Texas 2021 - 87th Regular

Texas House Bill HB1395 Compare Versions

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

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1	1	By: Middleton H.B. No. 1395
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to ad valorem taxation.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Sections 5.041(c), (e-1), (e-3), and (g), Tax
9	9	Code, are amended to read as follows:
10	10	(c) The comptroller may contract with service providers to
11	11	assist with the duties imposed under Subsection (a), but the course
12	12	required may not be provided by an appraisal office [district], the
13	13	chief appraiser or another employee of an appraisal office
14	14	[district], the county assessor-collector who governs [a member of
15	15	the board of directors of] an appraisal office [district], a member
16	16	of an appraisal review board, or a taxing unit. The comptroller may
17	17	assess a fee to recover a portion of the costs incurred for the
18	18	training course, but the fee may not exceed $50 for each person
19	19	trained. If the training is provided to an individual other than a
20	20	member of an appraisal review board, the comptroller may assess a
21	21	fee not to exceed $50 for each person trained.
22	22	(e-1) In addition to the course established under
23	23	Subsection (a), the comptroller shall approve curricula and provide
24	24	materials for use in a continuing education course for members of an
25	25	appraisal review board. The course must provide at least four hours
26	26	of classroom training and education. The curricula and materials
27	27	must include information regarding:
28	28	(1) the cost, income, and market data comparison
29	29	methods of appraising property;
30	30	(2) [the appraisal of business personal property;
31	31	[(3)] the determination of capitalization rates for
32	32	property appraisal purposes;
33	33	(3) [(4)] the duties of an appraisal review board;
34	34	(4) [(5)] the requirements regarding the independence
35	35	of an appraisal review board from the county assessor-collector who
36	36	governs the appraisal office [board of directors] and the chief
37	37	appraiser and other employees of the appraisal office [district];
38	38	(5) [(6)] the prohibitions against ex parte
39	39	communications applicable to appraisal review board members;
40	40	(6) [(7)] the Uniform Standards of Professional
41	41	Appraisal Practice;
42	42	(7) [(8)] the duty of the appraisal office [district]
43	43	to substantiate the office's [district's] determination of the
44	44	value of property;
45	45	(8) [(9)] the requirements regarding the equal and
46	46	uniform appraisal of property;
47	47	(9) [(10)] the right of a property owner to protest
48	48	the appraisal of the property as provided by Chapter 41; and
49	49	(10) [(11)] a detailed explanation of each of the
50	50	actions described by Sections 25.25, 41.41(a), 41.411, 41.412,
51	51	41.413, 41.42, and 41.43 so that members are fully aware of each of
52	52	the grounds on which a property appraisal can be appealed.
53	53	(e-3) The comptroller may contract with service providers
54	54	to assist with the duties imposed under Subsection (e-1), but the
55	55	course required by that subsection may not be provided by an
56	56	appraisal office [district], the chief appraiser or another
57	57	employee of an appraisal office [district], the county
58	58	assessor-collector who governs [a member of the board of directors
59	59	of] an appraisal office [district], a member of an appraisal review
60	60	board, or a taxing unit. The comptroller may assess a fee to
61	61	recover a portion of the costs incurred for the continuing
62	62	education course, but the fee may not exceed $50 for each person
63	63	trained. If the training is provided to an individual other than a
64	64	member of an appraisal review board, the comptroller may assess a
65	65	fee not to exceed $50 for each person trained.
66	66	(g) Except during a hearing or other appraisal review board
67	67	proceeding and as provided by Subsection (h) and Section
68	68	6.411(c-1), the following persons may not communicate with a member
69	69	of an appraisal review board about a course provided under this
70	70	section or any matter presented or discussed during the course:
71	71	(1) the chief appraiser of the appraisal office
72	72	[district] for which the appraisal review board is established;
73	73	(2) another employee of the appraisal office
74	74	[district] for which the appraisal review board is established;
75	75	(3) the county assessor-collector who governs [a
76	76	member of the board of directors of] the appraisal office
77	77	[district] for which the appraisal review board is established;
78	78	(4) an officer or employee of a taxing unit that
79	79	participates in the appraisal office [district] for which the
80	80	appraisal review board is established; and
81	81	(5) an attorney who represents or whose law firm
82	82	represents the appraisal office [district] or a taxing unit that
83	83	participates in the appraisal office [district] for which the
84	84	appraisal review board is established.
85	85	SECTION 2. The heading to Subchapter A, Chapter 6, Tax Code,
86	86	is amended to read as follows:
87	87	SUBCHAPTER A. APPRAISAL OFFICES [DISTRICTS]
88	88	SECTION 3. Section 6.01, Tax Code, is amended to read as
89	89	follows:
90	90	Sec. 6.01. APPRAISAL OFFICES [DISTRICTS] ESTABLISHED. (a)
91	91	An appraisal office [district] is established in each county.
92	92	(b) The office [district] is responsible for appraising
93	93	property in the county for which the office is established
94	94	[district] for ad valorem tax purposes of each taxing unit that
95	95	imposes ad valorem taxes on property in the county [district].
96	96	(c) An appraisal office [district] is governed by the
97	97	assessor-collector of the county for which the office is
98	98	established and is an administrative office of the county
99	99	assessor-collector [a political subdivision of the state].
100	100	(d) For purposes of this title, each taxing unit with
101	101	territory in the county is considered to participate in the
102	102	appraisal office established for the county.
103	103	(e) A reference in this title or other law to:
104	104	(1) an appraisal district means an appraisal office;
105	105	(2) the territory of an appraisal district means the
106	106	county for which an appraisal office is established; and
107	107	(3) the board of directors of an appraisal district
108	108	means the assessor-collector of the county for which an appraisal
109	109	office is established.
110	110	SECTION 4. Section 6.02, Tax Code, is amended to read as
111	111	follows:
112	112	Sec. 6.02. APPRAISAL OFFICE AUTHORITY WITHIN COUNTY
113	113	[DISTRICT BOUNDARIES]. (a) An [The] appraisal office has
114	114	authority under this title in the territory included within
115	115	[district's boundaries are the same as] the county's boundaries.
116	116	(b) This section does not preclude the county assessor-
117	117	collectors who govern [board of directors of] two or more adjoining
118	118	appraisal offices [districts] from providing for the operation of a
119	119	consolidated appraisal office [district] by interlocal contract.
120	120	SECTION 5. The heading to Section 6.035, Tax Code, is
121	121	amended to read as follows:
122	122	Sec. 6.035. RESTRICTIONS ON ELIGIBILITY AND CONDUCT OF
123	123	COUNTY ASSESSOR-COLLECTORS [BOARD MEMBERS] AND CHIEF APPRAISERS
124	124	AND THEIR RELATIVES.
125	125	SECTION 6. Sections 6.035(a), (b), and (d), Tax Code, are
126	126	amended to read as follows:
127	127	(a) An individual is [ineligible to serve on an appraisal
128	128	district board of directors and is] disqualified from employment as
129	129	chief appraiser if the individual:
130	130	(1) is related within the second degree by
131	131	consanguinity or affinity, as determined under Chapter 573,
132	132	Government Code, to an individual who is engaged in the business of
133	133	appraising property for compensation for use in proceedings under
134	134	this title or of representing property owners for compensation in
135	135	proceedings under this title in the appraisal office [district]; or
136	136	(2) owns property on which delinquent taxes have been
137	137	owed to a taxing unit for more than 60 days after the date the
138	138	individual knew or should have known of the delinquency unless:
139	139	(A) the delinquent taxes and any penalties and
140	140	interest are being paid under an installment payment agreement
141	141	under Section 33.02; or
142	142	(B) a suit to collect the delinquent taxes is
143	143	deferred or abated under Section 33.06 or 33.065.
144	144	(b) A [member of an appraisal district board of directors or
145	145	a] chief appraiser commits an offense if the [board member
146	146	continues to hold office or the] chief appraiser remains employed
147	147	knowing that an individual related within the second degree by
148	148	consanguinity or affinity, as determined under Chapter 573,
149	149	Government Code, to the [board member or] chief appraiser is
150	150	engaged in the business of appraising property for compensation for
151	151	use in proceedings under this title or of representing property
152	152	owners for compensation in proceedings under this title in the
153	153	appraisal office [district] in which the [member serves or the]
154	154	chief appraiser is employed. An offense under this subsection is a
155	155	Class B misdemeanor.
156	156	(d) An appraisal performed by a chief appraiser in a private
157	157	capacity or by an individual related within the second degree by
158	158	consanguinity or affinity, as determined under Chapter 573,
159	159	Government Code, to the chief appraiser may not be used as evidence
160	160	in a protest or challenge under Chapter 41 or an appeal under
161	161	Chapter 42 concerning property that is taxable in the county for
162	162	which the appraisal office that employs [district in which] the
163	163	chief appraiser is established [employed].
164	164	SECTION 7. Sections 6.036(b), (c), and (f), Tax Code, are
165	165	amended to read as follows:
166	166	(b) An appraisal office [district] may not enter into a
167	167	contract with the county assessor-collector who governs [a member
168	168	of the board of directors of] the appraisal office [district] or
169	169	with a business entity in which the county assessor-collector [a
170	170	member of the board] has a substantial interest.
171	171	(c) A taxing unit may not enter into a contract relating to
172	172	the performance of an activity governed by this title with a
173	173	business entity in which the county assessor-collector who governs
174	174	[a member of the board of directors of] an appraisal office
175	175	[district] in which the taxing unit participates [or with a
176	176	business entity in which a member of the board] has a substantial
177	177	interest.
178	178	(f) This section does not limit the application of any other
179	179	law, including the common law relating to conflicts of interest, to
180	180	a county assessor-collector [an appraisal district director].
181	181	SECTION 8. Section 6.05, Tax Code, is amended to read as
182	182	follows:
183	183	Sec. 6.05. APPRAISAL OFFICE; CHIEF APPRAISER AND OTHER
184	184	EMPLOYEES. (a) Except as authorized by Subsection (b) [of this
185	185	section], each county assessor-collector [appraisal district]
186	186	shall establish an appraisal office. The appraisal office must be
187	187	located in the county for which the office [district] is
188	188	established. An appraisal office [district] may establish branch
189	189	appraisal offices outside the county for which the office
190	190	[district] is established.
191	191	(b) The county assessor-collector who governs [board of
192	192	directors of] an appraisal office [district] may contract with an
193	193	appraisal office in another county [district or with a taxing unit
194	194	in the district] to perform the duties of the appraisal office for
195	195	the county [district].
196	196	(c) The county assessor-collector may serve as the chief
197	197	appraiser for the appraisal office or may appoint another person to
198	198	serve as the chief appraiser.
199	199	(d) A county assessor-collector who appoints another person
200	200	to serve as the chief appraiser shall notify the comptroller and
201	201	each taxing unit that participates in the appraisal office of that
202	202	appointment.
203	203	(e) An appointed [The] chief appraiser [is the chief
204	204	administrator of the appraisal office. Except as provided by
205	205	Section 6.0501, the chief appraiser is appointed by and] serves at
206	206	the pleasure of the county assessor-collector and acts on behalf of
207	207	the county assessor-collector on all matters delegated to the
208	208	appointed chief appraiser by the county assessor-collector
209	209	[appraisal district board of directors. If a taxing unit performs
210	210	the duties of the appraisal office pursuant to a contract, the
211	211	assessor for the unit is the chief appraiser]. To be eligible to be
212	212	appointed [or serve] as a chief appraiser or to serve as an
213	213	appointed chief appraiser, a person must be certified as a
214	214	registered professional appraiser under Section 1151.160,
215	215	Occupations Code, possess an MAI professional designation from the
216	216	Appraisal Institute, or possess an Assessment Administration
217	217	Specialist (AAS), Certified Assessment Evaluator (CAE), or
218	218	Residential Evaluation Specialist (RES) professional designation
219	219	from the International Association of Assessing Officers. A person
220	220	who is eligible to be appointed [or serve] as a chief appraiser or
221	221	to serve as an appointed chief appraiser by having a professional
222	222	designation described by this subsection must become certified as a
223	223	registered professional appraiser under Section 1151.160,
224	224	Occupations Code, not later than the fifth anniversary of the date
225	225	the person is appointed or begins to serve as chief appraiser. A
226	226	chief appraiser who is not eligible to be appointed or serve as
227	227	chief appraiser may not perform an action authorized or required by
228	228	law to be performed by a chief appraiser, including the
229	229	preparation, certification, or submission of any part of the
230	230	appraisal roll. Not later than January 1 of each year, a county
231	231	assessor-collector who has appointed another person to serve as the
232	232	chief appraiser shall notify the comptroller in writing that the
233	233	chief appraiser is either eligible to be appointed or serve as the
234	234	chief appraiser or not eligible to be appointed or serve as the
235	235	chief appraiser.
236	236	(f) An appointed [(d) Except as provided by Section 6.0501,
237	237	the] chief appraiser is entitled to compensation as provided by the
238	238	budget adopted by the county assessor-collector who governs the
239	239	appraisal office for performing duties delegated to the appointed
240	240	chief appraiser by the county assessor-collector [board of
241	241	directors]. The chief appraiser's compensation may not be directly
242	242	or indirectly linked to an increase in the total market, appraised,
243	243	or taxable value of property in the county for which the appraisal
244	244	office is established [district]. The county assessor-collector
245	245	[Except as provided by Section 6.0501, the chief appraiser] may
246	246	employ and compensate professional, clerical, and other personnel
247	247	as provided by the budget[, with the exception of a general counsel
248	248	to the appraisal district].
249	249	(g) [(e)] The county assessor-collector may not appoint a
250	250	person to serve as the chief appraiser if the person is related to
251	251	the county assessor-collector within the second degree by affinity
252	252	or within the third degree by consanguinity, as determined under
253	253	Chapter 573, Government Code. [chief appraiser may delegate
254	254	authority to his employees.
255	255	[(f) The chief appraiser may not employ any individual
256	256	related to a member of the board of directors within the second
257	257	degree by affinity or within the third degree by consanguinity, as
258	258	determined under Chapter 573, Government Code.] A person commits an
259	259	offense if the person intentionally or knowingly violates this
260	260	subsection. An offense under this subsection is a misdemeanor
261	261	punishable by a fine of not less than $100 or more than $1,000.
262	262	(h) [(g)] The chief appraiser is an officer of the appraisal
263	263	office [district] for purposes of the nepotism law, Chapter 573,
264	264	Government Code. An appraisal office [district] may not employ or
265	265	contract with an individual or the spouse of an individual who is
266	266	related to the chief appraiser within the first degree by
267	267	consanguinity or affinity, as determined under Chapter 573,
268	268	Government Code.
269	269	(i) A county assessor-collector who appoints another person
270	270	to serve as the chief appraiser [(h) The board of directors of an
271	271	appraisal district by resolution] may prescribe that specified
272	272	actions of the chief appraiser relating to the finances or
273	273	administration of the appraisal office [district] are subject to
274	274	the approval of the county assessor-collector [board].
275	275	[(i) To ensure adherence with generally accepted appraisal
276	276	practices, the board of directors of an appraisal district shall
277	277	develop biennially a written plan for the periodic reappraisal of
278	278	all property within the boundaries of the district according to the
279	279	requirements of Section 25.18 and shall hold a public hearing to
280	280	consider the proposed plan. Not later than the 10th day before the
281	281	date of the hearing, the secretary of the board shall deliver to the
282	282	presiding officer of the governing body of each taxing unit
283	283	participating in the district a written notice of the date, time,
284	284	and place for the hearing. Not later than September 15 of each
285	285	even-numbered year, the board shall complete its hearings, make any
286	286	amendments, and by resolution finally approve the plan. Copies of
287	287	the approved plan shall be distributed to the presiding officer of
288	288	the governing body of each taxing unit participating in the
289	289	district and to the comptroller within 60 days of the approval
290	290	date.]
291	291	(j) The county assessor-collector who governs [board of
292	292	directors of] an appraisal office [district] may employ a general
293	293	counsel to the office [district] to serve at the will of the county
294	294	assessor-collector [board]. The general counsel shall provide
295	295	counsel directly to the county assessor-collector [board] and
296	296	perform other duties and responsibilities as determined by the
297	297	county assessor-collector [board]. The general counsel is entitled
298	298	to compensation as provided by the budget adopted by the county
299	299	assessor-collector [board].
300	300	SECTION 9. Section 6.052, Tax Code, is amended to read as
301	301	follows:
302	302	Sec. 6.052. TAXPAYER LIAISON OFFICER. (a) The county
303	303	assessor-collector who governs [board of directors for] an
304	304	appraisal office [district] created for a county with a population
305	305	of more than 120,000 shall appoint a taxpayer liaison officer who
306	306	shall serve at the pleasure of the county assessor-collector
307	307	[board]. The taxpayer liaison officer [shall administer the public
308	308	access functions required by Sections 6.04(d), (e), and (f), and]
309	309	is responsible for resolving disputes not involving matters that
310	310	may be protested under Section 41.41. In addition, the taxpayer
311	311	liaison officer is responsible for receiving, and compiling a list
312	312	of, comments and suggestions filed by the chief appraiser, a
313	313	property owner, or a property owner's agent concerning the matters
314	314	listed in Section 5.103(b) or any other matter related to the
315	315	fairness and efficiency of the appraisal review board established
316	316	for the appraisal office [district]. The taxpayer liaison officer
317	317	shall forward to the comptroller comments and suggestions filed
318	318	under this subsection in the form and manner prescribed by the
319	319	comptroller.
320	320	(b) The taxpayer liaison officer shall provide to the public
321	321	information and materials designed to assist property owners in
322	322	understanding the appraisal process, protest procedures, the
323	323	procedure for filing comments and suggestions under Subsection (a)
324	324	[of this section or a complaint under Section 6.04(g)], and other
325	325	matters. Information concerning the process for submitting
326	326	comments and suggestions to the comptroller concerning an appraisal
327	327	review board shall be provided at each protest hearing.
328	328	(c) The taxpayer liaison officer shall report to the county
329	329	assessor-collector [board at each meeting] on the status of all
330	330	comments and suggestions filed with the officer under Subsection
331	331	(a) [of this section and all complaints filed with the board under
332	332	Section 6.04(g)].
333	333	(d) The taxpayer liaison officer is entitled to
334	334	compensation as provided by the budget adopted by the county
335	335	assessor-collector [board of directors].
336	336	(e) The chief appraiser or any other person who performs
337	337	appraisal or legal services for the appraisal office [district] for
338	338	compensation is not eligible to be the taxpayer liaison officer.
339	339	(f) The taxpayer liaison officer for an appraisal office
340	340	[district described by Section 6.41(d-1)] is responsible for
341	341	providing clerical assistance to the pertinent state senators and
342	342	state representatives [local administrative district judge] in the
343	343	selection of appraisal review board members. The officer shall
344	344	deliver to the state senators and state representatives [local
345	345	administrative district judge] any applications to serve on the
346	346	board that are submitted to the officer and shall perform other
347	347	duties as requested by the state senators and state representatives
348	348	[local administrative district judge]. The officer may not
349	349	influence the process for selecting appraisal review board members.
350	350	SECTION 10. Section 6.054, Tax Code, is amended to read as
351	351	follows:
352	352	Sec. 6.054. RESTRICTION ON EMPLOYMENT BY APPRAISAL OFFICE
353	353	[DISTRICT]. An individual may not be employed by an appraisal
354	354	office [district] if the individual is:
355	355	(1) an officer of a taxing unit that participates in
356	356	the appraisal office [district]; or
357	357	(2) an employee of a taxing unit that participates in
358	358	the appraisal office [district].
359	359	SECTION 11. The heading to Section 6.06, Tax Code, is
360	360	amended to read as follows:
361	361	Sec. 6.06. APPRAISAL OFFICE [DISTRICT] BUDGET AND
362	362	FINANCING.
363	363	SECTION 12. Sections 6.06(a), (b), (c), (d), (f), (g), (h),
364	364	(i), (j), and (k), Tax Code, are amended to read as follows:
365	365	(a) Each year the county assessor-collector who governs an
366	366	appraisal office, with the assistance of the chief appraiser, shall
367	367	prepare a proposed budget for the operations of the office
368	368	[district] for the following tax year and shall submit copies to
369	369	each taxing unit participating in the office [district and to the
370	370	district board of directors] before June 15. The budget must [He
371	371	shall] include [in the budget] a list showing each proposed
372	372	position, the proposed salary for the position, all benefits
373	373	proposed for the position, each proposed capital expenditure, and
374	374	an estimate of the amount of the budget that will be allocated to
375	375	each taxing unit. Each taxing unit [entitled to vote on the
376	376	appointment of board members] shall maintain a copy of the proposed
377	377	budget for public inspection at its principal administrative
378	378	office.
379	379	(b) The county assessor-collector [board of directors]
380	380	shall hold a public hearing to consider the budget. The chief
381	381	appraiser [secretary of the board] shall deliver to the presiding
382	382	officer of the governing body of each taxing unit participating in
383	383	the appraisal office [district] not later than the 10th day before
384	384	the date of the hearing a written notice of the date, time, and
385	385	place fixed for the hearing. The county assessor-collector [board]
386	386	shall complete the [its] hearings, make any amendments to the
387	387	proposed budget [it desires], and finally approve a budget before
388	388	September 15. If the governing bodies of a majority of the taxing
389	389	units participating in the appraisal office [entitled to vote on
390	390	the appointment of board members] adopt resolutions disapproving a
391	391	budget and file them with the county assessor-collector [secretary
392	392	of the board] within 30 days after its adoption, the budget does not
393	393	take effect, and the county assessor-collector [board] shall adopt
394	394	a new budget within 30 days of the disapproval.
395	395	(c) The county assessor-collector [board] may amend the
396	396	approved budget at any time[,] but [the secretary of the board] must
397	397	deliver a written copy of a proposed amendment to the presiding
398	398	officer of the governing body of each taxing unit participating in
399	399	the appraisal office [district] not later than the 30th day before
400	400	the date the county assessor-collector [board] acts on it.
401	401	(d) Each taxing unit participating in the appraisal office
402	402	[district] is allocated a portion of the amount of the budget equal
403	403	to the proportion that the total dollar amount of property taxes
404	404	imposed in the county for which the office is established
405	405	[district] by the taxing unit for the tax year in which the budget
406	406	proposal is prepared bears to the sum of the total dollar amount of
407	407	property taxes imposed in the county [district] by each
408	408	participating taxing unit for that year. If a taxing unit
409	409	participates in two or more appraisal offices [districts], only the
410	410	taxes imposed in the appropriate county [a district] are used to
411	411	calculate the taxing unit's cost allocations in that office
412	412	[district]. If the number of real property parcels in a taxing unit
413	413	is less than 5 percent of the total number of real property parcels
414	414	in the county [district] and the taxing unit imposes in excess of 25
415	415	percent of the total amount of the property taxes imposed in the
416	416	county [district] by all of the participating taxing units for a
417	417	year, the taxing unit's allocation may not exceed a percentage of
418	418	the appraisal office's [district's] budget equal to three times the
419	419	taxing unit's percentage of the total number of real property
420	420	parcels appraised by the office [district].
421	421	(f) Payments shall be made to a depository designated by the
422	422	county assessor-collector [district board of directors]. The
423	423	appraisal office's [district's] funds may be disbursed only by a
424	424	written check, draft, or order signed by the county
425	425	assessor-collector [chairman and secretary of the board] or, if
426	426	authorized by [resolution of] the county assessor-collector
427	427	[board], by the chief appraiser.
428	428	(g) If a taxing unit decides not to impose taxes for any tax
429	429	year, the taxing unit is not liable for any of the costs of
430	430	operating the appraisal office [district] in that year, and those
431	431	costs are allocated among the other taxing units as if that taxing
432	432	unit had not imposed taxes in the year used to calculate
433	433	allocations. However, if that taxing unit has made any payments, it
434	434	is not entitled to a refund.
435	435	(h) If a newly formed taxing unit or a taxing unit that did
436	436	not impose taxes in the preceding year imposes taxes in any tax
437	437	year, that taxing unit is allocated a portion of the amount budgeted
438	438	to operate the appraisal office [district] as if it had imposed
439	439	taxes in the preceding year, except that the amount of taxes the
440	440	taxing unit imposes in the current year is used to calculate its
441	441	allocation. Before the amount of taxes to be imposed for the
442	442	current year is known, the allocation may be based on an estimate to
443	443	which the county assessor-collector who governs the appraisal
444	444	office [district board of directors] and the governing body of the
445	445	taxing unit agree, and the payments made after that amount is known
446	446	shall be adjusted to reflect the amount imposed. The payments of a
447	447	newly formed taxing unit that has no source of funds are postponed
448	448	until the taxing unit has received adequate tax or other revenues.
449	449	(i) The fiscal year of an appraisal office [district] is the
450	450	calendar year unless the governing bodies of three-fourths of the
451	451	taxing units that participate in the office [entitled to vote on the
452	452	appointment of board members] adopt resolutions proposing a
453	453	different fiscal year and file them with the county
454	454	assessor-collector who governs the office [secretary of the board]
455	455	not more than 12 and not less than eight months before the first day
456	456	of the fiscal year proposed by the resolutions. If the fiscal year
457	457	of an appraisal office [district] is changed under this subsection,
458	458	the county assessor-collector, with the assistance of the chief
459	459	appraiser, shall prepare a proposed budget for the fiscal year as
460	460	provided by Subsection (a) [of this section] before the 15th day of
461	461	the seventh month preceding the first day of the fiscal year
462	462	established by the change, and the county assessor-collector [board
463	463	of directors] shall adopt a budget for the fiscal year as provided
464	464	by Subsection (b) [of this section] before the 15th day of the
465	465	fourth month preceding the first day of the fiscal year established
466	466	by the change. The [Unless the appraisal district adopts a
467	467	different method of allocation under Section 6.061 of this code,
468	468	the] allocation of the budget to each taxing unit shall be
469	469	calculated as provided by Subsection (d) [of this section] using
470	470	the amount of property taxes imposed by each participating taxing
471	471	unit in the most recent tax year preceding the fiscal year
472	472	established by the change for which the necessary information is
473	473	available. Each taxing unit shall pay its allocation as provided by
474	474	Subsection (e) [of this section], except that the first payment
475	475	shall be made before the first day of the fiscal year established by
476	476	the change and subsequent payments shall be made quarterly. In the
477	477	year in which a change in the fiscal year occurs, the budget that
478	478	takes effect on January 1 of that year may be amended as necessary
479	479	as provided by Subsection (c) [of this section] in order to
480	480	accomplish the change in fiscal years.
481	481	(j) If the total amount of the payments made or due to be
482	482	made by the taxing units participating in an appraisal office
483	483	[district] exceeds the amount actually spent or obligated to be
484	484	spent during the fiscal year for which the payments were made, the
485	485	chief appraiser shall credit the excess amount against each taxing
486	486	unit's allocated payments for the following year in proportion to
487	487	the amount of each taxing unit's budget allocation for the fiscal
488	488	year for which the payments were made. If a taxing unit that paid
489	489	its allocated amount is not allocated a portion of the appraisal
490	490	office's [district's] budget for the following fiscal year, the
491	491	chief appraiser shall refund to the taxing unit its proportionate
492	492	share of the excess funds not later than the 150th day after the end
493	493	of the fiscal year for which the payments were made.
494	494	(k) For good cause shown, the county assessor-collector who
495	495	governs an appraisal office [board of directors] may waive the
496	496	penalty and interest on a delinquent payment under Subsection (e).
497	497	SECTION 13. Sections 6.062(a) and (c), Tax Code, are
498	498	amended to read as follows:
499	499	(a) Not later than the 10th day before the date of the public
500	500	hearing at which the county assessor-collector who governs an
501	501	appraisal office [board of directors] considers the appraisal
502	502	office [district] budget, the chief appraiser shall give notice of
503	503	the public hearing by publishing the notice in a newspaper having
504	504	general circulation in the county for which the appraisal office
505	505	[district] is established. The notice may not be smaller than
506	506	one-quarter page of a standard-size or tabloid-size newspaper and
507	507	may not be published in the part of the paper in which legal notices
508	508	and classified advertisements appear.
509	509	(c) The notice must state that the appraisal office
510	510	[district] is supported solely by payments from the local taxing
511	511	units served by the appraisal office [district]. The notice must
512	512	also contain the following statement: "If approved by the county
513	513	assessor-collector who governs the appraisal office [district
514	514	board of directors] at the public hearing, this proposed budget
515	515	will take effect automatically unless disapproved by the governing
516	516	bodies of the taxing units [county, school districts, cities, and
517	517	towns] served by the appraisal office [district]. A copy of the
518	518	proposed budget is available for public inspection in the office of
519	519	each of those governing bodies."
520	520	SECTION 14. Section 6.063, Tax Code, is amended to read as
521	521	follows:
522	522	Sec. 6.063. FINANCIAL AUDIT. (a) At least once each year,
523	523	the county assessor-collector who governs [board of directors of]
524	524	an appraisal office [district] shall have prepared an audit of its
525	525	affairs by an independent certified public accountant or a firm of
526	526	independent certified public accountants.
527	527	(b) The report of the audit is a public record. A copy of
528	528	the report shall be delivered to the presiding officer of the
529	529	governing body of each taxing unit that participates in the
530	530	appraisal office [eligible to vote on the appointment of district
531	531	directors], and a reasonable number of copies shall be available
532	532	for inspection at the appraisal office.
533	533	SECTION 15. The heading to Section 6.09, Tax Code, is
534	534	amended to read as follows:
535	535	Sec. 6.09. DESIGNATION OF APPRAISAL OFFICE [DISTRICT]
536	536	DEPOSITORY.
537	537	SECTION 16. Sections 6.09(a), (b), and (c), Tax Code, are
538	538	amended to read as follows:
539	539	(a) The appraisal office [district] depository must be a
540	540	banking corporation incorporated under the laws of this state or
541	541	the United States or a savings and loan association in this state
542	542	whose deposits are insured by the Federal Deposit [Savings and
543	543	Loan] Insurance Corporation.
544	544	(b) The county assessor-collector who governs the appraisal
545	545	office [district board of directors] shall designate as the office
546	546	[district] depository the financial institution or institutions
547	547	that offer the most favorable terms and conditions for the handling
548	548	of the office's [district's] funds.
549	549	(c) The county assessor-collector [board] shall solicit
550	550	bids to be designated as depository for the appraisal office
551	551	[district]. The depository when designated shall serve for a term
552	552	of two years and until its successor is designated and has
553	553	qualified. The county assessor-collector [board] and the
554	554	depository may agree to extend a depository contract for one
555	555	additional two-year period.
556	556	SECTION 17. Section 6.11, Tax Code, is amended to read as
557	557	follows:
558	558	Sec. 6.11. PURCHASING AND CONTRACTING AUTHORITY. (a) An
559	559	appraisal office [district] is subject to the same requirements and
560	560	has the same purchasing and contracting authority as a municipality
561	561	under Chapter 252, Local Government Code.
562	562	(b) For purposes of this section, all the provisions of
563	563	Chapter 252, Local Government Code, applicable to a municipality or
564	564	to purchases and contracts by a municipality apply to an appraisal
565	565	office [district] and to purchases and contracts by an appraisal
566	566	office [district] to the extent they can be made applicable, and all
567	567	references to the municipality in that chapter mean the appraisal
568	568	office [district]. For purposes of applying Section 252.061, Local
569	569	Government Code, to an appraisal office [district], any resident of
570	570	the county for which the appraisal office is established [district]
571	571	may seek an injunction under that section. Sections 252.062 and
572	572	252.063, Local Government Code, apply to an officer or employee of
573	573	an appraisal office [district] in the same manner as those sections
574	574	apply to a municipal officer or employee.
575	575	SECTION 18. Sections 6.12(a), (b), (c), and (e), Tax Code,
576	576	are amended to read as follows:
577	577	(a) The state senators and state representatives whose
578	578	districts contain any part of the territory included in the county
579	579	for which an [chief appraiser of each] appraisal office is
580	580	established [district] shall by majority vote appoint, with the
581	581	advice [and consent] of and in the manner provided by the county
582	582	assessor-collector who governs the office [board of directors], an
583	583	agricultural advisory board composed of three or more members as
584	584	determined by the county assessor-collector [board]. Each state
585	585	senator and state representative is entitled to one vote for a
586	586	candidate for each position to be filled on the board.
587	587	(b) The agricultural advisory board members must be
588	588	landowners of the county for which the appraisal office is
589	589	established [district] whose land qualifies for appraisal under
590	590	Subchapter C, D, E, or H, Chapter 23, and who have been residents of
591	591	the county [district] for at least five years.
592	592	(c) Members of the board serve for [staggered] terms of two
593	593	years. The county assessor-collector who governs the appraisal
594	594	office shall provide for staggered terms, so that the terms of as
595	595	close to one-half of the members as possible expire each year [In
596	596	making the initial appointments of members of the agricultural
597	597	advisory board the chief appraiser shall appoint for a term of one
598	598	year one-half of the members, or if the number of members is an odd
599	599	number, one fewer than a majority of the membership].
600	600	(e) An employee or officer of an appraisal office [district]
601	601	may not be appointed and may not serve as a member of the
602	602	agricultural advisory board.
603	603	SECTION 19. Section 6.13, Tax Code, is amended to read as
604	604	follows:
605	605	Sec. 6.13. APPRAISAL OFFICE [DISTRICT] RECORDS. The
606	606	preservation, microfilming, destruction, or other disposition of
607	607	the records of each appraisal office [district] is subject to the
608	608	requirements of Subtitle C, Title 6, Local Government Code, and
609	609	rules adopted under that subtitle.
610	610	SECTION 20. Sections 6.14(a) and (b), Tax Code, are amended
611	611	to read as follows:
612	612	(a) On the written request of the Texas Legislative Council,
613	613	an appraisal office [district] that maintains its appraisal records
614	614	in electronic format shall provide a copy of the information or data
615	615	maintained in the office's [district's] appraisal records to the
616	616	council without charge.
617	617	(b) The appraisal office [district] shall provide the
618	618	requested information or data to the council as soon as practicable
619	619	but not later than the 30th day after the date the request is
620	620	received by the office [district].
621	621	SECTION 21. Sections 6.16(a) and (c), Tax Code, are amended
622	622	to read as follows:
623	623	(a) The chief appraiser of an appraisal office [district]
624	624	may maintain a list of the following individuals who have
625	625	designated themselves as an individual who will provide free
626	626	assistance to an owner of residential property that is occupied by
627	627	the owner as the owner's principal residence:
628	628	(1) a real estate broker or sales agent licensed under
629	629	Chapter 1101, Occupations Code;
630	630	(2) a real estate appraiser licensed or certified
631	631	under Chapter 1103, Occupations Code; or
632	632	(3) a property tax consultant registered under Chapter
633	633	1152, Occupations Code.
634	634	(c) A list must:
635	635	(1) be organized by county;
636	636	(2) be available on the appraisal office's
637	637	[district's] Internet website, if the appraisal office [district]
638	638	maintains a website; and
639	639	(3) provide the name, contact information, and job
640	640	title of each individual who will provide free assistance.
641	641	SECTION 22. Sections 6.24(a) and (b), Tax Code, are amended
642	642	to read as follows:
643	643	(a) The governing body of a taxing unit other than a county
644	644	may contract as provided by Chapter 791, Government Code, [the
645	645	Interlocal Cooperation Act] with the governing body of another
646	646	taxing unit or with the county assessor-collector who governs
647	647	[board of directors of] an appraisal office [district] for the
648	648	other taxing unit or the office [district] to perform duties
649	649	relating to the assessment or collection of taxes.
650	650	(b) The commissioners court of a county with the approval of
651	651	the county assessor-collector may contract as provided by Chapter
652	652	791, Government Code, [the Interlocal Cooperation Act] with the
653	653	governing body of another taxing unit in the county [or with the
654	654	board of directors of the appraisal district] for the other taxing
655	655	unit [or the district] to perform duties relating to the assessment
656	656	or collection of taxes for the county. The commissioners court may
657	657	contract as provided by Chapter 791, Government Code, with the
658	658	county assessor-collector for the appraisal office established for
659	659	the county to perform duties relating to the assessment or
660	660	collection of taxes for the county. If a county contracts to have
661	661	its taxes assessed and collected by another taxing unit or by the
662	662	appraisal office [district, except as provided by Subsection (c)],
663	663	the contract shall require the other taxing unit or the office
664	664	[district] to assess and collect all taxes the county is required to
665	665	assess and collect.
666	666	SECTION 23. Sections 6.26(a), (b), (c), (e), (f), and (j),
667	667	Tax Code, are amended to read as follows:
668	668	(a) The qualified voters residing in the county for which an
669	669	appraisal office is established [district] by petition submitted to
670	670	the county clerk of the county [principally served by the appraisal
671	671	district] may require that an election be held to determine whether
672	672	or not to require the appraisal office [district], the county
673	673	assessor-collector, or a specified taxing unit within the county
674	674	[appraisal district] to assess, collect, or assess and collect
675	675	property taxes on property appraised by the office [district] for
676	676	all taxing units.
677	677	(b) The qualified voters of a taxing unit that assesses,
678	678	collects, or assesses and collects its own property taxes by
679	679	petition submitted to the governing body of the taxing unit may
680	680	require that an election be held to determine whether or not to
681	681	require the appraisal office [district], the county
682	682	assessor-collector, or another taxing unit that is assessing and
683	683	collecting property taxes to assess, collect, or assess and collect
684	684	the taxing unit's property taxes.
685	685	(c) A petition is valid if:
686	686	(1) it states that it is intended to require an
687	687	election in the county for which the appraisal office is
688	688	established [district] or in the taxing unit on the question of
689	689	consolidation of assessing or collecting functions or both;
690	690	(2) it states the functions to be consolidated and
691	691	identifies the entity or office that will be required to perform the
692	692	functions; and
693	693	(3) it is signed by a number of qualified voters equal
694	694	to at least 10 percent of the number of qualified voters, according
695	695	to the most recent official list of qualified voters, residing in
696	696	the county for which the appraisal office is established
697	697	[district], if the petition is authorized by Subsection (a) [of
698	698	this section], or in the taxing unit, if the petition is authorized
699	699	by Subsection (b) [of this section], or by 10,000 qualified voters,
700	700	whichever number is less.
701	701	(e) If the commissioners court or the governing body finds
702	702	that the petition is valid, it shall order that an election be held
703	703	in the county for which the appraisal office is established
704	704	[district] or in the taxing unit on the next uniform election date
705	705	prescribed by the [Texas] Election Code that is more than 60 days
706	706	after the last day on which it could have acted to approve or
707	707	disapprove the petition. At the election, the ballots shall be
708	708	prepared to permit voting for or against the proposition:
709	709	"Requiring the (name of entity or office) to (assess, collect, or
710	710	assess and collect, as applicable) property taxes for (all taxing
711	711	units in [the appraisal district for] ________ County [county] or
712	712	name of taxing unit or taxing units, as applicable)."
713	713	(f) If a majority of the qualified voters voting on the
714	714	question in the election favor the proposition, the entity or
715	715	office named by the ballot shall perform the functions named by the
716	716	ballot beginning with the next time property taxes are assessed or
717	717	collected, as applicable, that is more than 90 days after the date
718	718	of the election. If the governing bodies, [(]and the county
719	719	assessor-collector who governs the appraisal office [district
720	720	board of directors] when the office [district] is involved,[)]
721	721	agree, a function may be consolidated when performance of the
722	722	function begins in less than 90 days after the date of the election.
723	723	(j) An appraisal office [district] may not be required by an
724	724	election to assess, collect, or assess and collect taxes on
725	725	property outside the [district's] boundaries of the county for
726	726	which the office is established. A taxing unit may not be required
727	727	by an election to assess, collect, or assess and collect taxes on
728	728	property outside the boundaries of the county for which the
729	729	appraisal office [district] that appraises property for the taxing
730	730	unit is established.
731	731	SECTION 24. Section 6.29(b), Tax Code, is amended to read as
732	732	follows:
733	733	(b) A taxing unit whose taxes are collected by the collector
734	734	for another taxing unit, by an officer or employee of another taxing
735	735	unit or of an appraisal office [district], or by any other person
736	736	other than the taxing unit's own collector may require that
737	737	collector, officer, employee, or other person to give bond
738	738	conditioned on the faithful performance of that person's [his]
739	739	duties. To be effective, the bond must be made payable to and must
740	740	be approved by and paid for by the governing body of the taxing unit
741	741	requiring bond in an amount determined by the governing body. The
742	742	governing body may prescribe additional requirements for the bond.
743	743	SECTION 25. Section 6.41, Tax Code, is amended to read as
744	744	follows:
745	745	Sec. 6.41. APPRAISAL REVIEW BOARD. (a) The appraisal
746	746	review board is established for each appraisal office [district].
747	747	(b) Except as provided by Subsection (b-1) or (b-2), an
748	748	appraisal review board consists of three members.
749	749	(b-1) The county assessor-collector who governs an
750	750	appraisal office [An appraisal district board of directors by
751	751	resolution of a majority of the board's members] may increase the
752	752	size of the office's [district's] appraisal review board to the
753	753	number of members the county assessor-collector [board of
754	754	directors] considers appropriate.
755	755	(b-2) The county assessor-collector who governs an
756	756	appraisal office [An appraisal district board of directors for a
757	757	district] established in a county with a population of one million
758	758	or more [by resolution of a majority of the board's members] shall
759	759	increase the size of the office's [district's] appraisal review
760	760	board to the number of members the county assessor-collector [board
761	761	of directors] considers appropriate to manage the duties of the
762	762	appraisal review board, including the duties of each special panel
763	763	established under Section 6.425.
764	764	(c) To be eligible to serve on the board, an individual must
765	765	be a resident of the county for which the appraisal office is
766	766	established [district] and must have resided in the county
767	767	[district] for at least two years.
768	768	(d) Members [Except as provided by Subsection (d-1),
769	769	members] of the board are appointed by majority vote of the state
770	770	senators and state representatives whose districts contain any part
771	771	of the territory included in the county for which [resolution of a
772	772	majority of] the appraisal office is established in the manner
773	773	provided by the county assessor-collector who governs the office
774	774	[district board of directors]. Each state senator and state
775	775	representative is entitled to one vote for a candidate for each
776	776	position to be filled on the board. A vacancy on the board is filled
777	777	in the same manner for the unexpired portion of the term.
778	778	(e) [(d-1) In a county with a population of 120,000 or more
779	779	the members of the board are appointed by the local administrative
780	780	district judge under Subchapter D, Chapter 74, Government Code, in
781	781	the county in which the appraisal district is established.] All
782	782	applications submitted to the appraisal office [district] or to the
783	783	[appraisal review] board from persons seeking appointment as a
784	784	member of the [appraisal review] board shall be delivered to the
785	785	pertinent state senators and state representatives [local
786	786	administrative district judge]. The appraisal office [district]
787	787	may provide the state senators and state representatives [local
788	788	administrative district judge] with information regarding whether
789	789	an applicant for appointment to or a member of the board owes any
790	790	delinquent ad valorem taxes to a taxing unit participating in the
791	791	appraisal office [district].
792	792	(f) [(d-2) A local administrative district judge making
793	793	appointments under Subsection (d-1) may make such appointments
794	794	directly or may, by written order, appoint from three to five
795	795	persons to perform the duties of appraisal review board
796	796	commissioner. If the local administrative district judge chooses
797	797	to appoint appraisal review board commissioners, each commissioner
798	798	shall possess the same qualifications as those required of an
799	799	appraisal review board member.
800	800	[(d-3)] The appraisal office [local administrative judge
801	801	making appointments under Subsection (d-1)] shall [cause the proper
802	802	officer to] notify the persons appointed to the board of their [such
803	803	appointees of such] appointment[,] and when and where they are to
804	804	appear.
805	805	(g) [(d-4) If appraisal review board commissioners are
806	806	appointed under Subsection (d-2), they shall meet as directed by
807	807	the local administrative district judge in order to complete their
808	808	duties.
809	809	[(d-5)] The appraisal office [district of the county] shall
810	810	provide to the pertinent state senators and state representatives
811	811	[local administrative district judge, or to the appraisal review
812	812	board commissioners, as the case may be,] the number of [appraisal
813	813	review] board positions that require appointment and shall provide
814	814	whatever reasonable assistance is requested by the state senators
815	815	and state representatives to make the appointments [local
816	816	administrative district judge or the commissioners].
817	817	(h) [(d-6) An appraisal review board commissioner is not
818	818	disqualified from serving as a member of the appraisal review
819	819	board.
820	820	[(d-7) If appraisal review board commissioners are
821	821	appointed under this section, the commissioners shall return a list
822	822	of proposed appraisal review board members to the local
823	823	administrative district judge at a time directed by such local
824	824	administrative judge, but in no event later than January 1 of each
825	825	year. Such list shall be composed of no less than five (5) names in
826	826	excess of the number of appraisal review board positions to be
827	827	filled by the local administrative district judge. The local
828	828	administrative judge may accept the proposed names, or reject the
829	829	proposed list and return the proposed list to the commissioners
830	830	upon which the commissioners shall propose a revised list until the
831	831	local administrative judge accepts the list.
832	832	[(d-8) Any appraisal review board commissioners appointed
833	833	pursuant to this section shall hold office for a term of one year
834	834	beginning January 1. A commissioner may be appointed to successive
835	835	terms at the discretion of the local administrative district judge.
836	836	[(d-9)] In selecting individuals who are to serve as members
837	837	of the appraisal review board for an appraisal office [district]
838	838	described by Subsection (b-2), the pertinent state senators and
839	839	state representatives [local administrative district judge] shall
840	840	select an adequate number of qualified individuals to permit the
841	841	chairman of the appraisal review board to fill the positions on each
842	842	special panel established under Section 6.425.
843	843	(i) [(d-10) Upon selection of the individuals who are to
844	844	serve as members of the appraisal review board, the local
845	845	administrative district judge shall enter an appropriate order
846	846	designating such members and setting each member's respective term
847	847	of office, as provided elsewhere in this section.
848	848	[(e)] Members of the board hold office for terms of two
849	849	years beginning January 1. The county assessor-collector who
850	850	governs the appraisal office [district board of directors by
851	851	resolution] shall provide for staggered terms, so that the terms of
852	852	as close to one-half of the members as possible expire each year.
853	853	[In making the initial or subsequent appointments, the board of
854	854	directors or the local administrative district judge or the judge's
855	855	designee shall designate those members who serve terms of one year
856	856	as needed to comply with this subsection.]
857	857	(j) [(f)] A member of the board may be removed from the
858	858	board by a majority vote of the state senators and state
859	859	representatives [appraisal district board of directors, or by the
860	860	local administrative district judge or the judge's designee, as
861	861	applicable,] that appointed the member. Grounds for removal are:
862	862	(1) a violation of Section 6.412, 6.413, 41.66(f), or
863	863	41.69;
864	864	(2) good cause relating to the attendance of members
865	865	at called meetings of the board as established by written policy
866	866	adopted by the county assessor-collector who governs [a majority
867	867	of] the appraisal office [district board of directors]; or
868	868	(3) evidence of repeated bias or misconduct.
869	869	(k) [(g)] Subsection (a) does not preclude the county
870	870	assessor-collectors who govern the appraisal offices established
871	871	for [boards of directors of] two or more adjoining counties
872	872	[appraisal districts] from providing for the operation of a
873	873	consolidated appraisal review board by interlocal contract.
874	874	(l) [(h)] When [adjoining] appraisal offices established
875	875	for two or more adjoining counties [districts] by interlocal
876	876	contract have provided for the operation of a consolidated
877	877	appraisal review board:
878	878	(1) a reference in this or another section of this code
879	879	to the appraisal office [district] means the [adjoining] appraisal
880	880	offices established for the adjoining counties [districts];
881	881	(2) a reference in this or another section of this code
882	882	to the county assessor-collector who governs the appraisal office
883	883	[district board of directors] means the county assessor-collectors
884	884	who govern [boards of directors of] the [adjoining] appraisal
885	885	offices established for the adjoining counties [districts];
886	886	(3) a provision of this code that applies to an
887	887	appraisal review board also applies to the consolidated appraisal
888	888	review board; and
889	889	(4) a reference in this code to the appraisal review
890	890	board shall be construed to also refer to the consolidated
891	891	appraisal review board.
892	892	(m) [(i) This subsection applies only to an appraisal
893	893	district described by Subsection (d-1).] A chief appraiser or
894	894	another employee or agent of the appraisal office [district], a
895	895	member of the appraisal review board for the appraisal office
896	896	[district], the county assessor collector who governs [a member of
897	897	the board of directors of] the appraisal office [district], a
898	898	property tax consultant, or an agent of a property owner commits an
899	899	offense if the person communicates with a state senator or state
900	900	representative whose district contains any part of the territory
901	901	included in the county for which the appraisal office is
902	902	established [the local administrative district judge] regarding
903	903	the appointment of appraisal review board members. This subsection
904	904	does not apply to:
905	905	(1) a communication between a member of the appraisal
906	906	review board and a state senator or state representative [the local
907	907	administrative district judge] regarding the member's
908	908	reappointment to the board;
909	909	(2) a communication between the taxpayer liaison
910	910	officer for the appraisal office [district] and a state senator or
911	911	state representative [the local administrative district judge] in
912	912	the course of the performance of the officer's clerical duties so
913	913	long as the officer does not offer an opinion or comment regarding
914	914	the appointment of appraisal review board members;
915	915	(3) a communication between a chief appraiser or
916	916	another employee or agent of the appraisal office [district], a
917	917	member of the appraisal review board for the appraisal office
918	918	[district], or the county assessor-collector who governs [a member
919	919	of the board of directors of] the appraisal office [district] and a
920	920	state senator or state representative [the local administrative
921	921	district judge] regarding information relating to or described by
922	922	Subsection (e), (g), or (j) [(d-1), (d-5), or (f)] of this section
923	923	or Section 411.1296, Government Code;
924	924	(4) a communication between a property tax consultant
925	925	or a property owner or an agent of the property owner and the
926	926	taxpayer liaison officer for the appraisal office [district]
927	927	regarding information relating to or described by Subsection (j)
928	928	[(f). The taxpayer liaison officer for the appraisal district
929	929	shall report the contents of the communication relating to or
930	930	described by Subsection (f) to the local administrative district
931	931	judge]; or
932	932	(5) a communication between a property tax consultant
933	933	or a property owner or an agent of the property owner and a state
934	934	senator or state representative [the local administrative district
935	935	judge] regarding information relating to or described by Subsection
936	936	(j) [(f)].
937	937	(n) The taxpayer liaison officer for the appraisal office
938	938	shall report the contents of the communication described by
939	939	Subsection (m)(4) to the pertinent state senators and state
940	940	representatives.
941	941	(o) [(j)] A chief appraiser or another employee or agent of
942	942	an appraisal office [district] commits an offense if the person
943	943	communicates with a member of the appraisal review board for the
944	944	appraisal office [district], the county assessor-collector who
945	945	governs [a member of the board of directors of] the appraisal office
946	946	[district], or a state senator or state representative whose
947	947	district contains any part of the territory included in the county
948	948	for which [, if] the appraisal office is established [district is an
949	949	appraisal district described by Subsection (d-1), the local
950	950	administrative district judge] regarding a ranking, scoring, or
951	951	reporting of the percentage by which the appraisal review board or a
952	952	panel of the board reduces the appraised value of property.
953	953	(p) [(k)] An offense under Subsection (m) or (o) [(i) or
954	954	(j)] is a Class A misdemeanor.
955	955	SECTION 26. Sections 6.411(a), (b), and (c-1), Tax Code,
956	956	are amended to read as follows:
957	957	(a) A member of an appraisal review board commits an offense
958	958	if the member communicates with the chief appraiser or another
959	959	employee or the county assessor-collector who governs [a member of
960	960	the board of directors of] the appraisal office [district] for
961	961	which the appraisal review board is established in violation of
962	962	Section 41.66(f).
963	963	(b) A chief appraiser or another employee of an appraisal
964	964	office [district], the county assessor-collector who governs [a
965	965	member of a board of directors of] an appraisal office [district],
966	966	or a property tax consultant or attorney representing a party to a
967	967	proceeding before the appraisal review board commits an offense if
968	968	the person communicates with a member of the appraisal review board
969	969	established for the appraisal office [district] with the intent to
970	970	influence a decision by the member in the member's capacity as a
971	971	member of the appraisal review board.
972	972	(c-1) This section does not apply to communications with a
973	973	member of an appraisal review board by the chief appraiser or
974	974	another employee or the county assessor-collector who governs [a
975	975	member of the board of directors of] an appraisal office [district]
976	976	or a property tax consultant or attorney representing a party to a
977	977	proceeding before the appraisal review board:
978	978	(1) during a hearing on a protest or other proceeding
979	979	before the appraisal review board;
980	980	(2) that constitute social conversation;
981	981	(3) that are specifically limited to and involve
982	982	administrative, clerical, or logistical matters related to the
983	983	scheduling and operation of hearings, the processing of documents,
984	984	the issuance of orders, notices, and subpoenas, and the operation,
985	985	appointment, composition, or attendance at training of the
986	986	appraisal review board; or
987	987	(4) that are necessary and appropriate to enable the
988	988	county assessor-collector who governs [board of directors of] the
989	989	appraisal office or the pertinent state senators and state
990	990	representatives [district] to determine whether to appoint,
991	991	reappoint, or remove a person as a member or the chairman or
992	992	secretary of the appraisal review board.
993	993	SECTION 27. Section 6.412, Tax Code, is amended to read as
994	994	follows:
995	995	Sec. 6.412. RESTRICTIONS ON ELIGIBILITY OF BOARD MEMBERS.
996	996	(a) An individual is ineligible to serve on an appraisal review
997	997	board if the individual:
998	998	(1) is related within the second degree by
999	999	consanguinity or affinity, as determined under Chapter 573,
1000	1000	Government Code, to an individual who is engaged in the business of
1001	1001	appraising property for compensation for use in proceedings under
1002	1002	this title or of representing property owners for compensation in
1003	1003	proceedings under this title in the appraisal office [district] for
1004	1004	which the appraisal review board is established;
1005	1005	(2) owns property on which delinquent taxes have been
1006	1006	owed to a taxing unit for more than 60 days after the date the
1007	1007	individual knew or should have known of the delinquency unless:
1008	1008	(A) the delinquent taxes and any penalties and
1009	1009	interest are being paid under an installment payment agreement
1010	1010	under Section 33.02; or
1011	1011	(B) a suit to collect the delinquent taxes is
1012	1012	deferred or abated under Section 33.06 or 33.065; or
1013	1013	(3) is related within the third degree by
1014	1014	consanguinity or within the second degree by affinity, as
1015	1015	determined under Chapter 573, Government Code, to [a member of]:
1016	1016	(A) the county assessor-collector who governs
1017	1017	the appraisal office [district's board of directors]; or
1018	1018	(B) a member of the appraisal review board.
1019	1019	(b) A member of an appraisal review board commits an offense
1020	1020	if the board member continues to hold office knowing that an
1021	1021	individual related within the second degree by consanguinity or
1022	1022	affinity, as determined under Chapter 573, Government Code, to the
1023	1023	board member is engaged in the business of appraising property for
1024	1024	compensation for use in proceedings under this title or of
1025	1025	representing property owners for compensation in proceedings under
1026	1026	this title in the appraisal office [district] for which the
1027	1027	appraisal review board is established. An offense under this
1028	1028	subsection is a Class B misdemeanor.
1029	1029	(c) A person is ineligible to serve on the appraisal review
1030	1030	board if the person is the county assessor-collector who governs
1031	1031	the appraisal office [a member of the board of directors], an
1032	1032	officer[,] or employee of the appraisal office [district], an
1033	1033	employee of the comptroller, or a member of the governing body,
1034	1034	officer, or employee of a taxing unit.
1035	1035	(d) A person is ineligible to serve on the appraisal review
1036	1036	board of an appraisal office [district established for a county
1037	1037	described by Section 6.41(d-1)] if the person:
1038	1038	(1) is a former county assessor-collector who governed
1039	1039	the appraisal office or a [member of the board of directors,] former
1040	1040	officer[,] or former employee of the appraisal office [district];
1041	1041	(2) served as a member of the governing body or officer
1042	1042	of a taxing unit for which the appraisal office [district]
1043	1043	appraises property, until the fourth anniversary of the date the
1044	1044	person ceased to be a member or officer;
1045	1045	(3) appeared before the appraisal review board for
1046	1046	compensation during the two-year period preceding the date the
1047	1047	person is appointed; or
1048	1048	(4) served for all or part of three previous terms as a
1049	1049	board member or auxiliary board member on the appraisal review
1050	1050	board.
1051	1051	SECTION 28. Sections 6.413(a), (b), and (c), Tax Code, are
1052	1052	amended to read as follows:
1053	1053	(a) An individual is not eligible to be appointed to or to
1054	1054	serve on the appraisal review board established for an appraisal
1055	1055	office [district] if the individual or a business entity in which
1056	1056	the individual has a substantial interest is a party to a contract
1057	1057	with the appraisal office [district] or with a taxing unit that
1058	1058	participates in the appraisal office [district].
1059	1059	(b) An appraisal office [district] may not enter into a
1060	1060	contract with a member of the appraisal review board established
1061	1061	for the appraisal office [district] or with a business entity in
1062	1062	which a member of the appraisal review board has a substantial
1063	1063	interest.
1064	1064	(c) A taxing unit may not enter into a contract with a member
1065	1065	of the appraisal review board established for an appraisal office
1066	1066	[district] in which the taxing unit participates or with a business
1067	1067	entity in which a member of the appraisal review board has a
1068	1068	substantial interest.
1069	1069	SECTION 29. Sections 6.414(a) and (f), Tax Code, are
1070	1070	amended to read as follows:
1071	1071	(a) The county assessor-collector who governs [board of
1072	1072	directors of] an appraisal office [district by resolution of a
1073	1073	majority of the members] may provide for a number of auxiliary
1074	1074	appraisal review board members that the county assessor-collector
1075	1075	[board] considers appropriate to hear taxpayer protests before the
1076	1076	appraisal review board and to assist the board in performing its
1077	1077	duties.
1078	1078	(f) An auxiliary board member is entitled to compensation as
1079	1079	provided by the appraisal office [district] budget and is not
1080	1080	entitled to a per diem or reimbursement of expenses under Section
1081	1081	6.42(c).
1082	1082	SECTION 30. Sections 6.42(a) and (c), Tax Code, are amended
1083	1083	to read as follows:
1084	1084	(a) A majority of the appraisal review board constitutes a
1085	1085	quorum. The county assessor-collector who governs the appraisal
1086	1086	office [local administrative district judge under Subchapter D,
1087	1087	Chapter 74, Government Code, in the county in which the appraisal
1088	1088	district is established] shall select a chairman and a secretary
1089	1089	from among the members of the appraisal review board. The county
1090	1090	assessor-collector who governs the appraisal office [judge] is
1091	1091	encouraged to select as chairman a member of the appraisal review
1092	1092	board, if any, who has a background in law and property appraisal.
1093	1093	(c) Members of the board are entitled to per diem set by the
1094	1094	appraisal office [district] budget for each day the board meets and
1095	1095	to reimbursement for actual and necessary expenses incurred in the
1096	1096	performance of board functions as provided by the office [district]
1097	1097	budget.
1098	1098	SECTION 31. The heading to Section 6.425, Tax Code, is
1099	1099	amended to read as follows:
1100	1100	Sec. 6.425. SPECIAL APPRAISAL REVIEW BOARD PANELS IN
1101	1101	CERTAIN OFFICES [DISTRICTS].
1102	1102	SECTION 32. Sections 6.425(a), (b), and (e), Tax Code, are
1103	1103	amended to read as follows:
1104	1104	(a) This section applies only to the appraisal review board
1105	1105	for an appraisal office [district] described by Section 6.41(b-2).
1106	1106	(b) The appraisal review board shall establish special
1107	1107	panels to conduct protest hearings under Chapter 41 relating to
1108	1108	property that:
1109	1109	(1) has an appraised value as determined by the
1110	1110	appraisal office [district] equal to or greater than the minimum
1111	1111	eligibility amount determined as provided by Subsection (g); and
1112	1112	(2) is included in one of the following
1113	1113	classifications:
1114	1114	(A) commercial real [and personal] property;
1115	1115	(B) real [and personal] property of utilities;
1116	1116	(C) industrial and manufacturing real [and
1117	1117	personal] property; and
1118	1118	(D) multifamily residential real property.
1119	1119	(e) Notwithstanding Subsection (d), the chairman of the
1120	1120	appraisal review board may appoint to a special panel described by
1121	1121	this section a member of the appraisal review board who does not
1122	1122	meet the qualifications prescribed by that subsection if:
1123	1123	(1) the number of persons appointed to the board by the
1124	1124	pertinent state senators and state representatives [local
1125	1125	administrative district judge] who meet those qualifications is not
1126	1126	sufficient to fill the positions on each special panel; and
1127	1127	(2) the board member being appointed to the panel
1128	1128	holds a bachelor's degree in any field.
1129	1129	SECTION 33. Sections 6.43(a), (b), (c), and (e), Tax Code,
1130	1130	are amended to read as follows:
1131	1131	(a) The appraisal review board may employ legal counsel as
1132	1132	provided by the appraisal office [district] budget or use the
1133	1133	services of the county attorney.
1134	1134	(b) Except as provided by Subsection (c), an attorney may
1135	1135	not serve as legal counsel for the appraisal review board if the
1136	1136	attorney or a member of the attorney's law firm has during the year
1137	1137	before the date of the appraisal review board's hiring of the
1138	1138	attorney represented a property owner who owns property in the
1139	1139	county for which the appraisal office is established [district], a
1140	1140	taxing unit that participates in the appraisal office [district],
1141	1141	or the appraisal office [district] in a matter addressed by Section
1142	1142	1.111 or 25.25 of this code, Subtitle F of this title, or Subchapter
1143	1143	Z, Chapter 2003, Government Code.
1144	1144	(c) The county attorney for the county in which the
1145	1145	appraisal office [district] is established may provide legal
1146	1146	services to the appraisal review board notwithstanding that the
1147	1147	county attorney or an assistant to the county attorney represents
1148	1148	or has represented the appraisal office [district] or a taxing unit
1149	1149	that participates in the appraisal office [district] in any matter.
1150	1150	(e) An appraisal office [district] may specify in its budget
1151	1151	whether the appraisal review board may employ legal counsel or must
1152	1152	use the services of the county attorney. If the budget authorizes
1153	1153	the board to employ legal counsel, the budget must provide for
1154	1154	reasonable compensation to be paid to the attorney serving as legal
1155	1155	counsel. An appraisal office [district] may not require the board
1156	1156	to employ a specific attorney as legal counsel.
1157	1157	SECTION 34. Section 11.01, Tax Code, is amended to read as
1158	1158	follows:
1159	1159	Sec. 11.01. REAL [AND TANGIBLE PERSONAL] PROPERTY. (a) All
1160	1160	real [and tangible personal] property that this state has
1161	1161	jurisdiction to tax is taxable unless exempt by law.
1162	1162	(b) This state has jurisdiction to tax real property if
1163	1163	located in this state.
1164	1164	(c) For a tax year that begins after December 31, 2023,
1165	1165	tangible personal property is not taxable.
1166	1166	(d) On and after January 1, 2024, a provision of this code or
1167	1167	another law that would otherwise apply to the taxation of tangible
1168	1168	personal property for a tax year that begins after December 31,
1169	1169	2023, has no effect for that tax year.
1170	1170	(e) Subsections (c) and (d) do not apply to personal
1171	1171	property taxable under Section 1(l), Article VIII, Texas
1172	1172	Constitution. [This state has jurisdiction to tax tangible
1173	1173	personal property if the property is:
1174	1174	[(1) located in this state for longer than a temporary
1175	1175	period;
1176	1176	[(2) temporarily located outside this state and the
1177	1177	owner resides in this state; or
1178	1178	[(3) used continually, whether regularly or
1179	1179	irregularly, in this state.
1180	1180	[(d) Tangible personal property that is operated or located
1181	1181	exclusively outside this state during the year preceding the tax
1182	1182	year and on January 1 of the tax year is not taxable in this state.
1183	1183	[(e) For purposes of Subsection (c)(3), property is
1184	1184	considered to be used continually, whether regularly or
1185	1185	irregularly, in this state if the property is used in this state
1186	1186	three or more times on regular routes or for three or more completed
1187	1187	assignments occurring in close succession throughout the year. For
1188	1188	purposes of this subsection, a series of events are considered to
1189	1189	occur in close succession throughout the year if they occur in
1190	1190	sequence within a short period at intervals from the beginning to
1191	1191	the end of the year.]
1192	1192	SECTION 35. Section 11.18(a), Tax Code, is amended to read
1193	1193	as follows:
1194	1194	(a) An organization that qualifies as a charitable
1195	1195	organization as provided by this section is entitled to an
1196	1196	exemption from taxation of:
1197	1197	(1) the buildings [and tangible personal property]
1198	1198	that:
1199	1199	(A) are owned by the charitable organization; and
1200	1200	(B) except as permitted by Subsection (b), are
1201	1201	used exclusively by qualified charitable organizations; and
1202	1202	(2) the real property owned by the charitable
1203	1203	organization consisting of:
1204	1204	(A) an incomplete improvement that:
1205	1205	(i) is under active construction or other
1206	1206	physical preparation; and
1207	1207	(ii) is designed and intended to be used
1208	1208	exclusively by qualified charitable organizations; and
1209	1209	(B) the land on which the incomplete improvement
1210	1210	is located that will be reasonably necessary for the use of the
1211	1211	improvement by qualified charitable organizations.
1212	1212	SECTION 36. Section 11.181(c), Tax Code, is amended to read
1213	1213	as follows:
1214	1214	(c) An organization entitled to an exemption under
1215	1215	Subsection (a) is also entitled to an exemption from taxation of any
1216	1216	building [or tangible personal property] the organization owns and
1217	1217	uses in the administration of its acquisition, building, repair, or
1218	1218	sale of property. To qualify for an exemption under this
1219	1219	subsection, property must be used exclusively by the charitable
1220	1220	organization, except that another individual or organization may
1221	1221	use the property for activities incidental to the charitable
1222	1222	organization's use that benefit the beneficiaries of the charitable
1223	1223	organization.
1224	1224	SECTION 37. Section 11.182(f), Tax Code, is amended to read
1225	1225	as follows:
1226	1226	(f) An organization entitled to an exemption under
1227	1227	Subsection (b) is also entitled to an exemption from taxation of any
1228	1228	building [or tangible personal property] the organization owns and
1229	1229	uses in the administration of its acquisition, building, repair,
1230	1230	sale, or rental of property. To qualify for an exemption under this
1231	1231	subsection, property must be used exclusively by the organization,
1232	1232	except that another person may use the property for activities
1233	1233	incidental to the organization's use that benefit the beneficiaries
1234	1234	of the organization.
1235	1235	SECTION 38. Section 11.1827(d), Tax Code, is amended to
1236	1236	read as follows:
1237	1237	(d) A community land trust entitled to an exemption from
1238	1238	taxation by a taxing unit under Subsection (b) is also entitled to
1239	1239	an exemption from taxation by the taxing unit of any real [or
1240	1240	tangible personal] property the trust owns and uses in the
1241	1241	administration of its acquisition, construction, repair, sale, or
1242	1242	leasing of property. To qualify for an exemption under this
1243	1243	subsection, property must be used exclusively by the trust, except
1244	1244	that another person may use the property for activities incidental
1245	1245	to the trust's use that benefit the beneficiaries of the trust.
1246	1246	SECTION 39. Section 11.184(c), Tax Code, is amended to read
1247	1247	as follows:
1248	1248	(c) A qualified charitable organization is entitled to an
1249	1249	exemption from taxation of:
1250	1250	(1) the buildings and other real property [and the
1251	1251	tangible personal property] that:
1252	1252	(A) are owned by the organization; and
1253	1253	(B) except as permitted by Subsection (d), are
1254	1254	used exclusively by the organization and other organizations
1255	1255	eligible for an exemption from taxation under this section or
1256	1256	Section 11.18; and
1257	1257	(2) the real property owned by the organization
1258	1258	consisting of:
1259	1259	(A) an incomplete improvement that:
1260	1260	(i) is under active construction or other
1261	1261	physical preparation; and
1262	1262	(ii) is designed and intended to be used
1263	1263	exclusively by the organization and other organizations eligible
1264	1264	for an exemption from taxation under this section or Section 11.18;
1265	1265	and
1266	1266	(B) the land on which the incomplete improvement
1267	1267	is located that will be reasonably necessary for the use of the
1268	1268	improvement by the organization and other organizations eligible
1269	1269	for an exemption from taxation under this section or Section 11.18.
1270	1270	SECTION 40. Section 11.185(c), Tax Code, is amended to read
1271	1271	as follows:
1272	1272	(c) An organization entitled to an exemption under
1273	1273	Subsection (a) is also entitled to an exemption from taxation of any
1274	1274	building [or tangible personal property] the organization owns and
1275	1275	uses in the administration of its acquisition, building, repair, or
1276	1276	sale of property. To qualify for an exemption under this
1277	1277	subsection, property must be used exclusively by the charitable
1278	1278	organization, except that another individual or organization may
1279	1279	use the property for activities incidental to the charitable
1280	1280	organization's use that benefit the beneficiaries of the charitable
1281	1281	organization.
1282	1282	SECTION 41. Sections 11.20(a), (d), (f), (g), (h), (j), and
1283	1283	(k), Tax Code, are amended to read as follows:
1284	1284	(a) An organization that qualifies as a religious
1285	1285	organization as provided by Subsection (c) is entitled to an
1286	1286	exemption from taxation of:
1287	1287	(1) the real property that is owned by the religious
1288	1288	organization, is used primarily as a place of regular religious
1289	1289	worship, and is reasonably necessary for engaging in religious
1290	1290	worship;
1291	1291	(2) [the tangible personal property that is owned by
1292	1292	the religious organization and is reasonably necessary for engaging
1293	1293	in worship at the place of worship specified in Subdivision (1);
1294	1294	[(3)] the real property that is owned by the religious
1295	1295	organization and is reasonably necessary for use as a residence
1296	1296	(but not more than one acre of land for each residence) if the
1297	1297	property:
1298	1298	(A) is used exclusively as a residence for those
1299	1299	individuals whose principal occupation is to serve in the clergy of
1300	1300	the religious organization; and
1301	1301	(B) produces no revenue for the religious
1302	1302	organization;
1303	1303	(3) [(4) the tangible personal property that is owned
1304	1304	by the religious organization and is reasonably necessary for use
1305	1305	of the residence specified by Subdivision (3);
1306	1306	[(5)] the real property owned by the religious
1307	1307	organization consisting of:
1308	1308	(A) an incomplete improvement that is under
1309	1309	active construction or other physical preparation and that is
1310	1310	designed and intended to be used by the religious organization as a
1311	1311	place of regular religious worship when complete; and
1312	1312	(B) the land on which the incomplete improvement
1313	1313	is located that will be reasonably necessary for the religious
1314	1314	organization's use of the improvement as a place of regular
1315	1315	religious worship;
1316	1316	(4) [(6)] the land that the religious organization
1317	1317	owns for the purpose of expansion of the religious organization's
1318	1318	place of regular religious worship or construction of a new place of
1319	1319	regular religious worship if:
1320	1320	(A) the religious organization qualifies other
1321	1321	property, including a portion of the same tract or parcel of land,
1322	1322	owned by the organization for an exemption under Subdivision (1) or
1323	1323	(3) [(5)]; and
1324	1324	(B) the land produces no revenue for the
1325	1325	religious organization; and
1326	1326	(5) [(7)] the real property owned by the religious
1327	1327	organization that is leased to another person and used by that
1328	1328	person for the operation of a school that qualifies as a school
1329	1329	under Section 11.21(d).
1330	1330	(d) Use of property that qualifies for the exemption
1331	1331	prescribed by Subsection (a)(1) [or (2)] or by Subsection (h)(1)
1332	1332	for occasional secular purposes other than religious worship does
1333	1333	not result in loss of the exemption if the primary use of the
1334	1334	property is for religious worship and all income from the other use
1335	1335	is devoted exclusively to the maintenance and development of the
1336	1336	property as a place of religious worship.
1337	1337	(f) A property may not be exempted under Subsection (a)(3)
1338	1338	[(a)(5)] for more than three years.
1339	1339	(g) For purposes of Subsection (a)(3) [(a)(5)], an
1340	1340	incomplete improvement is under physical preparation if the
1341	1341	religious organization has engaged in architectural or engineering
1342	1342	work, soil testing, land clearing activities, or site improvement
1343	1343	work necessary for the construction of the improvement or has
1344	1344	conducted an environmental or land use study relating to the
1345	1345	construction of the improvement.
1346	1346	(h) Property owned by this state or a political subdivision
1347	1347	of this state, including a leasehold or other possessory interest
1348	1348	in the property, that is held or occupied by an organization that
1349	1349	qualifies as a religious organization as provided by Subsection (c)
1350	1350	is entitled to an exemption from taxation if the property:
1351	1351	(1) is used by the organization primarily as a place of
1352	1352	regular religious worship and is reasonably necessary for engaging
1353	1353	in religious worship; or
1354	1354	(2) meets the qualifications for an exemption under
1355	1355	Subsection (a)(3) [(a)(5)].
1356	1356	(j) A tract of land that is contiguous to the tract of land
1357	1357	on which the religious organization's place of regular religious
1358	1358	worship is located may not be exempted under Subsection (a)(4)
1359	1359	[(a)(6)] for more than six years. A tract of land that is not
1360	1360	contiguous to the tract of land on which the religious
1361	1361	organization's place of regular religious worship is located may
1362	1362	not be exempted under Subsection (a)(4) [(a)(6)] for more than
1363	1363	three years. For purposes of this subsection, a tract of land is
1364	1364	considered to be contiguous with another tract of land if the tracts
1365	1365	are divided only by a road, railroad track, river, or stream.
1366	1366	(k) For purposes of Subsection (a)(4) [(a)(6)], an
1367	1367	application or statement accompanying an application for the
1368	1368	exemption stating that the land is owned for the purposes described
1369	1369	by Subsection (a)(4) [(a)(6)] and signed by an authorized officer
1370	1370	of the organization is sufficient to establish that the land is
1371	1371	owned for those purposes.
1372	1372	SECTION 42. Sections 11.201(a) and (c), Tax Code, are
1373	1373	amended to read as follows:
1374	1374	(a) If land is sold or otherwise transferred to another
1375	1375	person in a year in which the land receives an exemption under
1376	1376	Section 11.20(a)(4) [11.20(a)(6)], an additional tax is imposed on
1377	1377	the land equal to the tax that would have been imposed on the land
1378	1378	had the land been taxed for each of the five years preceding the
1379	1379	year in which the sale or transfer occurs in which the land received
1380	1380	an exemption under that subsection, plus interest at an annual rate
1381	1381	of seven percent calculated from the dates on which the taxes would
1382	1382	have become due.
1383	1383	(c) If only part of a parcel of land that is exempted under
1384	1384	Section 11.20(a)(4) [11.20(a)(6)] is sold or transferred, the tax
1385	1385	applies only to that part of the parcel and equals the taxes that
1386	1386	would have been imposed had that part been taxed.
1387	1387	SECTION 43. Sections 11.21(a), (b), and (f), Tax Code, are
1388	1388	amended to read as follows:
1389	1389	(a) A person is entitled to an exemption from taxation of:
1390	1390	(1) the buildings [and tangible personal property]
1391	1391	that the person owns and that are used for a school that is
1392	1392	qualified as provided by Subsection (d) if:
1393	1393	(A) the school is operated exclusively by the
1394	1394	person owning the property;
1395	1395	(B) except as permitted by Subsection (b), the
1396	1396	buildings [and tangible personal property] are used exclusively for
1397	1397	educational functions; and
1398	1398	(C) the buildings [and tangible personal
1399	1399	property] are reasonably necessary for the operation of the school;
1400	1400	and
1401	1401	(2) the real property owned by the person consisting
1402	1402	of:
1403	1403	(A) an incomplete improvement that:
1404	1404	(i) is under active construction or other
1405	1405	physical preparation; and
1406	1406	(ii) is designed and intended to be used for
1407	1407	a school that is qualified as provided by Subsection (d); and
1408	1408	(B) the land on which the incomplete improvement
1409	1409	is located that will be reasonably necessary for the use of the
1410	1410	improvement for a school that is qualified as provided by
1411	1411	Subsection (d).
1412	1412	(b) Use of exempt [tangible] property for functions other
1413	1413	than educational functions does not result in loss of an exemption
1414	1414	authorized by this section if those other functions are incidental
1415	1415	to use of the property for educational functions and benefit the
1416	1416	students or faculty of the school.
1417	1417	(f) Notwithstanding Subsection (a), a person is entitled to
1418	1418	an exemption from taxation of the buildings [and tangible personal
1419	1419	property] the person acquires for use for a school that meets each
1420	1420	requirement of Subsection (d) if:
1421	1421	(1) the person authorizes the former owner to continue
1422	1422	to use the property pending the use of the property for a school;
1423	1423	and
1424	1424	(2) the former owner would be entitled to an exemption
1425	1425	from taxation of the property if the former owner continued to own
1426	1426	the property.
1427	1427	SECTION 44. Section 11.23(m), Tax Code, is amended to read
1428	1428	as follows:
1429	1429	(m) National Hispanic Institute. The National Hispanic
1430	1430	Institute is entitled to an exemption from taxation of the real [and
1431	1431	tangible personal] property it owns as long as the organization is
1432	1432	exempt from federal income taxation under Section 501(a), Internal
1433	1433	Revenue Code of 1986, as an organization described by Section
1434	1434	501(c)(3) of that code.
1435	1435	SECTION 45. Section 11.231(b), Tax Code, is amended to read
1436	1436	as follows:
1437	1437	(b) An association that qualifies as a nonprofit community
1438	1438	business organization as provided by this section is entitled to an
1439	1439	exemption from taxation of:
1440	1440	(1) the buildings [and tangible personal property]
1441	1441	that:
1442	1442	(A) are owned by the nonprofit community business
1443	1443	organization; and
1444	1444	(B) except as permitted by Subsection (c), are
1445	1445	used exclusively by qualified nonprofit community business
1446	1446	organizations to perform their primary functions; and
1447	1447	(2) the real property owned by the nonprofit community
1448	1448	business organization consisting of:
1449	1449	(A) an incomplete improvement that:
1450	1450	(i) is under active construction or other
1451	1451	physical preparation; and
1452	1452	(ii) is designed and intended to be used
1453	1453	exclusively by qualified nonprofit community business
1454	1454	organizations; and
1455	1455	(B) the land on which the incomplete improvement
1456	1456	is located that will be reasonably necessary for the use of the
1457	1457	improvement by qualified nonprofit community business
1458	1458	organizations.
1459	1459	SECTION 46. Sections 11.35(a) and (g), Tax Code, are
1460	1460	amended to read as follows:
1461	1461	(a) In this section, "qualified property" means property
1462	1462	that:
1463	1463	(1) consists of:
1464	1464	(A) [tangible personal property used for the
1465	1465	production of income;
1466	1466	[(B)] an improvement to real property; or
1467	1467	(B) [(C)] a manufactured home as that term is
1468	1468	defined by Section 1201.003, Occupations Code, that is used as a
1469	1469	dwelling, regardless of whether the owner of the manufactured home
1470	1470	elects to treat the manufactured home as real property under
1471	1471	Section 1201.2055, Occupations Code;
1472	1472	(2) is located in an area declared by the governor to
1473	1473	be a disaster area following a disaster; and
1474	1474	(3) is at least 15 percent damaged by the disaster, as
1475	1475	determined by the chief appraiser under this section[; and
1476	1476	[(4) for property described by Subdivision (1)(A), is
1477	1477	the subject of a rendition statement or property report filed by the
1478	1478	property owner under Section 22.01 that demonstrates that the
1479	1479	property had taxable situs in the disaster area for the tax year in
1480	1480	which the disaster occurred].
1481	1481	(g) The chief appraiser shall assign to an item of qualified
1482	1482	property:
1483	1483	(1) a Level I damage assessment rating if the property
1484	1484	is at least 15 percent, but less than 30 percent, damaged, meaning
1485	1485	that the property suffered minimal damage and may continue to be
1486	1486	used as intended;
1487	1487	(2) a Level II damage assessment rating if the
1488	1488	property is at least 30 percent, but less than 60 percent, damaged,
1489	1489	meaning [which, for qualified property described by Subsection
1490	1490	(a)(1)(B) or (C), means] that the property has suffered only
1491	1491	nonstructural damage, including nonstructural damage to the roof,
1492	1492	walls, foundation, or mechanical components, and the waterline, if
1493	1493	any, is less than 18 inches above the floor;
1494	1494	(3) a Level III damage assessment rating if the
1495	1495	property is at least 60 percent damaged but is not a total loss,
1496	1496	meaning [which, for qualified property described by Subsection
1497	1497	(a)(1)(B) or (C), means] that the property has suffered significant
1498	1498	structural damage requiring extensive repair due to the failure or
1499	1499	partial failure of structural elements, wall elements, or the
1500	1500	foundation, or the waterline is at least 18 inches above the floor;
1501	1501	or
1502	1502	(4) a Level IV damage assessment rating if the
1503	1503	property is a total loss, meaning that repair of the property is not
1504	1504	feasible.
1505	1505	SECTION 47. Section 11.42(b), Tax Code, is amended to read
1506	1506	as follows:
1507	1507	(b) An exemption authorized by Section 11.11 [or 11.141] is
1508	1508	effective immediately on qualification for the exemption.
1509	1509	SECTION 48. Sections 11.43(a), (b), (c), and (e), Tax Code,
1510	1510	are amended to read as follows:
1511	1511	(a) To receive an exemption, a person claiming the
1512	1512	exemption, other than an exemption authorized by Section 11.11,
1513	1513	11.12, or [11.14, 11.141, 11.145,] 11.146[, 11.15, 11.16, 11.161,
1514	1514	or 11.25], must apply for the exemption. To apply for an exemption,
1515	1515	a person must file an exemption application form with the chief
1516	1516	appraiser for the [each] appraisal office established for each
1517	1517	county [district] in which the property subject to the claimed
1518	1518	exemption has situs.
1519	1519	(b) Except as provided by Subsection (c) and by Section
1520	1520	[Sections] 11.184 [and 11.437], a person required to apply for an
1521	1521	exemption must apply each year the person claims entitlement to the
1522	1522	exemption.
1523	1523	(c) An exemption provided by Section 11.13, 11.131, 11.132,
1524	1524	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
1525	1525	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
1526	1526	[11.254], 11.27, [11.271,] 11.29, 11.30, 11.31, [11.315,] or 11.35,
1527	1527	once allowed, need not be claimed in subsequent years, and except as
1528	1528	otherwise provided by Subsection (e), the exemption applies to the
1529	1529	property until it changes ownership or the person's qualification
1530	1530	for the exemption changes. However, except as provided by
1531	1531	Subsection (r), the chief appraiser may require a person allowed
1532	1532	one of the exemptions in a prior year to file a new application to
1533	1533	confirm the person's current qualification for the exemption by
1534	1534	delivering a written notice that a new application is required,
1535	1535	accompanied by an appropriate application form, to the person
1536	1536	previously allowed the exemption. If the person previously allowed
1537	1537	the exemption is 65 years of age or older, the chief appraiser may
1538	1538	not cancel the exemption due to the person's failure to file the new
1539	1539	application unless the chief appraiser complies with the
1540	1540	requirements of Subsection (q), if applicable.
1541	1541	(e) Except as provided by Section 11.422, 11.431, 11.433,
1542	1542	11.434, 11.435, or 11.439, [or 11.4391,] if a person required to
1543	1543	apply for an exemption in a given year fails to file timely a
1544	1544	completed application form, the person may not receive the
1545	1545	exemption for that year.
1546	1546	SECTION 49. Section 21.06(a), Tax Code, is amended to read
1547	1547	as follows:
1548	1548	(a) Except as provided by Section 21.08 [Sections 21.07
1549	1549	through 21.09 of this code], intangible property is taxable by a
1550	1550	taxing unit if the owner of the property resides in the taxing unit
1551	1551	on January 1, unless the property normally is used in this state for
1552	1552	business purposes outside the taxing unit. In that event, the
1553	1553	intangible property is taxable by each taxing unit in which the
1554	1554	property normally is used for business purposes.
1555	1555	SECTION 50. Sections 22.01(a), (b), (c), (c-2), (f), and
1556	1556	(g), Tax Code, are amended to read as follows:
1557	1557	(a) [Except as provided by Chapter 24, a person shall render
1558	1558	for taxation all tangible personal property used for the production
1559	1559	of income that the person owns or that the person manages and
1560	1560	controls as a fiduciary on January 1.] A rendition statement shall
1561	1561	contain:
1562	1562	(1) the name and address of the property owner;
1563	1563	(2) a description of the property by type or category;
1564	1564	(3) [if the property is inventory, a description of
1565	1565	each type of inventory and a general estimate of the quantity of
1566	1566	each type of inventory;
1567	1567	[(4)] the physical location or taxable situs of the
1568	1568	property; and
1569	1569	(4) [(5)] the property owner's good faith estimate of
1570	1570	the market value of the property or, at the option of the property
1571	1571	owner, the historical cost when new and the year of acquisition of
1572	1572	the property.
1573	1573	(b) When required by the chief appraiser, a person shall
1574	1574	render for taxation any [other] taxable property that the person
1575	1575	[he] owns or that the person [he] manages and controls as a
1576	1576	fiduciary on January 1.
1577	1577	(c) A person may render for taxation any property that the
1578	1578	person [he] owns or that the person [he] manages and controls as a
1579	1579	fiduciary on January 1, although the person [he] is not required to
1580	1580	render it by Subsection [(a) or] (b) [of this section].
1581	1581	(c-2) With the consent of the property owner, a secured
1582	1582	party may render for taxation any property of the property owner in
1583	1583	which the secured party has a security interest on January 1,
1584	1584	although the secured party is not required to render the property by
1585	1585	Subsection [(a) or] (b). This subsection applies only to property
1586	1586	that has a historical cost when new of more than $50,000.
1587	1587	(f) Notwithstanding Subsection [Subsections] (a) [and (b)],
1588	1588	a rendition statement of a person who owns [tangible personal]
1589	1589	property [used for the production of income] located in the county
1590	1590	for which the appraisal office is established [district] that, in
1591	1591	the owner's opinion, has an aggregate value of less than $20,000 is
1592	1592	required to contain only:
1593	1593	(1) the name and address of the property owner;
1594	1594	(2) a general description of the property by type or
1595	1595	category; and
1596	1596	(3) the physical location or taxable situs of the
1597	1597	property.
1598	1598	(g) A person's good faith estimate of the market value of
1599	1599	the property under Subsection (a)(4) [(a)(5)] is solely for the
1600	1600	purpose of compliance with any [the] requirement to render
1601	1601	[tangible personal] property and is inadmissible in any subsequent
1602	1602	protest, hearing, appeal, suit, or other proceeding under this
1603	1603	title involving the property, except for:
1604	1604	(1) a proceeding to determine whether the person
1605	1605	complied with this section;
1606	1606	(2) a proceeding under Section 22.29(b); or
1607	1607	(3) a protest under Section 41.41.
1608	1608	SECTION 51. Section 22.02, Tax Code, is amended to read as
1609	1609	follows:
1610	1610	Sec. 22.02. RENDITION OF PROPERTY LOSING EXEMPTION DURING
1611	1611	TAX YEAR [OR FOR WHICH EXEMPTION APPLICATION IS DENIED]. [(a)] If
1612	1612	an exemption applicable to a property on January 1 terminates
1613	1613	during the tax year, the person who owns or acquires the property on
1614	1614	the date applicability of the exemption terminates shall render the
1615	1615	property for taxation within 30 days after the date of termination.
1616	1616	[(b) If the chief appraiser denies an application for an
1617	1617	exemption for property described by Section 22.01(a), the person
1618	1618	who owns the property on the date the application is denied shall
1619	1619	render the property for taxation in the manner provided by Section
1620	1620	22.01 within 30 days after the date of denial.]
1621	1621	SECTION 52. Section 22.05, Tax Code, is amended to read as
1622	1622	follows:
1623	1623	Sec. 22.05. RENDITION BY RAILROAD. (a) A [In addition to
1624	1624	other reports required by Chapter 24 of this code, a] railroad
1625	1625	corporation shall render the real property the railroad corporation
1626	1626	owns or possesses as of January 1.
1627	1627	(b) The rendition shall:
1628	1628	(1) list all real property other than the property
1629	1629	covered by Subdivision (2) [of this subsection]; and
1630	1630	(2) list the number of miles of railroad together with
1631	1631	the market value per mile, which value shall include right-of-way,
1632	1632	roadbed, superstructure, and all buildings and improvements used in
1633	1633	the operation of the railroad[; and
1634	1634	[(3) list all personal property as required by Section
1635	1635	22.01 of this code].
1636	1636	SECTION 53. The heading to Section 22.07, Tax Code, is
1637	1637	amended to read as follows:
1638	1638	Sec. 22.07. STATEMENT INDICATING HOW VALUE RENDERED
1639	1639	[INSPECTION OF PROPERTY].
1640	1640	SECTION 54. Section 22.07, Tax Code, is amended by amending
1641	1641	Subsection (c) and adding Subsection (c-1) to read as follows:
1642	1642	(c) The chief appraiser may request, either in writing or by
1643	1643	electronic means, that the property owner provide a statement
1644	1644	containing supporting information indicating how the value
1645	1645	rendered under Section 22.01(a)(4) [22.01(a)(5)] was determined.
1646	1646	The statement must:
1647	1647	(1) summarize information sufficient to identify the
1648	1648	property, including:
1649	1649	(A) the physical and economic characteristics
1650	1650	relevant to the opinion of value, if appropriate; and
1651	1651	(B) the source of the information used;
1652	1652	(2) state the effective date of the opinion of value;
1653	1653	and
1654	1654	(3) explain the basis of the value rendered.
1655	1655	(c-1) If the property owner is a business with 50 employees
1656	1656	or less, the property owner may base the estimate of value on the
1657	1657	depreciation schedules used for federal income tax purposes.
1658	1658	SECTION 55. Section 23.01(f), Tax Code, is amended to read
1659	1659	as follows:
1660	1660	(f) The selection of comparable properties and the
1661	1661	application of appropriate adjustments for the determination of an
1662	1662	appraised value of property by any person under Section 41.43(b)
1663	1663	[41.43(b)(3)] or 42.26(a) [42.26(a)(3)] must be based on the
1664	1664	application of generally accepted appraisal methods and
1665	1665	techniques. Adjustments must be based on recognized methods and
1666	1666	techniques that are necessary to produce a credible opinion.
1667	1667	SECTION 56. Section 23.0101, Tax Code, is amended to read as
1668	1668	follows:
1669	1669	Sec. 23.0101. CONSIDERATION OF ALTERNATE APPRAISAL
1670	1670	METHODS. (a) Except as provided by Subsections (b) and (c), in
1671	1671	[In] determining the market value of property, the chief appraiser
1672	1672	shall consider the cost, income, and market data comparison methods
1673	1673	of appraisal and use the most appropriate method.
1674	1674	(b) In determining the market value of residential real
1675	1675	property consisting of a single-family home, duplex, triplex, or
1676	1676	quadraplex constructed by or on behalf of the owner, the chief
1677	1677	appraiser shall use the cost method of appraisal.
1678	1678	(c) Except as otherwise provided by this title, in
1679	1679	determining the market value of real property other than a
1680	1680	single-family home, duplex, triplex, quadraplex, or tract of
1681	1681	unimproved land, the chief appraiser shall use the income method of
1682	1682	appraisal.
1683	1683	SECTION 57. Section 23.014, Tax Code, is amended to read as
1684	1684	follows:
1685	1685	Sec. 23.014. EXCLUSION OF PROPERTY AS REAL PROPERTY. In
1686	1686	[Except as provided by Section 23.24(b), in] determining the market
1687	1687	value of real property, the chief appraiser shall analyze the
1688	1688	effect on that value of, and exclude from that value the value of,
1689	1689	any:
1690	1690	(1) tangible personal property, including trade
1691	1691	fixtures;
1692	1692	(2) intangible personal property; or
1693	1693	(3) other property that is not subject to appraisal as
1694	1694	real property.
1695	1695	SECTION 58. Sections 23.12(a) and (f), Tax Code, are
1696	1696	amended to read as follows:
1697	1697	(a) The [Except as provided by Sections 23.121, 23.1241,
1698	1698	23.124, and 23.127, the] market value of a real property [an]
1699	1699	inventory is the price for which it would sell as a unit to a
1700	1700	purchaser who would continue the business. A real property [An]
1701	1701	inventory includes [shall include] residential real property which
1702	1702	has never been occupied as a residence and is held for sale in the
1703	1703	ordinary course of a trade or business, provided that the
1704	1704	residential real property remains unoccupied, is not leased or
1705	1705	rented, and produces no income.
1706	1706	(f) The owner of an inventory [other than a dealer's motor
1707	1707	vehicle inventory as that term is defined by Section 23.121, a
1708	1708	dealer's heavy equipment inventory as that term is defined by
1709	1709	Section 23.1241, or a dealer's vessel and outboard motor inventory
1710	1710	as that term is defined by Section 23.124, or a retail manufactured
1711	1711	housing inventory as that term is defined by Section 23.127] may
1712	1712	elect to have the inventory appraised at its market value as of
1713	1713	September 1 of the year preceding the tax year to which the
1714	1714	appraisal applies by filing an application with the chief appraiser
1715	1715	requesting that the inventory be appraised as of September 1. The
1716	1716	application must clearly describe the inventory to which it applies
1717	1717	and be signed by the owner of the inventory. The application
1718	1718	applies to the appraisal of the inventory in each tax year that
1719	1719	begins after the next August 1 following the date the application is
1720	1720	filed with the chief appraiser unless the owner of the inventory by
1721	1721	written notice filed with the chief appraiser revokes the
1722	1722	application or the ownership of the inventory changes. A notice
1723	1723	revoking the application is effective for each tax year that begins
1724	1724	after the next September following the date the notice of
1725	1725	revocation is filed with the chief appraiser.
1726	1726	SECTION 59. Section 23.23(a), Tax Code, is amended to read
1727	1727	as follows:
1728	1728	(a) Regardless [Notwithstanding the requirements of Section
1729	1729	25.18 and regardless] of whether the appraisal office has appraised
1730	1730	the property and determined the market value of the property for the
1731	1731	tax year, an appraisal office may increase the appraised value of a
1732	1732	residence homestead for a tax year to an amount not to exceed the
1733	1733	lesser of:
1734	1734	(1) the market value of the property for the most
1735	1735	recent tax year that the market value was determined by the
1736	1736	appraisal office; or
1737	1737	(2) the sum of:
1738	1738	(A) 10 percent of the appraised value of the
1739	1739	property for the preceding tax year;
1740	1740	(B) the appraised value of the property for the
1741	1741	preceding tax year; and
1742	1742	(C) the market value of all new improvements to
1743	1743	the property.
1744	1744	SECTION 60. Subchapter B, Chapter 23, Tax Code, is amended
1745	1745	by adding Section 23.231 to read as follows:
1746	1746	Sec. 23.231. LIMITATION ON APPRAISED VALUE OF CERTAIN REAL
1747	1747	PROPERTY. (a) This section applies only to residential real
1748	1748	property consisting of a single-family home, duplex, triplex, or
1749	1749	quadraplex or to a tract of unimproved land that the owner acquired
1750	1750	as a bona fide purchaser for value.
1751	1751	(b) This section applies to property only if the owner
1752	1752	discloses the purchase price the owner paid for the property to the
1753	1753	appraisal office.
1754	1754	(c) This section does not apply to property if:
1755	1755	(1) the purchase of the property was made:
1756	1756	(A) pursuant to a court order;
1757	1757	(B) from a trustee in bankruptcy;
1758	1758	(C) by one co-owner from one or more other
1759	1759	co-owners;
1760	1760	(D) from a spouse or a person or persons within
1761	1761	the first or second degree of lineal consanguinity of one or more of
1762	1762	the purchasers; or
1763	1763	(E) from a governmental entity; or
1764	1764	(2) the chief appraiser determines that the owner of
1765	1765	the property was not a bona fide purchaser for value under criteria
1766	1766	established by rules adopted by the comptroller for that purpose.
1767	1767	(d) Regardless of whether the appraisal office has
1768	1768	appraised the property and determined the market value of the
1769	1769	property for the tax year, the appraised value of property for a tax
1770	1770	year may not exceed the lesser of:
1771	1771	(1) the market value of the property; or
1772	1772	(2) the sum of:
1773	1773	(A) the purchase price paid by the property owner
1774	1774	for the property; and
1775	1775	(B) the market value of each new improvement to
1776	1776	the property as of January 1 of the first tax year in which the
1777	1777	improvement was added to the appraisal roll.
1778	1778	(e) When appraising property, the chief appraiser shall:
1779	1779	(1) appraise the property at its market value; and
1780	1780	(2) include in the appraisal records both the market
1781	1781	value of the property and the amount computed under Subsection
1782	1782	(d)(2).
1783	1783	(f) The limitation provided by Subsection (a) takes effect
1784	1784	as to property on January 1 of the first tax year the owner
1785	1785	qualifies the property for a limitation under this section. The
1786	1786	limitation expires on January 1 of the first tax year that neither
1787	1787	the owner of the property when the limitation took effect nor the
1788	1788	owner's spouse or surviving spouse qualifies for the limitation.
1789	1789	(g) This section does not apply to property appraised under
1790	1790	Subchapter C, D, E, F, or G.
1791	1791	(h) To receive a limitation on appraised value under this
1792	1792	section, the owner of the property must apply for the limitation.
1793	1793	To apply for the limitation, the owner must file an application with
1794	1794	the chief appraiser for each appraisal office in which the property
1795	1795	subject to the claimed limitation has situs. The application must
1796	1796	be filed not later than May 1 of the year after the year in which the
1797	1797	owner acquired the property. The comptroller by rule shall
1798	1798	prescribe the form for the application to ensure that the applicant
1799	1799	furnishes the information necessary to determine the applicant's
1800	1800	eligibility for the limitation, including the price for which the
1801	1801	applicant acquired the property.
1802	1802	(i) In this section, "new improvement" means an improvement
1803	1803	to property made since the owner acquired the property that
1804	1804	increases the market value of the property. The term does not
1805	1805	include repairs to or ordinary maintenance of an existing structure
1806	1806	or the grounds or another feature of the property.
1807	1807	(j) Notwithstanding Subsections (d) and (i) and except as
1808	1808	provided by Subdivision (2) of this subsection, an improvement to
1809	1809	property that would otherwise constitute a new improvement is not
1810	1810	treated as a new improvement if the improvement is a replacement
1811	1811	structure for a structure that was rendered uninhabitable or
1812	1812	unusable by a casualty or by wind or water damage. For purposes of
1813	1813	appraising the property under Subsection (d) in the tax year in
1814	1814	which the structure would have constituted a new improvement:
1815	1815	(1) the appraised value the property would have had in
1816	1816	the preceding tax year if the casualty or damage had not occurred is
1817	1817	considered to be the appraised value of the property for that year,
1818	1818	regardless of whether that appraised value exceeds the actual
1819	1819	appraised value of the property for that year as limited by
1820	1820	Subsection (d); and
1821	1821	(2) the replacement structure is considered to be a
1822	1822	new improvement only if:
1823	1823	(A) the square footage of the replacement
1824	1824	structure exceeds that of the replaced structure as that structure
1825	1825	existed before the casualty or damage occurred; or
1826	1826	(B) the exterior of the replacement structure is
1827	1827	of higher quality construction and composition than that of the
1828	1828	replaced structure.
1829	1829	(k) In this subsection, "disaster recovery program" means
1830	1830	the disaster recovery program administered by the General Land
1831	1831	Office or by a political subdivision of this state that is funded
1832	1832	with community development block grant disaster recovery money
1833	1833	authorized by federal law. Notwithstanding Subsection (j)(2), and
1834	1834	only to the extent necessary to satisfy the requirements of the
1835	1835	disaster recovery program, a replacement structure described by
1836	1836	that subdivision is not considered to be a new improvement if to
1837	1837	satisfy the requirements of the disaster recovery program it was
1838	1838	necessary that:
1839	1839	(1) the square footage of the replacement structure
1840	1840	exceed that of the replaced structure as that structure existed
1841	1841	before the casualty or damage occurred; or
1842	1842	(2) the exterior of the replacement structure be of
1843	1843	higher quality construction and composition than that of the
1844	1844	replaced structure.
1845	1845	(l) For purposes of Subsection (d)(2)(B), an improvement is
1846	1846	considered to be a new improvement in a tax year if the market value
1847	1847	of the improvement increased from the value of the improvement in
1848	1848	the preceding tax year because the improvement was not complete in
1849	1849	the preceding tax year.
1850	1850	SECTION 61. The heading to Section 25.18, Tax Code, is
1851	1851	amended to read as follows:
1852	1852	Sec. 25.18. REAPPRAISAL OF PROPERTY [PERIODIC
1853	1853	REAPPRAISALS].
1854	1854	SECTION 62. Section 25.18(a), Tax Code, is amended to read
1855	1855	as follows:
1856	1856	(a) An [Each] appraisal office may reappraise [shall
1857	1857	implement the plan for periodic reappraisal of] property if the
1858	1858	chief appraiser determines that conditions warrant the reappraisal
1859	1859	[approved by the board of directors under Section 6.05(i)].
1860	1860	SECTION 63. Section 25.19(b), Tax Code, as effective on
1861	1861	January 1, 2022, is amended to read as follows:
1862	1862	(b) The chief appraiser shall [separate real from personal
1863	1863	property and] include in the notice for each property:
1864	1864	(1) a list of the taxing units in which the property is
1865	1865	taxable;
1866	1866	(2) the appraised value of the property in the
1867	1867	preceding year;
1868	1868	(3) the taxable value of the property in the preceding
1869	1869	year for each taxing unit taxing the property;
1870	1870	(4) the appraised value of the property for the
1871	1871	current year, the kind and amount of each exemption and partial
1872	1872	exemption, if any, approved for the property for the current year
1873	1873	and for the preceding year, and, if an exemption or partial
1874	1874	exemption that was approved for the preceding year was canceled or
1875	1875	reduced for the current year, the amount of the exemption or partial
1876	1876	exemption canceled or reduced;
1877	1877	(5) in italic typeface, the following statement: "The
1878	1878	Texas Legislature does not set the amount of your local taxes. Your
1879	1879	property tax burden is decided by your locally elected officials,
1880	1880	and all inquiries concerning your taxes should be directed to those
1881	1881	officials";
1882	1882	(6) a detailed explanation of the time and procedure
1883	1883	for protesting the value;
1884	1884	(7) the date and place the appraisal review board will
1885	1885	begin hearing protests; and
1886	1886	(8) a brief explanation that the governing body of
1887	1887	each taxing unit decides whether or not taxes on the property will
1888	1888	increase and the appraisal office [district] only determines the
1889	1889	value of the property.
1890	1890	SECTION 64. Sections 25.19(b-1) and (b-3), Tax Code, are
1891	1891	amended to read as follows:
1892	1892	(b-1) In [For real property, in] addition to the information
1893	1893	required by Subsection (b), the chief appraiser shall state in a
1894	1894	notice required to be delivered under Subsection (a), the
1895	1895	difference, expressed as a percent increase or decrease, as
1896	1896	applicable, in the appraised value of the property for the current
1897	1897	tax year as compared to the fifth tax year before the current tax
1898	1898	year.
1899	1899	(b-3) This subsection applies only to an appraisal office
1900	1900	[district] described by Section 6.41(b-2). In addition to the
1901	1901	information required by Subsection (b), the chief appraiser shall
1902	1902	state in a notice of appraised value of property described by
1903	1903	Section 6.425(b) that the property owner has the right to have a
1904	1904	protest relating to the property heard by a special panel of the
1905	1905	appraisal review board.
1906	1906	SECTION 65. Sections 26.012(6) and (15), Tax Code, are
1907	1907	amended to read as follows:
1908	1908	(6) "Current total value" means the total taxable
1909	1909	value of property listed on the appraisal roll for the current year,
1910	1910	including all appraisal roll supplements and corrections as of the
1911	1911	date of the calculation, less the taxable value of property
1912	1912	exempted for the current tax year for the first time under Section
1913	1913	11.31 [or 11.315], except that:
1914	1914	(A) the current total value for a school district
1915	1915	excludes:
1916	1916	(i) the total value of homesteads that
1917	1917	qualify for a tax limitation as provided by Section 11.26; and
1918	1918	(ii) new property value of property that is
1919	1919	subject to an agreement entered into under Chapter 313; and
1920	1920	(B) the current total value for a county,
1921	1921	municipality, or junior college district excludes the total value
1922	1922	of homesteads that qualify for a tax limitation provided by Section
1923	1923	11.261.
1924	1924	(15) "Lost property levy" means the amount of taxes
1925	1925	levied in the preceding year on property value that was taxable in
1926	1926	the preceding year but is not taxable in the current year because
1927	1927	the property is exempt in the current year under a provision of this
1928	1928	code other than Section [11.251, 11.253, or] 11.35, the property
1929	1929	has qualified for special appraisal under Chapter 23 in the current
1930	1930	year, or the property is located in territory that has ceased to be
1931	1931	a part of the taxing unit since the preceding year.
1932	1932	SECTION 66. Section 26.09(b), Tax Code, is amended to read
1933	1933	as follows:
1934	1934	(b) [The county assessor-collector shall add the properties
1935	1935	and their values certified to him as provided by Chapter 24 of this
1936	1936	code to the appraisal roll for county tax purposes.] The county
1937	1937	assessor-collector shall use the appraisal roll certified to the
1938	1938	county assessor-collector [him] as provided by Section 26.01 [with
1939	1939	the added properties and values] to calculate county taxes.
1940	1940	SECTION 67. Section 31.032(a), Tax Code, is amended to read
1941	1941	as follows:
1942	1942	(a) This section applies only to:
1943	1943	(1) real property that:
1944	1944	(A) is:
1945	1945	(i) the residence homestead of the owner or
1946	1946	consists of property that is used for residential purposes and that
1947	1947	has fewer than five living units; or
1948	1948	(ii) owned or leased by a business entity
1949	1949	that had not more than the amount calculated as provided by
1950	1950	Subsection (h) in gross receipts in the entity's most recent
1951	1951	federal tax year or state franchise tax annual period, according to
1952	1952	the applicable federal income tax return or state franchise tax
1953	1953	report of the entity;
1954	1954	(B) is located in a disaster area; and
1955	1955	(C) has been damaged as a direct result of the
1956	1956	disaster; and
1957	1957	(2) [tangible personal property that is owned or
1958	1958	leased by a business entity described by Subdivision (1)(A)(ii);
1959	1959	and
1960	1960	[(3)] taxes that are imposed on the property by a taxing
1961	1961	unit before the first anniversary of the disaster.
1962	1962	SECTION 68. Section 41.43(b), Tax Code, is amended to read
1963	1963	as follows:
1964	1964	(b) A protest on the ground of unequal appraisal of property
1965	1965	shall be determined in favor of the protesting party unless the
1966	1966	appraisal office [district] establishes that[:
1967	1967	[(1) the appraisal ratio of the property is equal to or
1968	1968	less than the median level of appraisal of a reasonable and
1969	1969	representative sample of other properties in the appraisal
1970	1970	district;
1971	1971	[(2) the appraisal ratio of the property is equal to or
1972	1972	less than the median level of appraisal of a sample of properties in
1973	1973	the appraisal district consisting of a reasonable number of other
1974	1974	properties similarly situated to, or of the same general kind or
1975	1975	character as, the property subject to the protest; or
1976	1976	[(3)] the appraised value of the property is equal to or
1977	1977	less than the median appraised value of a reasonable number of
1978	1978	comparable properties appropriately adjusted.
1979	1979	SECTION 69. Section 41.44(a), Tax Code, is amended to read
1980	1980	as follows:
1981	1981	(a) Except as provided by Subsections (b), (c), (c-1), and
1982	1982	(c-2), to be entitled to a hearing and determination of a protest,
1983	1983	the property owner initiating the protest must file a written
1984	1984	notice of the protest with the appraisal review board having
1985	1985	authority to hear the matter protested:
1986	1986	(1) not later than May 15 or the 30th day after the
1987	1987	date that notice to the property owner was delivered to the property
1988	1988	owner as provided by Section 25.19, whichever is later;
1989	1989	(2) in the case of a protest of a change in the
1990	1990	appraisal records ordered as provided by Subchapter A of this
1991	1991	chapter or by Chapter 25, not later than the 30th day after the date
1992	1992	notice of the change is delivered to the property owner;
1993	1993	(3) in the case of a determination that a change in the
1994	1994	use of land appraised under Subchapter C, D, E, or H, Chapter 23,
1995	1995	has occurred, not later than the 30th day after the date the notice
1996	1996	of the determination is delivered to the property owner; or
1997	1997	(4) [in the case of a determination of eligibility for
1998	1998	a refund under Section 23.1243, not later than the 30th day after
1999	1999	the date the notice of the determination is delivered to the
2000	2000	property owner; or
2001	2001	[(5)] in the case of a protest of the modification or
2002	2002	denial of an application for an exemption under Section 11.35, or
2003	2003	the determination of an appropriate damage assessment rating for an
2004	2004	item of qualified property under that section, not later than the
2005	2005	30th day after the date the property owner receives the notice
2006	2006	required under Section 11.45(e).
2007	2007	SECTION 70. Section 42.01, Tax Code, is amended to read as
2008	2008	follows:
2009	2009	Sec. 42.01. RIGHT OF APPEAL BY PROPERTY OWNER. (a) A
2010	2010	property owner is entitled to appeal[:
2011	2011	[(1)] an order of the appraisal review board
2012	2012	determining:
2013	2013	(1) [(A)] a protest by the property owner as provided
2014	2014	by Subchapter C of Chapter 41;
2015	2015	(2) [(B)] a motion filed under Section 25.25;
2016	2016	(3) [(C)] that the property owner has forfeited the
2017	2017	right to a final determination of a motion filed under Section 25.25
2018	2018	or of a protest under Section 41.411 for failing to comply with the
2019	2019	prepayment requirements of Section 25.26 or 41.4115, as applicable;
2020	2020	or
2021	2021	(4) [(D) eligibility for a refund requested under
2022	2022	Section 23.1243; or
2023	2023	[(E)] that the appraisal review board lacks
2024	2024	jurisdiction to finally determine a protest by the property owner
2025	2025	under Subchapter C, Chapter 41, or a motion filed by the property
2026	2026	owner under Section 25.25 because the property owner failed to
2027	2027	comply with a requirement of Subchapter C, Chapter 41, or Section
2028	2028	25.25, as applicable[; or
2029	2029	[(2) an order of the comptroller issued as provided by
2030	2030	Subchapter B, Chapter 24, apportioning among the counties the
2031	2031	appraised value of railroad rolling stock owned by the property
2032	2032	owner].
2033	2033	(b) A property owner who establishes that the owner did not
2034	2034	forfeit the right to a final determination of a motion or of a
2035	2035	protest in an appeal under Subsection (a)(3) [(a)(1)(C)] is
2036	2036	entitled to a final determination of the court, as applicable:
2037	2037	(1) of the motion filed under Section 25.25; or
2038	2038	(2) of the protest under Section 41.411 of the failure
2039	2039	of the chief appraiser or appraisal review board to provide or
2040	2040	deliver a notice to which the property owner is entitled, and, if
2041	2041	failure to provide or deliver the notice is established, of a
2042	2042	protest made by the property owner on any other grounds of protest
2043	2043	authorized by this title relating to the property to which the
2044	2044	notice applies.
2045	2045	(c) A property owner who establishes that the appraisal
2046	2046	review board had jurisdiction to issue a final determination of the
2047	2047	protest by the property owner under Subchapter C, Chapter 41, or of
2048	2048	the motion filed by the property owner under Section 25.25 in an
2049	2049	appeal under Subsection (a)(4) [(a)(1)(E)] of this section is
2050	2050	entitled to a final determination by the court of the protest under
2051	2051	Subchapter C, Chapter 41, or of the motion filed under Section
2052	2052	25.25. A final determination of a protest under Subchapter C,
2053	2053	Chapter 41, by the court under this subsection may be on any ground
2054	2054	of protest authorized by this title applicable to the property that
2055	2055	is the subject of the protest, regardless of whether the property
2056	2056	owner included the ground in the property owner's notice of
2057	2057	protest.
2058	2058	SECTION 71. Section 42.21(b), Tax Code, is amended to read
2059	2059	as follows:
2060	2060	(b) A petition for review brought under Section 42.02 must
2061	2061	be brought against the owner of the property involved in the appeal.
2062	2062	A petition for review brought under Section 42.031 must be brought
2063	2063	against the appraisal office [district] and against the owner of
2064	2064	the property involved in the appeal. [A petition for review brought
2065	2065	under Section 42.01(a)(2) or 42.03 must be brought against the
2066	2066	comptroller.] Any other petition for review under this chapter
2067	2067	must be brought against the appraisal office [district]. A
2068	2068	petition for review may not be brought against the appraisal review
2069	2069	board. An appraisal office [district] may hire an attorney that
2070	2070	represents the office [district] to represent the appraisal review
2071	2071	board established for the office [district] to file an answer and
2072	2072	obtain a dismissal of a suit filed against the appraisal review
2073	2073	board in violation of this subsection.
2074	2074	SECTION 72. Section 42.22, Tax Code, as amended by Chapters
2075	2075	667 (S.B. 548) and 1033 (H.B. 301), Acts of the 73rd Legislature,
2076	2076	Regular Session, 1993, is reenacted and amended to read as follows:
2077	2077	Sec. 42.22. VENUE. (a) Except as provided by Subsection
2078	2078	[Subsections] (b) of this section [and (c),] and by Section 42.221,
2079	2079	venue is in the county in which the appraisal review board that
2080	2080	issued the order appealed is located.
2081	2081	(b) Venue of an action brought under Section 42.01(a)
2082	2082	[42.01(1)] is in the county in which the property is located or in
2083	2083	the county in which the appraisal review board that issued the order
2084	2084	is located.
2085	2085	[(c) Venue is in Travis County if the order appealed was
2086	2086	issued by the comptroller.]
2087	2087	SECTION 73. Section 42.23(f), Tax Code, is amended to read
2088	2088	as follows:
2089	2089	(f) For purposes of a no-evidence motion for summary
2090	2090	judgment filed by a party to an appeal under this chapter, the offer
2091	2091	of evidence, including an affidavit or testimony, by any person,
2092	2092	including the appraisal office [district], the property owner, or
2093	2093	the owner's agent, that was presented at the hearing on the protest
2094	2094	before the appraisal review board constitutes sufficient evidence
2095	2095	to deny the motion.
2096	2096	SECTION 74. Sections 42.26(a), (b), and (d), Tax Code, are
2097	2097	amended to read as follows:
2098	2098	(a) The district court shall grant relief on the ground that
2099	2099	a property is appraised unequally if[:
2100	2100	[(1) the appraisal ratio of the property exceeds by at
2101	2101	least 10 percent the median level of appraisal of a reasonable and
2102	2102	representative sample of other properties in the appraisal
2103	2103	district;
2104	2104	[(2) the appraisal ratio of the property exceeds by at
2105	2105	least 10 percent the median level of appraisal of a sample of
2106	2106	properties in the appraisal district consisting of a reasonable
2107	2107	number of other properties similarly situated to, or of the same
2108	2108	general kind or character as, the property subject to the appeal; or
2109	2109	[(3)] the appraised value of the property exceeds the
2110	2110	median appraised value of a reasonable number of comparable
2111	2111	properties appropriately adjusted.
2112	2112	(b) [If a property owner is entitled to relief under
2113	2113	Subsection (a)(1), the court shall order the property's appraised
2114	2114	value changed to the value as calculated on the basis of the median
2115	2115	level of appraisal according to Subsection (a)(1). If a property
2116	2116	owner is entitled to relief under Subsection (a)(2), the court
2117	2117	shall order the property's appraised value changed to the value
2118	2118	calculated on the basis of the median level of appraisal according
2119	2119	to Subsection (a)(2).] If a property owner is entitled to relief
2120	2120	under Subsection (a) [Subsection (a)(3)], the court shall order the
2121	2121	property's appraised value changed to the value calculated on the
2122	2122	basis of the median appraised value according to that subsection
2123	2123	[Subsection (a)(3). If a property owner is entitled to relief under
2124	2124	more than one subdivision of Subsection (a), the court shall order
2125	2125	the property's appraised value changed to the value that results in
2126	2126	the lowest appraised value]. The court shall determine the [each
2127	2127	applicable median level of appraisal or] median appraised value
2128	2128	according to law[,] and is not required to adopt the [median level
2129	2129	of appraisal or] median appraised value proposed by a party to the
2130	2130	appeal. [The court may not limit or deny relief to the property
2131	2131	owner entitled to relief under a subdivision of Subsection (a)
2132	2132	because the appraised value determined according to another
2133	2133	subdivision of Subsection (a) results in a higher appraised value.]
2134	2134	(d) For purposes of this section, the value of the property
2135	2135	subject to the suit and the value of a comparable property [or
2136	2136	sample property] that is used for comparison must be the market
2137	2137	value determined by the appraisal office [district] when the
2138	2138	property is [a residence homestead] subject to the limitation on
2139	2139	appraised value imposed by Section 23.23 or 23.231.
2140	2140	SECTION 75. Sections 151.356(a) and (c), Tax Code, are
2141	2141	amended to read as follows:
2142	2142	(a) In this section:
2143	2143	(1) "Environmental protection agency of the United
2144	2144	States" includes:
2145	2145	(A) the United States Department of the Interior
2146	2146	and any agency, bureau, or other entity established in that
2147	2147	department, including the Bureau of Safety and Environmental
2148	2148	Enforcement and the Bureau of Ocean Energy Management; and
2149	2149	(B) any other department, agency, bureau, or
2150	2150	entity of the United States that prescribes rules or regulations
2151	2151	described by Subdivision (3)(A).
2152	2152	(2) "Offshore[, "offshore] spill response containment
2153	2153	property" means tangible personal property:
2154	2154	(A) used, constructed, acquired, stored, or
2155	2155	installed solely as part of, or used solely for the development,
2156	2156	improvement, storage, deployment, repair, maintenance, or testing
2157	2157	of, an offshore spill response containment system that is stored
2158	2158	while not in use in a county bordering on the Gulf of Mexico or on a
2159	2159	bay or other body of water immediately adjacent to the Gulf of
2160	2160	Mexico [(1) described by Section 11.271(c)];
2161	2161	(B) [(2)] owned or leased by an entity formed
2162	2162	primarily for the purpose of designing, developing, modifying,
2163	2163	enhancing, assembling, operating, deploying, and maintaining an
2164	2164	offshore spill response containment system [described by Section
2165	2165	11.271(f)]; and
2166	2166	(C) [(3)] used or intended to be used solely in
2167	2167	an offshore spill response containment system [as defined by
2168	2168	Section 11.271(a)].
2169	2169	(3) "Offshore spill response containment system"
2170	2170	means a marine or mobile containment system that:
2171	2171	(A) is designed and used or intended to be used
2172	2172	solely to implement a response plan that meets or exceeds rules or
2173	2173	regulations adopted by any environmental protection agency of the
2174	2174	United States, this state, or a political subdivision of this state
2175	2175	for the control, reduction, or monitoring of air, water, or land
2176	2176	pollution in the event of a blowout or loss of control of an
2177	2177	offshore well drilled or used for the exploration for or production
2178	2178	of oil or gas;
2179	2179	(B) has a design capability to respond to a
2180	2180	blowout or loss of control of an offshore well drilled or used for
2181	2181	the exploration for or production of oil or gas that is drilled in
2182	2182	more than 5,000 feet of water;
2183	2183	(C) is used or intended to be used solely to
2184	2184	respond to a blowout or loss of control of an offshore well drilled
2185	2185	or used for the exploration for or production of oil or gas without
2186	2186	regard to the depth of the water in which the well is drilled; and
2187	2187	(D) except for any monitoring function for which
2188	2188	the system may be used, is used or intended to be used as a temporary
2189	2189	measure to address fugitive oil, gas, sulfur, or other minerals
2190	2190	after a leak has occurred and is not used or intended to be used
2191	2191	after the leak has been contained as a continuing means of producing
2192	2192	oil, gas, sulfur, or other minerals.
2193	2193	(4) "Rules or regulations adopted by any environmental
2194	2194	protection agency of the United States" includes 30 C.F.R. Part 254
2195	2195	and any corresponding provision or provisions of succeeding,
2196	2196	similar, substitute, proposed, or final federal regulations.
2197	2197	(c) The sale, lease, rental, storage, use, or other
2198	2198	consumption by an entity described by Subsection (a)(2)(B) [Section
2199	2199	11.271(f)] of offshore spill response containment property used
2200	2200	solely for the purposes described by [Section 11.271(c) and] this
2201	2201	section is exempted from the taxes imposed by this chapter.
2202	2202	SECTION 76. Section 71.041(5), Agriculture Code, is amended
2203	2203	to read as follows:
2204	2204	(5) "Nursery stock weather protection unit" means a
2205	2205	plant cover consisting of a series of removable, portable metal
2206	2206	hoops, covered by nonreusable plastic sheeting, shade cloth, or
2207	2207	other similar removable material, used exclusively for protecting
2208	2208	nursery products from weather elements. A nursery stock weather
2209	2209	protection unit is an implement of husbandry for all purposes[,
2210	2210	including Article VIII, Section 19a, of the Texas Constitution].
2211	2211	SECTION 77. Section 93.001(2), Business & Commerce Code, is
2212	2212	amended to read as follows:
2213	2213	(2) "Heavy equipment" means self-propelled,
2214	2214	self-powered, or pull-type equipment, including farm equipment or a
2215	2215	diesel engine, that weighs at least 1,500 pounds and is intended to
2216	2216	be used for agricultural, construction, industrial, maritime,
2217	2217	mining, or forestry uses. The term does not include a motor vehicle
2218	2218	that is required by:
2219	2219	(A) Chapter 501, Transportation Code, to be
2220	2220	titled; or
2221	2221	(B) Chapter 502, Transportation Code, to be
2222	2222	registered [has the meaning assigned by Section 23.1241, Tax Code].
2223	2223	SECTION 78. Sections 89.003(a) and (b), Finance Code, are
2224	2224	amended to read as follows:
2225	2225	(a) Each association and each federal association shall
2226	2226	render for ad valorem taxation all of its personal property, other
2227	2227	than tangible personal property [furniture, fixtures, equipment,
2228	2228	and automobiles], as a whole at the value remaining after deducting
2229	2229	the following from the total value of its entire assets:
2230	2230	(1) all debts that it owes;
2231	2231	(2) all tax-free securities that it owns;
2232	2232	(3) its loss reserves and surplus;
2233	2233	(4) its savings liability; [and]
2234	2234	(5) the appraised value of its [furniture, fixtures,
2235	2235	and] real property; and
2236	2236	(6) the value of its tangible personal property.
2237	2237	(b) The association or federal association shall render the
2238	2238	personal property, other than tangible personal property
2239	2239	[furniture, fixtures, equipment, and automobiles], to the chief
2240	2240	appraiser of the appraisal office [district] in the county in which
2241	2241	its principal office is located.
2242	2242	SECTION 79. Subchapter M, Chapter 403, Government Code, is
2243	2243	amended by adding Section 403.3001 to read as follows:
2244	2244	Sec. 403.3001. DETERMINATION OF SCHOOL DISTRICT PROPERTY
2245	2245	VALUES. A reference in law to the taxable value or total taxable
2246	2246	value of property in a school district as determined under this
2247	2247	subchapter means the total taxable value of that property as
2248	2248	determined by the assessor for the district under Section 26.04,
2249	2249	Tax Code.
2250	2250	SECTION 80. Chapter 245, Local Government Code, is amended
2251	2251	by adding Section 245.008 to read as follows:
2252	2252	Sec. 245.008. NOTIFICATION OF APPRAISAL OFFICE OF ISSUANCE
2253	2253	OF CERTAIN PERMITS. A political subdivision that issues a
2254	2254	real-property-related permit shall notify the appraisal office
2255	2255	established for the county in which the property is located of the
2256	2256	issuance of the permit.
2257	2257	SECTION 81. Section 1151.1015, Occupations Code, is amended
2258	2258	to read as follows:
2259	2259	Sec. 1151.1015. ASSISTANCE FROM COMPTROLLER. The
2260	2260	comptroller shall enter into a memorandum of understanding with the
2261	2261	department under which the comptroller shall provide:
2262	2262	(1) information on the educational needs of and
2263	2263	opportunities for tax professionals;
2264	2264	(2) review and approval of all required educational
2265	2265	courses, examinations, and continuing education programs for
2266	2266	registrants; and
2267	2267	(3) [a copy of any report issued by the comptroller
2268	2268	under Section 5.102, Tax Code, and if requested by the department a
2269	2269	copy of any work papers or other documents collected or created in
2270	2270	connection with a report issued under that section; and
2271	2271	[(4)] information and assistance regarding
2272	2272	administrative proceedings conducted under the commission's rules
2273	2273	or this chapter.
2274	2274	SECTION 82. Section 1151.204(c), Occupations Code, is
2275	2275	amended to read as follows:
2276	2276	(c) This section does not apply to:
2277	2277	(1) [a matter referred to the department by the
2278	2278	comptroller under Section 5.102, Tax Code, or a successor statute;
2279	2279	[(2)] a complaint concerning a registrant's failure to
2280	2280	comply with the registration and certification requirements of this
2281	2281	chapter; or
2282	2282	(2) [(3)] a complaint concerning a newly appointed
2283	2283	chief appraiser's failure to complete the training program
2284	2284	described by Section 1151.164.
2285	2285	SECTION 83. Section 503.038(a), Transportation Code, is
2286	2286	amended to read as follows:
2287	2287	(a) The department may cancel a dealer's general
2288	2288	distinguishing number if the dealer:
2289	2289	(1) falsifies or forges a title document, including an
2290	2290	affidavit making application for a certified copy of a title;
2291	2291	(2) files a false or forged tax document, including a
2292	2292	sales tax affidavit;
2293	2293	(3) fails to take assignment of any basic evidence of
2294	2294	ownership, including a certificate of title or manufacturer's
2295	2295	certificate, for a vehicle the dealer acquires;
2296	2296	(4) fails to assign any basic evidence of ownership,
2297	2297	including a certificate of title or manufacturer's certificate, for
2298	2298	a vehicle the dealer sells;
2299	2299	(5) uses or permits the use of a metal dealer's license
2300	2300	plate or a dealer's temporary tag on a vehicle that the dealer does
2301	2301	not own or control or that is not in stock and offered for sale;
2302	2302	(6) makes a material misrepresentation in an
2303	2303	application or other information filed with the department;
2304	2304	(7) fails to maintain the qualifications for a general
2305	2305	distinguishing number;
2306	2306	(8) fails to provide to the department within 30 days
2307	2307	after the date of demand by the department satisfactory and
2308	2308	reasonable evidence that the person is regularly and actively
2309	2309	engaged in business as a wholesale or retail dealer;
2310	2310	(9) has been licensed for at least 12 months and has
2311	2311	not assigned at least five vehicles during the previous 12-month
2312	2312	period;
2313	2313	(10) [has failed to demonstrate compliance with
2314	2314	Sections 23.12, 23.121, and 23.122, Tax Code;
2315	2315	[(11)] uses or allows the use of the dealer's general
2316	2316	distinguishing number or the location for which the general
2317	2317	distinguishing number is issued to avoid the requirements of this
2318	2318	chapter;
2319	2319	(11) [(12)] misuses or allows the misuse of a
2320	2320	temporary tag authorized under this chapter;
2321	2321	(12) [(13)] refuses to show on a buyer's temporary tag
2322	2322	the date of sale or other reasonable information required by the
2323	2323	department; or
2324	2324	(13) [(14)] otherwise violates this chapter or a rule
2325	2325	adopted under this chapter.
2326	2326	SECTION 84. (a) The following provisions of the Tax Code
2327	2327	are repealed:
2328	2328	(1) Section 1.12;
2329	2329	(2) Section 5.07(c);
2330	2330	(3) Section 5.10;
2331	2331	(4) Section 5.102;
2332	2332	(5) Section 5.12;
2333	2333	(6) Section 5.13;
2334	2334	(7) Section 5.16;
2335	2335	(8) Section 6.03;
2336	2336	(9) Section 6.031;
2337	2337	(10) Section 6.033;
2338	2338	(11) Section 6.034;
2339	2339	(12) Section 6.035(a-1);
2340	2340	(13) Section 6.036(a);
2341	2341	(14) Section 6.037;
2342	2342	(15) Section 6.04;
2343	2343	(16) Section 6.0501;
2344	2344	(17) Section 6.051;
2345	2345	(18) Section 6.061;
2346	2346	(19) Section 6.10;
2347	2347	(20) Section 6.15;
2348	2348	(21) Section 6.24(c);
2349	2349	(22) Section 11.11(h);
2350	2350	(23) Section 11.14;
2351	2351	(24) Section 11.141;
2352	2352	(25) Section 11.145;
2353	2353	(26) Section 11.15;
2354	2354	(27) Section 11.16;
2355	2355	(28) Section 11.161;
2356	2356	(29) Section 11.23(f);
2357	2357	(30) Section 11.25;
2358	2358	(31) Section 11.251;
2359	2359	(32) Section 11.252;
2360	2360	(33) Section 11.253;
2361	2361	(34) Section 11.254;
2362	2362	(35) Section 11.271;
2363	2363	(36) Section 11.311;
2364	2364	(37) Section 11.315;
2365	2365	(38) Section 11.33;
2366	2366	(39) Section 11.437;
2367	2367	(40) Section 11.4391;
2368	2368	(41) Section 21.02;
2369	2369	(42) Section 21.021;
2370	2370	(43) Section 21.03;
2371	2371	(44) Section 21.031;
2372	2372	(45) Section 21.04;
2373	2373	(46) Section 21.05;
2374	2374	(47) Section 21.055;
2375	2375	(48) Section 21.07;
2376	2376	(49) Section 21.09;
2377	2377	(50) Section 21.10;
2378	2378	(51) Sections 22.01(e), (i), (j), (k), and (m);
2379	2379	(52) Sections 22.04(b), (c), and (d);
2380	2380	(53) Sections 22.07(a) and (b);
2381	2381	(54) Section 23.121;
2382	2382	(55) Section 23.1211;
2383	2383	(56) Section 23.122;
2384	2384	(57) Section 23.123;
2385	2385	(58) Section 23.124;
2386	2386	(59) Section 23.1241;
2387	2387	(60) Section 23.1242;
2388	2388	(61) Section 23.1243;
2389	2389	(62) Section 23.125;
2390	2390	(63) Section 23.126;
2391	2391	(64) Section 23.127;
2392	2392	(65) Section 23.128;
2393	2393	(66) Section 23.129;
2394	2394	(67) Section 23.24;
2395	2395	(68) Chapter 24;
2396	2396	(69) Sections 25.18(b) and (c);
2397	2397	(70) Section 33.11;
2398	2398	(71) Subchapter B, Chapter 33;
2399	2399	(72) Section 41.413(a);
2400	2400	(73) Section 41.47(c-1);
2401	2401	(74) Section 42.03;
2402	2402	(75) Section 42.05; and
2403	2403	(76) Section 42.26(c).
2404	2404	(b) Section 25.12(c), Tax Code, as added by Chapter 450
2405	2405	(H.B. 1831), Acts of the 71st Legislature, Regular Session, 1989,
2406	2406	is repealed.
2407	2407	(c) Sections 49.302(b) and 49.304, Education Code, are
2408	2408	repealed.
2409	2409	(d) Section 89.003(c), Finance Code, is repealed.
2410	2410	(e) The following provisions of the Government Code are
2411	2411	repealed:
2412	2412	(1) Section 403.301;
2413	2413	(2) Section 403.3011;
2414	2414	(3) Section 403.302;
2415	2415	(4) Section 403.303; and
2416	2416	(5) Section 403.304.
2417	2417	(f) Sections 379B.011(c), (d), and (e), Local Government
2418	2418	Code, are repealed.
2419	2419	SECTION 85. (a) On the effective date of this Act:
2420	2420	(1) each appraisal district and appraisal district
2421	2421	board of directors is abolished;
2422	2422	(2) an appraisal office is established for each
2423	2423	county;
2424	2424	(3) the county assessor-collector of each county
2425	2425	begins to govern the appraisal office established for that county;
2426	2426	(4) all personnel, property, records, and funds of an
2427	2427	appraisal district are transferred to the appraisal office for the
2428	2428	county for which the appraisal district was established;
2429	2429	(5) all unpaid debts incurred by an appraisal district
2430	2430	become debts of the appraisal office for the county for which the
2431	2431	appraisal district was established;
2432	2432	(6) the appraisal office for the county for which an
2433	2433	appraisal district was established is substituted for the appraisal
2434	2434	district in any pending action, including a protest or challenge
2435	2435	before an appraisal review board or an appeal or other action in a
2436	2436	court; and
2437	2437	(7) the appraisal review board of an appraisal office
2438	2438	established for a county is substituted for the appraisal review
2439	2439	board of the appraisal district established for the county in any
2440	2440	pending action, including a protest or challenge before the
2441	2441	appraisal review board or an appeal or other action in a court.
2442	2442	(b) A measure taken or adopted by the board of directors of
2443	2443	an appraisal district established for a county before the effective
2444	2444	date of this Act that is in effect on the effective date of this Act
2445	2445	continues in effect after the effective date of this Act until
2446	2446	superseded by a measure taken or adopted by the county
2447	2447	assessor-collector who governs the appraisal office established
2448	2448	for that county.
2449	2449	SECTION 86. As soon as practicable on or after January 1,
2450	2450	2024, the county assessor-collector who governs each appraisal
2451	2451	office shall dispose of the real property owned by the office. The
2452	2452	county assessor-collector may use the proceeds to pay the debts of
2453	2453	the appraisal office or to cover the cost of administration of the
2454	2454	office.
2455	2455	SECTION 87. (a) Sections 6.035, 6.05, 6.41, 6.411, and
2456	2456	6.412, Tax Code, as amended by this Act, apply only to an offense
2457	2457	committed on or after the effective date of this Act. An offense
2458	2458	committed before the effective date of this Act is governed by the
2459	2459	law in effect on the date the offense was committed, and the former
2460	2460	law is continued in effect for that purpose. For purposes of this
2461	2461	subsection, an offense was committed before the effective date of
2462	2462	this Act if any element of the offense occurred before that date.
2463	2463	(b) Sections 6.15, 23.121, 23.122, 23.123, 23.124, 23.125,
2464	2464	23.126, 23.127, and 23.128, Tax Code, as repealed by this Act, apply
2465	2465	only to an offense committed before the effective date of this Act.
2466	2466	An offense committed before the effective date of this Act is
2467	2467	governed by the law in effect on the date the offense was committed,
2468	2468	and the former law is continued in effect for that purpose. For
2469	2469	purposes of this subsection, an offense was committed before the
2470	2470	effective date of this Act if any element of the offense occurred
2471	2471	before that date.
2472	2472	SECTION 88. (a) As soon as practicable on or after January
2473	2473	1, 2024, the state senators and state representatives whose
2474	2474	districts contain any part of the territory included in the county
2475	2475	for which an appraisal office is established, in the manner
2476	2476	provided by Section 6.12, Tax Code, as amended by this Act, shall
2477	2477	appoint the members of the agricultural advisory board for the
2478	2478	appraisal office. The county assessor-collector who governs the
2479	2479	appraisal office by resolution shall provide for staggered terms
2480	2480	for the members as necessary to comply with Section 6.12(c), Tax
2481	2481	Code.
2482	2482	(b) The changes made to Section 6.12, Tax Code, by this Act
2483	2483	apply only to the appointment of agricultural advisory board
2484	2484	members to terms beginning on or after January 1, 2024. This Act
2485	2485	does not affect the term of an agricultural advisory board member
2486	2486	serving on December 31, 2023, if the member was appointed before
2487	2487	January 1, 2024, to a term that began before December 31, 2023.
2488	2488	SECTION 89. (a) As soon as practicable on or after January
2489	2489	1, 2024, the state senators and state representatives whose
2490	2490	districts contain any part of the territory included in the county
2491	2491	for which an appraisal office is established, in the manner
2492	2492	provided by Section 6.41, Tax Code, as amended by this Act, shall
2493	2493	appoint the members of the appraisal review board for the appraisal
2494	2494	office. The county assessor-collector who governs the appraisal
2495	2495	office by resolution shall provide for staggered terms for the
2496	2496	members as necessary to comply with Section 6.41(i), Tax Code, as
2497	2497	amended by this Act.
2498	2498	(b) The changes made to Section 6.41, Tax Code, by this Act
2499	2499	apply only to the appointment of appraisal review board members to
2500	2500	terms beginning on or after January 1, 2024. This Act does not
2501	2501	affect the term of an appraisal review board member serving on
2502	2502	December 31, 2023, if the member was appointed before January 1,
2503	2503	2024, to a term that began before December 31, 2023, and expires
2504	2504	December 31, 2024.
2505	2505	SECTION 90. Section 23.231, Tax Code, as added by this Act,
2506	2506	applies only to the appraisal of real property for ad valorem tax
2507	2507	purposes for a tax year that begins on or after the effective date
2508	2508	of this Act.
2509	2509	SECTION 91. As soon as practicable after the effective date
2510	2510	of this Act, the comptroller of public accounts by rule shall adopt
2511	2511	forms and procedures necessary for the implementation of Section
2512	2512	23.231, Tax Code, as added by this Act.
2513	2513	SECTION 92. (a) The changes in law made by this Act to
2514	2514	Subchapter M, Chapter 403, Government Code, apply only to the
2515	2515	determination of the total taxable value of property in a school
2516	2516	district for a tax year that begins after December 31, 2023. The
2517	2517	determination of the total taxable value of property in a school
2518	2518	district for a tax year that begins before that date is governed by
2519	2519	Subchapter M, Chapter 403, Government Code, as that subchapter
2520	2520	existed when the tax year began, and the former law is continued in
2521	2521	effect for that purpose.
2522	2522	(b) Notwithstanding the changes in law made by this Act to
2523	2523	the provisions of the Tax Code, Agriculture Code, Business &
2524	2524	Commerce Code, Finance Code, and Transportation Code amended by
2525	2525	this Act and the repeal by this Act of provisions of the Tax Code and
2526	2526	Finance Code, each of those provisions, as it existed immediately
2527	2527	before January 1, 2022, is continued in effect for the purpose of
2528	2528	the levy and collection of an ad valorem tax on tangible personal
2529	2529	property imposed:
2530	2530	(1) before January 1, 2022; or
2531	2531	(2) pursuant to Section 1(l), Article VIII, Texas
2532	2532	Constitution.
2533	2533	SECTION 93. (a) If the constitutional amendment proposed
2534	2534	by the 87th Legislature, Regular Session, 2021, authorizing the
2535	2535	legislature to provide for the appraisal of certain real property
2536	2536	for ad valorem tax purposes based on its purchase price, exempting
2537	2537	all tangible personal property in this state from ad valorem
2538	2538	taxation, and authorizing the legislature to permit legislators to
2539	2539	appoint members of the board of equalization for an appraisal
2540	2540	entity is approved by the voters, the Special Tax Code Board is
2541	2541	created to recommend amendments to the Tax Code and other law to
2542	2542	efficiently and effectively implement the amendment.
2543	2543	(b) The board consists of nine members appointed as follows:
2544	2544	(1) seven members appointed by the governor;
2545	2545	(2) one member appointed by the lieutenant governor;
2546	2546	and
2547	2547	(3) one member appointed by the speaker of the house of
2548	2548	representatives.
2549	2549	(c) The board shall make legislative recommendations on
2550	2550	amendments to the Tax Code and other law required to implement the
2551	2551	constitutional amendment and otherwise improve the system for
2552	2552	appraising property for ad valorem tax purposes, including
2553	2553	recommendations regarding:
2554	2554	(1) the abolition of appraisal districts and the
2555	2555	transfer of their functions to the county assessor-collectors'
2556	2556	offices;
2557	2557	(2) the procedure to be used in appraising real
2558	2558	property for ad valorem tax purposes, including the appraisal of
2559	2559	such property on the basis of the purchase price of the property;
2560	2560	(3) the reporting of information regarding sales of
2561	2561	real property to the appraisal office and the use of that
2562	2562	information by the appraisal office;
2563	2563	(4) the notification of an appraisal office by a
2564	2564	political subdivision regarding real-property-related permits
2565	2565	issued by the political subdivision; and
2566	2566	(5) the procedure for appointing appraisal review
2567	2567	board members.
2568	2568	(d) Not later than September 1, 2022, the board shall submit
2569	2569	a report to the governor, lieutenant governor, speaker of the house
2570	2570	of representatives, comptroller of public accounts, Legislative
2571	2571	Budget Board, and legislature regarding the board's
2572	2572	recommendations.
2573	2573	(e) This section expires September 1, 2023.
2574	2574	SECTION 94. To the extent of any conflict, this Act prevails
2575	2575	over another Act of the 87th Legislature, Regular Session, 2021,
2576	2576	relating to nonsubstantive additions to and corrections in enacted
2577	2577	codes.
2578	2578	SECTION 95. (a) Except as provided by Subsection (b) of
2579	2579	this section, this Act takes effect January 1, 2024, but only if the
2580	2580	constitutional amendment proposed by the 87th Legislature, Regular
2581	2581	Session, 2021, authorizing the legislature to provide for the
2582	2582	appraisal of certain real property for ad valorem tax purposes
2583	2583	based on its purchase price, exempting all tangible personal
2584	2584	property in this state from ad valorem taxation, and authorizing
2585	2585	the legislature to permit legislators to appoint members of the
2586	2586	board of equalization for an appraisal entity is approved by the
2587	2587	voters. If that amendment is not approved by the voters, this Act
2588	2588	has no effect.
2589	2589	(b) Subject to Subsection (a) of this section, the section
2590	2590	of this Act creating the Special Tax Code Board takes effect January
2591	2591	1, 2022.