Texas 2021 - 87th Regular

Texas House Bill HB988 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 988
	1	+	By: Shine, et al. (Senate Sponsor - Hancock) H.B. No. 988
	2	+	(In the Senate - Received from the House April 27, 2021;
	3	+	May 3, 2021, read first time and referred to Committee on Local
	4	+	Government; May 21, 2021, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 6, Nays 0;
	6	+	May 21, 2021, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 988 By: Springer
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to ad valorem taxation; creating a criminal offense.
6	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	15		SECTION 1. Section 5.103, Tax Code, is amended by amending
8	16		Subsection (d) and adding Subsection (e) to read as follows:
9	17		(d) An appraisal review board shall incorporate [follow]
10	18		the model hearing procedures prepared by the comptroller when
11	19		adopting the board's [establishing its] procedures for hearings as
12	20		required by Section 41.01(c). An appraisal review board may adopt
13	21		procedures that supplement the model hearing procedures, provided
14	22		that the supplemental procedures do not contradict or circumvent
15	23		the model hearing procedures.
16	24		(e) Each year the comptroller shall review the hearing
17	25		procedures adopted by each appraisal review board to determine
18	26		whether the hearing procedures incorporate the model hearing
19	27		procedures prepared by the comptroller under this section
20	28		[41.66(a)].
21	29		SECTION 2. Section 5.104(l), Tax Code, is amended to read as
22	30		follows:
23	31		(l) The comptroller shall issue an annual report that
24	32		summarizes the information included in the surveys submitted during
25	33		the preceding tax year. The report must also include a summary of
26	34		the comments, complaints, and suggestions forwarded to the
27	35		comptroller during the preceding tax year by taxpayer liaison
28	36		officers under Section 6.052(a), the results of the comptroller's
29	37		review of appraisal review board hearing procedures during the
30	38		preceding tax year under Section 5.103(e), and the results of
31	39		requests for limited binding arbitration filed with the comptroller
32	40		during the preceding tax year under Section 41A.015. The report may
33	41		not disclose the identity of an individual who submitted a survey,
34	42		comment, complaint, suggestion, or request for arbitration.
35	43		SECTION 3. Section 6.03, Tax Code, is amended by amending
36	44		Subsection (k) and adding Subsection (k-1) to read as follows:
37	45		(k) Except as provided by Subsection (k-1), the [The]
38	46		governing body of each taxing unit entitled to vote shall determine
39	47		its vote by resolution and submit it to the chief appraiser before
40	48		December 15. The chief appraiser shall count the votes, declare the
41	49		five candidates who receive the largest cumulative vote totals
42	50		elected, and submit the results before December 31 to the governing
43	51		body of each taxing unit in the district and to the candidates. For
44	52		purposes of determining the number of votes received by the
45	53		candidates, the candidate receiving the most votes of the
46	54		conservation and reclamation districts is considered to have
47	55		received all of the votes cast by conservation and reclamation
48	56		districts and the other candidates are considered not to have
49	57		received any votes of the conservation and reclamation districts.
50	58		The chief appraiser shall resolve a tie vote by any method of
51	59		chance.
52	60		(k-1) This subsection applies only to an appraisal district
53	61		established in a county with a population of 120,000 or more. The
54	62		governing body of each taxing unit entitled to cast at least five
55	63		percent of the total votes must determine its vote by resolution
56	64		adopted at the first or second open meeting of the governing body
57	65		that is held after the date the chief appraiser delivers the ballot
58	66		to the presiding officer of the governing body. The governing body
59	67		must submit its vote to the chief appraiser not later than the third
60	68		day following the date the resolution is adopted.
61	69		SECTION 4. Section 6.052, Tax Code, is amended by amending
62	70		Subsections (a), (b), and (c) and adding Subsection (g) to read as
63	71		follows:
64	72		(a) The board of directors for an appraisal district created
65	73		for a county with a population of more than 120,000 shall appoint a
66	74		taxpayer liaison officer who shall serve at the pleasure of the
67	75		board. The taxpayer liaison officer shall administer the public
68	76		access functions required by Sections 6.04(d), (e), and (f), and is
69	77		responsible for resolving disputes not involving matters that may
70	78		be protested under Section 41.41. In addition, the taxpayer
71	79		liaison officer is responsible for receiving, and compiling a list
72	80		of, comments, complaints, and suggestions filed by the chief
73	81		appraiser, a property owner, or a property owner's agent concerning
74	82		the matters listed in Section 5.103(b) or any other matter related
75	83		to the fairness and efficiency of the appraisal review board
76	84		established for the appraisal district. The taxpayer liaison
77	85		officer shall forward to the comptroller comments, complaints, and
78	86		suggestions filed under this subsection in the form and manner
79	87		prescribed by the comptroller not later than December 31 of each
80	88		year.
81	89		(b) The taxpayer liaison officer shall provide to the public
82	90		information and materials designed to assist property owners in
83	91		understanding the appraisal process, protest procedures, the
84	92		procedure for filing comments, complaints, and suggestions under
85	93		Subsection (a) of this section or a complaint under Section
86	94		6.04(g), and other matters. Information concerning the process for
87	95		submitting comments, complaints, and suggestions to the
88	96		comptroller concerning an appraisal review board shall be provided
89	97		at each protest hearing.
90	98		(c) The taxpayer liaison officer shall report to the board
91	99		at each meeting on the status of all comments, complaints, and
92	100		suggestions filed with the officer under Subsection (a) of this
93	101		section and all complaints filed with the board under Section
94	102		6.04(g).
95	103		(g) Notwithstanding any other provision of this chapter, a
96	104		taxpayer liaison officer does not commit an offense under this
97	105		chapter if the officer communicates with the chief appraiser or
98	106		another employee or agent of the appraisal district, a member of the
99	107		appraisal review board established for the appraisal district, a
100	108		member of the board of directors of the appraisal district, a
101	109		property tax consultant, a property owner, an agent of a property
102	110		owner, or another person if the communication is made in the good
103	111		faith exercise of the officer's statutory duties.
104	112		SECTION 5. Subchapter A, Chapter 6, Tax Code, is amended by
105	113		adding Section 6.155 to read as follows:
106	114		Sec. 6.155. CERTAIN COMMUNICATIONS BY TAXING UNITS
107	115		PROHIBITED; PENALTY. (a) A member of the governing body, officer,
108	116		or employee of a taxing unit commits an offense if the person
109	117		directly or indirectly communicates with the chief appraiser or
110	118		another employee of the appraisal district in which the taxing unit
111	119		participates for the purpose of influencing the value at which
112	120		property in the district is appraised unless the person owns or
113	121		leases the property that is the subject of the communication.
114	122		(b) An offense under this section is a Class A misdemeanor.
115	123		SECTION 6. Section 11.252(d), Tax Code, is amended to read
116	124		as follows:
117	125		(d) In connection with the requirements and procedures
118	126		under Subsection (c), the comptroller by rule shall adopt a form to
119	127		be completed by the lessee of a motor vehicle for which the owner of
120	128		the vehicle may apply for an exemption under Subsection (a). The
121	129		form shall require a lessee who is an individual to provide the
122	130		lessee's name, address, and driver's license or personal
123	131		identification certificate number. The form shall require a
124	132		lessee that is an entity described by Subsection (b) to provide the
125	133		lessee's name, address, and, if applicable, federal tax
126	134		identification number. The form shall require a lessee who is an
127	135		individual, or the authorized representative of a lessee that is an
128	136		entity described by Subsection (b), to certify, either under oath
129	137		or by written, unsworn declaration, that the lessee does not hold
130	138		the vehicle for the production of income and that the vehicle is
131	139		used primarily for activities that do not involve the production of
132	140		income. The comptroller shall include on the form a notice of the
133	141		penalties prescribed by Section 37.10, Penal Code, for making a
134	142		false statement on the form.
135	143		SECTION 7. Section 11.253, Tax Code, is amended by adding
136	144		Subsections (l) and (m) to read as follows:
137	145		(l) This subsection applies only to a taxing unit any part
138	146		of which is located in an area designated a disaster area by a
139	147		disaster declaration issued under Section 418.014 or 418.108,
140	148		Government Code, on or after January 1, 2020. Notwithstanding
141	149		Subsections (a)(2)(C), (e), and (g), the governing body of a taxing
142	150		unit, in the manner provided by law for official action, may extend
143	151		the date by which goods-in-transit must be transported to another
144	152		location in this state or outside this state to a date not later
145	153		than the 270th day after the date the person acquired the property
146	154		in or imported the property into this state. An extension adopted by
147	155		official action under this subsection applies only to:
148	156		(1) the exemption from ad valorem taxation by the
149	157		taxing unit adopting the extension; and
150	158		(2) the tax year in which the extension is adopted.
151	159		(m) This subsection and Subsection (l) expire December 31,
152	160		2025.
153	161		SECTION 8. Sections 21.021(a) and (b), Tax Code, are
154	162		amended to read as follows:
155	163		(a) Except as otherwise provided by Section 21.031(b-2), a
156	164		[A] vessel or other watercraft used as an instrumentality of
157	165		commerce, [(]as defined by [in] Section 21.031, [21.031(b) of this
158	166		code)] is taxable pursuant to Section 21.02 [of this code].
159	167		(b) A special-purpose vessel or other watercraft not used as
160	168		an instrumentality of commerce, [(]as defined by [in] Section
161	169		21.031, [21.031(b) of this code)] is deemed to be located on January
162	170		1 for more than a temporary period for purposes of Section 21.02 [of
163	171		this code] in the taxing unit in which it was physically located
164	172		during the year preceding the tax year. If the vessel or watercraft
165	173		was physically located in more than one taxing unit during the year
166	174		preceding the tax year, it is deemed to be located for more than a
167	175		temporary period for purposes of Section 21.02 [of this code] in the
168	176		taxing unit in which it was physically located for the longest
169	177		period during the year preceding the tax year or for 30 days,
170	178		whichever is longer. If a vessel or other watercraft is not deemed
171	179		to be located in any taxing unit on January 1 for more than a
172	180		temporary period pursuant to this subsection, the property is
173	181		taxable as provided by Sections 21.02(a)(2) through (4)
174	182		[Subdivisions (2) through (4) of Section 21.02 of this code].
175	183		SECTION 9. Section 21.031, Tax Code, is amended by amending
176	184		Subsection (b) and adding Subsections (b-1), (b-2), (b-3), and (i)
177	185		to read as follows:
178	186		(b) The appraisal office shall make the allocation as
179	187		provided by Subsections (b-1), (b-2), and (b-3).
180	188		(b-1) Except as provided by Subsection (b-2), the [follows:
181	189		[(1) The] allocable portion of the total fair market
182	190		value of a vessel or other watercraft used as an instrumentality of
183	191		commerce that is taxable in this state is determined by multiplying
184	192		the total fair market value by a fraction, the numerator of which is
185	193		the number of miles the vessel or watercraft was operated in this
186	194		state during the year preceding the tax year and the denominator of
187	195		which is the total number of miles the vessel or watercraft was
188	196		operated during the year preceding the tax year. [For purposes of
189	197		this section, "vessel or other watercraft used as an
190	198		instrumentality of commerce" means a vessel or other watercraft
191	199		that is primarily employed in the transportation of cargo,
192	200		passengers, or equipment, and that is economically employed when it
193	201		is moving from point to point as a means of transportation.]
194	202		(b-2) A property owner that operates a fleet of vessels or
195	203		other watercraft that are used as instrumentalities of commerce may
196	204		elect in writing submitted to the appraisal office to have the
197	205		appraisal office make the allocation under this subsection. If the
198	206		property owner makes the election, the allocable portion of the
199	207		total fair market value of a vessel or other watercraft that is part
200	208		of the property owner's fleet, is used as an instrumentality of
201	209		commerce, is taxable in this state, and has taxable situs at a
202	210		location in the appraisal district is determined by multiplying the
203	211		total fair market value of the vessel or other watercraft by a
204	212		fraction, the numerator of which is the number of miles that all the
205	213		vessels or other watercraft of the property owner's fleet that are
206	214		used as instrumentalities of commerce, are taxable in this state,
207	215		and have taxable situs at a location in the same appraisal district
208	216		as the vessel or other watercraft the value of which is allocated
209	217		under this subsection were operated in this state during the year
210	218		preceding the tax year and the denominator of which is the total
211	219		number of miles that all the vessels or other watercraft of the
212	220		property owner's fleet that are used as instrumentalities of
213	221		commerce, are taxable in this state, and have taxable situs at a
214	222		location in the same appraisal district as the vessel or other
215	223		watercraft the value of which is allocated under this subsection
216	224		were operated during the year preceding the tax year.
217	225		Notwithstanding Sections 21.02 and 21.021, a property owner that
218	226		elects to have the appraisal office make the allocation of the
219	227		property owner's fleet under this subsection may designate the
220	228		location of the property owner's principal place of business as the
221	229		taxable situs of the fleet.
222	230		(b-3) [(2)] The allocable portion of the total fair market
223	231		value of a special-purpose vessel or other watercraft not used as an
224	232		instrumentality of commerce is determined by multiplying the total
225	233		fair market value by a fraction, the numerator of which is the
226	234		number of days the vessel or watercraft was physically located in
227	235		this state during the year preceding the tax year and the
228	236		denominator of which is 365. [For purposes of this section,
229	237		"special-purpose vessel or other watercraft not used as an
230	238		instrumentality of commerce" means a vessel or other watercraft
231	239		that:
232	240		[(A) is designed to be transient and customarily
233	241		is moved from location to location on a more or less regular basis;
234	242		[(B) is economically employed when operated in a
235	243		localized area or in a fixed place; and
236	244		[(C) is not primarily employed to transport cargo,
237	245		passengers, and equipment but rather to perform some specialized
238	246		function or operation not requiring constant movement from point to
239	247		point.]
240	248		(i) For purposes of this section:
241	249		(1) "Special-purpose vessel or other watercraft not
242	250		used as an instrumentality of commerce" means a vessel or other
243	251		watercraft that:
244	252		(A) is designed to be transient and customarily
245	253		is moved from location to location on a more or less regular basis;
246	254		(B) is economically employed when operated in a
247	255		localized area or in a fixed place; and
248	256		(C) is not primarily employed to transport cargo,
249	257		passengers, and equipment but rather to perform some specialized
250	258		function or operation not requiring constant movement from point to
251	259		point.
252	260		(2) "Vessel or other watercraft used as an
253	261		instrumentality of commerce" means a vessel or other watercraft
254	262		that is primarily employed in the transportation of cargo,
255	263		passengers, or equipment, and that is economically employed when it
256	264		is moving from point to point as a means of transportation.
257	265		SECTION 10. Section 25.02, Tax Code, is amended by adding
258	266		Subsections (c), (d), (e), (f), and (g) to read as follows:
259	267		(c) Each appraisal record must have a unique account number.
260	268		If an appraisal district changes the account number of an appraisal
261	269		record, the appraisal district must provide written notice of the
262	270		change to the property owner as soon as practicable after the change
263	271		and provide notice of the change in the next notice of appraised
264	272		value of the property included in the record that is delivered to
265	273		the property owner under Section 25.19.
266	274		(d) This subsection does not apply to an appraisal record
267	275		for a residential property, for an improvement only, or for a
268	276		property on which a delinquent tax is due. On the written request
269	277		of a property owner, the chief appraiser shall combine contiguous
270	278		parcels or tracts of the owner's real property into a single
271	279		appraisal record. On the written request of a property owner, the
272	280		chief appraiser shall separate identifiable segments of the owner's
273	281		parcel or tract of real property into individual appraisal records.
274	282		(e) A property owner must make a request under Subsection
275	283		(d) before January 1 of the tax year for which the requested change
276	284		to the appraisal records is to be made. The request must contain a
277	285		legal description as contained in a deed sufficient to describe the
278	286		property subject to the request.
279	287		(f) If a chief appraiser refuses to combine parcels or
280	288		tracts, or separate a parcel or tract, on request of a property
281	289		owner under Subsection (d), the appraisal review board may order
282	290		the requested change on a motion filed by the property owner under
283	291		Section 25.25 or a protest filed under Chapter 41.
284	292		(g) The combination of contiguous parcels or tracts of real
285	293		property into a single appraisal record or the separation of
286	294		identifiable segments of a parcel or tract of real property into
287	295		individual appraisal records under this section does not affect the
288	296		application of generally accepted appraisal methods and techniques
289	297		to the appraisal of real property associated with those appraisal
290	298		records, including real property that is part of the same economic
291	299		unit as real property contained in the same or another appraisal
292	300		record.
293	301		SECTION 11. Section 25.19(b), Tax Code, as effective
294	302		January 1, 2022, is amended to read as follows:
295	303		(b) The chief appraiser shall separate real from personal
296	304		property and include in the notice for each:
297	305		(1) a list of the taxing units in which the property is
298	306		taxable;
299	307		(2) the appraised value of the property in the
300	308		preceding year;
301	309		(3) the taxable value of the property in the preceding
302	310		year for each taxing unit taxing the property;
303	311		(4) the appraised value of the property for the
304	312		current year, the kind and amount of each exemption and partial
305	313		exemption, if any, approved for the property for the current year
306	314		and for the preceding year, and, if an exemption or partial
307	315		exemption that was approved for the preceding year was canceled or
308	316		reduced for the current year, the amount of the exemption or partial
309	317		exemption canceled or reduced;
310	318		(5) in italic typeface, the following statement: "The
311	319		Texas Legislature does not set the amount of your local taxes. Your
312	320		property tax burden is decided by your locally elected officials,
313	321		and all inquiries concerning your taxes should be directed to those
314	322		officials";
315	323		(6) a detailed explanation of the time and procedure
316	324		for protesting the value;
317	325		(7) the date and place the appraisal review board will
318	326		begin hearing protests; [and]
319	327		(8) an explanation of the availability and purpose of
320	328		an informal conference with the appraisal office before a hearing
321	329		on a protest; and
322	330		(9) a brief explanation that the governing body of
323	331		each taxing unit decides whether or not taxes on the property will
324	332		increase and the appraisal district only determines the value of
325	333		the property.
326	334		SECTION 12. Section 25.19, Tax Code, is amended by adding
327	335		Subsections (m) and (n) to read as follows:
328	336		(m) The chief appraiser may not deliver a corrected or
329	337		amended notice of appraised value later than June 1 for property for
330	338		which a person files a rendition statement or property report as
331	339		required by Chapter 22 unless the purpose of the notice is to:
332	340		(1) include omitted property; or
333	341		(2) correct a clerical error.
334	342		(n) As soon as practicable after delivering a notice
335	343		required by this section to a property owner, the chief appraiser
336	344		shall post the notice on the appraisal district's Internet website,
337	345		if the appraisal district maintains a website, as part of the
338	346		appraisal record pertaining to the property.
339	347		SECTION 13. Section 31.11(h), Tax Code, is amended to read
340	348		as follows:
341	349		(h) This section does not apply to an overpayment caused by
342	350		a change of exemption status or correction of a tax roll, including
343	351		an overpayment received after a correction of a tax roll as a result
344	352		of an appeal under Chapter 42. Such an overpayment is covered by
345	353		Section 26.15 or 42.43, as applicable.
346	354		SECTION 14. Section 41.01, Tax Code, is amended by adding
347	355		Subsections (c), (d), and (e) to read as follows:
348	356		(c) The appraisal review board by rule shall adopt
349	357		procedures for hearings the board conducts under this subchapter
350	358		and Subchapter C. Before adopting the hearing procedures, the
351	359		board shall hold a public hearing to consider the hearing
352	360		procedures proposed for adoption by the board. Not later than May
353	361		15 of each year, the board shall hold the hearing, make any
354	362		amendments to the proposed hearing procedures the board determines
355	363		are necessary, and by resolution finally adopt the hearing
356	364		procedures. The board must comply with Section 5.103(d) when
357	365		adopting the hearing procedures. The chairman of the board is
358	366		responsible for the administration of hearing procedures adopted by
359	367		the board.
360	368		(d) The appraisal review board shall distribute copies of
361	369		the hearing procedures adopted by the board to the board of
362	370		directors of, and the taxpayer liaison officer for, the appraisal
363	371		district for which the appraisal review board is established and to
364	372		the comptroller not later than the 15th day after the date the board
365	373		adopts the hearing procedures.
366	374		(e) The appraisal review board shall post a copy of the
367	375		hearing procedures adopted by the board:
368	376		(1) in a prominent place in each room in which the
369	377		board conducts hearings under this subchapter and Subchapter C; and
370	378		(2) if the appraisal district for which the board is
371	379		established maintains an Internet website, on the appraisal
372	380		district's website.
373	381		SECTION 15. Section 41.44(d), Tax Code, is amended to read
374	382		as follows:
375	383		(d) A notice of protest is sufficient if it identifies the
376	384		protesting property owner, including a person claiming an ownership
377	385		interest in the property even if that person is not listed on the
378	386		appraisal records as an owner of the property, identifies the
379	387		property that is the subject of the protest, and indicates apparent
380	388		dissatisfaction with some determination of the appraisal
381	389		office. The notice need not be on an official form, but the
382	390		comptroller shall prescribe a form that provides for more detail
383	391		about the nature of the protest. The form must permit a property
384	392		owner to include each property in the appraisal district that is the
385	393		subject of a protest. The form must permit a property owner to
386	394		request that the protest be heard by a special panel established
387	395		under Section 6.425 if the protest will be determined by an
388	396		appraisal review board to which that section applies and the
389	397		property is included in a classification described by Section
390	398		6.425(b). The form must permit a property owner to request that the
391	399		protest be heard by a single-member panel authorized by Section
392	400		41.45(b-4). The comptroller, each appraisal office, and each
393	401		appraisal review board shall make the forms readily available and
394	402		deliver one to a property owner on request.
395	403		SECTION 16. Subchapter C, Chapter 41, Tax Code, is amended
396	404		by adding Section 41.445 to read as follows:
397	405		Sec. 41.445. INFORMAL CONFERENCE BEFORE HEARING ON PROTEST.
398	406		The appraisal office shall hold an informal conference with each
399	407		property owner who files a notice of protest with the appraisal
400	408		review board and requests an informal conference. An informal
401	409		conference must be held before the hearing on the protest.
402	410		SECTION 17. Section 41.45, Tax Code, is amended by amending
403	411		Subsections (b-1), (d), (d-2), and (d-3) and adding Subsections
404	412		(b-4) and (b-5) to read as follows:
405	413		(b-1) An appraisal review board shall conduct a hearing on a
406	414		protest by telephone conference call if[:
407	415		[(1)] the property owner notifies the board that the
408	416		property owner intends to appear by telephone conference call in
409	417		the owner's notice of protest or by written notice filed with the
410	418		board not later than the 10th day before the date of the hearing [;
411	419		or
412	420		[(2) the board proposes that the hearing be conducted
413	421		by telephone conference call and the property owner agrees to the
414	422		hearing being conducted in that manner].
415	423		(b-4) An appraisal review board shall sit in a single-member
416	424		panel to conduct a protest hearing under this section if the
417	425		property owner requests that the hearing be conducted by a
418	426		single-member panel:
419	427		(1) in the notice of protest; or
420	428		(2) in writing submitted to the board not later than
421	429		the 10th day before the date of the hearing.
422	430		(b-5) If the recommendation of a single-member panel that
423	431		conducts a hearing under Subsection (b-4) is not accepted by the
424	432		appraisal review board, the board may refer the matter for
425	433		rehearing to a single-member panel composed of a member who did not
426	434		hear the original protest or the board may determine the protest.
427	435		(d) This subsection does not apply to a single-member panel
428	436		established under Subsection (b-4) of this section or a special
429	437		panel established under Section 6.425. An appraisal review board
430	438		consisting of more than three members may sit in panels of not fewer
431	439		than three members to conduct protest hearings. If the
432	440		recommendation of a panel is not accepted by the board, the board
433	441		may refer the matter for rehearing to a panel composed of members
434	442		who did not hear the original protest or, if there are not at least
435	443		three members who did not hear the original protest, the board may
436	444		determine the protest.
437	445		(d-2) The determination of a protest heard by a panel under
438	446		Subsection (b-4), (d), or (d-1) must be made by the board.
439	447		(d-3) The board must deliver notice of a hearing or meeting
440	448		to determine a protest heard by a panel, or to rehear a protest,
441	449		under Subsection (b-4), (d), or (d-1) in accordance with the
442	450		provisions of this subchapter.
443	451		SECTION 18. Section 41.461(a), Tax Code, is amended to read
444	452		as follows:
445	453		(a) At least 14 days before a hearing on a protest, the chief
446	454		appraiser shall:
447	455		(1) deliver a copy of the pamphlet prepared by the
448	456		comptroller under Section 5.06 to the property owner initiating the
449	457		protest, or to an agent representing the owner if requested by the
450	458		agent;
451	459		(2) inform the property owner that the owner or the
452	460		agent of the owner is entitled on request to a copy of the data,
453	461		schedules, formulas, and all other information the chief appraiser
454	462		will introduce at the hearing to establish any matter at issue; and
455	463		(3) deliver a copy of the hearing procedures adopted
456	464		[established] by the appraisal review board under Section 41.01
457	465		[41.66] to the property owner.
458	466		SECTION 19. Section 41.47, Tax Code, is amended by amending
459	467		Subsection (c) and adding Subsection (d-1) to read as follows:
460	468		(c) If the protest is of the determination of the appraised
461	469		value of the owner's property, the appraisal review board must
462	470		state in the order the appraised value of the property, listed
463	471		separately in the case of real property as the appraised value of
464	472		the land and the appraised value of any improvement to the land as
465	473		allocated by the chief appraiser:
466	474		(1) as shown in the appraisal records submitted to the
467	475		board by the chief appraiser under Section 25.22 or 25.23; and
468	476		(2) as finally determined by the board.
469	477		(d-1) This subsection applies only to an appraisal district
470	478		established in a county with a population of 120,000 or more. The
471	479		requirements of this subsection are in addition to the requirements
472	480		of Subsection (d). On written request submitted to the chief
473	481		appraiser, the chief appraiser shall deliver by e-mail, in the
474	482		manner provided by this subsection, a copy of the notice of issuance
475	483		of the order and a copy of the order required by Subsection (d) if
476	484		the property subject to the order is not the subject of an agreement
477	485		under Section 1.085. A request under this subsection may be
478	486		submitted only by the property owner whose property is subject to
479	487		the protest for which the order is issued, an attorney representing
480	488		the property owner, or an individual designated by the property
481	489		owner under Section 1.111. A person may include in a single request
482	490		more than one property owned by the same property owner or multiple
483	491		properties owned by multiple property owners. A person may submit
484	492		more than one request. A person submitting a request must indicate
485	493		in the request that the chief appraiser must make the delivery to
486	494		the property owner, an attorney representing the property owner, an
487	495		individual designated by the property owner under Section 1.111, or
488	496		a combination of those persons. A person must submit a request
489	497		before the protest hearing relating to each property included in
490	498		the request. The chief appraiser shall deliver, as provided by this
491	499		subsection, a copy of the notice of issuance of the order and a copy
492	500		of the order required by Subsection (d) not later than the 21st day
493	501		after the date the appraisal review board issues the order.
494	502		SECTION 20. Section 41.66, Tax Code, is amended by amending
495	503		Subsection (a) and adding Subsection (q) to read as follows:
496	504		(a) The appraisal review board shall conduct hearings in
497	505		accordance with the hearing procedures adopted by the appraisal
498	506		review board under Section 41.01(c) [establish by rule the
499	507		procedures for hearings it conducts as provided by Subchapters A
500	508		and C of this chapter]. On request made by a property owner in the
501	509		owner's notice of protest or in a separate writing delivered to the
502	510		appraisal review board on or before the date the notice of protest
503	511		is filed, the property owner is entitled to a copy of the hearing
504	512		procedures. The copy of the hearing procedures shall be delivered
505	513		to the property owner not later than the 10th day before the date
506	514		the hearing on the protest begins and may be delivered with the
507	515		notice of the protest hearing required under Section 41.46(a). The
508	516		notice of protest form prescribed by the comptroller under Section
509	517		41.44(d) or any other notice of protest form made available to a
510	518		property owner by the appraisal review board or the appraisal
511	519		office shall provide the property owner an opportunity to make or
512	520		decline to make a request under this subsection. [The appraisal
513	521		review board shall post a copy of the hearing procedures in a
514	522		prominent place in the room in which the hearing is held.]
515	523		(q) A person who owns property in an appraisal district or
516	524		the chief appraiser of an appraisal district may file a complaint
517	525		with the taxpayer liaison officer for the appraisal district
518	526		alleging that the appraisal review board established for the
519	527		appraisal district has adopted or is implementing hearing
520	528		procedures that are not in compliance with the model hearing
521	529		procedures prepared by the comptroller under Section 5.103 or is
522	530		not complying with procedural requirements under this chapter. The
523	531		taxpayer liaison officer shall investigate the complaint and report
524	532		the findings of the investigation to the board of directors of the
525	533		appraisal district. The board of directors shall direct the
526	534		chairman of the appraisal review board to take remedial action if,
527	535		after reviewing the taxpayer liaison officer's report, the board of
528	536		directors determines that the allegations contained in the
529	537		complaint are true. The board of directors may remove the member of
530	538		the appraisal review board serving as chairman of the appraisal
531	539		review board from that member's position as chairman if the board
532	540		determines that the chairman has failed to take the actions
533	541		necessary to bring the appraisal review board into compliance with
534	542		Section 5.103(d) or this chapter, as applicable.
535	543		SECTION 21. Chapter 41A, Tax Code, is amended by adding
536	544		Section 41A.015 to read as follows:
537	545		Sec. 41A.015. LIMITED BINDING ARBITRATION TO COMPEL
538	546		COMPLIANCE WITH CERTAIN PROCEDURAL REQUIREMENTS RELATED TO
539	547		PROTESTS. (a) A property owner who has filed a notice of protest
540	548		under Chapter 41 may file a request for limited binding arbitration
541	549		under this section to compel the appraisal review board or chief
542	550		appraiser, as appropriate, to:
543	551		(1) rescind procedural rules adopted by the appraisal
544	552		review board that are not in compliance with the model hearing
545	553		procedures prepared by the comptroller under Section 5.103;
546	554		(2) schedule a hearing on a protest as required by
547	555		Section 41.45;
548	556		(3) deliver information to the property owner in the
549	557		manner required by Section 41.461;
550	558		(4) allow the property owner to offer evidence,
551	559		examine or cross-examine witnesses or other parties, and present
552	560		arguments as required by Section 41.66(b);
553	561		(5) set a hearing for a time and date certain and
554	562		postpone a hearing that does not begin within two hours of the
555	563		scheduled time as required by Section 41.66(i);
556	564		(6) schedule hearings on protests concerning multiple
557	565		properties identified in the same notice of protest on the same day
558	566		at the request of the property owner or the property owner's
559	567		designated agent as required by Section 41.66(j); or
560	568		(7) refrain from using or offering as evidence
561	569		information requested by the property owner under Section 41.461
562	570		that was not delivered to the property owner at least 14 days before
563	571		the hearing as required by Section 41.67(d).
564	572		(b) A property owner may not file a request for limited
565	573		binding arbitration under this section unless:
566	574		(1) the property owner has delivered written notice to
567	575		the chairman of the appraisal review board, the chief appraiser,
568	576		and the taxpayer liaison officer for the applicable appraisal
569	577		district by certified mail, return receipt requested, of the
570	578		procedural requirement with which the property owner alleges the
571	579		appraisal review board or chief appraiser failed to comply on or
572	580		before the fifth business day after the date the appraisal review
573	581		board or chief appraiser was required to comply with the
574	582		requirement; and
575	583		(2) the chairman of the appraisal review board or
576	584		chief appraiser, as applicable, fails to deliver to the property
577	585		owner on or before the 10th day after the date the notice is
578	586		delivered a written statement confirming that the appraisal review
579	587		board or chief appraiser, as applicable, will comply with the
580	588		requirement or cure a failure to comply with the requirement.
581	589		(c) Except as otherwise provided by this subtitle, the
582	590		failure to comply with a procedural requirement listed under
583	591		Subsection (a) is not a ground for postponement of a hearing on a
584	592		protest. An appraisal review board may cure an alleged failure to
585	593		comply with a procedural requirement that occurred during a hearing
586	594		by rescinding the order determining the protest for which the
587	595		hearing was held and scheduling a new hearing on the protest.
588	596		(d) A property owner must request limited binding
589	597		arbitration under this section by filing a request with the
590	598		comptroller. The property owner may not file the request earlier
591	599		than the 11th day or later than the 30th day after the date the
592	600		property owner delivers the notice required by Subsection (b)(1) to
593	601		the chairman of the appraisal review board, the chief appraiser,
594	602		and the taxpayer liaison officer for the applicable appraisal
595	603		district.
596	604		(e) A request for limited binding arbitration under this
597	605		section must be in a form prescribed by the comptroller and be
598	606		accompanied by an arbitration deposit payable to the comptroller in
599	607		the amount of:
600	608		(1) $450, if the property that is the subject of the
601	609		protest to which the arbitration relates qualifies as the property
602	610		owner's residence homestead under Section 11.13 and the appraised
603	611		or market value, as applicable, of the property is $500,000 or less,
604	612		as determined by the appraisal district for the most recent tax
605	613		year; or
606	614		(2) $550, for property other than property described
607	615		by Subdivision (1).
608	616		(f) The comptroller shall prescribe the form to be used for
609	617		submitting a request for limited binding arbitration under this
610	618		section. The form must require the property owner to provide:
611	619		(1) a statement that the property owner has provided
612	620		the written notice required by Subsection (b);
613	621		(2) a statement that the property owner has made the
614	622		arbitration deposit required by this section;
615	623		(3) a brief statement identifying the procedural
616	624		requirement with which the property owner alleges the appraisal
617	625		review board or chief appraiser, as applicable, has failed to
618	626		comply;
619	627		(4) a description of the action taken or not taken by
620	628		the appraisal review board or chief appraiser regarding the
621	629		procedural requirement identified under Subdivision (3);
622	630		(5) a description of the property to which the award
623	631		will apply; and
624	632		(6) any other information reasonably necessary for the
625	633		comptroller to appoint an arbitrator.
626	634		(g) On receipt of the request and deposit under this
627	635		section, the comptroller shall appoint an arbitrator from the
628	636		registry maintained under Section 41A.06 who is eligible to serve
629	637		as an arbitrator under Subsection (p) of this section. Section
630	638		41A.07(h) does not apply to the appointment of an arbitrator under
631	639		this section.
632	640		(h) The appraisal review board, the chief appraiser, and the
633	641		property owner are parties to a limited binding arbitration
634	642		conducted under this section. The appraisal review board may
635	643		appear by counsel, by the chairman, or by a person designated by the
636	644		chairman. The chief appraiser may appear by counsel, in person, or
637	645		by a designated employee. The property owner may appear in the
638	646		manner provided by Section 41A.08(b)(2), (3), (4), or (5).
639	647		(i) The arbitrator shall make an arbitration award and
640	648		deliver an electronic copy of the award to:
641	649		(1) the property owner;
642	650		(2) the chairman of the appraisal review board;
643	651		(3) the chief appraiser; and
644	652		(4) the comptroller.
645	653		(j) An award under this section:
646	654		(1) shall include a determination of whether the
647	655		appraisal review board or chief appraiser failed to comply with a
648	656		procedural requirement as alleged in the request for limited
649	657		binding arbitration;
650	658		(2) if the arbitrator determines that the appraisal
651	659		review board or chief appraiser failed to comply with a procedural
652	660		requirement as alleged in the request, shall direct the appraisal
653	661		review board or chief appraiser, as applicable, to:
654	662		(A) comply with the procedural requirement; or
655	663		(B) if the hearing on the protest has been held
656	664		and the appraisal review board has issued an order determining the
657	665		protest, rescind the order and hold a new hearing on the protest
658	666		that complies with the procedural requirement;
659	667		(3) shall specify the arbitrator's fee;
660	668		(4) is final and may not be appealed; and
661	669		(5) is enforceable as provided by Section 41A.09.
662	670		(k) If the arbitrator determines that the appraisal review
663	671		board or chief appraiser failed to comply with the procedural
664	672		requirement that was the subject of the limited binding
665	673		arbitration:
666	674		(1) the comptroller, on receipt of a copy of the award,
667	675		shall refund the property owner's arbitration deposit, less the
668	676		amount retained by the comptroller under Section 41A.05(b); and
669	677		(2) the appraisal district shall pay the arbitrator's
670	678		fee.
671	679		(l) If the arbitrator determines that the appraisal review
672	680		board or chief appraiser complied with the procedural requirement
673	681		that was the subject of the limited binding arbitration, the
674	682		comptroller shall:
675	683		(1) pay the arbitrator's fee out of the owner's
676	684		arbitration deposit; and
677	685		(2) refund to the owner the owner's arbitration
678	686		deposit, less the arbitrator's fee and the amount retained by the
679	687		comptroller under Section 41A.05(b).
680	688		(m) As soon as practicable after receiving notice of an
681	689		award, the appraisal review board or the chief appraiser shall:
682	690		(1) take any action required to comply with the
683	691		requirements of the award; and
684	692		(2) if the award requires the appraisal review board
685	693		to conduct a new hearing under Chapter 41, schedule and conduct the
686	694		hearing.
687	695		(n) An award under this section does not affect the property
688	696		owner's right to:
689	697		(1) appeal the final determination of a protest by the
690	698		appraisal review board under Chapter 42; or
691	699		(2) pursue any other legal or statutory remedy
692	700		available to the property owner.
693	701		(o) A property owner may request a single limited binding
694	702		arbitration under this section that covers more than one property,
695	703		more than one protest hearing, or an allegation of the failure by
696	704		the appraisal review board or chief appraiser to comply with more
697	705		than one procedural requirement so long as the requirements of
698	706		Subsection (b) are met with regard to each alleged failure to
699	707		comply. The amount of the arbitration deposit and the amount of the
700	708		arbitrator's fee are computed as if a single property were the
701	709		subject of the arbitration. If the arbitration involves property
702	710		described by Subsection (e)(1) and property described by Subsection
703	711		(e)(2), the amount of the arbitration deposit and the amount of the
704	712		arbitrator's fee are computed as if only the property described by
705	713		Subsection (e)(2) were the subject of the arbitration. If the
706	714		arbitration involves an allegation of the failure by the appraisal
707	715		review board or chief appraiser to comply with more than one
708	716		procedural requirement, Subsection (k) applies if the arbitrator
709	717		determines that the appraisal review board or chief appraiser
710	718		failed to comply with one or more of the procedural requirements
711	719		that were the subject of the arbitration and Subsection (l) applies
712	720		if the arbitrator determines that the appraisal review board or
713	721		chief appraiser complied with all of the procedural requirements
714	722		that were the subject of the arbitration.
715	723		(p) Section 41A.06 applies to the registration and
716	724		qualification of an arbitrator under this section except that an
717	725		arbitrator under this section must:
718	726		(1) be a licensed attorney; and
719	727		(2) agree to conduct an arbitration for a fee that is
720	728		not more than:
721	729		(A) $400 if the property is described by
722	730		Subsection (e)(1); or
723	731		(B) $500 if the property is described by
724	732		Subsection (e)(2).
725	733		(q) Except as otherwise provided by this section, the
726	734		provisions of this chapter apply to a limited binding arbitration
727	735		under this section. In the event of a conflict between this section
728	736		and another provision of this chapter, this section controls.
729	737		SECTION 22. Section 41A.10, Tax Code, is amended by
730	738		amending Subsection (a) and adding Subsection (c) to read as
731	739		follows:
732	740		(a) The pendency of an appeal under this chapter does not
733	741		affect the delinquency date for the taxes on the property subject to
734	742		the appeal. Except for a property owner who has elected to defer
735	743		the collection of taxes under Section 33.06 or 33.065 on the
736	744		property subject to the appeal and for which the deferral is still
737	745		in effect, a [A] property owner who appeals an appraisal review
738	746		board order under this chapter shall pay taxes on the property
739	747		subject to the appeal in an amount equal to the amount of taxes due
740	748		on the portion of the taxable value of the property that is not in
741	749		dispute. If the final determination of an appeal under this chapter
742	750		decreases the property owner's tax liability to less than the
743	751		amount of taxes paid, the taxing unit shall refund to the property
744	752		owner the difference between the amount of taxes paid and the amount
745	753		of taxes for which the property owner is liable.
746	754		(c) For the purposes of Subsection (b) of this section,
747	755		taxes are not considered delinquent on property subject to an
748	756		appeal if the property owner has elected to defer the collection of
749	757		taxes on the property under Section 33.06 or 33.065 and the deferral
750	758		is still in effect.
751	759		SECTION 23. Section 42.015(a), Tax Code, is amended to read
752	760		as follows:
753	761		(a) A person leasing property who is contractually
754	762		obligated to reimburse the property owner for taxes imposed on the
755	763		property is entitled to appeal an order of the appraisal review
756	764		board determining a protest relating to the property:
757	765		(1) brought by the person under Section 41.413; or
758	766		(2) brought by the property owner if the property
759	767		owner does not appeal the order.
760	768		SECTION 24. Section 42.23(e), Tax Code, is amended to read
761	769		as follows:
762	770		(e) For purposes of Subsection (d), a property owner may
763	771		designate a cause of action under Section 42.25 or 42.26 as the
764	772		basis for an appeal, but may not designate a cause of action under
765	773		both sections as the basis for the appeal. Discovery regarding a
766	774		cause of action that is not specifically designated by the property
767	775		owner under Subsection (d) shall be conducted as provided by the
768	776		Texas Rules of Civil Procedure. A [The] court may not enter an
769	777		order, including a protective order [to modify the provisions of
770	778		this subsection] under Rule 192.6 of the Texas Rules of Civil
771	779		Procedure, that conflicts with Subsection (d).
772	780		SECTION 25. Section 6.03, Tax Code, as amended by this Act,
773	781		applies only to the selection of members of the board of directors
774	782		of an appraisal district who are appointed for a term that begins on
775	783		or after January 1, 2022.
776	784		SECTION 26. Section 11.253, Tax Code, as amended by this
777	785		Act, applies only to a tax year beginning on or after January 1,
778	786		2022.
779	787		SECTION 27. Sections 21.021 and 21.031, Tax Code, as
780	788		amended by this Act, apply only to the allocation of the value and
781	789		the determination of the situs of vessels and other watercraft for
782	790		ad valorem tax purposes beginning on or after January 1, 2022.
783	791		SECTION 28. Section 25.19, Tax Code, as amended by this Act,
784	792		applies only to a notice of appraised value for a tax year beginning
785	793		on or after January 1, 2022.
786	794		SECTION 29. Section 41.445, Tax Code, as added by this Act,
787	795		and Sections 41.45 and 41.47, Tax Code, as amended by this Act,
788	796		apply only to a protest under Chapter 41, Tax Code, for which a
789	797		notice of protest is filed by a property owner on or after January
790	798		1, 2022. A protest under Chapter 41, Tax Code, for which a notice of
791	799		protest is filed by a property owner before January 1, 2022, is
792	800		governed by the law in effect on the date the notice of protest is
793	801		filed, and the former law is continued in effect for that purpose.
794	802		SECTION 30. Section 41A.10, Tax Code, as amended by this
795	803		Act, applies only to a request for binding arbitration under
796	804		Chapter 41A, Tax Code, that is filed on or after the effective date
797	805		of this Act. A request for binding arbitration under Chapter 41A,
798	806		Tax Code, that is filed before the effective date of this Act is
799	807		governed by the law in effect on the date the request is filed, and
800	808		the former law is continued in effect for that purpose.
801	809		SECTION 31. Sections 42.015 and 42.23, Tax Code, as amended
802	810		by this Act, apply to an appeal under Chapter 42, Tax Code, that is
803	811		pending on the date the amendments to those sections take effect
804	812		under this Act or that is filed on or after that date.
805	813		SECTION 32. The comptroller of public accounts is required
806	814		to implement a provision of this Act only if the legislature
807	815		appropriates money specifically for that purpose. If the
808	816		legislature does not appropriate money specifically for that
809	817		purpose, the comptroller may, but is not required to, implement a
810	818		provision of this Act using other appropriations available for that
811	819		purpose.
812	820		SECTION 33. (a) Except as provided by Subsection (b) of this
813	821		section, this Act takes effect January 1, 2022.
814	822		(b) Sections 5.103, 5.104, 6.052, 41.01, 41.461, 41.66,
815	823		42.015, and 42.23, Tax Code, as amended by this Act, and Section
816	824		41A.015, Tax Code, as added by this Act, take effect immediately if
817	825		this Act receives a vote of two-thirds of all the members elected to
818	826		each house, as provided by Section 39, Article III, Texas
819	827		Constitution. If this Act does not receive the vote necessary for
820	828		immediate effect, those sections of this Act take effect September
821	829		1, 2021.
822		-	______________________________ ______________________________
823		-	President of the Senate Speaker of the House
824		-	I certify that H.B. No. 988 was passed by the House on April
825		-	27, 2021, by the following vote: Yeas 146, Nays 0, 1 present, not
826		-	voting; and that the House concurred in Senate amendments to H.B.
827		-	No. 988 on May 28, 2021, by the following vote: Yeas 146, Nays 0, 1
828		-	present, not voting.
829		-	______________________________
830		-	Chief Clerk of the House
831		-	I certify that H.B. No. 988 was passed by the Senate, with
832		-	amendments, on May 25, 2021, by the following vote: Yeas 31, Nays
833		-	0.
834		-	______________________________
835		-	Secretary of the Senate
836		-	APPROVED: __________________
837		-	Date
838		-	__________________
839		-	Governor
	830	+	* * * * *