86R1972 TJB-F
By: Zerwas H.B. No. 54
A BILL TO BE ENTITLED
AN ACT
relating to the system for protesting or appealing certain ad
valorem tax determinations; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.085(a), Tax Code, is amended to read as
follows:
(a) Notwithstanding any other provision in this title and
except as provided by this section, any notice, rendition,
application form, or completed application, or information
requested under Section 41.461(a)(2), that is required or permitted
by this title to be delivered between a chief appraiser, an
appraisal district, an appraisal review board, or any combination
of those persons and a property owner or [between a chief appraiser,
an appraisal district, an appraisal review board, or any
combination of those persons and] a person designated by a property
owner under Section 1.111(f) may be delivered in an electronic
format if the chief appraiser and the property owner or person
designated by the owner agree under this section.
SECTION 2. Chapter 5, Tax Code, is amended by adding Section
5.01 to read as follows:
Sec. 5.01. PROPERTY TAX ADMINISTRATION ADVISORY BOARD.
(a) The comptroller shall appoint the property tax administration
advisory board to advise the comptroller with respect to the
division or divisions within the office of the comptroller with
primary responsibility for state administration of property
taxation and state oversight of appraisal districts and local tax
offices. The advisory board may make recommendations to the
comptroller regarding improving the effectiveness and efficiency
of the property tax system, best practices, and complaint
resolution procedures.
(b) The advisory board is composed of at least six members
appointed by the comptroller. The members of the board should
include:
(1) representatives of property tax payers, appraisal
districts, and school districts; and
(2) a person who has knowledge or experience in
conducting ratio studies.
(c) The members of the advisory board serve at the pleasure
of the comptroller.
(d) Any advice to the comptroller relating to a matter
described by Subsection (a) that is provided by a member of the
advisory board must be provided at a meeting called by the
comptroller.
(e) Chapter 2110, Government Code, does not apply to the
advisory board.
SECTION 3. Sections 5.041(b) and (e-1), Tax Code, are
amended to read as follows:
(b) A member of the appraisal review board established for
an appraisal district must complete the course established under
Subsection (a). The course must provide at least eight hours of
classroom training and education. A member of the appraisal review
board may not participate in a hearing conducted by the board unless
the person has completed the course established under Subsection
(a) and received a certificate of course completion.
(e-1) In addition to the course established under
Subsection (a), the comptroller shall approve curricula and provide
materials for use in a continuing education course for members of an
appraisal review board. The course must provide at least four hours
of classroom training and education. The curricula and materials
must include information regarding:
(1) the cost, income, and market data comparison
methods of appraising property;
(2) the appraisal of business personal property;
(3) the determination of capitalization rates for
property appraisal purposes;
(4) the duties of an appraisal review board;
(5) the requirements regarding the independence of an
appraisal review board from the board of directors and the chief
appraiser and other employees of the appraisal district;
(6) the prohibitions against ex parte communications
applicable to appraisal review board members;
(7) the Uniform Standards of Professional Appraisal
Practice;
(8) the duty of the appraisal district to substantiate
the district's determination of the value of property;
(9) the requirements regarding the equal and uniform
appraisal of property;
(10) the right of a property owner to protest the
appraisal of the property as provided by Chapter 41; and
(11) a detailed explanation of each of the actions
described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413,
41.42, and 41.43 so that members are fully aware of each of the
grounds on which a property appraisal can be appealed.
SECTION 4. Chapter 5, Tax Code, is amended by adding Section
5.043 to read as follows:
Sec. 5.043. TRAINING OF ARBITRATORS. (a) This section
applies only to persons who have agreed to serve as arbitrators
under Chapter 41A.
(b) The comptroller shall:
(1) approve curricula and provide an arbitration
manual and other materials for use in training and educating
arbitrators;
(2) make all materials for use in training and
educating arbitrators freely available online; and
(3) establish and supervise a training program on
property tax law for the training and education of arbitrators.
(c) The training program must:
(1) emphasize the requirements regarding the equal and
uniform appraisal of property; and
(2) be at least four hours in length.
(d) The training program may be provided online. The
comptroller by rule shall prescribe the manner by which the
comptroller may verify that a person taking the training program
online has taken and completed the program.
(e) The comptroller may contract with service providers to
assist with the duties imposed under Subsection (b), but the
training program may not be provided by an appraisal district, the
chief appraiser or another employee of an appraisal district, a
member of the board of directors of an appraisal district, a member
of an appraisal review board, or a taxing unit. The comptroller may
assess a fee to recover a portion of the costs incurred for the
training program, but the fee may not exceed $50 for each person
trained.
(f) The comptroller shall prepare an arbitration manual for
use in the training program. The manual shall be updated regularly
and may be revised on request, in writing, to the comptroller. The
revised language must be approved by the unanimous agreement of a
committee selected by the comptroller and representing, equally,
taxpayers and chief appraisers. The person requesting the revision
must pay the costs of mediation if the comptroller determines that
mediation is required.
SECTION 5. Chapter 5, Tax Code, is amended by adding Section
5.104 to read as follows:
Sec. 5.104. APPRAISAL REVIEW BOARD SURVEY; REPORT. (a) The
comptroller shall prepare:
(1) an appraisal review board survey form that allows
an individual described by Subsection (b) to submit comments and
suggestions to the comptroller regarding an appraisal review board;
and
(2) instructions for completing and submitting the
form.
(b) The following individuals may complete and submit a
survey form under this section:
(1) a property owner who files a motion under Section
25.25 to correct the appraisal roll or a protest under Chapter 41;
(2) the designated agent of the property owner; or
(3) a designated representative of the appraisal
district in which the motion or protest is filed who attends the
hearing on the motion or protest.
(c) The survey form must allow an individual to submit
comments and suggestions regarding:
(1) the matters listed in Section 5.103(b); and
(2) any other matter related to the fairness and
efficiency of the appraisal review board.
(d) An appraisal district must provide the survey form and
the instructions for completing and submitting the form to each
property owner or designated agent of the owner:
(1) at or before each hearing conducted under Section
25.25 or Chapter 41 by the appraisal review board established for
the appraisal district or by a panel of the board; and
(2) with each order under Section 25.25 or 41.47
determining a motion or protest, as applicable, delivered by the
board or by a panel of the board.
(e) An individual who elects to submit the survey form must
submit the form to the comptroller as provided by this section. An
appraisal district may not accept a survey form submitted under
this section. An individual may submit only one survey form for
each motion or protest.
(f) The comptroller shall allow an individual to submit a
survey form to the comptroller in the following manner:
(1) in person;
(2) by mail;
(3) by electronic mail; or
(4) through a web page on the comptroller's Internet
website that allows the individual to complete and submit the form.
(g) An appraisal district may not require a property owner
or the designated agent of the owner to complete a survey form at
the appraisal office in order to be permitted to submit the form to
the comptroller.
(h) A property owner or the designated agent of the owner
who elects to submit a survey form provided to the owner or agent
under Subsection (d)(1) or (2) must submit the form not later than
the 45th day after the date the form is sent to the owner or agent
under Subsection (d)(2).
(i) A designated representative of an appraisal district
who elects to submit a survey form following a hearing conducted
under Section 25.25 or Chapter 41 must submit the form not later
than the 45th day after the date the form is sent to the property
owner or designated agent of the owner under Subsection (d)(2)
following that hearing.
(j) The comptroller shall issue an annual report that
summarizes the information included in the survey forms submitted
during the preceding year. The report may not disclose the identity
of an individual who submitted a survey form.
(k) The comptroller shall adopt rules necessary to
implement this section.
SECTION 6. Sections 6.412(a) and (d), Tax Code, are amended
to read as follows:
(a) An individual is ineligible to serve on an appraisal
review board if the individual:
(1) is related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an individual who is engaged in the business of
appraising property for compensation for use in proceedings under
this title or of representing property owners for compensation in
proceedings under this title in the appraisal district for which
the appraisal review board is established;
(2) owns property on which delinquent taxes have been
owed to a taxing unit for more than 60 days after the date the
individual knew or should have known of the delinquency unless:
(A) the delinquent taxes and any penalties and
interest are being paid under an installment payment agreement
under Section 33.02; or
(B) a suit to collect the delinquent taxes is
deferred or abated under Section 33.06 or 33.065; or
(3) is related within the third degree by
consanguinity or within the second degree by affinity, as
determined under Chapter 573, Government Code, to a member of:
(A) the appraisal district's board of directors;
or
(B) the appraisal review board.
(d) A person is ineligible to serve on the appraisal review
board of an appraisal district established for a county described
by Section 6.41(d-1) [having a population of more than 100,000] if
the person:
(1) is a former member of the board of directors,
former officer, or former employee of the appraisal district;
(2) served as a member of the governing body or officer
of a taxing unit for which the appraisal district appraises
property, until the fourth anniversary of the date the person
ceased to be a member or officer; [or]
(3) appeared before the appraisal review board for
compensation during the two-year period preceding the date the
person is appointed; or
(4) served for all or part of three previous terms as a
board member or auxiliary board member on the appraisal review
board.
SECTION 7. Section 6.42, Tax Code, is amended by amending
Subsection (a) and adding Subsection (d) to read as follows:
(a) A majority of the appraisal review board constitutes a
quorum. The local administrative district judge under Subchapter
D, Chapter 74, Government Code, in the county in which [board of
directors of] the appraisal district is established [by resolution]
shall select a chairman and a secretary from among the members of
the appraisal review board. The judge [board of directors of the
appraisal district] is encouraged to select as chairman [of the
appraisal review board] a member of the appraisal review board, if
any, who has a background in law and property appraisal.
(d) The concurrence of a majority of the members of the
appraisal review board or a panel of the board present at a meeting
of the board or panel is sufficient for a recommendation,
determination, decision, or other action by the board or panel, and
the concurrence of more than a majority of the members of the board
or panel may not be required.
SECTION 8. Section 41.46(a), Tax Code, is amended to read as
follows:
(a) The appraisal review board before which a protest
hearing is scheduled shall deliver written notice to the property
owner initiating a protest of the date, time, [and] place, and
subject matter of [fixed for] the hearing on the protest and of the
property owner's entitlement to a postponement of the hearing as
provided by Section 41.45 unless the property owner waives in
writing notice of the hearing. The board shall deliver the notice
not later than the 15th day before the date of the hearing.
SECTION 9. Section 41.461, Tax Code, is amended to read as
follows:
Sec. 41.461. NOTICE OF CERTAIN MATTERS BEFORE HEARING;
DELIVERY OF REQUESTED INFORMATION. (a) At least 14 days before the
first scheduled [a] hearing on a protest, the chief appraiser
shall:
(1) deliver a copy of the pamphlet prepared by the
comptroller under Section 5.06 [5.06(a)] to the property owner
initiating the protest if the owner is representing himself, or to
an agent representing the owner if requested by the agent;
(2) inform the property owner that the owner or the
agent of the owner is entitled on request to [may inspect and may
obtain] a copy of the data, schedules, formulas, and all other
information the chief appraiser will [plans to] introduce at the
hearing to establish any matter at issue; and
(3) deliver a copy of the hearing procedures
established by the appraisal review board under Section 41.66 to
the property owner.
(b) The chief appraiser may not charge a property owner or
the designated agent of the owner for copies provided to the [an]
owner or designated agent under this section, regardless of the
manner in which the copies are prepared or delivered [may not exceed
the charge for copies of public information as provided under
Subchapter F, Chapter 552, Government Code, except:
[(1) the total charge for copies provided in
connection with a protest of the appraisal of residential property
may not exceed $15 for each residence; and
[(2) the total charge for copies provided in
connection with a protest of the appraisal of a single unit of
property subject to appraisal, other than residential property, may
not exceed $25].
(c) A chief appraiser must deliver information requested by
a property owner or the agent of the owner under Subsection (a)(2):
(1) by regular first-class mail;
(2) in an electronic format as provided by an
agreement under Section 1.085; or
(3) subject to Subsection (d), by referring the
property owner or the agent of the owner to the exact Internet
location or uniform resource locator (URL) address on an Internet
website maintained by the appraisal district on which the requested
information is identifiable and readily available.
(d) If a chief appraiser provides a property owner or the
agent of the owner the Internet location or address of information
under Subsection (c)(3), the notice must contain a statement in a
conspicuous font that clearly indicates that the property owner or
the agent of the owner may on request receive the information by
regular first-class mail. On request by a property owner or the
agent of the owner, the chief appraiser must provide the
information by regular first-class mail.
SECTION 10. Section 41.47, Tax Code, is amended by adding
Subsections (a-1) and (f) and amending Subsections (d) and (e) to
read as follows:
(a-1) The board may not determine the appraised value of the
property that is the subject of a protest to be an amount greater
than the appraised value of the property as shown in the appraisal
records submitted to the board by the chief appraiser under Section
25.22 or 25.23.
(d) The board shall deliver by certified mail:
(1) a notice of issuance of the order and a copy of the
order to the property owner and the chief appraiser; and
(2) a copy of the appraisal review board survey form
prepared under Section 5.104 and instructions for completing and
submitting the form to the property owner.
(e) The notice of the issuance of the order must contain a
prominently printed statement in upper-case bold lettering
informing the property owner in clear and concise language of the
property owner's right to appeal the order of the board [board's
decision] to district court. The statement must describe the
deadline prescribed by Section 42.06(a) [of this code] for filing a
written notice of appeal[,] and the deadline prescribed by Section
42.21(a) [of this code] for filing the petition for review with the
district court.
(f) The appraisal review board shall take the actions
required by Subsections (a) and (d) not later than the 15th day
after the date the hearing on the protest is concluded.
SECTION 11. Section 41.66, Tax Code, is amended by amending
Subsections (h), (i), and (j) and adding Subsections (j-1) and (p)
to read as follows:
(h) The appraisal review board shall postpone a hearing on a
protest if the property owner or the designated agent of the owner
requests additional time to prepare for the hearing and establishes
to the board that the chief appraiser failed to comply with Section
41.461. The board is not required to postpone a hearing more than
one time under this subsection.
(i) A hearing on a protest filed by a property owner or the
designated agent of the owner [who is not represented by an agent
designated under Section 1.111] shall be set for a time and date
certain. If the hearing is not commenced within two hours of the
time set for the hearing, the appraisal review board shall postpone
the hearing on the request of the property owner or the designated
agent of the owner.
(j) On the request of a property owner or the [a] designated
agent of the owner, an appraisal review board shall schedule
hearings on protests concerning up to 20 designated properties to
be held consecutively on the same day. The designated properties
must be identified in the same notice of protest, and the notice
must contain in boldfaced type the statement "request for same-day
protest hearings." A property owner or the designated agent of the
owner may [not] file more than one request under this subsection
with the appraisal review board in the same tax year. The appraisal
review board may schedule hearings on protests concerning more than
20 properties filed by the same property owner or the designated
agent of the owner and may use different panels to conduct the
hearings based on the board's customary scheduling. The appraisal
review board may follow the practices customarily used by the board
in the scheduling of hearings under this subsection.
(j-1) An appraisal review board may schedule the hearings on
all protests filed by a property owner or the designated agent of
the owner to be held consecutively. The notice of the hearings must
state the date and time that the first hearing will begin, state the
date the last hearing will end, and list the order in which the
hearings will be held. The order of the hearings listed in the
notice may not be changed without the agreement of the property
owner or the designated agent of the owner, the chief appraiser, and
the appraisal review board. The board may not reschedule a hearing
for which notice is given under this subsection to a date earlier
than the seventh day after the date the last hearing was scheduled
to end unless agreed to by the property owner or the designated
agent of the owner, the chief appraiser, and the appraisal review
board. Unless agreed to by the parties, the board must provide
written notice of the date and time of the rescheduled hearing to
the property owner or the designated agent of the owner not later
than the seventh day before the date of the hearing.
(p) At the end of a hearing on a protest, the appraisal
review board shall provide the property owner or the designated
agent of the owner one or more documents indicating that the members
of the board hearing the protest signed the affidavit required by
Subsection (g).
SECTION 12. Section 41.67(d), Tax Code, is amended to read
as follows:
(d) Information that was previously requested under Section
41.461 by the protesting party that was not delivered [made
available] to the protesting party at least 14 days before the first
scheduled [or postponed] hearing may not be used or offered in any
form as evidence in the hearing, including as a document or through
argument or testimony.
SECTION 13. Section 41.71, Tax Code, is amended to read as
follows:
Sec. 41.71. EVENING AND WEEKEND HEARINGS. (a) An
appraisal review board by rule shall provide for hearings on
protests [in the evening or] on a Saturday or after 5 p.m. on a
weekday [Sunday].
(b) The board may not schedule:
(1) the first hearing on a protest held on a weekday
evening to begin after 7 p.m.; or
(2) a hearing on a protest on a Sunday.
SECTION 14. Section 41A.06(b), Tax Code, is amended to read
as follows:
(b) To initially qualify to serve as an arbitrator under
this chapter, a person must:
(1) meet the following requirements, as applicable:
(A) be licensed as an attorney in this state; or
(B) have:
(i) completed at least 30 hours of training
in arbitration and alternative dispute resolution procedures from a
university, college, or legal or real estate trade association; and
(ii) been licensed or certified
continuously during the five years preceding the date the person
agrees to serve as an arbitrator as:
(a) a real estate broker or sales
agent under Chapter 1101, Occupations Code;
(b) a real estate appraiser under
Chapter 1103, Occupations Code; or
(c) a certified public accountant
under Chapter 901, Occupations Code; [and]
(2) complete the course for training and education of
appraisal review board members established under Section 5.041 and
be issued a certificate indicating course completion;
(3) complete the training program on property tax law
for the training and education of arbitrators established under
Section 5.043; and
(4) agree to conduct an arbitration for a fee that is
not more than:
(A) $400, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $500,000 or less,
as determined by the order;
(B) $450, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than
$500,000, as determined by the order;
(C) $450, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $1 million or
less, as determined by the order;
(D) $750, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than $1
million but not more than $2 million, as determined by the order;
(E) $1,000, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $2 million but not more than $3 million, as determined by the
order; or
(F) $1,500, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $3 million but not more than $5 million, as determined by the
order.
SECTION 15. Section 41A.061(b), Tax Code, is amended to
read as follows:
(b) To renew the person's agreement to serve as an
arbitrator, the person must:
(1) file a renewal application with the comptroller at
the time and in the manner prescribed by the comptroller;
(2) continue to meet the requirements provided by
Sections 41A.06(b)(1) and (4) [Section 41A.06(b)]; and
(3) during the preceding two years have completed at
least eight hours of continuing education in arbitration and
alternative dispute resolution procedures offered by a university,
college, real estate trade association, or legal association.
SECTION 16. Section 41A.09(b), Tax Code, is amended to read
as follows:
(b) An award under this section:
(1) must include a determination of the appraised or
market value, as applicable, of the property that is the subject of
the appeal;
(2) may include any remedy or relief a court may order
under Chapter 42 in an appeal relating to the appraised or market
value of property;
(3) shall specify the arbitrator's fee, which may not
exceed the amount provided by Section 41A.06(b)(4) [41A.06(b)(2)];
(4) is final and may not be appealed except as
permitted under Section 171.088, Civil Practice and Remedies Code,
for an award subject to that section; and
(5) may be enforced in the manner provided by
Subchapter D, Chapter 171, Civil Practice and Remedies Code.
SECTION 17. Sections 5.103(e) and (f), 6.412(e), and
41A.06(c), Tax Code, are repealed.
SECTION 18. Section 5.041, Tax Code, as amended by this Act,
applies only to an appraisal review board member appointed to serve
a term of office that begins on or after the effective date of this
Act.
SECTION 19. The comptroller shall implement Section 5.043,
Tax Code, as added by this Act, and adopt rules required by that
section as soon as practicable after the effective date of this Act.
SECTION 20. The comptroller shall adopt rules necessary to
implement Section 5.104, Tax Code, as added by this Act, and shall
prepare and make available the survey form and instructions for
completing and submitting the form required by that section as soon
as practicable after the effective date of this Act. An appraisal
district is not required to provide the survey form or instructions
under a requirement of that section until the form and instructions
are prepared and made available by the comptroller.
SECTION 21. Section 6.412, Tax Code, as amended by this Act,
does not affect the eligibility of a person serving on an appraisal
review board immediately before the effective date of this Act to
continue to serve on the board for the term to which the member was
appointed.
SECTION 22. Section 6.42(d), Tax Code, as added by this Act,
applies only to a recommendation, determination, decision, or other
action by an appraisal review board or a panel of such a board on or
after the effective date of this Act. A recommendation,
determination, decision, or other action by an appraisal review
board or a panel of such a board before the effective date of this
Act is governed by the law as it existed immediately before that
date, and that law is continued in effect for that purpose.
SECTION 23. The changes in law made by this Act to Chapter
41, Tax Code, apply only to a protest for which the notice of
protest was filed by a property owner or the designated agent of the
owner with the appraisal review board established for an appraisal
district on or after the effective date of this Act.
SECTION 24. Section 41A.09, Tax Code, as amended by this
Act, applies only to a request for binding arbitration under
Chapter 41A, Tax Code, that is filed on or after the effective date
of this Act. A request for binding arbitration under Chapter 41A,
Tax Code, that is filed before the effective date of this Act is
governed by the law in effect on the date the request is filed, and
the former law is continued in effect for that purpose.
SECTION 25. The changes in law made by this Act in the
qualifications of persons serving as arbitrators in binding
arbitrations of appeals of appraisal review board orders do not
affect the entitlement of a person serving as an arbitrator
immediately before the effective date of this Act to continue to
serve as an arbitrator and to conduct hearings on arbitrations
until the person is required to renew the person's agreement with
the comptroller to serve as an arbitrator. The changes in law apply
only to a person who initially qualifies to serve as an arbitrator
or who renews the person's agreement with the comptroller to serve
as an arbitrator on or after the effective date of this Act. This
Act does not prohibit a person who is serving as an arbitrator on
the effective date of this Act from renewing the person's agreement
with the comptroller to serve as an arbitrator if the person has the
qualifications required for an arbitrator under the Tax Code as
amended by this Act.
SECTION 26. This Act takes effect January 1, 2020.