an election be held to determine whether
568	568	or not to require the appraisal office [district], the county
569	569	assessor-collector, or a specified taxing unit within the county
570	570	[appraisal district] to assess, collect, or assess and collect
571	571	property taxes on property appraised by the office [district] for
572	572	all taxing units.
573	573	(b) The qualified voters of a taxing unit that assesses,
574	574	collects, or assesses and collects its own property taxes by
575	575	petition submitted to the governing body of the taxing unit may
576	576	require that an election be held to determine whether or not to
577	577	require the appraisal office [district], the county
578	578	assessor-collector, or another taxing unit that is assessing and
579	579	collecting property taxes to assess, collect, or assess and collect
580	580	the taxing unit's property taxes.
581	581	(c) A petition is valid if:
582	582	(1) it states that it is intended to require an
583	583	election in the county for which the appraisal office is
584	584	established [district] or in the taxing unit on the question of
585	585	consolidation of assessing or collecting functions or both;
586	586	(2) it states the functions to be consolidated and
587	587	identifies the entity or office that will be required to perform the
588	588	functions; and
589	589	(3) it is signed by a number of qualified voters equal
590	590	to at least 10 percent of the number of qualified voters, according
591	591	to the most recent official list of qualified voters, residing in
592	592	the county for which the appraisal office is established
593	593	[district], if the petition is authorized by Subsection (a) [of
594	594	this section], or in the taxing unit, if the petition is authorized
595	595	by Subsection (b) [of this section], or by 10,000 qualified voters,
596	596	whichever number is less.
597	597	(e) If the commissioners court or the governing body finds
598	598	that the petition is valid, it shall order that an election be held
599	599	in the county for which the appraisal office is established
600	600	[district] or in the taxing unit on the next uniform election date
601	601	prescribed by the [Texas] Election Code that is more than 60 days
602	602	after the last day on which it could have acted to approve or
603	603	disapprove the petition. At the election, the ballots shall be
604	604	prepared to permit voting for or against the proposition:
605	605	"Requiring the (name of entity or office) to (assess, collect, or
606	606	assess and collect, as applicable) property taxes for (all taxing
607	607	units in [the appraisal district for] _____________ County [county]
608	608	or name of taxing unit or taxing units, as applicable)."
609	609	(f) If a majority of the qualified voters voting on the
610	610	question in the election favor the proposition, the entity or
611	611	office named by the ballot shall perform the functions named by the
612	612	ballot beginning with the next time property taxes are assessed or
613	613	collected, as applicable, that is more than 90 days after the date
614	614	of the election. If the governing bodies, [(]and the county
615	615	assessor-collector who governs the appraisal office [district
616	616	board of directors] when the office [district] is involved,[)]
617	617	agree, a function may be consolidated when performance of the
618	618	function begins in less than 90 days after the date of the election.
619	619	(j) An appraisal office [district] may not be required by an
620	620	election to assess, collect, or assess and collect taxes on
621	621	property outside the [district's] boundaries of the county for
622	622	which the office is established. A taxing unit may not be required
623	623	by an election to assess, collect, or assess and collect taxes on
624	624	property outside the boundaries of the county for which the
625	625	appraisal office [district] that appraises property for the taxing
626	626	unit is established.
627	627	SECTION 21. Section 6.29(b), Tax Code, is amended to read as
628	628	follows:
629	629	(b) A taxing unit whose taxes are collected by the collector
630	630	for another taxing unit, by an officer or employee of another taxing
631	631	unit or of an appraisal office [district], or by any other person
632	632	other than the taxing unit's own collector may require that
633	633	collector, officer, employee, or other person to give bond
634	634	conditioned on the faithful performance of that person's [his]
635	635	duties. To be effective, the bond must be made payable to and must
636	636	be approved by and paid for by the governing body of the taxing unit
637	637	requiring bond in an amount determined by the governing body. The
638	638	governing body may prescribe additional requirements for the bond.
639	639	SECTION 22. Section 6.41, Tax Code, is amended to read as
640	640	follows:
641	641	Sec. 6.41. APPRAISAL REVIEW BOARD. (a) The appraisal
642	642	review board is established for each appraisal office [district].
643	643	(b) The board consists of three members. However, the
644	644	county assessor-collector who governs the appraisal office
645	645	[district board of directors by resolution of a majority of its
646	646	members] may increase the size of the appraisal review board to the
647	647	number of members the county assessor-collector [board of
648	648	directors] considers appropriate.
649	649	(c) To be eligible to serve on the board, an individual must
650	650	be a resident of the county for which the appraisal office is
651	651	established [district] and must have resided in the county
652	652	[district] for at least two years.
653	653	(d) Members [Except as provided by Subsection (d-1),
654	654	members] of the board are appointed by majority vote of the state
655	655	senators and state representatives whose districts contain any part
656	656	of the territory included in the county for which [resolution of a
657	657	majority of] the appraisal office is established in the manner
658	658	provided by the county assessor-collector who governs the office
659	659	[district board of directors]. Each state senator and state
660	660	representative is entitled to one vote for a candidate for each
661	661	position to be filled on the board. A vacancy on the board is filled
662	662	in the same manner for the unexpired portion of the term.
663	663	(e) [(d-1) In a county with a population of 120,000 or more
664	664	the members of the board are appointed by the local administrative
665	665	district judge under Subchapter D, Chapter 74, Government Code, in
666	666	the county in which the appraisal district is established.] All
667	667	applications submitted to the appraisal office [district] or to the
668	668	[appraisal review] board from persons seeking appointment as a
669	669	member of the [appraisal review] board shall be delivered to the
670	670	pertinent state senators and state representatives [local
671	671	administrative district judge]. The appraisal office [district]
672	672	may provide the state senators and state representatives [local
673	673	administrative district judge] with information regarding whether
674	674	an applicant for appointment to or a member of the board owes any
675	675	delinquent ad valorem taxes to a taxing unit participating in the
676	676	appraisal office [district].
677	677	(f) [(d-2) A local administrative district judge making
678	678	appointments under Subsection (d-1) may make such appointments
679	679	directly or may, by written order, appoint from three to five
680	680	persons to perform the duties of appraisal review board
681	681	commissioner. If the local administrative district judge chooses
682	682	to appoint appraisal review board commissioners, each commissioner
683	683	shall possess the same qualifications as those required of an
684	684	appraisal review board member.
685	685	[(d-3)] The appraisal office [local administrative judge
686	686	making appointments under Subsection (d-1)] shall [cause the proper
687	687	officer to] notify the persons appointed to the board of their [such
688	688	appointees of such] appointment[,] and when and where they are to
689	689	appear.
690	690	(g) [(d-4) If appraisal review board commissioners are
691	691	appointed under Subsection (d-2), they shall meet as directed by
692	692	the local administrative district judge in order to complete their
693	693	duties.
694	694	[(d-5)] The appraisal office [district of the county] shall
695	695	provide to the pertinent state senators and state representatives
696	696	[local administrative district judge, or to the appraisal review
697	697	board commissioners, as the case may be,] the number of [appraisal
698	698	review] board positions that require appointment and shall provide
699	699	whatever reasonable assistance is requested by the state senators
700	700	and state representatives to make the appointments [local
701	701	administrative district judge or the commissioners].
702	702	(h) [(d-6) An appraisal review board commissioner is not
703	703	disqualified from serving as a member of the appraisal review
704	704	board.
705	705	[(d-7) If appraisal review board commissioners are
706	706	appointed under this section, the commissioners shall return a list
707	707	of proposed appraisal review board members to the local
708	708	administrative district judge at a time directed by such local
709	709	administrative judge, but in no event later than January 1 of each
710	710	year. Such list shall be composed of no less than five (5) names in
711	711	excess of the number of appraisal review board positions to be
712	712	filled by the local administrative district judge. The local
713	713	administrative judge may accept the proposed names, or reject the
714	714	proposed list and return the proposed list to the commissioners
715	715	upon which the commissioners shall propose a revised list until the
716	716	local administrative judge accepts the list.
717	717	[(d-8) Any appraisal review board commissioners appointed
718	718	pursuant to this section shall hold office for a term of one year
719	719	beginning January 1. A commissioner may be appointed to successive
720	720	terms at the discretion of the local administrative district judge.
721	721	[(d-9) Upon selection of the individuals who are to serve as
722	722	members of the appraisal review board, the local administrative
723	723	district judge shall enter an appropriate order designating such
724	724	members and setting each member's respective term of office, as
725	725	provided elsewhere in this section.
726	726	[(e)] Members of the board hold office for terms of two
727	727	years beginning January 1. The county assessor-collector who
728	728	governs the appraisal office [district board of directors by
729	729	resolution] shall provide for staggered terms, so that the terms of
730	730	as close to one-half of the members as possible expire each year.
731	731	[In making the initial or subsequent appointments, the board of
732	732	directors or the local administrative district judge or the judge's
733	733	designee shall designate those members who serve terms of one year
734	734	as needed to comply with this subsection.]
735	735	(i) [(f)] A member of the board may be removed from the
736	736	board by a majority vote of the state senators and state
737	737	representatives [appraisal district board of directors, or by the
738	738	local administrative district judge or the judge's designee, as
739	739	applicable,] that appointed the member. Grounds for removal are:
740	740	(1) a violation of Section 6.412, 6.413, 41.66(f), or
741	741	41.69;
742	742	(2) good cause relating to the attendance of members
743	743	at called meetings of the board as established by written policy
744	744	adopted by the county assessor-collector who governs [a majority
745	745	of] the appraisal office [district board of directors]; or
746	746	(3) clear and convincing evidence of repeated bias or
747	747	misconduct.
748	748	(j) [(g)] Subsection (a) does not preclude the county
749	749	assessor-collectors who govern the appraisal offices established
750	750	for [boards of directors of] two or more adjoining counties
751	751	[appraisal districts] from providing for the operation of a
752	752	consolidated appraisal review board by interlocal contract.
753	753	(k) [(h)] When [adjoining] appraisal offices established
754	754	for two or more adjoining counties [districts] by interlocal
755	755	contract have provided for the operation of a consolidated
756	756	appraisal review board:
757	757	(1) a reference in this or another section of this code
758	758	to the appraisal office [district] means the [adjoining] appraisal
759	759	offices established for the adjoining counties [districts];
760	760	(2) a reference in this or another section of this code
761	761	to the county assessor-collector who governs the appraisal office
762	762	[district board of directors] means the county assessor-collectors
763	763	who govern [boards of directors of] the [adjoining] appraisal
764	764	offices established for the adjoining counties [districts];
765	765	(3) a provision of this code that applies to an
766	766	appraisal review board also applies to the consolidated appraisal
767	767	review board; and
768	768	(4) a reference in this code to the appraisal review
769	769	board shall be construed to also refer to the consolidated
770	770	appraisal review board.
771	771	(l) [(i) This subsection applies only to an appraisal
772	772	district described by Subsection (d-1).] A chief appraiser or
773	773	another employee or agent of the appraisal office [district], a
774	774	member of the appraisal review board for the appraisal office
775	775	[district], the county assessor-collector who governs [a member of
776	776	the board of directors of] the appraisal office [district], a
777	777	property tax consultant, or an agent of a property owner commits an
778	778	offense if the person communicates with a state senator or state
779	779	representative whose district contains any part of the territory
780	780	included in the county for which the appraisal office is
781	781	established [the local administrative district judge] regarding
782	782	the appointment of appraisal review board members. This subsection
783	783	does not apply to:
784	784	(1) a communication between a member of the appraisal
785	785	review board and a state senator or state representative [the local
786	786	administrative district judge] regarding the member's
787	787	reappointment to the board;
788	788	(2) a communication between the taxpayer liaison
789	789	officer for the appraisal office [district] and a state senator or
790	790	state representative [the local administrative district judge] in
791	791	the course of the performance of the officer's clerical duties so
792	792	long as the officer does not offer an opinion or comment regarding
793	793	the appointment of appraisal review board members;
794	794	(3) a communication between a chief appraiser or
795	795	another employee or agent of the appraisal office [district], a
796	796	member of the appraisal review board for the appraisal office
797	797	[district], or the county assessor-collector who governs [a member
798	798	of the board of directors of] the appraisal office [district] and a
799	799	state senator or state representative [the local administrative
800	800	district judge] regarding information relating to or described by
801	801	Subsection (e), (g), or (i) [(d-1), (d-5), or (f)] of this section
802	802	or Section 411.1296, Government Code; or
803	803	(4) a communication between a property tax consultant
804	804	or a property owner or an agent of the property owner and the
805	805	taxpayer liaison officer for the appraisal office [district]
806	806	regarding information relating to or described by Subsection (i)
807	807	[(f)].
808	808	(m) The taxpayer liaison officer for the appraisal office
809	809	[district] shall report the contents of the communication [relating
810	810	to or] described by Subsection (l)(4) [(f)] to the pertinent state
811	811	senators and state representatives [local administrative district
812	812	judge].
813	813	(n) [(j)] A chief appraiser or another employee or agent of
814	814	an appraisal office [district] commits an offense if the person
815	815	communicates with a member of the appraisal review board for the
816	816	appraisal office [district], the county assessor-collector who
817	817	governs [a member of the board of directors of] the appraisal office
818	818	[district], or a state senator or state representative whose
819	819	district contains any part of the territory included in the county
820	820	for which [, if] the appraisal office is established [district is an
821	821	appraisal district described by Subsection (d-1), the local
822	822	administrative district judge] regarding a ranking, scoring, or
823	823	reporting of the percentage by which the appraisal review board or a
824	824	panel of the board reduces the appraised value of property.
825	825	(o) [(k)] An offense under Subsection (l) or (n) [(i) or
826	826	(j)] is a Class A misdemeanor.
827	827	SECTION 23. Sections 6.411(a), (b), and (c-1), Tax Code,
828	828	are amended to read as follows:
829	829	(a) A member of an appraisal review board commits an offense
830	830	if the member communicates with the chief appraiser or another
831	831	employee or the county assessor-collector who governs [a member of
832	832	the board of directors of] the appraisal office [district] for
833	833	which the appraisal review board is established in violation of
834	834	Section 41.66(f).
835	835	(b) A chief appraiser or another employee of an appraisal
836	836	office [district], the county assessor-collector who governs [a
837	837	member of a board of directors of] an appraisal office [district],
838	838	or a property tax consultant or attorney representing a party to a
839	839	proceeding before the appraisal review board commits an offense if
840	840	the person communicates with a member of the appraisal review board
841	841	established for the appraisal office [district] with the intent to
842	842	influence a decision by the member in the member's capacity as a
843	843	member of the appraisal review board.
844	844	(c-1) This section does not apply to communications with a
845	845	member of an appraisal review board by the chief appraiser or
846	846	another employee or the county assessor-collector who governs [a
847	847	member of the board of directors of] an appraisal office [district]
848	848	or a property tax consultant or attorney representing a party to a
849	849	proceeding before the appraisal review board:
850	850	(1) during a hearing on a protest or other proceeding
851	851	before the appraisal review board;
852	852	(2) that constitute social conversation;
853	853	(3) that are specifically limited to and involve
854	854	administrative, clerical, or logistical matters related to the
855	855	scheduling and operation of hearings, the processing of documents,
856	856	the issuance of orders, notices, and subpoenas, and the operation,
857	857	appointment, composition, or attendance at training of the
858	858	appraisal review board; or
859	859	(4) that are necessary and appropriate to enable the
860	860	county assessor-collector who governs [board of directors of] the
861	861	appraisal office or the pertinent state senators and state
862	862	representatives [district] to determine whether to appoint,
863	863	reappoint, or remove a person as a member or the chairman or
864	864	secretary of the appraisal review board.
865	865	SECTION 24. Sections 6.412(a), (b), (c), and (d), Tax Code,
866	866	are amended to read as follows:
867	867	(a) An individual is ineligible to serve on an appraisal
868	868	review board if the individual:
869	869	(1) is related within the second degree by
870	870	consanguinity or affinity, as determined under Chapter 573,
871	871	Government Code, to an individual who is engaged in the business of
872	872	appraising property for compensation for use in proceedings under
873	873	this title or of representing property owners for compensation in
874	874	proceedings under this title in the appraisal office [district] for
875	875	which the appraisal review board is established;
876	876	(2) owns property on which delinquent taxes have been
877	877	owed to a taxing unit for more than 60 days after the date the
878	878	individual knew or should have known of the delinquency unless:
879	879	(A) the delinquent taxes and any penalties and
880	880	interest are being paid under an installment payment agreement
881	881	under Section 33.02; or
882	882	(B) a suit to collect the delinquent taxes is
883	883	deferred or abated under Section 33.06 or 33.065; or
884	884	(3) is related within the third degree by
885	885	consanguinity or within the second degree by affinity, as
886	886	determined under Chapter 573, Government Code, to the county
887	887	assessor-collector who governs [a member of] the appraisal office
888	888	[district's board of directors].
889	889	(b) A member of an appraisal review board commits an offense
890	890	if the board member continues to hold office knowing that an
891	891	individual related within the second degree by consanguinity or
892	892	affinity, as determined under Chapter 573, Government Code, to the
893	893	board member is engaged in the business of appraising property for
894	894	compensation for use in proceedings under this title or of
895	895	representing property owners for compensation in proceedings under
896	896	this title in the appraisal office [district] for which the
897	897	appraisal review board is established. An offense under this
898	898	subsection is a Class B misdemeanor.
899	899	(c) A person is ineligible to serve on the appraisal review
900	900	board if the person is the county assessor-collector who governs
901	901	the appraisal office [a member of the board of directors], an
902	902	officer[,] or employee of the appraisal office [district], an
903	903	employee of the comptroller, or a member of the governing body,
904	904	officer, or employee of a taxing unit.
905	905	(d) A person is ineligible to serve on the appraisal review
906	906	board of an appraisal office [district] established for a county
907	907	having a population of more than 100,000 if the person:
908	908	(1) is a former county assessor-collector who governed
909	909	the appraisal office or a [member of the board of directors,] former
910	910	officer[,] or former employee of the appraisal office [district];
911	911	(2) served as a member of the governing body or officer
912	912	of a taxing unit for which the appraisal office [district]
913	913	appraises property, until the fourth anniversary of the date the
914	914	person ceased to be a member or officer; or
915	915	(3) appeared before the appraisal review board for
916	916	compensation during the two-year period preceding the date the
917	917	person is appointed.
918	918	SECTION 25. Sections 6.413(a), (b), and (c), Tax Code, are
919	919	amended to read as follows:
920	920	(a) An individual is not eligible to be appointed to or to
921	921	serve on the appraisal review board established for an appraisal
922	922	office [district] if the individual or a business entity in which
923	923	the individual has a substantial interest is a party to a contract
924	924	with the appraisal office [district] or with a taxing unit that
925	925	participates in the appraisal office [district].
926	926	(b) An appraisal office [district] may not enter into a
927	927	contract with a member of the appraisal review board established
928	928	for the appraisal office [district] or with a business entity in
929	929	which a member of the appraisal review board has a substantial
930	930	interest.
931	931	(c) A taxing unit may not enter into a contract with a member
932	932	of the appraisal review board established for an appraisal office
933	933	[district] in which the taxing unit participates or with a business
934	934	entity in which a member of the appraisal review board has a
935	935	substantial interest.
936	936	SECTION 26. Sections 6.414(a) and (f), Tax Code, are
937	937	amended to read as follows:
938	938	(a) The county assessor-collector who governs [board of
939	939	directors of] an appraisal office [district by resolution of a
940	940	majority of the members] may provide for a number of auxiliary
941	941	appraisal review board members that the county assessor-collector
942	942	[board] considers appropriate to hear taxpayer protests before the
943	943	appraisal review board and to assist the board in performing its
944	944	duties.
945	945	(f) An auxiliary board member is entitled to compensation as
946	946	provided by the appraisal office [district] budget and is not
947	947	entitled to a per diem or reimbursement of expenses under Section
948	948	6.42(c).
949	949	SECTION 27. Sections 6.42(a) and (c), Tax Code, are amended
950	950	to read as follows:
951	951	(a) A majority of the appraisal review board constitutes a
952	952	quorum. The county assessor-collector who governs [board of
953	953	directors of] the appraisal office [district by resolution] shall
954	954	select a chairman and a secretary from among the members of the
955	955	appraisal review board. The county assessor-collector who governs
956	956	[board of directors of] the appraisal office [district] is
957	957	encouraged to select as chairman of the appraisal review board a
958	958	member of the appraisal review board, if any, who has a background
959	959	in law and property appraisal.
960	960	(c) Members of the board are entitled to per diem set by the
961	961	appraisal office [district] budget for each day the board meets and
962	962	to reimbursement for actual and necessary expenses incurred in the
963	963	performance of board functions as provided by the office [district]
964	964	budget.
965	965	SECTION 28. Sections 6.43(a), (b), (c), and (e), Tax Code,
966	966	are amended to read as follows:
967	967	(a) The appraisal review board may employ legal counsel as
968	968	provided by the appraisal office [district] budget or use the
969	969	services of the county attorney.
970	970	(b) Except as provided by Subsection (c), an attorney may
971	971	not serve as legal counsel for the appraisal review board if the
972	972	attorney or a member of the attorney's law firm has during the year
973	973	before the date of the appraisal review board's hiring of the
974	974	attorney represented a property owner who owns property in the
975	975	county for which the appraisal office is established [district], a
976	976	taxing unit that participates in the appraisal office [district],
977	977	or the appraisal office [district] in a matter addressed by Section
978	978	1.111 or 25.25 of this code, Subtitle F of this title, or Subchapter
979	979	Z, Chapter 2003, Government Code.
980	980	(c) The county attorney for the county in which the
981	981	appraisal office [district] is established may provide legal
982	982	services to the appraisal review board notwithstanding that the
983	983	county attorney or an assistant to the county attorney represents
984	984	or has represented the appraisal office [district] or a taxing unit
985	985	that participates in the appraisal office [district] in any matter.
986	986	(e) An appraisal office [district] may specify in its budget
987	987	whether the appraisal review board may employ legal counsel or must
988	988	use the services of the county attorney. If the budget authorizes
989	989	the board to employ legal counsel, the budget must provide for
990	990	reasonable compensation to be paid to the attorney serving as legal
991	991	counsel. An appraisal office [district] may not require the board
992	992	to employ a specific attorney as legal counsel.
993	993	SECTION 29. Section 11.01, Tax Code, is amended to read as
994	994	follows:
995	995	Sec. 11.01. REAL [AND TANGIBLE PERSONAL] PROPERTY. (a) All
996	996	real [and tangible personal] property that this state has
997	997	jurisdiction to tax is taxable unless exempt by law.
998	998	(b) This state has jurisdiction to tax real property if
999	999	located in this state.
1000	1000	(c) For a tax year that begins after December 31, 2021,
1001	1001	tangible personal property is not taxable.
1002	1002	(d) On and after January 1, 2022, a provision of this code or
1003	1003	another law that would otherwise apply to the taxation of tangible
1004	1004	personal property for a tax year that begins after December 31,
1005	1005	2021, has no effect for that tax year.
1006	1006	(e) Subsections (c) and (d) do not apply to personal
1007	1007	property taxable under Section 1(l), Article VIII, Texas
1008	1008	Constitution. [This state has jurisdiction to tax tangible personal
1009	1009	property if the property is:
1010	1010	[(1) located in this state for longer than a temporary
1011	1011	period;
1012	1012	[(2) temporarily located outside this state and the
1013	1013	owner resides in this state; or
1014	1014	[(3) used continually, whether regularly or
1015	1015	irregularly, in this state.
1016	1016	[(d) Tangible personal property that is operated or located
1017	1017	exclusively outside this state during the year preceding the tax
1018	1018	year and on January 1 of the tax year is not taxable in this state.
1019	1019	[(e) For purposes of Subsection (c)(3), property is
1020	1020	considered to be used continually, whether regularly or
1021	1021	irregularly, in this state if the property is used in this state
1022	1022	three or more times on regular routes or for three or more completed
1023	1023	assignments occurring in close succession throughout the year. For
1024	1024	purposes of this subsection, a series of events are considered to
1025	1025	occur in close succession throughout the year if they occur in
1026	1026	sequence within a short period at intervals from the beginning to
1027	1027	the end of the year.]
1028	1028	SECTION 30. Section 11.18(a), Tax Code, is amended to read
1029	1029	as follows:
1030	1030	(a) An organization that qualifies as a charitable
1031	1031	organization as provided by this section is entitled to an
1032	1032	exemption from taxation of:
1033	1033	(1) the buildings [and tangible personal property]
1034	1034	that:
1035	1035	(A) are owned by the charitable organization; and
1036	1036	(B) except as permitted by Subsection (b), are
1037	1037	used exclusively by qualified charitable organizations; and
1038	1038	(2) the real property owned by the charitable
1039	1039	organization consisting of:
1040	1040	(A) an incomplete improvement that:
1041	1041	(i) is under active construction or other
1042	1042	physical preparation; and
1043	1043	(ii) is designed and intended to be used
1044	1044	exclusively by qualified charitable organizations; and
1045	1045	(B) the land on which the incomplete improvement
1046	1046	is located that will be reasonably necessary for the use of the
1047	1047	improvement by qualified charitable organizations.
1048	1048	SECTION 31. Section 11.181(c), Tax Code, is amended to read
1049	1049	as follows:
1050	1050	(c) An organization entitled to an exemption under
1051	1051	Subsection (a) is also entitled to an exemption from taxation of any
1052	1052	building [or tangible personal property] the organization owns and
1053	1053	uses in the administration of its acquisition, building, repair, or
1054	1054	sale of property. To qualify for an exemption under this
1055	1055	subsection, property must be used exclusively by the charitable
1056	1056	organization, except that another individual or organization may
1057	1057	use the property for activities incidental to the charitable
1058	1058	organization's use that benefit the beneficiaries of the charitable
1059	1059	organization.
1060	1060	SECTION 32. Section 11.182(f), Tax Code, is amended to read
1061	1061	as follows:
1062	1062	(f) An organization entitled to an exemption under
1063	1063	Subsection (b) is also entitled to an exemption from taxation of any
1064	1064	building [or tangible personal property] the organization owns and
1065	1065	uses in the administration of its acquisition, building, repair,
1066	1066	sale, or rental of property. To qualify for an exemption under this
1067	1067	subsection, property must be used exclusively by the organization,
1068	1068	except that another person may use the property for activities
1069	1069	incidental to the organization's use that benefit the beneficiaries
1070	1070	of the organization.
1071	1071	SECTION 33. Section 11.1827(d), Tax Code, is amended to
1072	1072	read as follows:
1073	1073	(d) A community land trust entitled to an exemption from
1074	1074	taxation by a taxing unit under Subsection (b) is also entitled to
1075	1075	an exemption from taxation by the taxing unit of any real [or
1076	1076	tangible personal] property the trust owns and uses in the
1077	1077	administration of its acquisition, construction, repair, sale, or
1078	1078	leasing of property. To qualify for an exemption under this
1079	1079	subsection, property must be used exclusively by the trust, except
1080	1080	that another person may use the property for activities incidental
1081	1081	to the trust's use that benefit the beneficiaries of the trust.
1082	1082	SECTION 34. Section 11.184(c), Tax Code, is amended to read
1083	1083	as follows:
1084	1084	(c) A qualified charitable organization is entitled to an
1085	1085	exemption from taxation of:
1086	1086	(1) the buildings and other real property [and the
1087	1087	tangible personal property] that:
1088	1088	(A) are owned by the organization; and
1089	1089	(B) except as permitted by Subsection (d), are
1090	1090	used exclusively by the organization and other organizations
1091	1091	eligible for an exemption from taxation under this section or
1092	1092	Section 11.18; and
1093	1093	(2) the real property owned by the organization
1094	1094	consisting of:
1095	1095	(A) an incomplete improvement that:
1096	1096	(i) is under active construction or other
1097	1097	physical preparation; and
1098	1098	(ii) is designed and intended to be used
1099	1099	exclusively by the organization and other organizations eligible
1100	1100	for an exemption from taxation under this section or Section 11.18;
1101	1101	and
1102	1102	(B) the land on which the incomplete improvement
1103	1103	is located that will be reasonably necessary for the use of the
1104	1104	improvement by the organization and other organizations eligible
1105	1105	for an exemption from taxation under this section or Section 11.18.
1106	1106	SECTION 35. Section 11.185(c), Tax Code, is amended to read
1107	1107	as follows:
1108	1108	(c) An organization entitled to an exemption under
1109	1109	Subsection (a) is also entitled to an exemption from taxation of any
1110	1110	building [or tangible personal property] the organization owns and
1111	1111	uses in the administration of its acquisition, building, repair, or
1112	1112	sale of property. To qualify for an exemption under this
1113	1113	subsection, property must be used exclusively by the charitable
1114	1114	organization, except that another individual or organization may
1115	1115	use the property for activities incidental to the charitable
1116	1116	organization's use that benefit the beneficiaries of the charitable
1117	1117	organization.
1118	1118	SECTION 36. Sections 11.20(a), (d), (f), (g), (h), (j), and
1119	1119	(k), Tax Code, are amended to read as follows:
1120	1120	(a) An organization that qualifies as a religious
1121	1121	organization as provided by Subsection (c) is entitled to an
1122	1122	exemption from taxation of:
1123	1123	(1) the real property that is owned by the religious
1124	1124	organization, is used primarily as a place of regular religious
1125	1125	worship, and is reasonably necessary for engaging in religious
1126	1126	worship;
1127	1127	(2) [the tangible personal property that is owned by
1128	1128	the religious organization and is reasonably necessary for engaging
1129	1129	in worship at the place of worship specified in Subdivision (1);
1130	1130	[(3)] the real property that is owned by the religious
1131	1131	organization and is reasonably necessary for use as a residence
1132	1132	(but not more than one acre of land for each residence) if the
1133	1133	property:
1134	1134	(A) is used exclusively as a residence for those
1135	1135	individuals whose principal occupation is to serve in the clergy of
1136	1136	the religious organization; and
1137	1137	(B) produces no revenue for the religious
1138	1138	organization;
1139	1139	(3) [(4) the tangible personal property that is owned
1140	1140	by the religious organization and is reasonably necessary for use
1141	1141	of the residence specified by Subdivision (3);
1142	1142	[(5)] the real property owned by the religious
1143	1143	organization consisting of:
1144	1144	(A) an incomplete improvement that is under
1145	1145	active construction or other physical preparation and that is
1146	1146	designed and intended to be used by the religious organization as a
1147	1147	place of regular religious worship when complete; and
1148	1148	(B) the land on which the incomplete improvement
1149	1149	is located that will be reasonably necessary for the religious
1150	1150	organization's use of the improvement as a place of regular
1151	1151	religious worship;
1152	1152	(4) [(6)] the land that the religious organization
1153	1153	owns for the purpose of expansion of the religious organization's
1154	1154	place of regular religious worship or construction of a new place of
1155	1155	regular religious worship if:
1156	1156	(A) the religious organization qualifies other
1157	1157	property, including a portion of the same tract or parcel of land,
1158	1158	owned by the organization for an exemption under Subdivision (1) or
1159	1159	(3) [(5)]; and
1160	1160	(B) the land produces no revenue for the
1161	1161	religious organization; and
1162	1162	(5) [(7)] the real property owned by the religious
1163	1163	organization that is leased to another person and used by that
1164	1164	person for the operation of a school that qualifies as a school
1165	1165	under Section 11.21(d).
1166	1166	(d) Use of property that qualifies for the exemption
1167	1167	prescribed by Subsection (a)(1) [or (2)] or by Subsection (h)(1)
1168	1168	for occasional secular purposes other than religious worship does
1169	1169	not result in loss of the exemption if the primary use of the
1170	1170	property is for religious worship and all income from the other use
1171	1171	is devoted exclusively to the maintenance and development of the
1172	1172	property as a place of religious worship.
1173	1173	(f) A property may not be exempted under Subsection (a)(3)
1174	1174	[(a)(5)] for more than three years.
1175	1175	(g) For purposes of Subsection (a)(3) [(a)(5)], an
1176	1176	incomplete improvement is under physical preparation if the
1177	1177	religious organization has engaged in architectural or engineering
1178	1178	work, soil testing, land clearing activities, or site improvement
1179	1179	work necessary for the construction of the improvement or has
1180	1180	conducted an environmental or land use study relating to the
1181	1181	construction of the improvement.
1182	1182	(h) Property owned by this state or a political subdivision
1183	1183	of this state, including a leasehold or other possessory interest
1184	1184	in the property, that is held or occupied by an organization that
1185	1185	qualifies as a religious organization as provided by Subsection (c)
1186	1186	is entitled to an exemption from taxation if the property:
1187	1187	(1) is used by the organization primarily as a place of
1188	1188	regular religious worship and is reasonably necessary for engaging
1189	1189	in religious worship; or
1190	1190	(2) meets the qualifications for an exemption under
1191	1191	Subsection (a)(3) [(a)(5)].
1192	1192	(j) A tract of land that is contiguous to the tract of land
1193	1193	on which the religious organization's place of regular religious
1194	1194	worship is located may not be exempted under Subsection (a)(4)
1195	1195	[(a)(6)] for more than six years. A tract of land that is not
1196	1196	contiguous to the tract of land on which the religious
1197	1197	organization's place of regular religious worship is located may
1198	1198	not be exempted under Subsection (a)(4) [(a)(6)] for more than
1199	1199	three years. For purposes of this subsection, a tract of land is
1200	1200	considered to be contiguous with another tract of land if the tracts
1201	1201	are divided only by a road, railroad track, river, or stream.
1202	1202	(k) For purposes of Subsection (a)(4) [(a)(6)], an
1203	1203	application or statement accompanying an application for the
1204	1204	exemption stating that the land is owned for the purposes described
1205	1205	by Subsection (a)(4) [(a)(6)] and signed by an authorized officer
1206	1206	of the organization is sufficient to establish that the land is
1207	1207	owned for those purposes.
1208	1208	SECTION 37. Sections 11.201(a) and (c), Tax Code, are
1209	1209	amended to read as follows:
1210	1210	(a) If land is sold or otherwise transferred to another
1211	1211	person in a year in which the land receives an exemption under
1212	1212	Section 11.20(a)(4) [11.20(a)(6)], an additional tax is imposed on
1213	1213	the land equal to the tax that would have been imposed on the land
1214	1214	had the land been taxed for each of the five years preceding the
1215	1215	year in which the sale or transfer occurs in which the land received
1216	1216	an exemption under that subsection, plus interest at an annual rate
1217	1217	of seven percent calculated from the dates on which the taxes would
1218	1218	have become due.
1219	1219	(c) If only part of a parcel of land that is exempted under
1220	1220	Section 11.20(a)(4) [11.20(a)(6)] is sold or transferred, the tax
1221	1221	applies only to that part of the parcel and equals the taxes that
1222	1222	would have been imposed had that part been taxed.
1223	1223	SECTION 38. Sections 11.21(a), (b), and (f), Tax Code, are
1224	1224	amended to read as follows:
1225	1225	(a) A person is entitled to an exemption from taxation of:
1226	1226	(1) the buildings [and tangible personal property]
1227	1227	that the person owns and that are used for a school that is
1228	1228	qualified as provided by Subsection (d) if:
1229	1229	(A) the school is operated exclusively by the
1230	1230	person owning the property;
1231	1231	(B) except as permitted by Subsection (b), the
1232	1232	buildings [and tangible personal property] are used exclusively for
1233	1233	educational functions; and
1234	1234	(C) the buildings [and tangible personal
1235	1235	property] are reasonably necessary for the operation of the school;
1236	1236	and
1237	1237	(2) the real property owned by the person consisting
1238	1238	of:
1239	1239	(A) an incomplete improvement that:
1240	1240	(i) is under active construction or other
1241	1241	physical preparation; and
1242	1242	(ii) is designed and intended to be used for
1243	1243	a school that is qualified as provided by Subsection (d); and
1244	1244	(B) the land on which the incomplete improvement
1245	1245	is located that will be reasonably necessary for the use of the
1246	1246	improvement for a school that is qualified as provided by
1247	1247	Subsection (d).
1248	1248	(b) Use of exempt [tangible] property for functions other
1249	1249	than educational functions does not result in loss of an exemption
1250	1250	authorized by this section if those other functions are incidental
1251	1251	to use of the property for educational functions and benefit the
1252	1252	students or faculty of the school.
1253	1253	(f) Notwithstanding Subsection (a), a person is entitled to
1254	1254	an exemption from taxation of the buildings [and tangible personal
1255	1255	property] the person acquires for use for a school that meets each
1256	1256	requirement of Subsection (d) if:
1257	1257	(1) the person authorizes the former owner to continue
1258	1258	to use the property pending the use of the property for a school;
1259	1259	and
1260	1260	(2) the former owner would be entitled to an exemption
1261	1261	from taxation of the property if the former owner continued to own
1262	1262	the property.
1263	1263	SECTION 39. Section 11.23(m), Tax Code, is amended to read
1264	1264	as follows:
1265	1265	(m) National Hispanic Institute. The National Hispanic
1266	1266	Institute is entitled to an exemption from taxation of the real [and
1267	1267	tangible personal] property it owns as long as the organization is
1268	1268	exempt from federal income taxation under Section 501(a), Internal
1269	1269	Revenue Code of 1986, as an organization described by Section
1270	1270	501(c)(3) of that code.
1271	1271	SECTION 40. Section 11.231(b), Tax Code, is amended to read
1272	1272	as follows:
1273	1273	(b) An association that qualifies as a nonprofit community
1274	1274	business organization as provided by this section is entitled to an
1275	1275	exemption from taxation of:
1276	1276	(1) the buildings [and tangible personal property]
1277	1277	that:
1278	1278	(A) are owned by the nonprofit community business
1279	1279	organization; and
1280	1280	(B) except as permitted by Subsection (c), are
1281	1281	used exclusively by qualified nonprofit community business
1282	1282	organizations to perform their primary functions; and
1283	1283	(2) the real property owned by the nonprofit community
1284	1284	business organization consisting of:
1285	1285	(A) an incomplete improvement that:
1286	1286	(i) is under active construction or other
1287	1287	physical preparation; and
1288	1288	(ii) is designed and intended to be used
1289	1289	exclusively by qualified nonprofit community business
1290	1290	organizations; and
1291	1291	(B) the land on which the incomplete improvement
1292	1292	is located that will be reasonably necessary for the use of the
1293	1293	improvement by qualified nonprofit community business
1294	1294	organizations.
1295	1295	SECTION 41. Sections 11.43(a), (b), (c), and (e), Tax Code,
1296	1296	are amended to read as follows:
1297	1297	(a) To receive an exemption, a person claiming the
1298	1298	exemption, other than an exemption authorized by Section 11.11,
1299	1299	11.12, or [11.14, 11.145,] 11.146[, 11.15, 11.16, 11.161, or 11.25
1300	1300	of this code], must apply for the exemption. To apply for an
1301	1301	exemption, a person must file an exemption application form with
1302	1302	the chief appraiser for the [each] appraisal office established for
1303	1303	each county [district] in which the property subject to the claimed
1304	1304	exemption has situs.
1305	1305	(b) Except as provided by Subsection (c) and by Section
1306	1306	[Sections] 11.184 [and 11.437], a person required to apply for an
1307	1307	exemption must apply each year the person claims entitlement to the
1308	1308	exemption.
1309	1309	(c) An exemption provided by Section 11.13, 11.131, 11.132,
1310	1310	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
1311	1311	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
1312	1312	[11.254,] 11.27, [11.271,] 11.29, 11.30, or 11.31, [or 11.315,]
1313	1313	once allowed, need not be claimed in subsequent years, and except as
1314	1314	otherwise provided by Subsection (e), the exemption applies to the
1315	1315	property until it changes ownership or the person's qualification
1316	1316	for the exemption changes. However, except as provided by
1317	1317	Subsection (r), the chief appraiser may require a person allowed
1318	1318	one of the exemptions in a prior year to file a new application to
1319	1319	confirm the person's current qualification for the exemption by
1320	1320	delivering a written notice that a new application is required,
1321	1321	accompanied by an appropriate application form, to the person
1322	1322	previously allowed the exemption. If the person previously allowed
1323	1323	the exemption is 65 years of age or older, the chief appraiser may
1324	1324	not cancel the exemption due to the person's failure to file the new
1325	1325	application unless the chief appraiser complies with the
1326	1326	requirements of Subsection (q), if applicable.
1327	1327	(e) Except as provided by Section 11.422, 11.431, 11.433,
1328	1328	11.434, 11.435, or 11.439, [or 11.4391,] if a person required to
1329	1329	apply for an exemption in a given year fails to file timely a
1330	1330	completed application form, the person may not receive the
1331	1331	exemption for that year.
1332	1332	SECTION 42. Section 21.06(a), Tax Code, is amended to read
1333	1333	as follows:
1334	1334	(a) Except as provided by Section 21.08 [Sections 21.07
1335	1335	through 21.09 of this code], intangible property is taxable by a
1336	1336	taxing unit if the owner of the property resides in the unit on
1337	1337	January 1, unless the property normally is used in this state for
1338	1338	business purposes outside the unit. In that event, the intangible
1339	1339	property is taxable by each taxing unit in which the property
1340	1340	normally is used for business purposes.
1341	1341	SECTION 43. Sections 22.01(a), (b), (c), (c-2), (f), and
1342	1342	(g), Tax Code, are amended to read as follows:
1343	1343	(a) [Except as provided by Chapter 24, a person shall render
1344	1344	for taxation all tangible personal property used for the production
1345	1345	of income that the person owns or that the person manages and
1346	1346	controls as a fiduciary on January 1.] A rendition statement shall
1347	1347	contain:
1348	1348	(1) the name and address of the property owner;
1349	1349	(2) a description of the property by type or category;
1350	1350	(3) [if the property is inventory, a description of
1351	1351	each type of inventory and a general estimate of the quantity of
1352	1352	each type of inventory;
1353	1353	[(4)] the physical location or taxable situs of the
1354	1354	property; and
1355	1355	(4) [(5)] the property owner's good faith estimate of
1356	1356	the market value of the property or, at the option of the property
1357	1357	owner, the historical cost when new and the year of acquisition of
1358	1358	the property.
1359	1359	(b) When required by the chief appraiser, a person shall
1360	1360	render for taxation any [other] taxable property that the person
1361	1361	[he] owns or that the person [he] manages and controls as a
1362	1362	fiduciary on January 1.
1363	1363	(c) A person may render for taxation any property that the
1364	1364	person [he] owns or that the person [he] manages and controls as a
1365	1365	fiduciary on January 1, although the person [he] is not required to
1366	1366	render it by Subsection [(a) or] (b) [of this section].
1367	1367	(c-2) With the consent of the property owner, a secured
1368	1368	party may render for taxation any property of the property owner in
1369	1369	which the secured party has a security interest on January 1,
1370	1370	although the secured party is not required to render the property by
1371	1371	Subsection [(a) or] (b). This subsection applies only to property
1372	1372	that has a historical cost when new of more than $50,000.
1373	1373	(f) Notwithstanding Subsection [Subsections] (a) [and (b)],
1374	1374	a rendition statement of a person who owns [tangible personal]
1375	1375	property [used for the production of income] located in the county
1376	1376	for which the appraisal office is established [district] that, in
1377	1377	the owner's opinion, has an aggregate value of less than $20,000 is
1378	1378	required to contain only:
1379	1379	(1) the name and address of the property owner;
1380	1380	(2) a general description of the property by type or
1381	1381	category; and
1382	1382	(3) the physical location or taxable situs of the
1383	1383	property.
1384	1384	(g) A person's good faith estimate of the market value of
1385	1385	the property under Subsection (a)(4) [(a)(5)] is solely for the
1386	1386	purpose of compliance with any [the] requirement to render
1387	1387	[tangible personal] property and is inadmissible in any subsequent
1388	1388	protest, hearing, appeal, suit, or other proceeding under this
1389	1389	title involving the property, except for:
1390	1390	(1) a proceeding to determine whether the person
1391	1391	complied with this section;
1392	1392	(2) a proceeding under Section 22.29(b); or
1393	1393	(3) a protest under Section 41.41.
1394	1394	SECTION 44. Section 22.02, Tax Code, is amended to read as
1395	1395	follows:
1396	1396	Sec. 22.02. RENDITION OF PROPERTY LOSING EXEMPTION DURING
1397	1397	TAX YEAR [OR FOR WHICH EXEMPTION APPLICATION IS DENIED]. [(a)] If
1398	1398	an exemption applicable to a property on January 1 terminates
1399	1399	during the tax year, the person who owns or acquires the property on
1400	1400	the date applicability of the exemption terminates shall render the
1401	1401	property for taxation within 30 days after the date of termination.
1402	1402	[(b) If the chief appraiser denies an application for an
1403	1403	exemption for property described by Section 22.01(a), the person
1404	1404	who owns the property on the date the application is denied shall
1405	1405	render the property for taxation in the manner provided by Section
1406	1406	22.01 within 30 days after the date of denial.]
1407	1407	SECTION 45. Section 22.05, Tax Code, is amended to read as
1408	1408	follows:
1409	1409	Sec. 22.05. RENDITION BY RAILROAD. (a) A [In addition to
1410	1410	other reports required by Chapter 24 of this code, a] railroad
1411	1411	corporation shall render the real property the railroad corporation
1412	1412	owns or possesses as of January 1.
1413	1413	(b) The rendition shall:
1414	1414	(1) list all real property other than the property
1415	1415	covered by Subdivision (2) [of this subsection]; and
1416	1416	(2) list the number of miles of railroad together with
1417	1417	the market value per mile, which value shall include right-of-way,
1418	1418	roadbed, superstructure, and all buildings and improvements used in
1419	1419	the operation of the railroad[; and
1420	1420	[(3) list all personal property as required by Section
1421	1421	22.01 of this code].
1422	1422	SECTION 46. The heading to Section 22.07, Tax Code, is
1423	1423	amended to read as follows:
1424	1424	Sec. 22.07. STATEMENT INDICATING HOW VALUE RENDERED
1425	1425	[INSPECTION OF PROPERTY].
1426	1426	SECTION 47. Section 22.07, Tax Code, is amended by amending
1427	1427	Subsection (c) and adding Subsection (c-1) to read as follows:
1428	1428	(c) The chief appraiser may request, either in writing or by
1429	1429	electronic means, that the property owner provide a statement
1430	1430	containing supporting information indicating how the value
1431	1431	rendered under Section 22.01(a)(4) [22.01(a)(5)] was determined.
1432	1432	The statement must:
1433	1433	(1) summarize information sufficient to identify the
1434	1434	property, including:
1435	1435	(A) the physical and economic characteristics
1436	1436	relevant to the opinion of value, if appropriate; and
1437	1437	(B) the source of the information used;
1438	1438	(2) state the effective date of the opinion of value;
1439	1439	and
1440	1440	(3) explain the basis of the value rendered.
1441	1441	(c-1) If the property owner is a business with 50 employees
1442	1442	or less, the property owner may base the estimate of value on the
1443	1443	depreciation schedules used for federal income tax purposes.
1444	1444	SECTION 48. Section 23.01(f), Tax Code, is amended to read
1445	1445	as follows:
1446	1446	(f) The selection of comparable properties and the
1447	1447	application of appropriate adjustments for the determination of an
1448	1448	appraised value of property by any person under Section 41.43(b)
1449	1449	[41.43(b)(3)] or 42.26(a) [42.26(a)(3)] must be based on the
1450	1450	application of generally accepted appraisal methods and
1451	1451	techniques. Adjustments must be based on recognized methods and
1452	1452	techniques that are necessary to produce a credible opinion.
1453	1453	SECTION 49. Section 23.0101, Tax Code, is amended to read as
1454	1454	follows:
1455	1455	Sec. 23.0101. CONSIDERATION OF ALTERNATE APPRAISAL
1456	1456	METHODS. (a) Except as provided by Subsections (b) and (c), in
1457	1457	[In] determining the market value of property, the chief appraiser
1458	1458	shall consider the cost, income, and market data comparison methods
1459	1459	of appraisal and use the most appropriate method.
1460	1460	(b) In determining the market value of residential real
1461	1461	property consisting of a single-family home, duplex, triplex, or
1462	1462	quadraplex constructed by or on behalf of the owner, the chief
1463	1463	appraiser shall use the cost method of appraisal.
1464	1464	(c) Except as otherwise provided by this title, in
1465	1465	determining the market value of real property other than a
1466	1466	single-family home, duplex, triplex, quadraplex, or tract of
1467	1467	unimproved land, the chief appraiser shall use the income method of
1468	1468	appraisal.
1469	1469	SECTION 50. Section 23.014, Tax Code, is amended to read as
1470	1470	follows:
1471	1471	Sec. 23.014. EXCLUSION OF PROPERTY AS REAL PROPERTY. In
1472	1472	[Except as provided by Section 23.24(b), in] determining the market
1473	1473	value of real property, the chief appraiser shall analyze the
1474	1474	effect on that value of, and exclude from that value the value of,
1475	1475	any:
1476	1476	(1) tangible personal property, including trade
1477	1477	fixtures;
1478	1478	(2) intangible personal property; or
1479	1479	(3) other property that is not subject to appraisal as
1480	1480	real property.
1481	1481	SECTION 51. Section 23.02, Tax Code, is amended to read as
1482	1482	follows:
1483	1483	Sec. 23.02. REAPPRAISAL OF PROPERTY DAMAGED IN DISASTER
1484	1484	AREA. (a) The chief appraiser of an appraisal office that
1485	1485	appraises property for [governing body of] a taxing unit that is
1486	1486	located partly or entirely inside an area declared to be a disaster
1487	1487	area by the governor shall reappraise [may authorize reappraisal
1488	1488	of] all property damaged in the disaster at its market value
1489	1489	immediately after the disaster.
1490	1490	(b) The chief appraiser [If a taxing unit authorizes a
1491	1491	reappraisal pursuant to this section, the appraisal office] shall
1492	1492	complete the reappraisal as soon as practicable. The chief
1493	1493	appraiser [appraisal office] shall include on the appraisal
1494	1494	records, in addition to other information required or authorized by
1495	1495	law:
1496	1496	(1) the date of the disaster; and
1497	1497	(2) the appraised value of the property after the
1498	1498	disaster[; and
1499	1499	[(3) if the reappraisal is not authorized by all
1500	1500	taxing units in which the property is located, an indication of the
1501	1501	taxing units to which the reappraisal applies].
1502	1502	(c) A taxing unit for which property is reappraised [that
1503	1503	authorizes a reappraisal] under this section must pay the appraisal
1504	1504	office [district] all the costs of making the reappraisal. If
1505	1505	property in the same territory is reappraised for two or more taxing
1506	1506	units [provide for the reappraisal in the same territory], each
1507	1507	taxing unit shall share the costs of the reappraisal in that
1508	1508	territory in the proportion the total dollar amount of taxes each
1509	1509	taxing unit imposed in that territory in the preceding year bears to
1510	1510	the total dollar amount of taxes all taxing units [providing for
1511	1511	reappraisal of that territory] imposed in that territory in the
1512	1512	preceding year.
1513	1513	(d) If property damaged in a disaster is reappraised for a
1514	1514	taxing unit as provided by this section, the governing body of the
1515	1515	taxing unit shall provide for prorating the taxes on the property
1516	1516	for the year in which the disaster occurred. The [If the taxes are]
1517	1517	prorated[,] taxes due on the property are determined as follows:
1518	1518	the taxes on the property based on its value on January 1 of that
1519	1519	year are multiplied by a fraction, the denominator of which is 365
1520	1520	and the numerator of which is the number of days before the date the
1521	1521	disaster occurred; the taxes on the property based on its
1522	1522	reappraised value are multiplied by a fraction, the denominator of
1523	1523	which is 365 and the numerator of which is the number of days,
1524	1524	including the date the disaster occurred, remaining in the year;
1525	1525	and the total of the two amounts is the amount of taxes on the
1526	1526	property for the year.
1527	1527	SECTION 52. Sections 23.12(a) and (f), Tax Code, are
1528	1528	amended to read as follows:
1529	1529	(a) The [Except as provided by Sections 23.121, 23.1241,
1530	1530	23.124, and 23.127, the] market value of a real property [an]
1531	1531	inventory is the price for which it would sell as a unit to a
1532	1532	purchaser who would continue the business. A real property [An]
1533	1533	inventory includes [shall include] residential real property which
1534	1534	has never been occupied as a residence and is held for sale in the
1535	1535	ordinary course of a trade or business, provided that the
1536	1536	residential real property remains unoccupied, is not leased or
1537	1537	rented, and produces no income.
1538	1538	(f) The owner of an inventory [other than a dealer's motor
1539	1539	vehicle inventory as that term is defined by Section 23.121, a
1540	1540	dealer's heavy equipment inventory as that term is defined by
1541	1541	Section 23.1241, or a dealer's vessel and outboard motor inventory
1542	1542	as that term is defined by Section 23.124, or a retail manufactured
1543	1543	housing inventory as that term is defined by Section 23.127] may
1544	1544	elect to have the inventory appraised at its market value as of
1545	1545	September 1 of the year preceding the tax year to which the
1546	1546	appraisal applies by filing an application with the chief appraiser
1547	1547	requesting that the inventory be appraised as of September 1. The
1548	1548	application must clearly describe the inventory to which it applies
1549	1549	and be signed by the owner of the inventory. The application
1550	1550	applies to the appraisal of the inventory in each tax year that
1551	1551	begins after the next August 1 following the date the application is
1552	1552	filed with the chief appraiser unless the owner of the inventory by
1553	1553	written notice filed with the chief appraiser revokes the
1554	1554	application or the ownership of the inventory changes. A notice
1555	1555	revoking the application is effective for each tax year that begins
1556	1556	after the next September following the date the notice of
1557	1557	revocation is filed with the chief appraiser.
1558	1558	SECTION 53. Section 23.23(a), Tax Code, is amended to read
1559	1559	as follows:
1560	1560	(a) Regardless [Notwithstanding the requirements of Section
1561	1561	25.18 and regardless] of whether the appraisal office has appraised
1562	1562	the property and determined the market value of the property for the
1563	1563	tax year, an appraisal office may increase the appraised value of a
1564	1564	residence homestead for a tax year to an amount not to exceed the
1565	1565	lesser of:
1566	1566	(1) the market value of the property for the most
1567	1567	recent tax year that the market value was determined by the
1568	1568	appraisal office; or
1569	1569	(2) the sum of:
1570	1570	(A) 10 percent of the appraised value of the
1571	1571	property for the preceding tax year;
1572	1572	(B) the appraised value of the property for the
1573	1573	preceding tax year; and
1574	1574	(C) the market value of all new improvements to
1575	1575	the property.
1576	1576	SECTION 54. Subchapter B, Chapter 23, Tax Code, is amended
1577	1577	by adding Section 23.231 to read as follows:
1578	1578	Sec. 23.231. LIMITATION ON APPRAISED VALUE OF CERTAIN REAL
1579	1579	PROPERTY. (a) This section applies only to residential real
1580	1580	property consisting of a single-family home, duplex, triplex, or
1581	1581	quadraplex or to a tract of unimproved land that the owner acquired
1582	1582	as a bona fide purchaser for value.
1583	1583	(b) This section applies to property only if the owner
1584	1584	discloses the purchase price the owner paid for the property to the
1585	1585	appraisal office.
1586	1586	(c) This section does not apply to property if:
1587	1587	(1) the purchase of the property was made:
1588	1588	(A) pursuant to a court order;
1589	1589	(B) from a trustee in bankruptcy;
1590	1590	(C) by one co-owner from one or more other
1591	1591	co-owners;
1592	1592	(D) from a spouse or a person or persons within
1593	1593	the first or second degree of lineal consanguinity of one or more of
1594	1594	the purchasers; or
1595	1595	(E) from a governmental entity; or
1596	1596	(2) the chief appraiser determines that the owner of
1597	1597	the property was not a bona fide purchaser for value under criteria
1598	1598	established by rules adopted by the comptroller for that purpose.
1599	1599	(d) Regardless of whether the appraisal office has
1600	1600	appraised the property and determined the market value of the
1601	1601	property for the tax year, the appraised value of property for a tax
1602	1602	year may not exceed the lesser of:
1603	1603	(1) the market value of the property; or
1604	1604	(2) the sum of:
1605	1605	(A) the purchase price paid by the property owner
1606	1606	for the property; and
1607	1607	(B) the market value of each new improvement to
1608	1608	the property as of January 1 of the first tax year in which the
1609	1609	improvement was added to the appraisal roll.
1610	1610	(e) When appraising property, the chief appraiser shall:
1611	1611	(1) appraise the property at its market value; and
1612	1612	(2) include in the appraisal records both the market
1613	1613	value of the property and the amount computed under Subsection
1614	1614	(d)(2).
1615	1615	(f) The limitation provided by Subsection (a) takes effect
1616	1616	as to property on January 1 of the first tax year the owner
1617	1617	qualifies the property for a limitation under this section. The
1618	1618	limitation expires on January 1 of the first tax year that neither
1619	1619	the owner of the property when the limitation took effect nor the
1620	1620	owner's spouse or surviving spouse qualifies for the limitation.
1621	1621	(g) This section does not apply to property appraised under
1622	1622	Subchapter C, D, E, F, or G.
1623	1623	(h) To receive a limitation on appraised value under this
1624	1624	section, the owner of the property must apply for the limitation.
1625	1625	To apply for the limitation, the owner must file an application with
1626	1626	the chief appraiser for each appraisal office in which the property
1627	1627	subject to the claimed limitation has situs. The application must
1628	1628	be filed not later than May 1 of the year after the year in which the
1629	1629	owner acquired the property. The comptroller by rule shall
1630	1630	prescribe the form for the application to ensure that the applicant
1631	1631	furnishes the information necessary to determine the applicant's
1632	1632	eligibility for the limitation, including the price for which the
1633	1633	applicant acquired the property.
1634	1634	(i) In this section, "new improvement" means an improvement
1635	1635	to property made since the owner acquired the property that
1636	1636	increases the market value of the property. The term does not
1637	1637	include repairs to or ordinary maintenance of an existing structure
1638	1638	or the grounds or another feature of the property.
1639	1639	(j) Notwithstanding Subsections (d) and (i) and except as
1640	1640	provided by Subdivision (2) of this subsection, an improvement to
1641	1641	property that would otherwise constitute a new improvement is not
1642	1642	treated as a new improvement if the improvement is a replacement
1643	1643	structure for a structure that was rendered uninhabitable or
1644	1644	unusable by a casualty or by wind or water damage. For purposes of
1645	1645	appraising the property under Subsection (d) in the tax year in
1646	1646	which the structure would have constituted a new improvement:
1647	1647	(1) the appraised value the property would have had in
1648	1648	the preceding tax year if the casualty or damage had not occurred is
1649	1649	considered to be the appraised value of the property for that year,
1650	1650	regardless of whether that appraised value exceeds the actual
1651	1651	appraised value of the property for that year as limited by
1652	1652	Subsection (d); and
1653	1653	(2) the replacement structure is considered to be a
1654	1654	new improvement only if:
1655	1655	(A) the square footage of the replacement
1656	1656	structure exceeds that of the replaced structure as that structure
1657	1657	existed before the casualty or damage occurred; or
1658	1658	(B) the exterior of the replacement structure is
1659	1659	of higher quality construction and composition than that of the
1660	1660	replaced structure.
1661	1661	(k) In this subsection, "disaster recovery program" means
1662	1662	the disaster recovery program administered by the General Land
1663	1663	Office that is funded with community development block grant
1664	1664	disaster recovery money authorized by the Consolidated Security,
1665	1665	Disaster Assistance, and Continuing Appropriations Act, 2009 (Pub.
1666	1666	L. No. 110-329), and the Consolidated and Further Continuing
1667	1667	Appropriations Act, 2012 (Pub. L. No. 112-55). Notwithstanding
1668	1668	Subsection (j)(2), and only to the extent necessary to satisfy the
1669	1669	requirements of the disaster recovery program, a replacement
1670	1670	structure described by that subdivision is not considered to be a
1671	1671	new improvement if to satisfy the requirements of the disaster
1672	1672	recovery program it was necessary that:
1673	1673	(1) the square footage of the replacement structure
1674	1674	exceed that of the replaced structure as that structure existed
1675	1675	before the casualty or damage occurred; or
1676	1676	(2) the exterior of the replacement structure be of
1677	1677	higher quality construction and composition than that of the
1678	1678	replaced structure.
1679	1679	(l) For purposes of Subsection (d)(2)(B), an improvement is
1680	1680	considered to be a new improvement in a tax year if the market value
1681	1681	of the improvement increased from the value of the improvement in
1682	1682	the preceding tax year because the improvement was not complete in
1683	1683	the preceding tax year.
1684	1684	SECTION 55. The heading to Section 25.18, Tax Code, is
1685	1685	amended to read as follows:
1686	1686	Sec. 25.18. REAPPRAISAL OF PROPERTY [PERIODIC
1687	1687	REAPPRAISALS].
1688	1688	SECTION 56. Section 25.18(a), Tax Code, is amended to read
1689	1689	as follows:
1690	1690	(a) An [Each] appraisal office may reappraise [shall
1691	1691	implement the plan for periodic reappraisal of] property if the
1692	1692	chief appraiser determines that conditions warrant the reappraisal
1693	1693	[approved by the board of directors under Section 6.05(i)].
1694	1694	SECTION 57. Section 25.19(b), Tax Code, is amended to read
1695	1695	as follows:
1696	1696	(b) The chief appraiser shall [separate real from personal
1697	1697	property and] include in the notice for each property:
1698	1698	(1) a list of the taxing units in which the property is
1699	1699	taxable;
1700	1700	(2) the appraised value of the property in the
1701	1701	preceding year;
1702	1702	(3) the taxable value of the property in the preceding
1703	1703	year for each taxing unit taxing the property;
1704	1704	(4) the appraised value of the property for the
1705	1705	current year, the kind and amount of each exemption and partial
1706	1706	exemption, if any, approved for the property for the current year
1707	1707	and for the preceding year, and, if an exemption or partial
1708	1708	exemption that was approved for the preceding year was canceled or
1709	1709	reduced for the current year, the amount of the exemption or partial
1710	1710	exemption canceled or reduced;
1711	1711	(5) if the appraised value is greater than it was in
1712	1712	the preceding year, the amount of tax that would be imposed on the
1713	1713	property on the basis of the tax rate for the preceding year;
1714	1714	(6) in italic typeface, the following statement: "The
1715	1715	Texas Legislature does not set the amount of your local taxes. Your
1716	1716	property tax burden is decided by your locally elected officials,
1717	1717	and all inquiries concerning your taxes should be directed to those
1718	1718	officials";
1719	1719	(7) a detailed explanation of the time and procedure
1720	1720	for protesting the value;
1721	1721	(8) the date and place the appraisal review board will
1722	1722	begin hearing protests; and
1723	1723	(9) a brief explanation that the governing body of
1724	1724	each taxing unit decides whether or not taxes on the property will
1725	1725	increase and the appraisal office [district] only determines the
1726	1726	value of the property.
1727	1727	SECTION 58. Sections 26.012(6) and (15), Tax Code, are
1728	1728	amended to read as follows:
1729	1729	(6) "Current total value" means the total taxable
1730	1730	value of property listed on the appraisal roll for the current year,
1731	1731	including all appraisal roll supplements and corrections as of the
1732	1732	date of the calculation, less the taxable value of property
1733	1733	exempted for the current tax year for the first time under Section
1734	1734	11.31 [or 11.315], except that:
1735	1735	(A) the current total value for a school district
1736	1736	excludes:
1737	1737	(i) the total value of homesteads that
1738	1738	qualify for a tax limitation as provided by Section 11.26; and
1739	1739	(ii) new property value of property that is
1740	1740	subject to an agreement entered into under Chapter 313; and
1741	1741	(B) the current total value for a county,
1742	1742	municipality, or junior college district excludes the total value
1743	1743	of homesteads that qualify for a tax limitation provided by Section
1744	1744	11.261.
1745	1745	(15) "Lost property levy" means the amount of taxes
1746	1746	levied in the preceding year on property value that was taxable in
1747	1747	the preceding year but is not taxable in the current year because
1748	1748	the property is exempt in the current year under a provision of this
1749	1749	code [other than Section 11.251 or 11.253], the property has
1750	1750	qualified for special appraisal under Chapter 23 in the current
1751	1751	year, or the property is located in territory that has ceased to be
1752	1752	a part of the unit since the preceding year.
1753	1753	SECTION 59. Section 26.09(b), Tax Code, is amended to read
1754	1754	as follows:
1755	1755	(b) [The county assessor-collector shall add the properties
1756	1756	and their values certified to him as provided by Chapter 24 of this
1757	1757	code to the appraisal roll for county tax purposes.] The county
1758	1758	assessor-collector shall use the appraisal roll certified to the
1759	1759	county assessor-collector [him] as provided by Section 26.01 [with
1760	1760	the added properties and values] to calculate county taxes.
1761	1761	SECTION 60. Section 31.032(a), Tax Code, is amended to read
1762	1762	as follows:
1763	1763	(a) This section applies only to:
1764	1764	(1) real property that:
1765	1765	(A) is:
1766	1766	(i) the residence homestead of the owner or
1767	1767	consists of property that is used for residential purposes and that
1768	1768	has fewer than five living units; or
1769	1769	(ii) owned or leased by a business entity
1770	1770	that had not more than the amount calculated as provided by
1771	1771	Subsection (h) in gross receipts in the entity's most recent
1772	1772	federal tax year or state franchise tax annual period, according to
1773	1773	the applicable federal income tax return or state franchise tax
1774	1774	report of the entity;
1775	1775	(B) is located in a disaster area; and
1776	1776	(C) has been damaged as a direct result of the
1777	1777	disaster; and
1778	1778	(2) [tangible personal property that is owned or
1779	1779	leased by a business entity described by Subdivision (1)(A)(ii);
1780	1780	and
1781	1781	[(3)] taxes that are imposed on the property by a
1782	1782	taxing unit before the first anniversary of the disaster.
1783	1783	SECTION 61. Section 41.43(b), Tax Code, is amended to read
1784	1784	as follows:
1785	1785	(b) A protest on the ground of unequal appraisal of property
1786	1786	shall be determined in favor of the protesting party unless the
1787	1787	appraisal office [district] establishes that[:
1788	1788	[(1) the appraisal ratio of the property is equal to or
1789	1789	less than the median level of appraisal of a reasonable and
1790	1790	representative sample of other properties in the appraisal
1791	1791	district;
1792	1792	[(2) the appraisal ratio of the property is equal to or
1793	1793	less than the median level of appraisal of a sample of properties in
1794	1794	the appraisal district consisting of a reasonable number of other
1795	1795	properties similarly situated to, or of the same general kind or
1796	1796	character as, the property subject to the protest; or
1797	1797	[(3)] the appraised value of the property is equal to
1798	1798	or less than the median appraised value of a reasonable number of
1799	1799	comparable properties appropriately adjusted.
1800	1800	SECTION 62. Section 41.44(a), Tax Code, is amended to read
1801	1801	as follows:
1802	1802	(a) Except as provided by Subsections (b), (c), (c-1), and
1803	1803	(c-2), to be entitled to a hearing and determination of a protest,
1804	1804	the property owner initiating the protest must file a written
1805	1805	notice of the protest with the appraisal review board having
1806	1806	authority to hear the matter protested:
1807	1807	(1) not later than May 15 or the 30th day after the
1808	1808	date that notice to the property owner was delivered to the property
1809	1809	owner as provided by Section 25.19, whichever is later;
1810	1810	(2) in the case of a protest of a change in the
1811	1811	appraisal records ordered as provided by Subchapter A of this
1812	1812	chapter or by Chapter 25, not later than the 30th day after the date
1813	1813	notice of the change is delivered to the property owner; or
1814	1814	(3) in the case of a determination that a change in the
1815	1815	use of land appraised under Subchapter C, D, E, or H, Chapter 23,
1816	1816	has occurred, not later than the 30th day after the date the notice
1817	1817	of the determination is delivered to the property owner[; or
1818	1818	[(4) in the case of a determination of eligibility for
1819	1819	a refund under Section 23.1243, not later than the 30th day after
1820	1820	the date the notice of the determination is delivered to the
1821	1821	property owner].
1822	1822	SECTION 63. Section 42.01, Tax Code, is amended to read as
1823	1823	follows:
1824	1824	Sec. 42.01. RIGHT OF APPEAL BY PROPERTY OWNER. (a) A
1825	1825	property owner is entitled to appeal[:
1826	1826	[(1)] an order of the appraisal review board
1827	1827	determining:
1828	1828	(1) [(A)] a protest by the property owner as provided
1829	1829	by Subchapter C of Chapter 41;
1830	1830	(2) [(B)] a determination of an appraisal review board
1831	1831	on a motion filed under Section 25.25; or
1832	1832	(3) [(C)] a determination of an appraisal review board
1833	1833	that the property owner has forfeited the right to a final
1834	1834	determination of a motion filed under Section 25.25 or of a protest
1835	1835	under Section 41.411 for failing to comply with the prepayment
1836	1836	requirements of Section 25.26 or 41.4115, as applicable[; or
1837	1837	[(D) a determination of an appraisal review board
1838	1838	of eligibility for a refund requested under Section 23.1243; or
1839	1839	[(2) an order of the comptroller issued as provided by
1840	1840	Subchapter B, Chapter 24, apportioning among the counties the
1841	1841	appraised value of railroad rolling stock owned by the property
1842	1842	owner].
1843	1843	(b) A property owner who establishes that the owner did not
1844	1844	forfeit the right to a final determination of a motion or of a
1845	1845	protest in an appeal under Subsection (a)(3) [(a)(1)(C)] is
1846	1846	entitled to a final determination of the court, as applicable:
1847	1847	(1) of the motion filed under Section 25.25; or
1848	1848	(2) of the protest under Section 41.411 of the failure
1849	1849	of the chief appraiser or appraisal review board to provide or
1850	1850	deliver a notice to which the property owner is entitled, and, if
1851	1851	failure to provide or deliver the notice is established, of a
1852	1852	protest made by the property owner on any other grounds of protest
1853	1853	authorized by this title relating to the property to which the
1854	1854	notice applies.
1855	1855	SECTION 64. Section 42.21(b), Tax Code, is amended to read
1856	1856	as follows:
1857	1857	(b) A petition for review brought under Section 42.02 must
1858	1858	be brought against the owner of the property involved in the appeal.
1859	1859	A petition for review brought under Section 42.031 must be brought
1860	1860	against the appraisal office [district] and against the owner of
1861	1861	the property involved in the appeal. [A petition for review brought
1862	1862	under Section 42.01(a)(2) or 42.03 must be brought against the
1863	1863	comptroller.] Any other petition for review under this chapter
1864	1864	must be brought against the appraisal office [district]. A
1865	1865	petition for review may not be brought against the appraisal review
1866	1866	board. An appraisal office [district] may hire an attorney that
1867	1867	represents the office [district] to represent the appraisal review
1868	1868	board established for the office [district] to file an answer and
1869	1869	obtain a dismissal of a suit filed against the appraisal review
1870	1870	board in violation of this subsection.
1871	1871	SECTION 65. Section 42.22, Tax Code, as amended by Chapters
1872	1872	667 (S.B. 548) and 1033 (H.B. 301), Acts of the 73rd Legislature,
1873	1873	Regular Session, 1993, is reenacted and amended to read as follows:
1874	1874	Sec. 42.22. VENUE. (a) Except as provided by Subsection
1875	1875	[Subsections] (b) of this section [and (c),] and by Section 42.221,
1876	1876	venue is in the county in which the appraisal review board that
1877	1877	issued the order appealed is located.
1878	1878	(b) Venue of an action brought under Section 42.01(a)
1879	1879	[42.01(1)] is in the county in which the property is located or in
1880	1880	the county in which the appraisal review board that issued the order
1881	1881	is located.
1882	1882	[(c) Venue is in Travis County if the order appealed was
1883	1883	issued by the comptroller.]
1884	1884	SECTION 66. Sections 42.23(f) and (i), Tax Code, are
1885	1885	amended to read as follows:
1886	1886	(f) For purposes of a no-evidence motion for summary
1887	1887	judgment filed by a party to an appeal under this chapter, the offer
1888	1888	of evidence, including an affidavit or testimony, by any person,
1889	1889	including the appraisal office [district], the property owner, or
1890	1890	the owner's agent, that was presented at the hearing on the protest
1891	1891	before the appraisal review board constitutes sufficient evidence
1892	1892	to deny the motion.
1893	1893	(i) If an appraisal office [district] employee testifies as
1894	1894	to the value of real property in an appeal under Section 42.25 or
1895	1895	42.26, the court may give preference to an employee who is a person
1896	1896	authorized to perform an appraisal of real estate under Section
1897	1897	1103.201, Occupations Code.
1898	1898	SECTION 67. Sections 42.26(a), (b), and (d), Tax Code, are
1899	1899	amended to read as follows:
1900	1900	(a) The district court shall grant relief on the ground that
1901	1901	a property is appraised unequally if[:
1902	1902	[(1) the appraisal ratio of the property exceeds by at
1903	1903	least 10 percent the median level of appraisal of a reasonable and
1904	1904	representative sample of other properties in the appraisal
1905	1905	district;
1906	1906	[(2) the appraisal ratio of the property exceeds by at
1907	1907	least 10 percent the median level of appraisal of a sample of
1908	1908	properties in the appraisal district consisting of a reasonable
1909	1909	number of other properties similarly situated to, or of the same
1910	1910	general kind or character as, the property subject to the appeal; or
1911	1911	[(3)] the appraised value of the property exceeds the
1912	1912	median appraised value of a reasonable number of comparable
1913	1913	properties appropriately adjusted.
1914	1914	(b) [If a property owner is entitled to relief under
1915	1915	Subsection (a)(1), the court shall order the property's appraised
1916	1916	value changed to the value as calculated on the basis of the median
1917	1917	level of appraisal according to Subsection (a)(1). If a property
1918	1918	owner is entitled to relief under Subsection (a)(2), the court
1919	1919	shall order the property's appraised value changed to the value
1920	1920	calculated on the basis of the median level of appraisal according
1921	1921	to Subsection (a)(2).] If a property owner is entitled to relief
1922	1922	under Subsection (a) [Subsection (a)(3)], the court shall order the
1923	1923	property's appraised value changed to the value calculated on the
1924	1924	basis of the median appraised value according to that subsection
1925	1925	[Subsection (a)(3). If a property owner is entitled to relief under
1926	1926	more than one subdivision of Subsection (a), the court shall order
1927	1927	the property's appraised value changed to the value that results in
1928	1928	the lowest appraised value]. The court shall determine the [each
1929	1929	applicable median level of appraisal or] median appraised value
1930	1930	according to law[,] and is not required to adopt the [median level
1931	1931	of appraisal or] median appraised value proposed by a party to the
1932	1932	appeal. [The court may not limit or deny relief to the property
1933	1933	owner entitled to relief under a subdivision of Subsection (a)
1934	1934	because the appraised value determined according to another
1935	1935	subdivision of Subsection (a) results in a higher appraised value.]
1936	1936	(d) For purposes of this section, the value of the property
1937	1937	subject to the suit and the value of a comparable property [or
1938	1938	sample property] that is used for comparison must be the market
1939	1939	value determined by the appraisal office [district] when the
1940	1940	property is [a residence homestead] subject to the limitation on
1941	1941	appraised value imposed by Section 23.23 or 23.231.
1942	1942	SECTION 68. Sections 151.356(a) and (c), Tax Code, are
1943	1943	amended to read as follows:
1944	1944	(a) In this section:
1945	1945	(1) "Environmental protection agency of the United
1946	1946	States" includes:
1947	1947	(A) the United States Department of the Interior
1948	1948	and any agency, bureau, or other entity established in that
1949	1949	department, including the Bureau of Safety and Environmental
1950	1950	Enforcement and the Bureau of Ocean Energy Management; and
1951	1951	(B) any other department, agency, bureau, or
1952	1952	entity of the United States that prescribes rules or regulations
1953	1953	described by Subdivision (3)(A).
1954	1954	(2) "Offshore[, "offshore] spill response containment
1955	1955	property" means tangible personal property:
1956	1956	(A) used, constructed, acquired, stored, or
1957	1957	installed solely as part of, or used solely for the development,
1958	1958	improvement, storage, deployment, repair, maintenance, or testing
1959	1959	of, an offshore spill response containment system that is stored
1960	1960	while not in use in a county bordering on the Gulf of Mexico or on a
1961	1961	bay or other body of water immediately adjacent to the Gulf of
1962	1962	Mexico [(1) described by Section 11.271(c)];
1963	1963	(B) [(2)] owned or leased by an entity formed
1964	1964	primarily for the purpose of designing, developing, modifying,
1965	1965	enhancing, assembling, operating, deploying, and maintaining an
1966	1966	offshore spill response containment system [described by Section
1967	1967	11.271(f)]; and
1968	1968	(C) [(3)] used or intended to be used solely in
1969	1969	an offshore spill response containment system [as defined by
1970	1970	Section 11.271(a)].
1971	1971	(3) "Offshore spill response containment system"
1972	1972	means a marine or mobile containment system that:
1973	1973	(A) is designed and used or intended to be used
1974	1974	solely to implement a response plan that meets or exceeds rules or
1975	1975	regulations adopted by any environmental protection agency of the
1976	1976	United States, this state, or a political subdivision of this state
1977	1977	for the control, reduction, or monitoring of air, water, or land
1978	1978	pollution in the event of a blowout or loss of control of an
1979	1979	offshore well drilled or used for the exploration for or production
1980	1980	of oil or gas;
1981	1981	(B) has a design capability to respond to a
1982	1982	blowout or loss of control of an offshore well drilled or used for
1983	1983	the exploration for or production of oil or gas that is drilled in
1984	1984	more than 5,000 feet of water;
1985	1985	(C) is used or intended to be used solely to
1986	1986	respond to a blowout or loss of control of an offshore well drilled
1987	1987	or used for the exploration for or production of oil or gas without
1988	1988	regard to the depth of the water in which the well is drilled; and
1989	1989	(D) except for any monitoring function for which
1990	1990	the system may be used, is used or intended to be used as a temporary
1991	1991	measure to address fugitive oil, gas, sulfur, or other minerals
1992	1992	after a leak has occurred and is not used or intended to be used
1993	1993	after the leak has been contained as a continuing means of producing
1994	1994	oil, gas, sulfur, or other minerals.
1995	1995	(4) "Rules or regulations adopted by any environmental
1996	1996	protection agency of the United States" includes 30 C.F.R. Part 254
1997	1997	and any corresponding provision or provisions of succeeding,
1998	1998	similar, substitute, proposed, or final federal regulations.
1999	1999	(c) The sale, lease, rental, storage, use, or other
2000	2000	consumption by an entity described by Subsection (a)(2)(B) [Section
2001	2001	11.271(f)] of offshore spill response containment property used
2002	2002	solely for the purposes described by [Section 11.271(c) and] this
2003	2003	section is exempted from the taxes imposed by this chapter.
2004	2004	SECTION 69. Section 312.007(a), Tax Code, is amended to
2005	2005	read as follows:
2006	2006	(a) In this section, "abatement period" means the period
2007	2007	during which all or a portion of the value of real property [or
2008	2008	tangible personal property] that is the subject of a tax abatement
2009	2009	agreement is exempt from taxation.
2010	2010	SECTION 70. Sections 312.204(a), (e), and (g), Tax Code,
2011	2011	are amended to read as follows:
2012	2012	(a) The governing body of a municipality eligible to enter
2013	2013	into tax abatement agreements under Section 312.002 may agree in
2014	2014	writing with the owner of taxable real property that is located in a
2015	2015	reinvestment zone, but that is not in an improvement project
2016	2016	financed by tax increment bonds, to exempt from taxation a portion
2017	2017	of the value of the real property [or of tangible personal property
2018	2018	located on the real property, or both,] for a period not to exceed
2019	2019	10 years, on the condition that the owner of the property make
2020	2020	specific improvements or repairs to the property. The governing
2021	2021	body of an eligible municipality may agree in writing with the owner
2022	2022	of a leasehold interest in tax-exempt real property that is located
2023	2023	in a reinvestment zone, but that is not in an improvement project
2024	2024	financed by tax increment bonds, to exempt a portion of the value of
2025	2025	property subject to ad valorem taxation, including the leasehold
2026	2026	interest or [,] improvements [, or tangible personal property]
2027	2027	located on the real property, for a period not to exceed 10 years,
2028	2028	on the condition that the owner of the leasehold interest make
2029	2029	specific improvements or repairs to the real property. A tax
2030	2030	abatement agreement under this section is subject to the rights of
2031	2031	holders of outstanding bonds of the municipality. An agreement
2032	2032	exempting taxable real property or leasehold interests or
2033	2033	improvements on tax-exempt real property may provide for the
2034	2034	exemption of such taxable interests in each year covered by the
2035	2035	agreement only to the extent its value for that year exceeds its
2036	2036	value for the year in which the agreement is executed. [An
2037	2037	agreement exempting tangible personal property located on taxable
2038	2038	or tax-exempt real property may provide for the exemption of
2039	2039	tangible personal property located on the real property in each
2040	2040	year covered by the agreement other than tangible personal property
2041	2041	that was located on the real property at any time before the period
2042	2042	covered by the agreement with the municipality, including inventory
2043	2043	and supplies.] In a municipality that has a comprehensive zoning
2044	2044	ordinance, an improvement, repair, development, or redevelopment
2045	2045	taking place under an agreement under this section must conform to
2046	2046	the comprehensive zoning ordinance.
2047	2047	(e) The governing body of a municipality eligible to enter
2048	2048	into tax abatement agreements under Section 312.002 may agree in
2049	2049	writing with the owner or lessee of real property that is located in
2050	2050	a reinvestment zone to exempt from taxation for a period not to
2051	2051	exceed 10 years a portion of the value of the real property [or of
2052	2052	personal property, or both,] located within the zone and owned or
2053	2053	leased by a certificated air carrier, on the condition that the
2054	2054	certificated air carrier make specific real property improvements
2055	2055	or lease for a term of 10 years or more real property improvements
2056	2056	located within the reinvestment zone. An agreement may provide for
2057	2057	the exemption of the real property in each year covered by the
2058	2058	agreement to the extent its value for that year exceeds its value
2059	2059	for the year in which the agreement is executed. [An agreement may
2060	2060	provide for the exemption of the personal property owned or leased
2061	2061	by a certificated air carrier located within the reinvestment zone
2062	2062	in each year covered by the agreement other than specific personal
2063	2063	property that was located within the reinvestment zone at any time
2064	2064	before the period covered by the agreement with the municipality.]
2065	2065	(g) Notwithstanding the other provisions of this chapter,
2066	2066	the governing body of a municipality eligible to enter into tax
2067	2067	abatement agreements under Section 312.002 may agree in writing
2068	2068	with the owner of real property that is located in a reinvestment
2069	2069	zone to exempt from taxation for a period not to exceed five years a
2070	2070	portion of the value of the real property [or of tangible personal
2071	2071	property located on the real property, or both,] that is used to
2072	2072	provide housing for military personnel employed at a military
2073	2073	facility located in or near the municipality. An agreement may
2074	2074	provide for the exemption of the real property in each year covered
2075	2075	by the agreement only to the extent its value for that year exceeds
2076	2076	its value for the year in which the agreement is executed. [An
2077	2077	agreement may provide for the exemption of tangible personal
2078	2078	property located on the real property in each year covered by the
2079	2079	agreement other than tangible personal property that was located on
2080	2080	the real property at any time before the period covered by the
2081	2081	agreement with the municipality and other than inventory or
2082	2082	supplies.] The governing body of the municipality may adopt
2083	2083	guidelines and criteria for tax abatement agreements entered into
2084	2084	under this subsection that are different from the guidelines and
2085	2085	criteria that apply to tax abatement agreements entered into under
2086	2086	another provision of this section. Tax abatement agreements
2087	2087	entered into under this subsection are not required to contain
2088	2088	identical terms for the portion of the value of the property that is
2089	2089	to be exempt or for the duration of the exemption as tax abatement
2090	2090	agreements entered into with the owners of property in the
2091	2091	reinvestment zone under another provision of this section.
2092	2092	SECTION 71. Section 312.210(b), Tax Code, is amended to
2093	2093	read as follows:
2094	2094	(b) A tax abatement agreement with the owner of real
2095	2095	property [or tangible personal property] that is located in the
2096	2096	reinvestment zone described by Subsection (a) and in a school
2097	2097	district that has a wealth per student that does not exceed the
2098	2098	equalized wealth level must exempt from taxation:
2099	2099	(1) the portion of the value of the property in the
2100	2100	amount specified in the joint agreement among the municipality,
2101	2101	county, and junior college district; and
2102	2102	(2) an amount equal to 10 percent of the maximum
2103	2103	portion of the value of the property that may under Section
2104	2104	312.204(a) be otherwise exempted from taxation.
2105	2105	SECTION 72. Section 312.211(a), Tax Code, is amended to
2106	2106	read as follows:
2107	2107	(a) This section applies only to [:
2108	2108	[(1)] real property:
2109	2109	(1) [(A)] that is located in a reinvestment zone;
2110	2110	(2) [(B)] that is not in an improvement project
2111	2111	financed by tax increment bonds; and
2112	2112	(3) [(C)] that is the subject of a voluntary cleanup
2113	2113	agreement under Section 361.606, Health and Safety Code [; and
2114	2114	[(2) tangible personal property located on the real
2115	2115	property].
2116	2116	SECTION 73. Sections 312.402(a), (a-1), and (a-3), Tax
2117	2117	Code, are amended to read as follows:
2118	2118	(a) The commissioners court may execute a tax abatement
2119	2119	agreement with the owner of taxable real property located in a
2120	2120	reinvestment zone designated under this subchapter [or with the
2121	2121	owner of tangible personal property located on real property in a
2122	2122	reinvestment zone] to exempt from taxation all or a portion of the
2123	2123	value of the real property [, all or a portion of the value of the
2124	2124	tangible personal property located on the real property, or all or a
2125	2125	portion of the value of both].
2126	2126	(a-1) The commissioners court may execute a tax abatement
2127	2127	agreement with the owner of a leasehold interest in tax-exempt real
2128	2128	property located in a reinvestment zone designated under this
2129	2129	subchapter to exempt all or a portion of the value of the leasehold
2130	2130	interest in the real property. The court may execute a tax
2131	2131	abatement agreement with the owner of [tangible personal property
2132	2132	or] an improvement located on tax-exempt real property that is
2133	2133	located in a designated reinvestment zone to exempt all or a portion
2134	2134	of the value of the [tangible personal property or] improvement
2135	2135	located on the real property.
2136	2136	(a-3) The commissioners court may execute a tax abatement
2137	2137	agreement with a lessee of taxable real property located in a
2138	2138	reinvestment zone designated under this subchapter to exempt from
2139	2139	taxation all or a portion of the value of the fixtures,
2140	2140	improvements, or other real property owned by the lessee and
2141	2141	located on the property that is subject to the lease [, all or a
2142	2142	portion of the value of tangible personal property owned by the
2143	2143	lessee and located on the real property that is the subject of the
2144	2144	lease, or all or a portion of the value of both the fixtures,
2145	2145	improvements, or other real property and the tangible personal
2146	2146	property described by this subsection].
2147	2147	SECTION 74. Section 313.021(2), Tax Code, is amended to
2148	2148	read as follows:
2149	2149	(2) "Qualified property" means:
2150	2150	(A) land:
2151	2151	(i) that is located in an area designated as
2152	2152	a reinvestment zone under Chapter 311 or 312 or as an enterprise
2153	2153	zone under Chapter 2303, Government Code;
2154	2154	(ii) on which a person proposes to
2155	2155	construct a new building or erect or affix a new improvement that
2156	2156	does not exist before the date the person submits a complete
2157	2157	application for a limitation on appraised value under this
2158	2158	subchapter;
2159	2159	(iii) that is not subject to a tax abatement
2160	2160	agreement entered into by a school district under Chapter 312; and
2161	2161	(iv) on which, in connection with the new
2162	2162	building or new improvement described by Subparagraph (ii), the
2163	2163	owner or lessee of, or the holder of another possessory interest in,
2164	2164	the land proposes to:
2165	2165	(a) make a qualified investment in an
2166	2166	amount equal to at least the minimum amount required by Section
2167	2167	313.023; and
2168	2168	(b) create at least 25 new qualifying
2169	2169	jobs; and
2170	2170	(B) the new building or other new improvement
2171	2171	described by Paragraph (A)(ii)[; and
2172	2172	[(C) tangible personal property:
2173	2173	[(i) that is not subject to a tax abatement
2174	2174	agreement entered into by a school district under Chapter 312;
2175	2175	[(ii) for which a sales and use tax refund
2176	2176	is not claimed under Section 151.3186; and
2177	2177	[(iii) except for new equipment described
2178	2178	in Section 151.318(q) or (q-1), that is first placed in service in
2179	2179	the new building, in the newly expanded building, or in or on the
2180	2180	new improvement described by Paragraph (A)(ii), or on the land on
2181	2181	which that new building or new improvement is located, if the
2182	2182	personal property is ancillary and necessary to the business
2183	2183	conducted in that new building or in or on that new improvement].
2184	2184	SECTION 75. Section 313.025(a), Tax Code, is amended to
2185	2185	read as follows:
2186	2186	(a) The owner or lessee of, or the holder of another
2187	2187	possessory interest in, any qualified property described by Section
2188	2188	313.021(2)(A) or[,] (B)[, or (C)] may apply to the governing body of
2189	2189	the school district in which the property is located for a
2190	2190	limitation on the appraised value for school district maintenance
2191	2191	and operations ad valorem tax purposes of the person's qualified
2192	2192	property. An application must be made on the form prescribed by
2193	2193	the comptroller and include the information required by the
2194	2194	comptroller, and it must be accompanied by:
2195	2195	(1) the application fee established by the governing
2196	2196	body of the school district;
2197	2197	(2) information sufficient to show that the real [and
2198	2198	personal] property identified in the application as qualified
2199	2199	property meets the applicable criteria established by Section
2200	2200	313.021(2); and
2201	2201	(3) any information required by the comptroller for
2202	2202	the purposes of Section 313.026.
2203	2203	SECTION 76. Section 71.041(5), Agriculture Code, is amended
2204	2204	to read as follows:
2205	2205	(5) "Nursery stock weather protection unit" means a
2206	2206	plant cover consisting of a series of removable, portable metal
2207	2207	hoops, covered by nonreusable plastic sheeting, shade cloth, or
2208	2208	other similar removable material, used exclusively for protecting
2209	2209	nursery products from weather elements. A nursery stock weather
2210	2210	protection unit is an implement of husbandry for all purposes[,
2211	2211	including Article VIII, Section 19a, of the Texas Constitution].
2212	2212	SECTION 77. Section 93.001(2), Business & Commerce Code, is
2213	2213	amended to read as follows:
2214	2214	(2) "Heavy equipment" means self-propelled,
2215	2215	self-powered, or pull-type equipment, including farm equipment or a
2216	2216	diesel engine, that weighs at least 1,500 pounds and is intended to
2217	2217	be used for agricultural, construction, industrial, maritime,
2218	2218	mining, or forestry uses. The term does not include a motor
2219	2219	vehicle that is required by:
2220	2220	(A) Chapter 501, Transportation Code, to be
2221	2221	titled; or
2222	2222	(B) Chapter 502, Transportation Code, to be
2223	2223	registered [has the meaning assigned by Section 23.1241, Tax Code].
2224	2224	SECTION 78. Sections 89.003(a) and (b), Finance Code, are
2225	2225	amended to read as follows:
2226	2226	(a) Each association and each federal association shall
2227	2227	render for ad valorem taxation all of its personal property, other
2228	2228	than tangible personal property [furniture, fixtures, equipment,
2229	2229	and automobiles], as a whole at the value remaining after deducting
2230	2230	the following from the total value of its entire assets:
2231	2231	(1) all debts that it owes;
2232	2232	(2) all tax-free securities that it owns;
2233	2233	(3) its loss reserves and surplus;
2234	2234	(4) its savings liability; [and]
2235	2235	(5) the appraised value of its [furniture, fixtures,
2236	2236	and] real property; and
2237	2237	(6) the value of its tangible personal property.
2238	2238	(b) The association or federal association shall render the
2239	2239	personal property, other than tangible personal property
2240	2240	[furniture, fixtures, equipment, and automobiles], to the chief
2241	2241	appraiser of the appraisal office [district] in the county in which
2242	2242	its principal office is located.
2243	2243	SECTION 79. Subchapter M, Chapter 403, Government Code, is
2244	2244	amended by adding Section 403.3001 to read as follows:
2245	2245	Sec. 403.3001. DETERMINATION OF SCHOOL DISTRICT PROPERTY
2246	2246	VALUES. A reference in law to the taxable value or total taxable
2247	2247	value of property in a school district as determined under this
2248	2248	subchapter means the total taxable value of that property as
2249	2249	determined by the assessor for the district under Section 26.04,
2250	2250	Tax Code.
2251	2251	SECTION 80. Chapter 245, Local Government Code, is amended
2252	2252	by adding Section 245.008 to read as follows:
2253	2253	Sec. 245.008. NOTIFICATION OF APPRAISAL OFFICE OF ISSUANCE
2254	2254	OF CERTAIN PERMITS. A political subdivision that issues a
2255	2255	real-property-related permit shall notify the appraisal office
2256	2256	established for the county in which the property is located of the
2257	2257	issuance of the permit.
2258	2258	SECTION 81. Section 1151.1015, Occupations Code, is amended
2259	2259	to read as follows:
2260	2260	Sec. 1151.1015. ASSISTANCE FROM COMPTROLLER. The
2261	2261	comptroller shall enter into a memorandum of understanding with the
2262	2262	department under which the comptroller shall provide:
2263	2263	(1) information on the educational needs of and
2264	2264	opportunities for tax professionals;
2265	2265	(2) review and approval of all required educational
2266	2266	courses, examinations, and continuing education programs for
2267	2267	registrants; and
2268	2268	(3) [a copy of any report issued by the comptroller
2269	2269	under Section 5.102, Tax Code, and if requested by the department a
2270	2270	copy of any work papers or other documents collected or created in
2271	2271	connection with a report issued under that section; and
2272	2272	[(4)] information and assistance regarding
2273	2273	administrative proceedings conducted under the commission's rules
2274	2274	or this chapter.
2275	2275	SECTION 82. Section 1151.204(c), Occupations Code, is
2276	2276	amended to read as follows:
2277	2277	(c) This section does not apply to:
2278	2278	(1) [a matter referred to the department by the
2279	2279	comptroller under Section 5.102, Tax Code, or a successor statute;
2280	2280	[(2)] a complaint concerning a registrant's failure to
2281	2281	comply with the registration and certification requirements of this
2282	2282	chapter; or
2283	2283	(2) [(3)] a complaint concerning a newly appointed
2284	2284	chief appraiser's failure to complete the training program
2285	2285	described by Section 1151.164.
2286	2286	SECTION 83. Section 503.038(a), Transportation Code, is
2287	2287	amended to read as follows:
2288	2288	(a) The department may cancel a dealer's general
2289	2289	distinguishing number if the dealer:
2290	2290	(1) falsifies or forges a title document, including an
2291	2291	affidavit making application for a certified copy of a title;
2292	2292	(2) files a false or forged tax document, including a
2293	2293	sales tax affidavit;
2294	2294	(3) fails to take assignment of any basic evidence of
2295	2295	ownership, including a certificate of title or manufacturer's
2296	2296	certificate, for a vehicle the dealer acquires;
2297	2297	(4) fails to assign any basic evidence of ownership,
2298	2298	including a certificate of title or manufacturer's certificate, for
2299	2299	a vehicle the dealer sells;
2300	2300	(5) uses or permits the use of a metal dealer's license
2301	2301	plate or a dealer's temporary tag on a vehicle that the dealer does
2302	2302	not own or control or that is not in stock and offered for sale;
2303	2303	(6) makes a material misrepresentation in an
2304	2304	application or other information filed with the department;
2305	2305	(7) fails to maintain the qualifications for a general
2306	2306	distinguishing number;
2307	2307	(8) fails to provide to the department within 30 days
2308	2308	after the date of demand by the department satisfactory and
2309	2309	reasonable evidence that the person is regularly and actively
2310	2310	engaged in business as a wholesale or retail dealer;
2311	2311	(9) has been licensed for at least 12 months and has
2312	2312	not assigned at least five vehicles during the previous 12-month
2313	2313	period;
2314	2314	(10) [has failed to demonstrate compliance with
2315	2315	Sections 23.12, 23.121, and 23.122, Tax Code;
2316	2316	[(11)] uses or allows the use of the dealer's general
2317	2317	distinguishing number or the location for which the general
2318	2318	distinguishing number is issued to avoid the requirements of this
2319	2319	chapter;
2320	2320	(11) [(12)] misuses or allows the misuse of a
2321	2321	temporary tag authorized under this chapter;
2322	2322	(12) [(13)] refuses to show on a buyer's temporary tag
2323	2323	the date of sale or other reasonable information required by the
2324	2324	department; or
2325	2325	(13) [(14)] otherwise violates this chapter or a rule
2326	2326	adopted under this chapter.
2327	2327	SECTION 84. (a) The following provisions of the Tax Code
2328	2328	are repealed:
2329	2329	(1) Section 1.12;
2330	2330	(2) Section 5.07(c);
2331	2331	(3) Section 5.10;
2332	2332	(4) Section 5.102;
2333	2333	(5) Section 5.12;
2334	2334	(6) Section 5.13;
2335	2335	(7) Section 5.16;
2336	2336	(8) Section 6.03;
2337	2337	(9) Section 6.031;
2338	2338	(10) Section 6.033;
2339	2339	(11) Section 6.034;
2340	2340	(12) Section 6.035(a-1);
2341	2341	(13) Section 6.036(a);
2342	2342	(14) Section 6.037;
2343	2343	(15) Section 6.04;
2344	2344	(16) Section 6.0501;
2345	2345	(17) Section 6.051;
2346	2346	(18) Section 6.061;
2347	2347	(19) Section 6.10;
2348	2348	(20) Section 6.15;
2349	2349	(21) Section 6.24(c);
2350	2350	(22) Section 11.11(h);
2351	2351	(23) Section 11.14;
2352	2352	(24) Section 11.145;
2353	2353	(25) Section 11.15;
2354	2354	(26) Section 11.16;
2355	2355	(27) Section 11.161;
2356	2356	(28) Section 11.23(f);
2357	2357	(29) Section 11.25;
2358	2358	(30) Section 11.251;
2359	2359	(31) Section 11.252;
2360	2360	(32) Section 11.253;
2361	2361	(33) Section 11.254;
2362	2362	(34) Section 11.271;
2363	2363	(35) Section 11.311;
2364	2364	(36) Section 11.315;
2365	2365	(37) Section 11.33;
2366	2366	(38) Section 11.437;
2367	2367	(39) Section 11.4391;
2368	2368	(40) Section 21.02;
2369	2369	(41) Section 21.021;
2370	2370	(42) Section 21.03;
2371	2371	(43) Section 21.031;
2372	2372	(44) Section 21.04;
2373	2373	(45) Section 21.05;
2374	2374	(46) Section 21.055;
2375	2375	(47) Section 21.07;
2376	2376	(48) Section 21.09;
2377	2377	(49) Section 21.10;
2378	2378	(50) Sections 22.01(e), (i), (j), (k), and (m);
2379	2379	(51) Sections 22.04(b), (c), and (d);
2380	2380	(52) Sections 22.07(a) and (b);
2381	2381	(53) Section 22.23(c);
2382	2382	(54) Section 23.121;
2383	2383	(55) Section 23.1211;
2384	2384	(56) Section 23.122;
2385	2385	(57) Section 23.123;
2386	2386	(58) Section 23.124;
2387	2387	(59) Section 23.1241;
2388	2388	(60) Section 23.1242;
2389	2389	(61) Section 23.1243;
2390	2390	(62) Section 23.125;
2391	2391	(63) Section 23.126;
2392	2392	(64) Section 23.127;
2393	2393	(65) Section 23.128;
2394	2394	(66) Section 23.129;
2395	2395	(67) Section 23.24;
2396	2396	(68) Chapter 24;
2397	2397	(69) Sections 25.18(b) and (c);
2398	2398	(70) Section 33.11;
2399	2399	(71) Subchapter B, Chapter 33;
2400	2400	(72) Section 41.413(a);
2401	2401	(73) Section 41.47(c-1);
2402	2402	(74) Section 42.03;
2403	2403	(75) Section 42.05; and
2404	2404	(76) Section 42.26(c).
2405	2405	(b) Section 25.12(c), Tax Code, as added by Chapter 450
2406	2406	(H.B. 1831), Acts of the 71st Legislature, Regular Session, 1989,
2407	2407	is repealed.
2408	2408	(c) Section 89.003(c), Finance Code, is repealed.
2409	2409	(d) The following provisions of the Government Code are
2410	2410	repealed:
2411	2411	(1) Section 403.301;
2412	2412	(2) Section 403.3011;
2413	2413	(3) Section 403.302;
2414	2414	(4) Section 403.303; and
2415	2415	(5) Section 403.304.
2416	2416	(e) Sections 379B.011(c), (d), and (e), Local Government
2417	2417	Code, are repealed.
2418	2418	SECTION 85. (a) On the effective date of this Act:
2419	2419	(1) each appraisal district and appraisal district
2420	2420	board of directors is abolished;
2421	2421	(2) an appraisal office is established for each
2422	2422	county;
2423	2423	(3) the county assessor-collector of each county
2424	2424	begins to govern the appraisal office established for that county;
2425	2425	(4) all personnel, property, records, and funds of an
2426	2426	appraisal district are transferred to the appraisal office for the
2427	2427	county for which the appraisal district was established;
2428	2428	(5) all unpaid debts incurred by an appraisal district
2429	2429	become debts of the appraisal office for the county for which the
2430	2430	appraisal district was established;
2431	2431	(6) the appraisal office for the county for which an
2432	2432	appraisal district was established is substituted for the appraisal
2433	2433	district in any pending action, including a protest or challenge
2434	2434	before an appraisal review board or an appeal or other action in a
2435	2435	court; and
2436	2436	(7) the appraisal review board of an appraisal office
2437	2437	established for a county is substituted for the appraisal review
2438	2438	board of the appraisal district established for the county in any
2439	2439	pending action, including a protest or challenge before the
2440	2440	appraisal review board or an appeal or other action in a court.
2441	2441	(b) A measure taken or adopted by the board of directors of
2442	2442	an appraisal district established for a county before the effective
2443	2443	date of this Act that is in effect on the effective date of this Act
2444	2444	continues in effect after the effective date of this Act until
2445	2445	superseded by a measure taken or adopted by the county
2446	2446	assessor-collector who governs the appraisal office established
2447	2447	for that county.
2448	2448	SECTION 86. As soon as practicable on or after January 1,
2449	2449	2022, the county assessor-collector who governs each appraisal
2450	2450	office shall dispose of the real property owned by the office. The
2451	2451	county assessor-collector may use the proceeds to pay the debts of
2452	2452	the appraisal office or to cover the cost of administration of the
2453	2453	office.
2454	2454	SECTION 87. (a) As soon as practicable on or after January
2455	2455	1, 2022, the state senators and state representatives whose
2456	2456	districts contain any part of the territory included in the county
2457	2457	for which an appraisal office is established, in the manner
2458	2458	provided by Section 6.12, Tax Code, as amended by this Act, shall
2459	2459	appoint the members of the agricultural advisory board for the
2460	2460	appraisal office. The county assessor-collector who governs the
2461	2461	appraisal office by resolution shall provide for staggered terms
2462	2462	for the members as necessary to comply with Section 6.12(c), Tax
2463	2463	Code.
2464	2464	(b) The changes made to Section 6.12, Tax Code, by this Act
2465	2465	apply only to the appointment of agricultural advisory board
2466	2466	members to terms beginning on or after January 1, 2022. This Act
2467	2467	does not affect the term of an agricultural advisory board member
2468	2468	serving on December 31, 2021, if the member was appointed before
2469	2469	January 1, 2022, to a term that began before December 31, 2021.
2470	2470	SECTION 88. (a) As soon as practicable on or after January
2471	2471	1, 2022, the state senators and state representatives whose
2472	2472	districts contain any part of the territory included in the county
2473	2473	for which an appraisal office is established, in the manner
2474	2474	provided by Section 6.41, Tax Code, as amended by this Act, shall
2475	2475	appoint the members of the appraisal review board for the appraisal
2476	2476	office. The county assessor-collector who governs the appraisal
2477	2477	office by resolution shall provide for staggered terms for the
2478	2478	members as necessary to comply with Section 6.41(h), Tax Code, as
2479	2479	amended by this Act.
2480	2480	(b) The changes made to Section 6.41, Tax Code, by this Act
2481	2481	apply only to the appointment of appraisal review board members to
2482	2482	terms beginning on or after January 1, 2022. This Act does not
2483	2483	affect the term of an appraisal review board member serving on
2484	2484	December 31, 2021, if the member was appointed before January 1,
2485	2485	2022, to a term that began before December 31, 2021, and expires
2486	2486	December 31, 2022.
2487	2487	SECTION 89. Sections 6.41 and 6.411, Tax Code, as amended by
2488	2488	this Act, apply only to an offense committed on or after the
2489	2489	effective date of this Act. An offense committed before the
2490	2490	effective date of this Act is governed by the law in effect on the
2491	2491	date the offense was committed, and the former law is continued in
2492	2492	effect for that purpose. For purposes of this section, an offense
2493	2493	was committed before the effective date of this Act if any element
2494	2494	of the offense occurred before that date.
2495	2495	SECTION 90. The change in law made by this Act to Section
2496	2496	23.02, Tax Code, applies only to the reappraisal of property
2497	2497	located in an area that is declared to be a disaster area by the
2498	2498	governor on or after the effective date of this Act. The
2499	2499	reappraisal of property located in an area that was declared to be a
2500	2500	disaster area by the governor before the effective date of this Act
2501	2501	is governed by the law as it existed immediately before the
2502	2502	effective date of this Act, and that law is continued in effect for
2503	2503	that purpose.
2504	2504	SECTION 91. Section 23.231, Tax Code, as added by this Act,
2505	2505	applies only to the appraisal of real property for ad valorem tax
2506	2506	purposes for a tax year that begins on or after the effective date
2507	2507	of this Act.
2508	2508	SECTION 92. As soon as practicable after the effective date
2509	2509	of this Act, the comptroller by rule shall adopt forms and
2510	2510	procedures necessary for the implementation of Section 23.231, Tax
2511	2511	Code, as added by this Act.
2512	2512	SECTION 93. (a) The changes in law made by this Act to
2513	2513	Subchapter M, Chapter 403, Government Code, apply only to the
2514	2514	determination of the total taxable value of property in a school
2515	2515	district for a tax year that begins after December 31, 2021. The
2516	2516	determination of the total taxable value of property in a school
2517	2517	district for a tax year that begins before that date is governed by
2518	2518	Subchapter M, Chapter 403, Government Code, as that subchapter
2519	2519	existed when the tax year began, and the former law is continued in
2520	2520	effect for that purpose.
2521	2521	(b) Notwithstanding the changes in law made by this Act to
2522	2522	the provisions of the Tax Code, Agriculture Code, Business &
2523	2523	Commerce Code, Finance Code, and Transportation Code amended by
2524	2524	this Act and the repeal by this Act of provisions of the Tax Code and
2525	2525	Finance Code, each of those provisions, as it existed immediately
2526	2526	before January 1, 2020, is continued in effect for the purpose of
2527	2527	the levy and collection of an ad valorem tax on tangible personal
2528	2528	property imposed:
2529	2529	(1) before January 1, 2020; or
2530	2530	(2) pursuant to Section 1(l), Article VIII, Texas
2531	2531	Constitution.
2532	2532	SECTION 94. (a) If the constitutional amendment proposed
2533	2533	by the 86th Legislature, Regular Session, 2019, authorizing the
2534	2534	legislature to provide for the appraisal of certain real property
2535	2535	for ad valorem tax purposes based on its purchase price, exempting
2536	2536	all tangible personal property in this state from ad valorem
2537	2537	taxation, and authorizing the legislature to permit legislators to
2538	2538	appoint members of the board of equalization for an appraisal
2539	2539	entity is approved by the voters, the Special Tax Code Board is
2540	2540	created to recommend amendments to the Tax Code and other law to
2541	2541	efficiently and effectively implement the amendment.
2542	2542	(b) The board consists of nine members appointed as follows:
2543	2543	(1) seven members appointed by the governor;
2544	2544	(2) one member appointed by the lieutenant governor;
2545	2545	and
2546	2546	(3) one member appointed by the speaker of the house of
2547	2547	representatives.
2548	2548	(c) The board shall make legislative recommendations on
2549	2549	amendments to the Tax Code and other law required to implement the
2550	2550	constitutional amendment and otherwise improve the system for
2551	2551	appraising property for ad valorem tax purposes, including
2552	2552	recommendations regarding:
2553	2553	(1) the abolition of appraisal districts and the
2554	2554	transfer of their functions to the county assessor-collectors'
2555	2555	offices;
2556	2556	(2) the procedure to be used in appraising real
2557	2557	property for ad valorem tax purposes, including the appraisal of
2558	2558	such property on the basis of the purchase price of the property;
2559	2559	(3) the reporting of information regarding sales of
2560	2560	real property to the appraisal office and the use of that
2561	2561	information by the appraisal office;
2562	2562	(4) the notification of an appraisal office by a
2563	2563	political subdivision regarding real-property-related permits
2564	2564	issued by the political subdivision; and
2565	2565	(5) the procedure for appointing appraisal review
2566	2566	board members.
2567	2567	(d) Not later than September 1, 2020, the board shall submit
2568	2568	a report to the governor, lieutenant governor, speaker of the house
2569	2569	of representatives, comptroller, Legislative Budget Board, and
2570	2570	legislature regarding the board's recommendations.
2571	2571	(e) This section expires September 1, 2021.
2572	2572	SECTION 95. To the extent of any conflict, this Act prevails
2573	2573	over another Act of the 86th Legislature, Regular Session, 2019,
2574	2574	relating to nonsubstantive additions to and corrections in enacted
2575	2575	codes.
2576	2576	SECTION 96. (a) Except as provided by Subsection (b) of
2577	2577	this section, this Act takes effect January 1, 2022, but only if the
2578	2578	constitutional amendment proposed by the 86th Legislature, Regular
2579	2579	Session, 2019, authorizing the legislature to provide for the
2580	2580	appraisal of certain real property for ad valorem tax purposes
2581	2581	based on its purchase price, exempting all tangible personal
2582	2582	property in this state from ad valorem taxation, and authorizing
2583	2583	the legislature to permit legislators to appoint members of the
2584	2584	board of equalization for an appraisal entity is approved by the
2585	2585	voters. If that amendment is not approved by the voters, this Act
2586	2586	has no effect.
2587	2587	(b) Subject to Subsection (a) of this section, the section
2588	2588	of this Act creating the Special Tax Code Board takes effect January
2589	2589	1, 2020.