NEW PROPERTY TAX LEGISLATION
(c) 2001 John Brusniak, Jr.(1) (All rights reserved. Reprinted with permission.)
CONSTITUTIONAL AMENDMENTS
(Passed by the voters on November 6, 2001. Effective January 1, 2002.)
The legislature is allowed to exempt travel trailers that are not held for the production of income regardless of whether such trailers are classified as real or personal property. TEX. CONST. art. VIII, §§ 1-j and 1-j-1.
(Passed by the voters on November 6, 2001, but the legislature has not passed any enabling legislation.)
The legislature is allowed to create a new exemption for Agoods-in-transit@ in Texas. Any property, excluding oil, natural gas and other petroleum products, but including aircraft and aircraft parts, which is in the process of being assembled, manufactured, stored, repaired, processed, or fabricated, and which is not detained in a location for more than 270 days would be exempt from taxation. To qualify, the property would not to be detained at a location not owned or under the control of the property owner. The property would need to be transported to another location within or without the state to qualify for the exempt status. Taxing units, after holding a public hearing, would be allowed to opt out of this exemption. TEX. CONST. art. VIII, § 1-n.
(Passed by the voters on November 6, 2001. Effective January 1, 2002.)
Subject to legislatively imposed qualification standards, raw cocoa and green coffee held in Harris County is exempt from ad valorem taxation. TEX. CONST. art. VIII, § 1-n.
NEW LEGISLATION
House Bills
Effective: September 1, 2001.
Disabled veterans will be able to apply belatedly for their additional homestead exemptions up to one year after they have paid the taxes or such taxes became delinquent, whichever date occurs first. TEX. PROP. TAX CODE § 11.439.
Effective: August 27, 2001.
The Sutton County Hospital District shall be allowed to raise its tax rate from thirty-five cents per hundred dollars of value to seventy-five cents per hundred dollars of value. TEX. REV. CIV STAT. ANN. art. 1047, § 7.05 (a) and (c).
Effective: September 1, 2001.
The Alcoholic Beverage Commission may cancel or deny a permit for sales of alcoholic beverages to any entity which is or becomes delinquent in the payment of its property taxes for the premises to which the permit pertains. TEX. ALC. BEV. CODE § 11.38(e).
Effective: September 1, 2001.
Persons conducting Agoing out of business@ sales must file their paperwork pertaining to the sale with the chief appraiser for the appraisal district in which the sale is to take place. (Currently, such paperwork is filed with the county clerk.) TEX. BUS. & COM. CODE § 17.835.
Effective: September 1, 2001.
New tax liens may not be placed on manufactured homes. Liens created prior to that date shall remain in place and enforceable. TEX. PROP. TAX CODE §§ 32.015 and 32.03.
Effective: September 1, 2001.
*Individuals may not serve on an appraisal district board of directors or as chief appraiser if they owe taxes which are delinquent more than 60 days or if they have lawfully abated a delinquent tax suit due to their age or the appreciation of their homestead value. TEX. PROP. TAX CODE §6.035(a).
*A county may contract with another taxing unit to collect taxes for it except for special inventory taxes. TEX. PROP. TAX CODE §6.24(c).
*An appraisal district board of directors may remove an appraisal review board member from office for violating the rules against conflicts of interest or ex parte communications. TEX. PROP. TAX CODE § 6.41(f).
*Individuals may not serve on an appraisal review board if they owe taxes which are delinquent more than 60 days or if they have lawfully abated a delinquent tax suit due to their age or the appreciation of their homestead value. TEX. PROP. TAX CODE §6.412(a).
*Documents provided to an appraisal district under a confidentiality agreement may be disclosed to the Comptroller's office and also to taxing units or their legal representatives if the property in question is the subject of a delinquent tax suit. TEX. PROP. TAX CODE §22.27(b).
*The chief appraiser may correct at any time ownership information or multiple appraisals of property which do not increase tax liability. Decisions to correct multiple appraisals are not appealable administratively or judicially. All monies paid on such accounts including penalties and interest shall be refunded. TEX. PROP. TAX CODE §§25.25(b), (n) and (o).
*A tax collector is required to automatically mail an application for refund to anyone who overpays their taxes by $5 or more. TEX. PROP. TAX CODE §31.11(g).
*A tax collector is required to automatically refund erroneous duplicate tax payments. TEX. PROP. TAX CODE §§31.111 and 31.12.
*The requirement that a tax collector notify property owners of tax delinquencies in years divisible by five is repealed along with all remedies pertaining to same. TEX. PROP. TAX CODE §33.04.
*Interest and penalties which accrue prior to the filing of an Aover-65 tax abatement affidavit@ remain valid. TEX. PROP. TAX CODE §§33.06(a), (d) and (e) and 33.065(g).
*Statutory collection fees chargeable to taxpayers in delinquent tax cases may be raised from 15% to up to 20% based on the contractual arrangement between the taxing unit and their outside counsel. TEX. PROP. TAX CODE §§33.07(a) and 33.08(b).
*In counties with a population of less than 20,000, the duty of collecting taxes owed to a defunct county education district may be transferred to a school district for which the county education district collected the taxes. TEX. PROP. TAX CODE §33.09.
*Taxing units executing tax warrants may seize cash, notes and accounts receivable, rents, royalties, time deposits and certificate of deposits. TEX. PROP. TAX CODE §33.21(d).
*Property seized under a tax warrant may be kept at its original location or moved to another location, at the discretion of the officer executing the warrant. A person who is holding property which belongs to another person, which property is subject to a tax warrant, is not liable for the property to the original owner if they surrender it to the officer, but their obligations to the original owner are not altered. TEX. PROP. TAX CODE §33.23 (c), (d) and (e).
*The tax collector is required to provide to the office executing a tax warrant the name and address of each person that has an interest in the property being seized. Property seized under a tax warrant shall be applied to all taxes, penalties and interest due and to the costs of the seizure. TEX. PROP. TAX CODE §33.25.
*A taxing unit may obtain an injunction preventing personal property on which taxes are delinquent from being removed from the county or being transferred to a buyer not in the ordinary course of business. The order may require any monies collected from such transactions be paid into the court's registry to secure payment of the delinquent taxes along with an amount estimated to approximate the current year's taxes. The tax lien shall attach to any such monies paid into the court's registry. TEX. PROP. TAX CODE §33.41 (d), (e), (f), (g), and (h).
*A taxing unit may pursue collection of a tax which it failed to include in a delinquent tax suit in a proceeding to disburse excess proceeds following a tax sale. TEX. PROP. TAX CODE §33.42(c).
*Reasonable attorney ad litem fees may be taxed as costs in a delinquent tax suit to cover the cost of an attorney representing a taxpayer who was cited to appear by publication. TEX. PROP. TAX CODE §33.48(a)(6).
*Taxing units are not liable for attorney ad litem fees. TEX. PROP. TAX CODE §33.49(a).
*A taxing unit may reopen a delinquent tax judgment if the property was the subject of a multiple appraisal. Such a petition may not be filed after a tax sale has occurred unless the property was struck off to a taxing unit or unless the purchaser at the sale consents. TEX. PROP. TAX CODE §33.56 (a)(4).
*A taxing unit may not sue to reopen a delinquent tax judgment unless the property was sold to another taxing unit and has not been resold, or if it has been resold, only if the tax sale purchaser or repurchaser consents to the suit. TEX. PROP. TAX CODE §33.56 (c), (d), (e) and (f).
*The sheriff shall include in the costs of a tax foreclosure sale the cost of recording the deed transferring title. The sheriff may obtain assistance from the tax collector in determining the amount of taxes, penalties and interest due at the time of foreclosure. A sheriff must sign a tax foreclosure deed prepared by a tax office, but is not liable for any errors contained in the deed. TEX. PROP. TAX CODE §§34.01(b) and (m), 34.05(d) and (e).
*If a sufficient bid is not received at a sale of property following the execution of a tax warrant, the sheriff may offer the property for less than the minimum bid amount to organizations which are providing low income housing and to religious organizations. Such bids will be deemed sufficient and conclusive. Otherwise, under such circumstances, the sheriff shall strike the property off to a taxing unit participating in the sale. TEX. PROP. TAX CODE §34.01(o) and (p).
*The county commissioner=s court shall designate the location of tax foreclosure sales. If it fails to do so, such sales shall take place at the same location as deed of trust foreclosures. TEX. PROP. TAX CODE §34.01(r).
*If a tax sale has been adjudged void, the purchaser at the sale shall have first priority to recovering monies from the sale. TEX. PROP. TAX CODE §34.04(c)(1).
*A person may not take an assignment of a claim to excess proceeds from a tax sale unless the assignment is taken at least 36 days after such monies have been deposited in the registry of the court, the assignment has been made in writing and notarized, and specifies that the assignor has full knowledge of the details of what was being assigned. A copy of the assignment must be attached to a petition to recover excess proceeds and the original of the assignment must be produced at the hearing. If a person violates these provisions, the person shall be liable to the assignor for the amount of the excess proceeds, attorney's fees and expenses. A person may not charge more than $1,000 or 25% of the excess proceeds obtained, whichever is less, as a fee for recovering excess proceeds. TEX. PROP. TAX CODE §34.04(f), (g) and (h).
*Taxing units may enter into agreements transferring their foreclosed properties to a municipality for use as affordable housing. TEX. PROP. TAX CODE §34.051(b).
*Municipalities shall have the right to transfer property, which they acquire through tax foreclosure proceedings, to organizations providing for low income housing or to religious organizations which enter into a written agreement for the revitalization of the property. TEX. LOCAL GOV'T CODE § 253.010.
*A purchaser at a void tax sale or resale may recover from each taxing unit an amount equal to the taxes, penalties, interest and attorney=s fees which it received and may recover any excess proceeds which have been distributed or which remain in the registry of the court. Such suits must be filed within one year of the date of the sale. TEX. PROP. TAX CODE §34.07(d) and (f).
*A person redeeming homestead or agricultural property seized and sold under a tax warrant shall be responsible for the lesser of the taxes, penalties and costs stated in the warrant or the market value of the property plus the cost of filing the taxing unit's deed plus other recoverable costs. TEX. PROP. TAX CODE §34.21(b).
*Upon prior written approval, a chief appraiser may appeal a decision of an appraisal review board under either Chapter 41 or Section 25.25. TEX. PROP. TAX CODE §42.02.
*In a suit to collect delinquent taxes on behalf of the state or a subdivision of the state, the secretary of state shall serve as an agent for service of process for a nonresident who owns property in Texas or claims to own property in Texas which is the subject of the suit. TEX. CIV. PRAC. & REM. CODE §17.091(a).
Effective: January 1, 2002.
Residential tax valuation caps for the elderly, which are transferrable to a new residence, may be claimed by a surviving spouse. TEX. PROP. TAX CODE §11.26(g) and (h).
Effective: September 1, 2001.
A hospital district located in a county with a population of 75,000 or less may hold a local option election seeking to impose an additional sales tax to be used to lower the property tax rate for the hospital district. TEX. HEALTH & SAFETY CODE §§285.061, 285.062, 285.161-286.951.
Effective: June 11, 2001.
The Comptroller of Public Accounts shall create a central registry of all reinvestment zones. All municipalities shall be required to file annual reports with the Comptroller describing all of their reinvestment zones. In even numbered years, the Comptroller shall submit a report to the governor and legislature listing and detailing all such zones. The Comptroller and the Texas Department of Economic Development shall provide assistance to municipalities regarding such issues. TEX. TAX CODE §§311.0163 and 311.019.
Effective: September 1, 2001.
Municipalities with a population of less than 250,000 may create up to four enterprise zone projects and two additional bonus projects during any biennium. Municipalities with a population of 250,000 or more may create up to six enterprise zone projects during any biennium. The number of enterprise zone projects which may be approved by the Texas Department of Economic Development in a biennium is increased from 65 to 85. TEX. GOV'T CODE §§2303.403 and 2303.406.
Effective: January 1, 2002.
Property owned by federal and state exempt nonprofit county fair organizations, which is used to hold agricultural fairs, shall be exempt from property taxation. Such property may not be used to conduct horse races or greyhound races at which pari-mutuel wagering is allowed. TEX. PROP. TAX CODE §11.23.
Effective: June 14, 2001.
Tax-foreclosed property that is transferred between governmental units for use as affordable housing is to be transferred subject to any remaining rights of redemption. TEX. PROP. TAX CODE §34.051(c) and (d).
Effective: September 1, 2001.
Appraisal district is no longer required to certify contamination of property on appraisal roll for property to claim environmental cleanup tax abatement. TEX. TAX CODE §312.211(a).
Effective: June 16, 2001.
Commercial and industrial redevelopment zones, funded by a 1/4 of 1% tax increment, may be created by municipalities in counties with populations of 2,500,000 or more. The purpose of such districts would be to encourage creation of commercial development, workforce development, public/private partnerships and the revitalization of neighborhoods. TEX. LOCAL GOV'T CODE §386.01 et seq.
Effective: January 1, 2002.
Vessels and watercraft under construction, and all tangible personal property which is intended to be incorporated into vessels and watercraft, are presumed to be in the stream of interstate, international or foreign commerce and not located in this state for more than a temporary period. (They are exempt from taxation.) TEX. PROP. TAX CODE §21.031(c), (d) and (h).
Effective: September 1, 2001.
Property that is the subject of a tax abatement agreement or which is located in a tax increment financing zone does not lose its eligibility for exemption if a person that is the subject of one of these agreements is elected to a governing body of a taxing unit which granted such exemption. TEX. TAX CODE §§312.204(d) and 312.402(d).
Effective: Generally, January 1, 2002.
School districts may enter into tax abatement agreements on real and personal property for businesses locating or expanding large "high tech" facilities. TEX. TAX CODE §313.001 et seq.
Effective: September 1, 2001.
Applications for exemption by community housing development organizations improving property for low-income and moderate-income families no longer need to be claimed annually. Once granted, they continue in place from year-to-year. The organization shall be required to notify the chief appraiser by March 31 of each year as to any acquisitions or sales of property during the preceding year. Such organizations shall be entitled to obtain a non-binding opinion letter from a chief appraiser prior to acquiring a property indicating whether the property would qualify for exemption. TEX. PROP. TAX CODE §§11.43(c), 11.436 and 11.82(c).
Effective: September 1, 2001.
Tax refunds, by a county with a population of 1,500,000 or more, due to erroneous payments in excess of $2,500 must be approved by the county commissioners court. TEX. PROP. TAX CODE §31.11(a).
Effective: June 13, 2001.
Cities, counties and certain school districts may enter into tax abatement agreements with owners of leasehold interests in tax-exempt properties (other than in projects funded with tax increment bonds) to exempt a portion of the value of tangible personal property located on the realty on the condition that the person make improvements or repairs to the real estate. The period of the abatement may not exceed 10 years. TEX. TAX CODE §§312.204(a), 312.210(b) and 312.402(a).
Effective: June 15, 2001.
The sunset provisions in the sections authorizing municipal and county redevelopment tax abatement zones and county development abatement zones are extended to September 1, 2009.. After September 1, 2001, school districts may not enter into abatement agreements. The Comptroller, in even numbered years shall file a report with the governor and legislature identifying all reinvestment zones and abatement agreements in place in the state. TEX. TAX CODE §§ 312.006, 312.005(c) and 312.002(e) and (f).
Effective: September 1, 2001.
In counties with populations of less than 500,000, taxing units, other than school districts, do not need to include monies collected for tax increment financing districts in their tax rate calculations. TEX. PROP. TAX CODE §26.03.
Effective date: September 1, 2001.
If approved by the governing body of a taxing unit or by the voters of a taxing unit, statewide and local charitable organizations, and their local chapters shall be entitled to exemption of the real and personal property, which is located within the boundaries of the taxing unit, if they are engaged in primarily performing any of the enumerated charitable activities already specified in the Property Tax Code. The property in question must be utilized exclusively in performing the charitable functions. Improvements under construction for such uses would also be exempted. The Comptroller's office would be required to certify that the organization qualified for exemption prior to the organization's applying for exemption with the chief appraiser. (This bill was primarily sponsored by masonic and other fraternal organizations.) TEX. PROP. TAX CODE §§11.184 and 11.43(b).
Effective date: January 1, 2002
If the ownership of a manufactured home affixed to the ground is the same as the ownership of the land, then the home shall be taxed as a real estate improvement. If the ownership is not the same, then they shall be assessed separately and the manufactured home shall be taxed as personal property. TEX. PROP. TAX CODE §32.014.
Effective: May 24, 2001.
A delinquent tax master may, if otherwise qualified, continue practicing law before the courts that referred the delinquent tax cases to the master. TEX. PROP. TAX CODE §33.71(h).
Effective: January 1, 2002.
If a person who qualifies for an "over 65" residential homestead sells that property during the calendar year and acquires another homestead which similarly qualifies, the "over 65" exemption on the first homestead shall be prorated for that tax year. The provision which allowed a property to qualify for an "over 65" homestead if any of its co-owners was over age 65 is repealed. TEX. PROP. TAX CODE §§26.10(b) and 26.112.
Effective: January 1, 2002 if HJR 44 is approved by the voters.
Taxing units, on a local option basis, may exempt from taxation travel trailers which are less than 400 square feet and which are primarily designed to be used as temporary living quarters in connection with recreational activities and not as primary dwellings. The trailers may not be held or used for the production of income. TEX. PROP. TAX CODE §§11.14(a) and 11.142.
Effective: June 11, 2001.
Tax assessor-collector shall have discretion as to whether to charge a fee for accepting payment of property taxes by credit card. TEX. PROP. TAX CODE §31.06(c).
Effective: January 1, 2002.
The chief appraiser is required to present the assessor-collector with a list of all properties that have not been certified with their values for the prior year and a reasonable estimate of their valuation for the current year. TEX. PROP. TAX CODE §26.01(d).
Effective: January 1, 2002.
A leasehold interest in any of the following types of public facilities which are open to the public, with or without an admission charge, shall not be taxable: convention center, visitor center, sports facility with permanent seating, concert hall, arena or stadium. TEX. PROP. TAX CODE §25.07(b)(4)(B).
Effective: June 15, 2001.
A municipality which has territory in three counties and a population of less than 120,000, may enter into a new Tax Increment Financing agreement, or amend an existing Tax Increment Financing agreement, so as to dedicate revenue from the fund to a school district for the purpose of acquiring, constructing, or reconstructing educational facilities which are located inside or outside the zone. TEX. TAX CODE §311.0085.
Effective: June 15, 2001.
A county may charge a fee, up to $1,000, for the filing of a tax abatement application. TEX. TAX CODE §312.002(e).
Effective: January 1, 2002.
If a taxpayer overpays a property tax bill by $5 or more, the assessor-collector shall automatically mail the taxpayer a notice of the overpayment accompanied by a refund form. A tax assessor-collector is required to automatically refund erroneous duplicate tax payments. TEX. PROP. TAX CODE §§31.11(g), 31.111 and 31.12(b)(5).
Effective: September 1, 2001.
The tax abatement for repairs or improvements to property located in a reinvestment zone does not take effect until January 1 of the next tax year after the repairs or improvements are substantially completed. TEX. TAX CODE §312.204(a).
Effective: September 1, 2001.
If a taxing unit has approved payment of all or a portion of its monies into a tax increment district, then it shall have the right to appoint pro-rata as many members to the board of directors of the district as its tax contributions bear to the total contributions. This bill applies only to a municipality with a population in excess of 1,100,000 which is located in a county with a population of less than 1,400,000. TEX. TAX CODE §311.0091.
Effective: September 1, 2001.
The Texas Natural Resource Conservation Commission ("TNRCC") shall issue specific standards for pollution control exemptions which will insure equality and uniformity and which will also insure that property which is used for the production of goods and services is not exempted. The chief appraiser shall either accept the determination of the TNRCC or contest it administratively. The chief appraiser is required to accept a final determination of the TNRCC after all appeal periods are exhausted. All appeals must be filed within 20 days after the receipt of the determination. TEX. PROP. TAX CODE §11.31(d), (e), (f), (g), (h), and (i).
Effective: September 1, 2001.
The Texas Parks and Wildlife Commission, with the assistance of the Comptroller, shall develop standards as to whether land qualifies for wildlife management appraisal. The Comptroller shall promulgate those standards in the form of rules. Such standards may include mandatory minimum acreage requirements. Appraisal districts and appraisal review boards shall be required to follow those standards. An appraisal district can compel a property owner to produce a written management plan which complies with the standards, and the standards may include specifications for such a plan. TEX. PROP. TAX CODE §§23.521 and 23.52(g).
Effective: September 1, 2001.
Counties now have the same authority as cities to create public improvement districts to enable them to construct public improvements. Such districts may be funded with an additional ad valorem tax. TEX. LOCAL GOV'T CODE §372.002.
Effective: June 14, 2001.
Medically disabled individuals may defer or abate delinquent tax suits on their homesteads in the same manner as individuals over the age of 65. To qualify, one must be eligible to receive disability insurance benefits under Federal Old-Age, Survivors and Disability Insurance. TEX. PROP. TAX CODE §33.06(a).
Effective: January 1, 2002.
Community housing development organizations, owning property with 36 or more dwelling units, may not receive their tax exemption for subsequent years unless they demonstrate that at least 40% of their tax exemption value for the prior year was expended on social, educational, economic development services, capital improvements projects or rent reduction for residents of the county. (This provision does not apply to organizations which used tax-exempt bond financing after January 1, 1997 and before December 31, 2001.) Additionally, community housing development organizations constructing housing projects after December 31, 2001 and financing them with tax-exempt bonds issued under Section 145 of the Internal Revenue Code, must control 100% of the interest in the general partner if the project is owned by a limited partnership and submit annually to the Texas Department of Housing and Community Affairs and each taxing unit proof that it has spent at least 90% of the cash flow of the project in the preceding year on social, educational, economic development services, capital improvements projects or rent reduction for residents of the county. Such restrictions do not apply if the organization is required by its financing agreement to make payments "in lieu of taxes"or to restrict the amount of rent which it may charge. These organizations must have their finances audited annually by an independent CPA, and a copy of such audit must be provided to the Texas Department of Housing and Community Affairs and the chief appraiser. TEX. PROP. TAX CODE §11.182.
Effective: September 1, 2001.
The date on which a chief appraiser is to certify to the school district tax assessor an estimate of the taxable property located in the school district is moved from June 15 to June 7. TEX. PROP. TAX CODE §26.01(d).
Senate Bills
Effective: September 1, 2001.
Upon written request, an appraisal district shall keep confidential the addresses of peace officers, county jailers, commissioned security officers and employees of the Texas Department of Criminal Justice. Information pertaining to the underlying property may be disclosed if it does not disclose the identity of the owner of the property. Additionally, all information pertaining to family violence shelter centers and sexual assault programs is also confidential and may only be used by the government. TEX. PROP. TAX CODE §§25.025 and 25.026.
Effective: January 1, 2002.
Leased motor vehicles that are not held for the production of income, and that are primarily used for activities that do not involve the production of income are exempt from taxation. A vehicle is not used for the production of income if more than 50% of a vehicle=s use does not involve such activities. The Comptroller shall promulgate rules and forms to be utilized to determine qualifications. Lessors shall maintain copies of forms completed by lessees demonstrating such non-business use and hold them for inspection by the chief appraiser. Lessors shall be required to render all vehicles for which they do not hold such forms. Additionally, lessors shall be required to prepare and file property report forms listing all lease vehicles which they own. This provision expires in its entirety on December 31, 2003. TEX. PROP. TAX CODE §11.252.
Effective: May 22, 2001.
Upon a redemption of property after foreclosure sale, the redeemer must pay as costs to a taxing unit which acquired the property, the personnel and overhead costs reasonably associated with maintaining, preserving, safekeeping, managing and reselling the property. TEX. PROP. TAX CODE §34.21(g)(2)(B).
Effective: September 1, 2001.
After September 1, 2001, hospital districts in Bexar County, Nueces County, El Paso County and Harris County may not enter into any new tax increment financing district agreements. TEX. HEALTH & SAFETY CODE §281.095.
Effective: January 1, 2002.
The maximum number of appraisal review board members is increased from 15 to 40 in counties with a population of at least 250,000 and from 30 to 75 in counties with a population of at least 500,000. The provisions authorizing the appointment of auxiliary appraisal review board members are repealed. TEX. PROP. TAX CODE §§6.41 (b) and (e) and 6.412.
Effective: September 1, 2001.
Freeport exemptions may be filed belatedly up to the date on which the appraisal review board approves the appraisal records. Additionally, if a taxpayer fails to timely provide documents requested to support a freeport application within the 30 day statutory period, the taxpayer may do so up to the time the appraisal review board approves the appraisal records. The taxpayer will pay a 10% penalty for the privilege of filing such applications or documents late. TEX. PROP. TAX CODE §§11.251(h) and 11.439.
Effective: May 22, 2001.
If a taxing unit does not pay a refund within 60 days after a chief appraiser notifies the unit of a required refund after lawsuit, interest on the judgment shall be paid at the rate of twelve percent per annum, retroactive to the original delinquency date. A taxpayer who is not paid a litigation refund within 180 days after the appraisal roll is corrected and who thereafter files suit to compel the refund is entitled to recover attorneys' fees and costs associated with such a suit. TEX. PROP. TAX CODE §42.43 (c) and (d).
Effective: May 28, 2001.
The time period for filing motions to correct errors under Section 25.25 (c) is extended to five years preceding the current tax year. Hearings under Section 25.25(d) may be denied on the grounds of a prior evidentiary hearing only if the property owner offered evidence or argument at the hearing and the appraisal review board made a determination on the merits. TEX. PROP. TAX CODE §25.25(c) and (d).
Effective: June 15, 2001.
A city may enter into a tax abatement agreement with the owner of a leasehold interest in tax-exempt property (other than in projects funded with tax increment bonds) to exempt a portion of the value of tangible personal property located on the realty on the condition that the person make improvements or repairs to the real estate. Such agreements may not exceed 10 years in length. TEX. TAX CODE §312.204(a).
Effective: June 13, 2001.
An abatement agreement with a city may include a provision for the recapture of the lost property tax revenue if the taxpayer breaches the agreement by failing to create the number of new jobs specified in the abatement agreement. Such agreement may also provide for penalties and interest on the lost property tax revenue. TEX. TAX CODE §312.205(b)(6).
Effective: September 1, 2001.
*The requirement that the Comptroller's Technical Advisory Committee meet at least semi-annually is deleted. TEX. PROP. TAX CODE §5.101.
*As soon as a chief appraiser discovers that the certification of rolling stock which the chief appraiser filed with the Comptroller is inaccurate or incomplete, the chief appraiser shall file a correct reported. The chief appraiser shall also notify the county tax assessor-collector of the correction. TEX. PROP. TAX CODE § 24.365.
*In the event an appraisal district uses a private appraisal firm to appraise property, a property or a property's owner's agent shall have the right to inspect all records used by the appraisal firm in valuing the property owner's property. Such inspection shall take place at the offices of the appraisal firm and no later than 15 days after the notice is delivered. If the firm declines the inspection, the appraisal review board may not conduct a hearing on the property and may not certify a value on the property until the inspection is allowed or the taxpayer withdraws the request. TEX. PROP. TAX CODE § 25.195.
*The chief appraiser is required to file with the Comptroller by July 1 of each year a listing of all reinvestment zones within the boundaries of the appraisal district and a copy of each agreement. TEX. TAX CODE §312.005.
Effective: May 22, 2001.
The county commissioners court may order a binding referendum by the voters on whether the taxes in a flood control district should be increased or decreased or whether an existing or proposed flood control project should receive funding. TEX. LOCAL GOV'T CODE §411.009.
Effective: May 26, 2001.
All real and personal property owned by nonprofit providers of chilled water and steam shall be exempt from taxation as though it were owned by the state for health and education purposes. TEX. PROP. TAX CODE §11.11(i).
Effective: January 1, 2002.
In a county with a population of 35,000 or less, a greenhouse growing floral items qualifies for agricultural valuation. The property may not be used by itself or in conjunction with another property for retail sales of florist items. TEX. PROP. TAX CODE §23.425.
Effective: January 1, 2002 if the voters pass SJR 47 on November 6, 2001.
Raw cocoa and green coffee held in Harris County is exempt from ad valorem taxation. TEX. PROP. TAX CODE §11.33.
Effective: September 1, 2001.
The provision limiting the time period in which other taxing units may join in municipal tax abatement agreements to 90 days is repealed. The tax abatement for repairs or improvements to property located in a reinvestment zone does not take effect until January 1 of the next tax year after the repairs or improvements are substantially completed. TEX. TAX CODE §§312.206(a) and 312.204(a).
Effective: June 30, 2001.
Taxing units are required to waive penalties and interest if the tax bill was not delivered to the owner of the property due to an error by the appraisal district or taxing unit. Such claim must be filed, and the tax must be paid, within three years of the date that the taxpayer knew or should have known of the delinquency. TEX. PROP. TAX CODE §33.011(a).
Effective: May 26, 2001.
A chief appraiser is required to make available to a taxpayer or to a taxpayer's agent copies of all data pertaining to the valuation of the taxpayer's property including data from outside sources. In the event an appraisal district uses a private appraisal firm to appraise property, a property or a property's owner's agent shall have the right to inspect all records used by the appraisal firm in valuing the property owner's property. Such inspection shall take place at the offices of the appraisal firm and no later than 15 days after the notice is delivered. If the firm declines the inspection, the appraisal review board may not conduct a hearing on the property and may not certify a value on the property until the inspection is allowed or the taxpayer withdraws the request. TEX. PROP. TAX CODE §25.195.
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John Brusniak, Jr. is the principal in the law firm of Brusniak & Harrison , P.C., located at 17400 Dallas Parkway, Suite 212, Dallas, Texas 75287-7306, (972) 250-6363, (800) 583-9829; e-mail at john@txtax.com. The firm maintains offices in Dallas/Fort Worth, San Antonio, El Paso and Brownsville and maintains an informational site at www.txtax.com. Mr. Brusniak's practice is limited to the representation of taxpayers with property tax disputes in Texas and Oklahoma. He has been engaged in the representation of property taxpayers for 20 years. Mr. Brusniak is past Chair of the State Bar of Texas Property Tax Committee, past Chair of the American Bar Association's Property Tax Committee and is the past Chair of the State Bar of Texas, Section of Taxation. He writes a regular column on property tax matters for the State of Texas Taxation Section Newsletter and the Section of Real Property Newsletter. He is a frequent lecturer on property tax matters.