Texas 2021 - 87th Regular

Texas House Bill HB3939 Compare Versions

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

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1	1	By: Talarico H.B. No. 3939
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to a requirement that a purchaser of commercial real
7	7	property disclose the sales price of the property to the appraisal
8	8	district and to the use of that information by the appraisal
9	9	district; creating a criminal offense.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. The heading to Subchapter C, Chapter 22, Tax
12	12	Code, is amended to read as follows:
13	13	SUBCHAPTER C. [OTHER] REPORTS OF POLITICAL SUBDIVISION ACTIONS
14	14	SECTION 2. Chapter 22, Tax Code, is amended by adding
15	15	Subchapter D to read as follows:
16	16	SUBCHAPTER D. REPORT OF SALES PRICE
17	17	Sec. 22.61. DEFINITION. In this subchapter, "commercial
18	18	real property" means real property that is held or used for the
19	19	production of income.
20	20	Sec. 22.62. SALES PRICE DISCLOSURE REPORT. (a) Except as
21	21	provided by Subsection (b), not later than the 10th day after the
22	22	date the deed is recorded in the county real property records, the
23	23	purchaser or grantee of commercial real property under a recorded
24	24	deed conveying an interest in the real property shall file a sales
25	25	price disclosure report with the chief appraiser of the appraisal
26	26	district established for the county in which the property is
27	27	located.
28	28	(b) This section does not apply to a sale or other transfer
29	29	of commercial real property if:
30	30	(1) the sale or other transfer is made:
31	31	(A) under a court order;
32	32	(B) to or from a trustee in bankruptcy;
33	33	(C) under a power of sale under a deed of trust or
34	34	other encumbrance secured by the property;
35	35	(D) by a deed in lieu of foreclosure;
36	36	(E) by one co-owner to one or more other
37	37	co-owners;
38	38	(F) to a spouse or to a person or persons in the
39	39	first degree of lineal consanguinity of one or more of the sellers
40	40	or grantors;
41	41	(G) to or from a governmental entity;
42	42	(H) through the use of eminent domain; or
43	43	(I) to a utility company and the real property is
44	44	an easement, license, or right-of-way; or
45	45	(2) the real property is a severed mineral interest.
46	46	(c) A sales price disclosure report must be signed by the
47	47	purchaser or grantee of the commercial real property described in
48	48	the report.
49	49	Sec. 22.63. REPORT FORM. (a) A sales price disclosure
50	50	report filed under this subchapter must read as follows, with the
51	51	appropriate information included in the blanks:
52	52	SALES PRICE DISCLOSURE REPORT
53	53	Section 22.62, Tax Code, requires a purchaser or grantee of
54	54	commercial real property under a deed to prepare this report, sign
55	55	it, and file it with the chief appraiser of the appraisal district
56	56	established for the county in which the property is located not
57	57	later than the 10th day after the date the deed is recorded. This
58	58	report is not required to be filed if the sale or transfer is made:
59	59	(1) under a court order; (2) to or from a trustee in bankruptcy; (3)
60	60	under a deed of trust or other encumbrance secured by the property;
61	61	(4) by a deed in lieu of foreclosure; (5) between co-owners; (6)
62	62	between spouses or between family members in the first degree of
63	63	lineal consanguinity; (7) to or from a governmental entity; (8)
64	64	through the use of eminent domain; or (9) to a utility company and
65	65	the property is an easement, license, or right-of-way. In addition,
66	66	this report is not required to be filed if the property being sold
67	67	or transferred is a severed mineral interest. Knowingly making a
68	68	false statement on this form is grounds for prosecution of a Class A
69	69	misdemeanor or a state jail felony under Section 37.10, Penal Code.
70	70	The chief appraiser may not use the information in this form as the
71	71	sole basis on which to increase the market value of the property.
72	72	Seller's or grantor's name: _________________________
73	73	Purchaser's or grantee's name: _______________________
74	74	Purchaser's or grantee's address: ____________________
75	75	Property description (as stated in deed): ____________
76	76	Sales price of or other consideration paid for the property:
77	77	______________
78	78	The method used to finance the sales price or other
79	79	consideration was: □ none (cash sale) □ cash and third-party
80	80	financing □ cash and seller financing □ exchange of other property □
81	81	other, describe: ______________________________
82	82	Describe any unusual or extraordinary terms of the sale or
83	83	transfer that affected the amount of the sales price or other
84	84	consideration: _______________________
85	85	Provide any additional information relevant to the sale or
86	86	transfer, including:
87	87	(1) whether the sale or transfer involved property
88	88	other than real property and the type of property, whether tangible
89	89	or intangible, involved in the sale or transfer;
90	90	(2) whether the sale or transfer involved property
91	91	located in more than one county and, if so, the portion of the sales
92	92	price or other consideration allocated to the portion of the
93	93	property located in each county;
94	94	(3) in the case of a sale, whether the sale is the sale
95	95	of an entire business or business unit; and
96	96	(4) any other facts or circumstances that affected the
97	97	sales price or other consideration (optional):
98	98	______________________
99	99	To the best of my knowledge, this statement is true and
100	100	accurate.
101	101	Purchaser's or grantee's signature: ______________________
102	102	Date: ____________________
103	103	Return this form to: __________________________.
104	104	(b) The appraisal district shall include at the end of the
105	105	form instructions for the filing of the form by mail, hand delivery,
106	106	or, if permitted by the chief appraiser, electronic mail or other
107	107	electronic means.
108	108	(c) Each appraisal district shall prepare and make
109	109	available sales price disclosure report forms that conform to the
110	110	requirements of this section. Except for instructions for the
111	111	filing of the form, no additional information may be required to be
112	112	included in a sales price disclosure report form.
113	113	Sec. 22.64. FILING AND RECEIPT OF REPORT. (a) A purchaser
114	114	or grantee may file a sales price disclosure report with a chief
115	115	appraiser by mail, hand delivery, or, if permitted by the chief
116	116	appraiser, electronic mail or other electronic means.
117	117	(b) On receipt of the completed sales price disclosure
118	118	report, the chief appraiser shall provide to the purchaser or
119	119	grantee a written acknowledgement that the report has been
120	120	received. If the acknowledgement of receipt is mailed, the chief
121	121	appraiser shall mail it to the purchaser or grantee at the address
122	122	provided in the report.
123	123	Sec. 22.65. PREPARATION OF REPORT; IMMUNITY FROM LIABILITY.
124	124	(a) A sales price disclosure report must be prepared by the
125	125	purchaser or grantee of the property described in the report or by
126	126	another person on behalf of the purchaser or grantee.
127	127	(b) A person who prepares a sales price disclosure report on
128	128	behalf of a purchaser or grantee of the property described in the
129	129	report is not liable to any person for preparing the report or for
130	130	any unintentional error or omission in the report.
131	131	Sec. 22.66. ACTION TO COMPEL COMPLIANCE. The chief
132	132	appraiser may bring an action for an injunction to compel a person
133	133	to comply with the requirements of this subchapter. If the court
134	134	finds that this subchapter applies and that the person has failed to
135	135	fully comply with its requirements, the court:
136	136	(1) shall order the person to comply; and
137	137	(2) may assess costs and reasonable attorney's fees
138	138	against the person.
139	139	Sec. 22.67. CONFIDENTIAL INFORMATION. (a) A sales price
140	140	disclosure report filed with a chief appraiser under this
141	141	subchapter is confidential and not open to public inspection. The
142	142	report and the information it contains may not be disclosed to
143	143	another person other than an employee of the appraisal district who
144	144	appraises property, except as provided by Subsection (b).
145	145	(b) Information that is confidential under Subsection (a)
146	146	may be disclosed:
147	147	(1) in a judicial or administrative proceeding under a
148	148	lawful subpoena;
149	149	(2) to a purchaser, grantee, seller, or grantor named
150	150	in the report or in the deed to which the report applies or to a
151	151	representative of the purchaser, grantee, seller, or grantor under
152	152	a written authorization signed by the purchaser, grantee, seller,
153	153	or grantor;
154	154	(3) to the comptroller or to an assessor for a taxing
155	155	unit in which the property described in the report is located;
156	156	(4) in a judicial or administrative proceeding related
157	157	to real property taxation:
158	158	(A) to which the purchaser, grantee, seller, or
159	159	grantor is a party;
160	160	(B) to which an owner of the property described
161	161	in the report is a party; or
162	162	(C) by the appraisal district for the purpose of
163	163	establishing a value of the property or of providing evidence of
164	164	comparable sales to appraise another property;
165	165	(5) for statistical purposes if the information is
166	166	provided in a form that does not identify a specific property or
167	167	specific purchaser, grantee, seller, or grantor;
168	168	(6) if and to the extent that the information is
169	169	required to be included in a public document or record that the
170	170	appraisal office is required to prepare or maintain; or
171	171	(7) to a taxing unit or its legal representative that
172	172	is engaged in the collection of delinquent taxes on the property
173	173	described in the report.
174	174	(c) Information that is disclosed under this section does
175	175	not lose its confidential character.
176	176	(d) A person, other than the purchaser, grantee, seller, or
177	177	grantor, who obtains a sales price disclosure report or information
178	178	from the report commits an offense if the person:
179	179	(1) discloses the report or information to a person
180	180	who is not authorized under this section to receive the report or
181	181	information; or
182	182	(2) permits the person to whom the report or
183	183	information is disclosed to view, read, or copy the report or
184	184	information.
185	185	(e) An offense under Subsection (d) is a Class B
186	186	misdemeanor.
187	187	(f) It is a defense to prosecution under Subsection (d) that
188	188	the person who received information contained in the sales price
189	189	disclosure report obtained the information from:
190	190	(1) a purchaser, grantee, seller, or grantor of the
191	191	property described in the report; or
192	192	(2) a document or record other than the sales price
193	193	disclosure report.
194	194	SECTION 3. Section 23.013, Tax Code, is amended by adding
195	195	Subsection (e) to read as follows:
196	196	(e) The chief appraiser may use information contained in a
197	197	sales price disclosure report filed under Subchapter D, Chapter 22,
198	198	in determining the market value of commercial real property but may
199	199	not increase the market value of the real property described in the
200	200	report solely on the basis of the information contained in the
201	201	report.
202	202	SECTION 4. (a) As soon as practicable after the effective
203	203	date of this section, but not later than January 1, 2022, each
204	204	appraisal district shall prepare and make available sales price
205	205	disclosure report forms as provided by Section 22.63, Tax Code, as
206	206	added by this Act.
207	207	(b) This section takes effect September 1, 2021.
208	208	SECTION 5. This Act applies only to a sale or other transfer
209	209	of commercial real property that occurs on or after January 1, 2020.
210	210	SECTION 6. Except as otherwise provided by this Act, this
211	211	Act takes effect January 1, 2022.