Texas 2021 - 87th Regular

Texas House Bill HB3260 Compare Versions

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

Old	New	Differences
1	1	87R10532 TJB-F
2	2	By: Thierry H.B. No. 3260
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to ad valorem taxation, including the disclosure of the
8	8	sales price of real property to use in appraising property for ad
9	9	valorem tax purposes and the effect of an unfunded mandate on the
10	10	use by a political subdivision of ad valorem tax revenue.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. This Act may be cited as the Texas Homeowners Tax
13	13	Relief Act.
14	14	SECTION 2. Section 6.30(c), Tax Code, is amended to read as
15	15	follows:
16	16	(c) The governing body of a taxing unit may contract with
17	17	any competent attorney to represent the taxing unit to enforce the
18	18	collection of delinquent taxes. The attorney's compensation is set
19	19	in the contract, but the total amount of compensation provided may
20	20	not exceed 15 [20] percent of the amount of delinquent tax, penalty,
21	21	and interest collected.
22	22	SECTION 3. Section 11.13(n), Tax Code, is amended to read as
23	23	follows:
24	24	(n) The [In addition to any other exemptions provided by
25	25	this section, an individual is entitled to an exemption from
26	26	taxation by a taxing unit of a percentage of the appraised value of
27	27	his residence homestead if the exemption is adopted by the]
28	28	governing body of a [the] taxing unit, [before July 1] in the manner
29	29	provided by law for official action by the body, may adopt an
30	30	exemption from taxation by the taxing unit of either a percentage of
31	31	the appraised value of an individual's residence homestead or a
32	32	portion, expressed as a dollar amount, of the appraised value of an
33	33	individual's residence homestead, but not both. The exemption must
34	34	be adopted by the governing body before July 1 of the tax year in
35	35	which the exemption applies. If the governing body adopts a
36	36	percentage exemption and the percentage set by the body [taxing
37	37	unit] produces an exemption in a tax year of less than $5,000 when
38	38	applied to a particular residence homestead, the individual is
39	39	entitled to an exemption of $5,000 of the appraised value. A [The]
40	40	percentage exemption adopted by the governing body [taxing unit]
41	41	may not exceed 20 percent. If the governing body adopts an
42	42	exemption of a portion, expressed as a dollar amount, of the
43	43	appraised value of a residence homestead, the amount of the
44	44	exemption in a tax year may not be less than $5,000 or more than
45	45	$100,000. An individual is entitled to an exemption adopted under
46	46	this subsection in addition to any other exemptions provided by
47	47	this section.
48	48	SECTION 4. The heading to Subchapter C, Chapter 22, Tax
49	49	Code, is amended to read as follows:
50	50	SUBCHAPTER C. [OTHER] REPORTS OF POLITICAL SUBDIVISION ACTIONS
51	51	SECTION 5. Chapter 22, Tax Code, is amended by adding
52	52	Subchapter D to read as follows:
53	53	SUBCHAPTER D. REPORT OF SALES PRICE
54	54	Sec. 22.61. ELECTION TO AUTHORIZE REQUIRED DISCLOSURE OF
55	55	SALES PRICE. (a) The commissioners court of a county may call an
56	56	election to permit the voters of the county to determine whether a
57	57	person must disclose the sales price of real property in the manner
58	58	provided by this subchapter.
59	59	(b) The commissioners court must order that an election
60	60	authorized by this section be held in the county on the first
61	61	November uniform election date prescribed by Section 41.001,
62	62	Election Code, that allows sufficient time to comply with other
63	63	requirements of law.
64	64	(c) If a majority of the votes cast at the election favor the
65	65	establishment of mandatory sales price disclosure for the sale of
66	66	real property, the provisions of this subchapter apply to sales of
67	67	real property in the county beginning with real property sold
68	68	during the tax year following the year in which the election is
69	69	held.
70	70	Sec. 22.62. SALES PRICE DISCLOSURE REPORT. (a) Except as
71	71	provided by Subsection (b), not later than the 10th day after the
72	72	date the deed is recorded in the county real property records, the
73	73	purchaser of real property under a recorded deed conveying an
74	74	interest in the real property shall file a sales price disclosure
75	75	report with the chief appraiser of the appraisal district
76	76	established for the county in which the property is located.
77	77	(b) This section does not apply to a sale or other transfer
78	78	of real property if:
79	79	(1) the sale or other transfer is made:
80	80	(A) under a court order;
81	81	(B) to or from a trustee in bankruptcy;
82	82	(C) under a power of sale under a deed of trust or
83	83	other encumbrance secured by the property;
84	84	(D) by a deed in lieu of foreclosure;
85	85	(E) by one co-owner to one or more other
86	86	co-owners;
87	87	(F) to a spouse or to a person or persons in the
88	88	first degree of lineal consanguinity of one or more of the sellers
89	89	or grantors;
90	90	(G) to or from a governmental entity;
91	91	(H) through the use of eminent domain; or
92	92	(I) to a utility company and the real property is
93	93	an easement, license, or right-of-way;
94	94	(2) the transaction represents:
95	95	(A) a transfer of title pursuant to a merger or
96	96	combination of corporations, partnerships, limited liability
97	97	companies, or other entities under common control; or
98	98	(B) a transfer among entities under common
99	99	control:
100	100	(i) as a contribution to, or a dividend or
101	101	distribution of, capital for no consideration or nominal
102	102	consideration; or
103	103	(ii) in sole consideration for canceling or
104	104	surrendering an interest in a corporation, partnership, limited
105	105	liability company, or other entity; or
106	106	(3) the real property:
107	107	(A) may qualify as a residence homestead as
108	108	defined by Section 11.13;
109	109	(B) is a severed mineral interest;
110	110	(C) is a timeshare interest in real property; or
111	111	(D) has been sold or acquired for $250,000 or
112	112	less.
113	113	(c) A sales price disclosure report must be signed by the
114	114	purchaser of the real property described in the report.
115	115	Sec. 22.63. REPORT FORM. (a) The purchaser shall disclose
116	116	in the report:
117	117	(1) the sales price of the real property; and
118	118	(2) the purchaser's name and mailing address.
119	119	(b) The purchaser may disclose in the report:
120	120	(1) the method used to finance the sales price, such as
121	121	a cash sale, cash and third-party financing, cash and seller
122	122	financing, or another method;
123	123	(2) whether the sale involved property other than real
124	124	property and the other type of property, whether tangible or
125	125	intangible, involved in the sale, and, if so, the portion of the
126	126	sales price allocated among real property, tangible personal
127	127	property used for the production of income, and intangibles;
128	128	(3) whether the sale involved property located in more
129	129	than one county, and, if so, the portion of the sales price or other
130	130	consideration allocated to the portion of the property located in
131	131	each county;
132	132	(4) whether the sale was part of a combined sale of
133	133	real property investments, and, if so, the portion of the combined
134	134	sales price allocated to the real property reported under
135	135	Subsection (a);
136	136	(5) whether the sale involved a tax exchange under
137	137	Section 1031, Internal Revenue Code of 1986;
138	138	(6) whether the sale involved the sale of an entire
139	139	business or business unit; and
140	140	(7) a description of any unusual or extraordinary
141	141	terms of the sale or transfer that affected the amount of the sales
142	142	price.
143	143	(c) The comptroller shall prepare and make available sales
144	144	price disclosure report forms that conform to the requirements of
145	145	this section.
146	146	Sec. 22.64. FILING AND RECEIPT OF REPORT. (a) A purchaser
147	147	may file a sales price disclosure report with a chief appraiser by
148	148	mail, hand delivery, or, if permitted by the chief appraiser,
149	149	electronic mail or other electronic means.
150	150	(b) On receipt of the completed sales price disclosure
151	151	report, the chief appraiser shall provide to the purchaser a
152	152	written acknowledgement that the report has been received. If the
153	153	acknowledgement of receipt is mailed, the chief appraiser shall
154	154	mail it to the purchaser at the address provided in the report.
155	155	Sec. 22.65. PREPARATION OF REPORT; IMMUNITY FROM LIABILITY.
156	156	(a) A sales price disclosure report must be prepared by the
157	157	purchaser of the property described in the report or by another
158	158	person on behalf of the purchaser.
159	159	(b) A person who prepares a sales price disclosure report on
160	160	behalf of a purchaser of the property described in the report is not
161	161	liable to any person for preparing the report or for any
162	162	unintentional error or omission in the report.
163	163	Sec. 22.66. ACTION TO COMPEL COMPLIANCE. The chief
164	164	appraiser may bring an action for an injunction to compel a person
165	165	to comply with the requirements of this subchapter. If the court
166	166	finds that this subchapter applies and that the person has failed to
167	167	fully comply with its requirements, the court:
168	168	(1) shall order the person to comply; and
169	169	(2) may assess costs and reasonable attorney's fees
170	170	against the person.
171	171	Sec. 22.67. PUBLIC INFORMATION. A sales price disclosure
172	172	report filed with the chief appraiser under this subchapter is
173	173	public information under Chapter 552, Government Code.
174	174	SECTION 6. Section 23.013, Tax Code, is amended by adding
175	175	Subsection (e) to read as follows:
176	176	(e) The chief appraiser may use information contained in a
177	177	sales price disclosure report filed under Subchapter D, Chapter 22,
178	178	in determining the market value of real property but may not
179	179	increase the market value of the real property described in the
180	180	report solely on the basis of the information contained in the
181	181	report.
182	182	SECTION 7. Subchapter B, Chapter 23, Tax Code, is amended by
183	183	adding Section 23.27 to read as follows:
184	184	Sec. 23.27. ADJUSTMENTS FOR UNIQUE PROPERTIES. The
185	185	comptroller by rule shall establish standards for the development
186	186	and calibration of adjustments to be used in determining the
187	187	appraised value for industrial, petrochemical refining and
188	188	processing, and utility properties and other unique properties.
189	189	SECTION 8. Section 31.01(c), Tax Code, is amended to read as
190	190	follows:
191	191	(c) The tax bill or a separate statement accompanying the
192	192	tax bill shall:
193	193	(1) identify the property subject to the tax;
194	194	(2) state the appraised value, assessed value, and
195	195	taxable value of the property;
196	196	(3) if the property is land appraised as provided by
197	197	Subchapter C, D, E, or H, Chapter 23, state the market value and the
198	198	taxable value for purposes of deferred or additional taxation as
199	199	provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
200	200	(4) state the assessment ratio for the taxing unit;
201	201	(5) state the type and amount of any partial exemption
202	202	applicable to the property, indicating whether it applies to
203	203	appraised or assessed value;
204	204	(6) state the total tax rate for the taxing unit;
205	205	(7) state the amount of tax due, the due date, and the
206	206	delinquency date;
207	207	(8) explain the payment option and discounts provided
208	208	by Sections 31.03 and 31.05, if available to the taxing unit's
209	209	taxpayers, and state the date on which each of the discount periods
210	210	provided by Section 31.05 concludes, if the discounts are
211	211	available;
212	212	(9) state the rates of penalty and interest imposed
213	213	for delinquent payment of the tax;
214	214	(10) include the name and telephone number of the
215	215	assessor for the taxing unit and, if different, of the collector for
216	216	the taxing unit;
217	217	(11) for real property, state for the current tax year
218	218	and each of the preceding five tax years:
219	219	(A) the appraised value and taxable value of the
220	220	property;
221	221	(B) the total tax rate for the taxing unit;
222	222	(C) the amount of taxes imposed on the property
223	223	by the taxing unit; and
224	224	(D) the difference, expressed as a percent
225	225	increase or decrease, as applicable, in the amount of taxes imposed
226	226	on the property by the taxing unit compared to the amount imposed
227	227	for the preceding tax year; [and]
228	228	(12) for real property, state the differences,
229	229	expressed as a percent increase or decrease, as applicable, in the
230	230	following for the current tax year as compared to the fifth tax year
231	231	before that tax year:
232	232	(A) the appraised value and taxable value of the
233	233	property;
234	234	(B) the total tax rate for the taxing unit; and
235	235	(C) the amount of taxes imposed on the property
236	236	by the taxing unit; and
237	237	(13) for real property, in a section entitled "average
238	238	homestead exemption cost":
239	239	(A) state the total dollar amount of tax
240	240	exemptions for residence homesteads granted by the taxing unit
241	241	under Sections 11.13(c), 11.131, 11.132, 11.133, 11.134, 11.22, and
242	242	11.35 that were granted by the taxing unit for the preceding tax
243	243	year; and
244	244	(B) state the amount of additional taxes paid by
245	245	the owner of a residence homestead that did not receive any of the
246	246	exemptions listed in Paragraph (A), expressed as $____ per $100
247	247	valuation, compared to the amount per $100 valuation each resident
248	248	homestead would have paid if those exemptions had not been granted.
249	249	SECTION 9. Section 41.43, Tax Code, is amended by amending
250	250	Subsection (b) and adding Subsection (e) to read as follows:
251	251	(b) A protest on the ground of unequal appraisal of property
252	252	shall be determined in favor of the protesting party unless the
253	253	appraisal district establishes that:
254	254	(1) the appraisal ratio of the property is equal to or
255	255	less than the median level of appraisal of a reasonable and
256	256	representative sample of other properties in the appraisal
257	257	district;
258	258	(2) the appraisal ratio of the property is equal to or
259	259	less than the median level of appraisal of a sample of properties in
260	260	the appraisal district consisting of a reasonable number of other
261	261	properties similarly situated to, or of the same general kind or
262	262	character as, the property subject to the protest; [or]
263	263	(3) the appraised value of the property is equal to or
264	264	less than the median appraised value of a reasonable number of
265	265	comparable properties appropriately adjusted and:
266	266	(A) the property qualified as a residence
267	267	homestead under Section 11.13 for the relevant tax year; or
268	268	(B) the appraised value of the property is
269	269	$250,000 or less; or
270	270	(4) the appraisal ratio of the property is equal to or
271	271	less than the median level of appraisal of a reasonable and
272	272	representative sample of comparable properties in the appraisal
273	273	district.
274	274	(e) For the purposes of Subsections (b)(3) and (4), a person
275	275	making a determination that property is comparable to another
276	276	property must, in addition to the requirement of Section 23.01(f),
277	277	base the determination on the similarity of the properties with
278	278	regard to the characteristics described by Section 23.013(d).
279	279	SECTION 10. Section 42.26, Tax Code, is amended by amending
280	280	Subsections (a) and (b) and adding Subsection (e) to read as
281	281	follows:
282	282	(a) The district court shall grant relief on the ground that
283	283	a property is appraised unequally if:
284	284	(1) the appraisal ratio of the property exceeds by at
285	285	least 10 percent the median level of appraisal of a reasonable and
286	286	representative sample of other properties in the appraisal
287	287	district;
288	288	(2) the appraisal ratio of the property exceeds by at
289	289	least 10 percent the median level of appraisal of a sample of
290	290	properties in the appraisal district consisting of a reasonable
291	291	number of other properties similarly situated to, or of the same
292	292	general kind or character as, the property subject to the appeal;
293	293	[or]
294	294	(3) the appraised value of the property exceeds the
295	295	median appraised value of a reasonable number of comparable
296	296	properties appropriately adjusted and:
297	297	(A) the property qualified as a residence
298	298	homestead under Section 11.13 for the relevant tax year; or
299	299	(B) the appraised value of the property as
300	300	determined by the order of the appraisal review board is $250,000 or
301	301	less; or
302	302	(4) the appraisal ratio of the property exceeds by at
303	303	least 10 percent the median level of appraisal of a reasonable and
304	304	representative sample of comparable properties in the appraisal
305	305	district.
306	306	(b) If a property owner is entitled to relief under
307	307	Subsection (a)(1), (2), or (4), the court shall order the
308	308	property's appraised value changed to the value as calculated on
309	309	the basis of the median level of appraisal according to Subsection
310	310	(a)(1), (2), or (4), as applicable. [If a property owner is
311	311	entitled to relief under Subsection (a)(2), the court shall order
312	312	the property's appraised value changed to the value calculated on
313	313	the basis of the median level of appraisal according to Subsection
314	314	(a)(2).] If a property owner is entitled to relief under Subsection
315	315	(a)(3), the court shall order the property's appraised value
316	316	changed to the value calculated on the basis of the median appraised
317	317	value according to Subsection (a)(3). If a property owner is
318	318	entitled to relief under more than one subdivision of Subsection
319	319	(a), the court shall order the property's appraised value changed
320	320	to the value that in the judgment of the court best reflects the
321	321	median level of appraisal [results in the lowest appraised value].
322	322	The court shall determine each applicable median level of appraisal
323	323	or median appraised value according to law, and is not required to
324	324	adopt the median level of appraisal or median appraised value
325	325	proposed by a party to the appeal. The court may not limit or deny
326	326	relief to the property owner entitled to relief under a subdivision
327	327	of Subsection (a) because the appraised value determined according
328	328	to another subdivision of Subsection (a) results in a higher
329	329	appraised value.
330	330	(e) For the purposes of Subsections (a)(3) and (4), a person
331	331	making a determination that property is comparable to another
332	332	property must, in addition to the requirement of Section 23.01(f),
333	333	base the determination on the similarity of the properties with
334	334	regard to the characteristics described by Section 23.013(d).
335	335	SECTION 11. Section 320.001, Government Code, is amended to
336	336	read as follows:
337	337	Sec. 320.001. DEFINITION. In this chapter, "mandate" means
338	338	a requirement made by a statute enacted by the legislature or by
339	339	rule of a state agency on or after January 1, 1997, that requires a
340	340	political subdivision to establish, expand, or modify an activity
341	341	in a way that requires the expenditure of revenue by the political
342	342	subdivision that would not have been required in the absence of the
343	343	statutory provision or rule.
344	344	SECTION 12. Chapter 320, Government Code, is amended by
345	345	adding Section 320.002 to read as follows:
346	346	Sec. 320.002. EFFECT OF MANDATE. (a) A political
347	347	subdivision is not required to pay for a mandate unless:
348	348	(1) the political subdivision determines that it can
349	349	do so without raising its ad valorem tax rate to pay for the
350	350	mandate; or
351	351	(2) the legislature appropriates or otherwise
352	352	provides for payment or reimbursement to the political subdivision
353	353	of the costs that will be incurred by the political subdivision in
354	354	complying with the mandate.
355	355	(b) Subsection (a) does not apply to a mandate:
356	356	(1) imposed by the legislature or a state agency to
357	357	comply with a requirement of the constitution of this state,
358	358	federal law, or a court order;
359	359	(2) approved by the voters of this state at a general
360	360	election; or
361	361	(3) for which the comptroller estimates the aggregate
362	362	cost to all political subdivisions to comply with the mandate will
363	363	be less than $1 million per state fiscal year.
364	364	SECTION 13. Section 6.30(c), Tax Code, as amended by this
365	365	Act, applies only to a contract for the collection of delinquent ad
366	366	valorem taxes that is entered into on or after January 1, 2022.
367	367	SECTION 14. Section 11.13(n), Tax Code, as amended by this
368	368	Act, applies only to ad valorem taxes imposed for a tax year that
369	369	begins on or after January 1, 2022.
370	370	SECTION 15. Subchapter D, Chapter 22, Tax Code, as added by
371	371	this Act, applies only to a sale of real property that occurs on or
372	372	after January 1, 2023.
373	373	SECTION 16. As soon as practicable after September 1, 2021,
374	374	but not later than June 1, 2022, the comptroller of public accounts
375	375	shall prepare and make available the sales price disclosure report
376	376	forms prescribed by Section 22.63, Tax Code, as added by this Act.
377	377	SECTION 17. Not later than January 1, 2022, the comptroller
378	378	of public accounts shall establish the standards required by
379	379	Section 23.27, Tax Code, as added by this Act.
380	380	SECTION 18. Section 31.01(c), Tax Code, as amended by this
381	381	Act, applies only to a bill for ad valorem taxes imposed for a tax
382	382	year beginning on or after January 1, 2022.
383	383	SECTION 19. Section 41.43, Tax Code, as amended by this Act,
384	384	applies only to a protest under Chapter 41, Tax Code, for which a
385	385	notice of protest is filed on or after January 1, 2022.
386	386	SECTION 20. Section 42.26, Tax Code, as amended by this Act,
387	387	applies only to an appeal under Chapter 42, Tax Code, for which a
388	388	petition for review is filed on or after January 1, 2022. An appeal
389	389	under Chapter 42, Tax Code, for which a petition for review was
390	390	filed before January 1, 2022, is governed by the law in effect on
391	391	the date the petition for review was filed, and the former law is
392	392	continued in effect for that purpose.
393	393	SECTION 21. (a) Except as provided by Subsections (b) and
394	394	(c) of this section, this Act takes effect January 1, 2022.
395	395	(b) Section 11.13(n), Tax Code, as amended by this Act,
396	396	takes effect January 1, 2022, but only if the constitutional
397	397	amendment proposed by the 87th Legislature, Regular Session, 2021,
398	398	authorizing the governing body of a political subdivision to adopt
399	399	a residence homestead exemption from ad valorem taxation of either
400	400	a percentage or a portion, expressed as a dollar amount, of the
401	401	market value of an individual's residence homestead is approved by
402	402	the voters. If that amendment is not approved by the voters, this
403	403	Act has no effect.
404	404	(c) Subchapter D, Chapter 22, Tax Code, as added by this
405	405	Act, takes effect September 1, 2021.