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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Engrossed.html

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By: Nelson, Buckingham S.B. No. 63
Huffman

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.