Bill Text: TX HB988 | 2021-2022 | 87th Legislature | Engrossed
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-Engrossed.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-Engrossed.html
By: Shine, Rodriguez, Lucio III, Button, | H.B. No. 988 | |
et al. |
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relating to the system for appraising property for ad valorem tax | ||
purposes; creating a criminal offense. | ||
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. Subchapter A, Chapter 6, Tax Code, is amended by | ||
adding Section 6.155 to read as follows: | ||
Sec. 6.155. CERTAIN COMMUNICATIONS BY TAXING UNITS | ||
PROHIBITED; PENALTY. (a) A member of the governing body, officer, | ||
or employee of a taxing unit commits an offense if the person | ||
directly or indirectly communicates with the chief appraiser or | ||
another employee of the appraisal district in which the taxing unit | ||
participates for the purpose of influencing the value at which | ||
property in the district is appraised. | ||
(b) An offense under this section is a state jail felony. | ||
SECTION 6. Section 11.253(a)(2), Tax Code, is amended to | ||
read as follows: | ||
(2) "Goods-in-transit" means tangible personal | ||
property that: | ||
(A) is acquired in or imported into this state to | ||
be forwarded to another location in this state or outside this | ||
state; | ||
(B) is stored under a contract of bailment by a | ||
public warehouse operator at one or more public warehouse | ||
facilities in this state that are not in any way owned or controlled | ||
by the owner of the personal property for the account of the person | ||
who acquired or imported the property; | ||
(C) is transported to another location in this | ||
state or outside this state not later than 175 days, or, if | ||
applicable, the greater number of days adopted by the taxing unit as | ||
authorized by Subsection (l), after the date the person acquired | ||
the property in or imported the property into this state; and | ||
(D) does not include oil, natural gas, petroleum | ||
products, aircraft, dealer's motor vehicle inventory, dealer's | ||
vessel and outboard motor inventory, dealer's heavy equipment | ||
inventory, or retail manufactured housing inventory. | ||
SECTION 7. Section 11.253, Tax Code, is amended by amending | ||
Subsections (e) and (g) and adding Subsection (l) to read as | ||
follows: | ||
(e) In determining the market value of goods-in-transit | ||
that in the preceding year were stored in this state, the chief | ||
appraiser shall exclude the cost of equipment, machinery, or | ||
materials that entered into and became component parts of the | ||
goods-in-transit but were not themselves goods-in-transit or that | ||
were not transported to another location in this state or outside | ||
this state before the expiration of 175 days, or, if applicable, the | ||
greater number of days adopted by the taxing unit as authorized by | ||
Subsection (l), after the date they were brought into this state by | ||
the property owner or acquired by the property owner in this state. | ||
For component parts held in bulk, the chief appraiser may use the | ||
average length of time a component part was held by the owner of the | ||
component parts during the preceding year at a location in this | ||
state that was not owned by or under the control of the owner of the | ||
component parts in determining whether the component parts were | ||
transported to another location in this state or outside this state | ||
before the expiration of 175 days, or, if applicable, the greater | ||
number of days adopted by the taxing unit as authorized by | ||
Subsection (l). | ||
(g) If the property owner or the chief appraiser | ||
demonstrates that the method provided by Subsection (d) | ||
significantly understates or overstates the market value of the | ||
property qualified for an exemption under Subsection (b) in the | ||
current year, the chief appraiser shall determine the market value | ||
of the goods-in-transit to be exempt by determining, according to | ||
the property owner's records and any other available information, | ||
the market value of those goods-in-transit owned by the property | ||
owner on January 1 of the current year, excluding the cost of | ||
equipment, machinery, or materials that entered into and became | ||
component parts of the goods-in-transit but were not themselves | ||
goods-in-transit or that were not transported to another location | ||
in this state or outside this state before the expiration of 175 | ||
days, or, if applicable, the greater number of days adopted by the | ||
taxing unit as authorized by Subsection (l), after the date they | ||
were brought into this state by the property owner or acquired by | ||
the property owner in this state. | ||
(l) This subsection applies only to a taxing unit any part | ||
of which is located in an area designated a disaster area by a | ||
disaster declaration issued under Section 418.014 or 418.108, | ||
Government Code, that has not expired or otherwise been terminated. | ||
The governing body of a taxing unit, in the manner provided by law | ||
for official action, may extend the date by which goods-in-transit | ||
must be transported to another location in this state or outside | ||
this state to a date not later than the 270th day after the date the | ||
person acquired the property in or imported the property into this | ||
state. An extension adopted by official action under this | ||
subsection applies only to: | ||
(1) the exemption from ad valorem taxation by the | ||
taxing unit adopting the extension; and | ||
(2) the tax year in which the extension is adopted. | ||
SECTION 8. Section 23.55, Tax Code, is amended by adding | ||
Subsections (e-1) and (r) to read as follows: | ||
(e-1) A property owner may request in writing that the chief | ||
appraiser determine whether a change of use of the property owner's | ||
land has occurred. The request must state the manner in which the | ||
property owner is currently using the land. Not later than the 90th | ||
day after the date the chief appraiser receives the request, the | ||
chief appraiser shall provide the property owner with a written | ||
determination that includes a description of the current use of the | ||
land and a statement as to whether the current use of the land has | ||
resulted in a change of use of the land. If the chief appraiser | ||
determines that a change of use of the land has not occurred, the | ||
chief appraiser may not later determine that a change of use of the | ||
land has occurred on the basis of the use described in the written | ||
determination. | ||
(r) The sanctions provided by Subsection (a) do not apply to | ||
a change in the use of land if, after the change in use, the physical | ||
characteristics of the land remain consistent with the physical | ||
characteristics of the land during the period for which the land was | ||
eligible for appraisal under this subchapter. | ||
SECTION 9. Section 25.02, Tax Code, is amended by adding | ||
Subsections (c), (d), (e), and (f) to read as follows: | ||
(c) Each appraisal record must have a unique account number. | ||
If an appraisal district changes the account number of an appraisal | ||
record, the appraisal district must provide written notice of the | ||
change to the property owner as soon as practicable after the change | ||
and provide notice of the change in the next notice of appraised | ||
value of the property included in the record that is delivered to | ||
the property owner under Section 25.19. | ||
(d) This subsection does not apply to an appraisal record | ||
for a residential property, for an improvement only, or for a | ||
property on which a delinquent tax is due. On the written request | ||
of a property owner, the chief appraiser shall combine contiguous | ||
parcels or tracts of the owner's real property into a single | ||
appraisal record. On the written request of a property owner, the | ||
chief appraiser shall separate identifiable segments of the owner's | ||
parcel or tract of real property into individual appraisal records. | ||
(e) A property owner must make a request under Subsection | ||
(d) before January 1 of the tax year for which the requested change | ||
to the appraisal records is to be made. The request must contain a | ||
legal description as contained in a deed sufficient to describe the | ||
property subject to the request. | ||
(f) If a chief appraiser refuses to combine parcels or | ||
tracts, or separate a parcel or tract, on request of a property | ||
owner under Subsection (d), the appraisal review board may order | ||
the requested change on a motion filed by the property owner under | ||
Section 25.25 or a protest filed under Chapter 41. | ||
SECTION 10. Section 25.19, Tax Code, is amended by adding | ||
Subsections (m) and (n) to read as follows: | ||
(m) The chief appraiser may not deliver a corrected or | ||
amended notice of appraised value later than June 1 for property for | ||
which a person files a rendition statement or property report as | ||
required by Chapter 22 unless the purpose of the notice is to: | ||
(1) include omitted property; or | ||
(2) correct a clerical error. | ||
(n) As soon as practicable after delivering a notice | ||
required by this section to a property owner, the chief appraiser | ||
shall post the notice on the appraisal district's Internet website, | ||
if the appraisal district maintains a website, as part of the | ||
appraisal record pertaining to the property. | ||
SECTION 11. Section 31.11(h), Tax Code, is amended to read | ||
as follows: | ||
(h) This section does not apply to an overpayment caused by | ||
a change of exemption status or correction of a tax roll, including | ||
an overpayment received after a correction of a tax roll as a result | ||
of an appeal under Chapter 42. Such an overpayment is covered by | ||
Section 26.15 or 42.43, as applicable. | ||
SECTION 12. 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 13. 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 Section | ||
6.425(b). The form must permit a property owner to request that the | ||
protest be heard by a single-member panel authorized by Section | ||
41.45(b-4). 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 14. Subchapter C, Chapter 41, Tax Code, is amended | ||
by adding Section 41.445 to read as follows: | ||
Sec. 41.445. INFORMAL CONFERENCE BEFORE HEARING ON PROTEST. | ||
(a) The appraisal review board shall schedule an informal | ||
conference with the appraisal office for each property owner who | ||
files a notice of protest with the board, to be held before the | ||
hearing on the protest. Notice of the date, time, and location of | ||
the informal conference shall be delivered to the property owner | ||
with the notice of protest hearing required under Section 41.46. | ||
(b) Except as provided by Subsection (c), the informal | ||
conference may not be scheduled to be held on the same day on which | ||
the hearing on the protest is scheduled to be held or during the | ||
five-day period preceding that date. | ||
(c) On request made in writing by the property owner to the | ||
appraisal office with good cause shown, the appraisal office shall | ||
reschedule the informal conference for a later date that is before | ||
the date of the hearing on the protest. The rescheduling of the | ||
informal conference under this subsection does not require the | ||
delivery of additional written notice to the property owner. The | ||
appraisal office may reschedule the informal conference for a date | ||
during the five-day period described by Subsection (b) with the | ||
property owner's consent. | ||
(d) The appraisal office shall cancel the informal | ||
conference if the property owner informs the appraisal office, in | ||
writing, that the property owner elects not to participate in the | ||
conference. | ||
(e) The property owner's failure to appear at the informal | ||
conference does not prevent the appraisal review board from hearing | ||
the protest and issuing an order determining the protest. | ||
SECTION 15. Section 41.45(b-1), Tax Code, is amended to | ||
read as follows: | ||
(b-1) An appraisal review board shall conduct a hearing on a | ||
protest by telephone conference call if [ |
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property owner intends to appear by telephone conference call in | ||
the owner's notice of protest or by written notice filed with the | ||
board not later than the 10th day before the date of the hearing [ |
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[ |
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SECTION 16. Section 41.45, Tax Code, is amended by adding | ||
Subsections (b-4) and (b-5) and amending Subsections (d), (d-2), | ||
and (d-3) to read as follows: | ||
(b-4) An appraisal review board shall sit in a single-member | ||
panel to conduct a protest hearing under this section if the | ||
property owner requests that the hearing be conducted by a | ||
single-member panel: | ||
(1) in the notice of protest; or | ||
(2) in writing submitted to the board not later than | ||
the 10th day before the date of the hearing. | ||
(b-5) If the recommendation of a single-member panel that | ||
conducts a hearing under Subsection (b-4) is not accepted by the | ||
appraisal review board, the board may refer the matter for | ||
rehearing to a single-member panel composed of a member who did not | ||
hear the original protest or the board may determine the protest. | ||
(d) This subsection does not apply to a single-member panel | ||
established under Subsection (b-4) of this section or 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. If the | ||
recommendation of a panel is not accepted by the board, the board | ||
may refer the matter for rehearing to a panel composed of members | ||
who did not hear the original protest or, if there are not at least | ||
three members who did not hear the original protest, the board may | ||
determine the protest. | ||
(d-2) The determination of a protest heard by a panel under | ||
Subsection (b-4), (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 (b-4), (d), or (d-1) in accordance with the | ||
provisions of this subchapter. | ||
SECTION 17. 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 18. Section 41.47, Tax Code, is amended by amending | ||
Subsection (c) and adding Subsection (d-1) to read as follows: | ||
(c) If the protest is of the determination of the appraised | ||
value of the owner's property, the appraisal review board must | ||
state in the order the appraised value of the property, listed | ||
separately in the case of real property as the appraised value of | ||
the land and the appraised value of any improvement to the land as | ||
allocated by the chief appraiser: | ||
(1) as shown in the appraisal records submitted to the | ||
board by the chief appraiser under Section 25.22 or 25.23; and | ||
(2) as finally determined by the board. | ||
(d-1) This subsection applies only to an appraisal district | ||
established in a county with a population of 120,000 or more. The | ||
requirements of this subsection are in addition to the requirements | ||
of Subsection (d). On written request submitted to the chief | ||
appraiser, the chief appraiser shall deliver by e-mail, in the | ||
manner provided by this subsection, a copy of the notice of issuance | ||
of the order and a copy of the order required by Subsection (d) if | ||
the property subject to the order is not the subject of an agreement | ||
under Section 1.085. A request under this subsection may be | ||
submitted only by the property owner whose property is subject to | ||
the protest for which the order is issued, an attorney representing | ||
the property owner, or an individual designated by the property | ||
owner under Section 1.111. A person may include in a single request | ||
more than one property owned by the same property owner or multiple | ||
properties owned by multiple property owners. A person may submit | ||
more than one request. A person submitting a request must indicate | ||
in the request that the chief appraiser must make the delivery to | ||
the property owner, an attorney representing the property owner, an | ||
individual designated by the property owner under Section 1.111, or | ||
a combination of those persons. A person must submit a request | ||
before the protest hearing relating to each property included in | ||
the request. The chief appraiser shall deliver, as provided by this | ||
subsection, a copy of the notice of issuance of the order and a copy | ||
of the order required by Subsection (d) not later than the 21st day | ||
after the date the appraisal review board issues the order. | ||
SECTION 19. 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 20. 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: | ||
(1) appeal the final determination of a protest by the | ||
appraisal review board under Chapter 42; or | ||
(2) pursue any other legal or statutory remedy | ||
available to the property owner. | ||
(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 21. Section 42.01, Tax Code, is amended by adding | ||
Subsection (a-1) to read as follows: | ||
(a-1) A property owner may not appeal separately the portion | ||
of an order of an appraisal review board determining the appraised | ||
value of land or the portion of the order determining the appraised | ||
value of an improvement to the land if the order determined the | ||
appraised value of both. | ||
SECTION 22. Section 42.015(a), Tax Code, is amended to read | ||
as follows: | ||
(a) A person leasing property who is contractually | ||
obligated to reimburse the property owner for taxes imposed on the | ||
property is entitled to appeal an order of the appraisal review | ||
board determining a protest relating to the property: | ||
(1) brought by the person under Section 41.413; or | ||
(2) brought by the property owner if the property | ||
owner does not appeal the order. | ||
SECTION 23. Section 42.23(e), Tax Code, is amended to read | ||
as follows: | ||
(e) For purposes of Subsection (d), a property owner may | ||
designate a cause of action under Section 42.25 or 42.26 as the | ||
basis for an appeal, but may not designate a cause of action under | ||
both sections as the basis for the appeal. Discovery regarding a | ||
cause of action that is not specifically designated by the property | ||
owner under Subsection (d) shall be conducted as provided by the | ||
Texas Rules of Civil Procedure. A [ |
||
order, including a protective order [ |
||
Procedure, that conflicts with Subsection (d). | ||
SECTION 24. Section 11.253, Tax Code, as amended by this | ||
Act, applies only to a tax year beginning on or after January 1, | ||
2022. | ||
SECTION 25. Section 25.19, Tax Code, as amended by this Act, | ||
applies only to a notice of appraised value for a tax year beginning | ||
on or after January 1, 2022. | ||
SECTION 26. Section 41.445, Tax Code, as added by this Act, | ||
and Section 41.45(b-1), Tax Code, as amended by this Act, apply only | ||
to a protest under Chapter 41, Tax Code, for which a notice of | ||
protest is filed by a property owner on or after the effective date | ||
of this Act. A protest under Chapter 41, Tax Code, for which a | ||
notice of protest is filed by a property owner before the effective | ||
date of this Act is governed by the law in effect on the date the | ||
notice of protest is filed, and the former law is continued in | ||
effect for that purpose. | ||
SECTION 27. Sections 41.45 and 41.47, Tax Code, as amended | ||
by this Act, apply only to a protest under Chapter 41, Tax Code, for | ||
which a notice of protest is filed on or after January 1, 2022. | ||
SECTION 28. Sections 42.01, 42.015, and 42.23, Tax Code, as | ||
amended by this Act, apply only to an appeal under Chapter 42, Tax | ||
Code, that is filed on or after January 1, 2022. | ||
SECTION 29. (a) Except as provided by Subsection (b) of this | ||
section, this Act takes effect January 1, 2022. | ||
(b) Sections 5.103, 5.104, 6.04, 6.052, 41.01, 41.461, and | ||
41.66, Tax Code, as amended by this Act, and Section 41A.015, Tax | ||
Code, as added by this Act, take effect immediately if this Act | ||
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, those sections of this Act take effect September 1, 2021. |