Bill Text: TX HB934 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to ad valorem taxation.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2017-02-21 - Referred to Ways & Means [HB934 Detail]
Download: Texas-2017-HB934-Introduced.html
85R3415 CJC/TJB-D | ||
By: Zerwas | H.B. No. 934 |
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relating to ad valorem taxation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 5, Tax Code, is amended by adding | ||
Sections 5.01 and 5.02 to read as follows: | ||
Sec. 5.01. PROPERTY TAX ADMINISTRATION ADVISORY BOARD. (a) | ||
The comptroller shall appoint the property tax administration | ||
advisory board to advise the comptroller with respect to the | ||
division or divisions within the office of the comptroller with | ||
primary responsibility for state administration of property | ||
taxation and state oversight of appraisal districts and local tax | ||
offices. The advisory board shall make recommendations to the | ||
comptroller regarding: | ||
(1) proposed property tax rules and prescribed | ||
procedures and forms; | ||
(2) minimum standards for the administration and | ||
operation of an appraisal district; | ||
(3) minimum standards for the administration and | ||
operation of a local tax office; | ||
(4) appointment of the director, managers, and other | ||
executive staff of the division or divisions within the office of | ||
the comptroller with primary responsibility for state | ||
administration of property taxation and state oversight of | ||
appraisal districts and local tax offices; | ||
(5) property tax publications, guidelines, and | ||
communications; | ||
(6) property value studies for school districts and | ||
ratio studies for appraisal districts; | ||
(7) reviews of appraisal districts and appraisal | ||
review boards; | ||
(8) computer hardware and software needs for: | ||
(A) the division or divisions within the office | ||
of the comptroller with primary responsibility for state | ||
administration of property taxation and state oversight of | ||
appraisal districts and local tax offices; | ||
(B) appraisal districts; and | ||
(C) local tax offices; and | ||
(9) other property tax operational matters. | ||
(b) The advisory board is composed of six members appointed | ||
by the comptroller with the advice of the governor, lieutenant | ||
governor, and speaker of the house of representatives. Board | ||
members serve at the pleasure of the comptroller. | ||
(c) The members of the advisory board must have knowledge of | ||
or experience in property tax administration, appraisal, or law. | ||
(d) Appointments to the advisory board shall be made without | ||
regard to the race, color, disability, gender, religion, age, or | ||
national origin of appointees. | ||
(e) Each member of the advisory board must be a resident of | ||
this state. | ||
(f) An elected official may not serve on the advisory board. | ||
(g) The advisory board is governed exclusively by this | ||
chapter. | ||
(h) The comptroller's staff shall provide assistance to the | ||
advisory board in performing its duties. | ||
Sec. 5.02. RESTRICTIONS ON ADVISORY BOARD MEMBERSHIP. A | ||
person is not eligible to serve on the property tax administration | ||
advisory board if the person or the person's spouse: | ||
(1) is employed by or contracts with the comptroller, | ||
an appraisal district, or a taxing unit; | ||
(2) owns or controls, directly or indirectly, more | ||
than a 10 percent interest in a business entity or other | ||
organization receiving money from the comptroller, an appraisal | ||
district, or a taxing unit; or | ||
(3) receives money from a business entity or other | ||
organization receiving money from the comptroller, an appraisal | ||
district, or a taxing unit in an amount that exceeds five percent of | ||
the person's gross income for the preceding calendar year. | ||
SECTION 2. Section 5.05, Tax Code, is amended by adding | ||
Subsection (c-1) to read as follows: | ||
(c-1) An appraisal district shall appraise property in | ||
accordance with any appraisal manuals prepared and issued by the | ||
comptroller under this section. | ||
SECTION 3. Sections 5.102(a) and (c), Tax Code, are amended | ||
to read as follows: | ||
(a) At least once every two years, the comptroller shall | ||
review the governance of each appraisal district, taxpayer | ||
assistance provided, and the operating and appraisal standards, | ||
procedures, and methodology used by each appraisal district, to | ||
determine compliance with generally accepted standards, | ||
procedures, and methodology, including compliance with standards, | ||
procedures, and methodology prescribed by appraisal manuals | ||
prepared and issued by the comptroller. After consultation with | ||
the property tax administration advisory board [ |
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may establish procedures and standards for conducting and scoring | ||
the review. | ||
(c) At the conclusion of the review, the comptroller shall, | ||
in writing, notify the appraisal district concerning its | ||
performance in the review. If the review results in a finding that | ||
an appraisal district is not in compliance with generally accepted | ||
standards, procedures, and methodology, including compliance with | ||
standards, procedures, and methodology prescribed by appraisal | ||
manuals prepared and issued by the comptroller, the comptroller | ||
shall deliver a report that details the comptroller's findings and | ||
recommendations for improvement to: | ||
(1) the appraisal district's chief appraiser and board | ||
of directors; and | ||
(2) the superintendent and board of trustees of each | ||
school district participating in the appraisal district. | ||
SECTION 4. Section 5.13(d), Tax Code, is amended to read as | ||
follows: | ||
(d) In conducting a general audit, the comptroller shall | ||
consider and report on: | ||
(1) the extent to which the district complies with | ||
applicable law or generally accepted standards of appraisal or | ||
other relevant practice, including appraisal standards and | ||
practices prescribed by appraisal manuals prepared and issued by | ||
the comptroller; | ||
(2) the uniformity and level of appraisal of major | ||
kinds of property and the cause of any significant deviations from | ||
ideal uniformity and equality of appraisal of major kinds of | ||
property; | ||
(3) duplication of effort and efficiency of operation; | ||
(4) the general efficiency, quality of service, and | ||
qualification of appraisal district personnel; and | ||
(5) except as otherwise provided by Subsection (b) [ |
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audit. | ||
SECTION 5. Section 6.03(a), Tax Code, is amended to read as | ||
follows: | ||
(a) The appraisal district is governed by a board of | ||
directors. Five directors are appointed by the taxing units that | ||
participate in the district as provided by this section. If the | ||
county assessor-collector is not appointed to the board, the county | ||
assessor-collector serves as a nonvoting director. The county | ||
assessor-collector is ineligible to serve if the board enters into | ||
a contract under Section 6.05(b) or if the commissioners court of | ||
the county enters into a contract under Section 6.24(b). To be | ||
eligible to serve on the board of directors, an individual other | ||
than a county assessor-collector serving as a nonvoting director | ||
must: | ||
(1) be a resident of the district; | ||
(2) [ |
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least two years immediately preceding the date the individual takes | ||
office; and | ||
(3) be an elected county officer or an elected | ||
official of a political subdivision all or part of the territory of | ||
which is located in the county. [ |
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SECTION 6. Section 6.41, Tax Code, is amended by amending | ||
Subsections (b) and (d-9) and adding Subsections (b-1), (b-2), and | ||
(d-10) to read as follows: | ||
(b) Except as provided by Subsection (b-1) or (b-2), an | ||
appraisal review [ |
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(b-1) An appraisal [ |
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directors by resolution of a majority of the board's [ |
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may increase the size of the district's appraisal review board to | ||
the number of members the board of directors considers appropriate. | ||
(b-2) An appraisal district board of directors for a | ||
district established in a county described by Subsection (d-1) by | ||
resolution of a majority of the board's members shall increase the | ||
size of the district's appraisal review board to the number of | ||
members the board of directors considers appropriate to manage the | ||
duties of the appraisal review board, including the duties of each | ||
special panel established under Section 6.425. | ||
(d-9) In selecting individuals who are to serve as members | ||
of the appraisal review board, the local administrative district | ||
judge shall select an adequate number of qualified individuals to | ||
permit the chairman of the appraisal review board to fill the | ||
positions on each special panel established under Section 6.425. | ||
(d-10) 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. | ||
SECTION 7. Section 6.414(d), Tax Code, is amended to read as | ||
follows: | ||
(d) An auxiliary board member may hear taxpayer protests | ||
before the appraisal review board. An auxiliary board member may | ||
not hear taxpayer protests before a special panel established under | ||
Section 6.425 unless the member is eligible to be appointed to the | ||
special panel. If one or more auxiliary board members sit on a panel | ||
established under Section 6.425 or 41.45 to conduct a protest | ||
hearing, the number of regular appraisal review board members | ||
required by that section to constitute the panel is reduced by the | ||
number of auxiliary board members sitting. An auxiliary board | ||
member sitting on a panel is considered a regular board member for | ||
all purposes related to the conduct of the hearing. | ||
SECTION 8. Section 6.42, Tax Code, is amended by adding | ||
Subsection (d) to read as follows: | ||
(d) The concurrence of a majority of the members of the | ||
appraisal review board or a panel of the board present at a meeting | ||
of the board or panel is sufficient for a recommendation, | ||
determination, decision, or other action by the board or panel, and | ||
the concurrence of more than a majority of the members of the board | ||
or panel may not be required. | ||
SECTION 9. Subchapter C, Chapter 6, Tax Code, is amended by | ||
adding Section 6.425 to read as follows: | ||
Sec. 6.425. SPECIAL APPRAISAL REVIEW BOARD PANELS IN | ||
CERTAIN DISTRICTS. (a) This section applies only to the appraisal | ||
review board for an appraisal district described by Section | ||
6.41(b-2). | ||
(b) The appraisal review board shall establish a separate | ||
special panel for each of the following classifications of property | ||
to conduct protest hearings under Chapter 41 relating to property | ||
included in that classification: | ||
(1) commercial real and personal property; | ||
(2) real and personal property of utilities; | ||
(3) industrial and manufacturing real and personal | ||
property; and | ||
(4) multifamily residential real property. | ||
(c) The chairman of the appraisal review board may establish | ||
additional special panels described by this section to conduct | ||
protest hearings relating to property included in a classification | ||
described by Subsection (b) if the chairman determines that | ||
additional panels are necessary. | ||
(d) Each special panel described by this section consists of | ||
three members of the appraisal review board appointed by the | ||
chairman of the board. | ||
(e) To be eligible to be appointed to a special panel | ||
described by this section, a member of the appraisal review board | ||
must: | ||
(1) hold a juris doctor or equivalent degree; | ||
(2) hold a master of business administration degree; | ||
(3) be licensed as a certified public accountant under | ||
Chapter 901, Occupations Code; | ||
(4) be accredited by the American Society of | ||
Appraisers as an accredited senior appraiser; | ||
(5) possess an MAI professional designation from the | ||
Appraisal Institute; | ||
(6) possess a Certified Assessment Evaluator (CAE) | ||
professional designation from the International Association of | ||
Assessing Officers; or | ||
(7) have at least 20 years of experience in property | ||
tax appraisal or consulting. | ||
(f) Notwithstanding Subsection (e), the chairman of the | ||
appraisal review board may appoint to a special panel described by | ||
this section a member of the appraisal review board who does not | ||
meet the qualifications prescribed by that subsection if: | ||
(1) the number of persons appointed to the board by the | ||
local administrative district judge who meet those qualifications | ||
is not sufficient to fill the positions on each special panel; and | ||
(2) the board member being appointed to the panel: | ||
(A) holds a bachelor's degree in any field; or | ||
(B) is licensed as a real estate broker or sales | ||
agent under Chapter 1101, Occupations Code. | ||
SECTION 10. Section 23.01(b), Tax Code, is amended to read | ||
as follows: | ||
(b) The market value of property shall be determined by the | ||
application of generally accepted appraisal methods and | ||
techniques, including appraisal methods and techniques prescribed | ||
by appraisal manuals prepared and issued by the comptroller. If | ||
the appraisal district determines the appraised value of a property | ||
using mass appraisal standards, the mass appraisal standards must | ||
comply with the Uniform Standards of Professional Appraisal | ||
Practice. The same or similar appraisal methods and techniques | ||
shall be used in appraising the same or similar kinds of | ||
property. However, each property shall be appraised based upon the | ||
individual characteristics that affect the property's market | ||
value, and all available evidence that is specific to the value of | ||
the property shall be taken into account in determining the | ||
property's market value. | ||
SECTION 11. Section 25.19, Tax Code, is amended by adding | ||
Subsection (b-3) to read as follows: | ||
(b-3) This subsection applies only to an appraisal district | ||
described by Section 6.41(b-2). In addition to the information | ||
required by Subsection (b), the chief appraiser shall state in a | ||
notice of appraised value of property included in a classification | ||
described by Section 6.425(b) that the property owner has the right | ||
to have a protest relating to the property heard by a special panel | ||
of the appraisal review board. | ||
SECTION 12. Section 41.44(d), Tax Code, is amended to read | ||
as follows: | ||
(d) A notice of protest is sufficient if it identifies the | ||
protesting property owner, including a person claiming an ownership | ||
interest in the property even if that person is not listed on the | ||
appraisal records as an owner of the property, identifies the | ||
property that is the subject of the protest, and indicates apparent | ||
dissatisfaction with some determination of the appraisal office. | ||
The notice need not be on an official form, but the comptroller | ||
shall prescribe a form that provides for more detail about the | ||
nature of the protest. The form must permit a property owner to | ||
include each property in the appraisal district that is the subject | ||
of a protest. The form must permit a property owner to request that | ||
the protest be heard by a special panel established under Section | ||
6.425 if the protest will be determined by an appraisal review board | ||
to which that section applies and the property is included in a | ||
classification described by that section. The comptroller, each | ||
appraisal office, and each appraisal review board shall make the | ||
forms readily available and deliver one to a property owner on | ||
request. | ||
SECTION 13. Section 41.45, Tax Code, is amended by amending | ||
Subsection (d) and adding Subsections (d-1), (d-2), and (d-3) to | ||
read as follows: | ||
(d) This subsection does not apply to a special panel | ||
established under Section 6.425. An appraisal review board | ||
consisting of more than three members may sit in panels of not fewer | ||
than three members to conduct protest hearings. [ |
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board, the board may refer the matter for rehearing to a panel | ||
composed of members who did not hear the original hearing or, if | ||
there are not at least three members who did not hear the original | ||
protest, the board may determine the protest. [ |
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(d-1) An appraisal review board to which Section 6.425 | ||
applies shall sit in special panels established under that section | ||
to conduct protest hearings. A special panel may conduct a protest | ||
hearing relating to property only if the property is included in the | ||
classification for which the panel was established and the property | ||
owner has requested that the panel conduct the hearing. The board | ||
may rehear a protest heard by a special panel if the board elects | ||
not to accept the recommendation of the panel. | ||
(d-2) The determination of a protest heard by a panel under | ||
Subsection (d) or (d-1) must be made by the board. | ||
(d-3) The board must deliver notice of a hearing or meeting | ||
to determine a protest heard by a panel, or to rehear a protest, | ||
under Subsection (d) or (d-1) in accordance with the provisions of | ||
this subchapter. | ||
SECTION 14. Section 41.66, Tax Code, is amended by amending | ||
Subsection (k) and adding Subsection (k-1) to read as follows: | ||
(k) This subsection does not apply to a special panel | ||
established under Section 6.425. If an appraisal review board sits | ||
in panels to conduct protest hearings, protests shall be randomly | ||
assigned to panels, except that the board may consider the type of | ||
property subject to the protest or the ground of the protest for the | ||
purpose of using the expertise of a particular panel in hearing | ||
protests regarding particular types of property or based on | ||
particular grounds. If a protest is scheduled to be heard by a | ||
particular panel, the protest may not be reassigned to another | ||
panel without the consent of the property owner or designated | ||
agent. If the appraisal review board has cause to reassign a | ||
protest to another panel, a property owner or designated agent may | ||
agree to reassignment of the protest or may request that the hearing | ||
on the protest be postponed. The board shall postpone the hearing | ||
on that request. A change of members of a panel because of a | ||
conflict of interest, illness, or inability to continue | ||
participating in hearings for the remainder of the day does not | ||
constitute reassignment of a protest to another panel. | ||
(k-1) On the request of a property owner, an appraisal | ||
review board to which Section 6.425 applies shall assign a protest | ||
relating to property included in a classification described by that | ||
section to the special panel established to conduct protest | ||
hearings relating to property included in that classification. If | ||
the board has established more than one special panel to conduct | ||
protest hearings relating to property included in a particular | ||
classification, protests relating to property included in that | ||
classification shall be randomly assigned to those special panels. | ||
If a protest is scheduled to be heard by a particular special panel, | ||
the protest may not be reassigned to another special panel without | ||
the consent of the property owner or designated agent. If the board | ||
has cause to reassign a protest to another special panel, a property | ||
owner or designated agent may agree to reassignment of the protest | ||
or may request that the hearing on the protest be postponed. The | ||
board shall postpone the hearing on that request. A change of | ||
members of a special panel because of a conflict of interest, | ||
illness, or inability to continue participating in hearings for the | ||
remainder of the day does not constitute reassignment of a protest | ||
to another special panel. | ||
SECTION 15. Section 403.302(o), Government Code, is amended | ||
to read as follows: | ||
(o) The comptroller shall adopt rules governing the conduct | ||
of the study after consultation with the comptroller's property tax | ||
administration advisory board [ |
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SECTION 16. Sections 403.302(m-1) and (n), Government Code, | ||
are repealed. | ||
SECTION 17. Sections 5.05, 5.102, 5.13, and 23.01, Tax | ||
Code, as amended by this Act, apply only to the appraisal of | ||
property for ad valorem tax purposes for a tax year beginning on or | ||
after January 1, 2018. | ||
SECTION 18. Section 6.03(a), Tax Code, as amended by this | ||
Act, does not affect the right of a person serving on the board of | ||
directors of an appraisal district on January 1, 2018, to complete | ||
the person's term on the board. | ||
SECTION 19. Section 6.41(d-9), Tax Code, as amended by this | ||
Act, and Section 6.41(d-10), Tax Code, as added by this Act, apply | ||
only to the appointment of appraisal review board members to terms | ||
beginning on or after January 1, 2019. | ||
SECTION 20. Section 6.42(d), Tax Code, as added by this Act, | ||
applies only to a recommendation, determination, decision, or other | ||
action by an appraisal review board or a panel of such a board on or | ||
after January 1, 2018. A recommendation, determination, decision, | ||
or other action by an appraisal review board or a panel of such a | ||
board before January 1, 2018, is governed by the law as it existed | ||
immediately before that date, and that law is continued in effect | ||
for that purpose. | ||
SECTION 21. Section 25.19(b-3), Tax Code, as added by this | ||
Act, applies only to a notice of appraised value for a tax year | ||
beginning on or after January 1, 2019. A notice of appraised value | ||
for a tax year beginning before January 1, 2019, is governed by the | ||
law in effect immediately before that date, and that law is | ||
continued in effect for that purpose. | ||
SECTION 22. Sections 41.45 and 41.66, Tax Code, as amended | ||
by this Act, apply only to a protest filed under Chapter 41, Tax | ||
Code, on or after January 1, 2019. A protest filed under that | ||
chapter before January 1, 2019, is governed by the law in effect on | ||
the date the protest was filed, and the former law is continued in | ||
effect for that purpose. | ||
SECTION 23. (a) Except as provided by Subsection (b) of | ||
this section, this Act takes effect January 1, 2018. | ||
(b) The following provisions take effect September 1, 2018: | ||
(1) Sections 6.41(b) and (d-9), Tax Code, as amended | ||
by this Act; | ||
(2) Sections 6.41(b-1), (b-2), and (d-10), Tax Code, | ||
as added by this Act; | ||
(3) Section 6.414(d), Tax Code, as amended by this | ||
Act; | ||
(4) Section 6.425, Tax Code, as added by this Act; | ||
(5) Section 25.19(b-3), Tax Code, as added by this | ||
Act; | ||
(6) Section 41.44(d), Tax Code, as amended by this | ||
Act; | ||
(7) Section 41.45(d), Tax Code, as amended by this | ||
Act; | ||
(8) Sections 41.45(d-1), (d-2), and (d-3), Tax Code, | ||
as added by this Act; | ||
(9) Section 41.66(k), Tax Code, as amended by this | ||
Act; and | ||
(10) Section 41.66(k-1), Tax Code, as added by this | ||
Act. |