Bill Text: TX SB63 | 2021-2022 | 87th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the property tax appraisal system, including an entitlement to a tax exemption based on the appraised value of certain renewable energy devices.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Passed) 2021-06-14 - Effective on 9/1/21 [SB63 Detail]

Download: Texas-2021-SB63-Comm_Sub.html
 
 
  By: Nelson, Buckingham  S.B. No. 63
         (In the Senate - Filed November 9, 2020; March 3, 2021, read
  first time and referred to Committee on Finance; April 14, 2021,
  reported adversely, with favorable Committee Substitute by the
  following vote:  Yeas 15, Nays 0; April 14, 2021, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 63 By:  Nelson
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the system for appraising property for ad valorem tax
  purposes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 5.03, Tax Code, is amended by adding
  Subsection (d) to read as follows:
         (d)  Notwithstanding any other provision of this title, the
  comptroller may, after providing notice, require a document,
  payment, notice, report, or other item required to be submitted to
  the comptroller under this title to be submitted electronically and
  may send a document, payment, notice, report or other item the
  comptroller is required to send under this title electronically.
  The comptroller may adopt rules to administer this subsection,
  including rules specifying the format of an item electronically
  submitted to or sent by the comptroller.
         SECTION 2.  Section 5.041, Tax Code, is amended by amending
  Subsections (b) and (e-1) and adding Subsection (i) to read as
  follows:
         (b)  A member of the appraisal review board established for
  an appraisal district must complete the course established under
  Subsection (a). The course must provide at least eight hours of
  classroom or distance training and education. A member of the
  appraisal review board may not participate in a hearing conducted
  by the board unless the person has completed the course established
  under Subsection (a) and received a certificate of course
  completion.
         (e-1)  In addition to the course established under
  Subsection (a), the comptroller shall approve curricula and provide
  materials for use in a continuing education course for members of an
  appraisal review board. The course must provide at least four hours
  of classroom or distance training and education. The curricula and
  materials must include information regarding:
               (1)  the cost, income, and market data comparison
  methods of appraising property;
               (2)  the appraisal of business personal property;
               (3)  the determination of capitalization rates for
  property appraisal purposes;
               (4)  the duties of an appraisal review board;
               (5)  the requirements regarding the independence of an
  appraisal review board from the board of directors and the chief
  appraiser and other employees of the appraisal district;
               (6)  the prohibitions against ex parte communications
  applicable to appraisal review board members;
               (7)  the Uniform Standards of Professional Appraisal
  Practice;
               (8)  the duty of the appraisal district to substantiate
  the district's determination of the value of property;
               (9)  the requirements regarding the equal and uniform
  appraisal of property;
               (10)  the right of a property owner to protest the
  appraisal of the property as provided by Chapter 41; and
               (11)  a detailed explanation of each of the actions
  described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413,
  41.42, and 41.43 so that members are fully aware of each of the
  grounds on which a property appraisal can be appealed.
         (i)  The comptroller may adopt rules to implement this
  section, including rules establishing criteria for course
  availability and for demonstrating course completion.
         SECTION 3.  Section 6.035(a-1), Tax Code, is amended to read
  as follows:
         (a-1)  An individual is ineligible to serve on the board of
  directors of an appraisal district [board of directors] if the
  individual:
               (1)  has served as a member of the board of directors
  for all or part of three terms, unless:
                     (A)  the individual was the county
  assessor-collector at the time the individual served as a board
  member; or
                     (B)  the appraisal district is established in a
  county with a population of less than 120,000;
               (2)  has engaged in the business of appraising property
  for compensation for use in proceedings under this title at any time
  during the preceding three years;
               (3)  has engaged in the business [or] of representing
  property owners for compensation in proceedings under this title in
  the appraisal district at any time during the preceding three
  years; or
               (4)  has been an employee of the appraisal district at
  any time during the preceding three years.
         SECTION 4.  Section 6.054, Tax Code, is amended to read as
  follows:
         Sec. 6.054.  RESTRICTION ON EMPLOYMENT BY APPRAISAL
  DISTRICT.  An individual may not be employed by an appraisal
  district if the individual [is]:
               (1)  is an officer of a taxing unit that participates
  in the appraisal district; [or]
               (2)  is an employee of a taxing unit that participates
  in the appraisal district; or
               (3)  has served as a member of the appraisal review
  board for the appraisal district at any time during the preceding
  two years.
         SECTION 5.  Section 6.41(f), Tax Code, is amended to read as
  follows:
         (f)  A member of the appraisal review board may be removed
  from the board by a majority vote of the appraisal district board of
  directors, or by the local administrative district judge or the
  judge's designee, as applicable, that appointed the member. Not
  later than the 90th day after the date the board of directors, local
  administrative district judge, or judge's designee that appointed a
  member of the appraisal review board learns of a potential ground
  for removal of the member, the board of directors, local
  administrative district judge, or judge's designee, as applicable,
  shall remove the member or find by official action that the member's
  removal is not warranted. Grounds for removal are:
               (1)  a violation of Section 6.412, 6.413, 41.66(f), or
  41.69;
               (2)  good cause relating to the attendance of members
  at called meetings of the board as established by written policy
  adopted by a majority of the appraisal district board of directors;
  or
               (3)  evidence of repeated bias or misconduct.
         SECTION 6.  Sections 11.45(a), (d), and (e), Tax Code, are
  amended to read as follows:
         (a)  The chief appraiser shall determine separately each
  applicant's right to an exemption. After considering the
  application and all relevant information, the chief appraiser
  shall, as soon as practicable but not later than the 90th day after
  the date the application is filed with the chief appraiser, as the
  law and facts warrant:
               (1)  approve the application and allow the exemption;
               (2)  modify the exemption applied for and allow the
  exemption as modified;
               (3)  disapprove the application and request additional
  information from the applicant in support of the claim; or
               (4)  deny the application.
         (d)  If the chief appraiser modifies or denies an application
  [exemption], the chief appraiser [he] shall deliver a written
  notice of the modification or denial to the applicant within five
  days after the date the chief appraiser [he] makes the
  determination. The notice must state and fully explain each reason
  the chief appraiser modified or denied the application. The notice
  must [He shall] include [with the notice] a brief explanation of the
  procedures for protesting the modification or denial [his action].
         (e)  If the chief appraiser approves, modifies, or denies an
  application for an exemption under Section 11.35, the chief
  appraiser shall deliver a written notice of the approval,
  modification, or denial to the applicant not later than the fifth
  day after the date the chief appraiser makes the determination. The
  notice must include the damage assessment rating assigned by the
  chief appraiser to each item of qualified property that is the
  subject of the application and a brief explanation of the
  procedures for protesting the chief appraiser's determination. If
  the chief appraiser modifies or denies the application, the notice
  must state and fully explain each reason the chief appraiser
  modified or denied the application. The notice required under this
  subsection is in lieu of any notice that would otherwise be required
  under Subsection (d).
         SECTION 7.  Sections 23.44(a) and (d), Tax Code, are amended
  to read as follows:
         (a)  The chief appraiser shall determine individually each
  claimant's right to the agricultural designation. After
  considering the application and all relevant information, the chief
  appraiser shall, as soon as practicable but not later than the 90th
  day after the date the application is filed with the chief
  appraiser, as the law and facts warrant:
               (1)  approve the application and designate the land for
  agricultural use;
               (2)  disapprove the application and request additional
  information from the claimant in support of the claim; or
               (3)  deny the application.
         (d)  If the chief appraiser denies an application, the chief
  appraiser [he] shall deliver a written notice of the denial to the
  claimant within five days after the date of denial. The notice must
  state and fully explain each reason the chief appraiser denied the
  application. The notice must include a brief explanation of the
  procedures for protesting the denial.
         SECTION 8.  Sections 23.57(a) and (d), Tax Code, are amended
  to read as follows:
         (a)  The chief appraiser shall determine separately each
  applicant's right to have the applicant's [his] land appraised
  under this subchapter. After considering the application and all
  relevant information, the chief appraiser shall, as soon as
  practicable but not later than the 90th day after the date the
  application is filed with the chief appraiser, as the law and facts
  warrant:
               (1)  approve the application and allow appraisal under
  this subchapter;
               (2)  disapprove the application and request additional
  information from the applicant in support of the claim; or
               (3)  deny the application.
         (d)  If the chief appraiser denies an application, the chief
  appraiser [he] shall deliver a written notice of the denial to the
  applicant within five days after the date the chief appraiser [he]
  makes the determination. The notice must state and fully explain
  each reason the chief appraiser denied the application. The notice
  must [He shall] include [with the notice] a brief explanation of the
  procedures for protesting the denial [his action and a full
  explanation of the reasons for denial of the application].
         SECTION 9.  Sections 23.79(a) and (d), Tax Code, are amended
  to read as follows:
         (a)  The chief appraiser shall determine separately each
  applicant's right to have the applicant's [his] land appraised
  under this subchapter. After considering the application and all
  relevant information, the chief appraiser shall, as soon as
  practicable but not later than the 90th day after the date the
  application is filed with the chief appraiser, as the law and facts
  warrant:
               (1)  approve the application and allow appraisal under
  this subchapter;
               (2)  disapprove the application and request additional
  information from the applicant in support of the claim; or
               (3)  deny the application.
         (d)  If the chief appraiser denies an application, the chief
  appraiser [he] shall deliver a written notice of the denial to the
  applicant within five days after the date the chief appraiser [he]
  makes the determination. The notice must state and fully explain
  each reason the chief appraiser denied the application. The notice
  must [He shall] include [with the notice] a brief explanation of the
  procedures for protesting the denial [his action].
         SECTION 10.  Sections 23.85(a) and (d), Tax Code, are
  amended to read as follows:
         (a)  The chief appraiser shall determine individually each
  claimant's right to appraisal under this subchapter. After
  considering the application and all relevant information, the chief
  appraiser shall, as soon as practicable but not later than the 90th
  day after the date the application is filed with the chief
  appraiser, as the law and facts warrant:
               (1)  approve the application and allow appraisal under
  this subchapter;
               (2)  disapprove the application and request additional
  information from the claimant in support of the claim; or
               (3)  deny the application.
         (d)  If the chief appraiser denies an application, the chief
  appraiser [he] shall deliver a written notice of the denial to the
  claimant within five days after the date of denial. The notice must
  state and fully explain each reason the chief appraiser denied the
  application. The notice must include a brief explanation of the
  procedures for protesting the denial.
         SECTION 11.  Sections 23.95(a) and (d), Tax Code, are
  amended to read as follows:
         (a)  The chief appraiser shall determine individually each
  claimant's right to appraisal under this subchapter. After
  considering the application and all relevant information, the chief
  appraiser shall, as soon as practicable but not later than the 90th
  day after the date the application is filed with the chief
  appraiser, as the law and facts warrant:
               (1)  approve the application and allow appraisal under
  this subchapter;
               (2)  disapprove the application and request additional
  information from the claimant in support of the claim; or
               (3)  deny the application.
         (d)  If the chief appraiser denies an application, the chief
  appraiser [he] shall deliver a written notice of the denial to the
  claimant within five days after the date of denial. The notice must
  state and fully explain each reason the chief appraiser denied the
  application. The notice must include a brief explanation of the
  procedures for protesting the denial.
         SECTION 12.  Sections 23.9805(a) and (d), Tax Code, are
  amended to read as follows:
         (a)  The chief appraiser shall determine separately each
  applicant's right to have the applicant's land appraised under this
  subchapter. After considering the application and all relevant
  information, the chief appraiser shall, as soon as practicable but
  not later than the 90th day after the date the application is filed
  with the chief appraiser, based on the law and facts:
               (1)  approve the application and allow appraisal under
  this subchapter;
               (2)  disapprove the application and request additional
  information from the applicant in support of the claim; or
               (3)  deny the application.
         (d)  If the chief appraiser denies an application, the chief
  appraiser shall deliver a written notice of the denial to the
  applicant not later than the fifth day after the date the chief
  appraiser makes the determination. The notice must state and fully
  explain each reason the chief appraiser denied the application.  
  The chief appraiser shall include with the notice a brief
  explanation of the procedures for protesting the denial.
         SECTION 13.  Section 25.193(b), Tax Code, is amended to read
  as follows:
         (b)  If a property owner has elected to receive notices by
  e-mail as provided by Section 1.086, [for property described by
  that section,] the notice required by this section must be sent in
  that manner regardless of whether the information was also included
  in a notice under Section 25.19 and must be sent separately from any
  other notice sent to the property owner by the chief appraiser.
         SECTION 14.  Section 25.25(e), Tax Code, is amended to read
  as follows:
         (e)  If the chief appraiser and the property owner do not
  agree to the correction before the 15th day after the date the
  motion is filed, a party bringing a motion under Subsection (c) or
  (d) is entitled on request to a hearing on and a determination of
  the motion by the appraisal review board.  A party bringing a
  motion under this section must describe the error or errors that the
  motion is seeking to correct. The appraisal review board shall
  schedule the hearing to be held as soon as practicable but not later
  than the 90th day after the date the request for the hearing is
  made.  Not later than 15 days before the date of the hearing, the
  board shall deliver written notice of the date, time, and place of
  the hearing to the chief appraiser, the property owner, and the
  presiding officer of the governing body of each taxing unit in which
  the property is located.  The chief appraiser, the property owner,
  and each taxing unit are entitled to present evidence and argument
  at the hearing and to receive written notice of the board's
  determination of the motion.  The property owner is entitled to
  elect to present the owner's evidence and argument before, after,
  or between the cases presented by the chief appraiser and each
  taxing unit.  A property owner who files the motion must comply
  with the payment requirements of Section 25.26 or forfeit the right
  to a final determination of the motion.
         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.  If the form includes boxes a property owner
  is required to select from to indicate the reason the owner is
  filing a protest, the form must permit a property owner who believes
  that the owner's property was appraised at a value that exceeds its
  appraised value, was appraised unequally, or both, to select a
  single box to indicate that the owner is filing a protest for either
  or both reasons. 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
  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.  Section 41.45(a), Tax Code, is amended to read
  as follows:
         (a)  On the filing of a notice as required by Section 41.44,
  the appraisal review board shall schedule a hearing on the protest.
  The appraisal review board shall schedule the hearing to be held as
  soon as practicable but not later than the 90th day after the date
  the board approves the appraisal records as provided by Section
  41.12. If more than one protest is filed relating to the same
  property, the appraisal review board shall schedule a single
  hearing on all timely filed protests relating to the property. A
  hearing for a property that is owned in undivided or fractional
  interests, including separate interests in a mineral in place,
  shall be scheduled to provide for participation by all owners who
  have timely filed a protest.
         SECTION 17.  Section 41.46, Tax Code, is amended by adding
  Subsection (f) to read as follows:
         (f)  In addition to the notice required by Subsection (a), on
  written request of the property owner initiating the protest, the
  appraisal review board shall deliver to the property owner an
  electronic reminder stating the date, time, and place of the
  protest hearing that is the subject of the notice. The property
  owner may request that delivery of the electronic reminder be made
  by e-mail or text message. The property owner must provide in the
  request the e-mail address or telephone number, as applicable, to
  which the appraisal review board must send the reminder. The
  appraisal review board must deliver the electronic reminder to the
  property owner not earlier than the seventh day after the date the
  appraisal review board delivers the notice required by Subsection
  (a) and not later than the day before the date of the hearing.
         SECTION 18.  Section 41.67, Tax Code, is amended by adding
  Subsection (e) to read as follows:
         (e)  The chief appraiser may not offer evidence or argument
  at a hearing on a protest in support of a reason for modifying or
  denying an application other than a reason stated in a notice
  delivered to the applicant under Section 11.45(d) or (e), 23.44(d),
  23.57(d), 23.79(d), 23.85(d), 23.95(d), or 23.9805(d). 
         SECTION 19.  Section 6.035(a-1), Tax Code, as amended by
  this Act, does not affect the eligibility of a person serving as an
  appointed member of the board of directors of an appraisal district
  immediately before the effective date of this Act to continue to
  serve on the board for the remainder of the term to which the member
  was appointed.
         SECTION 20.  Section 6.054, Tax Code, as amended by this Act,
  applies only to a former member of an appraisal review board first
  employed by an appraisal district on or after the effective date of
  this Act.
         SECTION 21.  Section 6.41(f), Tax Code, as amended by this
  Act, applies only to a potential ground for removal of a member of
  an appraisal review board that an appraisal district board of
  directors, local administrative district judge, or local
  administrative district judge's designee, as applicable, first
  learns of on or after the effective date of this Act.
         SECTION 22.  Sections 11.45(a), 23.44(a), 23.57(a),
  23.79(a), 23.85(a), 23.95(a), and 23.9805(a), Tax Code, as amended
  by this Act, apply only to an application filed with a chief
  appraiser on or after the effective date of this Act.
         SECTION 23.  Sections 11.45(d) and (e), 23.44(d), 23.57(d),
  23.79(d), 23.85(d), 23.95(d), and 23.9805(d), Tax Code, as amended
  by this Act, apply only to a notice required to be delivered by a
  chief appraiser on or after the effective date of this Act.
         SECTION 24.  Section 25.25(e), Tax Code, as amended by this
  Act, applies only to a motion to correct an appraisal roll filed on
  or after the effective date of this Act.
         SECTION 25.  Sections 41.45, 41.46, and 41.67, Tax Code, as
  amended by this Act, apply only to a protest for which the notice of
  protest was filed on or after the effective date of this Act.
         SECTION 26.  This Act takes effect September 1, 2021.
 
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