| 1 | 1 | | 88R2374 RDS-F |
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| 2 | 2 | | By: King of Uvalde H.B. No. 1417 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the appraisal for ad valorem tax purposes of property |
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| 8 | 8 | | owned by certain telecommunications providers. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter B, Chapter 23, Tax Code, is amended by |
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| 11 | 11 | | adding Section 23.1212 to read as follows: |
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| 12 | 12 | | Sec. 23.1212. PROPERTY OWNED BY SMALL PROVIDER; VALUE. (a) |
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| 13 | 13 | | In this section: |
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| 14 | 14 | | (1) "Incumbent local exchange company," "local |
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| 15 | 15 | | exchange company," and "telecommunications utility" have the |
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| 16 | 16 | | meanings assigned by Section 51.002, Utilities Code. |
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| 17 | 17 | | (2) "Presumptive appraised value" means the value |
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| 18 | 18 | | equal to 20 percent of the net book value of taxable property on |
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| 19 | 19 | | January 1 of a tax year. |
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| 20 | 20 | | (3) "Small provider" means a telecommunications |
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| 21 | 21 | | utility that is: |
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| 22 | 22 | | (A) an incumbent local exchange company or |
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| 23 | 23 | | cooperative that, on September 1, 2013, together with all local |
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| 24 | 24 | | exchange companies affiliated with the company or cooperative on |
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| 25 | 25 | | that date, served 31,000 or fewer access lines in this state; or |
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| 26 | 26 | | (B) a company or cooperative that is a successor |
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| 27 | 27 | | to a company or cooperative described by Paragraph (A). |
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| 28 | 28 | | (b) A small provider that owns taxable real or personal |
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| 29 | 29 | | property in more than one appraisal district may elect to have the |
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| 30 | 30 | | property appraised for a tax year as provided by this section. |
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| 31 | 31 | | (c) To elect appraisal of property for a tax year under this |
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| 32 | 32 | | section, a small provider must submit a written request not later |
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| 33 | 33 | | than March 1 of the tax year to the chief appraiser of each |
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| 34 | 34 | | appraisal district for which the election is made. The request |
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| 35 | 35 | | must: |
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| 36 | 36 | | (1) state the presumptive appraised value on January 1 |
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| 37 | 37 | | of that tax year of the small provider's taxable property in the |
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| 38 | 38 | | appraisal district for which the request is submitted; and |
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| 39 | 39 | | (2) include an accounting report that: |
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| 40 | 40 | | (A) demonstrates the net book value of the small |
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| 41 | 41 | | provider's taxable property in the appraisal district; and |
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| 42 | 42 | | (B) is prepared and certified by a certified or |
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| 43 | 43 | | licensed public accountant who is not an employee of the small |
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| 44 | 44 | | provider. |
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| 45 | 45 | | (d) Except as provided by Subsection (e), a chief appraiser |
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| 46 | 46 | | who receives a request timely submitted under this section must |
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| 47 | 47 | | appraise the property that is the subject of the request at the |
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| 48 | 48 | | property's presumptive appraised value. |
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| 49 | 49 | | (e) A chief appraiser may increase the appraised value of a |
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| 50 | 50 | | small provider's real and personal property to an amount greater |
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| 51 | 51 | | than the presumptive appraised value if the increase is supported |
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| 52 | 52 | | by a preponderance of the evidence. |
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| 53 | 53 | | SECTION 2. This Act applies only to an ad valorem tax year |
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| 54 | 54 | | that begins on or after the effective date of this Act. |
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| 55 | 55 | | SECTION 3. This Act takes effect September 1, 2023. |
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