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
 
 
  By: Shine, et al. (Senate Sponsor - Hancock) H.B. No. 988
         (In the Senate - Received from the House April 27, 2021;
  May 3, 2021, read first time and referred to Committee on Local
  Government; May 21, 2021, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 6, Nays 0;
  May 21, 2021, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 988 By:  Springer
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to ad valorem taxation; 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 [follow]
  the model hearing procedures prepared by the comptroller when
  adopting the board's [establishing its] procedures for hearings as
  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
  [41.66(a)].
         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 6.03, Tax Code, is amended by amending
  Subsection (k) and adding Subsection (k-1) to read as follows:
         (k)  Except as provided by Subsection (k-1), the [The]
  governing body of each taxing unit entitled to vote shall determine
  its vote by resolution and submit it to the chief appraiser before
  December 15. The chief appraiser shall count the votes, declare the
  five candidates who receive the largest cumulative vote totals
  elected, and submit the results before December 31 to the governing
  body of each taxing unit in the district and to the candidates. For
  purposes of determining the number of votes received by the
  candidates, the candidate receiving the most votes of the
  conservation and reclamation districts is considered to have
  received all of the votes cast by conservation and reclamation
  districts and the other candidates are considered not to have
  received any votes of the conservation and reclamation districts.
  The chief appraiser shall resolve a tie vote by any method of
  chance.
         (k-1)  This subsection applies only to an appraisal district
  established in a county with a population of 120,000 or more. The
  governing body of each taxing unit entitled to cast at least five
  percent of the total votes must determine its vote by resolution
  adopted at the first or second open meeting of the governing body
  that is held after the date the chief appraiser delivers the ballot
  to the presiding officer of the governing body. The governing body
  must submit its vote to the chief appraiser not later than the third
  day following the date the resolution is adopted.
         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 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
  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.
         (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 unless the person owns or
  leases the property that is the subject of the communication.
         (b)  An offense under this section is a Class A misdemeanor.
         SECTION 6.  Section 11.252(d), Tax Code, is amended to read
  as follows:
         (d)  In connection with the requirements and procedures
  under Subsection (c), the comptroller by rule shall adopt a form to
  be completed by the lessee of a motor vehicle for which the owner of
  the vehicle may apply for an exemption under Subsection (a).  The
  form shall require a lessee who is an individual to provide the
  lessee's name, address, and driver's license or personal
  identification certificate number.  The form shall require a
  lessee that is an entity described by Subsection (b) to provide the
  lessee's name, address, and, if applicable, federal tax
  identification number.  The form shall require a lessee who is an
  individual, or the authorized representative of a lessee that is an
  entity described by Subsection (b), to certify, either under oath
  or by written, unsworn declaration, that the lessee does not hold
  the vehicle for the production of income and that the vehicle is
  used primarily for activities that do not involve the production of
  income.  The comptroller shall include on the form a notice of the
  penalties prescribed by Section 37.10, Penal Code, for making a
  false statement on the form.
         SECTION 7.  Section 11.253, Tax Code, is amended by adding
  Subsections (l) and (m) to read as follows:
         (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, on or after January 1, 2020. Notwithstanding
  Subsections (a)(2)(C), (e), and (g), 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.
         (m)  This subsection and Subsection (l) expire December 31,
  2025.
         SECTION 8.  Sections 21.021(a) and (b), Tax Code, are
  amended to read as follows:
         (a)  Except as otherwise provided by Section 21.031(b-2), a
  [A] vessel or other watercraft used as an instrumentality of
  commerce, [(]as defined by [in] Section 21.031, [21.031(b) of this
  code)] is taxable pursuant to Section 21.02 [of this code].
         (b)  A special-purpose vessel or other watercraft not used as
  an instrumentality of commerce, [(]as defined by [in] Section
  21.031, [21.031(b) of this code)] is deemed to be located on January
  1 for more than a temporary period for purposes of Section 21.02 [of
  this code] in the taxing unit in which it was physically located
  during the year preceding the tax year. If the vessel or watercraft
  was physically located in more than one taxing unit during the year
  preceding the tax year, it is deemed to be located for more than a
  temporary period for purposes of Section 21.02 [of this code] in the
  taxing unit in which it was physically located for the longest
  period during the year preceding the tax year or for 30 days,
  whichever is longer. If a vessel or other watercraft is not deemed
  to be located in any taxing unit on January 1 for more than a
  temporary period pursuant to this subsection, the property is
  taxable as provided by Sections 21.02(a)(2) through (4)
  [Subdivisions (2) through (4) of Section 21.02 of this code].
         SECTION 9.  Section 21.031, Tax Code, is amended by amending
  Subsection (b) and adding Subsections (b-1), (b-2), (b-3), and (i)
  to read as follows:
         (b)  The appraisal office shall make the allocation as
  provided by Subsections (b-1), (b-2), and (b-3).
         (b-1)  Except as provided by Subsection (b-2), the [follows:
               [(1)  The] allocable portion of the total fair market
  value of a vessel or other watercraft used as an instrumentality of
  commerce that is taxable in this state is determined by multiplying
  the total fair market value by a fraction, the numerator of which is
  the number of miles the vessel or watercraft was operated in this
  state during the year preceding the tax year and the denominator of
  which is the total number of miles the vessel or watercraft was
  operated during the year preceding the tax year. [For purposes of
  this section, "vessel or other watercraft used as an
  instrumentality of commerce" means a vessel or other watercraft
  that is primarily employed in the transportation of cargo,
  passengers, or equipment, and that is economically employed when it
  is moving from point to point as a means of transportation.]
         (b-2)  A property owner that operates a fleet of vessels or
  other watercraft that are used as instrumentalities of commerce may
  elect in writing submitted to the appraisal office to have the
  appraisal office make the allocation under this subsection. If the
  property owner makes the election, the allocable portion of the
  total fair market value of a vessel or other watercraft that is part
  of the property owner's fleet, is used as an instrumentality of
  commerce, is taxable in this state, and has taxable situs at a
  location in the appraisal district is determined by multiplying the
  total fair market value of the vessel or other watercraft by a
  fraction, the numerator of which is the number of miles that all the
  vessels or other watercraft of the property owner's fleet that are
  used as instrumentalities of commerce, are taxable in this state,
  and have taxable situs at a location in the same appraisal district
  as the vessel or other watercraft the value of which is allocated
  under this subsection were operated in this state during the year
  preceding the tax year and the denominator of which is the total
  number of miles that all the vessels or other watercraft of the
  property owner's fleet that are used as instrumentalities of
  commerce, are taxable in this state, and have taxable situs at a
  location in the same appraisal district as the vessel or other
  watercraft the value of which is allocated under this subsection
  were operated during the year preceding the tax year.
  Notwithstanding Sections 21.02 and 21.021, a property owner that
  elects to have the appraisal office make the allocation of the
  property owner's fleet under this subsection may designate the
  location of the property owner's principal place of business as the
  taxable situs of the fleet.
         (b-3) [(2)]  The allocable portion of the total fair market
  value of a special-purpose vessel or other watercraft not used as an
  instrumentality of commerce is determined by multiplying the total
  fair market value by a fraction, the numerator of which is the
  number of days the vessel or watercraft was physically located in
  this state during the year preceding the tax year and the
  denominator of which is 365. [For purposes of this section,
  "special-purpose vessel or other watercraft not used as an
  instrumentality of commerce" means a vessel or other watercraft
  that:
                     [(A) is designed to be transient and customarily
  is moved from location to location on a more or less regular basis;
                     [(B) is economically employed when operated in a
  localized area or in a fixed place; and
                     [(C) is not primarily employed to transport cargo,
  passengers, and equipment but rather to perform some specialized
  function or operation not requiring constant movement from point to
  point.]
         (i)  For purposes of this section:
               (1)  "Special-purpose vessel or other watercraft not
  used as an instrumentality of commerce" means a vessel or other
  watercraft that:
                     (A)  is designed to be transient and customarily
  is moved from location to location on a more or less regular basis;
                     (B)  is economically employed when operated in a
  localized area or in a fixed place; and
                     (C)  is not primarily employed to transport cargo,
  passengers, and equipment but rather to perform some specialized
  function or operation not requiring constant movement from point to
  point.
               (2)  "Vessel or other watercraft used as an
  instrumentality of commerce" means a vessel or other watercraft
  that is primarily employed in the transportation of cargo,
  passengers, or equipment, and that is economically employed when it
  is moving from point to point as a means of transportation.
         SECTION 10.  Section 25.02, Tax Code, is amended by adding
  Subsections (c), (d), (e), (f), and (g) 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.
         (g)  The combination of contiguous parcels or tracts of real
  property into a single appraisal record or the separation of
  identifiable segments of a parcel or tract of real property into
  individual appraisal records under this section does not affect the
  application of generally accepted appraisal methods and techniques
  to the appraisal of real property associated with those appraisal
  records, including real property that is part of the same economic
  unit as real property contained in the same or another appraisal
  record.
         SECTION 11.  Section 25.19(b), Tax Code, as effective
  January 1, 2022, is amended to read as follows:
         (b)  The chief appraiser shall separate real from personal
  property and include in the notice for each:
               (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)  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";
               (6)  a detailed explanation of the time and procedure
  for protesting the value;
               (7)  the date and place the appraisal review board will
  begin hearing protests; [and]
               (8)  an explanation of the availability and purpose of
  an informal conference with the appraisal office before a hearing
  on a protest; 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 district only determines the value of
  the property.
         SECTION 12.  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 13.  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 14.  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 is
  responsible for 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 15.  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 16.  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.
  The appraisal office shall hold an informal conference with each
  property owner who files a notice of protest with the appraisal
  review board and requests an informal conference. An informal
  conference must be held before the hearing on the protest.
         SECTION 17.  Section 41.45, Tax Code, is amended by amending
  Subsections (b-1), (d), (d-2), and (d-3) and adding Subsections
  (b-4) and (b-5) to read as follows:
         (b-1)  An appraisal review board shall conduct a hearing on a
  protest by telephone conference call if[:
               [(1)]  the property owner notifies the board that the
  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 [;
  or
               [(2)  the board proposes that the hearing be conducted
  by telephone conference call and the property owner agrees to the
  hearing being conducted in that manner].
         (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 18.  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
  [established] by the appraisal review board under Section 41.01
  [41.66] to the property owner.
         SECTION 19.  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 20.  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) [establish by rule the
  procedures for hearings it conducts as provided by Subchapters A
  and C of this chapter]. On request made by a property owner in the
  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. [The appraisal
  review board shall post a copy of the hearing procedures in a
  prominent place in the room in which the hearing is held.]
         (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 21.  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 22.  Section 41A.10, Tax Code, is amended by
  amending Subsection (a) and adding Subsection (c) to read as
  follows:
         (a)  The pendency of an appeal under this chapter does not
  affect the delinquency date for the taxes on the property subject to
  the appeal. Except for a property owner who has elected to defer
  the collection of taxes under Section 33.06 or 33.065 on the
  property subject to the appeal and for which the deferral is still
  in effect, a [A] property owner who appeals an appraisal review
  board order under this chapter shall pay taxes on the property
  subject to the appeal in an amount equal to the amount of taxes due
  on the portion of the taxable value of the property that is not in
  dispute. If the final determination of an appeal under this chapter
  decreases the property owner's tax liability to less than the
  amount of taxes paid, the taxing unit shall refund to the property
  owner the difference between the amount of taxes paid and the amount
  of taxes for which the property owner is liable.
         (c)  For the purposes of Subsection (b) of this section,
  taxes are not considered delinquent on property subject to an
  appeal if the property owner has elected to defer the collection of
  taxes on the property under Section 33.06 or 33.065 and the deferral
  is still in effect.
         SECTION 23.  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 24.  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 [The] court may not enter an
  order, including a protective order [to modify the provisions of
  this subsection] under Rule 192.6 of the Texas Rules of Civil
  Procedure, that conflicts with Subsection (d).
         SECTION 25.  Section 6.03, Tax Code, as amended by this Act,
  applies only to the selection of members of the board of directors
  of an appraisal district who are appointed for a term that begins on
  or after January 1, 2022.
         SECTION 26.  Section 11.253, Tax Code, as amended by this
  Act, applies only to a tax year beginning on or after January 1,
  2022.
         SECTION 27.  Sections 21.021 and 21.031, Tax Code, as
  amended by this Act, apply only to the allocation of the value and
  the determination of the situs of vessels and other watercraft for
  ad valorem tax purposes beginning on or after January 1, 2022.
         SECTION 28.  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 29.  Section 41.445, Tax Code, as added by this Act,
  and 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 by a property owner on or after January
  1, 2022. A protest under Chapter 41, Tax Code, for which a notice of
  protest is filed by a property owner before January 1, 2022, 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 30.  Section 41A.10, Tax Code, as amended by this
  Act, applies only to a request for binding arbitration under
  Chapter 41A, Tax Code, that is filed on or after the effective date
  of this Act. A request for binding arbitration under Chapter 41A,
  Tax Code, that is filed before the effective date of this Act is
  governed by the law in effect on the date the request is filed, and
  the former law is continued in effect for that purpose.
         SECTION 31.  Sections 42.015 and 42.23, Tax Code, as amended
  by this Act, apply to an appeal under Chapter 42, Tax Code, that is
  pending on the date the amendments to those sections take effect
  under this Act or that is filed on or after that date.
         SECTION 32.  The comptroller of public accounts is required
  to implement a provision of this Act only if the legislature
  appropriates money specifically for that purpose. If the
  legislature does not appropriate money specifically for that
  purpose, the comptroller may, but is not required to, implement a
  provision of this Act using other appropriations available for that
  purpose.
         SECTION 33.  (a) Except as provided by Subsection (b) of this
  section, this Act takes effect January 1, 2022.
         (b)  Sections 5.103, 5.104, 6.052, 41.01, 41.461, 41.66,
  42.015, and 42.23, 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.
 
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