Texas 2019 - 86th Regular

Texas House Bill HB3358 Compare Versions

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

Old	New	Differences
1	1	86R10434 LHC-D
2	2	By: Sanford H.B. No. 3358
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the repeal of the additional ad valorem taxes imposed as
8	8	a result of certain changes in the use of certain land.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	ARTICLE 1. REPEAL OF ADDITIONAL TAX PROVISIONS IN SECTION 11.201
11	11	AND SUBCHAPTERS C, D, E, F, G, AND H, CHAPTER 23, TAX CODE
12	12	SECTION 1.01. Section 1.07(d), Tax Code, is amended to read
13	13	as follows:
14	14	(d) A notice required by Section 11.43(q), 11.45(d),
15	15	23.44(d), [23.46(c) or (f),] 23.54(e), 23.541(c), [23.55(e),]
16	16	23.551(a), 23.57(d), [23.76(e),] 23.79(d), or 23.85(d) must be sent
17	17	by certified mail.
18	18	SECTION 1.02. Section 23.52(e), Tax Code, is amended to
19	19	read as follows:
20	20	(e) The [For the purposes of Section 23.55 of this code,
21	21	the] chief appraiser [also] shall determine the market value of
22	22	qualified open-space land and shall record both the market value
23	23	and the appraised value in the appraisal records.
24	24	SECTION 1.03. Section 23.524(e), Tax Code, as added by
25	25	Chapter 44 (S.B. 1459), Acts of the 85th Legislature, Regular
26	26	Session, 2017, is amended to read as follows:
27	27	(e) Notwithstanding Subsection (b) or (c), the eligibility
28	28	of [For the purposes of this subchapter, a change of use of the]
29	29	land subject to this section for appraisal under this subchapter is
30	30	considered to have ended [occurred] on the day the period
31	31	prescribed by Subsection (c) begins if the owner has not fully
32	32	complied with the terms of the agreement described by Subsection
33	33	(b) on the date the agreement ends.
34	34	SECTION 1.04. Sections 23.551(a) and (d), Tax Code, are
35	35	amended to read as follows:
36	36	(a) If land appraised as provided by this subchapter is
37	37	owned by an individual 65 years of age or older, before making a
38	38	determination that [a change in use of] the land is no longer
39	39	eligible for appraisal under this subchapter [has occurred], the
40	40	chief appraiser shall deliver a written notice to the owner stating
41	41	that the chief appraiser believes [a change in use of] the land may
42	42	no longer be eligible for appraisal under this subchapter [have
43	43	occurred].
44	44	(d) If the chief appraiser does not receive a response on or
45	45	before the 60th day after the date the notice is mailed, the chief
46	46	appraiser must make a reasonable effort to locate the owner and
47	47	determine whether the land remains eligible to be appraised as
48	48	provided by this subchapter before determining that [a change in
49	49	use of] the land is no longer eligible for appraisal under this
50	50	subchapter [has occurred].
51	51	SECTION 1.05. Section 23.73(c), Tax Code, is amended to
52	52	read as follows:
53	53	(c) The [For the purposes of Section 23.76 of this code,
54	54	the] chief appraiser [also] shall determine the market value of
55	55	qualified timber land and shall record both the market value and the
56	56	appraised value in the appraisal records.
57	57	SECTION 1.06. Section 31.01(c), Tax Code, is amended to
58	58	read as follows:
59	59	(c) The tax bill or a separate statement accompanying the
60	60	tax bill shall:
61	61	(1) identify the property subject to the tax;
62	62	(2) state the appraised value, assessed value, and
63	63	taxable value of the property;
64	64	(3) if the property is land appraised as provided by
65	65	Subchapter C, D, E, or H, Chapter 23, state the market value of the
66	66	land [and the taxable value for purposes of deferred or additional
67	67	taxation as provided by Section 23.46, 23.55, 23.76, or 23.9807, as
68	68	applicable];
69	69	(4) state the assessment ratio for the unit;
70	70	(5) state the type and amount of any partial exemption
71	71	applicable to the property, indicating whether it applies to
72	72	appraised or assessed value;
73	73	(6) state the total tax rate for the unit;
74	74	(7) state the amount of tax due, the due date, and the
75	75	delinquency date;
76	76	(8) explain the payment option and discounts provided
77	77	by Sections 31.03 and 31.05, if available to the unit's taxpayers,
78	78	and state the date on which each of the discount periods provided by
79	79	Section 31.05 concludes, if the discounts are available;
80	80	(9) state the rates of penalty and interest imposed
81	81	for delinquent payment of the tax;
82	82	(10) include the name and telephone number of the
83	83	assessor for the unit and, if different, of the collector for the
84	84	unit;
85	85	(11) for real property, state for the current tax year
86	86	and each of the preceding five tax years:
87	87	(A) the appraised value and taxable value of the
88	88	property;
89	89	(B) the total tax rate for the unit;
90	90	(C) the amount of taxes imposed on the property
91	91	by the unit; and
92	92	(D) the difference, expressed as a percent
93	93	increase or decrease, as applicable, in the amount of taxes imposed
94	94	on the property by the unit compared to the amount imposed for the
95	95	preceding tax year; and
96	96	(12) for real property, state the differences,
97	97	expressed as a percent increase or decrease, as applicable, in the
98	98	following for the current tax year as compared to the fifth tax year
99	99	before that tax year:
100	100	(A) the appraised value and taxable value of the
101	101	property;
102	102	(B) the total tax rate for the unit; and
103	103	(C) the amount of taxes imposed on the property
104	104	by the unit.
105	105	SECTION 1.07. Section 41.41(a), Tax Code, is amended to
106	106	read as follows:
107	107	(a) A property owner is entitled to protest before the
108	108	appraisal review board the following actions:
109	109	(1) determination of the appraised value of the
110	110	owner's property or, in the case of land appraised as provided by
111	111	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
112	112	or market value;
113	113	(2) unequal appraisal of the owner's property;
114	114	(3) inclusion of the owner's property on the appraisal
115	115	records;
116	116	(4) denial to the property owner in whole or in part of
117	117	a partial exemption;
118	118	(5) determination that the owner's land does not
119	119	qualify for appraisal as provided by Subchapter C, D, E, or H,
120	120	Chapter 23;
121	121	(6) identification of the taxing units in which the
122	122	owner's property is taxable in the case of the appraisal district's
123	123	appraisal roll;
124	124	(7) determination that the property owner is the owner
125	125	of property; or
126	126	(8) [a determination that a change in use of land
127	127	appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
128	128	or
129	129	[(9)] any other action of the chief appraiser,
130	130	appraisal district, or appraisal review board that applies to and
131	131	adversely affects the property owner.
132	132	SECTION 1.08. Sections 41.44(a) and (c), Tax Code, are
133	133	amended to read as follows:
134	134	(a) Except as provided by Subsections (b), (c), (c-1), and
135	135	(c-2), to be entitled to a hearing and determination of a protest,
136	136	the property owner initiating the protest must file a written
137	137	notice of the protest with the appraisal review board having
138	138	authority to hear the matter protested:
139	139	(1) not later than May 15 or the 30th day after the
140	140	date that notice to the property owner was delivered to the property
141	141	owner as provided by Section 25.19, whichever is later;
142	142	(2) in the case of a protest of a change in the
143	143	appraisal records ordered as provided by Subchapter A of this
144	144	chapter or by Chapter 25, not later than the 30th day after the date
145	145	notice of the change is delivered to the property owner; or
146	146	(3) [in the case of a determination that a change in
147	147	the use of land appraised under Subchapter C, D, E, or H, Chapter
148	148	23, has occurred, not later than the 30th day after the date the
149	149	notice of the determination is delivered to the property owner; or
150	150	[(4)] in the case of a determination of eligibility
151	151	for a refund under Section 23.1243, not later than the 30th day
152	152	after the date the notice of the determination is delivered to the
153	153	property owner.
154	154	(c) A property owner who files notice of a protest
155	155	authorized by Section 41.411 is entitled to a hearing and
156	156	determination of the protest if the property owner files the notice
157	157	prior to the date the taxes on the property to which the notice
158	158	applies become delinquent. [An owner of land who files a notice of
159	159	protest under Subsection (a)(3) is entitled to a hearing and
160	160	determination of the protest without regard to whether the
161	161	appraisal records are approved.]
162	162	SECTION 1.09. Section 60.022, Agriculture Code, is amended
163	163	to read as follows:
164	164	Sec. 60.022. CONTENTS OF PETITION. A petition filed under
165	165	Section 60.021 must:
166	166	(1) describe the boundaries of the proposed district
167	167	by metes and bounds or by lot and block number, if there is a
168	168	recorded map or plat and survey of the area;
169	169	(2) include a name for the proposed district, which
170	170	must include the term "Agricultural Development District";
171	171	(3) be signed by the landowners of any land to be
172	172	included within the proposed district and provide an acknowledgment
173	173	consistent with Section 121.001, Civil Practice and Remedies Code,
174	174	that the landowners desire the land to be included in the district;
175	175	(4) include the names of at least five persons who are
176	176	willing and qualified to serve as temporary directors of the
177	177	district;
178	178	(5) name each county in which any agricultural
179	179	facilities to be owned by the district are to be located;
180	180	(6) name each municipality in which any part of the
181	181	district is to be located;
182	182	(7) state the general nature of the proposed
183	183	development and the cost of the development as then estimated by the
184	184	petitioners;
185	185	(8) state the necessity and feasibility of the
186	186	proposed district and whether the district will serve the public
187	187	purpose of furthering agricultural interests;
188	188	(9) include a pledge that the district will make
189	189	payments in lieu of taxes to any school district and county in which
190	190	any real property to be owned by the district is located, in [as
191	191	follows:
192	192	[(A)] annual payments to each entity that are
193	193	equal to the amount of taxes imposed on the real property by the
194	194	entity in the year of the district's creation; and
195	195	[(B) a payment to each entity equal to the amount
196	196	that would be due under Section 23.55, Tax Code, on the district's
197	197	date of creation; and]
198	198	(10) include a pledge that, if the district employs
199	199	more than 50 persons, the district will make payments in lieu of
200	200	taxes to any school district, in addition to those made under
201	201	Subdivision (9), in an amount negotiated between the district and
202	202	the school district.
203	203	SECTION 1.10. Section 21.0421(e), Property Code, is amended
204	204	to read as follows:
205	205	(e) This section does not[:
206	206	[(1)] authorize groundwater rights appraised
207	207	separately from the real property under this section to be
208	208	appraised separately from real property for property tax appraisal
209	209	purposes[; or
210	210	[(2) subject real property condemned for the purpose
211	211	described by Subsection (a) to an additional tax as provided by
212	212	Section 23.46 or 23.55, Tax Code].
213	213	SECTION 1.11. The following provisions of the Tax Code are
214	214	repealed:
215	215	(1) Section 11.201;
216	216	(2) Section 23.20(g);
217	217	(3) Section 23.46;
218	218	(4) Sections 23.47(c) and (d);
219	219	(5) Section 23.55;
220	220	(6) Sections 23.58(c) and (d);
221	221	(7) Section 23.76;
222	222	(8) Section 23.86;
223	223	(9) Section 23.96; and
224	224	(10) Section 23.9807.
225	225	SECTION 1.12. The repeal of Sections 11.201, 23.46, 23.55,
226	226	23.76, 23.86, 23.96, and 23.9807, Tax Code, by this Act does not
227	227	affect an additional tax imposed as a result of a sale or change of
228	228	use of land exempted under Section 11.20 or appraised under
229	229	Subchapter C, D, E, F, G, or H, Chapter 23, Tax Code, that occurred
230	230	before the effective date of this Act, and the former law is
231	231	continued in effect for purposes of that tax.
232	232	ARTICLE 2. REPEAL OF ADDITIONAL TAX PROVISIONS IN SECTION 11.201
233	233	AND SUBCHAPTERS D, E, F, G, AND H, CHAPTER 23, TAX CODE
234	234	SECTION 2.01. Section 1.07(d), Tax Code, is amended to read
235	235	as follows:
236	236	(d) A notice required by Section 11.43(q), 11.45(d),
237	237	23.44(d), 23.46(c) or (f), 23.54(e), 23.541(c), [23.55(e),]
238	238	23.551(a), 23.57(d), [23.76(e),] 23.79(d), or 23.85(d) must be sent
239	239	by certified mail.
240	240	SECTION 2.02. Section 23.20(g), Tax Code, is amended to
241	241	read as follows:
242	242	(g) A waiver of a special appraisal of property under
243	243	Subchapter C[, D, E, F, or G of this chapter] does not constitute a
244	244	change of use of the property or diversion of the property to
245	245	another use for purposes of the imposition of additional taxes
246	246	under that subchapter [any of those subchapters].
247	247	SECTION 2.03. Section 23.52(e), Tax Code, is amended to
248	248	read as follows:
249	249	(e) The [For the purposes of Section 23.55 of this code,
250	250	the] chief appraiser [also] shall determine the market value of
251	251	qualified open-space land and shall record both the market value
252	252	and the appraised value in the appraisal records.
253	253	SECTION 2.04. Section 23.524(e), Tax Code, as added by
254	254	Chapter 44 (S.B. 1459), Acts of the 85th Legislature, Regular
255	255	Session, 2017, is amended to read as follows:
256	256	(e) Notwithstanding Subsection (b) or (c), the eligibility
257	257	of [For the purposes of this subchapter, a change of use of the]
258	258	land subject to this section for appraisal under this subchapter is
259	259	considered to have ended [occurred] on the day the period
260	260	prescribed by Subsection (c) begins if the owner has not fully
261	261	complied with the terms of the agreement described by Subsection
262	262	(b) on the date the agreement ends.
263	263	SECTION 2.05. Sections 23.551(a) and (d), Tax Code, are
264	264	amended to read as follows:
265	265	(a) If land appraised as provided by this subchapter is
266	266	owned by an individual 65 years of age or older, before making a
267	267	determination that [a change in use of] the land is no longer
268	268	eligible for appraisal under this subchapter [has occurred], the
269	269	chief appraiser shall deliver a written notice to the owner stating
270	270	that the chief appraiser believes [a change in use of] the land may
271	271	no longer be eligible for appraisal under this subchapter [have
272	272	occurred].
273	273	(d) If the chief appraiser does not receive a response on or
274	274	before the 60th day after the date the notice is mailed, the chief
275	275	appraiser must make a reasonable effort to locate the owner and
276	276	determine whether the land remains eligible to be appraised as
277	277	provided by this subchapter before determining that [a change in
278	278	use of] the land is no longer eligible for appraisal under this
279	279	subchapter [has occurred].
280	280	SECTION 2.06. Section 23.73(c), Tax Code, is amended to
281	281	read as follows:
282	282	(c) The [For the purposes of Section 23.76 of this code,
283	283	the] chief appraiser [also] shall determine the market value of
284	284	qualified timber land and shall record both the market value and the
285	285	appraised value in the appraisal records.
286	286	SECTION 2.07. Sections 31.01(c) and (c-1), Tax Code, are
287	287	amended to read as follows:
288	288	(c) The tax bill or a separate statement accompanying the
289	289	tax bill shall:
290	290	(1) identify the property subject to the tax;
291	291	(2) state the appraised value, assessed value, and
292	292	taxable value of the property;
293	293	(3) if the property is land appraised as provided by
294	294	Subchapter C, [D, E, or H,] Chapter 23, state the market value and
295	295	the taxable value for purposes of deferred or additional taxation
296	296	as provided by Section 23.46[, 23.55, 23.76, or 23.9807, as
297	297	applicable];
298	298	(4) if the property is land appraised as provided by
299	299	Subchapter D, E, or H, Chapter 23, state the market value of the
300	300	land;
301	301	(5) state the assessment ratio for the unit;
302	302	(6) [(5)] state the type and amount of any partial
303	303	exemption applicable to the property, indicating whether it applies
304	304	to appraised or assessed value;
305	305	(7) [(6)] state the total tax rate for the unit;
306	306	(8) [(7)] state the amount of tax due, the due date,
307	307	and the delinquency date;
308	308	(9) [(8)] explain the payment option and discounts
309	309	provided by Sections 31.03 and 31.05, if available to the unit's
310	310	taxpayers, and state the date on which each of the discount periods
311	311	provided by Section 31.05 concludes, if the discounts are
312	312	available;
313	313	(10) [(9)] state the rates of penalty and interest
314	314	imposed for delinquent payment of the tax;
315	315	(11) [(10)] include the name and telephone number of
316	316	the assessor for the unit and, if different, of the collector for
317	317	the unit;
318	318	(12) [(11)] for real property, state for the current
319	319	tax year and each of the preceding five tax years:
320	320	(A) the appraised value and taxable value of the
321	321	property;
322	322	(B) the total tax rate for the unit;
323	323	(C) the amount of taxes imposed on the property
324	324	by the unit; and
325	325	(D) the difference, expressed as a percent
326	326	increase or decrease, as applicable, in the amount of taxes imposed
327	327	on the property by the unit compared to the amount imposed for the
328	328	preceding tax year; and
329	329	(13) [(12)] for real property, state the differences,
330	330	expressed as a percent increase or decrease, as applicable, in the
331	331	following for the current tax year as compared to the fifth tax year
332	332	before that tax year:
333	333	(A) the appraised value and taxable value of the
334	334	property;
335	335	(B) the total tax rate for the unit; and
336	336	(C) the amount of taxes imposed on the property
337	337	by the unit.
338	338	(c-1) If for any of the preceding six tax years any
339	339	information required by Subsection (c)(12) [(c)(11)] or (13) [(12)]
340	340	to be included in a tax bill or separate statement is unavailable,
341	341	the tax bill or statement must state that the information is not
342	342	available for that year.
343	343	SECTION 2.08. Section 41.41(a), Tax Code, is amended to
344	344	read as follows:
345	345	(a) A property owner is entitled to protest before the
346	346	appraisal review board the following actions:
347	347	(1) determination of the appraised value of the
348	348	owner's property or, in the case of land appraised as provided by
349	349	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
350	350	or market value;
351	351	(2) unequal appraisal of the owner's property;
352	352	(3) inclusion of the owner's property on the appraisal
353	353	records;
354	354	(4) denial to the property owner in whole or in part of
355	355	a partial exemption;
356	356	(5) determination that the owner's land does not
357	357	qualify for appraisal as provided by Subchapter C, D, E, or H,
358	358	Chapter 23;
359	359	(6) identification of the taxing units in which the
360	360	owner's property is taxable in the case of the appraisal district's
361	361	appraisal roll;
362	362	(7) determination that the property owner is the owner
363	363	of property;
364	364	(8) a determination that a change in use of land
365	365	appraised under Subchapter C, [D, E, or H,] Chapter 23, has
366	366	occurred; or
367	367	(9) any other action of the chief appraiser, appraisal
368	368	district, or appraisal review board that applies to and adversely
369	369	affects the property owner.
370	370	SECTION 2.09. Section 41.44(a), Tax Code, is amended to
371	371	read as follows:
372	372	(a) Except as provided by Subsections (b), (c), (c-1), and
373	373	(c-2), to be entitled to a hearing and determination of a protest,
374	374	the property owner initiating the protest must file a written
375	375	notice of the protest with the appraisal review board having
376	376	authority to hear the matter protested:
377	377	(1) not later than May 15 or the 30th day after the
378	378	date that notice to the property owner was delivered to the property
379	379	owner as provided by Section 25.19, whichever is later;
380	380	(2) in the case of a protest of a change in the
381	381	appraisal records ordered as provided by Subchapter A of this
382	382	chapter or by Chapter 25, not later than the 30th day after the date
383	383	notice of the change is delivered to the property owner;
384	384	(3) in the case of a determination that a change in the
385	385	use of land appraised under Subchapter C, [D, E, or H,] Chapter 23,
386	386	has occurred, not later than the 30th day after the date the notice
387	387	of the determination is delivered to the property owner; or
388	388	(4) in the case of a determination of eligibility for a
389	389	refund under Section 23.1243, not later than the 30th day after the
390	390	date the notice of the determination is delivered to the property
391	391	owner.
392	392	SECTION 2.10. Section 60.022, Agriculture Code, is amended
393	393	to read as follows:
394	394	Sec. 60.022. CONTENTS OF PETITION. A petition filed under
395	395	Section 60.021 must:
396	396	(1) describe the boundaries of the proposed district
397	397	by metes and bounds or by lot and block number, if there is a
398	398	recorded map or plat and survey of the area;
399	399	(2) include a name for the proposed district, which
400	400	must include the term "Agricultural Development District";
401	401	(3) be signed by the landowners of any land to be
402	402	included within the proposed district and provide an acknowledgment
403	403	consistent with Section 121.001, Civil Practice and Remedies Code,
404	404	that the landowners desire the land to be included in the district;
405	405	(4) include the names of at least five persons who are
406	406	willing and qualified to serve as temporary directors of the
407	407	district;
408	408	(5) name each county in which any agricultural
409	409	facilities to be owned by the district are to be located;
410	410	(6) name each municipality in which any part of the
411	411	district is to be located;
412	412	(7) state the general nature of the proposed
413	413	development and the cost of the development as then estimated by the
414	414	petitioners;
415	415	(8) state the necessity and feasibility of the
416	416	proposed district and whether the district will serve the public
417	417	purpose of furthering agricultural interests;
418	418	(9) include a pledge that the district will make
419	419	payments in lieu of taxes to any school district and county in which
420	420	any real property to be owned by the district is located, in [as
421	421	follows:
422	422	[(A)] annual payments to each entity that are
423	423	equal to the amount of taxes imposed on the real property by the
424	424	entity in the year of the district's creation; and
425	425	[(B) a payment to each entity equal to the amount
426	426	that would be due under Section 23.55, Tax Code, on the district's
427	427	date of creation; and]
428	428	(10) include a pledge that, if the district employs
429	429	more than 50 persons, the district will make payments in lieu of
430	430	taxes to any school district, in addition to those made under
431	431	Subdivision (9), in an amount negotiated between the district and
432	432	the school district.
433	433	SECTION 2.11. Section 21.0421(e), Property Code, is amended
434	434	to read as follows:
435	435	(e) This section does not:
436	436	(1) authorize groundwater rights appraised separately
437	437	from the real property under this section to be appraised
438	438	separately from real property for property tax appraisal purposes;
439	439	or
440	440	(2) subject real property condemned for the purpose
441	441	described by Subsection (a) to an additional tax as provided by
442	442	Section 23.46 [or 23.55], Tax Code.
443	443	SECTION 2.12. The following provisions of the Tax Code are
444	444	repealed:
445	445	(1) Section 11.201;
446	446	(2) Section 23.55;
447	447	(3) Sections 23.58(c) and (d);
448	448	(4) Section 23.76;
449	449	(5) Section 23.86;
450	450	(6) Section 23.96; and
451	451	(7) Section 23.9807.
452	452	SECTION 2.13. The repeal of Sections 11.201, 23.55, 23.76,
453	453	23.86, 23.96, and 23.9807, Tax Code, by this Act does not affect an
454	454	additional tax imposed as a result of a sale or change of use of land
455	455	exempted under Section 11.20 or appraised under Subchapter D, E, F,
456	456	G, or H, Chapter 23, Tax Code, that occurred before the effective
457	457	date of this Act, and the former law is continued in effect for
458	458	purposes of that tax.
459	459	ARTICLE 3. EFFECTIVE DATE
460	460	SECTION 3.01. (a) Except as otherwise provided by this
461	461	section, this Act takes effect January 1, 2020.
462	462	(b) Article 1 of this Act takes effect only if the
463	463	constitutional amendment proposed by the 86th Legislature, Regular
464	464	Session, 2019, repealing the provision that subjects land
465	465	designated for agricultural use to an additional tax when the land
466	466	is diverted to a purpose other than agricultural use or sold is
467	467	approved by the voters. If that amendment is not approved by the
468	468	voters, Article 1 of this Act has no effect.
469	469	(c) Article 2 of this Act takes effect only if Article 1 of
470	470	this Act does not take effect. If Article 1 of this Act takes
471	471	effect, Article 2 of this Act has no effect.