S.B. No. 340 AN ACT
relating to the rendition and appraisal of property for ad valorem tax purposes and to the use of electronic means for certain interactions between property owners and appraisal districts, taxing units, or other tax officials; providing civil penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.085, Tax Code, is amended by amending Subsection (b) and adding Subsections (e), (f), and (g) to read as follows:
(b) An agreement between a chief appraiser and a property owner must:
(e) The comptroller by rule:
(f) In an agreement entered into under this section, a chief appraiser may select the medium, format, content, and method to be used by the appraisal district from among those prescribed by the comptroller under Subsection (e).
(g) Notwithstanding Subsection (a), if a property owner whose property is included in 25 or more accounts in the appraisal records of the appraisal district requests the chief appraiser to enter into an agreement for the delivery of the notice required by Section 25.19 in an electronic format, the chief appraiser must enter into an agreement under this section for that purpose and shall deliver the notice in accordance with an electronic medium, format, content, and method prescribed by the comptroller under Subsection (e).
SECTION 2. Section 1.09, Tax Code, is amended to read as follows:
Sec. 1.09. AVAILABILITY OF FORMS. When a property owner is required by this title to use a form, the office or agency with which the form is filed shall make printed and electronic versions of the forms readily and timely available and shall furnish a property owner a form without charge.
SECTION 3. Section 22.01, Tax Code, is amended by amending Subsection (a) and adding Subsections (f) through (j) to read as follows:
(a) Except as provided by Chapter 24, a person shall render for taxation all tangible personal property used for the production of income that the person owns or that the person manages and controls as a fiduciary on January 1. A rendition statement shall contain:
(f) Notwithstanding Subsections (a) and (b), a rendition statement of a person who owns tangible personal property used for the production of income located in the appraisal district that, in the owner's opinion, has an aggregate value of less than $20,000 is required to contain only:
(g) A person's good faith estimate of the market value of the property under Subsection (a)(5) is solely for the purpose of compliance with the requirement to render tangible personal property and is inadmissible in any subsequent protest, hearing, appeal, suit, or other proceeding under this title involving the property, except for:
(h) If the property that is the subject of the rendition is regulated by the Public Utility Commission of Texas, the Railroad Commission of Texas, the federal Surface Transportation Board, or the Federal Energy Regulatory Commission, the owner of the property is considered to have complied with the requirements of this section if the owner provides to the chief appraiser, on written request of the chief appraiser, a copy of the annual regulatory report covering the property and sufficient information to enable the chief appraiser to allocate the value of the property among the appropriate taxing units for which the appraisal district appraises property.
(i) Subsection (a) does not apply to a property owner whose property is subject to appraisal by a third party retained by the appraisal district if the property owner provides information substantially equivalent to that required by Subsection (a) regarding the property directly to the third party appraiser.
(j) Subsection (a) does not apply to property that is exempt from taxation.
SECTION 4. Section 22.02, Tax Code, is amended to read as follows:
Sec. 22.02. RENDITION OF PROPERTY LOSING EXEMPTION DURING TAX YEAR OR FOR WHICH EXEMPTION APPLICATION IS DENIED.
(a) If an exemption applicable to a property on January 1 terminates during the tax year, the person who owns or acquires the property on the date applicability of the exemption terminates shall render the property for taxation within 30 days after the date of termination.
(b) If the chief appraiser denies an application for an
exemption for property described by Section 22.01
SECTION 5. Section 22.07, Tax Code, is amended by adding Subsections (c) through (f) to read as follows:
(c) The chief appraiser may request, either in writing or by electronic means, that the property owner provide a statement containing supporting information indicating how the value rendered under Section 22.01(a)(5) was determined. The statement must:
(d) The property owner shall deliver the statement to the chief appraiser, either in writing or by electronic means, not later than the 21st day after the date the chief appraiser's request is received. The owner's statement is solely for informational purposes and is not admissible in evidence in any subsequent protest, suit, appeal, or other proceeding under this title involving the property other than:
(e) A statement provided under this section is confidential
information and may not be disclosed, except as provided by Section
SECTION 6. Section 22.23, Tax Code, is amended by amending Subsection (b) and adding Subsection (c) to read as follows:
(b) On written request by the property owner, the chief appraiser shall extend a deadline for filing a rendition statement or property report to May 15. The chief appraiser may further extend the deadline an additional
15 days upon good cause shown in writing by the property owner.
SECTION 7. Subsections (b), (c), and (d), Section 22.24, Tax Code, are amended to read as follows:
(b) A person filing a rendition or report shall include all
information required by Section 22.01.
SECTION 8. Subchapter B, Chapter 22, Tax Code, is amended by adding Sections 22.28, 22.29, and 22.30 to read as follows:
Sec. 22.28. PENALTY FOR DELINQUENT REPORT.
Sec. 22.29. PENALTY FOR FRAUD OR INTENT TO EVADE TAX.
(b) Enforcement of this section shall be by a proceeding initiated by the district or county attorney of the county in which the appraisal is established, on behalf of the appraisal district. (c) In making a determination of liability under this section, the court shall consider:
(d) The chief appraiser may retain a portion of a penalty collected under this section, not to exceed 20 percent of the amount of the penalty, to cover the chief appraiser's costs of collecting the penalty. The chief appraiser shall distribute the remainder of the penalty to each taxing unit participating in the appraisal district that imposes taxes on the property in proportion to the taxing unit's share of the total amount of taxes imposed on the property by all taxing units participating in the district.
Sec. 22.30. WAIVER OF PENALTY.
(c) A property owner is entitled to protest before the appraisal review board the failure or refusal of a chief appraiser to waive a penalty under Subsection (a).
SECTION 9. Section 23.23, Tax Code, is amended by adding Subsection (f) to read as follows:
(f) Notwithstanding Subsections (a) and (e) and except as provided by Subdivision (2), an improvement to property that would otherwise constitute a new improvement is not treated as a new improvement if the improvement is a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by mold or water damage. For purposes of appraising the property in the tax year in which the structure would have constituted a new improvement:
SECTION 10. Section 25.19, Tax Code, is amended by adding Subsection (k) to read as follows:
(k) Notwithstanding any other provision of this section, the chief appraiser may not deliver a written notice concerning property that is required to be rendered or reported under Chapter 22 until after the applicable deadline for filing the rendition statement or property report.
SECTION 11. Section 41.43, Tax Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows: (a) Except as provided by Subsection (d), in a protest authorized by Section 41.41(a)(1) or (2), the appraisal district has the burden of establishing the value of the property by a preponderance of the evidence presented at the hearing. If the appraisal district fails to meet that standard, the protest shall be determined in favor of the property owner.
(d) If the property owner fails to deliver, before the date of the hearing, a rendition statement or property report required by Chapter 22 or a response to the chief appraiser's request for information under Section 22.07(c), the property owner has the burden of establishing the value of the property by a preponderance of the evidence presented at the hearing. If the property owner fails to meet that standard, the protest shall be determined in favor of the appraisal district.
SECTION 12. (a) Except as provided by Subsections (b) and (c) of this section, this Act takes effect January 1, 2004, and applies only to the rendition of property for ad valorem tax purposes for a tax year that begins on or after that date.
______________________________ ______________________________ President of the Senate Speaker of the House
I hereby certify that S.B. No. 340 passed the Senate on April 24, 2003, by the following vote: Yeas 27, Nays 4; May 21, 2003, Senate refused to concur in House amendments and requested appointment of Conference Committee; May 24, 2003, House granted request of the Senate; May 31, 2003, Senate adopted Conference Committee Report by the following vote: Yeas 30, Nays 0.
______________________________ Secretary of the Senate
I hereby certify that S.B. No. 340 passed the House, with amendments, on May 10, 2003, by a non-record vote; May 24, 2003, House granted request of the Senate for appointment of Conference Committee; May 31, 2003, House adopted Conference Committee Report by a non-record vote.
______________________________ Chief Clerk of the House
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