By: Talarico H.B. No. 3939
A BILL TO BE ENTITLED
AN ACT
relating to a requirement that a purchaser of commercial real
property disclose the sales price of the property to the appraisal
district and to the use of that information by the appraisal
district; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter C, Chapter 22, Tax
Code, is amended to read as follows:
SUBCHAPTER C. [OTHER] REPORTS OF POLITICAL SUBDIVISION ACTIONS
SECTION 2. Chapter 22, Tax Code, is amended by adding
Subchapter D to read as follows:
SUBCHAPTER D. REPORT OF SALES PRICE
Sec. 22.61. DEFINITION. In this subchapter, "commercial
real property" means real property that is held or used for the
production of income.
Sec. 22.62. SALES PRICE DISCLOSURE REPORT. (a) Except as
provided by Subsection (b), not later than the 10th day after the
date the deed is recorded in the county real property records, the
purchaser or grantee of commercial real property under a recorded
deed conveying an interest in the real property shall file a sales
price disclosure report with the chief appraiser of the appraisal
district established for the county in which the property is
located.
(b) This section does not apply to a sale or other transfer
of commercial real property if:
(1) the sale or other transfer is made:
(A) under a court order;
(B) to or from a trustee in bankruptcy;
(C) under a power of sale under a deed of trust or
other encumbrance secured by the property;
(D) by a deed in lieu of foreclosure;
(E) by one co-owner to one or more other
co-owners;
(F) to a spouse or to a person or persons in the
first degree of lineal consanguinity of one or more of the sellers
or grantors;
(G) to or from a governmental entity;
(H) through the use of eminent domain; or
(I) to a utility company and the real property is
an easement, license, or right-of-way; or
(2) the real property is a severed mineral interest.
(c) A sales price disclosure report must be signed by the
purchaser or grantee of the commercial real property described in
the report.
Sec. 22.63. REPORT FORM. (a) A sales price disclosure
report filed under this subchapter must read as follows, with the
appropriate information included in the blanks:
SALES PRICE DISCLOSURE REPORT
Section 22.62, Tax Code, requires a purchaser or grantee of
commercial real property under a deed to prepare this report, sign
it, and file it with the chief appraiser of the appraisal district
established for the county in which the property is located not
later than the 10th day after the date the deed is recorded. This
report is not required to be filed if the sale or transfer is made:
(1) under a court order; (2) to or from a trustee in bankruptcy; (3)
under a deed of trust or other encumbrance secured by the property;
(4) by a deed in lieu of foreclosure; (5) between co-owners; (6)
between spouses or between family members in the first degree of
lineal consanguinity; (7) to or from a governmental entity; (8)
through the use of eminent domain; or (9) to a utility company and
the property is an easement, license, or right-of-way. In addition,
this report is not required to be filed if the property being sold
or transferred is a severed mineral interest. Knowingly making a
false statement on this form is grounds for prosecution of a Class A
misdemeanor or a state jail felony under Section 37.10, Penal Code.
The chief appraiser may not use the information in this form as the
sole basis on which to increase the market value of the property.
Seller's or grantor's name: _________________________
Purchaser's or grantee's name: _______________________
Purchaser's or grantee's address: ____________________
Property description (as stated in deed): ____________
Sales price of or other consideration paid for the property:
______________
The method used to finance the sales price or other
consideration was: □ none (cash sale) □ cash and third-party
financing □ cash and seller financing □ exchange of other property □
other, describe: ______________________________
Describe any unusual or extraordinary terms of the sale or
transfer that affected the amount of the sales price or other
consideration: _______________________
Provide any additional information relevant to the sale or
transfer, including:
(1) whether the sale or transfer involved property
other than real property and the type of property, whether tangible
or intangible, involved in the sale or transfer;
(2) whether the sale or transfer involved property
located in more than one county and, if so, the portion of the sales
price or other consideration allocated to the portion of the
property located in each county;
(3) in the case of a sale, whether the sale is the sale
of an entire business or business unit; and
(4) any other facts or circumstances that affected the
sales price or other consideration (optional):
______________________
To the best of my knowledge, this statement is true and
accurate.
Purchaser's or grantee's signature: ______________________
Date: ____________________
Return this form to: __________________________.
(b) The appraisal district shall include at the end of the
form instructions for the filing of the form by mail, hand delivery,
or, if permitted by the chief appraiser, electronic mail or other
electronic means.
(c) Each appraisal district shall prepare and make
available sales price disclosure report forms that conform to the
requirements of this section. Except for instructions for the
filing of the form, no additional information may be required to be
included in a sales price disclosure report form.
Sec. 22.64. FILING AND RECEIPT OF REPORT. (a) A purchaser
or grantee may file a sales price disclosure report with a chief
appraiser by mail, hand delivery, or, if permitted by the chief
appraiser, electronic mail or other electronic means.
(b) On receipt of the completed sales price disclosure
report, the chief appraiser shall provide to the purchaser or
grantee a written acknowledgement that the report has been
received. If the acknowledgement of receipt is mailed, the chief
appraiser shall mail it to the purchaser or grantee at the address
provided in the report.
Sec. 22.65. PREPARATION OF REPORT; IMMUNITY FROM LIABILITY.
(a) A sales price disclosure report must be prepared by the
purchaser or grantee of the property described in the report or by
another person on behalf of the purchaser or grantee.
(b) A person who prepares a sales price disclosure report on
behalf of a purchaser or grantee of the property described in the
report is not liable to any person for preparing the report or for
any unintentional error or omission in the report.
Sec. 22.66. ACTION TO COMPEL COMPLIANCE. The chief
appraiser may bring an action for an injunction to compel a person
to comply with the requirements of this subchapter. If the court
finds that this subchapter applies and that the person has failed to
fully comply with its requirements, the court:
(1) shall order the person to comply; and
(2) may assess costs and reasonable attorney's fees
against the person.
Sec. 22.67. CONFIDENTIAL INFORMATION. (a) A sales price
disclosure report filed with a chief appraiser under this
subchapter is confidential and not open to public inspection. The
report and the information it contains may not be disclosed to
another person other than an employee of the appraisal district who
appraises property, except as provided by Subsection (b).
(b) Information that is confidential under Subsection (a)
may be disclosed:
(1) in a judicial or administrative proceeding under a
lawful subpoena;
(2) to a purchaser, grantee, seller, or grantor named
in the report or in the deed to which the report applies or to a
representative of the purchaser, grantee, seller, or grantor under
a written authorization signed by the purchaser, grantee, seller,
or grantor;
(3) to the comptroller or to an assessor for a taxing
unit in which the property described in the report is located;
(4) in a judicial or administrative proceeding related
to real property taxation:
(A) to which the purchaser, grantee, seller, or
grantor is a party;
(B) to which an owner of the property described
in the report is a party; or
(C) by the appraisal district for the purpose of
establishing a value of the property or of providing evidence of
comparable sales to appraise another property;
(5) for statistical purposes if the information is
provided in a form that does not identify a specific property or
specific purchaser, grantee, seller, or grantor;
(6) if and to the extent that the information is
required to be included in a public document or record that the
appraisal office is required to prepare or maintain; or
(7) to a taxing unit or its legal representative that
is engaged in the collection of delinquent taxes on the property
described in the report.
(c) Information that is disclosed under this section does
not lose its confidential character.
(d) A person, other than the purchaser, grantee, seller, or
grantor, who obtains a sales price disclosure report or information
from the report commits an offense if the person:
(1) discloses the report or information to a person
who is not authorized under this section to receive the report or
information; or
(2) permits the person to whom the report or
information is disclosed to view, read, or copy the report or
information.
(e) An offense under Subsection (d) is a Class B
misdemeanor.
(f) It is a defense to prosecution under Subsection (d) that
the person who received information contained in the sales price
disclosure report obtained the information from:
(1) a purchaser, grantee, seller, or grantor of the
property described in the report; or
(2) a document or record other than the sales price
disclosure report.
SECTION 3. Section 23.013, Tax Code, is amended by adding
Subsection (e) to read as follows:
(e) The chief appraiser may use information contained in a
sales price disclosure report filed under Subchapter D, Chapter 22,
in determining the market value of commercial real property but may
not increase the market value of the real property described in the
report solely on the basis of the information contained in the
report.
SECTION 4. (a) As soon as practicable after the effective
date of this section, but not later than January 1, 2022, each
appraisal district shall prepare and make available sales price
disclosure report forms as provided by Section 22.63, Tax Code, as
added by this Act.
(b) This section takes effect September 1, 2021.
SECTION 5. This Act applies only to a sale or other transfer
of commercial real property that occurs on or after January 1, 2020.
SECTION 6. Except as otherwise provided by this Act, this
Act takes effect January 1, 2022.