Bill Text: TX HB988 | 2021-2022 | 87th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to ad valorem taxation; creating a criminal offense.
Spectrum: Moderate Partisan Bill (Republican 13-4)
Status: (Passed) 2021-06-15 - See remarks for effective date [HB988 Detail]
Download: Texas-2021-HB988-Comm_Sub.html
Bill Title: Relating to ad valorem taxation; creating a criminal offense.
Spectrum: Moderate Partisan Bill (Republican 13-4)
Status: (Passed) 2021-06-15 - See remarks for effective date [HB988 Detail]
Download: Texas-2021-HB988-Comm_Sub.html
87R16031 SMT-F | |||
By: Shine, Rodriguez, Lucio III, Button, | H.B. No. 988 | ||
et al. | |||
Substitute the following for H.B. No. 988: | |||
By: Sanford | C.S.H.B. No. 988 |
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relating to the administration of the system for appraising | ||
property for ad valorem tax purposes. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 5.103, Tax Code, is amended by amending | ||
Subsection (d) and adding Subsection (e) to read as follows: | ||
(d) An appraisal review board shall incorporate [ |
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the model hearing procedures prepared by the comptroller when | ||
adopting the board's [ |
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required by Section 41.01(c). An appraisal review board may adopt | ||
procedures that supplement the model hearing procedures, provided | ||
that the supplemental procedures do not contradict or circumvent | ||
the model hearing procedures. | ||
(e) Each year the comptroller shall review the hearing | ||
procedures adopted by each appraisal review board to determine | ||
whether the hearing procedures incorporate the model hearing | ||
procedures prepared by the comptroller under this section | ||
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SECTION 2. Section 5.104(l), Tax Code, is amended to read as | ||
follows: | ||
(l) The comptroller shall issue an annual report that | ||
summarizes the information included in the surveys submitted during | ||
the preceding tax year. The report must also include a summary of | ||
the comments, complaints, and suggestions forwarded to the | ||
comptroller during the preceding tax year by taxpayer liaison | ||
officers under Section 6.052(a), the results of the comptroller's | ||
review of appraisal review board hearing procedures during the | ||
preceding tax year under Section 5.103(e), and the results of | ||
requests for limited binding arbitration filed with the comptroller | ||
during the preceding tax year under Section 41A.015. The report may | ||
not disclose the identity of an individual who submitted a survey, | ||
comment, complaint, suggestion, or request for arbitration. | ||
SECTION 3. Section 6.04(d), Tax Code, is amended to read as | ||
follows: | ||
(d) The board shall develop and implement policies that | ||
provide the public with reasonable opportunity to appear before the | ||
board to speak on any issue under the jurisdiction of the board. | ||
Reasonable time shall be provided during each board meeting for | ||
public comment on appraisal district and appraisal review board | ||
policies and procedures, and a report from the taxpayer liaison | ||
officer [ |
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SECTION 4. Section 6.052, Tax Code, is amended by amending | ||
Subsections (a), (b), and (c) and adding Subsection (g) to read as | ||
follows: | ||
(a) The board of directors for an appraisal district | ||
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appoint a taxpayer liaison officer who shall serve at the pleasure | ||
of the 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, complaints, 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 district. The taxpayer | ||
liaison officer shall forward to the comptroller comments, | ||
complaints, and suggestions filed under this subsection in the form | ||
and manner prescribed by the comptroller not later than December 31 | ||
of each year. A person may serve as the taxpayer liaison officer | ||
for more than one appraisal district if each appraisal district for | ||
which the person is appointed to serve as taxpayer liaison officer | ||
is established for a county with a population of less than 120,000. | ||
(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, complaints, 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, complaints, 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 board | ||
at each meeting on the status of all comments, complaints, and | ||
suggestions filed with the officer under Subsection (a) of this | ||
section and all complaints filed with the board under Section | ||
6.04(g). | ||
(g) Notwithstanding any other provision of this chapter, a | ||
taxpayer liaison officer does not commit an offense under this | ||
chapter if the officer communicates with the chief appraiser or | ||
another employee or agent of the appraisal district, a member of the | ||
appraisal review board established for the appraisal district, a | ||
member of the board of directors of the appraisal district, a | ||
property tax consultant, a property owner, an agent of a property | ||
owner, or another person if the communication is made in the good | ||
faith exercise of the officer's statutory duties. | ||
SECTION 5. Section 41.01, Tax Code, is amended by adding | ||
Subsections (c), (d), and (e) to read as follows: | ||
(c) The appraisal review board by rule shall adopt | ||
procedures for hearings the board conducts under this subchapter | ||
and Subchapter C. Before adopting the hearing procedures, the | ||
board shall hold a public hearing to consider the hearing | ||
procedures proposed for adoption by the board. Not later than May | ||
15 of each year, the board shall hold the hearing, make any | ||
amendments to the proposed hearing procedures the board determines | ||
are necessary, and by resolution finally adopt the hearing | ||
procedures. The board must comply with Section 5.103(d) when | ||
adopting the hearing procedures. The chairman of the board has | ||
exclusive authority over the administration of hearing procedures | ||
adopted by the board. | ||
(d) The appraisal review board shall distribute copies of | ||
the hearing procedures adopted by the board to the board of | ||
directors of, and the taxpayer liaison officer for, the appraisal | ||
district for which the appraisal review board is established and to | ||
the comptroller not later than the 15th day after the date the board | ||
adopts the hearing procedures. | ||
(e) The appraisal review board shall post a copy of the | ||
hearing procedures adopted by the board: | ||
(1) in a prominent place in each room in which the | ||
board conducts hearings under this subchapter and Subchapter C; and | ||
(2) if the appraisal district for which the board is | ||
established maintains an Internet website, on the appraisal | ||
district's website. | ||
SECTION 6. Section 41.461(a), Tax Code, is amended to read | ||
as follows: | ||
(a) At least 14 days before a hearing on a protest, the chief | ||
appraiser shall: | ||
(1) deliver a copy of the pamphlet prepared by the | ||
comptroller under Section 5.06 to the property owner initiating the | ||
protest, or to an agent representing the owner if requested by the | ||
agent; | ||
(2) inform the property owner that the owner or the | ||
agent of the owner is entitled on request to a copy of the data, | ||
schedules, formulas, and all other information the chief appraiser | ||
will introduce at the hearing to establish any matter at issue; and | ||
(3) deliver a copy of the hearing procedures adopted | ||
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SECTION 7. Section 41.66, Tax Code, is amended by amending | ||
Subsection (a) and adding Subsection (q) to read as follows: | ||
(a) The appraisal review board shall conduct hearings in | ||
accordance with the hearing procedures adopted by the appraisal | ||
review board under Section 41.01(c) [ |
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owner's notice of protest or in a separate writing delivered to the | ||
appraisal review board on or before the date the notice of protest | ||
is filed, the property owner is entitled to a copy of the hearing | ||
procedures. The copy of the hearing procedures shall be delivered | ||
to the property owner not later than the 10th day before the date | ||
the hearing on the protest begins and may be delivered with the | ||
notice of the protest hearing required under Section 41.46(a). The | ||
notice of protest form prescribed by the comptroller under Section | ||
41.44(d) or any other notice of protest form made available to a | ||
property owner by the appraisal review board or the appraisal | ||
office shall provide the property owner an opportunity to make or | ||
decline to make a request under this subsection. [ |
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(q) A person who owns property in an appraisal district or | ||
the chief appraiser of an appraisal district may file a complaint | ||
with the taxpayer liaison officer for the appraisal district | ||
alleging that the appraisal review board established for the | ||
appraisal district has adopted or is implementing hearing | ||
procedures that are not in compliance with the model hearing | ||
procedures prepared by the comptroller under Section 5.103 or is | ||
not complying with procedural requirements under this chapter. The | ||
taxpayer liaison officer shall investigate the complaint and report | ||
the findings of the investigation to the board of directors of the | ||
appraisal district. The board of directors shall direct the | ||
chairman of the appraisal review board to take remedial action if, | ||
after reviewing the taxpayer liaison officer's report, the board of | ||
directors determines that the allegations contained in the | ||
complaint are true. The board of directors may remove the member of | ||
the appraisal review board serving as chairman of the appraisal | ||
review board from that member's position as chairman if the board | ||
determines that the chairman has failed to take the actions | ||
necessary to bring the appraisal review board into compliance with | ||
Section 5.103(d) or this chapter, as applicable. | ||
SECTION 8. Chapter 41A, Tax Code, is amended by adding | ||
Section 41A.015 to read as follows: | ||
Sec. 41A.015. LIMITED BINDING ARBITRATION TO COMPEL | ||
COMPLIANCE WITH CERTAIN PROCEDURAL REQUIREMENTS RELATED TO | ||
PROTESTS. (a) A property owner who has filed a notice of protest | ||
under Chapter 41 may file a request for limited binding arbitration | ||
under this section to compel the appraisal review board or chief | ||
appraiser, as appropriate, to: | ||
(1) rescind procedural rules adopted by the appraisal | ||
review board that are not in compliance with the model hearing | ||
procedures prepared by the comptroller under Section 5.103; | ||
(2) schedule a hearing on a protest as required by | ||
Section 41.45; | ||
(3) deliver information to the property owner in the | ||
manner required by Section 41.461; | ||
(4) allow the property owner to offer evidence, | ||
examine or cross-examine witnesses or other parties, and present | ||
arguments as required by Section 41.66(b); | ||
(5) set a hearing for a time and date certain and | ||
postpone a hearing that does not begin within two hours of the | ||
scheduled time as required by Section 41.66(i); | ||
(6) schedule hearings on protests concerning multiple | ||
properties identified in the same notice of protest on the same day | ||
at the request of the property owner or the property owner's | ||
designated agent as required by Section 41.66(j); or | ||
(7) refrain from using or offering as evidence | ||
information requested by the property owner under Section 41.461 | ||
that was not delivered to the property owner at least 14 days before | ||
the hearing as required by Section 41.67(d). | ||
(b) A property owner may not file a request for limited | ||
binding arbitration under this section unless: | ||
(1) the property owner has delivered written notice to | ||
the chairman of the appraisal review board, the chief appraiser, | ||
and the taxpayer liaison officer for the applicable appraisal | ||
district by certified mail, return receipt requested, of the | ||
procedural requirement with which the property owner alleges the | ||
appraisal review board or chief appraiser failed to comply on or | ||
before the fifth business day after the date the appraisal review | ||
board or chief appraiser was required to comply with the | ||
requirement; and | ||
(2) the chairman of the appraisal review board or | ||
chief appraiser, as applicable, fails to deliver to the property | ||
owner on or before the 10th day after the date the notice is | ||
delivered a written statement confirming that the appraisal review | ||
board or chief appraiser, as applicable, will comply with the | ||
requirement or cure a failure to comply with the requirement. | ||
(c) Except as otherwise provided by this subtitle, the | ||
failure to comply with a procedural requirement listed under | ||
Subsection (a) is not a ground for postponement of a hearing on a | ||
protest. An appraisal review board may cure an alleged failure to | ||
comply with a procedural requirement that occurred during a hearing | ||
by rescinding the order determining the protest for which the | ||
hearing was held and scheduling a new hearing on the protest. | ||
(d) A property owner must request limited binding | ||
arbitration under this section by filing a request with the | ||
comptroller. The property owner may not file the request earlier | ||
than the 11th day or later than the 30th day after the date the | ||
property owner delivers the notice required by Subsection (b)(1) to | ||
the chairman of the appraisal review board, the chief appraiser, | ||
and the taxpayer liaison officer for the applicable appraisal | ||
district. | ||
(e) A request for limited binding arbitration under this | ||
section must be in a form prescribed by the comptroller and be | ||
accompanied by an arbitration deposit payable to the comptroller in | ||
the amount of: | ||
(1) $450, if the property that is the subject of the | ||
protest to which the arbitration relates qualifies as the property | ||
owner's residence homestead under Section 11.13 and the appraised | ||
or market value, as applicable, of the property is $500,000 or less, | ||
as determined by the appraisal district for the most recent tax | ||
year; or | ||
(2) $550, for property other than property described | ||
by Subdivision (1). | ||
(f) The comptroller shall prescribe the form to be used for | ||
submitting a request for limited binding arbitration under this | ||
section. The form must require the property owner to provide: | ||
(1) a statement that the property owner has provided | ||
the written notice required by Subsection (b); | ||
(2) a statement that the property owner has made the | ||
arbitration deposit required by this section; | ||
(3) a brief statement identifying the procedural | ||
requirement with which the property owner alleges the appraisal | ||
review board or chief appraiser, as applicable, has failed to | ||
comply; | ||
(4) a description of the action taken or not taken by | ||
the appraisal review board or chief appraiser regarding the | ||
procedural requirement identified under Subdivision (3); | ||
(5) a description of the property to which the award | ||
will apply; and | ||
(6) any other information reasonably necessary for the | ||
comptroller to appoint an arbitrator. | ||
(g) On receipt of the request and deposit under this | ||
section, the comptroller shall appoint an arbitrator from the | ||
registry maintained under Section 41A.06 who is eligible to serve | ||
as an arbitrator under Subsection (p) of this section. Section | ||
41A.07(h) does not apply to the appointment of an arbitrator under | ||
this section. | ||
(h) The appraisal review board, the chief appraiser, and the | ||
property owner are parties to a limited binding arbitration | ||
conducted under this section. The appraisal review board may | ||
appear by counsel, by the chairman, or by a person designated by the | ||
chairman. The chief appraiser may appear by counsel, in person, or | ||
by a designated employee. The property owner may appear in the | ||
manner provided by Section 41A.08(b)(2), (3), (4), or (5). | ||
(i) The arbitrator shall make an arbitration award and | ||
deliver an electronic copy of the award to: | ||
(1) the property owner; | ||
(2) the chairman of the appraisal review board; | ||
(3) the chief appraiser; and | ||
(4) the comptroller. | ||
(j) An award under this section: | ||
(1) shall include a determination of whether the | ||
appraisal review board or chief appraiser failed to comply with a | ||
procedural requirement as alleged in the request for limited | ||
binding arbitration; | ||
(2) if the arbitrator determines that the appraisal | ||
review board or chief appraiser failed to comply with a procedural | ||
requirement as alleged in the request, shall direct the appraisal | ||
review board or chief appraiser, as applicable, to: | ||
(A) comply with the procedural requirement; or | ||
(B) if the hearing on the protest has been held | ||
and the appraisal review board has issued an order determining the | ||
protest, rescind the order and hold a new hearing on the protest | ||
that complies with the procedural requirement; | ||
(3) shall specify the arbitrator's fee; | ||
(4) is final and may not be appealed; and | ||
(5) is enforceable as provided by Section 41A.09. | ||
(k) If the arbitrator determines that the appraisal review | ||
board or chief appraiser failed to comply with the procedural | ||
requirement that was the subject of the limited binding | ||
arbitration: | ||
(1) the comptroller, on receipt of a copy of the award, | ||
shall refund the property owner's arbitration deposit, less the | ||
amount retained by the comptroller under Section 41A.05(b); and | ||
(2) the appraisal district shall pay the arbitrator's | ||
fee. | ||
(l) If the arbitrator determines that the appraisal review | ||
board or chief appraiser complied with the procedural requirement | ||
that was the subject of the limited binding arbitration, the | ||
comptroller shall: | ||
(1) pay the arbitrator's fee out of the owner's | ||
arbitration deposit; and | ||
(2) refund to the owner the owner's arbitration | ||
deposit, less the arbitrator's fee and the amount retained by the | ||
comptroller under Section 41A.05(b). | ||
(m) As soon as practicable after receiving notice of an | ||
award, the appraisal review board or the chief appraiser shall: | ||
(1) take any action required to comply with the | ||
requirements of the award; and | ||
(2) if the award requires the appraisal review board | ||
to conduct a new hearing under Chapter 41, schedule and conduct the | ||
hearing. | ||
(n) An award under this section does not affect the property | ||
owner's right to appeal the final determination of a protest by the | ||
appraisal review board under Chapter 42. | ||
(o) A property owner may request a single limited binding | ||
arbitration under this section that covers more than one property, | ||
more than one protest hearing, or an allegation of the failure by | ||
the appraisal review board or chief appraiser to comply with more | ||
than one procedural requirement so long as the requirements of | ||
Subsection (b) are met with regard to each alleged failure to | ||
comply. The amount of the arbitration deposit and the amount of the | ||
arbitrator's fee are computed as if a single property were the | ||
subject of the arbitration. If the arbitration involves property | ||
described by Subsection (e)(1) and property described by Subsection | ||
(e)(2), the amount of the arbitration deposit and the amount of the | ||
arbitrator's fee are computed as if only the property described by | ||
Subsection (e)(2) were the subject of the arbitration. If the | ||
arbitration involves an allegation of the failure by the appraisal | ||
review board or chief appraiser to comply with more than one | ||
procedural requirement, Subsection (k) applies if the arbitrator | ||
determines that the appraisal review board or chief appraiser | ||
failed to comply with one or more of the procedural requirements | ||
that were the subject of the arbitration and Subsection (l) applies | ||
if the arbitrator determines that the appraisal review board or | ||
chief appraiser complied with all of the procedural requirements | ||
that were the subject of the arbitration. | ||
(p) Section 41A.06 applies to the registration and | ||
qualification of an arbitrator under this section except that an | ||
arbitrator under this section must: | ||
(1) be a licensed attorney; and | ||
(2) agree to conduct an arbitration for a fee that is | ||
not more than: | ||
(A) $400 if the property is described by | ||
Subsection (e)(1); or | ||
(B) $500 if the property is described by | ||
Subsection (e)(2). | ||
(q) Except as otherwise provided by this section, the | ||
provisions of this chapter apply to a limited binding arbitration | ||
under this section. In the event of a conflict between this section | ||
and another provision of this chapter, this section controls. | ||
SECTION 9. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2021. |