Texas 2019 - 86th Regular

Texas House Bill HB3493 Compare Versions

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

Old	New	Differences
1	1	86R8687 SMT-D
2	2	By: Talarico H.B. No. 3493
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a requirement that a purchaser of commercial real
8	8	property disclose the sales price of the property to the appraisal
9	9	district and to the use of that information by the appraisal
10	10	district; creating a criminal offense.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The heading to Subchapter C, Chapter 22, Tax
13	13	Code, is amended to read as follows:
14	14	SUBCHAPTER C. [OTHER] REPORTS OF POLITICAL SUBDIVISION ACTIONS
15	15	SECTION 2. Chapter 22, Tax Code, is amended by adding
16	16	Subchapter D to read as follows:
17	17	SUBCHAPTER D. REPORT OF SALES PRICE
18	18	Sec. 22.61. DEFINITION. In this subchapter, "commercial
19	19	real property" means real property that is held or used for the
20	20	production of income.
21	21	Sec. 22.62. SALES PRICE DISCLOSURE REPORT. (a) Except as
22	22	provided by Subsection (b), not later than the 10th day after the
23	23	date the deed is recorded in the county real property records, the
24	24	purchaser or grantee of commercial real property under a recorded
25	25	deed conveying an interest in the real property shall file a sales
26	26	price disclosure report with the chief appraiser of the appraisal
27	27	district established for the county in which the property is
28	28	located.
29	29	(b) This section does not apply to a sale or other transfer
30	30	of commercial real property if:
31	31	(1) the sale or other transfer is made:
32	32	(A) under a court order;
33	33	(B) to or from a trustee in bankruptcy;
34	34	(C) under a power of sale under a deed of trust or
35	35	other encumbrance secured by the property;
36	36	(D) by a deed in lieu of foreclosure;
37	37	(E) by one co-owner to one or more other
38	38	co-owners;
39	39	(F) to a spouse or to a person or persons in the
40	40	first degree of lineal consanguinity of one or more of the sellers
41	41	or grantors;
42	42	(G) to or from a governmental entity;
43	43	(H) through the use of eminent domain; or
44	44	(I) to a utility company and the real property is
45	45	an easement, license, or right-of-way; or
46	46	(2) the real property is a severed mineral interest.
47	47	(c) A sales price disclosure report must be signed by the
48	48	purchaser or grantee of the commercial real property described in
49	49	the report.
50	50	Sec. 22.63. REPORT FORM. (a) A sales price disclosure
51	51	report filed under this subchapter must read as follows, with the
52	52	appropriate information included in the blanks:
53	53	SALES PRICE DISCLOSURE REPORT
54	54	Section 22.62, Tax Code, requires a purchaser or grantee of
55	55	commercial real property under a deed to prepare this report, sign
56	56	it, and file it with the chief appraiser of the appraisal district
57	57	established for the county in which the property is located not
58	58	later than the 10th day after the date the deed is recorded. This
59	59	report is not required to be filed if the sale or transfer is made:
60	60	(1) under a court order; (2) to or from a trustee in bankruptcy; (3)
61	61	under a deed of trust or other encumbrance secured by the property;
62	62	(4) by a deed in lieu of foreclosure; (5) between co-owners; (6)
63	63	between spouses or between family members in the first degree of
64	64	lineal consanguinity; (7) to or from a governmental entity; (8)
65	65	through the use of eminent domain; or (9) to a utility company and
66	66	the property is an easement, license, or right-of-way. In
67	67	addition, this report is not required to be filed if the property
68	68	being sold or transferred is a severed mineral interest. Knowingly
69	69	making a false statement on this form is grounds for prosecution of
70	70	a Class A misdemeanor or a state jail felony under Section 37.10,
71	71	Penal Code. The chief appraiser may not use the information in this
72	72	form as the sole basis on which to increase the market value of the
73	73	property.
74	74	Seller's or grantor's name: ___________________
75	75	Purchaser's or grantee's name: ________________
76	76	Purchaser's or grantee's address: _____________
77	77	Property description (as stated in deed): _____
78	78	Sales price of or other consideration paid for the property:
79	79	________
80	80	The method used to finance the sales price or other
81	81	consideration was: □ none (cash sale) □ cash and third-party
82	82	financing □ cash and seller financing □ exchange of other
83	83	property □ other, describe: _________________________________
84	84	Describe any unusual or extraordinary terms of the sale or
85	85	transfer that affected the amount of the sales price or other
86	86	consideration: _____________________________
87	87	Provide any additional information relevant to the sale or
88	88	transfer, including:
89	89	(1) whether the sale or transfer involved property
90	90	other than real property and the type of property, whether tangible
91	91	or intangible, involved in the sale or transfer;
92	92	(2) whether the sale or transfer involved property
93	93	located in more than one county and, if so, the portion of the sales
94	94	price or other consideration allocated to the portion of the
95	95	property located in each county;
96	96	(3) in the case of a sale, whether the sale is the sale
97	97	of an entire business or business unit; and
98	98	(4) any other facts or circumstances that affected the
99	99	sales price or other consideration (optional):
100	100	_____________________________
101	101	To the best of my knowledge, this statement is true and
102	102	accurate.
103	103	Purchaser's or grantee's signature: _______________
104	104	Date: ____________
105	105	Return this form to: ______________________________.
106	106	(b) The appraisal district shall include at the end of the
107	107	form instructions for the filing of the form by mail, hand delivery,
108	108	or, if permitted by the chief appraiser, electronic mail or other
109	109	electronic means.
110	110	(c) Each appraisal district shall prepare and make
111	111	available sales price disclosure report forms that conform to the
112	112	requirements of this section. Except for instructions for the
113	113	filing of the form, no additional information may be required to be
114	114	included in a sales price disclosure report form.
115	115	Sec. 22.64. FILING AND RECEIPT OF REPORT. (a) A purchaser
116	116	or grantee may file a sales price disclosure report with a chief
117	117	appraiser by mail, hand delivery, or, if permitted by the chief
118	118	appraiser, electronic mail or other electronic means.
119	119	(b) On receipt of the completed sales price disclosure
120	120	report, the chief appraiser shall provide to the purchaser or
121	121	grantee a written acknowledgement that the report has been
122	122	received. If the acknowledgement of receipt is mailed, the chief
123	123	appraiser shall mail it to the purchaser or grantee at the address
124	124	provided in the report.
125	125	Sec. 22.65. PREPARATION OF REPORT; IMMUNITY FROM LIABILITY.
126	126	(a) A sales price disclosure report must be prepared by the
127	127	purchaser or grantee of the property described in the report or by
128	128	another person on behalf of the purchaser or grantee.
129	129	(b) A person who prepares a sales price disclosure report on
130	130	behalf of a purchaser or grantee of the property described in the
131	131	report is not liable to any person for preparing the report or for
132	132	any unintentional error or omission in the report.
133	133	Sec. 22.66. ACTION TO COMPEL COMPLIANCE. The chief
134	134	appraiser may bring an action for an injunction to compel a person
135	135	to comply with the requirements of this subchapter. If the court
136	136	finds that this subchapter applies and that the person has failed to
137	137	fully comply with its requirements, the court:
138	138	(1) shall order the person to comply; and
139	139	(2) may assess costs and reasonable attorney's fees
140	140	against the person.
141	141	Sec. 22.67. CONFIDENTIAL INFORMATION. (a) A sales price
142	142	disclosure report filed with a chief appraiser under this
143	143	subchapter is confidential and not open to public inspection. The
144	144	report and the information it contains may not be disclosed to
145	145	another person other than an employee of the appraisal district who
146	146	appraises property, except as provided by Subsection (b).
147	147	(b) Information that is confidential under Subsection (a)
148	148	may be disclosed:
149	149	(1) in a judicial or administrative proceeding under a
150	150	lawful subpoena;
151	151	(2) to a purchaser, grantee, seller, or grantor named
152	152	in the report or in the deed to which the report applies or to a
153	153	representative of the purchaser, grantee, seller, or grantor under
154	154	a written authorization signed by the purchaser, grantee, seller,
155	155	or grantor;
156	156	(3) to the comptroller or to an assessor for a taxing
157	157	unit in which the property described in the report is located;
158	158	(4) in a judicial or administrative proceeding related
159	159	to real property taxation:
160	160	(A) to which the purchaser, grantee, seller, or
161	161	grantor is a party;
162	162	(B) to which an owner of the property described
163	163	in the report is a party; or
164	164	(C) by the appraisal district for the purpose of
165	165	establishing a value of the property or of providing evidence of
166	166	comparable sales to appraise another property;
167	167	(5) for statistical purposes if the information is
168	168	provided in a form that does not identify a specific property or
169	169	specific purchaser, grantee, seller, or grantor;
170	170	(6) if and to the extent that the information is
171	171	required to be included in a public document or record that the
172	172	appraisal office is required to prepare or maintain; or
173	173	(7) to a taxing unit or its legal representative that
174	174	is engaged in the collection of delinquent taxes on the property
175	175	described in the report.
176	176	(c) Information that is disclosed under this section does
177	177	not lose its confidential character.
178	178	(d) A person, other than the purchaser, grantee, seller, or
179	179	grantor, who obtains a sales price disclosure report or information
180	180	from the report commits an offense if the person:
181	181	(1) discloses the report or information to a person
182	182	who is not authorized under this section to receive the report or
183	183	information; or
184	184	(2) permits the person to whom the report or
185	185	information is disclosed to view, read, or copy the report or
186	186	information.
187	187	(e) An offense under Subsection (d) is a Class B
188	188	misdemeanor.
189	189	(f) It is a defense to prosecution under Subsection (d) that
190	190	the person who received information contained in the sales price
191	191	disclosure report obtained the information from:
192	192	(1) a purchaser, grantee, seller, or grantor of the
193	193	property described in the report; or
194	194	(2) a document or record other than the sales price
195	195	disclosure report.
196	196	SECTION 3. Section 23.013, Tax Code, is amended by adding
197	197	Subsection (e) to read as follows:
198	198	(e) The chief appraiser may use information contained in a
199	199	sales price disclosure report filed under Subchapter D, Chapter 22,
200	200	in determining the market value of commercial real property but may
201	201	not increase the market value of the real property described in the
202	202	report solely on the basis of the information contained in the
203	203	report.
204	204	SECTION 4. (a) As soon as practicable after the effective
205	205	date of this section, but not later than January 1, 2020, each
206	206	appraisal district shall prepare and make available sales price
207	207	disclosure report forms as provided by Section 22.63, Tax Code, as
208	208	added by this Act.
209	209	(b) This section takes effect September 1, 2019.
210	210	SECTION 5. This Act applies only to a sale or other transfer
211	211	of commercial real property that occurs on or after January 1, 2020.
212	212	SECTION 6. Except as otherwise provided by this Act, this
213	213	Act takes effect January 1, 2020.