Bill Text: TX SB2357 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to ad valorem taxation.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-23 - Referred to Local Government [SB2357 Detail]

Download: Texas-2023-SB2357-Introduced.html

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By: Parker S.B. No. 2357

A BILL TO BE ENTITLED
AN ACT
relating to ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 81.024, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) If the supreme court adopts the Texas Disciplinary Rules
of Professional Conduct under Subsection (b), the rules must
provide that it is a violation of the Texas Disciplinary Rules of
Professional Conduct for an attorney to make a request described by
Section 42.23(i), Tax Code. An attorney who violates that rule is
subject to discipline under Subchapter E.
SECTION 2. Section 1.111, Tax Code, is amended by amending
Subsection (d) and adding Subsection (d-1) to read as follows:
(d) Except as provided by Subsection (d-1), a [A] property
owner may not designate more than one agent to represent the
property owner in connection with an item of property. The
designation of an agent in connection with an item of property
revokes any previous designation of an agent in connection with
that item of property.
(d-1) A property owner may designate a different agent to
represent the property owner in connection with an item of property
in a different tax year without revoking any previous designation
of an agent in connection with the same item of property in a
previous tax year.
SECTION 3. Section 5.07, Tax Code, is amended by adding
Subsection (k) to read as follows:
(k) The comptroller shall prescribe the form that an
appraisal review board shall use to make a determination required
to be made by written order under this title. The form must require
an appraisal review board to include for the property subject to the
order the property owner's name, the property's identification
number, the property's legal description and physical address, and
any other information the comptroller determines necessary. The
comptroller shall post the form on the comptroller's Internet
website.
SECTION 4. Section 11.161, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) For purposes of Subsection (a), farm or ranch products
may be produced by hydroponic farming.
SECTION 5. Section 11.24, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) For purposes of a structure or archeological site and
land subject to an exemption under this section, the property owner
may protest the appraised value of the structure or archeological
site and the appraised value of the land separately. A property
owner may protest the allocation of appraised value between the
structure or archeological site and the land.
SECTION 6. Section 11.43(i), Tax Code, is amended to read as
follows:
(i) If the chief appraiser discovers that an exemption that
is not required to be claimed annually has been erroneously allowed
in any one of the three [five] preceding years for real property, or
in either of the two preceding years for personal property, the
chief appraiser shall add the property or appraised value that was
erroneously exempted for each year to the appraisal roll as
provided by Section 25.21 of this code for other property that
escapes taxation. If an exemption that was erroneously allowed did
not apply to all taxing units in which the property was located, the
chief appraiser shall note on the appraisal records, for each prior
year, the taxing units that gave the exemption and are entitled to
impose taxes on the property or value that escaped taxation.
SECTION 7. Subchapter C, Chapter 11, Tax Code, is amended by
adding Section 11.4392 to read as follows:
Sec. 11.4392. LATE APPLICATION FOR PROPERTY EXEMPTED FROM
TAXATION BY AGREEMENT. The chief appraiser shall accept and
approve or deny an application for an exemption a person is entitled
to receive under Section 11.28 or an agreement entered into under
Chapter 312 after the deadline for filing it has passed if it is
filed on or before June 15.
SECTION 8. Section 22.28(a), Tax Code, is amended to read as
follows:
(a) Except as otherwise provided by Section 22.30, the chief
appraiser shall impose a penalty on a person who fails to timely
file a rendition statement or property report required by this
chapter in an amount equal to five [10] percent of the total amount
of taxes imposed on the property for that year by taxing units
participating in the appraisal district. The chief appraiser shall
deliver by first class mail a notice of the imposition of the
penalty to the person. The notice may be delivered with a notice of
appraised value provided under Section 25.19, if practicable.
SECTION 9. Section 22.30, Tax Code, is amended by adding
Subsection (a-2) to read as follows:
(a-2) The chief appraiser shall waive the penalty imposed by
Section 22.28 if the property owner has not previously filed a
delinquent rendition statement or property report for that parcel
of property.
SECTION 10. Section 23.51(2), Tax Code, is amended to read
as follows:
(2) "Agricultural use" includes but is not limited to
the following activities: cultivating the soil, producing crops for
human food, animal feed, or planting seed or for the production of
fibers; floriculture, viticulture, and horticulture; raising or
keeping livestock; raising or keeping exotic animals for the
production of human food or of fiber, leather, pelts, or other
tangible products having a commercial value; planting cover crops
or leaving land idle for the purpose of participating in a
governmental program, provided the land is not used for residential
purposes or a purpose inconsistent with agricultural use; and
planting cover crops or leaving land idle in conjunction with
normal crop or livestock rotation procedure. The term also includes
the use of land to produce or harvest logs and posts for the use in
constructing or repairing fences, pens, barns, or other
agricultural improvements on adjacent qualified open-space land
having the same owner and devoted to a different agricultural use.
The term also includes the use of land for wildlife management. The
term also includes the use of land to raise or keep bees for
pollination or for the production of human food or other tangible
products having a commercial value, provided that the land used is
not less than 5 or more than 20 acres. The term also includes the use
of land for hydroponic farming.
SECTION 11. Section 23.52, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) The chief appraiser may appraise a portion of a parcel
of land according to this chapter if the portion qualifies for
appraisal under this subchapter but the remainder of the parcel
does not.
SECTION 12. Subchapter D, Chapter 23, Tax Code, is amended
by adding Section 23.527 to read as follows:
Sec. 23.527. ELIGIBILITY OF LAND PREVIOUSLY DEVOTED TO
SOLAR OR WIND POWER FACILITY. (a) In this section:
(1) "Solar power facility" has the meaning
assigned by Section 302.0001, Utilities Code.
(2) "Wind power facility" has the meaning
assigned by Section 301.0001, Utilities Code.
(b) This section applies only to land:
(1) that was previously appraised as qualified
open-space land as provided by this subchapter;
(2) that became ineligible for appraisal as provided
by this subchapter due to a change of use caused by the development
of a solar power facility or a wind power facility on the land;
(3) on which the solar power facility or wind power
facility described by Subdivision (2) is no longer in operation;
and
(4) that is currently devoted principally to
agricultural use to the degree of intensity generally accepted in
the area.
(c) Notwithstanding any other provision of this subchapter,
land described by Subsection (b) is qualified open-space land.
SECTION 13. Section 25.25, Tax Code, is amended by adding
Subsection (q) to read as follows:
(q) An appraisal review board shall issue a written order
under this section using the form prescribed by the comptroller
under Section 5.07(k).
SECTION 14. Chapter 25, Tax Code, is amended by adding
Section 25.255 to read as follows:
Sec. 25.255. EXACT CORRECTION OF ROLL. A chief appraiser
that corrects the appraisal roll to include the appraised value of
property, including as determined by an appraisal review board
under Chapter 25.25 or Chapter 41, or a district court under Chapter
42, must correct the roll to show the exact dollar amount of the new
appraised value.
SECTION 15. Section 26.09, Tax Code, is amended by amending
Subsection (d) and adding Subsection (d-3) to read as follows:
(d) If a property is subject to taxation for a prior year in
which it escaped taxation, the assessor shall calculate the tax for
each year separately. In calculating the tax, the assessor shall
use the assessment ratio and tax rate in effect in the taxing unit
for the year for which back taxes are being imposed. Except as
provided by Subsections [Subscction] (d-1) and (d-3), the amount of
back taxes due incurs interest calculated at the rate provided by
Section 33.01(c) from the date the tax would have become delinquent
had the tax been imposed in the proper tax year.
(d-3) Back taxes assessed under Subsection (d) on property a
chief appraiser discovers was omitted from an appraisal roll under
Section 25.21 do not incur interest as required by Subsection (d).
SECTION 16. Section 31.01(c), Tax Code, is amended to read
as follows:
(c) The tax bill or a separate statement accompanying the
tax bill shall:
(1) identify the property subject to the tax;
(2) state the appraised value, assessed value, and
taxable value of the property, which must be exact and not rounded
numbers;
(3) if the property is land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, state the market value and the
taxable value for purposes of deferred or additional taxation as
provided by Section 23.46, 23.55, 23.76, or 23.9807, as applicable;
(4) state the assessment ratio for the unit;
(5) state the type and amount of any partial exemption
applicable to the property, indicating whether it applies to
appraised or assessed value;
(6) state the total tax rate for the unit;
(7) state the amount of tax due, the due date, and the
delinquency date;
(8) explain the payment option and discounts provided
by Sections 31.03 and 31.05, if available to the unit's taxpayers,
and state the date on which each of the discount periods provided by
Section 31.05 concludes, if the discounts are available;
(9) state the rates of penalty and interest imposed
for delinquent payment of the tax;
(10) include the name and telephone number of the
assessor for the unit and, if different, of the collector for the
unit;
(11) for real property, state for the current tax year
and each of the preceding five tax years:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the unit;
(C) the amount of taxes imposed on the property
by the unit; and
(D) the difference, expressed as a percent
increase or decrease, as applicable, in the amount of taxes imposed
on the property by the unit compared to the amount imposed for the
preceding tax year; [and]
(12) for real property, state the differences,
expressed as a percent increase or decrease, as applicable, in the
following for the current tax year as compared to the fifth tax year
before that tax year:
(A) the appraised value and taxable value of the
property;
(B) the total tax rate for the unit; and
(C) the amount of taxes imposed on the property
by the unit; and
(13) include the appraisal district account number for
the property.
SECTION 17. Section 41.07(a), Tax Code, is amended to read
as follows:
(a) The appraisal review board shall determine each
challenge and make its decision by written order using the form
prescribed by the comptroller under Section 5.07(k).
SECTION 18. Section 41.45(b), Tax Code, is amended to read
as follows:
(b) A property owner initiating a protest is entitled to
appear in-person to offer evidence or argument, and may not be
denied a hearing at which the property owner and chief appraiser are
both present in-person. A property owner may offer evidence or
argument by affidavit without personally appearing and may appear
by telephone conference call or videoconference to offer argument.
A property owner who appears by telephone conference call or
videoconference must offer any evidence by affidavit. A property
owner must submit an affidavit described by this subsection to the
board hearing the protest before the board begins the hearing on the
protest. On receipt of an affidavit, the board shall notify the
chief appraiser. The chief appraiser may inspect the affidavit and
is entitled to a copy on request.
SECTION 19. Section 41.47(a), Tax Code, is amended to read
as follows:
(a) The appraisal review board hearing a protest shall
determine the protest and make its decision by written order using
the form prescribed by the comptroller under Section 5.07(k).
SECTION 21 Section 41.67, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) A property owner may submit evidence electronically at
any point before or during a hearing.
SECTION 21. Section 41A.09, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) The arbitrator may not determine the appraised value of
the property that is the subject of an arbitration to be an amount
greater than the appraised value of the property as shown in the
appraisal records submitted to the appraisal review board by the
chief appraiser under Section 25.22 or 25.23, except as requested
and agreed to by the property owner.
SECTION 22. Section 42.01, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) Notwithstanding Subsection (a), a person who owned
property at any time during a tax year but no longer owns the
property is entitled to file an appeal under this chapter as if the
person were the current owner of the property, regardless of
whether the person is the person subject to an order described by
that subsection.
SECTION 23. Section 42.21, Tax Code, is amended by amending
Subsections (a), (b), and (c) and adding Subsections (a-1) and
(a-2) to read as follows:
(a) A party who appeals as provided by this chapter must
file a petition for review with the district court not later than
the later of:
(1) the 60th day [within 60 days] after the date the
party receives [rcccivcd] notice that a final order has been
entered from which the [an] appeal may be had; or
(2) September 1 of the year in which the final order is
entered [at any time after the hearing but before the 60 day
deadline].
(a-1) Subject to Subsection (a), a party may file a petition
for review under this section at any time after:
(1) the protest hearing, regardless of whether the
party has received notice that a final order has been entered;
(2) notifying the appraisal review board that the
chief appraiser and the party have agreed to a disposition of the
protest and requesting the board to issue an agreed order under
Section 41.47(g) or (g-1); or
(3) submitting an affidavit to the board hearing the
protest under Section 41.45(b).
(a-2) Failure to timely file a petition bars any appeal
under this chapter.
(b) [A petition for review brought under Section 42.02 must
be brought against the owner of the property involved in the
appeal.] A petition for review brought under Section 42.031 must be
brought against the appraisal district and against the owner of the
property involved in the appeal. A petition for review brought
under Section 42.01(a)(2) or 42.03 must be brought against the
comptroller. Any other petition for review under this chapter must
be brought against the appraisal district. A petition for review
may not be brought against the appraisal review board. An appraisal
district may hire an attorney that represents the district to
represent the appraisal review board established for the district
to file an answer and obtain a dismissal of a suit filed against the
appraisal review board in violation of this subsection.
(c) If an appeal under this chapter is pending when the
appraisal review board issues an order in a subsequent year under a
protest by the same property owner and that protest relates to the
same property that is involved in the pending appeal, the property
owner may appeal the subsequent appraisal review board order by
amending the original petition for the pending appeal to include
the grounds for appealing the subsequent order. The amended
petition must be filed with the court not later than the 90th day
after the date the property owner receives notice that a final order
has been entered from which an appeal may be had [in the period
provided by Subsection (a) for filing a petition for review of the
subsequent order]. A property owner may appeal the subsequent
appraisal review board order under this subsection or may appeal
the order independently of the pending appeal as otherwise provided
by this section, but may not do both. A property owner may change
the election of remedies provided by this subsection at any time
before the end of the period provided by Subsection (a) for filing a
petition for review.
SECTION 24. Section 42.23, Tax Code, is amended by adding
Subsections (a-1), (a-2), (i), (j), (k), (l), and (m) to read as
follows:
(a-1) A chief appraiser, appraisal district, or appraisal
review board may not bring a counterclaim in an appeal brought under
this chapter.
(a-2) An appraisal district may not seek affirmative relief
in an appeal brought under this chapter.
(i) An entity is not required to be registered to do
business in this state in order to file an appeal under this chapter
or to be considered a proper party to bring a petition. A formal or
informal request for information regarding an entity's
registration status:
(1) is outside the scope of permissible discovery in
an appeal under this chapter;
(2) may not be made a prerequisite to a settlement
discussion related to that appeal; and
(3) may be grounds for sanctions by the court on the
motion of a party.
(j) A party to an appeal under this chapter may file an
objection to third-party discovery. The court shall grant
third-party discovery subject to the objection only if the
discovery:
(1) is necessary under generally accepted appraisal
methods and techniques to determine the value of the property that
is the subject of the appeal; and
(2) would be admissible at trial.
(k) A party to an appeal under Section 42.26 may file an
objection to a discovery request for a closing statement, a rent
roll, or an operating statement. The court shall grant the
discovery request subject to the objection only if the discovery:
(1) is necessary under generally accepted appraisal
methods and techniques to determine the value of the property that
is the subject of the appeal; and
(2) would be admissible at trial.
(l) The district court may not order discovery unless
discovery is requested by a party to the appeal.
(m) The district court may not:
(1) impose deadlines for discovery related to an
expert witness, including deadlines for designating an expert
witness, that fall before the deadlines specified by the Texas
Rules of Civil Procedure; or
(2) otherwise accelerate discovery related to an
expert witness, unless agreed to by the parties.
SECTION 25. Subchapter B, Chapter 42, Tax Code, is amended
by adding Sections 42.232 and 42.233 to read as follows:
Sec. 42.232. TRIAL DATE. (a) A district court may not set a
trial date on an appeal that is less than 12 months after the date
the appeal is filed, unless the parties agree to an earlier trial
date.
(b) On request of a party to an appeal, the district court
shall:
(1) grant a continuance if the party requesting the
continuance has not previously been granted a continuance;
(2) set a new trial date that is not less than six
months after the date for which the original trial was set; and
(3) extend all litigation deadlines proportionally.
Sec. 42.233. TRANSFER OF APPEAL TO STATE OFFICE OF
ADMINISTRATIVE HEARINGS. On request of a property owner who is a
party to an appeal under this chapter and who was eligible to file
the appeal under Subchapter Z, Chapter 2003, Government Code, the
district court shall transfer the appeal to the State Office of
Administrative Hearings to determine the appeal under that
subchapter. The property owner must make the request not later than
the 30th day before the date on which the trial is originally set to
begin.
SECTION 26. Section 42.26, Tax Code, is amended by adding
Subsections (e) and (f) to read as follows:
(e) A district court may not determine the appraised value
of the property that is subject to an appeal under this section to
be an amount greater than the appraised value of the property as
shown in the appraisal records submitted to the board by the chief
appraiser under Section 25.22 or 25.23.
(f) If a claim that a property is appraised unequally is the
sole cause of action in an appeal, the appraisal district may not
request through discovery financial information related to the
property, including a rent roll or appraisal.
SECTION 27. Section 42.41(b), Tax Code, is amended to read
as follows:
(b) The assessor for each affected taxing unit shall correct
the tax roll and other appropriate records for which the assessor is
responsible. The assessor must correct the tax roll to indicate the
exact dollar amount of the corrected value.
SECTION 28. Sections 42.43(b-1), (f), and (g), Tax Code,
are amended to read as follows:
(b-1) A taxing unit may not send a refund made under this
section before the earlier of:
(1) the 60th [21st] day after the final determination
of the appeal; or
(2) the date the property owner files the form
prescribed by Subsection (i) with the taxing unit.
(f) The final judgment in an appeal under this chapter shall
[may] designate to whom and where a refund is to be sent if the
property owner or the property owner's agent designated under
Section 1.111 files the form required under Subsection (i).
(g) If a form prescribed by the comptroller under Subsection
(i) is filed with a taxing unit before the 60th [21st] day after the
final determination of an appeal that requires a refund be made, the
taxing unit shall send the refund to the person and address
designated on the form.
SECTION 29. Section 42.02, Tax Code, is repealed.
SECTION 30. As soon as practicable after the effective date
of this Act, the Texas Supreme Court shall adopt rules as required
by Section 81.024(c), Government Code, as added by this Act.
SECTION 31. As soon as practicable but not later than the
effective date of this Act, the comptroller of public accounts
shall prescribe and post on the comptroller's Internet website the
form required by Section 5.07(k), Tax Code, as added by this Act.
SECTION 32. Sections 5.07, 25.25, 41.07, and 41.47, Tax
Code, as amended by this Act, apply only to an appraisal review
board order issued on or after the effective date of this Act. An
appraisal review board order issued before the effective date of
this Act is governed by the law in effect on the date the order was
issued, and the former law is continued in effect for that purpose.
SECTION 33. Sections 11.161 and 11.24, Tax Code, as amended
by this Act, apply only to ad valorem taxes imposed for an ad
valorem tax year that begins on or after the effective date of this
Act.
SECTION 34. Section 11.43(i), Tax Code, as amended by this
Act, applies only to an erroneously allowed exemption discovered on
or after the effective date of this Act. An erroneously allowed
exemption discovered before the effective date of this Act is
governed by the law in effect on the date the exemption was
discovered, and the former law is continued in effect for that
purpose.
SECTION 35. Section 11.4392, Tax Code, as added by this Act,
applies only to an application for an ad valorem tax exemption
submitted to a chief appraiser on or after the effective date of
this Act.
SECTION 36. Sections 22.28(a) and 22.30, Tax Code, as
amended by this Act, apply only to a rendition statement or property
report required to be filed on or after the effective date of this
Act. A rendition statement or property report required to be filed
before the effective date of this Act is governed by the law in
effect on the date the statement or report was required to be filed,
and the former law is continued in effect for that purpose.
SECTION 37. Section 23.52, Tax Code, as amended by this Act
and Section 23.527, Tax Code, as added by this Act, apply only to
the appraisal of land for ad valorem tax purposes for a tax year
that begins on or after the effective date of this Act.
SECTION 38. Section 26.09, Tax Code, as amended by this Act,
applies only to taxes assessed on property as provided by
Subsection (d) of that section on or after the effective date of
this Act. Taxes assessed on property before the effective date of
this Act are governed by the law in effect on the date the taxes were
assessed, and the former law is continued in effect for that
purpose.
SECTION 39. Section 41A.09(f), Tax Code, as added by this
Act, applies only to a determination of appraised value made by an
arbitrator under Chapter 41A, Tax Code, on or after the effective
date of this Act.
SECTION 40. Chapter 42, Tax Code, as amended by this Act,
applies only to an appeal under that chapter that is filed on or
after the effective date of this Act. An appeal filed before the
effective date of this Act is governed by the law in effect on the
date the appeal was filed, and the former law is continued in effect
for that purpose.
SECTION 41. This Act takes effect January 1, 2024.