Bill Text: TX HB3098 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to ad valorem taxation.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2019-03-13 - Referred to Ways & Means [HB3098 Detail]

Download: Texas-2019-HB3098-Introduced.html

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86R14931 SMH-D
By: Toth H.B. No. 3098

A BILL TO BE ENTITLED
AN ACT
relating to ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter A, Chapter 6, Tax Code,
is amended to read as follows:
SUBCHAPTER A. APPRAISAL OFFICES [DISTRICTS]
SECTION 2. Section 6.01, Tax Code, is amended to read as
follows:
Sec. 6.01. APPRAISAL OFFICES [DISTRICTS] ESTABLISHED. (a)
An appraisal office [district] is established in each county.
(b) The office [district] is responsible for appraising
property in the county for which the office is established
[district] for ad valorem tax purposes of each taxing unit that
imposes ad valorem taxes on property in the county [district].
(c) An appraisal office [district] is governed by the
assessor-collector of the county for which the office is
established and is an administrative office of the county
assessor-collector [a political subdivision of the state].
(d) For purposes of this title, each taxing unit with
territory in the county is considered to participate in the
appraisal office established for the county.
(e) A reference in this title or other law to:
(1) an appraisal district means an appraisal office;
(2) the territory of an appraisal district means the
county for which an appraisal office is established; and
(3) the board of directors of an appraisal district
means the assessor-collector of the county for which an appraisal
office is established.
SECTION 3. Section 6.02, Tax Code, is amended to read as
follows:
Sec. 6.02. APPRAISAL OFFICE AUTHORITY WITHIN COUNTY
[DISTRICT BOUNDARIES]. (a) An [The] appraisal office has
authority under this title in the territory included within
[district's boundaries are the same as] the county's boundaries.
(b) This section does not preclude the county
assessor-collectors who govern [board of directors of] two or more
adjoining appraisal offices [districts] from providing for the
operation of a consolidated appraisal office [district] by
interlocal contract.
SECTION 4. The heading to Section 6.035, Tax Code, is
amended to read as follows:
Sec. 6.035. RESTRICTIONS ON ELIGIBILITY AND CONDUCT OF
COUNTY ASSESSOR-COLLECTORS [BOARD MEMBERS] AND CHIEF APPRAISERS
AND THEIR RELATIVES.
SECTION 5. Sections 6.035(a), (b), and (d), Tax Code, are
amended to read as follows:
(a) An individual is [ineligible to serve on an appraisal
district board of directors and is] disqualified from employment as
chief appraiser if the individual:
(1) is related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an individual who is engaged in the business of
appraising property for compensation for use in proceedings under
this title or of representing property owners for compensation in
proceedings under this title in the appraisal office [district]; or
(2) owns property on which delinquent taxes have been
owed to a taxing unit for more than 60 days after the date the
individual knew or should have known of the delinquency unless:
(A) the delinquent taxes and any penalties and
interest are being paid under an installment payment agreement
under Section 33.02; or
(B) a suit to collect the delinquent taxes is
deferred or abated under Section 33.06 or 33.065.
(b) A [member of an appraisal district board of directors or
a] chief appraiser commits an offense if the [board member
continues to hold office or the] chief appraiser remains employed
knowing that an individual related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to the [board member or] chief appraiser is
engaged in the business of appraising property for compensation for
use in proceedings under this title or of representing property
owners for compensation in proceedings under this title in the
appraisal office [district] in which the [member serves or the]
chief appraiser is employed. An offense under this subsection is a
Class B misdemeanor.
(d) An appraisal performed by a chief appraiser in a private
capacity or by an individual related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to the chief appraiser may not be used as evidence
in a protest or challenge under Chapter 41 or an appeal under
Chapter 42 concerning property that is taxable in the county for
which the appraisal office that employs [district in which] the
chief appraiser is established [employed].
SECTION 6. Sections 6.036(b), (c), and (f), Tax Code, are
amended to read as follows:
(b) An appraisal office [district] may not enter into a
contract with the county assessor-collector who governs [a member
of the board of directors of] the appraisal office [district] or
with a business entity in which the county assessor-collector [a
member of the board] has a substantial interest.
(c) A taxing unit may not enter into a contract relating to
the performance of an activity governed by this title with a
business entity in which the county assessor-collector who governs
[a member of the board of directors of] an appraisal office
[district] in which the taxing unit participates [or with a
business entity in which a member of the board] has a substantial
interest.
(f) This section does not limit the application of any other
law, including the common law relating to conflicts of interest, to
a county assessor-collector [an appraisal district director].
SECTION 7. Section 6.05, Tax Code, is amended to read as
follows:
Sec. 6.05. APPRAISAL OFFICE; CHIEF APPRAISER AND OTHER
EMPLOYEES. (a) Except as authorized by Subsection (b) [of this
section], each county assessor-collector [appraisal district]
shall establish an appraisal office. The appraisal office must be
located in the county for which the office [district] is
established. An appraisal office [district] may establish branch
appraisal offices outside the county for which the office
[district] is established.
(b) The county assessor-collector who governs [board of
directors of] an appraisal office [district] may contract with an
appraisal office in another county [district or with a taxing unit
in the district] to perform the duties of the appraisal office for
the county [district].
(c) The county assessor-collector may serve as the chief
appraiser for the appraisal office or may appoint another person to
serve as the chief appraiser.
(d) A county assessor-collector who appoints another person
to serve as the chief appraiser shall notify the comptroller and
each taxing unit that participates in the appraisal office of that
appointment.
(e) An appointed [The] chief appraiser [is the chief
administrator of the appraisal office. Except as provided by
Section 6.0501, the chief appraiser is appointed by and] serves at
the pleasure of the county assessor-collector and acts on behalf of
the county assessor-collector on all matters delegated to the
appointed chief appraiser by the county assessor-collector
[appraisal district board of directors. If a taxing unit performs
the duties of the appraisal office pursuant to a contract, the
assessor for the unit is the chief appraiser]. To be eligible to be
appointed [or serve] as a chief appraiser or to serve as an
appointed chief appraiser, a person must be certified as a
registered professional appraiser under Section 1151.160,
Occupations Code, possess an MAI professional designation from the
Appraisal Institute, or possess an Assessment Administration
Specialist (AAS), Certified Assessment Evaluator (CAE), or
Residential Evaluation Specialist (RES) professional designation
from the International Association of Assessing Officers. A person
who is eligible to be appointed [or serve] as a chief appraiser or
to serve as an appointed chief appraiser by having a professional
designation described by this subsection must become certified as a
registered professional appraiser under Section 1151.160,
Occupations Code, not later than the fifth anniversary of the date
the person is appointed or begins to serve as chief appraiser. A
chief appraiser who is not eligible to be appointed or serve as
chief appraiser may not perform an action authorized or required by
law to be performed by a chief appraiser, including the
preparation, certification, or submission of any part of the
appraisal roll. Not later than January 1 of each year, a county
assessor-collector who has appointed another person to serve as the
chief appraiser shall notify the comptroller in writing that the
chief appraiser is either eligible to be appointed or serve as the
chief appraiser or not eligible to be appointed or serve as the
chief appraiser.
(f) An appointed [(d) Except as provided by Section
6.0501, the] chief appraiser is entitled to compensation as
provided by the budget adopted by the county assessor-collector who
governs the appraisal office for performing duties delegated to the
appointed chief appraiser by the county assessor-collector [board
of directors]. The chief appraiser's compensation may not be
directly or indirectly linked to an increase in the total market,
appraised, or taxable value of property in the county for which the
appraisal office is established [district]. The county
assessor-collector [Except as provided by Section 6.0501, the chief
appraiser] may employ and compensate professional, clerical, and
other personnel as provided by the budget[, with the exception of a
general counsel to the appraisal district].
(g) [(e)] The county assessor-collector may not appoint a
person to serve as the chief appraiser if the person is related to
the county assessor-collector within the second degree by affinity
or within the third degree by consanguinity, as determined under
Chapter 573, Government Code. [chief appraiser may delegate
authority to his employees.
[(f) The chief appraiser may not employ any individual
related to a member of the board of directors within the second
degree by affinity or within the third degree by consanguinity, as
determined under Chapter 573, Government Code.] A person commits
an offense if the person intentionally or knowingly violates this
subsection. An offense under this subsection is a misdemeanor
punishable by a fine of not less than $100 or more than $1,000.
(h) [(g)] The chief appraiser is an officer of the appraisal
office [district] for purposes of the nepotism law, Chapter 573,
Government Code. An appraisal office [district] may not employ or
contract with an individual or the spouse of an individual who is
related to the chief appraiser within the first degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code.
(i) A county assessor-collector who appoints another person
to serve as the chief appraiser [(h) The board of directors of an
appraisal district by resolution] may prescribe that specified
actions of the chief appraiser relating to the finances or
administration of the appraisal office [district] are subject to
the approval of the county assessor-collector [board].
[(i) To ensure adherence with generally accepted appraisal
practices, the board of directors of an appraisal district shall
develop biennially a written plan for the periodic reappraisal of
all property within the boundaries of the district according to the
requirements of Section 25.18 and shall hold a public hearing to
consider the proposed plan. Not later than the 10th day before the
date of the hearing, the secretary of the board shall deliver to the
presiding officer of the governing body of each taxing unit
participating in the district a written notice of the date, time,
and place for the hearing. Not later than September 15 of each
even-numbered year, the board shall complete its hearings, make any
amendments, and by resolution finally approve the plan. Copies of
the approved plan shall be distributed to the presiding officer of
the governing body of each taxing unit participating in the
district and to the comptroller within 60 days of the approval
date.]
(j) The county assessor-collector who governs [board of
directors of] an appraisal office [district] may employ a general
counsel to the office [district] to serve at the will of the county
assessor-collector [board]. The general counsel shall provide
counsel directly to the county assessor-collector [board] and
perform other duties and responsibilities as determined by the
county assessor-collector [board]. The general counsel is entitled
to compensation as provided by the budget adopted by the county
assessor-collector [board].
SECTION 8. Section 6.052, Tax Code, is amended to read as
follows:
Sec. 6.052. TAXPAYER LIAISON OFFICER. (a) The county
assessor-collector who governs [board of directors for] an
appraisal office [district] created for a county with a population
of more than 120,000 shall appoint a taxpayer liaison officer who
shall serve at the pleasure of the county assessor-collector
[board]. The taxpayer liaison officer [shall administer the public
access functions required by Sections 6.04(d), (e), and (f), and]
is responsible for resolving disputes not involving matters that
may be protested under Section 41.41. In addition, the taxpayer
liaison officer is responsible for receiving, and compiling a list
of, comments and suggestions filed by the chief appraiser, a
property owner, or a property owner's agent concerning the matters
listed in Section 5.103(b) or any other matter related to the
fairness and efficiency of the appraisal review board established
for the appraisal office [district]. The taxpayer liaison officer
shall forward to the comptroller comments and suggestions filed
under this subsection in the form and manner prescribed by the
comptroller.
(b) The taxpayer liaison officer shall provide to the public
information and materials designed to assist property owners in
understanding the appraisal process, protest procedures, the
procedure for filing comments and suggestions under Subsection (a)
[of this section or a complaint under Section 6.04(g)], and other
matters. Information concerning the process for submitting
comments and suggestions to the comptroller concerning an appraisal
review board shall be provided at each protest hearing.
(c) The taxpayer liaison officer shall report to the county
assessor-collector [board at each meeting] on the status of all
comments and suggestions filed with the officer under Subsection
(a) [of this section and all complaints filed with the board under
Section 6.04(g)].
(d) The taxpayer liaison officer is entitled to
compensation as provided by the budget adopted by the county
assessor-collector [board of directors].
(e) The chief appraiser or any other person who performs
appraisal or legal services for the appraisal office [district] for
compensation is not eligible to be the taxpayer liaison officer.
(f) The taxpayer liaison officer for an appraisal office
[district described by Section 6.41(d-1)] is responsible for
providing clerical assistance to the pertinent state senators and
state representatives [local administrative district judge] in the
selection of appraisal review board members. The officer shall
deliver to the state senators and state representatives [local
administrative district judge] any applications to serve on the
board that are submitted to the officer and shall perform other
duties as requested by the state senators and state representatives
[local administrative district judge]. The officer may not
influence the process for selecting appraisal review board members.
SECTION 9. The heading to Section 6.06, Tax Code, is amended
to read as follows:
Sec. 6.06. APPRAISAL OFFICE [DISTRICT] BUDGET AND
FINANCING.
SECTION 10. Sections 6.06(a), (b), (c), (d), (f), (g), (h),
(i), (j), and (k), Tax Code, are amended to read as follows:
(a) Each year the county assessor-collector who governs an
appraisal office, with the assistance of the chief appraiser, shall
prepare a proposed budget for the operations of the office
[district] for the following tax year and shall submit copies to
each taxing unit participating in the office [district and to the
district board of directors] before June 15. The budget must [He
shall] include [in the budget] a list showing each proposed
position, the proposed salary for the position, all benefits
proposed for the position, each proposed capital expenditure, and
an estimate of the amount of the budget that will be allocated to
each taxing unit. Each taxing unit [entitled to vote on the
appointment of board members] shall maintain a copy of the proposed
budget for public inspection at its principal administrative
office.
(b) The county assessor-collector [board of directors]
shall hold a public hearing to consider the budget. The chief
appraiser [secretary of the board] shall deliver to the presiding
officer of the governing body of each taxing unit participating in
the appraisal office [district] not later than the 10th day before
the date of the hearing a written notice of the date, time, and
place fixed for the hearing. The county assessor-collector [board]
shall complete the [its] hearings, make any amendments to the
proposed budget [it desires], and finally approve a budget before
September 15. If the governing bodies of a majority of the taxing
units participating in the appraisal office [entitled to vote on
the appointment of board members] adopt resolutions disapproving a
budget and file them with the county assessor-collector [secretary
of the board] within 30 days after its adoption, the budget does not
take effect, and the county assessor-collector [board] shall adopt
a new budget within 30 days of the disapproval.
(c) The county assessor-collector [board] may amend the
approved budget at any time[,] but [the secretary of the board] must
deliver a written copy of a proposed amendment to the presiding
officer of the governing body of each taxing unit participating in
the appraisal office [district] not later than the 30th day before
the date the county assessor-collector [board] acts on it.
(d) Each taxing unit participating in the appraisal office
[district] is allocated a portion of the amount of the budget equal
to the proportion that the total dollar amount of property taxes
imposed in the county for which the office is established
[district] by the taxing unit for the tax year in which the budget
proposal is prepared bears to the sum of the total dollar amount of
property taxes imposed in the county [district] by each
participating taxing unit for that year. If a taxing unit
participates in two or more appraisal offices [districts], only the
taxes imposed in the appropriate county [a district] are used to
calculate the taxing unit's cost allocations in that office
[district]. If the number of real property parcels in a taxing unit
is less than 5 percent of the total number of real property parcels
in the county [district] and the taxing unit imposes in excess of 25
percent of the total amount of the property taxes imposed in the
county [district] by all of the participating taxing units for a
year, the taxing unit's allocation may not exceed a percentage of
the appraisal office's [district's] budget equal to three times the
taxing unit's percentage of the total number of real property
parcels appraised by the office [district].
(f) Payments shall be made to a depository designated by the
county assessor-collector [district board of directors]. The
appraisal office's [district's] funds may be disbursed only by a
written check, draft, or order signed by the county
assessor-collector [chairman and secretary of the board] or, if
authorized by [resolution of] the county assessor-collector
[board], by the chief appraiser.
(g) If a taxing unit decides not to impose taxes for any tax
year, the taxing unit is not liable for any of the costs of
operating the appraisal office [district] in that year, and those
costs are allocated among the other taxing units as if that taxing
unit had not imposed taxes in the year used to calculate
allocations. However, if that taxing unit has made any payments, it
is not entitled to a refund.
(h) If a newly formed taxing unit or a taxing unit that did
not impose taxes in the preceding year imposes taxes in any tax
year, that taxing unit is allocated a portion of the amount budgeted
to operate the appraisal office [district] as if it had imposed
taxes in the preceding year, except that the amount of taxes the
taxing unit imposes in the current year is used to calculate its
allocation. Before the amount of taxes to be imposed for the
current year is known, the allocation may be based on an estimate to
which the county assessor-collector who governs the appraisal
office [district board of directors] and the governing body of the
taxing unit agree, and the payments made after that amount is known
shall be adjusted to reflect the amount imposed. The payments of a
newly formed taxing unit that has no source of funds are postponed
until the taxing unit has received adequate tax or other revenues.
(i) The fiscal year of an appraisal office [district] is the
calendar year unless the governing bodies of three-fourths of the
taxing units that participate in the office [entitled to vote on the
appointment of board members] adopt resolutions proposing a
different fiscal year and file them with the county
assessor-collector who governs the office [secretary of the board]
not more than 12 and not less than eight months before the first day
of the fiscal year proposed by the resolutions. If the fiscal year
of an appraisal office [district] is changed under this subsection,
the county assessor-collector, with the assistance of the chief
appraiser, shall prepare a proposed budget for the fiscal year as
provided by Subsection (a) [of this section] before the 15th day of
the seventh month preceding the first day of the fiscal year
established by the change, and the county assessor-collector [board
of directors] shall adopt a budget for the fiscal year as provided
by Subsection (b) [of this section] before the 15th day of the
fourth month preceding the first day of the fiscal year established
by the change. The [Unless the appraisal district adopts a
different method of allocation under Section 6.061 of this code,
the] allocation of the budget to each taxing unit shall be
calculated as provided by Subsection (d) [of this section] using
the amount of property taxes imposed by each participating taxing
unit in the most recent tax year preceding the fiscal year
established by the change for which the necessary information is
available. Each taxing unit shall pay its allocation as provided by
Subsection (e) [of this section], except that the first payment
shall be made before the first day of the fiscal year established by
the change and subsequent payments shall be made quarterly. In the
year in which a change in the fiscal year occurs, the budget that
takes effect on January 1 of that year may be amended as necessary
as provided by Subsection (c) [of this section] in order to
accomplish the change in fiscal years.
(j) If the total amount of the payments made or due to be
made by the taxing units participating in an appraisal office
[district] exceeds the amount actually spent or obligated to be
spent during the fiscal year for which the payments were made, the
chief appraiser shall credit the excess amount against each taxing
unit's allocated payments for the following year in proportion to
the amount of each taxing unit's budget allocation for the fiscal
year for which the payments were made. If a taxing unit that paid
its allocated amount is not allocated a portion of the appraisal
office's [district's] budget for the following fiscal year, the
chief appraiser shall refund to the taxing unit its proportionate
share of the excess funds not later than the 150th day after the end
of the fiscal year for which the payments were made.
(k) For good cause shown, the county assessor-collector who
governs an appraisal office [board of directors] may waive the
penalty and interest on a delinquent payment under Subsection (e).
SECTION 11. Sections 6.062(a) and (c), Tax Code, are
amended to read as follows:
(a) Not later than the 10th day before the date of the public
hearing at which the county assessor-collector who governs an
appraisal office [board of directors] considers the appraisal
office [district] budget, the chief appraiser shall give notice of
the public hearing by publishing the notice in a newspaper having
general circulation in the county for which the appraisal office
[district] is established. The notice may not be smaller than
one-quarter page of a standard-size or tabloid-size newspaper and
may not be published in the part of the paper in which legal notices
and classified advertisements appear.
(c) The notice must state that the appraisal office
[district] is supported solely by payments from the local taxing
units served by the appraisal office [district]. The notice must
also contain the following statement: "If approved by the county
assessor-collector who governs the appraisal office [district
board of directors] at the public hearing, this proposed budget
will take effect automatically unless disapproved by the governing
bodies of the taxing units [county, school districts, cities, and
towns] served by the appraisal office [district]. A copy of the
proposed budget is available for public inspection in the office of
each of those governing bodies."
SECTION 12. Section 6.063, Tax Code, is amended to read as
follows:
Sec. 6.063. FINANCIAL AUDIT. (a) At least once each year,
the county assessor-collector who governs [board of directors of]
an appraisal office [district] shall have prepared an audit of its
affairs by an independent certified public accountant or a firm of
independent certified public accountants.
(b) The report of the audit is a public record. A copy of
the report shall be delivered to the presiding officer of the
governing body of each taxing unit that participates in the
appraisal office [eligible to vote on the appointment of district
directors], and a reasonable number of copies shall be available
for inspection at the appraisal office.
SECTION 13. The heading to Section 6.09, Tax Code, is
amended to read as follows:
Sec. 6.09. DESIGNATION OF APPRAISAL OFFICE [DISTRICT]
DEPOSITORY.
SECTION 14. Sections 6.09(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) The appraisal office [district] depository must be a
banking corporation incorporated under the laws of this state or
the United States or a savings and loan association in this state
whose deposits are insured by the Federal Deposit [Savings and
Loan] Insurance Corporation.
(b) The county assessor-collector who governs the appraisal
office [district board of directors] shall designate as the office
[district] depository the financial institution or institutions
that offer the most favorable terms and conditions for the handling
of the office's [district's] funds.
(c) The county assessor-collector [board] shall solicit
bids to be designated as depository for the appraisal office
[district]. The depository when designated shall serve for a term
of two years and until its successor is designated and has
qualified. The county assessor-collector [board] and the
depository may agree to extend a depository contract for one
additional two-year period.
SECTION 15. Section 6.11, Tax Code, is amended to read as
follows:
Sec. 6.11. PURCHASING AND CONTRACTING AUTHORITY. (a) An
appraisal office [district] is subject to the same requirements and
has the same purchasing and contracting authority as a municipality
under Chapter 252, Local Government Code.
(b) For purposes of this section, all the provisions of
Chapter 252, Local Government Code, applicable to a municipality or
to purchases and contracts by a municipality apply to an appraisal
office [district] and to purchases and contracts by an appraisal
office [district] to the extent they can be made applicable, and all
references to the municipality in that chapter mean the appraisal
office [district]. For purposes of applying Section 252.061, Local
Government Code, to an appraisal office [district], any resident of
the county for which the appraisal office is established [district]
may seek an injunction under that section. Sections 252.062 and
252.063, Local Government Code, apply to an officer or employee of
an appraisal office [district] in the same manner as those sections
apply to a municipal officer or employee.
SECTION 16. Sections 6.12(a), (b), (c), and (e), Tax Code,
are amended to read as follows:
(a) The state senators and state representatives whose
districts contain any part of the territory included in the county
for which an [chief appraiser of each] appraisal office is
established [district] shall by majority vote appoint, with the
advice [and consent] of and in the manner provided by the county
assessor-collector who governs the office [board of directors], an
agricultural advisory board composed of three or more members as
determined by the county assessor-collector [board]. Each state
senator and state representative is entitled to one vote for a
candidate for each position to be filled on the board.
(b) The agricultural advisory board members must be
landowners of the county for which the appraisal office is
established [district] whose land qualifies for appraisal under
Subchapter C, D, E, or H, Chapter 23, and who have been residents of
the county [district] for at least five years.
(c) Members of the board serve for [staggered] terms of two
years. The county assessor-collector who governs the appraisal
office shall provide for staggered terms, so that the terms of as
close to one-half of the members as possible expire each year [In
making the initial appointments of members of the agricultural
advisory board the chief appraiser shall appoint for a term of one
year one-half of the members, or if the number of members is an odd
number, one fewer than a majority of the membership].
(e) An employee or officer of an appraisal office [district]
may not be appointed and may not serve as a member of the
agricultural advisory board.
SECTION 17. Section 6.13, Tax Code, is amended to read as
follows:
Sec. 6.13. APPRAISAL OFFICE [DISTRICT] RECORDS. The
preservation, microfilming, destruction, or other disposition of
the records of each appraisal office [district] is subject to the
requirements of Subtitle C, Title 6, Local Government Code, and
rules adopted under that subtitle.
SECTION 18. Sections 6.14(a) and (b), Tax Code, are amended
to read as follows:
(a) On the written request of the Texas Legislative Council,
an appraisal office [district] that maintains its appraisal records
in electronic format shall provide a copy of the information or data
maintained in the office's [district's] appraisal records to the
council without charge.
(b) The appraisal office [district] shall provide the
requested information or data to the council as soon as practicable
but not later than the 30th day after the date the request is
received by the office [district].
SECTION 19. Sections 6.24(a) and (b), Tax Code, are amended
to read as follows:
(a) The governing body of a taxing unit other than a county
may contract as provided by Chapter 791, Government Code, [the
Interlocal Cooperation Act] with the governing body of another
taxing unit or with the county assessor-collector who governs
[board of directors of] an appraisal office [district] for the
other taxing unit or the office [district] to perform duties
relating to the assessment or collection of taxes.
(b) The commissioners court of a county with the approval of
the county assessor-collector may contract as provided by Chapter
791, Government Code, [the Interlocal Cooperation Act] with the
governing body of another taxing unit in the county [or with the
board of directors of the appraisal district] for the other taxing
unit [or the district] to perform duties relating to the assessment
or collection of taxes for the county. The commissioners court may
contract as provided by Chapter 791, Government Code, with the
county assessor-collector for the appraisal office established for
the county to perform duties relating to the assessment or
collection of taxes for the county. If a county contracts to have
its taxes assessed and collected by another taxing unit or by the
appraisal office [district, except as provided by Subsection (c)],
the contract shall require the other taxing unit or the office
[district] to assess and collect all taxes the county is required to
assess and collect.
SECTION 20. Sections 6.26(a), (b), (c), (e), (f), and (j),
Tax Code, are amended to read as follows:
(a) The qualified voters residing in the county for which an
appraisal office is established [district] by petition submitted to
the county clerk of the county [principally served by the appraisal
district] may require that an election be held to determine whether
or not to require the appraisal office [district], the county
assessor-collector, or a specified taxing unit within the county
[appraisal district] to assess, collect, or assess and collect
property taxes on property appraised by the office [district] for
all taxing units.
(b) The qualified voters of a taxing unit that assesses,
collects, or assesses and collects its own property taxes by
petition submitted to the governing body of the taxing unit may
require that an election be held to determine whether or not to
require the appraisal office [district], the county
assessor-collector, or another taxing unit that is assessing and
collecting property taxes to assess, collect, or assess and collect
the taxing unit's property taxes.
(c) A petition is valid if:
(1) it states that it is intended to require an
election in the county for which the appraisal office is
established [district] or in the taxing unit on the question of
consolidation of assessing or collecting functions or both;
(2) it states the functions to be consolidated and
identifies the entity or office that will be required to perform the
functions; and
(3) it is signed by a number of qualified voters equal
to at least 10 percent of the number of qualified voters, according
to the most recent official list of qualified voters, residing in
the county for which the appraisal office is established
[district], if the petition is authorized by Subsection (a) [of
this section], or in the taxing unit, if the petition is authorized
by Subsection (b) [of this section], or by 10,000 qualified voters,
whichever number is less.
(e) If the commissioners court or the governing body finds
that the petition is valid, it shall order that an election be held
in the county for which the appraisal office is established
[district] or in the taxing unit on the next uniform election date
prescribed by the [Texas] Election Code that is more than 60 days
after the last day on which it could have acted to approve or
disapprove the petition. At the election, the ballots shall be
prepared to permit voting for or against the proposition:
"Requiring the (name of entity or office) to (assess, collect, or
assess and collect, as applicable) property taxes for (all taxing
units in [the appraisal district for] _____________ County [county]
or name of taxing unit or taxing units, as applicable)."
(f) If a majority of the qualified voters voting on the
question in the election favor the proposition, the entity or
office named by the ballot shall perform the functions named by the
ballot beginning with the next time property taxes are assessed or
collected, as applicable, that is more than 90 days after the date
of the election. If the governing bodies, [(]and the county
assessor-collector who governs the appraisal office [district
board of directors] when the office [district] is involved,[)]
agree, a function may be consolidated when performance of the
function begins in less than 90 days after the date of the election.
(j) An appraisal office [district] may not be required by an
election to assess, collect, or assess and collect taxes on
property outside the [district's] boundaries of the county for
which the office is established. A taxing unit may not be required
by an election to assess, collect, or assess and collect taxes on
property outside the boundaries of the county for which the
appraisal office [district] that appraises property for the taxing
unit is established.
SECTION 21. Section 6.29(b), Tax Code, is amended to read as
follows:
(b) A taxing unit whose taxes are collected by the collector
for another taxing unit, by an officer or employee of another taxing
unit or of an appraisal office [district], or by any other person
other than the taxing unit's own collector may require that
collector, officer, employee, or other person to give bond
conditioned on the faithful performance of that person's [his]
duties. To be effective, the bond must be made payable to and must
be approved by and paid for by the governing body of the taxing unit
requiring bond in an amount determined by the governing body. The
governing body may prescribe additional requirements for the bond.
SECTION 22. Section 6.41, Tax Code, is amended to read as
follows:
Sec. 6.41. APPRAISAL REVIEW BOARD. (a) The appraisal
review board is established for each appraisal office [district].
(b) The board consists of three members. However, the
county assessor-collector who governs the appraisal office
[district board of directors by resolution of a majority of its
members] may increase the size of the appraisal review board to the
number of members the county assessor-collector [board of
directors] considers appropriate.
(c) To be eligible to serve on the board, an individual must
be a resident of the county for which the appraisal office is
established [district] and must have resided in the county
[district] for at least two years.
(d) Members [Except as provided by Subsection (d-1),
members] of the board are appointed by majority vote of the state
senators and state representatives whose districts contain any part
of the territory included in the county for which [resolution of a
majority of] the appraisal office is established in the manner
provided by the county assessor-collector who governs the office
[district board of directors]. Each state senator and state
representative is entitled to one vote for a candidate for each
position to be filled on the board. A vacancy on the board is filled
in the same manner for the unexpired portion of the term.
(e) [(d-1) In a county with a population of 120,000 or more
the members of the board are appointed by the local administrative
district judge under Subchapter D, Chapter 74, Government Code, in
the county in which the appraisal district is established.] All
applications submitted to the appraisal office [district] or to the
[appraisal review] board from persons seeking appointment as a
member of the [appraisal review] board shall be delivered to the
pertinent state senators and state representatives [local
administrative district judge]. The appraisal office [district]
may provide the state senators and state representatives [local
administrative district judge] with information regarding whether
an applicant for appointment to or a member of the board owes any
delinquent ad valorem taxes to a taxing unit participating in the
appraisal office [district].
(f) [(d-2) A local administrative district judge making
appointments under Subsection (d-1) may make such appointments
directly or may, by written order, appoint from three to five
persons to perform the duties of appraisal review board
commissioner. If the local administrative district judge chooses
to appoint appraisal review board commissioners, each commissioner
shall possess the same qualifications as those required of an
appraisal review board member.
[(d-3)] The appraisal office [local administrative judge
making appointments under Subsection (d-1)] shall [cause the proper
officer to] notify the persons appointed to the board of their [such
appointees of such] appointment[,] and when and where they are to
appear.
(g) [(d-4) If appraisal review board commissioners are
appointed under Subsection (d-2), they shall meet as directed by
the local administrative district judge in order to complete their
duties.
[(d-5)] The appraisal office [district of the county] shall
provide to the pertinent state senators and state representatives
[local administrative district judge, or to the appraisal review
board commissioners, as the case may be,] the number of [appraisal
review] board positions that require appointment and shall provide
whatever reasonable assistance is requested by the state senators
and state representatives to make the appointments [local
administrative district judge or the commissioners].
(h) [(d-6) An appraisal review board commissioner is not
disqualified from serving as a member of the appraisal review
board.
[(d-7) If appraisal review board commissioners are
appointed under this section, the commissioners shall return a list
of proposed appraisal review board members to the local
administrative district judge at a time directed by such local
administrative judge, but in no event later than January 1 of each
year. Such list shall be composed of no less than five (5) names in
excess of the number of appraisal review board positions to be
filled by the local administrative district judge. The local
administrative judge may accept the proposed names, or reject the
proposed list and return the proposed list to the commissioners
upon which the commissioners shall propose a revised list until the
local administrative judge accepts the list.
[(d-8) Any appraisal review board commissioners appointed
pursuant to this section shall hold office for a term of one year
beginning January 1. A commissioner may be appointed to successive
terms at the discretion of the local administrative district judge.
[(d-9) Upon selection of the individuals who are to serve as
members of the appraisal review board, the local administrative
district judge shall enter an appropriate order designating such
members and setting each member's respective term of office, as
provided elsewhere in this section.
[(e)] Members of the board hold office for terms of two
years beginning January 1. The county assessor-collector who
governs the appraisal office [district board of directors by
resolution] shall provide for staggered terms, so that the terms of
as close to one-half of the members as possible expire each year.
[In making the initial or subsequent appointments, the board of
directors or the local administrative district judge or the judge's
designee shall designate those members who serve terms of one year
as needed to comply with this subsection.]
(i) [(f)] A member of the board may be removed from the
board by a majority vote of the state senators and state
representatives [appraisal district board of directors, or by the
local administrative district judge or the judge's designee, as
applicable,] that appointed the member. Grounds for removal are:
(1) a violation of Section 6.412, 6.413, 41.66(f), or
41.69;
(2) good cause relating to the attendance of members
at called meetings of the board as established by written policy
adopted by the county assessor-collector who governs [a majority
of] the appraisal office [district board of directors]; or
(3) clear and convincing evidence of repeated bias or
misconduct.
(j) [(g)] Subsection (a) does not preclude the county
assessor-collectors who govern the appraisal offices established
for [boards of directors of] two or more adjoining counties
[appraisal districts] from providing for the operation of a
consolidated appraisal review board by interlocal contract.
(k) [(h)] When [adjoining] appraisal offices established
for two or more adjoining counties [districts] by interlocal
contract have provided for the operation of a consolidated
appraisal review board:
(1) a reference in this or another section of this code
to the appraisal office [district] means the [adjoining] appraisal
offices established for the adjoining counties [districts];
(2) a reference in this or another section of this code
to the county assessor-collector who governs the appraisal office
[district board of directors] means the county assessor-collectors
who govern [boards of directors of] the [adjoining] appraisal
offices established for the adjoining counties [districts];
(3) a provision of this code that applies to an
appraisal review board also applies to the consolidated appraisal
review board; and
(4) a reference in this code to the appraisal review
board shall be construed to also refer to the consolidated
appraisal review board.
(l) [(i) This subsection applies only to an appraisal
district described by Subsection (d-1).] A chief appraiser or
another employee or agent of the appraisal office [district], a
member of the appraisal review board for the appraisal office
[district], the county assessor-collector who governs [a member of
the board of directors of] the appraisal office [district], a
property tax consultant, or an agent of a property owner commits an
offense if the person communicates with a state senator or state
representative whose district contains any part of the territory
included in the county for which the appraisal office is
established [the local administrative district judge] regarding
the appointment of appraisal review board members. This subsection
does not apply to:
(1) a communication between a member of the appraisal
review board and a state senator or state representative [the local
administrative district judge] regarding the member's
reappointment to the board;
(2) a communication between the taxpayer liaison
officer for the appraisal office [district] and a state senator or
state representative [the local administrative district judge] in
the course of the performance of the officer's clerical duties so
long as the officer does not offer an opinion or comment regarding
the appointment of appraisal review board members;
(3) a communication between a chief appraiser or
another employee or agent of the appraisal office [district], a
member of the appraisal review board for the appraisal office
[district], or the county assessor-collector who governs [a member
of the board of directors of] the appraisal office [district] and a
state senator or state representative [the local administrative
district judge] regarding information relating to or described by
Subsection (e), (g), or (i) [(d-1), (d-5), or (f)] of this section
or Section 411.1296, Government Code; or
(4) a communication between a property tax consultant
or a property owner or an agent of the property owner and the
taxpayer liaison officer for the appraisal office [district]
regarding information relating to or described by Subsection (i)
[(f)].
(m) The taxpayer liaison officer for the appraisal office
[district] shall report the contents of the communication [relating
to or] described by Subsection (l)(4) [(f)] to the pertinent state
senators and state representatives [local administrative district
judge].
(n) [(j)] A chief appraiser or another employee or agent of
an appraisal office [district] commits an offense if the person
communicates with a member of the appraisal review board for the
appraisal office [district], the county assessor-collector who
governs [a member of the board of directors of] the appraisal office
[district], or a state senator or state representative whose
district contains any part of the territory included in the county
for which [, if] the appraisal office is established [district is an
appraisal district described by Subsection (d-1), the local
administrative district judge] regarding a ranking, scoring, or
reporting of the percentage by which the appraisal review board or a
panel of the board reduces the appraised value of property.
(o) [(k)] An offense under Subsection (l) or (n) [(i) or
(j)] is a Class A misdemeanor.
SECTION 23. Sections 6.411(a), (b), and (c-1), Tax Code,
are amended to read as follows:
(a) A member of an appraisal review board commits an offense
if the member communicates with the chief appraiser or another
employee or the county assessor-collector who governs [a member of
the board of directors of] the appraisal office [district] for
which the appraisal review board is established in violation of
Section 41.66(f).
(b) A chief appraiser or another employee of an appraisal
office [district], the county assessor-collector who governs [a
member of a board of directors of] an appraisal office [district],
or a property tax consultant or attorney representing a party to a
proceeding before the appraisal review board commits an offense if
the person communicates with a member of the appraisal review board
established for the appraisal office [district] with the intent to
influence a decision by the member in the member's capacity as a
member of the appraisal review board.
(c-1) This section does not apply to communications with a
member of an appraisal review board by the chief appraiser or
another employee or the county assessor-collector who governs [a
member of the board of directors of] an appraisal office [district]
or a property tax consultant or attorney representing a party to a
proceeding before the appraisal review board:
(1) during a hearing on a protest or other proceeding
before the appraisal review board;
(2) that constitute social conversation;
(3) that are specifically limited to and involve
administrative, clerical, or logistical matters related to the
scheduling and operation of hearings, the processing of documents,
the issuance of orders, notices, and subpoenas, and the operation,
appointment, composition, or attendance at training of the
appraisal review board; or
(4) that are necessary and appropriate to enable the
county assessor-collector who governs [board of directors of] the
appraisal office or the pertinent state senators and state
representatives [district] to determine whether to appoint,
reappoint, or remove a person as a member or the chairman or
secretary of the appraisal review board.
SECTION 24. Sections 6.412(a), (b), (c), and (d), Tax Code,
are amended to read as follows:
(a) An individual is ineligible to serve on an appraisal
review board if the individual:
(1) is related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an individual who is engaged in the business of
appraising property for compensation for use in proceedings under
this title or of representing property owners for compensation in
proceedings under this title in the appraisal office [district] for
which the appraisal review board is established;
(2) owns property on which delinquent taxes have been
owed to a taxing unit for more than 60 days after the date the
individual knew or should have known of the delinquency unless:
(A) the delinquent taxes and any penalties and
interest are being paid under an installment payment agreement
under Section 33.02; or
(B) a suit to collect the delinquent taxes is
deferred or abated under Section 33.06 or 33.065; or
(3) is related within the third degree by
consanguinity or within the second degree by affinity, as
determined under Chapter 573, Government Code, to the county
assessor-collector who governs [a member of] the appraisal office
[district's board of directors].
(b) A member of an appraisal review board commits an offense
if the board member continues to hold office knowing that an
individual related within the second degree by consanguinity or
affinity, as determined under Chapter 573, Government Code, to the
board member is engaged in the business of appraising property for
compensation for use in proceedings under this title or of
representing property owners for compensation in proceedings under
this title in the appraisal office [district] for which the
appraisal review board is established. An offense under this
subsection is a Class B misdemeanor.
(c) A person is ineligible to serve on the appraisal review
board if the person is the county assessor-collector who governs
the appraisal office [a member of the board of directors], an
officer[,] or employee of the appraisal office [district], an
employee of the comptroller, or a member of the governing body,
officer, or employee of a taxing unit.
(d) A person is ineligible to serve on the appraisal review
board of an appraisal office [district] established for a county
having a population of more than 100,000 if the person:
(1) is a former county assessor-collector who governed
the appraisal office or a [member of the board of directors,] former
officer[,] or former employee of the appraisal office [district];
(2) served as a member of the governing body or officer
of a taxing unit for which the appraisal office [district]
appraises property, until the fourth anniversary of the date the
person ceased to be a member or officer; or
(3) appeared before the appraisal review board for
compensation during the two-year period preceding the date the
person is appointed.
SECTION 25. Sections 6.413(a), (b), and (c), Tax Code, are
amended to read as follows:
(a) An individual is not eligible to be appointed to or to
serve on the appraisal review board established for an appraisal
office [district] if the individual or a business entity in which
the individual has a substantial interest is a party to a contract
with the appraisal office [district] or with a taxing unit that
participates in the appraisal office [district].
(b) An appraisal office [district] may not enter into a
contract with a member of the appraisal review board established
for the appraisal office [district] or with a business entity in
which a member of the appraisal review board has a substantial
interest.
(c) A taxing unit may not enter into a contract with a member
of the appraisal review board established for an appraisal office
[district] in which the taxing unit participates or with a business
entity in which a member of the appraisal review board has a
substantial interest.
SECTION 26. Sections 6.414(a) and (f), Tax Code, are
amended to read as follows:
(a) The county assessor-collector who governs [board of
directors of] an appraisal office [district by resolution of a
majority of the members] may provide for a number of auxiliary
appraisal review board members that the county assessor-collector
[board] considers appropriate to hear taxpayer protests before the
appraisal review board and to assist the board in performing its
duties.
(f) An auxiliary board member is entitled to compensation as
provided by the appraisal office [district] budget and is not
entitled to a per diem or reimbursement of expenses under Section
6.42(c).
SECTION 27. Sections 6.42(a) and (c), Tax Code, are amended
to read as follows:
(a) A majority of the appraisal review board constitutes a
quorum. The county assessor-collector who governs [board of
directors of] the appraisal office [district by resolution] shall
select a chairman and a secretary from among the members of the
appraisal review board. The county assessor-collector who governs
[board of directors of] the appraisal office [district] is
encouraged to select as chairman of the appraisal review board a
member of the appraisal review board, if any, who has a background
in law and property appraisal.
(c) Members of the board are entitled to per diem set by the
appraisal office [district] budget for each day the board meets and
to reimbursement for actual and necessary expenses incurred in the
performance of board functions as provided by the office [district]
budget.
SECTION 28. Sections 6.43(a), (b), (c), and (e), Tax Code,
are amended to read as follows:
(a) The appraisal review board may employ legal counsel as
provided by the appraisal office [district] budget or use the
services of the county attorney.
(b) Except as provided by Subsection (c), an attorney may
not serve as legal counsel for the appraisal review board if the
attorney or a member of the attorney's law firm has during the year
before the date of the appraisal review board's hiring of the
attorney represented a property owner who owns property in the
county for which the appraisal office is established [district], a
taxing unit that participates in the appraisal office [district],
or the appraisal office [district] in a matter addressed by Section
1.111 or 25.25 of this code, Subtitle F of this title, or Subchapter
Z, Chapter 2003, Government Code.
(c) The county attorney for the county in which the
appraisal office [district] is established may provide legal
services to the appraisal review board notwithstanding that the
county attorney or an assistant to the county attorney represents
or has represented the appraisal office [district] or a taxing unit
that participates in the appraisal office [district] in any matter.
(e) An appraisal office [district] may specify in its budget
whether the appraisal review board may employ legal counsel or must
use the services of the county attorney. If the budget authorizes
the board to employ legal counsel, the budget must provide for
reasonable compensation to be paid to the attorney serving as legal
counsel. An appraisal office [district] may not require the board
to employ a specific attorney as legal counsel.
SECTION 29. Section 11.01, Tax Code, is amended to read as
follows:
Sec. 11.01. REAL [AND TANGIBLE PERSONAL] PROPERTY. (a) All
real [and tangible personal] property that this state has
jurisdiction to tax is taxable unless exempt by law.
(b) This state has jurisdiction to tax real property if
located in this state.
(c) For a tax year that begins after December 31, 2021,
tangible personal property is not taxable.
(d) On and after January 1, 2022, a provision of this code or
another law that would otherwise apply to the taxation of tangible
personal property for a tax year that begins after December 31,
2021, has no effect for that tax year.
(e) Subsections (c) and (d) do not apply to personal
property taxable under Section 1(l), Article VIII, Texas
Constitution. [This state has jurisdiction to tax tangible personal
property if the property is:
[(1) located in this state for longer than a temporary
period;
[(2) temporarily located outside this state and the
owner resides in this state; or
[(3) used continually, whether regularly or
irregularly, in this state.
[(d) Tangible personal property that is operated or located
exclusively outside this state during the year preceding the tax
year and on January 1 of the tax year is not taxable in this state.
[(e) For purposes of Subsection (c)(3), property is
considered to be used continually, whether regularly or
irregularly, in this state if the property is used in this state
three or more times on regular routes or for three or more completed
assignments occurring in close succession throughout the year. For
purposes of this subsection, a series of events are considered to
occur in close succession throughout the year if they occur in
sequence within a short period at intervals from the beginning to
the end of the year.]
SECTION 30. Section 11.18(a), Tax Code, is amended to read
as follows:
(a) An organization that qualifies as a charitable
organization as provided by this section is entitled to an
exemption from taxation of:
(1) the buildings [and tangible personal property]
that:
(A) are owned by the charitable organization; and
(B) except as permitted by Subsection (b), are
used exclusively by qualified charitable organizations; and
(2) the real property owned by the charitable
organization consisting of:
(A) an incomplete improvement that:
(i) is under active construction or other
physical preparation; and
(ii) is designed and intended to be used
exclusively by qualified charitable organizations; and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the use of the
improvement by qualified charitable organizations.
SECTION 31. Section 11.181(c), Tax Code, is amended to read
as follows:
(c) An organization entitled to an exemption under
Subsection (a) is also entitled to an exemption from taxation of any
building [or tangible personal property] the organization owns and
uses in the administration of its acquisition, building, repair, or
sale of property. To qualify for an exemption under this
subsection, property must be used exclusively by the charitable
organization, except that another individual or organization may
use the property for activities incidental to the charitable
organization's use that benefit the beneficiaries of the charitable
organization.
SECTION 32. Section 11.182(f), Tax Code, is amended to read
as follows:
(f) An organization entitled to an exemption under
Subsection (b) is also entitled to an exemption from taxation of any
building [or tangible personal property] the organization owns and
uses in the administration of its acquisition, building, repair,
sale, or rental of property. To qualify for an exemption under this
subsection, property must be used exclusively by the organization,
except that another person may use the property for activities
incidental to the organization's use that benefit the beneficiaries
of the organization.
SECTION 33. Section 11.1827(d), Tax Code, is amended to
read as follows:
(d) A community land trust entitled to an exemption from
taxation by a taxing unit under Subsection (b) is also entitled to
an exemption from taxation by the taxing unit of any real [or
tangible personal] property the trust owns and uses in the
administration of its acquisition, construction, repair, sale, or
leasing of property. To qualify for an exemption under this
subsection, property must be used exclusively by the trust, except
that another person may use the property for activities incidental
to the trust's use that benefit the beneficiaries of the trust.
SECTION 34. Section 11.184(c), Tax Code, is amended to read
as follows:
(c) A qualified charitable organization is entitled to an
exemption from taxation of:
(1) the buildings and other real property [and the
tangible personal property] that:
(A) are owned by the organization; and
(B) except as permitted by Subsection (d), are
used exclusively by the organization and other organizations
eligible for an exemption from taxation under this section or
Section 11.18; and
(2) the real property owned by the organization
consisting of:
(A) an incomplete improvement that:
(i) is under active construction or other
physical preparation; and
(ii) is designed and intended to be used
exclusively by the organization and other organizations eligible
for an exemption from taxation under this section or Section 11.18;
and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the use of the
improvement by the organization and other organizations eligible
for an exemption from taxation under this section or Section 11.18.
SECTION 35. Section 11.185(c), Tax Code, is amended to read
as follows:
(c) An organization entitled to an exemption under
Subsection (a) is also entitled to an exemption from taxation of any
building [or tangible personal property] the organization owns and
uses in the administration of its acquisition, building, repair, or
sale of property. To qualify for an exemption under this
subsection, property must be used exclusively by the charitable
organization, except that another individual or organization may
use the property for activities incidental to the charitable
organization's use that benefit the beneficiaries of the charitable
organization.
SECTION 36. Sections 11.20(a), (d), (f), (g), (h), (j), and
(k), Tax Code, are amended to read as follows:
(a) An organization that qualifies as a religious
organization as provided by Subsection (c) is entitled to an
exemption from taxation of:
(1) the real property that is owned by the religious
organization, is used primarily as a place of regular religious
worship, and is reasonably necessary for engaging in religious
worship;
(2) [the tangible personal property that is owned by
the religious organization and is reasonably necessary for engaging
in worship at the place of worship specified in Subdivision (1);
[(3)] the real property that is owned by the religious
organization and is reasonably necessary for use as a residence
(but not more than one acre of land for each residence) if the
property:
(A) is used exclusively as a residence for those
individuals whose principal occupation is to serve in the clergy of
the religious organization; and
(B) produces no revenue for the religious
organization;
(3) [(4) the tangible personal property that is owned
by the religious organization and is reasonably necessary for use
of the residence specified by Subdivision (3);
[(5)] the real property owned by the religious
organization consisting of:
(A) an incomplete improvement that is under
active construction or other physical preparation and that is
designed and intended to be used by the religious organization as a
place of regular religious worship when complete; and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the religious
organization's use of the improvement as a place of regular
religious worship;
(4) [(6)] the land that the religious organization
owns for the purpose of expansion of the religious organization's
place of regular religious worship or construction of a new place of
regular religious worship if:
(A) the religious organization qualifies other
property, including a portion of the same tract or parcel of land,
owned by the organization for an exemption under Subdivision (1) or
(3) [(5)]; and
(B) the land produces no revenue for the
religious organization; and
(5) [(7)] the real property owned by the religious
organization that is leased to another person and used by that
person for the operation of a school that qualifies as a school
under Section 11.21(d).
(d) Use of property that qualifies for the exemption
prescribed by Subsection (a)(1) [or (2)] or by Subsection (h)(1)
for occasional secular purposes other than religious worship does
not result in loss of the exemption if the primary use of the
property is for religious worship and all income from the other use
is devoted exclusively to the maintenance and development of the
property as a place of religious worship.
(f) A property may not be exempted under Subsection (a)(3)
[(a)(5)] for more than three years.
(g) For purposes of Subsection (a)(3) [(a)(5)], an
incomplete improvement is under physical preparation if the
religious organization has engaged in architectural or engineering
work, soil testing, land clearing activities, or site improvement
work necessary for the construction of the improvement or has
conducted an environmental or land use study relating to the
construction of the improvement.
(h) Property owned by this state or a political subdivision
of this state, including a leasehold or other possessory interest
in the property, that is held or occupied by an organization that
qualifies as a religious organization as provided by Subsection (c)
is entitled to an exemption from taxation if the property:
(1) is used by the organization primarily as a place of
regular religious worship and is reasonably necessary for engaging
in religious worship; or
(2) meets the qualifications for an exemption under
Subsection (a)(3) [(a)(5)].
(j) A tract of land that is contiguous to the tract of land
on which the religious organization's place of regular religious
worship is located may not be exempted under Subsection (a)(4)
[(a)(6)] for more than six years. A tract of land that is not
contiguous to the tract of land on which the religious
organization's place of regular religious worship is located may
not be exempted under Subsection (a)(4) [(a)(6)] for more than
three years. For purposes of this subsection, a tract of land is
considered to be contiguous with another tract of land if the tracts
are divided only by a road, railroad track, river, or stream.
(k) For purposes of Subsection (a)(4) [(a)(6)], an
application or statement accompanying an application for the
exemption stating that the land is owned for the purposes described
by Subsection (a)(4) [(a)(6)] and signed by an authorized officer
of the organization is sufficient to establish that the land is
owned for those purposes.
SECTION 37. Sections 11.201(a) and (c), Tax Code, are
amended to read as follows:
(a) If land is sold or otherwise transferred to another
person in a year in which the land receives an exemption under
Section 11.20(a)(4) [11.20(a)(6)], an additional tax is imposed on
the land equal to the tax that would have been imposed on the land
had the land been taxed for each of the five years preceding the
year in which the sale or transfer occurs in which the land received
an exemption under that subsection, plus interest at an annual rate
of seven percent calculated from the dates on which the taxes would
have become due.
(c) If only part of a parcel of land that is exempted under
Section 11.20(a)(4) [11.20(a)(6)] is sold or transferred, the tax
applies only to that part of the parcel and equals the taxes that
would have been imposed had that part been taxed.
SECTION 38. Sections 11.21(a), (b), and (f), Tax Code, are
amended to read as follows:
(a) A person is entitled to an exemption from taxation of:
(1) the buildings [and tangible personal property]
that the person owns and that are used for a school that is
qualified as provided by Subsection (d) if:
(A) the school is operated exclusively by the
person owning the property;
(B) except as permitted by Subsection (b), the
buildings [and tangible personal property] are used exclusively for
educational functions; and
(C) the buildings [and tangible personal
property] are reasonably necessary for the operation of the school;
and
(2) the real property owned by the person consisting
of:
(A) an incomplete improvement that:
(i) is under active construction or other
physical preparation; and
(ii) is designed and intended to be used for
a school that is qualified as provided by Subsection (d); and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the use of the
improvement for a school that is qualified as provided by
Subsection (d).
(b) Use of exempt [tangible] property for functions other
than educational functions does not result in loss of an exemption
authorized by this section if those other functions are incidental
to use of the property for educational functions and benefit the
students or faculty of the school.
(f) Notwithstanding Subsection (a), a person is entitled to
an exemption from taxation of the buildings [and tangible personal
property] the person acquires for use for a school that meets each
requirement of Subsection (d) if:
(1) the person authorizes the former owner to continue
to use the property pending the use of the property for a school;
and
(2) the former owner would be entitled to an exemption
from taxation of the property if the former owner continued to own
the property.
SECTION 39. Section 11.23(m), Tax Code, is amended to read
as follows:
(m) National Hispanic Institute. The National Hispanic
Institute is entitled to an exemption from taxation of the real [and
tangible personal] property it owns as long as the organization is
exempt from federal income taxation under Section 501(a), Internal
Revenue Code of 1986, as an organization described by Section
501(c)(3) of that code.
SECTION 40. Section 11.231(b), Tax Code, is amended to read
as follows:
(b) An association that qualifies as a nonprofit community
business organization as provided by this section is entitled to an
exemption from taxation of:
(1) the buildings [and tangible personal property]
that:
(A) are owned by the nonprofit community business
organization; and
(B) except as permitted by Subsection (c), are
used exclusively by qualified nonprofit community business
organizations to perform their primary functions; and
(2) the real property owned by the nonprofit community
business organization consisting of:
(A) an incomplete improvement that:
(i) is under active construction or other
physical preparation; and
(ii) is designed and intended to be used
exclusively by qualified nonprofit community business
organizations; and
(B) the land on which the incomplete improvement
is located that will be reasonably necessary for the use of the
improvement by qualified nonprofit community business
organizations.
SECTION 41. Sections 11.43(a), (b), (c), and (e), Tax Code,
are amended to read as follows:
(a) To receive an exemption, a person claiming the
exemption, other than an exemption authorized by Section 11.11,
11.12, or [11.14, 11.145,] 11.146[, 11.15, 11.16, 11.161, or 11.25
of this code], must apply for the exemption. To apply for an
exemption, a person must file an exemption application form with
the chief appraiser for the [each] appraisal office established for
each county [district] in which the property subject to the claimed
exemption has situs.
(b) Except as provided by Subsection (c) and by Section
[Sections] 11.184 [and 11.437], a person required to apply for an
exemption must apply each year the person claims entitlement to the
exemption.
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
[11.254,] 11.27, [11.271,] 11.29, 11.30, or 11.31, [or 11.315,]
once allowed, need not be claimed in subsequent years, and except as
otherwise provided by Subsection (e), the exemption applies to the
property until it changes ownership or the person's qualification
for the exemption changes. However, except as provided by
Subsection (r), the chief appraiser may require a person allowed
one of the exemptions in a prior year to file a new application to
confirm the person's current qualification for the exemption by
delivering a written notice that a new application is required,
accompanied by an appropriate application form, to the person
previously allowed the exemption. If the person previously allowed
the exemption is 65 years of age or older, the chief appraiser may
not cancel the exemption due to the person's failure to file the new
application unless the chief appraiser complies with the
requirements of Subsection (q), if applicable.
(e) Except as provided by Section 11.422, 11.431, 11.433,
11.434, 11.435, or 11.439, [or 11.4391,] if a person required to
apply for an exemption in a given year fails to file timely a
completed application form, the person may not receive the
exemption for that year.
SECTION 42. Section 21.06(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Section 21.08 [Sections 21.07
through 21.09 of this code], intangible property is taxable by a
taxing unit if the owner of the property resides in the unit on
January 1, unless the property normally is used in this state for
business purposes outside the unit. In that event, the intangible
property is taxable by each taxing unit in which the property
normally is used for business purposes.
SECTION 43. Sections 22.01(a), (b), (c), (c-2), (f), and
(g), Tax Code, are amended to read as follows:
(a) [Except as provided by Chapter 24, a person shall render
for taxation all tangible personal property used for the production
of income that the person owns or that the person manages and
controls as a fiduciary on January 1.] A rendition statement shall
contain:
(1) the name and address of the property owner;
(2) a description of the property by type or category;
(3) [if the property is inventory, a description of
each type of inventory and a general estimate of the quantity of
each type of inventory;
[(4)] the physical location or taxable situs of the
property; and
(4) [(5)] the property owner's good faith estimate of
the market value of the property or, at the option of the property
owner, the historical cost when new and the year of acquisition of
the property.
(b) When required by the chief appraiser, a person shall
render for taxation any [other] taxable property that the person
[he] owns or that the person [he] manages and controls as a
fiduciary on January 1.
(c) A person may render for taxation any property that the
person [he] owns or that the person [he] manages and controls as a
fiduciary on January 1, although the person [he] is not required to
render it by Subsection [(a) or] (b) [of this section].
(c-2) With the consent of the property owner, a secured
party may render for taxation any property of the property owner in
which the secured party has a security interest on January 1,
although the secured party is not required to render the property by
Subsection [(a) or] (b). This subsection applies only to property
that has a historical cost when new of more than $50,000.
(f) Notwithstanding Subsection [Subsections] (a) [and (b)],
a rendition statement of a person who owns [tangible personal]
property [used for the production of income] located in the county
for which the appraisal office is established [district] that, in
the owner's opinion, has an aggregate value of less than $20,000 is
required to contain only:
(1) the name and address of the property owner;
(2) a general description of the property by type or
category; and
(3) the physical location or taxable situs of the
property.
(g) A person's good faith estimate of the market value of
the property under Subsection (a)(4) [(a)(5)] is solely for the
purpose of compliance with any [the] requirement to render
[tangible personal] property and is inadmissible in any subsequent
protest, hearing, appeal, suit, or other proceeding under this
title involving the property, except for:
(1) a proceeding to determine whether the person
complied with this section;
(2) a proceeding under Section 22.29(b); or
(3) a protest under Section 41.41.
SECTION 44. Section 22.02, Tax Code, is amended to read as
follows:
Sec. 22.02. RENDITION OF PROPERTY LOSING EXEMPTION DURING
TAX YEAR [OR FOR WHICH EXEMPTION APPLICATION IS DENIED]. [(a)] If
an exemption applicable to a property on January 1 terminates
during the tax year, the person who owns or acquires the property on
the date applicability of the exemption terminates shall render the
property for taxation within 30 days after the date of termination.
[(b) If the chief appraiser denies an application for an
exemption for property described by Section 22.01(a), the person
who owns the property on the date the application is denied shall
render the property for taxation in the manner provided by Section
22.01 within 30 days after the date of denial.]
SECTION 45. Section 22.05, Tax Code, is amended to read as
follows:
Sec. 22.05. RENDITION BY RAILROAD. (a) A [In addition to
other reports required by Chapter 24 of this code, a] railroad
corporation shall render the real property the railroad corporation
owns or possesses as of January 1.
(b) The rendition shall:
(1) list all real property other than the property
covered by Subdivision (2) [of this subsection]; and
(2) list the number of miles of railroad together with
the market value per mile, which value shall include right-of-way,
roadbed, superstructure, and all buildings and improvements used in
the operation of the railroad[; and
[(3) list all personal property as required by Section
22.01 of this code].
SECTION 46. The heading to Section 22.07, Tax Code, is
amended to read as follows:
Sec. 22.07. STATEMENT INDICATING HOW VALUE RENDERED
[INSPECTION OF PROPERTY].
SECTION 47. Section 22.07, Tax Code, is amended by amending
Subsection (c) and adding Subsection (c-1) to read as follows:
(c) The chief appraiser may request, either in writing or by
electronic means, that the property owner provide a statement
containing supporting information indicating how the value
rendered under Section 22.01(a)(4) [22.01(a)(5)] was determined.
The statement must:
(1) summarize information sufficient to identify the
property, including:
(A) the physical and economic characteristics
relevant to the opinion of value, if appropriate; and
(B) the source of the information used;
(2) state the effective date of the opinion of value;
and
(3) explain the basis of the value rendered.
(c-1) If the property owner is a business with 50 employees
or less, the property owner may base the estimate of value on the
depreciation schedules used for federal income tax purposes.
SECTION 48. Section 23.01(f), Tax Code, is amended to read
as follows:
(f) The selection of comparable properties and the
application of appropriate adjustments for the determination of an
appraised value of property by any person under Section 41.43(b)
[41.43(b)(3)] or 42.26(a) [42.26(a)(3)] must be based on the
application of generally accepted appraisal methods and
techniques. Adjustments must be based on recognized methods and
techniques that are necessary to produce a credible opinion.
SECTION 49. Section 23.0101, Tax Code, is amended to read as
follows:
Sec. 23.0101. CONSIDERATION OF ALTERNATE APPRAISAL
METHODS. (a) Except as provided by Subsections (b) and (c), in
[In] determining the market value of property, the chief appraiser
shall consider the cost, income, and market data comparison methods
of appraisal and use the most appropriate method.
(b) In determining the market value of residential real
property consisting of a single-family home, duplex, triplex, or
quadraplex constructed by or on behalf of the owner, the chief
appraiser shall use the cost method of appraisal.
(c) Except as otherwise provided by this title, in
determining the market value of real property other than a
single-family home, duplex, triplex, quadraplex, or tract of
unimproved land, the chief appraiser shall use the income method of
appraisal.
SECTION 50. Section 23.014, Tax Code, is amended to read as
follows:
Sec. 23.014. EXCLUSION OF PROPERTY AS REAL PROPERTY. In
[Except as provided by Section 23.24(b), in] determining the market
value of real property, the chief appraiser shall analyze the
effect on that value of, and exclude from that value the value of,
any:
(1) tangible personal property, including trade
fixtures;
(2) intangible personal property; or
(3) other property that is not subject to appraisal as
real property.
SECTION 51. Section 23.02, Tax Code, is amended to read as
follows:
Sec. 23.02. REAPPRAISAL OF PROPERTY DAMAGED IN DISASTER
AREA. (a) The chief appraiser of an appraisal office that
appraises property for [governing body of] a taxing unit that is
located partly or entirely inside an area declared to be a disaster
area by the governor shall reappraise [may authorize reappraisal
of] all property damaged in the disaster at its market value
immediately after the disaster.
(b) The chief appraiser [If a taxing unit authorizes a
reappraisal pursuant to this section, the appraisal office] shall
complete the reappraisal as soon as practicable. The chief
appraiser [appraisal office] shall include on the appraisal
records, in addition to other information required or authorized by
law:
(1) the date of the disaster; and
(2) the appraised value of the property after the
disaster[; and
[(3) if the reappraisal is not authorized by all
taxing units in which the property is located, an indication of the
taxing units to which the reappraisal applies].
(c) A taxing unit for which property is reappraised [that
authorizes a reappraisal] under this section must pay the appraisal
office [district] all the costs of making the reappraisal. If
property in the same territory is reappraised for two or more taxing
units [provide for the reappraisal in the same territory], each
taxing unit shall share the costs of the reappraisal in that
territory in the proportion the total dollar amount of taxes each
taxing unit imposed in that territory in the preceding year bears to
the total dollar amount of taxes all taxing units [providing for
reappraisal of that territory] imposed in that territory in the
preceding year.
(d) If property damaged in a disaster is reappraised for a
taxing unit as provided by this section, the governing body of the
taxing unit shall provide for prorating the taxes on the property
for the year in which the disaster occurred. The [If the taxes are]
prorated[,] taxes due on the property are determined as follows:
the taxes on the property based on its value on January 1 of that
year are multiplied by a fraction, the denominator of which is 365
and the numerator of which is the number of days before the date the
disaster occurred; the taxes on the property based on its
reappraised value are multiplied by a fraction, the denominator of
which is 365 and the numerator of which is the number of days,
including the date the disaster occurred, remaining in the year;
and the total of the two amounts is the amount of taxes on the
property for the year.
SECTION 52. Sections 23.12(a) and (f), Tax Code, are
amended to read as follows:
(a) The [Except as provided by Sections 23.121, 23.1241,
23.124, and 23.127, the] market value of a real property [an]
inventory is the price for which it would sell as a unit to a
purchaser who would continue the business. A real property [An]
inventory includes [shall include] residential real property which
has never been occupied as a residence and is held for sale in the
ordinary course of a trade or business, provided that the
residential real property remains unoccupied, is not leased or
rented, and produces no income.
(f) The owner of an inventory [other than a dealer's motor
vehicle inventory as that term is defined by Section 23.121, a
dealer's heavy equipment inventory as that term is defined by
Section 23.1241, or a dealer's vessel and outboard motor inventory
as that term is defined by Section 23.124, or a retail manufactured
housing inventory as that term is defined by Section 23.127] may
elect to have the inventory appraised at its market value as of
September 1 of the year preceding the tax year to which the
appraisal applies by filing an application with the chief appraiser
requesting that the inventory be appraised as of September 1. The
application must clearly describe the inventory to which it applies
and be signed by the owner of the inventory. The application
applies to the appraisal of the inventory in each tax year that
begins after the next August 1 following the date the application is
filed with the chief appraiser unless the owner of the inventory by
written notice filed with the chief appraiser revokes the
application or the ownership of the inventory changes. A notice
revoking the application is effective for each tax year that begins
after the next September following the date the notice of
revocation is filed with the chief appraiser.
SECTION 53. Section 23.23(a), Tax Code, is amended to read
as follows:
(a) Regardless [Notwithstanding the requirements of Section
25.18 and regardless] of whether the appraisal office has appraised
the property and determined the market value of the property for the
tax year, an appraisal office may increase the appraised value of a
residence homestead for a tax year to an amount not to exceed the
lesser of:
(1) the market value of the property for the most
recent tax year that the market value was determined by the
appraisal office; or
(2) the sum of:
(A) 10 percent of the appraised value of the
property for the preceding tax year;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property.
SECTION 54. Subchapter B, Chapter 23, Tax Code, is amended
by adding Section 23.231 to read as follows:
Sec. 23.231. LIMITATION ON APPRAISED VALUE OF CERTAIN REAL
PROPERTY. (a) This section applies only to residential real
property consisting of a single-family home, duplex, triplex, or
quadraplex or to a tract of unimproved land that the owner acquired
as a bona fide purchaser for value.
(b) This section applies to property only if the owner
discloses the purchase price the owner paid for the property to the
appraisal office.
(c) This section does not apply to property if:
(1) the purchase of the property was made:
(A) pursuant to a court order;
(B) from a trustee in bankruptcy;
(C) by one co-owner from one or more other
co-owners;
(D) from a spouse or a person or persons within
the first or second degree of lineal consanguinity of one or more of
the purchasers; or
(E) from a governmental entity; or
(2) the chief appraiser determines that the owner of
the property was not a bona fide purchaser for value under criteria
established by rules adopted by the comptroller for that purpose.
(d) Regardless of whether the appraisal office has
appraised the property and determined the market value of the
property for the tax year, the appraised value of property for a tax
year may not exceed the lesser of:
(1) the market value of the property; or
(2) the sum of:
(A) the purchase price paid by the property owner
for the property; and
(B) the market value of each new improvement to
the property as of January 1 of the first tax year in which the
improvement was added to the appraisal roll.
(e) When appraising property, the chief appraiser shall:
(1) appraise the property at its market value; and
(2) include in the appraisal records both the market
value of the property and the amount computed under Subsection
(d)(2).
(f) The limitation provided by Subsection (a) takes effect
as to property on January 1 of the first tax year the owner
qualifies the property for a limitation under this section. The
limitation expires on January 1 of the first tax year that neither
the owner of the property when the limitation took effect nor the
owner's spouse or surviving spouse qualifies for the limitation.
(g) This section does not apply to property appraised under
Subchapter C, D, E, F, or G.
(h) To receive a limitation on appraised value under this
section, the owner of the property must apply for the limitation.
To apply for the limitation, the owner must file an application with
the chief appraiser for each appraisal office in which the property
subject to the claimed limitation has situs. The application must
be filed not later than May 1 of the year after the year in which the
owner acquired the property. The comptroller by rule shall
prescribe the form for the application to ensure that the applicant
furnishes the information necessary to determine the applicant's
eligibility for the limitation, including the price for which the
applicant acquired the property.
(i) In this section, "new improvement" means an improvement
to property made since the owner acquired the property that
increases the market value of the property. The term does not
include repairs to or ordinary maintenance of an existing structure
or the grounds or another feature of the property.
(j) Notwithstanding Subsections (d) and (i) and except as
provided by Subdivision (2) of this subsection, an improvement to
property that would otherwise constitute a new improvement is not
treated as a new improvement if the improvement is a replacement
structure for a structure that was rendered uninhabitable or
unusable by a casualty or by wind or water damage. For purposes of
appraising the property under Subsection (d) in the tax year in
which the structure would have constituted a new improvement:
(1) the appraised value the property would have had in
the preceding tax year if the casualty or damage had not occurred is
considered to be the appraised value of the property for that year,
regardless of whether that appraised value exceeds the actual
appraised value of the property for that year as limited by
Subsection (d); and
(2) the replacement structure is considered to be a
new improvement only if:
(A) the square footage of the replacement
structure exceeds that of the replaced structure as that structure
existed before the casualty or damage occurred; or
(B) the exterior of the replacement structure is
of higher quality construction and composition than that of the
replaced structure.
(k) In this subsection, "disaster recovery program" means
the disaster recovery program administered by the General Land
Office that is funded with community development block grant
disaster recovery money authorized by the Consolidated Security,
Disaster Assistance, and Continuing Appropriations Act, 2009 (Pub.
L. No. 110-329), and the Consolidated and Further Continuing
Appropriations Act, 2012 (Pub. L. No. 112-55). Notwithstanding
Subsection (j)(2), and only to the extent necessary to satisfy the
requirements of the disaster recovery program, a replacement
structure described by that subdivision is not considered to be a
new improvement if to satisfy the requirements of the disaster
recovery program it was necessary that:
(1) the square footage of the replacement structure
exceed that of the replaced structure as that structure existed
before the casualty or damage occurred; or
(2) the exterior of the replacement structure be of
higher quality construction and composition than that of the
replaced structure.
(l) For purposes of Subsection (d)(2)(B), an improvement is
considered to be a new improvement in a tax year if the market value
of the improvement increased from the value of the improvement in
the preceding tax year because the improvement was not complete in
the preceding tax year.
SECTION 55. The heading to Section 25.18, Tax Code, is
amended to read as follows:
Sec. 25.18. REAPPRAISAL OF PROPERTY [PERIODIC
REAPPRAISALS].
SECTION 56. Section 25.18(a), Tax Code, is amended to read
as follows:
(a) An [Each] appraisal office may reappraise [shall
implement the plan for periodic reappraisal of] property if the
chief appraiser determines that conditions warrant the reappraisal
[approved by the board of directors under Section 6.05(i)].
SECTION 57. Section 25.19(b), Tax Code, is amended to read
as follows:
(b) The chief appraiser shall [separate real from personal
property and] include in the notice for each property:
(1) a list of the taxing units in which the property is
taxable;
(2) the appraised value of the property in the
preceding year;
(3) the taxable value of the property in the preceding
year for each taxing unit taxing the property;
(4) the appraised value of the property for the
current year, the kind and amount of each exemption and partial
exemption, if any, approved for the property for the current year
and for the preceding year, and, if an exemption or partial
exemption that was approved for the preceding year was canceled or
reduced for the current year, the amount of the exemption or partial
exemption canceled or reduced;
(5) if the appraised value is greater than it was in
the preceding year, the amount of tax that would be imposed on the
property on the basis of the tax rate for the preceding year;
(6) in italic typeface, the following statement: "The
Texas Legislature does not set the amount of your local taxes. Your
property tax burden is decided by your locally elected officials,
and all inquiries concerning your taxes should be directed to those
officials";
(7) a detailed explanation of the time and procedure
for protesting the value;
(8) the date and place the appraisal review board will
begin hearing protests; and
(9) a brief explanation that the governing body of
each taxing unit decides whether or not taxes on the property will
increase and the appraisal office [district] only determines the
value of the property.
SECTION 58. Sections 26.012(6) and (15), Tax Code, are
amended to read as follows:
(6) "Current total value" means the total taxable
value of property listed on the appraisal roll for the current year,
including all appraisal roll supplements and corrections as of the
date of the calculation, less the taxable value of property
exempted for the current tax year for the first time under Section
11.31 [or 11.315], except that:
(A) the current total value for a school district
excludes:
(i) the total value of homesteads that
qualify for a tax limitation as provided by Section 11.26; and
(ii) new property value of property that is
subject to an agreement entered into under Chapter 313; and
(B) the current total value for a county,
municipality, or junior college district excludes the total value
of homesteads that qualify for a tax limitation provided by Section
11.261.
(15) "Lost property levy" means the amount of taxes
levied in the preceding year on property value that was taxable in
the preceding year but is not taxable in the current year because
the property is exempt in the current year under a provision of this
code [other than Section 11.251 or 11.253], the property has
qualified for special appraisal under Chapter 23 in the current
year, or the property is located in territory that has ceased to be
a part of the unit since the preceding year.
SECTION 59. Section 26.09(b), Tax Code, is amended to read
as follows:
(b) [The county assessor-collector shall add the properties
and their values certified to him as provided by Chapter 24 of this
code to the appraisal roll for county tax purposes.] The county
assessor-collector shall use the appraisal roll certified to the
county assessor-collector [him] as provided by Section 26.01 [with
the added properties and values] to calculate county taxes.
SECTION 60. Section 31.032(a), Tax Code, is amended to read
as follows:
(a) This section applies only to:
(1) real property that:
(A) is:
(i) the residence homestead of the owner or
consists of property that is used for residential purposes and that
has fewer than five living units; or
(ii) owned or leased by a business entity
that had not more than the amount calculated as provided by
Subsection (h) in gross receipts in the entity's most recent
federal tax year or state franchise tax annual period, according to
the applicable federal income tax return or state franchise tax
report of the entity;
(B) is located in a disaster area; and
(C) has been damaged as a direct result of the
disaster; and
(2) [tangible personal property that is owned or
leased by a business entity described by Subdivision (1)(A)(ii);
and
[(3)] taxes that are imposed on the property by a
taxing unit before the first anniversary of the disaster.
SECTION 61. Section 41.43(b), Tax Code, is amended to read
as follows:
(b) A protest on the ground of unequal appraisal of property
shall be determined in favor of the protesting party unless the
appraisal office [district] establishes that[:
[(1) the appraisal ratio of the property is equal to or
less than the median level of appraisal of a reasonable and
representative sample of other properties in the appraisal
district;
[(2) the appraisal ratio of the property is equal to or
less than the median level of appraisal of a sample of properties in
the appraisal district consisting of a reasonable number of other
properties similarly situated to, or of the same general kind or
character as, the property subject to the protest; or
[(3)] the appraised value of the property is equal to
or less than the median appraised value of a reasonable number of
comparable properties appropriately adjusted.
SECTION 62. Section 41.44(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Subsections (b), (c), (c-1), and
(c-2), to be entitled to a hearing and determination of a protest,
the property owner initiating the protest must file a written
notice of the protest with the appraisal review board having
authority to hear the matter protested:
(1) not later than May 15 or the 30th day after the
date that notice to the property owner was delivered to the property
owner as provided by Section 25.19, whichever is later;
(2) in the case of a protest of a change in the
appraisal records ordered as provided by Subchapter A of this
chapter or by Chapter 25, not later than the 30th day after the date
notice of the change is delivered to the property owner; or
(3) in the case of a determination that a change in the
use of land appraised under Subchapter C, D, E, or H, Chapter 23,
has occurred, not later than the 30th day after the date the notice
of the determination is delivered to the property owner[; or
[(4) in the case of a determination of eligibility for
a refund under Section 23.1243, not later than the 30th day after
the date the notice of the determination is delivered to the
property owner].
SECTION 63. Section 42.01, Tax Code, is amended to read as
follows:
Sec. 42.01. RIGHT OF APPEAL BY PROPERTY OWNER. (a) A
property owner is entitled to appeal[:
[(1)] an order of the appraisal review board
determining:
(1) [(A)] a protest by the property owner as provided
by Subchapter C of Chapter 41;
(2) [(B)] a determination of an appraisal review board
on a motion filed under Section 25.25; or
(3) [(C)] a determination of an appraisal review board
that the property owner has forfeited the right to a final
determination of a motion filed under Section 25.25 or of a protest
under Section 41.411 for failing to comply with the prepayment
requirements of Section 25.26 or 41.4115, as applicable[; or
[(D) a determination of an appraisal review board
of eligibility for a refund requested under Section 23.1243; or
[(2) an order of the comptroller issued as provided by
Subchapter B, Chapter 24, apportioning among the counties the
appraised value of railroad rolling stock owned by the property
owner].
(b) A property owner who establishes that the owner did not
forfeit the right to a final determination of a motion or of a
protest in an appeal under Subsection (a)(3) [(a)(1)(C)] is
entitled to a final determination of the court, as applicable:
(1) of the motion filed under Section 25.25; or
(2) of the protest under Section 41.411 of the failure
of the chief appraiser or appraisal review board to provide or
deliver a notice to which the property owner is entitled, and, if
failure to provide or deliver the notice is established, of a
protest made by the property owner on any other grounds of protest
authorized by this title relating to the property to which the
notice applies.
SECTION 64. Section 42.21(b), Tax Code, is amended to read
as follows:
(b) A petition for review brought under Section 42.02 must
be brought against the owner of the property involved in the appeal.
A petition for review brought under Section 42.031 must be brought
against the appraisal office [district] and against the owner of
the property involved in the appeal. [A petition for review brought
under Section 42.01(a)(2) or 42.03 must be brought against the
comptroller.] Any other petition for review under this chapter
must be brought against the appraisal office [district]. A
petition for review may not be brought against the appraisal review
board. An appraisal office [district] may hire an attorney that
represents the office [district] to represent the appraisal review
board established for the office [district] to file an answer and
obtain a dismissal of a suit filed against the appraisal review
board in violation of this subsection.
SECTION 65. Section 42.22, Tax Code, as amended by Chapters
667 (S.B. 548) and 1033 (H.B. 301), Acts of the 73rd Legislature,
Regular Session, 1993, is reenacted and amended to read as follows:
Sec. 42.22. VENUE. (a) Except as provided by Subsection
[Subsections] (b) of this section [and (c),] and by Section 42.221,
venue is in the county in which the appraisal review board that
issued the order appealed is located.
(b) Venue of an action brought under Section 42.01(a)
[42.01(1)] is in the county in which the property is located or in
the county in which the appraisal review board that issued the order
is located.
[(c) Venue is in Travis County if the order appealed was
issued by the comptroller.]
SECTION 66. Sections 42.23(f) and (i), Tax Code, are
amended to read as follows:
(f) For purposes of a no-evidence motion for summary
judgment filed by a party to an appeal under this chapter, the offer
of evidence, including an affidavit or testimony, by any person,
including the appraisal office [district], the property owner, or
the owner's agent, that was presented at the hearing on the protest
before the appraisal review board constitutes sufficient evidence
to deny the motion.
(i) If an appraisal office [district] employee testifies as
to the value of real property in an appeal under Section 42.25 or
42.26, the court may give preference to an employee who is a person
authorized to perform an appraisal of real estate under Section
1103.201, Occupations Code.
SECTION 67. Sections 42.26(a), (b), and (d), Tax Code, are
amended to read as follows:
(a) The district court shall grant relief on the ground that
a property is appraised unequally if[:
[(1) the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of a reasonable and
representative sample of other properties in the appraisal
district;
[(2) the appraisal ratio of the property exceeds by at
least 10 percent the median level of appraisal of a sample of
properties in the appraisal district consisting of a reasonable
number of other properties similarly situated to, or of the same
general kind or character as, the property subject to the appeal; or
[(3)] the appraised value of the property exceeds the
median appraised value of a reasonable number of comparable
properties appropriately adjusted.
(b) [If a property owner is entitled to relief under
Subsection (a)(1), the court shall order the property's appraised
value changed to the value as calculated on the basis of the median
level of appraisal according to Subsection (a)(1). If a property
owner is entitled to relief under Subsection (a)(2), the court
shall order the property's appraised value changed to the value
calculated on the basis of the median level of appraisal according
to Subsection (a)(2).] If a property owner is entitled to relief
under Subsection (a) [Subsection (a)(3)], the court shall order the
property's appraised value changed to the value calculated on the
basis of the median appraised value according to that subsection
[Subsection (a)(3). If a property owner is entitled to relief under
more than one subdivision of Subsection (a), the court shall order
the property's appraised value changed to the value that results in
the lowest appraised value]. The court shall determine the [each
applicable median level of appraisal or] median appraised value
according to law[,] and is not required to adopt the [median level
of appraisal or] median appraised value proposed by a party to the
appeal. [The court may not limit or deny relief to the property
owner entitled to relief under a subdivision of Subsection (a)
because the appraised value determined according to another
subdivision of Subsection (a) results in a higher appraised value.]
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property [or
sample property] that is used for comparison must be the market
value determined by the appraisal office [district] when the
property is [a residence homestead] subject to the limitation on
appraised value imposed by Section 23.23 or 23.231.
SECTION 68. Sections 151.356(a) and (c), Tax Code, are
amended to read as follows:
(a) In this section:
(1) "Environmental protection agency of the United
States" includes:
(A) the United States Department of the Interior
and any agency, bureau, or other entity established in that
department, including the Bureau of Safety and Environmental
Enforcement and the Bureau of Ocean Energy Management; and
(B) any other department, agency, bureau, or
entity of the United States that prescribes rules or regulations
described by Subdivision (3)(A).
(2) "Offshore[, "offshore] spill response containment
property" means tangible personal property:
(A) used, constructed, acquired, stored, or
installed solely as part of, or used solely for the development,
improvement, storage, deployment, repair, maintenance, or testing
of, an offshore spill response containment system that is stored
while not in use in a county bordering on the Gulf of Mexico or on a
bay or other body of water immediately adjacent to the Gulf of
Mexico [(1) described by Section 11.271(c)];
(B) [(2)] owned or leased by an entity formed
primarily for the purpose of designing, developing, modifying,
enhancing, assembling, operating, deploying, and maintaining an
offshore spill response containment system [described by Section
11.271(f)]; and
(C) [(3)] used or intended to be used solely in
an offshore spill response containment system [as defined by
Section 11.271(a)].
(3) "Offshore spill response containment system"
means a marine or mobile containment system that:
(A) is designed and used or intended to be used
solely to implement a response plan that meets or exceeds rules or
regulations adopted by any environmental protection agency of the
United States, this state, or a political subdivision of this state
for the control, reduction, or monitoring of air, water, or land
pollution in the event of a blowout or loss of control of an
offshore well drilled or used for the exploration for or production
of oil or gas;
(B) has a design capability to respond to a
blowout or loss of control of an offshore well drilled or used for
the exploration for or production of oil or gas that is drilled in
more than 5,000 feet of water;
(C) is used or intended to be used solely to
respond to a blowout or loss of control of an offshore well drilled
or used for the exploration for or production of oil or gas without
regard to the depth of the water in which the well is drilled; and
(D) except for any monitoring function for which
the system may be used, is used or intended to be used as a temporary
measure to address fugitive oil, gas, sulfur, or other minerals
after a leak has occurred and is not used or intended to be used
after the leak has been contained as a continuing means of producing
oil, gas, sulfur, or other minerals.
(4) "Rules or regulations adopted by any environmental
protection agency of the United States" includes 30 C.F.R. Part 254
and any corresponding provision or provisions of succeeding,
similar, substitute, proposed, or final federal regulations.
(c) The sale, lease, rental, storage, use, or other
consumption by an entity described by Subsection (a)(2)(B) [Section
11.271(f)] of offshore spill response containment property used
solely for the purposes described by [Section 11.271(c) and] this
section is exempted from the taxes imposed by this chapter.
SECTION 69. Section 312.007(a), Tax Code, is amended to
read as follows:
(a) In this section, "abatement period" means the period
during which all or a portion of the value of real property [or
tangible personal property] that is the subject of a tax abatement
agreement is exempt from taxation.
SECTION 70. Sections 312.204(a), (e), and (g), Tax Code,
are amended to read as follows:
(a) The governing body of a municipality eligible to enter
into tax abatement agreements under Section 312.002 may agree in
writing with the owner of taxable real property that is located in a
reinvestment zone, but that is not in an improvement project
financed by tax increment bonds, to exempt from taxation a portion
of the value of the real property [or of tangible personal property
located on the real property, or both,] for a period not to exceed
10 years, on the condition that the owner of the property make
specific improvements or repairs to the property. The governing
body of an eligible municipality may agree in writing with the owner
of a leasehold interest in tax-exempt real property that is located
in a reinvestment zone, but that is not in an improvement project
financed by tax increment bonds, to exempt a portion of the value of
property subject to ad valorem taxation, including the leasehold
interest or [,] improvements [, or tangible personal property]
located on the real property, for a period not to exceed 10 years,
on the condition that the owner of the leasehold interest make
specific improvements or repairs to the real property. A tax
abatement agreement under this section is subject to the rights of
holders of outstanding bonds of the municipality. An agreement
exempting taxable real property or leasehold interests or
improvements on tax-exempt real property may provide for the
exemption of such taxable interests in each year covered by the
agreement only to the extent its value for that year exceeds its
value for the year in which the agreement is executed. [An
agreement exempting tangible personal property located on taxable
or tax-exempt real property may provide for the exemption of
tangible personal property located on the real property in each
year covered by the agreement other than tangible personal property
that was located on the real property at any time before the period
covered by the agreement with the municipality, including inventory
and supplies.] In a municipality that has a comprehensive zoning
ordinance, an improvement, repair, development, or redevelopment
taking place under an agreement under this section must conform to
the comprehensive zoning ordinance.
(e) The governing body of a municipality eligible to enter
into tax abatement agreements under Section 312.002 may agree in
writing with the owner or lessee of real property that is located in
a reinvestment zone to exempt from taxation for a period not to
exceed 10 years a portion of the value of the real property [or of
personal property, or both,] located within the zone and owned or
leased by a certificated air carrier, on the condition that the
certificated air carrier make specific real property improvements
or lease for a term of 10 years or more real property improvements
located within the reinvestment zone. An agreement may provide for
the exemption of the real property in each year covered by the
agreement to the extent its value for that year exceeds its value
for the year in which the agreement is executed. [An agreement may
provide for the exemption of the personal property owned or leased
by a certificated air carrier located within the reinvestment zone
in each year covered by the agreement other than specific personal
property that was located within the reinvestment zone at any time
before the period covered by the agreement with the municipality.]
(g) Notwithstanding the other provisions of this chapter,
the governing body of a municipality eligible to enter into tax
abatement agreements under Section 312.002 may agree in writing
with the owner of real property that is located in a reinvestment
zone to exempt from taxation for a period not to exceed five years a
portion of the value of the real property [or of tangible personal
property located on the real property, or both,] that is used to
provide housing for military personnel employed at a military
facility located in or near the municipality. An agreement may
provide for the exemption of the real property in each year covered
by the agreement only to the extent its value for that year exceeds
its value for the year in which the agreement is executed. [An
agreement may provide for the exemption of tangible personal
property located on the real property in each year covered by the
agreement other than tangible personal property that was located on
the real property at any time before the period covered by the
agreement with the municipality and other than inventory or
supplies.] The governing body of the municipality may adopt
guidelines and criteria for tax abatement agreements entered into
under this subsection that are different from the guidelines and
criteria that apply to tax abatement agreements entered into under
another provision of this section. Tax abatement agreements
entered into under this subsection are not required to contain
identical terms for the portion of the value of the property that is
to be exempt or for the duration of the exemption as tax abatement
agreements entered into with the owners of property in the
reinvestment zone under another provision of this section.
SECTION 71. Section 312.210(b), Tax Code, is amended to
read as follows:
(b) A tax abatement agreement with the owner of real
property [or tangible personal property] that is located in the
reinvestment zone described by Subsection (a) and in a school
district that has a wealth per student that does not exceed the
equalized wealth level must exempt from taxation:
(1) the portion of the value of the property in the
amount specified in the joint agreement among the municipality,
county, and junior college district; and
(2) an amount equal to 10 percent of the maximum
portion of the value of the property that may under Section
312.204(a) be otherwise exempted from taxation.
SECTION 72. Section 312.211(a), Tax Code, is amended to
read as follows:
(a) This section applies only to [:
[(1)] real property:
(1) [(A)] that is located in a reinvestment zone;
(2) [(B)] that is not in an improvement project
financed by tax increment bonds; and
(3) [(C)] that is the subject of a voluntary cleanup
agreement under Section 361.606, Health and Safety Code [; and
[(2) tangible personal property located on the real
property].
SECTION 73. Sections 312.402(a), (a-1), and (a-3), Tax
Code, are amended to read as follows:
(a) The commissioners court may execute a tax abatement
agreement with the owner of taxable real property located in a
reinvestment zone designated under this subchapter [or with the
owner of tangible personal property located on real property in a
reinvestment zone] to exempt from taxation all or a portion of the
value of the real property [, all or a portion of the value of the
tangible personal property located on the real property, or all or a
portion of the value of both].
(a-1) The commissioners court may execute a tax abatement
agreement with the owner of a leasehold interest in tax-exempt real
property located in a reinvestment zone designated under this
subchapter to exempt all or a portion of the value of the leasehold
interest in the real property. The court may execute a tax
abatement agreement with the owner of [tangible personal property
or] an improvement located on tax-exempt real property that is
located in a designated reinvestment zone to exempt all or a portion
of the value of the [tangible personal property or] improvement
located on the real property.
(a-3) The commissioners court may execute a tax abatement
agreement with a lessee of taxable real property located in a
reinvestment zone designated under this subchapter to exempt from
taxation all or a portion of the value of the fixtures,
improvements, or other real property owned by the lessee and
located on the property that is subject to the lease [, all or a
portion of the value of tangible personal property owned by the
lessee and located on the real property that is the subject of the
lease, or all or a portion of the value of both the fixtures,
improvements, or other real property and the tangible personal
property described by this subsection].
SECTION 74. Section 313.021(2), Tax Code, is amended to
read as follows:
(2) "Qualified property" means:
(A) land:
(i) that is located in an area designated as
a reinvestment zone under Chapter 311 or 312 or as an enterprise
zone under Chapter 2303, Government Code;
(ii) on which a person proposes to
construct a new building or erect or affix a new improvement that
does not exist before the date the person submits a complete
application for a limitation on appraised value under this
subchapter;
(iii) that is not subject to a tax abatement
agreement entered into by a school district under Chapter 312; and
(iv) on which, in connection with the new
building or new improvement described by Subparagraph (ii), the
owner or lessee of, or the holder of another possessory interest in,
the land proposes to:
(a) make a qualified investment in an
amount equal to at least the minimum amount required by Section
313.023; and
(b) create at least 25 new qualifying
jobs; and
(B) the new building or other new improvement
described by Paragraph (A)(ii)[; and
[(C) tangible personal property:
[(i) that is not subject to a tax abatement
agreement entered into by a school district under Chapter 312;
[(ii) for which a sales and use tax refund
is not claimed under Section 151.3186; and
[(iii) except for new equipment described
in Section 151.318(q) or (q-1), that is first placed in service in
the new building, in the newly expanded building, or in or on the
new improvement described by Paragraph (A)(ii), or on the land on
which that new building or new improvement is located, if the
personal property is ancillary and necessary to the business
conducted in that new building or in or on that new improvement].
SECTION 75. Section 313.025(a), Tax Code, is amended to
read as follows:
(a) The owner or lessee of, or the holder of another
possessory interest in, any qualified property described by Section
313.021(2)(A) or[,] (B)[, or (C)] may apply to the governing body of
the school district in which the property is located for a
limitation on the appraised value for school district maintenance
and operations ad valorem tax purposes of the person's qualified
property. An application must be made on the form prescribed by
the comptroller and include the information required by the
comptroller, and it must be accompanied by:
(1) the application fee established by the governing
body of the school district;
(2) information sufficient to show that the real [and
personal] property identified in the application as qualified
property meets the applicable criteria established by Section
313.021(2); and
(3) any information required by the comptroller for
the purposes of Section 313.026.
SECTION 76. Section 71.041(5), Agriculture Code, is amended
to read as follows:
(5) "Nursery stock weather protection unit" means a
plant cover consisting of a series of removable, portable metal
hoops, covered by nonreusable plastic sheeting, shade cloth, or
other similar removable material, used exclusively for protecting
nursery products from weather elements. A nursery stock weather
protection unit is an implement of husbandry for all purposes[,
including Article VIII, Section 19a, of the Texas Constitution].
SECTION 77. Section 93.001(2), Business & Commerce Code, is
amended to read as follows:
(2) "Heavy equipment" means self-propelled,
self-powered, or pull-type equipment, including farm equipment or a
diesel engine, that weighs at least 1,500 pounds and is intended to
be used for agricultural, construction, industrial, maritime,
mining, or forestry uses. The term does not include a motor
vehicle that is required by:
(A) Chapter 501, Transportation Code, to be
titled; or
(B) Chapter 502, Transportation Code, to be
registered [has the meaning assigned by Section 23.1241, Tax Code].
SECTION 78. Sections 89.003(a) and (b), Finance Code, are
amended to read as follows:
(a) Each association and each federal association shall
render for ad valorem taxation all of its personal property, other
than tangible personal property [furniture, fixtures, equipment,
and automobiles], as a whole at the value remaining after deducting
the following from the total value of its entire assets:
(1) all debts that it owes;
(2) all tax-free securities that it owns;
(3) its loss reserves and surplus;
(4) its savings liability; [and]
(5) the appraised value of its [furniture, fixtures,
and] real property; and
(6) the value of its tangible personal property.
(b) The association or federal association shall render the
personal property, other than tangible personal property
[furniture, fixtures, equipment, and automobiles], to the chief
appraiser of the appraisal office [district] in the county in which
its principal office is located.
SECTION 79. Subchapter M, Chapter 403, Government Code, is
amended by adding Section 403.3001 to read as follows:
Sec. 403.3001. DETERMINATION OF SCHOOL DISTRICT PROPERTY
VALUES. A reference in law to the taxable value or total taxable
value of property in a school district as determined under this
subchapter means the total taxable value of that property as
determined by the assessor for the district under Section 26.04,
Tax Code.
SECTION 80. Chapter 245, Local Government Code, is amended
by adding Section 245.008 to read as follows:
Sec. 245.008. NOTIFICATION OF APPRAISAL OFFICE OF ISSUANCE
OF CERTAIN PERMITS. A political subdivision that issues a
real-property-related permit shall notify the appraisal office
established for the county in which the property is located of the
issuance of the permit.
SECTION 81. Section 1151.1015, Occupations Code, is amended
to read as follows:
Sec. 1151.1015. ASSISTANCE FROM COMPTROLLER. The
comptroller shall enter into a memorandum of understanding with the
department under which the comptroller shall provide:
(1) information on the educational needs of and
opportunities for tax professionals;
(2) review and approval of all required educational
courses, examinations, and continuing education programs for
registrants; and
(3) [a copy of any report issued by the comptroller
under Section 5.102, Tax Code, and if requested by the department a
copy of any work papers or other documents collected or created in
connection with a report issued under that section; and
[(4)] information and assistance regarding
administrative proceedings conducted under the commission's rules
or this chapter.
SECTION 82. Section 1151.204(c), Occupations Code, is
amended to read as follows:
(c) This section does not apply to:
(1) [a matter referred to the department by the
comptroller under Section 5.102, Tax Code, or a successor statute;
[(2)] a complaint concerning a registrant's failure to
comply with the registration and certification requirements of this
chapter; or
(2) [(3)] a complaint concerning a newly appointed
chief appraiser's failure to complete the training program
described by Section 1151.164.
SECTION 83. Section 503.038(a), Transportation Code, is
amended to read as follows:
(a) The department may cancel a dealer's general
distinguishing number if the dealer:
(1) falsifies or forges a title document, including an
affidavit making application for a certified copy of a title;
(2) files a false or forged tax document, including a
sales tax affidavit;
(3) fails to take assignment of any basic evidence of
ownership, including a certificate of title or manufacturer's
certificate, for a vehicle the dealer acquires;
(4) fails to assign any basic evidence of ownership,
including a certificate of title or manufacturer's certificate, for
a vehicle the dealer sells;
(5) uses or permits the use of a metal dealer's license
plate or a dealer's temporary tag on a vehicle that the dealer does
not own or control or that is not in stock and offered for sale;
(6) makes a material misrepresentation in an
application or other information filed with the department;
(7) fails to maintain the qualifications for a general
distinguishing number;
(8) fails to provide to the department within 30 days
after the date of demand by the department satisfactory and
reasonable evidence that the person is regularly and actively
engaged in business as a wholesale or retail dealer;
(9) has been licensed for at least 12 months and has
not assigned at least five vehicles during the previous 12-month
period;
(10) [has failed to demonstrate compliance with
Sections 23.12, 23.121, and 23.122, Tax Code;
[(11)] uses or allows the use of the dealer's general
distinguishing number or the location for which the general
distinguishing number is issued to avoid the requirements of this
chapter;
(11) [(12)] misuses or allows the misuse of a
temporary tag authorized under this chapter;
(12) [(13)] refuses to show on a buyer's temporary tag
the date of sale or other reasonable information required by the
department; or
(13) [(14)] otherwise violates this chapter or a rule
adopted under this chapter.
SECTION 84. (a) The following provisions of the Tax Code
are repealed:
(1) Section 1.12;
(2) Section 5.07(c);
(3) Section 5.10;
(4) Section 5.102;
(5) Section 5.12;
(6) Section 5.13;
(7) Section 5.16;
(8) Section 6.03;
(9) Section 6.031;
(10) Section 6.033;
(11) Section 6.034;
(12) Section 6.035(a-1);
(13) Section 6.036(a);
(14) Section 6.037;
(15) Section 6.04;
(16) Section 6.0501;
(17) Section 6.051;
(18) Section 6.061;
(19) Section 6.10;
(20) Section 6.15;
(21) Section 6.24(c);
(22) Section 11.11(h);
(23) Section 11.14;
(24) Section 11.145;
(25) Section 11.15;
(26) Section 11.16;
(27) Section 11.161;
(28) Section 11.23(f);
(29) Section 11.25;
(30) Section 11.251;
(31) Section 11.252;
(32) Section 11.253;
(33) Section 11.254;
(34) Section 11.271;
(35) Section 11.311;
(36) Section 11.315;
(37) Section 11.33;
(38) Section 11.437;
(39) Section 11.4391;
(40) Section 21.02;
(41) Section 21.021;
(42) Section 21.03;
(43) Section 21.031;
(44) Section 21.04;
(45) Section 21.05;
(46) Section 21.055;
(47) Section 21.07;
(48) Section 21.09;
(49) Section 21.10;
(50) Sections 22.01(e), (i), (j), (k), and (m);
(51) Sections 22.04(b), (c), and (d);
(52) Sections 22.07(a) and (b);
(53) Section 22.23(c);
(54) Section 23.121;
(55) Section 23.1211;
(56) Section 23.122;
(57) Section 23.123;
(58) Section 23.124;
(59) Section 23.1241;
(60) Section 23.1242;
(61) Section 23.1243;
(62) Section 23.125;
(63) Section 23.126;
(64) Section 23.127;
(65) Section 23.128;
(66) Section 23.129;
(67) Section 23.24;
(68) Chapter 24;
(69) Sections 25.18(b) and (c);
(70) Section 33.11;
(71) Subchapter B, Chapter 33;
(72) Section 41.413(a);
(73) Section 41.47(c-1);
(74) Section 42.03;
(75) Section 42.05; and
(76) Section 42.26(c).
(b) Section 25.12(c), Tax Code, as added by Chapter 450
(H.B. 1831), Acts of the 71st Legislature, Regular Session, 1989,
is repealed.
(c) Section 89.003(c), Finance Code, is repealed.
(d) The following provisions of the Government Code are
repealed:
(1) Section 403.301;
(2) Section 403.3011;
(3) Section 403.302;
(4) Section 403.303; and
(5) Section 403.304.
(e) Sections 379B.011(c), (d), and (e), Local Government
Code, are repealed.
SECTION 85. (a) On the effective date of this Act:
(1) each appraisal district and appraisal district
board of directors is abolished;
(2) an appraisal office is established for each
county;
(3) the county assessor-collector of each county
begins to govern the appraisal office established for that county;
(4) all personnel, property, records, and funds of an
appraisal district are transferred to the appraisal office for the
county for which the appraisal district was established;
(5) all unpaid debts incurred by an appraisal district
become debts of the appraisal office for the county for which the
appraisal district was established;
(6) the appraisal office for the county for which an
appraisal district was established is substituted for the appraisal
district in any pending action, including a protest or challenge
before an appraisal review board or an appeal or other action in a
court; and
(7) the appraisal review board of an appraisal office
established for a county is substituted for the appraisal review
board of the appraisal district established for the county in any
pending action, including a protest or challenge before the
appraisal review board or an appeal or other action in a court.
(b) A measure taken or adopted by the board of directors of
an appraisal district established for a county before the effective
date of this Act that is in effect on the effective date of this Act
continues in effect after the effective date of this Act until
superseded by a measure taken or adopted by the county
assessor-collector who governs the appraisal office established
for that county.
SECTION 86. As soon as practicable on or after January 1,
2022, the county assessor-collector who governs each appraisal
office shall dispose of the real property owned by the office. The
county assessor-collector may use the proceeds to pay the debts of
the appraisal office or to cover the cost of administration of the
office.
SECTION 87. (a) As soon as practicable on or after January
1, 2022, the state senators and state representatives whose
districts contain any part of the territory included in the county
for which an appraisal office is established, in the manner
provided by Section 6.12, Tax Code, as amended by this Act, shall
appoint the members of the agricultural advisory board for the
appraisal office. The county assessor-collector who governs the
appraisal office by resolution shall provide for staggered terms
for the members as necessary to comply with Section 6.12(c), Tax
Code.
(b) The changes made to Section 6.12, Tax Code, by this Act
apply only to the appointment of agricultural advisory board
members to terms beginning on or after January 1, 2022. This Act
does not affect the term of an agricultural advisory board member
serving on December 31, 2021, if the member was appointed before
January 1, 2022, to a term that began before December 31, 2021.
SECTION 88. (a) As soon as practicable on or after January
1, 2022, the state senators and state representatives whose
districts contain any part of the territory included in the county
for which an appraisal office is established, in the manner
provided by Section 6.41, Tax Code, as amended by this Act, shall
appoint the members of the appraisal review board for the appraisal
office. The county assessor-collector who governs the appraisal
office by resolution shall provide for staggered terms for the
members as necessary to comply with Section 6.41(h), Tax Code, as
amended by this Act.
(b) The changes made to Section 6.41, Tax Code, by this Act
apply only to the appointment of appraisal review board members to
terms beginning on or after January 1, 2022. This Act does not
affect the term of an appraisal review board member serving on
December 31, 2021, if the member was appointed before January 1,
2022, to a term that began before December 31, 2021, and expires
December 31, 2022.
SECTION 89. Sections 6.41 and 6.411, Tax Code, as amended by
this Act, apply only to an offense committed on or after the
effective date of this Act. An offense committed before the
effective date of this Act is governed by the law in effect on the
date the offense was committed, and the former law is continued in
effect for that purpose. For purposes of this section, an offense
was committed before the effective date of this Act if any element
of the offense occurred before that date.
SECTION 90. The change in law made by this Act to Section
23.02, Tax Code, applies only to the reappraisal of property
located in an area that is declared to be a disaster area by the
governor on or after the effective date of this Act. The
reappraisal of property located in an area that was declared to be a
disaster area by the governor before the effective date of this Act
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 91. Section 23.231, Tax Code, as added by this Act,
applies only to the appraisal of real property for ad valorem tax
purposes for a tax year that begins on or after the effective date
of this Act.
SECTION 92. As soon as practicable after the effective date
of this Act, the comptroller by rule shall adopt forms and
procedures necessary for the implementation of Section 23.231, Tax
Code, as added by this Act.
SECTION 93. (a) The changes in law made by this Act to
Subchapter M, Chapter 403, Government Code, apply only to the
determination of the total taxable value of property in a school
district for a tax year that begins after December 31, 2021. The
determination of the total taxable value of property in a school
district for a tax year that begins before that date is governed by
Subchapter M, Chapter 403, Government Code, as that subchapter
existed when the tax year began, and the former law is continued in
effect for that purpose.
(b) Notwithstanding the changes in law made by this Act to
the provisions of the Tax Code, Agriculture Code, Business &
Commerce Code, Finance Code, and Transportation Code amended by
this Act and the repeal by this Act of provisions of the Tax Code and
Finance Code, each of those provisions, as it existed immediately
before January 1, 2020, is continued in effect for the purpose of
the levy and collection of an ad valorem tax on tangible personal
property imposed:
(1) before January 1, 2020; or
(2) pursuant to Section 1(l), Article VIII, Texas
Constitution.
SECTION 94. (a) If the constitutional amendment proposed
by the 86th Legislature, Regular Session, 2019, authorizing the
legislature to provide for the appraisal of certain real property
for ad valorem tax purposes based on its purchase price, exempting
all tangible personal property in this state from ad valorem
taxation, and authorizing the legislature to permit legislators to
appoint members of the board of equalization for an appraisal
entity is approved by the voters, the Special Tax Code Board is
created to recommend amendments to the Tax Code and other law to
efficiently and effectively implement the amendment.
(b) The board consists of nine members appointed as follows:
(1) seven members appointed by the governor;
(2) one member appointed by the lieutenant governor;
and
(3) one member appointed by the speaker of the house of
representatives.
(c) The board shall make legislative recommendations on
amendments to the Tax Code and other law required to implement the
constitutional amendment and otherwise improve the system for
appraising property for ad valorem tax purposes, including
recommendations regarding:
(1) the abolition of appraisal districts and the
transfer of their functions to the county assessor-collectors'
offices;
(2) the procedure to be used in appraising real
property for ad valorem tax purposes, including the appraisal of
such property on the basis of the purchase price of the property;
(3) the reporting of information regarding sales of
real property to the appraisal office and the use of that
information by the appraisal office;
(4) the notification of an appraisal office by a
political subdivision regarding real-property-related permits
issued by the political subdivision; and
(5) the procedure for appointing appraisal review
board members.
(d) Not later than September 1, 2020, the board shall submit
a report to the governor, lieutenant governor, speaker of the house
of representatives, comptroller, Legislative Budget Board, and
legislature regarding the board's recommendations.
(e) This section expires September 1, 2021.
SECTION 95. To the extent of any conflict, this Act prevails
over another Act of the 86th Legislature, Regular Session, 2019,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 96. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2022, but only if the
constitutional amendment proposed by the 86th Legislature, Regular
Session, 2019, authorizing the legislature to provide for the
appraisal of certain real property for ad valorem tax purposes
based on its purchase price, exempting all tangible personal
property in this state from ad valorem taxation, and authorizing
the legislature to permit legislators to appoint members of the
board of equalization for an appraisal entity is approved by the
voters. If that amendment is not approved by the voters, this Act
has no effect.
(b) Subject to Subsection (a) of this section, the section
of this Act creating the Special Tax Code Board takes effect January
1, 2020.