

	By: Elkins	H.B. No. 3125

A BILL TO BE ENTITLED

AN ACT

relating to abolishing the property tax assistance division of the

office of the comptroller of public accounts and transferring its

powers and duties to the newly created State Property Tax Board.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. ESTABLISHING THE STATE PROPERTY TAX BOARD

SECTION 1.01. Chapter 5, Tax Code, is amended by

designating Sections 5.03 through 5.16 as Subchapter A and adding a

subchapter heading to read as follows:

SUBCHAPTER A. STATE PROPERTY TAX BOARD

SECTION 1.02. Subchapter A, Chapter 5, Tax Code, as added by

this Act, is amended by adding Sections 5.01, 5.02, 5.021, 5.022,

and 5.023 to read as follows:

Sec. 5.01. DEFINITION. In this chapter, "board" means the

State Property Tax Board.

Sec. 5.02. STATE PROPERTY TAX BOARD. (a) The State

Property Tax Board is established. The board consists of seven

members appointed by the governor with the advice and consent of the

senate. In making the appointments, the governor, to the extent

practicable, shall select persons so that each geographical area of

the state is represented. A vacancy on the board is filled in the

same manner for the unexpired portion of the term.

(b) Members of the board hold office for terms of six years,

with the terms of two or three members expiring on March 1 of each

odd-numbered year.

been a resident of this state for at least 10 years.

(d) At least two members must be either registered with the

Texas Department of Licensing and Regulation under Chapter 1151 or

1152, Occupations Code, or an elected county assessor-collector.

(e) A majority of the board constitutes a quorum.

(f) The governor shall designate one of the members of the

board to serve as chair for a term, in that capacity, of two years

expiring on March 1 of each odd-numbered year.

(g) The board shall maintain a principal office in Austin.

(h) The board shall meet at least once in each calendar

quarter and may meet at other times at the call of the chair or as

provided by the rules of the board.

(i) A member of the board may not receive compensation for

service on the board but is entitled to reimbursement for actual and

necessary expenses, as provided by legislative appropriation,

incurred while on travel status in the performance of official

duties.

Sec. 5.021. BOARD PERSONNEL. (a) The board shall employ an

executive director who shall administer board operations as

directed by the board.

(b) The executive director may employ professional,

clerical, and other personnel to assist in administering board

operations.

Sec. 5.022. GROUNDS FOR REMOVAL OF BOARD MEMBERS. (a) It

is a ground for removal from the board if a member:

(1) does not have at the time of appointment the

qualifications required under Section 5.02;

(2) does not maintain during service on the board the

qualifications and other eligibility conditions required by

Section 5.02;

(3) violates a prohibition described by Section 5.023;

(4) cannot discharge the member's duties for a

substantial part of the term for which the member is appointed

because of illness or disability; or

(5) is absent from more than half of the regularly

scheduled board meetings that the member is eligible to attend

during a calendar year unless the absence is excused by a majority

vote of the board.

(b) The validity of an action of the board is not affected by

the fact that it is taken when a ground for removal of a board member

exists.

ground for removal exists, the executive director shall notify the

chair of the ground. The chair shall then notify the governor that

a potential ground for removal exists. If the member about which

the executive director has knowledge that a potential ground for

removal exists is the chair, the executive director shall notify

two other board members of the ground, and those members shall then

notify the governor that a potential ground for removal exists.

Sec. 5.023. RESTRICTIONS ON BOARD MEMBERSHIP AND

EMPLOYMENT. (a) An officer, employee, or paid consultant of a

Texas trade association in the field of property taxation may not be

a member of the board or be an employee of the board who is exempt

from the state's position classification plan or is compensated at

or above the amount prescribed by the General Appropriations Act

for step 1, salary group 17, of the position classification salary

schedule.

(b) A person who is the spouse of an officer, manager, or

paid consultant of a Texas trade association in the field of

property taxation may not be a member of the board or be an employee

of the board who is exempt from the state's position classification

plan or is compensated at or above the amount prescribed by the

General Appropriations Act for step 1, salary group 17, of the

position classification salary schedule.

the general counsel to the board if the person is required to

of the person's activities for compensation on behalf of a

profession related to the operation of the board.

(d) In this section, "Texas trade association" means a

nonprofit, cooperative, and voluntarily joined association of

business or professional competitors in this state designed to

assist its members and its industry or profession in dealing with

mutual business or professional problems and in promoting their

common interest.

SECTION 1.03. Section 5.03, Tax Code, is amended to read as

follows:

Sec. 5.03. POWERS AND DUTIES GENERALLY. (a) The board

[~~comptroller~~] shall adopt rules establishing minimum standards for

the administration and operation of an appraisal district. The

minimum standards may vary according to the number of parcels and

the kinds of property the district is responsible for appraising.

(b) The board [~~comptroller~~] may require from each district

engaged in appraising property for taxation an annual report on a

form prescribed by the board [~~comptroller~~] on the administration

and operation of the appraisal office.

to assist in performance of the duties imposed by this chapter.

SECTION 1.04. Section 5.04(a), Tax Code, is amended to read

as follows:

(a) The board [~~comptroller~~] shall enter into a memorandum of

understanding with the Texas Department of Licensing and Regulation

or any successor agency responsible for certifying tax

professionals in this state in setting standards for and approving

curricula and materials for use in training and educating

appraisers and assessor-collectors, and the board [~~comptroller~~]

may contract or enter into a memorandum of understanding with other

public agencies, educational institutions, or private

organizations in sponsoring courses of instruction and training

programs.

SECTION 1.05. Sections 5.041(a), (b), (b-1), (c), (d),

(e-1), (e-2), (e-3), and (f), Tax Code, are amended to read as

follows:

(a) The board [~~comptroller~~] shall:

(1) approve curricula and provide materials for use in

training and educating members of an appraisal review board;

(2) supervise a comprehensive course for training and

education of appraisal review board members and issue certificates

indicating course completion;

(3) make all materials for use in training and

educating members of an appraisal review board freely available

online;

(4) establish and maintain a toll-free telephone

number that appraisal review board members may call for answers to

technical questions relating to the duties and responsibilities of

appraisal review board members and property appraisal issues; and

(5) provide, as feasible, online technological

assistance to improve the operations of appraisal review boards and

appraisal districts.

(b) A member of the appraisal review board established for

an appraisal district must complete the course established under

Subsection (a). A member of the appraisal review board may not

participate in a hearing conducted by the appraisal review board

unless the person has completed the course established under

Subsection (a) and received a certificate of course completion.

(b-1) At the conclusion of a course established under

Subsection (a), each member of an appraisal review board in

attendance shall complete a statement, on a form prescribed by the

board [~~comptroller~~], indicating that the member will comply with

the requirements of this title in conducting hearings.

providers to assist with the duties imposed under Subsection (a),

but the course required may not be provided by an appraisal

district, the chief appraiser or another employee of an appraisal

district, a member of the board of directors of an appraisal

district, a member of an appraisal review board, or a taxing unit.

The board [~~comptroller~~] may assess a fee to recover a portion of the

costs incurred for the training course, but the fee may not exceed

$50 per person trained.

(d) The course material for the course required under

Subsection (a) is the State Property Tax Board's [~~comptroller's~~]

Appraisal Review Board Manual [~~in use on the effective date of this~~

~~section~~]. The manual shall be updated regularly. It may be revised

on request, in writing, to the board [~~comptroller~~]. The revision

language must be approved on the unanimous agreement of a committee

selected by the board [~~comptroller~~] and representing, equally,

taxpayers and chief appraisers. The person requesting the revision

shall pay the costs of mediation if the board [~~comptroller~~]

determines that mediation is required.

(e-1) In addition to the course established under

Subsection (a), the board [~~comptroller~~] shall approve curricula and

provide materials for use in a continuing education course for

members of an appraisal review board. 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.

(e-2) During the second year of an appraisal review board

member's term of office, the member must successfully complete the

course established under Subsection (e-1). At the conclusion of

the course, the member must complete a statement described by

Subsection (b-1). A person may not participate in a hearing

conducted by the appraisal review board, vote on a determination of

a protest, or be reappointed to an additional term on the appraisal

review board until the person has completed the course established

under Subsection (e-1) and has received a certificate of course

completion. If the person is reappointed to an additional term on

the appraisal review board, the person must successfully complete

the course established under Subsection (e-1) and comply with the

other requirements of this subsection in each year the member

continues to serve.

(e-3) The board [~~comptroller~~] may contract with service

providers to assist with the duties imposed under Subsection (e-1),

but the course required by that subsection may not be provided by an

appraisal district, the chief appraiser or another employee of an

appraisal district, a member of the board of directors of an

appraisal district, a member of an appraisal review board, or a

taxing unit. The board [~~comptroller~~] may assess a fee to recover a

portion of the costs incurred for the continuing education course,

but the fee may not exceed $50 for each person trained.

(f) The board [~~comptroller~~] may not advise a property owner,

a property owner's agent, or the chief appraiser or another

employee of an appraisal district on a matter that the board

[~~comptroller~~] knows is the subject of a protest to the appraisal

review board. The board [~~comptroller~~] may provide advice to an

appraisal review board member as authorized by Subsection (a)(4) of

this section or Section 5.103 and may communicate with the chair

[~~chairman~~] of an appraisal review board or a taxpayer liaison

officer concerning a complaint filed under Section 6.052.

SECTION 1.06. Sections 5.05(a), (b), and (c), Tax Code, are

amended to read as follows:

(a) The board [~~comptroller~~] may prepare and issue

publications relating to the appraisal of property and the

administration of taxes, or may approve other publications relating

to those matters, including materials published by The Appraisal

Foundation, the International Association of Assessing Officers,

or other professionally recognized organizations, for use in the

administration of property taxes, including:

(1) a general appraisal manual;

(2) special appraisal manuals as authorized by law;

(3) cost, price, and depreciation schedules as

authorized by law, with provision for inserting local market index

factors and with a standard procedure for determining local market

index factors;

(4) periodic news and reference bulletins;

(5) [an] annotated digests of all laws relating to

property taxation [~~version of this title and Title 3~~]; and

(6) a handbook of [~~containing selected laws and~~] all

rules promulgated by the board [~~comptroller~~] relating to the

property tax and its administration.

(b) The board [~~comptroller~~] shall revise or supplement all

materials issued by the board [~~comptroller~~] or approve other

publications periodically as necessary to keep them current.

all materials under this section for administering the property tax

system. The board [~~comptroller~~] shall make the materials available

to local governmental officials and members of the public but may

charge a reasonable fee to offset the costs of preparing, printing,

and distributing the materials.

SECTION 1.07. Sections 5.06, 5.07, 5.08, 5.09, 5.10, 5.102,

5.103, 5.12, 5.13, 5.14, and 5.16, Tax Code, are amended to read as

follows:

Sec. 5.06. EXPLANATION OF TAXPAYER REMEDIES. The board

[~~comptroller~~] shall prepare and electronically publish a pamphlet

explaining the remedies available to dissatisfied taxpayers and the

procedures to be followed in seeking remedial action. The board

[~~comptroller~~] shall include in the pamphlet advice on preparing and

presenting a protest.

Sec. 5.07. PROPERTY TAX FORMS AND RECORDS SYSTEMS. (a) The

board [~~comptroller~~] shall prescribe the contents of all forms

necessary for the administration of the property tax system and on

request shall furnish sufficient copies of model forms of each type

to the appropriate local officials. The board [~~comptroller~~] may

require reimbursement for the costs of printing and distributing

the forms.

(b) The board [~~comptroller~~] shall make the contents of the

forms uniform to the extent practicable but may prescribe or

approve additional or substitute forms for special circumstances.

record system to be used by all appraisal districts for the purpose

of submitting data to be used in the studies required by Sections

[~~Section~~] 5.10 [~~of this code~~] and 5.23 [~~by Section 403.302,~~

~~Government Code~~]. The record system shall include a compilation of

information concerning sales of real property within the boundaries

of the appraisal district. The sales information maintained in the

uniform record system shall be submitted annually in a form

prescribed by the board [~~comptroller~~].

Sec. 5.08. PROFESSIONAL AND TECHNICAL ASSISTANCE. (a) The

board [~~comptroller~~] may provide professional and technical

assistance on request in appraising property, installing or

updating tax maps, purchasing equipment, developing recordkeeping

systems, or performing other appraisal activities. The board

[~~comptroller~~] may also provide professional and technical

assistance on request to an appraisal review board. The board

[~~comptroller~~] may require reimbursement for the costs of providing

the assistance.

(b) The board [~~comptroller~~] may provide information to and

consult with persons actively engaged in appraising property for

tax purposes about any matter relating to property taxation without

charge.

Sec. 5.09. BIENNIAL REPORTS. (a) The board [~~comptroller~~]

shall prepare a biennial report of its operations and the

operations of the appraisal districts of this state. The report

shall include the total appraised values and taxable values of

taxable property by category and the tax rates of each county,

municipality, and school district in effect for the two years

preceding the year in which the report is prepared.

(b) Not later than December 31 of each even-numbered year,

the board [~~comptroller~~] shall:

(1) electronically publish on the board's

[~~comptroller's~~] Internet website the report required by Subsection

(a); and

(2) notify the governor, the lieutenant governor, and

each member of the legislature that the report is available on the

website.

Sec. 5.10. RATIO STUDIES. (a) At least once every two

years, the board [~~comptroller~~] shall conduct a study in each

appraisal district to determine the degree of uniformity of and the

median level of appraisals by the appraisal district within each

major category of property. The board [~~comptroller~~] shall publish

a report of the findings of the study, including in the report the

median levels of appraisal for each major category of property, the

coefficient of dispersion around the median level of appraisal for

each major category of property, and any other standard statistical

measures that the board [~~comptroller~~] considers appropriate. In

conducting the study, the board [~~comptroller~~] shall apply

appropriate standard statistical analysis techniques to data

collected as part of the study of school district taxable values

required by Section 5.23 [~~403.302, Government Code~~].

(b) The published findings of a ratio study conducted by the

board [~~comptroller~~] shall be distributed to all members of the

legislature and to all appraisal districts.

[~~comptroller~~] or the board's [~~comptroller's~~] authorized

representative may enter the premises of a business, trade, or

profession and inspect the property to determine the existence and

market value of property used for the production of income. An

inspection under this subsection must be made during normal

business hours or at a time mutually agreeable to the board

[~~comptroller~~] or the board's [~~comptroller's~~] authorized

representative and the person in control of the premises.

Sec. 5.102. REVIEW OF APPRAISAL DISTRICTS. (a) At least

once every two years, the board [~~comptroller~~] shall review the

governance of each appraisal district, taxpayer assistance

provided, and the operating and appraisal standards, procedures,

and methodology used by each appraisal district, to determine

compliance with generally accepted standards, procedures, and

methodology. After consultation with the advisory committee

created under Section 5.23 [~~403.302, Government Code~~], the board

[~~comptroller~~] by rule may establish procedures and standards for

conducting and scoring the review.

(b) In conducting the review, the board [~~comptroller~~] is

entitled to access to all records and reports of the appraisal

district, to copy or print any record or report of the appraisal

district, and to the assistance of the appraisal district's

officers and employees.

shall, in writing, notify the appraisal district concerning its

performance in the review. If the review results in a finding that

an appraisal district is not in compliance with generally accepted

standards, procedures, and methodology, the board [~~comptroller~~]

shall deliver a report that details the board's [~~comptroller's~~]

findings and recommendations for improvement to:

(1) the appraisal district's chief appraiser and board

of directors; and

(2) the superintendent and board of trustees of each

school district participating in the appraisal district.

(d) If the appraisal district fails to comply with the

recommendations in the report and the board [~~comptroller~~] finds

that the board of directors of the appraisal district failed to take

remedial action reasonably designed to ensure substantial

compliance with each recommendation in the report before the first

anniversary of the date the report was issued, the board

[~~comptroller~~] shall notify the department [~~Board of Tax~~

~~Professional Examiners, or a successor to the board~~], which shall

take action necessary to ensure that the recommendations in the

report are implemented as soon as practicable.

(e) Before February 1 of the year following the year in

which the department [~~Board of Tax Professional Examiners, or its~~

~~successor,~~] takes action under Subsection (d), and with the

assistance of the board [~~comptroller~~], the department [~~board~~] shall

determine whether the recommendations in the most recent report

have been substantially implemented. The executive director of the

department [~~presiding officer of the board~~] shall notify the chief

appraiser and the board of directors of the appraisal district in

writing of the department's [~~board's~~] determination.

(f) In this section, "department" means the Texas

Department of Licensing and Regulation.

Sec. 5.103. APPRAISAL REVIEW BOARD OVERSIGHT. (a) The

board [~~comptroller~~] shall prepare model hearing procedures for

appraisal review boards.

(b) The model hearing procedures shall address:

(1) the statutory duties of an appraisal review board;

(2) the process for conducting a hearing;

(3) the scheduling of hearings;

(4) the postponement of hearings;

(5) the notices required under this title;

(6) the determination of good cause under Section

41.44(b);

(7) the determination of good cause under Sections

41.45(e) and(e-1);

(8) a party's right to offer evidence and argument;

(9) a party's right to examine or cross-examine

witnesses or other parties;

(10) a party's right to appear by an agent;

(11) the prohibition of an appraisal review board's

consideration of information not provided at a hearing;

(12) ex parte and other prohibited communications;

(13) the exclusion of evidence at a hearing as

required by Section 41.67(d);

(14) the postponement of a hearing as required by

Section 41.66(h);

(15) conflicts of interest;

(16) the process for the administration of

applications for membership on an appraisal review board; and

(17) any other matter related to fair and efficient

appraisal review board hearings.

(1) categorize appraisal districts based on the size

of the district, the number of protests filed in the district, or

similar characteristics; and

(2) develop different model hearing procedures for

different categories of districts.

(d) An appraisal review board shall follow the model hearing

procedures prepared by the board [~~comptroller~~] when establishing

its procedures for hearings as required by Section 41.66(a).

(e) The board [~~comptroller~~] shall prescribe the contents of

a survey form for the purpose of providing the public a reasonable

opportunity to offer comments and suggestions concerning the

appraisal review board established for an appraisal district. The

survey form must permit a person to offer comments and suggestions

concerning the matters listed in Subsection (b) or any other matter

related to the fairness and efficiency of the appraisal review

board. The survey form, together with instructions for completing

the form and submitting the form, shall be provided to each property

owner at or before each hearing on a protest conducted by an

appraisal review board. The appraisal office may provide clerical

assistance to the board [~~comptroller~~] for purposes of the

implementation of this subsection, including assistance in

providing and receiving the survey form. The board [~~comptroller~~],

or an appraisal office providing clerical assistance to the board

[~~comptroller~~], may provide for the provision and submission of

survey forms electronically.

(f) The board [~~comptroller~~] shall issue an annual report

summarizing the survey forms submitted by property owners

concerning each appraisal review board. The report may not

disclose the identity of a person who submits a survey form.

Sec. 5.12. PERFORMANCE AUDIT OF APPRAISAL DISTRICT. (a)

The board [~~comptroller~~] shall audit the performance of an appraisal

district if one or more of the following conditions exist according

to each of two consecutive studies conducted by the board

[~~comptroller~~] under Section 5.10, regardless of whether the

prescribed condition or conditions that exist are the same for each

of those studies:

(1) the overall median level of appraisal for all

property in the district for which the board [~~comptroller~~]

determines a median level of appraisal is less than 0.75;

(2) the coefficient of dispersion around the overall

median level of appraisal of the properties used to determine the

overall median level of appraisal for all property in the district

for which the board [~~comptroller~~] determines a median level of

appraisal exceeds 0.30; or

(3) the difference between the median levels of

appraisal for any two classes of property in the district for which

the board [~~comptroller~~] determines a median level of appraisal is

more than 0.45.

(b) At the written request of the governing bodies of a

majority of the taxing units participating in an appraisal district

or of a majority of the taxing units entitled to vote on the

appointment of appraisal district directors, the board

[~~comptroller~~] shall audit the performance of the appraisal

district. The governing bodies may request a general audit of the

performance of the appraisal district or may request an audit of

only one or more particular duties, practices, functions,

departments, or other appraisal district matters.

percent of the number of accounts or parcels of property in an

appraisal district belonging to a single class of property, if the

class constitutes at least five percent of the appraised value of

taxable property within the district in the preceding year, or at

the written request of the owners of property representing not less

than 10 percent of the appraised value of all property in the

district belonging to a single class of property, if the class

constitutes at least five percent of the appraised value of taxable

property in the district in the preceding year, the board

[~~comptroller~~] shall audit the performance of the appraisal

district. The property owners may request a general audit of the

performance of the appraisal district or may request an audit of

only one or more particular duties, practices, functions,

departments, or other appraisal district matters. A property owner

may authorize an agent to sign a request for an audit under this

subsection on the property owner's behalf. The board [~~comptroller~~]

may require a person signing a request for an audit to provide proof

that the person is entitled to sign the request as a property owner

or as the agent of a property owner.

(d) A request for a performance audit of an appraisal

district may not be made under Subsection (b) or (c) if according to

each of the two most recently published studies conducted by the

board [~~comptroller~~] under Section 5.10:

(1) the overall median level of appraisal for all

property in the district for which the board [~~comptroller~~]

determines a median level of appraisal is more than 0.90 and less

than 1.10;

(2) the coefficient of dispersion around the overall

median level of appraisal of the properties used to determine the

overall median level of appraisal for all property in the district

for which the board [~~comptroller~~] determines a median level of

appraisal is less than 0.15; and

(3) the difference between the highest and lowest

median levels of appraisal in the district for the classes of

property for which the board [~~comptroller~~] determines a median

level of appraisal is less than 0.20.

(e) A request for a performance audit of an appraisal

district may not be made under Subsection (b) or (c):

(1) during the two years immediately following the

publication of the second of two consecutive studies according to

which the board [~~comptroller~~] is required to conduct an audit of the

district under Subsection (a);

(2) during the year immediately following the date the

results of an audit of the district conducted by the board

[~~comptroller~~] under Subsection (a) are reported to the chief

appraiser of the district; or

(3) during a year in which the board [~~comptroller~~] is

conducting a review of the district under Section 5.102.

(f) For purposes of this section, "class of property" means

a major kind of property for which the board [~~comptroller~~]

determines a median level of appraisal under Section 5.10 [~~of this~~

~~code~~].

(h) In addition to the performance audits required by

Subsections (a), (b), and (c) and the review of appraisal standards

required by Section 5.102, the board [~~comptroller~~] may audit an

appraisal district to analyze the effectiveness and efficiency of

the policies, management, and operations of the appraisal district.

The results of the audit shall be delivered in a report that details

the board's [~~comptroller's~~] findings and recommendations for

improvement to the appraisal district's chief appraiser and board

of directors and the governing body of each taxing unit

participating in the appraisal district. The board [~~comptroller~~]

may require reimbursement by the appraisal district for some or all

of the costs of the audit, not to exceed the actual costs associated

with conducting the audit.

Sec. 5.13. ADMINISTRATION OF PERFORMANCE AUDITS. (a) The

board [~~comptroller~~] shall complete an audit required by Section

5.12(a) within two years after the date of the publication of the

second of the two studies the results of which required the audit to

be conducted. The board [~~comptroller~~] shall complete an audit

requested under Section 5.12(b) or (c) as soon as practicable after

the request is made.

(b) The board [~~comptroller~~] may not audit the financial

condition of an appraisal district or a district's tax collections.

If the request is for an audit limited to one or more particular

matters, the board's [~~comptroller's~~] audit must be limited to those

matters.

for the performance audit of an appraisal district. Before

approving an audit plan, the board [~~comptroller~~] must provide any

interested person an opportunity to appear before the board

[~~comptroller~~] and to comment on the proposed plan. Not later than

the 20th day before the date the board [~~comptroller~~] considers the

plan for an appraisal district performance audit, the board

[~~comptroller~~] must notify the presiding officer of the appraisal

district board of directors that the board [~~comptroller~~] intends to

consider the plan. The notice must include the time, date, and place

of the meeting to consider the plan. Immediately after receiving

the notice, the presiding officer shall deliver a copy of the notice

to the other members of the appraisal district board of directors.

(d) In conducting a general audit, the board [~~comptroller~~]

shall consider and report on:

(1) the extent to which the district complies with

applicable law or generally accepted standards of appraisal or

other relevant practice;

(2) the uniformity and level of appraisal of major

kinds of property and the cause of any significant deviations from

ideal uniformity and equality of appraisal of major kinds of

property;

(3) duplication of effort and efficiency of operation;

(4) the general efficiency, quality of service, and

qualification of appraisal district personnel; and

(5) except as otherwise provided by Subsection (b) of

this section, any other matter included in the request for the

audit.

(e) In conducting the audit, the board [~~comptroller~~] is

entitled to have access at all times to the books, appraisal and

other records, reports, vouchers, and other information, whether

confidential or not, of the appraisal district. The board

[~~comptroller~~] may require the assistance of appraisal district

officers or employees that does not interfere significantly with

the ordinary functions of the appraisal district. The board

[~~comptroller~~] may rely on any analysis it has made previously

relating to the appraisal district if the previous analysis is

useful or relevant to the audit.

(f) The board [~~comptroller~~] shall report the results of its

audit in writing to the governing body of each taxing unit that

participates in the appraisal district, to the chief appraiser, and

to the presiding officer of the appraisal district board of

directors. If the audit was requested under Section 5.12(c) [of

~~this code~~], the board [~~comptroller~~] shall also provide a report to a

representative of the property owners who requested the audit.

(g) If the audit is required or requested under Section

5.12(a) or (b) [~~of this code~~], the appraisal district shall

reimburse the board [~~comptroller~~] for the costs incurred in

conducting the audit and making its report of the audit. The costs

shall be allocated among the taxing units participating in the

district in the same manner as an operating expense of the district.

If the audit is requested under Section 5.12(c) [~~of this code~~], the

property owners who requested the audit shall reimburse the board

[~~comptroller~~] for the costs incurred in conducting the audit and

making its report of the audit and shall allocate the costs among

those property owners in proportion to the appraised value of each

property owner's property in the district or on such other basis as

the property owners may agree. If the audit confirms that the

median level of appraisal for a class of property exceeds 1.10 or

that the median level of appraisal for a class of property varies at

least 10 percent from the overall median level of appraisal for all

property in the district for which the board [~~comptroller~~]

determines a median level of appraisal, within 90 days after the

date a request is made by the property owners for reimbursement the

appraisal district shall reimburse the property owners who

requested the audit for the amount paid to the board [~~comptroller~~]

for the costs incurred in conducting the audit and making the

report. Before conducting an audit under Section 5.12(c), the

board [~~comptroller~~] may require the requesting taxing units or

property owners to provide the board [~~comptroller~~] with a bond,

deposit, or other financial security sufficient to cover the

expected costs of conducting the audit and making the report. For

purposes of this subsection, "costs" include expenses related to

salaries, professional fees, travel, reproduction or other

printing services, and consumable supplies that are directly

attributable to conducting the audit.

(h) At any time after the request for an audit is made, the

board [~~comptroller~~] may discontinue the audit in whole or in part if

requested to do so by:

(1) the governing bodies of a majority of the taxing

units participating in the district, if the audit was requested by a

majority of those units;

(2) the governing bodies of a majority of the taxing

units entitled to vote on the appointment of appraisal district

directors, if the audit was requested by a majority of those units;

(3) if the audit was requested under Section 5.12(c)

[~~of this code~~], by the taxpayers who requested the audit.

(i) The board [~~comptroller~~] by rule may adopt procedures,

audit standards, and forms for the administration of the

performance audits.

Sec. 5.14. PUBLIC ACCESS, INFORMATION, AND COMPLAINTS. (a)

The board [~~comptroller~~] shall develop and implement policies that

provide the public with a reasonable opportunity to submit

information on any property tax issue under the jurisdiction of the

board [~~comptroller~~].

(b) The board [~~comptroller~~] shall prepare and maintain a

written plan that describes how a person who does not speak English

or who has a physical, mental, or developmental disability may be

provided reasonable access to the board's [~~comptroller's~~] programs.

public interest describing the property tax functions of the board

[~~office of the comptroller~~] and the board's [~~comptroller's~~]

procedures by which complaints are filed with and resolved by the

board [~~comptroller~~]. The board [~~comptroller~~] shall make the

information available to the public and appropriate state agencies.

(d) If a written complaint is filed with the board

[~~comptroller~~] that the board [~~comptroller~~] has authority to

resolve, the board [~~comptroller~~], at least quarterly and until

final disposition of the complaint, shall notify the parties to the

complaint of the status of the complaint unless notice would

jeopardize an undercover investigation.

(e) The board [~~comptroller~~] shall keep an information file

about each complaint filed with the board [~~comptroller~~] that the

board [~~comptroller~~] has authority to resolve.

Sec. 5.16. ADMINISTRATIVE PROVISIONS. (a) The board

[~~comptroller~~] may inspect the records or other materials of an

appraisal office or taxing unit, including the relevant records and

materials in the possession or control of a consultant, advisor, or

expert hired by the appraisal office or taxing unit, for the purpose

of:

(1) establishing, reviewing, or evaluating the value

of or an appraisal of any property; or

(2) conducting a study, review, or audit required by

Section 5.10, [or] 5.102, or 5.23 [~~by Section 403.302, Government~~

~~Code~~].

(b) On request of the board [~~comptroller~~], the chief

appraiser or administrative head of the taxing unit shall produce

the materials in the form and manner prescribed by the board

[~~comptroller~~].

SECTION 1.08. Subchapter M, Chapter 403, Government Code,

is transferred to Chapter 5, Tax Code, redesignated as Subchapter

B, and amended to read as follows:

SUBCHAPTER B [M]. STUDY OF SCHOOL DISTRICT PROPERTY VALUES

Sec. 5.21 [~~403.301~~]. PURPOSE. It is the policy of this

state to ensure equity among taxpayers in the burden of school

district taxes and among school districts in the distribution of

state financial aid for public education. The purpose of this

subchapter is to promote that policy by providing for uniformity in

local property appraisal practices and procedures and in the

determination of property values for schools in order to distribute

state funding equitably.

Sec. 5.22 [~~403.3011~~]. DEFINITIONS. In this subchapter:

(1) "Study" means a study conducted under Section 5.23

[~~403.302~~].

(2) "Eligible school district" means a school district

for which the board [~~comptroller~~] has determined the following:

(A) in the most recent study, the local value is

invalid under Section 5.23(c) [~~403.302(c)~~] and does not exceed the

state value for the school district determined in the study;

(B) in the two studies preceding the most recent

study, the school district's local value was valid under Section

5.23(c) [~~403.302(c)~~];

value of all of the categories of property sampled by the board

[~~comptroller~~] is not less than 90 percent of the lower limit of the

margin of error as determined by the board [~~comptroller~~] of the

aggregate value as determined by the board [~~comptroller~~] of all of

the categories of property sampled by the board [~~comptroller~~]; and

(D) the appraisal district that appraises

property for the school district was in compliance with the scoring

requirement of the board's [~~comptroller's~~] most recent review of

the appraisal district conducted under Section 5.102[~~, Tax Code~~].

(3) "Local value" means the market value of property

in a school district as determined by the appraisal district that

appraises property for the school district, less the total amounts

and values listed in Section 5.23(d) [~~403.302(d)~~] as determined by

that appraisal district.

(4) "State value" means the value of property in a

school district as determined in a study.

Sec. 5.23 [~~403.302~~]. DETERMINATION OF SCHOOL DISTRICT

PROPERTY VALUES. (a) The board [~~comptroller~~] shall conduct a study

using comparable sales and generally accepted auditing and sampling

techniques to determine the total taxable value of all property in

each school district. The study shall determine the taxable value

of all property and of each category of property in the district and

the productivity value of all land that qualifies for appraisal on

the basis of its productive capacity and for which the owner has

applied for and received a productivity appraisal. The board

[~~comptroller~~] shall make appropriate adjustments in the study to

account for actions taken under Chapter 41, Education Code.

(a-1) The board [~~comptroller~~] shall conduct a study:

(1) at least every two years in each school district

for which the most recent study resulted in a determination by the

board [~~comptroller~~] that the school district's local value was

valid; and

(2) each year in a school district for which the most

recent study resulted in a determination by the board [~~comptroller~~]

that the school district's local value was not valid.

(a-2) If in any year the board [~~comptroller~~] does not

conduct a study, the school district's local value for that year is

considered to be valid.

(b) In conducting the study, the board [~~comptroller~~] shall

determine the taxable value of property in each school district:

(1) using, if appropriate, samples selected through

generally accepted sampling techniques;

(2) according to generally accepted standard

valuation, statistical compilation, and analysis techniques;

(3) ensuring that different levels of appraisal on

sold and unsold property do not adversely affect the accuracy of the

study; and

(4) ensuring that different levels of appraisal

resulting from protests determined under Section 41.43[~~, Tax Code,~~]

are appropriately adjusted in the study.

determines that the local value for a school district is valid, the

local value is presumed to represent taxable value for the school

district. In the absence of that presumption, taxable value for a

school district is the state value for the school district

determined by the board [~~comptroller~~] under Subsections (a) and (b)

unless the local value exceeds the state value, in which case the

taxable value for the school district is the district's local

value. In determining whether the local value for a school district

is valid, the board [~~comptroller~~] shall use a margin of error that

does not exceed five percent unless the board [~~comptroller~~]

determines that the size of the sample of properties necessary to

make the determination makes the use of such a margin of error not

feasible, in which case the board [~~comptroller~~] may use a larger

margin of error.

(c-1) This subsection applies only to a school district

whose central administrative office is located in a county with a

population of 9,000 or less and a total area of more than 6,000

square miles. If after conducting the study for a tax year the

board [~~comptroller~~] determines that the local value for a school

district is not valid, the board [~~comptroller~~] shall adjust the

taxable value determined under Subsections (a) and (b) as follows:

(1) for each category of property sampled and tested

by the board [~~comptroller~~] in the school district, the board

[~~comptroller~~] shall use the weighted mean appraisal ratio

determined by the study, unless the ratio is more than four

percentage points lower than the weighted mean appraisal ratio

determined by the board [~~comptroller~~] for that category of property

in the immediately preceding study, in which case the board

[~~comptroller~~] shall use the weighted mean appraisal ratio

determined in the immediately preceding study minus four percentage

points;

(2) the board [~~comptroller~~] shall use the category

weighted mean appraisal ratios as adjusted under Subdivision (1) to

establish a value estimate for each category of property sampled

and tested by the board [~~comptroller~~] in the school district; and

(3) the value estimates established under Subdivision

(2), together with the local tax roll value for any categories not

sampled and tested by the board [~~comptroller~~], less total

deductions determined by the board [~~comptroller~~], determine the

taxable value for the school district.

(d) For the purposes of this section, "taxable value" means

the market value of all taxable property less:

(1) the total dollar amount of any residence homestead

exemptions lawfully granted under Section 11.13(b) or (c)[~~, Tax~~

~~Code,~~] in the year that is the subject of the study for each school

district;

(2) one-half of the total dollar amount of any

residence homestead exemptions granted under Section 11.13(n)[,

~~Tax Code,~~] in the year that is the subject of the study for each

school district;

(3) the total dollar amount of any exemptions granted

before May 31, 1993, within a reinvestment zone under agreements

authorized by Chapter 312[~~, Tax Code~~];

(4) subject to Subsection (e), the total dollar amount

of any captured appraised value of property that:

(A) is within a reinvestment zone created on or

before May 31, 1999, or is proposed to be included within the

boundaries of a reinvestment zone as the boundaries of the zone and

the proposed portion of tax increment paid into the tax increment

fund by a school district are described in a written notification

provided by the municipality or the board of directors of the zone

to the governing bodies of the other taxing units in the manner

provided by former Section 311.003(e)[~~, Tax Code,~~] before May 31,

1999, and within the boundaries of the zone as those boundaries

existed on September 1, 1999, including subsequent improvements to

the property regardless of when made;

(B) generates taxes paid into a tax increment

fund created under Chapter 311[~~, Tax Code,~~] under a reinvestment

zone financing plan approved under Section 311.011(d)[~~, Tax Code,~~]

on or before September 1, 1999; and

Chapter 311[~~, Tax Code~~];

(5) the total dollar amount of any captured appraised

value of property that:

(A) is within a reinvestment zone:

(i) created on or before December 31, 2008,

by a municipality with a population of less than 18,000; and

(ii) the project plan for which includes

the alteration, remodeling, repair, or reconstruction of a

structure that is included on the National Register of Historic

Places and requires that a portion of the tax increment of the zone

be used for the improvement or construction of related facilities

or for affordable housing;

(B) generates school district taxes that are paid

into a tax increment fund created under Chapter 311[~~, Tax Code~~]; and

Chapter 311[~~, Tax Code~~];

(6) the total dollar amount of any exemptions granted

under Section 11.251 or 11.253[~~, Tax Code~~];

(7) the difference between the board's [~~comptroller's~~]

estimate of the market value and the productivity value of land that

qualifies for appraisal on the basis of its productive capacity,

except that the productivity value estimated by the board

[~~comptroller~~] may not exceed the fair market value of the land;

(8) the portion of the appraised value of residence

homesteads of individuals who receive a tax limitation under

Section 11.26[~~, Tax Code,~~] on which school district taxes are not

imposed in the year that is the subject of the study, calculated as

if the residence homesteads were appraised at the full value

required by law;

(9) a portion of the market value of property not

otherwise fully taxable by the district at market value because of:

(A) action required by statute or the

constitution of this state, other than Section 11.311[~~, Tax Code,~~]

that, if the tax rate adopted by the district is applied to it,

produces an amount equal to the difference between the tax that the

district would have imposed on the property if the property were

fully taxable at market value and the tax that the district is

actually authorized to impose on the property, if this subsection

does not otherwise require that portion to be deducted; or

(B) action taken by the district under Subchapter

B or C, Chapter 313[~~, Tax Code,~~] before the expiration of the

subchapter;

(10) the market value of all tangible personal

property, other than manufactured homes, owned by a family or

individual and not held or used for the production of income;

(11) the appraised value of property the collection of

delinquent taxes on which is deferred under Section 33.06[~~, Tax~~

~~Code~~];

(12) the portion of the appraised value of property

the collection of delinquent taxes on which is deferred under

Section 33.065[~~, Tax Code~~]; and

(13) the amount by which the market value of a

residence homestead to which Section 23.23[~~, Tax Code,~~] applies

exceeds the appraised value of that property as calculated under

that section.

(d-1) For purposes of Subsection (d), a residence homestead

that receives an exemption under Section 11.131 or 11.132[~~, Tax~~

~~Code,~~] in the year that is the subject of the study is not

considered to be taxable property.

(e) The total dollar amount deducted in each year as

required by Subsection (d)(4) in a reinvestment zone created after

January 1, 1999, may not exceed the captured appraised value

estimated for that year as required by Section 311.011(c)(8)[~~, Tax~~

~~Code,~~] in the reinvestment zone financing plan approved under

Section 311.011(d)[~~, Tax Code,~~] before September 1, 1999. The

number of years for which the total dollar amount may be deducted

under Subsection (d)(4) shall for any zone, including those created

on or before January 1, 1999, be limited to the duration of the zone

as specified as required by Section 311.011(c)(9)[~~, Tax Code,~~] in

the reinvestment zone financing plan approved under Section

311.011(d)[~~, Tax Code,~~] before September 1, 1999. The total dollar

amount deducted under Subsection (d)(4) for any zone, including

those created on or before January 1, 1999, may not be increased by

any reinvestment zone financing plan amendments that occur after

August 31, 1999. The total dollar amount deducted under Subsection

(d)(4) for any zone, including those created on or before January 1,

1999, may not be increased by a change made after August 31, 1999,

in the portion of the tax increment retained by the school district.

(e-1) This subsection applies only to a reinvestment zone

created by a municipality that has a population of 70,000 or less

and is located in a county in which all or part of a military

installation is located. Notwithstanding Subsection (e), if on or

after January 1, 2017, the municipality adopts an ordinance

designating a termination date for the zone that is later than the

termination date designated in the ordinance creating the zone, the

number of years for which the total dollar amount may be deducted

under Subsection (d)(4) is limited to the duration of the zone as

determined under Section 311.017[~~, Tax Code~~].

(f) The study shall determine the values as of January 1 of

each year:

(1) for a school district in which a study was

conducted according to the results of the study; and

(2) for a school district in which a study was not

conducted according to the market value determined by the appraisal

district that appraises property for the district, less the amounts

specified by Subsection (d).

(g) The board [~~comptroller~~] shall publish preliminary

findings, listing values by district, before February 1 of the year

following the year of the study. Preliminary findings shall be

delivered to each school district and shall be certified to the

commissioner of education.

(h) On request of the commissioner of education or a school

district, the board [~~comptroller~~] may audit the total taxable value

of property in a school district and may revise the study findings.

The request for audit is limited to corrections and changes in a

school district's appraisal roll that occurred after preliminary

certification of the study findings by the board [~~comptroller~~].

Except as otherwise provided by this subsection, the request for

audit must be filed with the board [~~comptroller~~] not later than the

third anniversary of the date of the final certification of the

study findings. The request for audit may be filed not later than

the first anniversary of the date the chief appraiser certifies a

change to the appraisal roll if the chief appraiser corrects the

appraisal roll under Section 25.25 or 42.41[~~, Tax Code,~~] and the

change results in a material reduction in the total taxable value of

property in the school district. The board [~~comptroller~~] shall

certify the findings of the audit to the commissioner of education.

(i) If the board [~~comptroller~~] determines in the study that

the market value of property in a school district as determined by

the appraisal district that appraises property for the school

district, less the total of the amounts and values listed in

Subsection (d) as determined by that appraisal district, is valid,

the board [~~comptroller~~], in determining the taxable value of

property in the school district under Subsection (d), shall for

purposes of Subsection (d)(13) subtract from the market value as

determined by the appraisal district of residence homesteads to

which Section 23.23[~~, Tax Code,~~] applies the amount by which that

amount exceeds the appraised value of those properties as

calculated by the appraisal district under Section 23.23[~~, Tax~~

~~Code~~]. If the board [~~comptroller~~] determines in the study that the

market value of property in a school district as determined by the

appraisal district that appraises property for the school district,

less the total of the amounts and values listed in Subsection (d) as

determined by that appraisal district, is not valid, the board

[~~comptroller~~], in determining the taxable value of property in the

school district under Subsection (d), shall for purposes of

Subsection (d)(13) subtract from the market value as estimated by

the board [~~comptroller~~] of residence homesteads to which Section

23.23[~~, Tax Code,~~] applies the amount by which that amount exceeds

the appraised value of those properties as calculated by the

appraisal district under Section 23.23[~~, Tax Code~~].

(j) For purposes of Chapter 42, Education Code, the board

[~~comptroller~~] shall certify to the commissioner of education:

(1) a final value for each school district computed on

a residence homestead exemption under Section 1-b(c), Article VIII,

Texas Constitution, of $5,000;

(2) a final value for each school district computed

on:

(A) a residence homestead exemption under

Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and

(B) the effect of the additional limitation on

tax increases under Section 1-b(d), Article VIII, Texas

Constitution, as proposed by H.J.R. No. 4, 75th Legislature,

Regular Session, 1997; and

(3) a final value for each school district computed on

the effect of the reduction of the limitation on tax increases to

reflect any reduction in the school district tax rate as provided by

Section 11.26(a-1), (a-2), or (a-3), [~~Tax Code,~~] as applicable.

(k) For purposes of Section 42.2522, Education Code, the

board [~~comptroller~~] shall certify to the commissioner of education:

(1) a final value for each school district computed

without any deduction for residence homestead exemptions granted

under Section 11.13(n)[~~, Tax Code~~]; and

(2) a final value for each school district computed

after deducting one-half the total dollar amount of residence

homestead exemptions granted under Section 11.13(n)[~~, Tax Code~~].

(l) If after conducting the study for a year the board

[~~comptroller~~] determines that a school district is an eligible

school district, for that year and the following year the taxable

value for the school district is the district's local value.

(m) Subsection (d)(9) does not apply to property that was

the subject of an application under Subchapter B or C, Chapter 313,

[~~Tax Code,~~] made after May 1, 2009, that the board or comptroller,

as applicable, recommended should be disapproved.

(m-1) The State Property Tax Board's [~~Comptroller's~~]

Property Value Study Advisory Committee is created. The committee

is composed of:

(1) one member of the house of representatives,

appointed by the speaker of the house of representatives;

(2) one member of the senate, appointed by the

lieutenant governor;

(3) two members who represent appraisal districts,

appointed by the board chair [~~comptroller~~];

(4) two members who represent school districts,

appointed by the board chair [~~comptroller~~]; and

(5) three members appointed by the board chair

[~~comptroller~~] who are residents of this state and are school

district taxpayers or have expertise in school district taxation or

ratio studies.

(n) Chapter 2110, Government Code, does not apply to the

size, composition, or duration of the State Property Tax Board's

[~~Comptroller's~~] Property Value Study Advisory Committee.

(o) The board [~~comptroller~~] shall adopt rules governing the

conduct of the study after consultation with the board's

[~~Comptroller's~~] Property Value Study Advisory Committee.

Sec. 5.24 [~~403.303~~]. PROTEST. (a) A school district or a

property owner whose property is included in the study under

Section 5.23 [~~403.302~~] and whose tax liability on the property is

$100,000 or more may protest the board's [~~comptroller's~~] findings

under Section 5.23(g) or (h) [~~403.302(g) or (h)~~] by filing a

petition with the board [~~comptroller~~]. The petition must be filed

not later than the 40th day after the date on which the board's

[~~comptroller's~~] findings are certified to the commissioner of

education and must specify the grounds for objection and the value

claimed to be correct by the school district or property owner.

(b) After receipt of a petition, the board [~~comptroller~~]

shall hold a hearing. The board [~~comptroller~~] has the burden to

prove the accuracy of the findings. Until a final decision is made

by the board [~~comptroller~~], the taxable value of property in the

district is determined, with respect to property subject to the

protest, according to the value claimed by the school district or

property owner, except that the value to be used while a final

decision is pending may not be less than the appraisal roll value

for the year of the study. If after a hearing the board

[~~comptroller~~] concludes that the findings should be changed, the

board [~~comptroller~~] shall order the appropriate changes and shall

certify to the commissioner of education the changes in the values

of the school district that brought the protest, the values of the

school district named by the property owner who brought the

protest, or, if the board [~~comptroller~~] by rule allows an appraisal

district to bring a protest, the values of the school district named

by the appraisal district that brought the protest. The board

[~~comptroller~~] may not order a change in the values of a school

district as a result of a protest brought by another school

district, a property owner in the other school district, or an

appraisal district that appraises property for the other school

district. The board [~~comptroller~~] shall complete all protest

hearings and certify all changes as necessary to comply with

Chapter 42, Education Code. A hearing conducted under this

subsection is not a contested case for purposes of Section

2001.003, Government Code.

governing the conduct of protest hearings. The rules shall provide

each protesting school district and property owner with the

requirements for submitting a petition initiating a protest and

shall provide each protesting school district and property owner

with adequate notice of a hearing, an opportunity to present

evidence and oral argument, and notice of the board's

[~~comptroller's~~] decision on the hearing.

(d) A protesting school district may appeal a determination

of a protest by the board [~~comptroller~~] to a district court of

Travis County by filing a petition with the court. An appeal must

be filed not later than the 30th day after the date the school

district receives notification of a final decision on a protest.

Review is conducted by the court sitting without a jury. The court

shall remand the determination to the board [~~comptroller~~] if on the

review the court discovers that substantial rights of the school

district have been prejudiced, and that:

(1) the board [~~comptroller~~] has acted arbitrarily and

without regard to the facts; or

(2) the finding of the board [~~comptroller~~] is not

reasonably supported by substantial evidence introduced before the

court.

(e) If, in a hearing under Subsection (b), the board

[~~comptroller~~] has not heard the case or read the record, the

decision may not be made until a proposal for decision is served on

each party and an opportunity to file exceptions is afforded to each

party adversely affected. If exceptions are filed, an opportunity

must be afforded to all other parties to file replies to the

exceptions. The proposal for decision must contain a statement of

the reasons for the proposed decision, prepared by the person who

conducted the hearing or by a person who has read the record. The

proposal for decision may be amended pursuant to the exceptions or

replies submitted without again being served on the parties. The

parties by written stipulation may waive compliance with this

subsection. The board [~~comptroller~~] may adopt rules to implement

this subsection.

Sec. 5.25 [~~403.304~~]. COOPERATION WITH BOARD [~~COMPTROLLER~~];

CONFIDENTIALITY. (a) A school district, appraisal district, or

other governmental entity in this state shall promptly comply with

an oral or written request from the board [~~comptroller~~] for

information to be used in conducting a study, including information

that is made confidential by Chapter 552, Government Code [~~of this~~

~~code~~], Section 22.27 of this code, [~~Tax Code,~~] or another law of

this state.

(a-1) All information the board [~~comptroller~~] obtains from

a person, other than a government or governmental subdivision or

agency, under an assurance that the information will be kept

confidential, in the course of conducting a study is confidential

and may not be disclosed except as provided in Subsection (b).

(b) Information made confidential by this section may be

disclosed:

(1) in a judicial or administrative proceeding

pursuant to a lawful subpoena;

(2) to the person who gave the information to the board

[~~comptroller~~]; or

(3) for statistical purposes if in a form that does not

identify specific property or a specific property owner.

ARTICLE 2. TRANSFER OF DUTIES AND CONFORMING AMENDMENTS

SECTION 2.01. Sections 1.085(e), (f), and (g), Tax Code,

are amended to read as follows:

(e) The State Property Tax Board [~~comptroller~~] by rule:

(1) shall prescribe acceptable media, formats,

content, and methods for the electronic transmission of notices

required by Section 25.19; and

(2) may prescribe acceptable media, formats, content,

and methods for the electronic transmission of other notices,

renditions, and applications.

(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

State Property Tax Board [~~comptroller~~] under Subsection (e). If

the board [~~comptroller~~] has not prescribed the media, format,

content, and method applicable to the communication, the chief

appraiser may determine the medium, format, content, and method to

be used.

(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 if the

appraisal district is located in a county that has a population of

more than 200,000. If the chief appraiser must enter into an

agreement under this subsection, the chief appraiser shall deliver

the notice in accordance with an electronic medium, format,

content, and method prescribed by the State Property Tax Board

[~~comptroller~~] under Subsection (e). If the board [~~comptroller~~] has

not prescribed the media, format, content, and method applicable to

the notice, the chief appraiser may determine the medium, format,

content, and method to be used.

SECTION 2.02. Sections 1.111(b), (e), and (h), Tax Code,

are amended to read as follows:

(b) The designation of an agent must be made by written

authorization on a form prescribed by the State Property Tax Board

[~~comptroller~~] under Subsection (h) and signed by the owner, a

property manager authorized to designate agents for the owner, or

another person authorized to act on behalf of the owner other than

the person being designated as agent, and must clearly indicate

that the person is authorized to act on behalf of the property owner

in property tax matters relating to the property or the property

owner. The designation may authorize the agent to represent the

owner in all property tax matters or in specific property tax

matters as identified in the designation. The designation does not

take effect with respect to an appraisal district or a taxing unit

participating in the appraisal district until a copy of the

designation is filed with the appraisal district. Each appraisal

district established for a county having a population of 500,000 or

more shall implement a system that allows a designation to be signed

and filed electronically.

(e) An agreement between a property owner or the owner's

agent and the chief appraiser is final if the agreement relates to a

matter:

(1) which may be protested to the appraisal review

board or on which a protest has been filed but not determined by the

appraisal review board; or

(2) which may be corrected under Section 25.25 or on

which a motion for correction under that section has been filed but

not determined by the appraisal review board.

(h) The State Property Tax Board [~~comptroller~~] shall

prescribe forms and adopt rules to facilitate compliance with this

section. The board [~~comptroller~~] shall include on any form used for

designation of an agent for a single-family residential property in

which the property owner resides the following statement in

boldfaced type:

"In some cases, you may want to contact your appraisal district or

other local taxing units for free information and/or forms

concerning your case before designating an agent."

SECTION 2.03. Sections 6.05(c) and (i), Tax Code, are

amended to read as follows:

appraisal office. Except as provided by Section 6.0501, the chief

appraiser is appointed by and serves at the pleasure of the

appraisal district board of directors. If a taxing unit performs

the duties of the appraisal office pursuant to a contract, the

assessor for the unit is the chief appraiser. To be eligible to be

appointed or serve as a chief appraiser, a person must be certified

as a registered professional appraiser under Section 1151.160,

Occupations Code, possess an MAI professional designation from the

Appraisal Institute, or possess an Assessment Administration

Specialist (AAS), Certified Assessment Evaluator (CAE), or

Residential Evaluation Specialist (RES) professional designation

from the International Association of Assessing Officers. A person

who is eligible to be appointed or serve as a chief appraiser by

having a professional designation described by this subsection must

become certified as a registered professional appraiser under

Section 1151.160, Occupations Code, not later than the fifth

anniversary of the date the person is appointed or begins to serve

as chief appraiser. A chief appraiser who is not eligible to be

appointed or serve as chief appraiser may not perform an action

authorized or required by law to be performed by a chief appraiser,

including the preparation, certification, or submission of any part

of the appraisal roll. Not later than January 1 of each year, a

chief appraiser shall notify the State Property Tax Board

[~~comptroller~~] in writing that the chief appraiser is either

eligible to be appointed or serve as the chief appraiser or not

eligible to be appointed or serve as the chief appraiser.

(i) To ensure adherence with generally accepted appraisal

practices, the board of directors of an appraisal district shall

develop biennially a written plan for the periodic reappraisal of

all property within the boundaries of the district according to the

requirements of Section 25.18 and shall hold a public hearing to

consider the proposed plan. Not later than the 10th day before the

date of the hearing, the secretary of the board shall deliver to the

presiding officer of the governing body of each taxing unit

participating in the district a written notice of the date, time,

and place for the hearing. Not later than September 15 of each

even-numbered year, the board shall complete its hearings, make any

amendments, and by resolution finally approve the plan. Copies of

the approved plan shall be distributed to the presiding officer of

the governing body of each taxing unit participating in the

district and to the State Property Tax Board [~~comptroller~~] within

60 days of the approval date.

SECTION 2.04. Section 6.0501, Tax Code, is amended to read

as follows:

Sec. 6.0501. APPOINTMENT OF ELIGIBLE CHIEF APPRAISER BY

STATE PROPERTY TAX BOARD [~~COMPTROLLER~~]. (a) The State Property Tax

Board [~~comptroller~~] shall appoint a person eligible to be a chief

appraiser under Section 6.05(c) or a person who has previously been

appointed or served as a chief appraiser to perform the duties of

chief appraiser for an appraisal district whose chief appraiser is

ineligible to serve.

(b) A chief appraiser appointed under this section serves

until the earlier of:

(1) the first anniversary of the date the State

Property Tax Board [~~comptroller~~] appoints the chief appraiser; or

(2) the date the board of directors of the appraisal

district:

(A) appoints a chief appraiser under Section

6.05(c); or

(B) contracts with an appraisal district or a

taxing unit to perform the duties of the appraisal office for the

district under Section 6.05(b).

determine the compensation of a chief appraiser appointed under

this section. A chief appraiser appointed under this section shall

determine the budget necessary for the adequate operation of the

appraisal office, subject to the approval of the State Property Tax

Board [~~comptroller~~]. The board of directors of the appraisal

district shall amend the budget as necessary to compensate the

appointed chief appraiser and fund the appraisal office as

determined under this subsection.

(d) An appraisal district that does not appoint a chief

appraiser or contract with an appraisal district or a taxing unit to

perform the duties of the appraisal office by the first anniversary

of the date the State Property Tax Board [~~comptroller~~] appoints a

chief appraiser shall contract with an appraisal district or a

taxing unit to perform the duties of the appraisal office or with a

qualified public or private entity to perform the duties of the

chief appraiser, subject to the approval of the State Property Tax

Board [~~comptroller~~].

SECTION 2.05. Sections 6.052(a) and (b), Tax Code, are

amended to read as follows:

(a) The board of directors for an appraisal district created

for a county with a population of more than 120,000 shall appoint a

taxpayer liaison officer who shall serve at the pleasure of the

board. The taxpayer liaison officer shall administer the public

access functions required by Sections 6.04(d), (e), and (f), and is

responsible for resolving disputes not involving matters that may

be protested under Section 41.41. In addition, the taxpayer

liaison officer is responsible for receiving, and compiling a list

of, comments and suggestions filed by the chief appraiser, a

property owner, or a property owner's agent concerning the matters

listed in Section 5.103(b) or any other matter related to the

fairness and efficiency of the appraisal review board established

for the appraisal district. The taxpayer liaison officer shall

forward to the State Property Tax Board [~~comptroller~~] comments and

suggestions filed under this subsection in the form and manner

prescribed by that board [~~the comptroller~~].

(b) The taxpayer liaison officer shall provide to the public

information and materials designed to assist property owners in

understanding the appraisal process, protest procedures, the

procedure for filing comments and suggestions under Subsection (a)

of this section or a complaint under Section 6.04(g), and other

matters. Information concerning the process for submitting

comments and suggestions to the State Property Tax Board

[~~comptroller~~] concerning an appraisal review board shall be

provided at each protest hearing.

SECTION 2.06. Section 6.412(c), Tax Code, is amended to

read as follows:

board if the person is a member of the board of directors, an

officer, or an employee of the appraisal district, is an employee or

member of the State Property Tax Board [~~comptroller~~], or is a member

of the governing body, an officer, or an employee of a taxing unit.

SECTION 2.07. Section 11.11(b), Tax Code, is amended to

read as follows:

(b) Land owned by the Permanent University Fund is taxable

for county purposes. Any notice required by Section 25.19 [~~of this~~

~~code~~] shall be sent to the State Property Tax Board [~~comptroller~~],

and the board [~~comptroller~~] shall appear on [in] behalf of the state

in any protest or appeal relating to taxation of Permanent

University Fund land.

SECTION 2.08. Section 11.135(g), Tax Code, is amended to

read as follows:

(g) The State Property Tax Board [~~comptroller~~] shall adopt

rules and forms to implement this section.

SECTION 2.09. Section 11.182(i), Tax Code, is amended to

read as follows:

(i) If any property owned by an organization receiving an

exemption under this section has been acquired or sold during the

preceding year, such organization shall file by March 31 of the

following year with the chief appraiser in the county in which the

relevant property is located, on a form promulgated by the State

Property Tax Board [~~comptroller of public accounts~~], a list of such

properties acquired or sold during the preceding year.

SECTION 2.10. Section 11.26(e), Tax Code, is amended to

read as follows:

(e) For each school district in an appraisal district, the

chief appraiser shall determine the portion of the appraised value

of residence homesteads of individuals on which school district

taxes are not imposed in a tax year because of the limitation on tax

increases imposed by this section. That portion is calculated by

determining the taxable value that, if multiplied by the tax rate

adopted by the school district for the tax year, would produce an

amount equal to the amount of tax that would have been imposed by

the school district on those residence homesteads if the limitation

on tax increases imposed by this section were not in effect, but

that was not imposed because of that limitation. The chief

appraiser shall determine that taxable value and certify it to the

State Property Tax Board [~~comptroller~~] as soon as practicable for

each tax year.

SECTION 2.11. Section 11.27(b), Tax Code, is amended to

read as follows:

(b) The State Property Tax Board [~~comptroller~~], with the

assistance of the Texas Energy and Natural Resources Advisory

Council, or its successor, shall develop guidelines to assist local

officials in the administration of this section.

SECTION 2.12. Sections 11.43(f) and (j), Tax Code, are

amended to read as follows:

(f) The State Property Tax Board [~~comptroller~~], in

prescribing the contents of the application form for each kind of

exemption, shall ensure that the form requires an applicant to

furnish the information necessary to determine the validity of the

exemption claim. The form must require an applicant to provide the

applicant's name and driver's license number, personal

identification certificate number, or social security account

number. If the applicant is a charitable organization with a

federal tax identification number, the form must allow the

applicant to provide the organization's federal tax identification

number in lieu of a driver's license number, personal

identification certificate number, or social security account

number. The board [~~comptroller~~] shall include on the forms a notice

of the penalties prescribed by Section 37.10, Penal Code, for

making or filing an application containing a false statement. The

board [~~comptroller~~] shall include, on application forms for

exemptions that do not have to be claimed annually, a statement

explaining that the application need not be made annually and that

if the exemption is allowed, the applicant has a duty to notify the

chief appraiser when the applicant's entitlement to the exemption

ends. In this subsection:

(1) "Driver's license" has the meaning assigned that

term by Section 521.001, Transportation Code.

(2) "Personal identification certificate" means a

certificate issued by the Department of Public Safety under

Subchapter E, Chapter 521, Transportation Code.

(j) In addition to the items required by Subsection (f), an

application for a residence homestead exemption prescribed by the

State Property Tax Board [~~comptroller~~] and authorized by Section

11.13 must:

(1) list each owner of the residence homestead and the

interest of each owner;

(2) state that the applicant does not claim an

exemption under that section on another residence homestead in this

state or claim a residence homestead exemption on a residence

homestead outside this state;

(3) state that each fact contained in the application

is true;

(4) include a copy of the applicant's driver's license

or state-issued personal identification certificate unless the

applicant:

(A) is a resident of a facility that provides

services related to health, infirmity, or aging; or

(B) is certified for participation in the address

confidentiality program administered by the attorney general under

Subchapter C, Chapter 56, Code of Criminal Procedure;

(5) state that the applicant has read and understands

the notice of the penalties required by Subsection (f); and

(6) be signed by the applicant.

SECTION 2.13. Section 11.44(c), Tax Code, is amended to

read as follows:

prescribe by rule the content of the explanation required by

Subsection (a) of this section, and shall require that each

exemption application form be printed and prepared:

(1) as a separate form from any other form; or

(2) on the front of the form if the form also provides

for other information.

SECTION 2.14. Section 11.48(b), Tax Code, is amended to

read as follows:

(b) Information made confidential by this section may be

disclosed:

(1) in a judicial or administrative proceeding

pursuant to a lawful subpoena;

(2) to the person who filed the application or to the

person's representative authorized in writing to receive the

information;

(3) to the State Property Tax Board [~~comptroller~~] and

the board's [~~comptroller's~~] employees authorized by the board

[~~comptroller~~] in writing to receive the information or to an

assessor or a chief appraiser if requested in writing;

(4) in a judicial or administrative proceeding

relating to property taxation to which the person who filed the

application is a party; or

(5) if and to the extent the information is required to

be included in a public document or record that the appraisal office

is required by law to prepare or maintain.

SECTION 2.15. Section 21.03(b), Tax Code, is amended to

read as follows:

(b) The State Property Tax Board [~~comptroller~~] shall adopt

rules:

(1) identifying the kinds of property subject to this

section; and

(2) establishing formulas for calculating the

proportion of total market value to be allocated to this state.

SECTION 2.16. Sections 21.031(e) and (f), Tax Code, are

amended to read as follows:

(e) To receive an allocation of value under this section, a

property owner must apply for the allocation on a form that

substantially complies with the form prescribed by the State

Property Tax Board [~~comptroller~~]. The application must be filed

with the chief appraiser for the district in which the property to

which the application applies is taxable before the approval of the

appraisal records by the appraisal review board as provided by

Section 41.12 [~~of this code~~].

(f) The State Property Tax Board [~~comptroller~~] shall

promulgate forms and may adopt rules consistent with the provisions

of this section.

SECTION 2.17. Section 21.09(c), Tax Code, is amended to

read as follows:

prescribe the contents of the allocation application form and shall

ensure that the form requires an applicant to provide the

information necessary to determine the validity of the allocation

claim.

SECTION 2.18. Section 22.01(l), Tax Code, is amended to

read as follows:

(l) If the information contained in the most recent

rendition statement filed by a person in a prior tax year is

accurate with respect to the current tax year, the person may comply

with the requirements of Subsection (a) by filing a rendition

statement on a form prescribed or approved by the State Property Tax

Board [~~comptroller~~] under Section 22.24(c) on which the person has

checked the appropriate box to affirm that the information

continues to be complete and accurate.

SECTION 2.19. Section 22.21, Tax Code, is amended to read as

follows:

Sec. 22.21. PUBLICIZING REQUIREMENTS. Each year the State

Property Tax Board [~~comptroller~~] and each chief appraiser shall

publicize in a manner reasonably designed to notify all property

owners the requirements of the law relating to filing rendition

statements and property reports and of the availability of forms.

SECTION 2.20. Sections 22.24(a), (c), and (e), Tax Code,

are amended to read as follows:

(a) A person required to render property or to file a report

as provided by this chapter shall use a form that substantially

complies with the appropriate form prescribed or approved by the

State Property Tax Board [~~comptroller~~].

prescribe or approve different forms for different kinds of

property but shall ensure that each form requires a property owner

to furnish the information necessary to identify the property and

to determine its ownership, taxability, and situs. Each form must

include a box that the property owner may check to permit the

property owner to affirm that the information contained in the most

recent rendition statement filed by the property owner in a prior

tax year is accurate with respect to the current tax year in

accordance with Section 22.01(l). A form may not require but may

permit a property owner to furnish information not specifically

required by this chapter to be reported. In addition, a form

prescribed or approved under this subsection must contain the

following statement in bold type: "If you make a false statement on

this form, you could be found guilty of a Class A misdemeanor or a

state jail felony under Section 37.10, Penal Code."

(e) To be valid, a rendition or report must be sworn to

before an officer authorized by law to administer an oath. The

State Property Tax Board [~~comptroller~~] may not prescribe or approve

a rendition or report form unless the form provides for the person

filing the form to swear that the information provided in the

rendition or report is true and accurate to the best of the person's

knowledge and belief. This subsection does not apply to a rendition

or report filed by a secured party, as defined by Section 22.01, the

property owner, an employee of the property owner, or an employee of

a property owner on behalf of an affiliated entity of the property

owner.

SECTION 2.21. Sections 22.27(a), (b), and (d), Tax Code,

are amended to read as follows:

(a) Rendition statements, real and personal property

reports, attachments to those statements and reports, and other

information the owner of property provides to the appraisal office

in connection with the appraisal of the property, including income

and expense information related to a property filed with an

appraisal office and information voluntarily disclosed to an

appraisal office or the State Property Tax Board [~~comptroller~~]

about real or personal property sales prices after a promise it will

be held confidential, are confidential and not open to public

inspection. The statements and reports and the information they

contain about specific real or personal property or a specific real

or personal property owner and information voluntarily disclosed to

an appraisal office about real or personal property sales prices

after a promise it will be held confidential may not be disclosed to

anyone other than an employee of the appraisal office who appraises

property except as authorized by Subsection (b) of this section.

(b) Information made confidential by this section may be

disclosed:

(1) in a judicial or administrative proceeding

pursuant to a lawful subpoena;

(2) to the person who filed the statement or report or

the owner of property subject to the statement, report, or

information or to a representative of either authorized in writing

to receive the information;

(3) to the State Property Tax Board [~~comptroller~~] and

the board's [~~comptroller's~~] employees authorized by the board

[~~comptroller~~] in writing to receive the information or to an

assessor or a chief appraiser if requested in writing;

(4) in a judicial or administrative proceeding

relating to property taxation to which the person who filed the

statement or report or the owner of the property that is a subject

of the statement, report, or information is a party;

(5) for statistical purposes if in a form that does not

identify specific property or a specific property owner;

(6) if and to the extent the information is required to

be included in a public document or record that the appraisal office

is required to prepare or maintain;

(7) to a taxing unit or its legal representative that

is engaged in the collection of delinquent taxes on the property

that is the subject of the information;

(8) to an employee or agent of a taxing unit

responsible for auditing, monitoring, or reviewing the operations

of an appraisal district; or

(9) to an employee or agent of a school district that

is engaged in the preparation of a protest of the State Property Tax

Board's [~~comptroller's~~] property value study in accordance with

Section 5.24 [~~403.303, Government Code~~].

(d) No person who directly or indirectly provides

information to the State Property Tax Board [~~comptroller~~] or

appraisal office about real or personal property sales prices,

either as set forth in Subsection (a) of this section under a

promise of confidentiality, or otherwise, shall be liable to any

other person as the result of providing such information.

SECTION 2.22. Sections 23.121(a)(3) and (6), Tax Code, are

amended to read as follows:

(3) "Dealer" means a person who holds a dealer's

general distinguishing number issued by the Texas Department of

Motor Vehicles under the authority of Chapter 503, Transportation

Code, or who is legally recognized as a motor vehicle dealer

pursuant to the law of another state and who complies with the terms

of Section 152.063(f). The term does not include:

(A) a person who holds a manufacturer's license

issued under Chapter 2301, Occupations Code;

(B) an entity that is owned or controlled by a

person who holds a manufacturer's license issued under Chapter

2301, Occupations Code;

issued by the Texas Department of Motor Vehicles under the

authority of Chapter 503, Transportation Code, prohibits the dealer

from selling a vehicle to any person except a dealer; or

(D) a dealer who:

(i) does not sell motor vehicles described

by Section 152.001(3)(A);

(ii) meets either of the following

requirements:

(a) the total annual sales from the

dealer's motor vehicle inventory, less sales to dealers, fleet

transactions, and subsequent sales, for the 12-month period

corresponding to the preceding tax year are 25 percent or less of

the dealer's total revenue from all sources during that period; or

(b) the dealer did not sell a motor

vehicle to a person other than another dealer during the 12-month

period corresponding to the preceding tax year and the dealer

estimates that the dealer's total annual sales from the dealer's

motor vehicle inventory, less sales to dealers, fleet transactions,

and subsequent sales, for the 12-month period corresponding to the

current tax year will be 25 percent or less of the dealer's total

revenue from all sources during that period;

(iii) not later than August 31 of the

preceding tax year, filed with the chief appraiser and the

collector a declaration on a form prescribed by the State Property

Tax Board [~~comptroller~~] stating that the dealer elected not to be

treated as a dealer under this section in the current tax year; and

(iv) renders the dealer's motor vehicle

inventory in the current tax year by filing a rendition with the

chief appraiser in the manner provided by Chapter 22.

(6) "Declaration" means the dealer's motor vehicle

inventory declaration form promulgated by the State Property Tax

Board [~~comptroller~~] as required by this section.

SECTION 2.23. Section 23.121(f), Tax Code, is amended to

read as follows:

(f) The State Property Tax Board [~~comptroller~~] shall

promulgate a form entitled Dealer's Motor Vehicle Inventory

Declaration. Except as provided by Section 23.122(l), not later

than February 1 of each year, or, in the case of a dealer who was not

in business on January 1, not later than 30 days after commencement

of business, each dealer shall file a declaration with the chief

appraiser and file a copy with the collector. For purposes of this

subsection, a dealer is presumed to have commenced business on the

date of issuance to the dealer of a dealer's general distinguishing

number as provided by Chapter 503, Transportation Code.

Notwithstanding the presumption created by this subsection, a chief

appraiser may, at his or her sole discretion, designate as the date

on which a dealer commenced business a date other than the date of

issuance to the dealer of a dealer's general distinguishing number.

The declaration is sufficient to comply with this subsection if it

sets forth the following information:

(1) the name and business address of each location at

which the dealer owner conducts business;

(2) each of the dealer's general distinguishing

numbers issued by the Texas Department of Motor Vehicles;

(3) a statement that the dealer owner is the owner of a

dealer's motor vehicle inventory; and

(4) the market value of the dealer's motor vehicle

inventory for the current tax year as computed under Section

23.121(b).

SECTION 2.24. Sections 23.122(a) and (e), Tax Code, are

amended to read as follows:

(a) In this section:

(1) "Aggregate tax rate" means the combined tax rates

of all relevant taxing units authorized by law to levy property

taxes against a dealer's motor vehicle inventory.

(2) "Chief appraiser" has the meaning given it in

Section 23.121 [~~of this code~~].

(3) "Collector" has the meaning given it in Section

23.121 [~~of this code~~].

(4) "Dealer's motor vehicle inventory" has the meaning

given it in Section 23.121 [~~of this code~~].

(5) "Declaration" has the meaning given it in Section

23.121 [~~of this code~~].

(6) "Owner" has the meaning given it in Section 23.121

[~~of this code~~].

(7) "Relevant taxing unit" means a taxing unit,

including the county, authorized by law to levy property taxes

against a dealer's motor vehicle inventory.

(8) "Sales price" has the meaning given it in Section

23.121 [~~of this code~~].

(9) "Statement" means the Dealer's Motor Vehicle

Inventory Tax Statement filed on a form promulgated by the State

Property Tax Board [~~comptroller~~] as required by this section.

(10) "Subsequent sale" has the meaning given it in

Section 23.121 [~~of this code~~].

(11) "Total annual sales" has the meaning given it in

Section 23.121 [~~of this code~~].

(12) "Unit property tax factor" means a number equal

to one-twelfth of the prior year aggregate tax rate at the location

where a dealer's motor vehicle inventory is located on January 1 of

the current year.

(e) The State Property Tax Board [~~comptroller~~] shall

promulgate a form entitled a Dealer's Motor Vehicle Inventory Tax

Statement. Each month, a dealer shall complete the form regardless

of whether a motor vehicle is sold. A dealer may use no other form

for that purpose. The statement may include the information the

board [~~comptroller~~] deems appropriate but shall include at least

the following:

(1) a description of each motor vehicle sold;

(2) the sales price of the motor vehicle;

(3) the unit property tax of the motor vehicle if any;

and

(4) the reason no unit property tax is assigned if no

unit property tax is assigned.

SECTION 2.25. Section 23.123(c), Tax Code, is amended to

read as follows:

disclosed:

(1) in a judicial or administrative proceeding

pursuant to a lawful subpoena;

(2) to the person who filed the declaration or

statement or to that person's representative authorized by the

person in writing to receive the information;

(3) to the comptroller or an employee of the

comptroller authorized by the comptroller to receive the

information;

(4) to a collector or chief appraiser;

(5) to a district attorney, criminal district attorney

or county attorney involved in the enforcement of a penalty imposed

pursuant to Section 23.121 or Section 23.122;

(6) for statistical purposes if in a form that does not

identify specific property or a specific property owner;

(7) if and to the extent that the information is

required for inclusion in a public document or record that the

appraisal or collection office is required by law to prepare or

maintain; [or]

(8) to the Texas Department of Motor Vehicles for use

by that department in auditing compliance of its licensees with

appropriate provisions of applicable law; or

(9) to the State Property Tax Board or an employee of

the board authorized by the board to receive the information.

SECTION 2.26. Section 23.124(a)(6), Tax Code, is amended to

read as follows:

(6) "Declaration" means the dealer's vessel and

outboard motor inventory declaration form promulgated by the State

Property Tax Board [~~comptroller~~] as required by this section.

SECTION 2.27. Section 23.124(f), Tax Code, is amended to

read as follows:

(f) The State Property Tax Board [~~comptroller~~] shall

promulgate a form entitled "Dealer's Vessel and Outboard Motor

Inventory Declaration." Except as provided by Section 23.125(l)

[~~of this code~~], not later than February 1 of each year or, in the

case of a dealer who was not in business on January 1, not later than

30 days after commencement of business, each dealer shall file a

declaration with the chief appraiser and file a copy with the

collector. The declaration is sufficient to comply with this

subsection if it sets forth the following information:

(1) the name and business address of each location at

which the dealer owner conducts business;

(2) each of the dealer's and manufacturer's numbers

issued by the Parks and Wildlife Department;

(3) a statement that the dealer owner is the owner of a

dealer's vessel and outboard motor inventory; and

(4) the market value of the dealer's vessel and

outboard motor inventory for the current tax year as computed under

Subsection (b) of this section.

SECTION 2.28. Section 23.1241(a)(4), Tax Code, is amended

to read as follows:

(4) "Declaration" means a dealer's heavy equipment

inventory declaration form adopted by the State Property Tax Board

[~~comptroller~~] under this section.

SECTION 2.29. Section 23.1241(f), Tax Code, is amended to

read as follows:

(f) The State Property Tax Board [~~comptroller~~] by rule shall

adopt a dealer's heavy equipment inventory declaration form.

Except as provided by Section 23.1242(k), not later than February 1

of each year, or, in the case of a dealer who was not in business on

January 1, not later than 30 days after commencement of business,

each dealer shall file a declaration with the chief appraiser and

file a copy with the collector. The declaration is sufficient to

comply with this subsection if it sets forth:

(1) the name and business address of each location at

which the declarant conducts business;

(2) a statement that the declarant is the owner of a

dealer's heavy equipment inventory; and

(3) the market value of the declarant's heavy

equipment inventory for the current tax year as computed under

Subsection (b).

SECTION 2.30. Section 23.1242(a)(3), Tax Code, is amended

to read as follows:

(3) "Statement" means the dealer's heavy equipment

inventory tax statement filed on a form adopted by the State

Property Tax Board [~~comptroller~~] under this section.

SECTION 2.31. Section 23.1242(e), Tax Code, is amended to

read as follows:

(e) The State Property Tax Board [~~comptroller~~] by rule shall

adopt a dealer's heavy equipment inventory tax statement form.

Each month, a dealer shall complete the form regardless of whether

an item of heavy equipment is sold, leased, or rented. A dealer may

use no other form for that purpose. The statement may include the

information the board [~~comptroller~~] considers appropriate but

shall include at least the following:

(1) a description of each item of heavy equipment

sold, leased, or rented including any unique identification or

serial number affixed to the item by the manufacturer;

(2) the sales price of or lease or rental payment

received for the item of heavy equipment, as applicable;

(3) the unit property tax of the item of heavy

equipment, if any; and

(4) the reason no unit property tax is assigned if no

unit property tax is assigned.

SECTION 2.32. Sections 23.125(a) and (e), Tax Code, are

amended to read as follows:

(a) In [in] this section:

(1) "Aggregate tax rate" means the combined tax rates

of all relevant taxing units authorized by law to levy property

taxes against a dealer's vessel and outboard motor inventory.

(2) "Chief appraiser" has the meaning given it in

Section 23.124 [~~of this code~~].

(3) "Collector" has the meaning given it in Section

23.124 [~~of this code~~].

(4) "Dealer's vessel and outboard motor inventory" has

the meaning given it in Section 23.124 [~~of this code~~].

(5) "Declaration" has the meaning given it in Section

23.124 [~~of this code~~].

(6) "Owner" has the meaning given it in Section 23.124

[~~of this code~~].

(7) "Relevant taxing unit" means a taxing unit,

including the county, authorized by law to levy property taxes

against a dealer's vessel and outboard motor inventory.

(8) "Sales price" has the meaning given it in Section

23.124 [~~of this code~~].

(9) "Statement" means the dealer's vessel and outboard

motor inventory tax statement filed on a form promulgated by the

State Property Tax Board [~~comptroller~~] as required by this section.

(10) "Subsequent sale" has the meaning given it in

Section 23.124 [~~of this code~~].

(11) "Total annual sales" has the meaning given it in

Section 23.124 [~~of this code~~].

(12) "Unit property tax factor" means a number equal

to one-twelfth of the prior year aggregate tax rate at the location

where a dealer's vessel and outboard motor inventory is located on

January 1 of the current year.

(e) The State Property Tax Board [~~comptroller~~] shall

promulgate a form entitled "Dealer's Vessel and Outboard Motor

Inventory Tax Statement." Each month, a dealer shall complete the

form regardless of whether a vessel and outboard motor is sold. A

dealer may use no other form for that purpose. The statement may

include the information the board [~~comptroller~~] deems appropriate

but shall include at least the following:

(1) a description of each vessel or outboard motor

sold;

(2) the sales price of the vessel or outboard motor;

(3) the unit property tax of the vessel or outboard

motor, if any; and

(4) the reason no unit property tax is assigned if no

unit property tax is assigned.

SECTION 2.33. Section 23.126(c), Tax Code, is amended to

read as follows:

disclosed:

(1) in a judicial or administrative proceeding

pursuant to a lawful subpoena;

(2) to the person who filed the declaration or

statement or to that person's representative authorized by the

person in writing to receive the information;

(3) to the comptroller or an employee of the

comptroller authorized by the comptroller to receive the

information;

(4) to a collector or chief appraiser;

(5) to a district attorney, criminal district

attorney, or county attorney involved in the enforcement of a

penalty imposed pursuant to Section 23.124 or Section 23.125 [of

~~this code~~];

(6) for statistical purposes if in a form that does not

identify specific property or a specific property owner; [or]

(7) if and to the extent that the information is

required for inclusion in a document or record that the appraisal or

collection office is required by law to prepare or maintain; or

(8) to the State Property Tax Board or an employee of

the board authorized by the board to receive the information.

SECTION 2.34. Section 23.127(a)(3), Tax Code, is amended to

read as follows:

(3) "Declaration" means a retail manufactured housing

inventory declaration form adopted by the State Property Tax Board

[~~comptroller~~] under this section.

SECTION 2.35. Section 23.127(f), Tax Code, is amended to

read as follows:

(f) The State Property Tax Board [~~comptroller~~] by rule shall

adopt a form entitled "Retail Manufactured Housing Inventory

Declaration." Except as provided by Section 23.128(k), not later

than February 1 of each year or, in the case of a retailer who was

not in business on January 1, not later than the 30th day after the

date the retailer commences business, each retailer shall file a

declaration with the chief appraiser and file a copy with the

collector. The declaration is sufficient to comply with this

subsection if it sets forth the following information:

(1) the name and business address of each location at

which the retailer conducts business;

(2) the retailer's license number issued by the

department;

(3) a statement that the retailer is the owner of a

retail manufactured housing inventory; and

(4) the market value of the retailer's manufactured

housing inventory for the current tax year as computed under

Subsection (b).

SECTION 2.36. Section 23.128(a)(4), Tax Code, is amended to

read as follows:

(4) "Statement" means the retail manufactured housing

inventory tax statement filed on a form adopted by the State

Property Tax Board [~~comptroller~~] under this section.

SECTION 2.37. Section 23.128(e), Tax Code, is amended to

read as follows:

(e) The State Property Tax Board [~~comptroller~~] by rule shall

adopt a form entitled "Retail Manufactured Housing Inventory Tax

Statement." Each month, a retailer shall complete the form

regardless of whether a unit of manufactured housing is sold. A

retailer may not use another form for that purpose. The statement

shall include:

(1) a description of the unit of manufactured housing

sold, including any unique identification or serial number affixed

to each unit by the manufacturer;

(2) the sales price of the unit of manufactured

housing;

(3) any unit property tax of the unit of manufactured

housing;

(4) the reason a unit property tax is not assigned if

that is the case; and

(5) any other information the board [~~comptroller~~]

considers appropriate.

SECTION 2.38. Section 23.175(b), Tax Code, is amended to

read as follows:

(b) The State Property Tax Board [~~comptroller~~] by rule shall

develop and distribute to each appraisal office appraisal manuals

that specify the formula to be used in computing the limit on the

price for an interest used in the second through the sixth year of

an appraisal and the methods and procedures to discount future

income from the sale of oil or gas from the interest to present

value.

SECTION 2.39. Sections 23.41(b) and (e), Tax Code, are

amended to read as follows:

(b) The State Property Tax Board [~~comptroller~~] shall

promulgate rules specifying the methods to apply and the procedures

to use in appraising land designated for agricultural use.

(e) Improvements other than appurtenances to the land, the

mineral estate, and all land used for residential purposes and for

processing harvested agricultural products are appraised

separately at market value. Riparian water rights, private roads,

dams, reservoirs, water wells, and canals, ditches, terraces, and

similar reshapings of or additions to the soil for agricultural

purposes are appurtenances to the land, and the effect of each on

the value of the land for agricultural use shall be considered in

appraising the land. However, the State Property Tax Board

[~~comptroller~~] shall provide that in calculating average net income

from land a deduction from income be allowed for an appurtenance

subject to depreciation or depletion.

SECTION 2.40. Section 23.43(d), Tax Code, is amended to

read as follows:

(d) The State Property Tax Board [~~comptroller~~] in

prescribing the contents of the application forms shall ensure that

each form requires a claimant to furnish the information necessary

to determine the validity of the claim. The board [~~comptroller~~]

shall require that the form permit a claimant who has previously

been allowed an agricultural designation to indicate that

previously reported information has not changed and to supply only

the eligibility information not previously reported.

SECTION 2.41. Section 23.45(b), Tax Code, is amended to

read as follows:

(b) Information made confidential by this section may be

disclosed:

(1) in a judicial or administrative proceeding

pursuant to a lawful subpoena;

(2) to the person who filed the application or to the

person's [~~his~~] representative authorized in writing to receive the

information;

(3) to the comptroller and to employees of the

comptroller [~~his employees~~] authorized by the comptroller [~~him~~] in

writing to receive the information or to an assessor or a chief

appraiser if requested in writing by that official;

(4) in a judicial or administrative proceeding

relating to property taxation to which the person who filed the

application is a party;

(5) for statistical purposes if in a form that does not

identify specific property or a specific property owner; [or]

(6) if and to the extent the information is required to

be included in a public document or record that the appraisal office

is required to prepare or maintain; or

(7) to the State Property Tax Board or an employee of

the board authorized by the board to receive the information.

SECTION 2.42. Section 23.52(d), Tax Code, is amended to

read as follows:

(d) The State Property Tax Board [~~comptroller~~] by rule shall

develop and distribute to each appraisal office appraisal manuals

setting forth this method of appraising qualified open-space land,

and each appraisal office shall use the appraisal manuals in

appraising qualified open-space land. The board [~~comptroller~~] by

rule shall develop and the appraisal office shall enforce

procedures to verify that land meets the conditions contained in

Subdivision (1) of Section 23.51 [~~of this code~~]. The rules, before

taking effect, must be approved by a majority vote of a committee

comprised of the following officials or their designees: the

governor, the comptroller, the attorney general, the agriculture

commissioner, and the Commissioner of the General Land Office.

SECTION 2.43. Section 23.521(a), Tax Code, is amended to

read as follows:

(a) The Parks and Wildlife Department, with the assistance

of the State Property Tax Board [~~comptroller~~], shall develop

standards for determining whether land qualifies under Section

23.51(7) for appraisal under this subchapter. The board

[~~comptroller~~] by rule shall adopt the standards developed by the

Parks and Wildlife Department and distribute those rules to each

appraisal district. On request of the Parks and Wildlife

Department, the Texas Agricultural Extension Service shall assist

the department in developing the standards.

SECTION 2.44. Sections 23.54(b) and (c), Tax Code, are

amended to read as follows:

(b) To be valid, the application must:

(1) be on a form provided by the appraisal office and

prescribed by the State Property Tax Board [~~comptroller~~]; and

(2) contain the information necessary to determine the

validity of the claim.

include on the form a notice of the penalties prescribed by Section

37.10, Penal Code, for making or filing an application containing a

false statement. The board [~~comptroller~~], in prescribing the

contents of the application form, shall require that the form

permit a claimant who has previously been allowed appraisal under

this subchapter to indicate that previously reported information

has not changed and to supply only the eligibility information not

previously reported.

SECTION 2.45. Section 23.73(b), Tax Code, is amended to

read as follows:

(b) The State Property Tax Board [~~comptroller~~] by rule shall

develop and distribute to each appraisal office appraisal manuals

setting forth this method of appraising qualified timber land, and

each appraisal office shall use the appraisal manuals in appraising

qualified timber land. The board [~~comptroller~~] by rule shall

develop and the appraisal office shall enforce procedures to verify

that land meets the conditions contained in Section 23.72 [~~of this~~

~~code~~]. The rules, before taking effect, must be approved by

majority vote of a committee comprised of the following officials

or their designees: the governor, the comptroller, the attorney

general, the agriculture commissioner, and the Commissioner of the

General Land Office.

SECTION 2.46. Sections 23.75(b) and (c), Tax Code, are

amended to read as follows:

(b) To be valid, the application must:

(1) be on a form provided by the appraisal office and

prescribed by the State Property Tax Board [~~comptroller~~]; and

(2) contain the information necessary to determine the

validity of the claim.

include on the form a notice of the penalties prescribed by Section

37.10, Penal Code, for making or filing an application containing a

false statement. The board [~~comptroller~~], in prescribing the

contents of the application form, shall require that the form

permit a claimant who has previously been allowed appraisal under

this subchapter to indicate that previously reported information

has not changed and to supply only the eligibility information not

previously reported.

SECTION 2.47. Section 23.83(e), Tax Code, is amended to

read as follows:

(e) The State Property Tax Board [~~comptroller~~] shall

promulgate rules specifying the methods to apply and the procedures

to use in appraising land under this subchapter.

SECTION 2.48. Section 23.84(f), Tax Code, is amended to

read as follows:

(f) The State Property Tax Board [~~comptroller~~] in

prescribing the contents of the application forms shall ensure that

each form requires a claimant to furnish the information necessary

to determine the validity of the claim and that the form requires

the claimant to state that the land for which he or she claims

appraisal under this subchapter will be used exclusively for

recreational, park, or scenic uses in the current year.

SECTION 2.49. Section 23.93(e), Tax Code, is amended to

read as follows:

(e) The State Property Tax Board [~~comptroller~~] shall

promulgate rules specifying the methods to apply and the procedures

to use in appraising property under this subchapter.

SECTION 2.50. Section 23.94(f), Tax Code, is amended to

read as follows:

(f) The State Property Tax Board [~~comptroller~~] in

prescribing the contents of the application forms shall ensure that

each form requires a claimant to furnish the information necessary

to determine the validity of the claim and that the form requires

the claimant to state that the airport property for which he or she

claims appraisal under this subchapter will be used exclusively as

public access airport property in the current year.

SECTION 2.51. Sections 23.9804(b), (c), and (d), Tax Code,

are amended to read as follows:

(b) To be valid, an application for appraisal under Section

23.9802(a) must:

(1) be on a form provided by the appraisal office and

prescribed by the State Property Tax Board [~~comptroller~~];

(2) provide evidence that the land qualifies for

designation as an aesthetic management zone, critical wildlife

habitat zone, or streamside management zone;

(3) specify the location of the proposed zone and the

quantity of land, in acres, in the proposed zone; and

(4) contain other information necessary to determine

the validity of the claim.

23.9802(b) must:

(1) be on a form provided by the appraisal office and

prescribed by the State Property Tax Board [~~comptroller~~];

(2) provide evidence that the land on which the timber

was harvested was appraised under Subchapter E in the year in which

the timber was harvested;

(3) provide evidence that all of the land has been

regenerated in compliance with Section 23.9802(b)(2); and

(4) contain other information necessary to determine

the validity of the claim.

(d) The State Property Tax Board [~~comptroller~~] shall

include on the form a notice of the penalties prescribed by Section

37.10, Penal Code, for making or filing an application containing a

false statement. The board [~~comptroller~~], in prescribing the

contents of the application form, shall require that the form

permit a claimant who has previously been allowed appraisal under

this subchapter to indicate that the previously reported

information has not changed and to supply only the eligibility

information not previously reported.

SECTION 2.52. Section 24.32(c), Tax Code, is amended to

read as follows:

prescribed by the State Property Tax Board [~~comptroller~~]. In

prescribing the form, the board [~~comptroller~~] shall ensure that it

requires the information necessary to determine market value of

rolling stock used in this state.

SECTION 2.53. Section 24.34(b), Tax Code, is amended to

read as follows:

(b) The State Property Tax Board [~~comptroller~~] shall adopt

rules establishing formulas for interstate allocation of the value

of railroad rolling stock.

SECTION 2.54. Section 24.36, Tax Code, is amended to read as

follows:

Sec. 24.36. CERTIFICATION TO STATE PROPERTY TAX BOARD

[~~COMPTROLLER~~]. On approval of the appraised value of the rolling

stock as provided by Chapter 41 of this code, the chief appraiser

shall certify to the State Property Tax Board [~~comptroller~~] the

amount of market value allocated to this state for each owner whose

rolling stock is appraised in the county and the name and business

address of each owner.

SECTION 2.55. Section 24.365, Tax Code, is amended to read

as follows:

Sec. 24.365. CORRECTION OF CERTIFIED AMOUNT. (a) A chief

appraiser who discovers that the chief appraiser's certification to

the State Property Tax Board [~~comptroller~~] of the amount of the

market value of rolling stock allocated to this state under Section

24.36 was incomplete or incorrect shall immediately certify the

correct amount of that market value to the board [~~comptroller~~].

(b) As soon as practicable after the State Property Tax

Board [~~comptroller~~] receives the correct certification from the

chief appraiser, the board [~~comptroller~~] shall certify to the

county assessor-collector for each affected county the information

required by Section 24.38 as corrected.

SECTION 2.56. Section 24.37, Tax Code, is amended to read as

follows:

Sec. 24.37. INTRASTATE APPORTIONMENT. The State Property

Tax Board [~~comptroller~~] shall apportion the appraised value of each

owner's rolling stock to each county in which the railroad using it

operates according to the ratio the mileage of road owned by the

railroad in the county bears to the total mileage of road the

railroad owns in this state.

SECTION 2.57. Section 24.38, Tax Code, is amended to read as

follows:

Sec. 24.38. CERTIFICATION OF APPORTIONED VALUE. Before

July 26, the State Property Tax Board [~~comptroller~~] shall certify

to the county assessor-collector for each county in which a

railroad operates:

(1) the county's apportioned amount of the market

value of each owner's rolling stock; and

(2) the name and business address of each owner.

SECTION 2.58. Section 24.40(a), Tax Code, is amended to

read as follows:

(a) If a chief appraiser discovers that rolling stock used

in this state and subject to appraisal by him or her has not been

appraised and apportioned to the counties in one of the two

preceding years, the appraiser [he] shall appraise the property as

of January 1 for each year it was omitted, submit the appraisal for

review and protest, and certify the approved value to the State

Property Tax Board [~~comptroller~~].

SECTION 2.59. Section 25.011(b), Tax Code, is amended to

read as follows:

(b) The record for each type of specially appraised property

must be maintained in a separate document for each 12-month period

beginning June 1. The document must include the name of at least one

owner of the property, the acreage of the property, and other

information sufficient to identify the property as required by the

State Property Tax Board [~~comptroller~~]. All entries in each

document must be kept in alphabetical order according to the last

name of each owner whose name is part of the record.

SECTION 2.60. Section 25.02(a), Tax Code, is amended to

read as follows:

(a) The appraisal records shall be in the form prescribed by

the State Property Tax Board [~~comptroller~~] and shall include:

(1) the name and address of the owner or, if the name

or address is unknown, a statement that it is unknown;

(2) real property;

(3) separately taxable estates or interests in real

property, including taxable possessory interests in exempt real

property;

(4) personal property;

(5) the appraised value of land and, if the land is

appraised as provided by Subchapter C, D, E, or H, Chapter 23, the

market value of the land;

(6) the appraised value of improvements to land;

(7) the appraised value of a separately taxable estate

or interest in land;

(8) the appraised value of personal property;

(9) the kind of any partial exemption the owner is

entitled to receive, whether the exemption applies to appraised or

assessed value, and, in the case of an exemption authorized by

Section 11.23, the amount of the exemption;

(10) the tax year to which the appraisal applies; and

(11) an identification of each taxing unit in which

the property is taxable.

SECTION 2.61. Section 25.025(b), Tax Code, is amended to

read as follows:

(b) Information in appraisal records under Section 25.02 is

confidential and is available only for the official use of the

appraisal district, this state, the State Property Tax Board

[~~comptroller~~], and taxing units and political subdivisions of this

state if:

(1) the information identifies the home address of a

named individual to whom this section applies; and

(2) the individual chooses to restrict public access

to the information on the form prescribed for that purpose by the

board [~~comptroller~~] under Section 5.07.

SECTION 2.62. Section 25.026(b), Tax Code, is amended to

read as follows:

(b) Information in appraisal records under Section 25.02 is

confidential and is available only for the official use of the

appraisal district, this state, the State Property Tax Board

[~~comptroller~~], and taxing units and political subdivisions of this

state if the information identifies the address of a family

violence shelter center, a sexual assault program, or a victims of

trafficking shelter center.

SECTION 2.63. Section 25.03(b), Tax Code, is amended to

read as follows:

(b) The State Property Tax Board [~~comptroller~~] may adopt

rules establishing minimum standards for descriptions of property.

SECTION 2.64. Sections 25.19(i) and (j), Tax Code, are

amended to read as follows:

(i) Delivery with a notice required by Subsection (a) or (g)

of a copy of the pamphlet published by the State Property Tax Board

[~~comptroller~~] under Section 5.06 or a copy of the notice published

by the chief appraiser under Section 41.70 is sufficient to comply

with the requirement that the notice include the information

specified by Subsection (b)(7) or (g)(3), as applicable.

(j) The chief appraiser shall include with a notice required

by Subsection (a) or (g):

(1) a copy of a notice of protest form as prescribed by

the State Property Tax Board [~~comptroller~~] under Section 41.44(d);

and

(2) instructions for completing and mailing the form

to the appraisal review board and requesting a hearing on the

protest.

SECTION 2.65. Section 25.23(b), Tax Code, is amended to

read as follows:

(b) Supplemental appraisal records shall be in the form

prescribed by the State Property Tax Board [~~comptroller~~] and shall

include the items required by Section 25.02 [~~of this code~~].

SECTION 2.66. Section 26.01(b), Tax Code, is amended to

read as follows:

(b) When a chief appraiser submits an appraisal roll for

county taxes to a county assessor-collector, the chief appraiser

also shall certify the appraisal district appraisal roll to the

State Property Tax Board [~~comptroller~~]. However, the board

[~~comptroller~~] by rule may provide for submission of only a summary

of the appraisal roll. The chief appraiser shall certify the

district appraisal roll or the summary of that roll in the form and

manner prescribed by the board's [~~comptroller's~~] rule.

SECTION 2.67. Section 26.04(e), Tax Code, is amended to

read as follows:

(e) By August 7 or as soon thereafter as practicable, the

designated officer or employee shall submit the rates to the

governing body. The officer or employee [He] shall deliver by mail

to each property owner in the unit or publish in a newspaper in the

form prescribed by the State Property Tax Board [~~comptroller~~]:

(1) the effective tax rate, the rollback tax rate, and

an explanation of how they were calculated;

(2) the estimated amount of interest and sinking fund

balances and the estimated amount of maintenance and operation or

general fund balances remaining at the end of the current fiscal

year that are not encumbered with or by corresponding existing debt

obligation;

(3) a schedule of the unit's debt obligations showing:

(A) the amount of principal and interest that

will be paid to service the unit's debts in the next year from

property tax revenue, including payments of lawfully incurred

contractual obligations providing security for the payment of the

principal of and interest on bonds and other evidences of

indebtedness issued on behalf of the unit by another political

subdivision and, if the unit is created under Section 52, Article

III, or Section 59, Article XVI, Texas Constitution, payments on

debts that the unit anticipates to incur in the next calendar year;

(B) the amount by which taxes imposed for debt

are to be increased because of the unit's anticipated collection

rate; and

(A)-(B), less any amount collected in excess of the previous year's

anticipated collections certified as provided in Subsection (b);

(4) the amount of additional sales and use tax revenue

anticipated in calculations under Section 26.041;

(5) a statement that the adoption of a tax rate equal

to the effective tax rate would result in an increase or decrease,

as applicable, in the amount of taxes imposed by the unit as

compared to last year's levy, and the amount of the increase or

decrease;

(6) in the year that a taxing unit calculates an

adjustment under Subsection (i) or (j), a schedule that includes

the following elements:

(A) the name of the unit discontinuing the

department, function, or activity;

(B) the amount of property tax revenue spent by

the unit listed under Paragraph (A) to operate the discontinued

department, function, or activity in the 12 months preceding the

month in which the calculations required by this chapter are made;

and

department, function, or activity in all or a majority of the

territory of a taxing unit that has discontinued operating the

distinct department, function, or activity; and

(7) in the year following the year in which a taxing

unit raised its rollback rate as required by Subsection (j), a

schedule that includes the following elements:

(A) the amount of property tax revenue spent by

the unit to operate the department, function, or activity for which

the taxing unit raised the rollback rate as required by Subsection

(j) for the 12 months preceding the month in which the calculations

required by this chapter are made; and

(B) the amount published by the unit in the

preceding tax year under Subdivision (6)(B).

SECTION 2.68. Section 26.16(e), Tax Code, is amended to

read as follows:

(e) The State Property Tax Board [~~comptroller~~] by rule shall

prescribe the manner in which the information described by this

section is required to be presented.

SECTION 2.69. Section 31.075(a), Tax Code, is amended to

read as follows:

(a) At the request of a property owner or a property owner's

agent, the collector for a taxing unit shall issue a receipt showing

the taxable value and the amount of tax imposed by the unit on the

property in one or more tax years for which the information is

requested, the tax rate for each of those tax years, and the amount

of tax paid in each of those years. The receipt must describe the

property in the manner prescribed by the State Property Tax Board

[~~comptroller~~]. If the amount of the tax for the current year has

not been calculated when the request is made, the collector shall on

request issue to the property owner or agent a statement indicating

that taxes for the current year have not been calculated.

SECTION 2.70. Section 31.11(c), Tax Code, is amended to

read as follows:

for a refund must be made within three years after the date of the

payment or the taxpayer waives the right to the refund. A taxpayer

may apply for a refund by filing:

(1) an application on a form prescribed by the State

Property Tax Board [~~comptroller~~] by rule; or

(2) a written request that includes information

sufficient to enable the collector and the auditor for the taxing

unit and, if applicable, the governing body of the taxing unit to

determine whether the taxpayer is entitled to the refund.

SECTION 2.71. Section 33.43(e), Tax Code, is amended to

read as follows:

(e) The State Property Tax Board [~~comptroller~~] shall

prepare forms for petitions initiating suits to collect delinquent

taxes. An attorney representing a taxing unit may use the forms or

develop his or her own form.

SECTION 2.72. 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 State Property

Tax Board [~~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. The State Property Tax Board

[~~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 2.73. Sections 41.45(k) and (l), Tax Code, are

amended to read as follows:

(k) The State Property Tax Board [~~comptroller~~] shall

prescribe a standard form for an affidavit offered under Subsection

(b). Each appraisal district shall make copies of the affidavit

form available to property owners without charge.

(l) A property owner is not required to use the affidavit

form prescribed by the State Property Tax Board [~~comptroller~~] when

offering an affidavit under Subsection (b).

SECTION 2.74. Section 41.461(a), Tax Code, is amended to

read as follows:

(a) At least 14 days before a hearing on a protest, the chief

appraiser shall:

(1) deliver a copy of the pamphlet prepared by the

State Property Tax Board [~~comptroller~~] under Section 5.06 [~~5.06(a)~~]

to the property owner initiating the protest if the owner is

representing himself or herself, or to an agent representing the

owner if requested by the agent;

(2) inform the property owner that the owner or the

agent of the owner may inspect and may obtain a copy of the data,

schedules, formulas, and all other information the chief appraiser

plans to introduce at the hearing to establish any matter at issue;

and

(3) deliver a copy of the hearing procedures

established by the appraisal review board under Section 41.66 to

the property owner.

SECTION 2.75. Section 41.65, Tax Code, is amended to read as

follows:

Sec. 41.65. REQUEST FOR STATE ASSISTANCE. The appraisal

review board may request the State Property Tax Board [~~comptroller~~]

to assist in determining the accuracy of appraisals by the

appraisal office or to provide other professional assistance. The

appraisal office shall reimburse the costs of providing assistance

if the board [~~comptroller~~] requests reimbursement.

SECTION 2.76. Section 41.66(a), Tax Code, is amended to

read as follows:

(a) The appraisal review board shall establish by rule the

procedures for hearings it conducts as provided by Subchapters A

and C of this chapter. On request made by a property owner in the

owner's notice of protest or in a separate writing delivered to the

appraisal review board on or before the date the notice of protest

is filed, the property owner is entitled to a copy of the hearing

procedures. The copy of the hearing procedures shall be delivered

to the property owner not later than the 10th day before the date

the hearing on the protest begins and may be delivered with the

notice of the protest hearing required under Section 41.46(a). The

notice of protest form prescribed by the State Property Tax Board

[~~comptroller~~] under Section 41.44(d) or any other notice of protest

form made available to a property owner by the appraisal review

board or the appraisal office shall provide the property owner an

opportunity to make or decline to make a request under this

subsection. The appraisal review board shall post a copy of the

hearing procedures in a prominent place in the room in which the

hearing is held.

SECTION 2.77. Section 41.68, Tax Code, is amended to read as

follows:

Sec. 41.68. RECORD OF PROCEEDING. The appraisal review

board shall keep a record of its proceedings in the form and manner

prescribed by the State Property Tax Board [~~comptroller~~].

SECTION 2.78. Section 41.70(a), Tax Code, is amended to

read as follows:

(a) On or after May 1 but not later than May 15, the chief

appraiser shall publish notice of the manner in which a protest

under this chapter may be brought by a property owner. The notice

must describe how to initiate a protest and must describe the

deadlines for filing a protest. The notice must also describe the

manner in which an order of the appraisal review board may be

appealed. The State Property Tax Board [~~comptroller~~] by rule shall

adopt minimum standards for the form and content of the notice

required by this section.

SECTION 2.79. Section 41A.03(a), Tax Code, is amended to

read as follows:

(a) To appeal an appraisal review board order under this

chapter, a property owner must file with the appraisal district not

later than the 45th day after the date the property owner receives

notice of the order:

(1) a completed request for binding arbitration under

this chapter in the form prescribed by Section 41A.04; and

(2) an arbitration deposit made payable to the State

Property Tax Board [~~comptroller~~] in the amount of $500.

SECTION 2.80. Section 41A.04, Tax Code, is amended to read

as follows:

Sec. 41A.04. CONTENTS OF REQUEST FORM. The State Property

Tax Board [~~comptroller~~] by rule shall prescribe the form of a

request for binding arbitration under this chapter. The form must

require the property owner to provide only:

(1) a brief statement that explains the basis for the

property owner's appeal of the appraisal review board order;

(2) a statement of the property owner's opinion of the

appraised or market value, as applicable, of the property that is

the subject of the appeal; and

(3) any other information reasonably necessary for the

appraisal district to request appointment of an arbitrator.

SECTION 2.81. Section 41A.05, Tax Code, is amended to read

as follows:

Sec. 41A.05. PROCESSING OF REGISTRATION REQUEST. (a) Not

later than the 10th day after the date an appraisal district

receives from a property owner a completed request for binding

arbitration under this chapter and an arbitration deposit as

required by Section 41A.03, the appraisal district shall:

(1) certify the request;

(2) submit the request and deposit to the State

Property Tax Board [~~comptroller~~]; and

(3) request the State Property Tax Board [~~comptroller~~]

to appoint a qualified arbitrator to conduct the arbitration.

(b) The State Property Tax Board [~~comptroller~~] may retain an

amount equal to 10 percent of the deposit to cover the board's

[~~comptroller's~~] administrative costs.

SECTION 2.82. Sections 41A.06(a) and (c), Tax Code, are

amended to read as follows:

(a) The State Property Tax Board [~~comptroller~~] shall

maintain a registry listing the qualified persons who have agreed

to serve as arbitrators under this chapter.

property tax law before conducting a hearing on an arbitration

relating to the appeal of an appraisal review board order

determining a protest filed under Section 41.41(a)(2). The

training program must:

(1) emphasize the requirements regarding the equal and

uniform appraisal of property;

(2) be at least four hours in length; and

(3) be approved by the State Property Tax Board

[~~comptroller~~].

SECTION 2.83. Section 41A.061, Tax Code, is amended to read

as follows:

Sec. 41A.061. CONTINUED QUALIFICATION OF ARBITRATOR;

RENEWAL OF AGREEMENT. (a) The State Property Tax Board

[~~comptroller~~] shall include a qualified arbitrator in the registry

until the second anniversary of the date the person was added to the

registry. To continue to be included in the registry after the

second anniversary of the date the person was added to the registry,

the person must renew the person's agreement with the board

[~~comptroller~~] to serve as an arbitrator on or as near as possible to

the date on which the person's license or certification issued

under Chapter 901, 1101, or 1103, Occupations Code, is renewed.

(b) To renew the person's agreement to serve as an

arbitrator, the person must:

(1) file a renewal application with the State Property

Tax Board [~~comptroller~~] at the time and in the manner prescribed by

the board [~~comptroller~~];

(2) continue to meet the requirements provided by

Section 41A.06(b); and

(3) during the preceding two years have completed at

least eight hours of continuing education in arbitration and

alternative dispute resolution procedures offered by a university,

college, real estate trade association, or legal association.

a person from the registry if the person fails or declines to renew

the person's agreement to serve as an arbitrator in the manner

required by this section.

SECTION 2.84. Section 41A.07, Tax Code, is amended to read

as follows:

Sec. 41A.07. APPOINTMENT OF ARBITRATOR. (a) On receipt of

the request and deposit under Section 41A.05, the State Property

Tax Board [~~comptroller~~] shall send the property owner and the

appraisal district a copy of the board's [~~comptroller's~~] registry

of qualified arbitrators and request that the parties select an

arbitrator from the registry. The board [~~comptroller~~] may send a

copy of the registry to the parties by regular mail in paper form or

may send the parties written notice of the Internet address of a

website at which the registry is maintained and may be accessed.

The parties shall attempt to select an arbitrator from the

registry.

(b) Not later than the 20th day after the date the parties

receive the copy of the registry or notice of the Internet address

of the registry website, the appraisal district shall notify the

State Property Tax Board [~~comptroller~~] that:

(1) the parties have selected an arbitrator and

request that the board [~~comptroller~~] appoint the selected

arbitrator; or

(2) the parties were unable to select an arbitrator

and request the board [~~comptroller~~] to appoint an arbitrator.

Subsection (b), the State Property Tax Board [~~comptroller~~] shall:

(1) appoint:

(A) the arbitrator selected under Subsection

(b)(1), if applicable; or

(B) any arbitrator included in the board's

[~~comptroller's~~] registry, if Subsection (b)(2) applies; and

(2) send notice to the arbitrator appointed,

requesting that the arbitrator conduct the arbitration.

(d) If the arbitrator appointed is unable or unwilling to

conduct the arbitration for any reason, the arbitrator shall

promptly notify the State Property Tax Board [~~comptroller~~] that the

arbitrator does not accept the appointment and state the reason.

The board [~~comptroller~~] shall appoint a substitute arbitrator

promptly after receipt of the notice.

SECTION 2.85. Sections 41A.09(a), (c), (d), and (e), Tax

Code, are amended to read as follows:

(a) Not later than the 20th day after the date the hearing

under Section 41A.08 is concluded, the arbitrator shall make an

arbitration award and deliver a copy of the award to the property

owner, appraisal district, and State Property Tax Board

[~~comptroller~~].

market value, as applicable, of the property that is the subject of

the appeal is nearer to the property owner's opinion of the

appraised or market value, as applicable, of the property as stated

in the request for binding arbitration submitted under Section

41A.03 than the value determined by the appraisal review board:

(1) the State Property Tax Board [~~comptroller~~], on

receipt of a copy of the award, shall refund the property owner's

arbitration deposit, less the amount retained by the board

[~~comptroller~~] under Section 41A.05(b);

(2) the appraisal district, on receipt of a copy of the

award, shall pay the arbitrator's fee; and

(3) the chief appraiser shall correct the appraised or

market value, as applicable, of the property as shown in the

appraisal roll to reflect the arbitrator's determination.

(d) If the arbitrator determines that the appraised or

market value, as applicable, of the property that is the subject of

the appeal is not nearer to the property owner's opinion of the

appraised or market value, as applicable, of the property as stated

in the request for binding arbitration submitted under Section

41A.03 than the value determined by the appraisal review board:

(1) the State Property Tax Board [~~comptroller~~], on

receipt of a copy of the award, shall:

(A) pay the arbitrator's fee out of the owner's

arbitration deposit; and

(B) refund to the owner the owner's arbitration

deposit, less the arbitrator's fee and the amount retained by the

board [~~comptroller~~] under Section 41A.05(b); and

(2) the chief appraiser shall correct the appraised or

market value, as applicable, of the property as shown in the

appraisal roll to reflect the arbitrator's determination if the

value as determined by the arbitrator is less than the value as

determined by the appraisal review board.

(e) The State Property Tax Board [~~comptroller~~] by rule may

prescribe a standard form for an award and may require arbitrators

to use the award form when making awards under this chapter.

SECTION 2.86. Section 41A.10(b), Tax Code, is amended to

read as follows:

(b) A property owner may not file an appeal under this

chapter if the taxes on the property subject to the appeal are

delinquent. An arbitrator who determines that the taxes on the

property subject to an appeal are delinquent shall dismiss the

pending appeal with prejudice. If an appeal is dismissed under this

subsection, the State Property Tax Board [~~comptroller~~] shall refund

the property owner's arbitration deposit, less the amount retained

by the board [~~comptroller~~] under Section 41A.05(b).

SECTION 2.87. Section 41A.12, Tax Code, is amended to read

as follows:

Sec. 41A.12. USE OF PROPERTIES AS SAMPLES. An arbitrator's

determination of market value under this chapter is the market

value of the property subject to the appeal for the purposes of the

study conducted under Section 5.23 [~~403.302, Government Code~~].

SECTION 2.88. Section 41A.13, Tax Code, is amended to read

as follows:

Sec. 41A.13. RULES. The State Property Tax Board

[~~comptroller~~] may adopt rules necessary to implement and administer

this chapter.

SECTION 2.89. Section 42.01(a), Tax Code, is amended to

read as follows:

(a) A property owner is entitled to appeal:

(1) an order of the appraisal review board

determining:

(A) a protest by the property owner as provided

by Subchapter C of Chapter 41;

(B) a determination of an appraisal review board

on a motion filed under Section 25.25;

that the property owner has forfeited the right to a final

determination of a motion filed under Section 25.25 or of a protest

under Section 41.411 for failing to comply with the prepayment

requirements of Section 25.26 or 41.4115, as applicable; or

(D) a determination of an appraisal review board

of eligibility for a refund requested under Section 23.1243; or

(2) an order of the State Property Tax Board

[~~comptroller~~] issued as provided by Subchapter B, Chapter 24,

apportioning among the counties the appraised value of railroad

rolling stock owned by the property owner.

SECTION 2.90. Section 42.03, Tax Code, is amended to read as

follows:

Sec. 42.03. RIGHT OF APPEAL BY COUNTY. A county may appeal

the order of the State Property Tax Board [~~comptroller~~] issued as

provided by Subchapter B, Chapter 24 of this code apportioning

among the counties the appraised value of railroad rolling stock.

SECTION 2.91. Section 42.05, Tax Code, is amended to read as

follows:

Sec. 42.05. STATE PROPERTY TAX BOARD [~~COMPTROLLER~~] AS

PARTY. The State Property Tax Board [~~comptroller~~] is an opposing

party in an appeal by:

(1) a property owner of an order of the board

[~~comptroller~~] determining a protest of the appraisal, interstate

allocation, or intrastate apportionment of transportation business

intangibles; or

(2) a county or a property owner of an order of the

board [~~comptroller~~] apportioning among the counties the appraised

value of railroad rolling stock.

SECTION 2.92. Sections 42.06(a), (b), and (c), Tax Code,

are amended to read as follows:

(a) To exercise the party's right to appeal an order of an

appraisal review board, a party other than a property owner must

file written notice of appeal within 15 days after the date the

party receives the notice required by Section 41.47 or, in the case

of a taxing unit, by Section 41.07 that the order appealed has been

issued. To exercise the right to appeal an order of the State

Property Tax Board [~~comptroller~~], a party other than a property

owner must file written notice of appeal within 15 days after the

date the party receives the board's [~~comptroller's~~] order. A

property owner is not required to file a notice of appeal under this

section.

(b) A party required to file a notice of appeal under this

section other than a chief appraiser who appeals an order of an

appraisal review board shall file the notice with the chief

appraiser of the appraisal district for which the appraisal review

board is established. A chief appraiser who appeals an order of an

appraisal review board shall file the notice with the appraisal

review board. A party who appeals an order of the State Property Tax

Board [~~comptroller~~] shall file the notice with that board [~~the~~

~~comptroller~~].

appeals, the chief appraiser, if the appeal is of an order of the

appraisal review board, or the State Property Tax Board

[~~comptroller~~], if the appeal is of an order of the State Property

Tax Board [~~comptroller~~], shall deliver a copy of the notice to the

property owner whose property is involved in the appeal within 10

days after the date the notice is filed.

SECTION 2.93. Section 42.21(b), Tax Code, is amended to

read as follows:

(b) A petition for review brought under Section 42.02 must

be brought against the owner of the property involved in the appeal.

A petition for review brought under Section 42.031 must be brought

against the appraisal district and against the owner of the

property involved in the appeal. A petition for review brought

under Section 42.01(a)(2) or 42.03 must be brought against the

State Property Tax Board [~~comptroller~~]. Any other petition for

review under this chapter must be brought against the appraisal

district. A petition for review may not be brought against the

appraisal review board. An appraisal district may hire an attorney

that represents the district to represent the appraisal review

board established for the district to file an answer and obtain a

dismissal of a suit filed against the appraisal review board in

violation of this subsection.

SECTION 2.94. Section 42.22, Tax Code, as amended by

Chapters 667 (S.B. 548) and 1033 (H.B. 301), Acts of the 73rd

Legislature, Regular Session, 1993, is reenacted and amended to

read as follows:

Sec. 42.22. VENUE. Venue is in the county in which the

appraisal review board that issued the order appealed is located,

except as provided by Section 42.221. Venue is in Travis County if

the order appealed was issued by the State Property Tax Board

[~~comptroller~~].

SECTION 2.95. Section 42.23(b), Tax Code, is amended to

read as follows:

(b) The court may not admit in evidence the fact of prior

action by the appraisal review board or State Property Tax Board

[~~comptroller~~], except to the extent necessary to establish its

jurisdiction.

SECTION 2.96. Section 42.26(c), Tax Code, is amended to

read as follows:

appraisal under Subsection (a)(1), the median level of appraisal in

the appraisal district as determined by the State Property Tax

Board [~~comptroller~~] under Section 5.10 is admissible as evidence of

the median level of appraisal of a reasonable and representative

sample of properties in the appraisal district for the year of the

board's [~~comptroller's~~] determination, subject to the Texas Rules

of Evidence and the Texas Rules of Civil Procedure.

SECTION 2.97. Section 42.28, Tax Code, is amended to read as

follows:

Sec. 42.28. APPEAL OF DISTRICT COURT JUDGMENT. A party may

appeal the final judgment of the district court as provided by law

for appeal of civil suits generally, except that an appeal bond is

not required of the chief appraiser, the county, the State Property

Tax Board [~~comptroller~~], or the commissioners court.

SECTION 2.98. Sections 42.43(g) and (i), Tax Code, are

amended to read as follows:

(g) If a form prescribed by the State Property Tax Board

[~~comptroller~~] under Subsection (i) is filed with a taxing unit

before the 21st day after the final determination of an appeal that

requires a refund be made, the taxing unit shall send the refund to

the person and address designated on the form.

(i) The State Property Tax Board [~~comptroller~~] shall

prescribe the form necessary to allow a property owner to designate

the person to whom a refund must be sent. The board [~~comptroller~~]

shall include on the form a space for the property owner to

designate to whom and where the refund must be sent and provide

options to mail the refund to:

(1) the property owner;

(2) the business office of the property owner's

attorney of record in the appeal; or

(3) any other individual and address designated by the

property owner.

SECTION 2.99. Section 43.01, Tax Code, is amended to read as

follows:

Sec. 43.01. AUTHORITY TO BRING SUIT. A taxing unit may sue

the appraisal district that appraises property for the unit to

compel the appraisal district to comply with the provisions of this

title, rules of the State Property Tax Board [~~comptroller~~], or

other applicable law.

SECTION 2.100. Section 111.00455(b), Tax Code, is amended

to read as follows:

(b) The following are not contested cases under Subsection

(a) and Section 2003.101, Government Code:

(1) a show cause hearing or any hearing not related to

the collection, receipt, administration, or enforcement of the

amount of a tax or fee imposed, or the penalty or interest

associated with that amount, except for a hearing under Section

151.157(f), 151.1575(c), 151.712(g), 154.1142, or 155.0592;

(2) a property value study hearing under Subchapter B

[M], Chapter 5 [~~403, Government Code~~];

(3) a hearing in which the issue relates to:

(A) Chapters 72-75, Property Code;

(B) forfeiture of a right to do business;

(D) articles of incorporation;

(E) a penalty imposed under Section 151.703(d);

(F) the refusal or failure to settle under

Section 111.101; or

(G) a request for or revocation of an exemption

from taxation; and

(4) any other hearing not related to the collection,

receipt, administration, or enforcement of the amount of a tax or

fee imposed, or the penalty or interest associated with that

amount.

SECTION 2.101. Section 111.0081(c), Tax Code, is amended to

read as follows:

due and payable 20 days after a [~~comptroller's~~] decision of the

comptroller or the State Property Tax Board, as applicable, in a

redetermination hearing becomes final. If the amount of the

determination is not paid within 20 days after the day the decision

became final, a penalty of 10 percent of the amount of the

determination, exclusive of penalties and interest, shall be added.

SECTION 2.102. Section 111.009, Tax Code, is amended by

amending Subsections (a) and (d) and adding Subsection (a-1) to

read as follows:

(a) Except as provided by Subsection (a-1), a [A] person

having a direct interest in a determination may petition the

comptroller for a redetermination.

(a-1) A person having a direct interest in a determination

under Section 313.0276 may petition the State Property Tax Board

for a redetermination.

(d) An order or decision of the comptroller or State

Property Tax Board, as applicable, on a petition for

redetermination becomes final 20 days after service on the

petitioner of the notice of the order or decision.

SECTION 2.103. Section 311.011(h), Tax Code, is amended to

read as follows:

(h) Unless specifically provided otherwise in the plan, all

amounts contained in the project plan or reinvestment zone

financing plan, including amounts of expenditures relating to

project costs and amounts relating to participation by taxing

units, are considered estimates and do not act as a limitation on

the described items, but the amounts contained in the project plan

or reinvestment zone financing plan may not vary materially from

the estimates. This subsection may not be construed to increase the

amount of any reduction under Section 5.23(d)(4) [~~403.302(d)(4),~~

~~Government Code,~~] in the total taxable value of the property in a

school district that participates in the zone as computed under

Section 5.23(d) [~~403.302(d) of that code~~].

SECTION 2.104. Section 311.013(n), Tax Code, is amended to

read as follows:

(n) This subsection applies only to a school district whose

taxable value computed under Section 5.23(d) [~~403.302(d),~~

~~Government Code,~~] is reduced in accordance with Subdivision (4) of

that subsection. In addition to the amount otherwise required to be

paid into the tax increment fund, the district shall pay into the

fund an amount equal to the amount by which the amount of taxes the

district would have been required to pay into the fund in the

current year if the district levied taxes at the rate the district

levied in 2005 exceeds the amount the district is otherwise

required to pay into the fund in the year of the reduction. This

additional amount may not exceed the amount the school district

receives in state aid for the current tax year under Section

42.2514, Education Code. The school district shall pay the

additional amount after the district receives the state aid to

which the district is entitled for the current tax year under

Section 42.2514, Education Code.

SECTION 2.105. Section 311.016(b), Tax Code, is amended to

read as follows:

(b) The municipality or county shall send a copy of a report

made under this section to the State Property Tax Board

[~~comptroller~~].

SECTION 2.106. Section 311.0163(a), Tax Code, is amended to

read as follows:

(a) Not later than December 31 of each even-numbered year,

the State Property Tax Board [~~comptroller~~] shall submit a report to

the legislature and to the governor on reinvestment zones

designated under this chapter and on project plans and reinvestment

zone financing plans adopted under this chapter.

SECTION 2.107. Section 311.019, Tax Code, is amended to

read as follows:

Sec. 311.019. CENTRAL REGISTRY. (a) The State Property Tax

Board [~~comptroller~~] shall maintain a central registry of:

(1) reinvestment zones designated under this chapter;

(2) project plans and reinvestment zone financing

plans adopted under this chapter; and

(3) annual reports submitted under Section 311.016.

(b) A municipality or county that designates a reinvestment

zone or approves a project plan or reinvestment zone financing plan

under this chapter shall deliver to the State Property Tax Board

[~~comptroller~~] before April 1 of the year following the year in which

the zone is designated or the plan is approved a report containing:

(1) a general description of each zone, including:

(A) the size of the zone;

(B) the types of property located in the zone;

(D) the guidelines and criteria established for

the zone under Section 311.005;

(2) a copy of each project plan or reinvestment zone

financing plan adopted; and

(3) any other information required by the board

[~~comptroller~~] to administer this section [~~and Subchapter F, Chapter~~

~~111~~].

project plan or reinvestment zone financing plan adopted under this

chapter shall deliver a copy of the amendment or modification to the

State Property Tax Board [~~comptroller~~] before April 1 of the year

following the year in which the plan was amended or modified.

SECTION 2.108. Section 311.020, Tax Code, is amended to

read as follows:

Sec. 311.020. STATE ASSISTANCE. (a) On request of the

governing body of a municipality or county or of the presiding

officer of the governing body, the State Property Tax Board

[~~comptroller~~] may provide assistance to a municipality or county

relating to the administration of this chapter.

(b) The economic development and tourism division of the

governor's office [~~Texas Department of Economic Development~~] and

the State Property Tax Board [~~comptroller~~] may provide technical

assistance to a municipality or county regarding:

(1) the designation of reinvestment zones under this

chapter; and

(2) the adoption and execution of project plans or

reinvestment zone financing plans under this chapter.

SECTION 2.109. Section 312.005, Tax Code, is amended to

read as follows:

Sec. 312.005. STATE ADMINISTRATION. (a) The State

Property Tax Board [~~comptroller~~] shall maintain a central registry

of reinvestment zones designated under this chapter and of ad

valorem tax abatement agreements executed under this chapter. The

chief appraiser of each appraisal district that appraises property

for a taxing unit that has designated a reinvestment zone or

executed a tax abatement agreement under this chapter shall deliver

to the board [~~comptroller~~] before July 1 of the year following the

year in which the zone is designated or the agreement is executed a

report providing the following information:

(1) for a reinvestment zone, a general description of

the zone, including its size, the types of property located in it,

its duration, and the guidelines and criteria established for the

reinvestment zone under Section 312.002, including subsequent

amendments and modifications of the guidelines or criteria;

(2) a copy of each tax abatement agreement to which a

taxing unit that participates in the appraisal district is a party;

and

(3) any other information required by the board

[~~comptroller~~] to administer this section [~~and Subchapter F, Chapter~~

~~111~~].

(b) The State Property Tax Board [~~comptroller~~] may provide

assistance to a taxing unit on request of its governing body or the

presiding officer of its governing body relating to the

administration of this chapter. The economic development and

tourism division of the governor's office [~~Texas Department of~~

~~Commerce~~] and the State Property Tax Board [~~comptroller~~] may

provide technical assistance to a local governing body regarding

the designation of reinvestment zones, the adoption of tax

abatement guidelines, and the execution of tax abatement

agreements.

the State Property Tax Board [~~comptroller~~] shall submit a report to

the legislature and to the governor on reinvestment zones

designated under this chapter and on tax abatement agreements

adopted under this chapter, including a summary of the information

reported under this section.

SECTION 2.110. Section 313.004, Tax Code, is amended to

read as follows:

Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the

legislature in enacting this chapter that:

(1) economic development decisions involving school

district taxes should occur at the local level with oversight by the

state and should be consistent with identifiable statewide economic

development goals;

(2) this chapter should not be construed or

interpreted to allow:

(A) property owners to pool investments to create

sufficiently large investments to qualify for an ad valorem tax

benefit provided by this chapter;

(B) an applicant for an ad valorem tax benefit

provided by this chapter to assert that jobs will be eliminated if

certain investments are not made if the assertion is not true; or

Chapter 171 to receive an ad valorem tax benefit provided by this

chapter;

(3) in implementing this chapter, school districts

should:

(A) strictly interpret the criteria and

selection guidelines provided by this chapter; and

(B) approve only those applications for an ad

valorem tax benefit provided by this chapter that:

(i) enhance the local community;

(ii) improve the local public education

system;

(iii) create high-paying jobs; and

(iv) advance the economic development goals

of this state; and

(4) in implementing this chapter, the board

[~~comptroller~~] should:

(A) strictly interpret the criteria and

selection guidelines provided by this chapter; and

(B) issue certificates for limitations on

appraised value only for those applications for an ad valorem tax

benefit provided by this chapter that:

(i) create high-paying jobs;

(ii) provide a net benefit to the state over

the long term; and

(iii) advance the economic development

goals of this state.

SECTION 2.111. Section 313.005, Tax Code, is amended to

read as follows:

Sec. 313.005. DEFINITIONS. (a) Unless this chapter

defines a word or phrase used in this chapter, Section 1.04 or any

other section of Title 1 or this title that defines the word or

phrase or ascribes a meaning to the word or phrase applies to the

word or phrase used in this chapter.

(b) In this chapter, "board" means the State Property Tax

Board.

SECTION 2.112. Section 313.022(b), Tax Code, is amended to

read as follows:

(b) For purposes of determining the required minimum amount

of a qualified investment under Section 313.021(2)(A)(iv)(a), and

the minimum amount of a limitation on appraised value under Section

313.027(b), school districts to which this subchapter applies are

categorized according to the taxable value of property in the

district for the preceding tax year determined under Subchapter B

[M], Chapter 5 [~~403, Government Code~~], as follows:

CATEGORY TAXABLE VALUE OF PROPERTY

$10 billion or more

$1 billion or more but less than $10 billion

III

$500 million or more but less than $1 billion

$100 million or more but less than $500 million

less than $100 million

SECTION 2.113. Sections 313.025(a), (a-1), (b), (b-1), (c),

(d), (d-1), (e), (h), and (i), Tax Code, are amended to read as

follows:

(a) The owner or lessee of, or the holder of another

possessory interest in, any qualified property described by Section

313.021(2)(A), (B), or (C) may apply to the governing body of the

school district in which the property is located for a limitation on

the appraised value for school district maintenance and operations

ad valorem tax purposes of the person's qualified property. An

application must be made on the form prescribed by the board

[~~comptroller~~] and include the information required by the board

[~~comptroller~~], and it must be accompanied by:

(1) the application fee established by the governing

body of the school district;

(2) information sufficient to show that the real and

personal property identified in the application as qualified

property meets the applicable criteria established by Section

313.021(2); and

(3) any information required by the board

[~~comptroller~~] for the purposes of Section 313.026.

(a-1) Within seven days of the receipt of each document, the

school district shall submit to the board [~~comptroller~~] a copy of

the application and the proposed agreement between the applicant

and the school district. If the applicant submits an economic

analysis of the proposed project to the school district, the

district shall submit a copy of the analysis to the board

[~~comptroller~~]. In addition, the school district shall submit to

the board [~~comptroller~~] any subsequent revision of or amendment to

any of those documents within seven days of its receipt. The board

[~~comptroller~~] shall publish each document received from the school

district under this subsection on the board's [~~comptroller's~~]

Internet website. If the school district maintains a generally

accessible Internet website, the district shall provide on its

website a link to the location of those documents posted on the

board's [~~comptroller's~~] website in compliance with this subsection.

This subsection does not require the board [~~comptroller~~] to post

information that is confidential under Section 313.028.

(b) The governing body of a school district is not required

to consider an application for a limitation on appraised value. If

the governing body of the school district elects to consider an

application, the governing body shall deliver a copy of the

application to the board [~~comptroller~~] and request that the board

[~~comptroller~~] conduct an economic impact evaluation of the

investment proposed by the application. The board [~~comptroller~~]

shall conduct or contract with a third person to conduct the

economic impact evaluation, which shall be completed and provided

to the governing body of the school district, along with the board's

[~~comptroller's~~] certificate or written explanation under

Subsection (d), as soon as practicable but not later than the 90th

day after the date the board [~~comptroller~~] receives the

application. The governing body shall provide to the board

[~~comptroller~~] or to a third person contracted by the board

[~~comptroller~~] to conduct the economic impact evaluation any

requested information. A methodology to allow comparisons of

economic impact for different schedules of the addition of

qualified investment or qualified property may be developed as part

of the economic impact evaluation. The governing body shall

provide a copy of the economic impact evaluation to the applicant on

request. The board [~~comptroller~~] may charge the applicant a fee

sufficient to cover the costs of providing the economic impact

evaluation. The governing body of a school district shall approve

or disapprove an application not later than the 150th day after the

date the application is filed, unless the economic impact

evaluation has not been received or an extension is agreed to by the

governing body and the applicant.

(b-1) The board [~~comptroller~~] shall promptly deliver a copy

of the application to the Texas Education Agency. The Texas

Education Agency shall determine the effect that the applicant's

proposal will have on the number or size of the school district's

instructional facilities and submit a written report containing the

agency's determination to the school district. The governing body

of the school district shall provide any requested information to

the Texas Education Agency. Not later than the 45th day after the

date the Texas Education Agency receives the application, the Texas

Education Agency shall make the required determination and submit

the agency's written report to the governing body of the school

district.

governing body of the school district is entitled to request and

receive assistance from:

(1) the board [~~comptroller~~];

(2) the Texas Economic Development and Tourism Office;

(3) the Texas Workforce Investment Council; and

(4) the Texas Workforce Commission.

(d) Not later than the 90th day after the date the board

[~~comptroller~~] receives the copy of the application, the board

[~~comptroller~~] shall issue a certificate for a limitation on

appraised value of the property and provide the certificate to the

governing body of the school district or provide the governing body

a written explanation of the board's [~~comptroller's~~] decision not

to issue a certificate.

(d-1) The governing body of a school district may not

approve an application unless the board [~~comptroller~~] submits to

the governing body a certificate for a limitation on appraised

value of the property.

(e) Before approving or disapproving an application under

this subchapter that the governing body of the school district

elects to consider, the governing body must make a written finding

as to any criteria considered by the board [~~comptroller~~] in

conducting the economic impact evaluation under Section 313.026.

The governing body shall deliver a copy of those findings to the

applicant.

(h) After receiving a copy of the application, the board

[~~comptroller~~] shall determine whether the property meets the

requirements of Section 313.024 for eligibility for a limitation on

appraised value under this subchapter. The board [~~comptroller~~]

shall notify the governing body of the school district of the

board's [~~comptroller's~~] determination and provide the applicant an

opportunity for a hearing before the determination becomes final.

A hearing under this subsection is a contested case hearing and

shall be conducted by the State Office of Administrative Hearings

in the manner provided by Section 2003.101, Government Code. The

applicant has the burden of proof on each issue in the hearing. The

applicant may seek judicial review of the board's [~~comptroller's~~]

determination in a Travis County district court under the

substantial evidence rule as provided by Subchapter G, Chapter

2001, Government Code.

(i) If the board's [~~comptroller's~~] determination under

Subsection (h) that the property does not meet the requirements of

Section 313.024 for eligibility for a limitation on appraised value

under this subchapter becomes final, the board [~~comptroller~~] is not

required to provide an economic impact evaluation of the

application or to submit a certificate for a limitation on

appraised value of the property or a written explanation of the

decision not to issue a certificate, and the governing body of the

school district may not grant the application.

SECTION 2.114. Section 313.026, Tax Code, is amended to

read as follows:

Sec. 313.026. ECONOMIC IMPACT EVALUATION. (a) The

economic impact evaluation of the application must include any

information the board [~~comptroller~~] determines is necessary or

helpful to:

(1) the governing body of the school district in

determining whether to approve the application under Section

313.025; or

(2) the board [~~comptroller~~] in determining whether to

issue a certificate for a limitation on appraised value of the

property under Section 313.025.

(b) Except as provided by Subsections (c) and (d), the

board's [~~comptroller's~~] determination whether to issue a

certificate for a limitation on appraised value under this chapter

for property described in the application shall be based on the

economic impact evaluation described by Subsection (a) and on any

other information available to the board [~~comptroller~~], including

information provided by the governing body of the school district.

a limitation on appraised value under this chapter for property

described in an application unless the board [~~comptroller~~]

determines that:

(1) the project proposed by the applicant is

reasonably likely to generate, before the 25th anniversary of the

beginning of the limitation period, tax revenue, including state

tax revenue, school district maintenance and operations ad valorem

tax revenue attributable to the project, and any other tax revenue

attributable to the effect of the project on the economy of the

state, in an amount sufficient to offset the school district

maintenance and operations ad valorem tax revenue lost as a result

of the agreement; and

(2) the limitation on appraised value is a determining

factor in the applicant's decision to invest capital and construct

the project in this state.

(d) The board [~~comptroller~~] shall state in writing the basis

for the determinations made under Subsections (c)(1) and (2).

(e) The applicant may submit information to the board

[~~comptroller~~] that would provide a basis for an affirmative

determination under Subsection (c)(2).

(f) Notwithstanding Subsections (c) and (d), if the board

[~~comptroller~~] makes a qualitative determination that other

considerations associated with the project result in a net positive

benefit to the state, the board [~~comptroller~~] may issue the

certificate.

SECTION 2.115. Section 313.0265, Tax Code, is amended to

read as follows:

Sec. 313.0265. DISCLOSURE OF APPRAISED VALUE LIMITATION

INFORMATION. (a) The board [~~comptroller~~] shall post on the board's

[~~comptroller's~~] Internet website each document or item of

information the board [~~comptroller~~] designates as substantive

before the 15th day after the date the document or item of

information was received or created. Each document or item of

information must continue to be posted until the appraised value

limitation expires.

(b) The board [~~comptroller~~] shall designate the following

as substantive:

(1) each application requesting a limitation on

appraised value; and

(2) the economic impact evaluation made in connection

with the application.

Internet website, the district shall maintain a link on its

Internet website to the area of the board's [~~comptroller's~~]

Internet website where information on each of the district's

agreements to limit appraised value is maintained.

SECTION 2.116. Section 313.027(f), Tax Code, is amended to

read as follows:

(f) In addition, the agreement:

(1) must incorporate each relevant provision of this

subchapter and, to the extent necessary, include provisions for the

protection of future school district revenues through the

adjustment of the minimum valuations, the payment of revenue

offsets, and other mechanisms agreed to by the property owner and

the school district;

(2) may provide that the property owner will protect

the school district in the event the district incurs extraordinary

education-related expenses related to the project that are not

directly funded in state aid formulas, including expenses for the

purchase of portable classrooms and the hiring of additional

personnel to accommodate a temporary increase in student enrollment

attributable to the project;

(3) must require the property owner to maintain a

viable presence in the school district for at least five years after

the date the limitation on appraised value of the owner's property

expires;

(4) must provide for the termination of the agreement,

the recapture of ad valorem tax revenue lost as a result of the

agreement if the owner of the property fails to comply with the

terms of the agreement, and payment of a penalty or interest, or

both, on that recaptured ad valorem tax revenue;

(5) may specify any conditions the occurrence of which

will require the district and the property owner to renegotiate all

or any part of the agreement;

(6) must specify the ad valorem tax years covered by

the agreement; and

(7) must be in a form approved by the board

[~~comptroller~~].

SECTION 2.117. Section 313.0275(d), Tax Code, is amended to

read as follows:

(d) In the event of a casualty loss that prevents a person

from complying with Subsection (a), the person may request and the

board [~~comptroller~~] may grant a waiver of the penalty imposed under

Subsection (b).

SECTION 2.118. Sections 313.0276(a), (b), (c), (d), (g),

(j), (k), (l), and (m), Tax Code, are amended to read as follows:

(a) The board [~~comptroller~~] shall conduct an annual review

and issue a determination as to whether a person with whom a school

district has entered into an agreement under this chapter satisfied

in the preceding year the requirements of this chapter regarding

the creation of the required number of qualifying jobs. If the

board [~~comptroller~~] makes an adverse determination in the review,

the board [~~comptroller~~] shall notify the person of the cause of the

adverse determination and the corrective measures necessary to

remedy the determination.

(b) If a person who receives an adverse determination fails

to remedy the determination following notification of the

determination and the board [~~comptroller~~] makes an adverse

determination with respect to the person's compliance in the

following year, the person must submit to the board [~~comptroller~~] a

plan for remedying the determination and certify the person's

intent to fully implement the plan not later than December 31 of the

year in which the determination is made.

Subsection (b) fails to comply with that subsection following

notification of the determination and receives an adverse

determination in the following year, the board [~~comptroller~~] shall

impose a penalty on the person. The penalty is in an amount equal to

the amount computed by:

(1) subtracting from the number of qualifying jobs

required to be created the number of qualifying jobs actually

created; and

(2) multiplying the amount computed under Subdivision

(1) by the average annual wage for all jobs in the county during the

most recent four quarters for which data is available.

(d) Notwithstanding Subsection (c), if a person receives an

adverse determination and the board [~~comptroller~~] has previously

imposed a penalty on the person under this section one or more

times, the board [~~comptroller~~] shall impose a penalty on the person

in an amount equal to the amount computed by multiplying the amount

computed under Subsection (c)(1) by an amount equal to twice the

amount computed under Subsection (c)(2).

(g) An adverse determination under this section is a

deficiency determination under Section 111.008. The board shall

report a penalty under this section to the comptroller. The [A

~~penalty imposed under this section is an amount the~~] comptroller is

required to collect, receive, or administer the amount of the

penalty imposed under this section, [~~or enforce,~~] and the

determination is subject to the payment and redetermination

requirements of Sections 111.0081 and 111.009.

(j) If the board [~~comptroller~~] imposes a penalty on a person

under this section three times, the board [~~comptroller~~] may rescind

the agreement between the person and the school district under this

chapter.

(k) A person may contest a determination by the board

[~~comptroller~~] to rescind an agreement between the person and a

school district under this chapter pursuant to Subsection (j) by

filing suit against the board [~~comptroller~~] and the attorney

general. The district courts of Travis County have exclusive,

original jurisdiction of a suit brought under this subsection.

This subsection prevails over a provision of Chapter 25, Government

Code, to the extent of any conflict.

(l) If a person files suit under Subsection (k) and the

board's [~~comptroller's~~] determination to rescind the agreement is

upheld on appeal, the person shall pay to the board [~~comptroller~~]

any tax that would have been due and payable to the school district

during the pendency of the appeal, including statutory interest and

penalties imposed on delinquent taxes under Sections 111.060 and

111.061.

(m) The board [~~comptroller~~] shall transfer any [~~deposit a~~]

penalty collected under this section, including any interest and

penalty applicable to the penalty, to the comptroller who shall

deposit it to the credit of the foundation school fund.

SECTION 2.119. Section 313.028, Tax Code, is amended to

read as follows:

Sec. 313.028. CERTAIN BUSINESS INFORMATION CONFIDENTIAL.

Information provided to a school district in connection with an

application for a limitation on appraised value under this

subchapter that describes the specific processes or business

activities to be conducted or the specific tangible personal

property to be located on real property covered by the application

shall be segregated in the application from other information in

the application and is confidential and not subject to public

disclosure unless the governing body of the school district

approves the application. Other information in the custody of a

school district or the board [~~comptroller~~] in connection with the

application, including information related to the economic impact

of a project or the essential elements of eligibility under this

chapter, such as the nature and amount of the projected investment,

employment, wages, and benefits, may not be considered confidential

business information if the governing body of the school district

agrees to consider the application. Information in the custody of a

school district or the board [~~comptroller~~] if the governing body

approves the application is not confidential under this section.

SECTION 2.120. Section 313.031(a), Tax Code, is amended to

read as follows:

(a) The board [~~comptroller~~] shall:

(1) adopt rules and forms necessary for the

implementation and administration of this chapter, including rules

for determining whether a property owner's property qualifies as a

qualified investment under Section 313.021(1); and

(2) provide without charge one copy of the rules and

forms to any school district and to any person who states that the

person intends to apply for a limitation on appraised value under

this subchapter.

SECTION 2.121. Sections 313.032(a), (b-1), (c), and (d),

Tax Code, are amended to read as follows:

(a) Before the beginning of each regular session of the

legislature, the board [~~comptroller~~] shall submit to the lieutenant

governor, the speaker of the house of representatives, and each

other member of the legislature a report on the agreements entered

into under this chapter that includes:

(1) an assessment of the following with regard to the

agreements entered into under this chapter, considered in the

aggregate:

(A) the total number of jobs created, direct and

otherwise, in this state;

(B) the total effect on personal income, direct

and otherwise, in this state;

(D) the total taxable value of property on the

tax rolls in this state, including property for which the

limitation period has expired;

(E) the total value of property not on the tax

rolls in this state as a result of agreements entered into under

this chapter; and

(F) the total fiscal effect on the state and

local governments; and

(2) an assessment of the progress of each agreement

made under this chapter that states for each agreement:

(A) the number of qualifying jobs each recipient

of a limitation on appraised value committed to create;

(B) the number of qualifying jobs each recipient

created;

of the new qualifying jobs each recipient created;

(D) the amount of the qualified investment each

recipient committed to spend or allocate for each project;

(E) the amount of the qualified investment each

recipient spent or allocated for each project;

(F) the market value of the qualified property of

each recipient as determined by the applicable chief appraiser,

including property that is no longer eligible for a limitation on

appraised value under the agreement;

(G) the limitation on appraised value for the

qualified property of each recipient;

(H) the dollar amount of the taxes that would

have been imposed on the qualified property if the property had not

received a limitation on appraised value; and

(I) the dollar amount of the taxes imposed on the

qualified property.

(b-1) In preparing the portion of the report described by

Subsection (a)(1), the board [~~comptroller~~] may use standard

economic estimation techniques, including economic multipliers.

must be based on data certified to the board [~~comptroller~~] by each

recipient or former recipient of a limitation on appraised value

under this chapter.

(d) The board [~~comptroller~~] may require a recipient or

former recipient of a limitation on appraised value under this

chapter to submit, on a form the board [~~comptroller~~] provides,

information required to complete the report.

SECTION 2.122. Section 313.033, Tax Code, is amended to

read as follows:

Sec. 313.033. REPORT ON COMPLIANCE WITH JOB-CREATION

REQUIREMENTS. Each recipient of a limitation on appraised value

under this chapter shall submit to the board [~~comptroller~~] an

annual report on a form provided by the board [~~comptroller~~] that

provides information sufficient to document the number of

qualifying jobs created.

SECTION 2.123. Sections 313.051(a) and (a-3), Tax Code, are

amended to read as follows:

(a) In this section, "strategic investment area" means an

area the board [~~comptroller~~] determines under Subsection (a-3) is:

(1) a county within this state with unemployment above

the state average and per capita income below the state average;

(2) an area within this state that is a federally

designated urban enterprise community or an urban enhanced

enterprise community; or

(3) a defense economic readjustment zone designated

under Chapter 2310, Government Code.

(a-3) Not later than September 1 of each year, the board

[~~comptroller~~] shall determine areas that qualify as a strategic

investment area using the most recently completed full calendar

year data available on that date and, not later than October 1,

shall publish a list and map of the designated areas. A

determination under this subsection is effective for the following

tax year for purposes of this subchapter.

SECTION 2.124. Section 313.052, Tax Code, is amended to

read as follows:

Sec. 313.052. CATEGORIZATION OF SCHOOL DISTRICTS. For

purposes of determining the required minimum amount of a qualified

investment under Section 313.021(2)(A)(iv)(a) and the minimum

amount of a limitation on appraised value under this subchapter,

school districts to which this subchapter applies are categorized

according to the taxable value of industrial property in the

district for the preceding tax year determined under Subchapter B

[M], Chapter 5 [~~403, Government Code~~], as follows:

CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY

$200 million or more

$90 million or more but less than $200 million

III

$1 million or more but less than $90 million

$100,000 or more but less than $1 million

less than $100,000

SECTION 2.125. Section 7.062(a), Education Code, is amended

to read as follows:

(a) In this section, "wealth per student" means a school

district's taxable value of property as determined under Subchapter

B [M], Chapter 5 [~~403~~], Tax [~~Government~~] Code, or, if applicable,

Section 42.2521, divided by the district's average daily attendance

as determined under Section 42.005.

SECTION 2.126. Section 13.051(c), Education Code, is

amended to read as follows:

from a school district and annexed to another school district if:

(1) the total taxable value of the property in the

territory according to the most recent certified appraisal roll for

each school district is not greater than:

(A) five percent of the district's taxable value

of all property in that district as determined under Subchapter B

[M], Chapter 5 [~~403~~], Tax [~~Government~~] Code; and

(B) $5,000 property value per student in average

daily attendance as determined under Section 42.005; and

(2) the school district from which the property will

be detached does not own any real property located in the territory.

SECTION 2.127. Section 13.231(b), Education Code, is

amended to read as follows:

(b) In this section, "taxable value" has the meaning

assigned by Section 5.23 [~~403.302~~], Tax [~~Government~~] Code.

SECTION 2.128. Section 41.001(2), Education Code, is

amended to read as follows:

(2) "Wealth per student" means the taxable value of

property, as determined under Subchapter B [M], Chapter 5 [~~403~~],

Tax [~~Government~~] Code, divided by the number of students in

weighted average daily attendance.

SECTION 2.129. Section 41.002(f), Education Code, is

amended to read as follows:

(f) For purposes of Subsection (e), a school district's

effective tax rate is determined by dividing the total amount of

taxes collected by the district for the applicable school year less

any amounts paid into a tax increment fund under Chapter 311, Tax

Code, by the quotient of the district's taxable value of property,

as determined under Subchapter B [M], Chapter 5 [~~403~~], Tax

[~~Government~~] Code, divided by 100.

SECTION 2.130. Section 41.202(a), Education Code, is

amended to read as follows:

(a) For purposes of this subchapter, the taxable value of an

individual parcel or other item of property and the total taxable

value of property in a school district resulting from the

detachment of property from or annexation of property to that

district is determined by applying the appraisal ratio for the

appropriate category of property determined under Subchapter B [M],

Chapter 5 [~~403~~], Tax [~~Government~~] Code, for the preceding tax year

to the taxable value of the detached or annexed property determined

under Title 1, Tax Code, for the preceding tax year.

SECTION 2.131. Sections 42.252(a), (b), and (c), Education

Code, are amended to read as follows:

(a) Each school district's share of the Foundation School

Program is determined by the following formula:

LFA = TR X DPV

where:

"LFA" is the school district's local share;

"TR" is a tax rate which for each hundred dollars of valuation

is an effective tax rate of the amount equal to the product of the

state compression percentage, as determined under Section 42.2516,

multiplied by the lesser of:

(1) $1.50; or

(2) the maintenance and operations tax rate adopted by

the district for the 2005 tax year; and

"DPV" is the taxable value of property in the school district

for the preceding tax year determined under Subchapter B [M],

Chapter 5 [~~403~~], Tax [~~Government~~] Code.

(b) The commissioner shall adjust the values reported in the

official report of the State Property Tax Board [~~comptroller~~] as

required by Section 5.09(a), Tax Code, to reflect reductions in

taxable value of property resulting from natural or economic

disaster after January 1 in the year in which the valuations are

determined. The decision of the commissioner is final. An

adjustment does not affect the local fund assignment of any other

school district.

Section 5.24 [~~403.303~~], Tax [~~Government~~] Code.

SECTION 2.132. Sections 42.2522(a) and (d), Education Code,

are amended to read as follows:

(a) In any school year, the commissioner may not provide

funding under this chapter based on a school district's taxable

value of property computed in accordance with Section 5.23(d)(2)

[~~403.302(d)(2)~~], Tax [~~Government~~] Code, unless:

(1) funds are specifically appropriated for purposes

of this section; or

(2) the commissioner determines that the total amount

of state funds appropriated for purposes of the Foundation School

Program for the school year exceeds the amount of state funds

distributed to school districts in accordance with Section 42.253

based on the taxable values of property in school districts

computed in accordance with Section 5.23(d) [~~403.302(d)~~], Tax

[~~Government~~] Code, without any deduction for residence homestead

exemptions granted under Section 11.13(n), Tax Code.

(d) If the commissioner determines that the amount of funds

available under Subsection (a)(1) or (2) does not at least equal the

total amount of state funding to which districts would be entitled

if state funding under this chapter were based on the taxable values

of property in school districts computed in accordance with Section

5.23(d)(2) [~~403.302(d)(2)~~], Tax [~~Government~~] Code, the

commissioner may, to the extent necessary, provide state funding

based on a uniform lesser fraction of the deduction under Section

5.23(d)(2) [~~403.302(d)(2)~~], Tax [~~Government~~] Code.

SECTION 2.133. Section 42.254, Education Code, is amended

to read as follows:

Sec. 42.254. ESTIMATES REQUIRED. (a) Not later than

October 1 of each even-numbered year:

(1) the agency shall submit to the legislature an

estimate of the tax rate and student enrollment of each school

district for the following biennium; and

(2) the State Property Tax Board [~~comptroller~~] shall

submit to the legislature an estimate of the total taxable value of

all property in the state as determined under Subchapter B [M],

Chapter 5 [~~403~~], Tax [~~Government~~] Code, for the following biennium.

(b) The agency and the State Property Tax Board

[~~comptroller~~] shall update the information provided to the

legislature under Subsection (a) not later than March 1 of each

odd-numbered year.

SECTION 2.134. Section 42.257(a), Education Code, is

amended to read as follows:

(a) If the final determination of an appeal under Chapter

42, Tax Code, results in a reduction in the taxable value of

property that exceeds five percent of the total taxable value of

property in the school district for the same tax year determined

under Subchapter B [M], Chapter 5 [~~403~~], Tax [~~Government~~] Code, the

commissioner shall request the State Property Tax Board

[~~comptroller~~] to adjust its taxable property value findings for

that year consistent with the final determination of the appraisal

appeal.

SECTION 2.135. Section 42.259(a)(4), Education Code, is

amended to read as follows:

(4) "Wealth per student" means the taxable property

values reported by the State Property Tax Board [~~comptroller~~] to

the commissioner under Section 42.252 divided by the number of

students in average daily attendance.

SECTION 2.136. Section 42.302(a), Education Code, is

amended to read as follows:

(a) Each school district is guaranteed a specified amount

per weighted student in state and local funds for each cent of tax

effort over that required for the district's local fund assignment

up to the maximum level specified in this subchapter. The amount of

state support, subject only to the maximum amount under Section

42.303, is determined by the formula:

GYA = (GL X WADA X DTR X 100) - LR

where:

"GYA" is the guaranteed yield amount of state funds to be

allocated to the district;

"GL" is the dollar amount guaranteed level of state and local

funds per weighted student per cent of tax effort, which is an

amount described by Subsection (a-1) or a greater amount for any

year provided by appropriation;

"WADA" is the number of students in weighted average daily

attendance, which is calculated by dividing the sum of the school

district's allotments under Subchapters B and C, less any allotment

to the district for transportation, any allotment under Section

42.158 or 42.160, and 50 percent of the adjustment under Section

42.102, by the basic allotment for the applicable year;

"DTR" is the district enrichment tax rate of the school

district, which is determined by subtracting the amounts specified

by Subsection (b) from the total amount of maintenance and

operations taxes collected by the school district for the

applicable school year and dividing the difference by the quotient

of the district's taxable value of property as determined under

Subchapter B [M], Chapter 5 [~~403~~], Tax [~~Government~~] Code, or, if

applicable, under Section 42.2521, divided by 100; and

"LR" is the local revenue, which is determined by multiplying

"DTR" by the quotient of the district's taxable value of property as

determined under Subchapter B [M], Chapter 5 [~~403~~], Tax

[~~Government~~] Code, or, if applicable, under Section 42.2521,

divided by 100.

SECTION 2.137. Section 46.003(a), Education Code, is

amended to read as follows:

(a) For each year, except as provided by Sections 46.005 and

46.006, a school district is guaranteed a specified amount per

student in state and local funds for each cent of tax effort, up to

the maximum rate under Subsection (b), to pay the principal of and

interest on eligible bonds issued to construct, acquire, renovate,

or improve an instructional facility. The amount of state support

is determined by the formula:

FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))

where:

"FYA" is the guaranteed facilities yield amount of state

funds allocated to the district for the year;

"FYL" is the dollar amount guaranteed level of state and

local funds per student per cent of tax effort, which is $35 or a

greater amount for any year provided by appropriation;

"ADA" is the greater of the number of students in average

daily attendance, as determined under Section 42.005, in the

district or 400;

"BTR" is the district's bond tax rate for the current year,

which is determined by dividing the amount budgeted by the district

for payment of eligible bonds by the quotient of the district's

taxable value of property as determined under Subchapter B [M],

Chapter 5 [~~403~~], Tax [~~Government~~] Code, or, if applicable, Section

42.2521, divided by 100; and

"DPV" is the district's taxable value of property as

determined under Subchapter B [M], Chapter 5 [~~403~~], Tax

[~~Government~~] Code, or, if applicable, Section 42.2521.

SECTION 2.138. Section 46.006(g), Education Code, is

amended to read as follows:

(g) In this section, "wealth per student" means a school

district's taxable value of property as determined under Subchapter

B [M], Chapter 5 [~~403~~], Tax [~~Government~~] Code, or, if applicable,

Section 42.2521, divided by the district's average daily attendance

as determined under Section 42.005.

SECTION 2.139. Section 46.032(a), Education Code, is

amended to read as follows:

(a) Each school district is guaranteed a specified amount

per student in state and local funds for each cent of tax effort to

pay the principal of and interest on eligible bonds. The amount of

state support, subject only to the maximum amount under Section

46.034, is determined by the formula:

EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))

where:

"EDA" is the amount of state funds to be allocated to the

district for assistance with existing debt;

"EDGL" is the dollar amount guaranteed level of state and

local funds per student per cent of tax effort, which is $35 or a

greater amount for any year provided by appropriation;

"ADA" is the number of students in average daily attendance,

as determined under Section 42.005, in the district;

"EDTR" is the existing debt tax rate of the district, which is

determined by dividing the amount budgeted by the district for

payment of eligible bonds by the quotient of the district's taxable

value of property as determined under Subchapter B [M], Chapter 5

[~~403~~], Tax [~~Government~~] Code, or, if applicable, under Section

42.2521, divided by 100; and

"DPV" is the district's taxable value of property as

determined under Subchapter B [M], Chapter 5 [~~403~~], Tax

[~~Government~~] Code, or, if applicable, under Section 42.2521.

SECTION 2.140. The heading to Section 552.149, Government

Code, is amended to read as follows:

Sec. 552.149. EXCEPTION: CONFIDENTIALITY OF RECORDS OF

STATE PROPERTY TAX BOARD [~~COMPTROLLER~~] OR APPRAISAL DISTRICT

RECEIVED FROM PRIVATE ENTITY.

SECTION 2.141. Sections 552.149(a), (c), and (d),

Government Code, are amended to read as follows:

(a) Information relating to real property sales prices,

descriptions, characteristics, and other related information

received from a private entity by the State Property Tax Board

[~~comptroller~~] or the chief appraiser of an appraisal district under

Chapter 6, Tax Code, is excepted from the requirements of Section

552.021.

Code [~~403.304~~], so as to assist a property owner or an appraisal

district in a protest filed under Section 5.24, Tax Code [~~403.303~~],

the property owner, the district, or an agent of the property owner

or district may, on request, obtain from the State Property Tax

Board [~~comptroller~~] any information, including confidential

information, obtained by the board [~~comptroller~~] in connection with

the board's [~~comptroller's~~] finding that is being protested.

Confidential information obtained by a property owner, an appraisal

district, or an agent of the property owner or district under this

subsection:

(1) remains confidential in the possession of the

property owner, district, or agent; and

(2) may not be disclosed to a person who is not

authorized to receive or inspect the information.

(d) Notwithstanding Subsection (a) or Section 5.25, Tax

Code [~~403.304~~], so as to assist a school district in the preparation

of a protest filed or to be filed under Section 5.24, Tax Code

[~~403.303~~], the school district or an agent of the school district

may, on request, obtain from the State Property Tax Board

[~~comptroller~~] or the appraisal district any information, including

confidential information, obtained by the board [~~comptroller~~] or

the appraisal district that relates to the appraisal of property

involved in the board's [~~comptroller's~~] finding that is being

protested. Confidential information obtained by a school district

or an agent of the school district under this subsection:

(1) remains confidential in the possession of the

school district or agent; and

(2) may not be disclosed to a person who is not

authorized to receive or inspect the information.

SECTION 2.142. Sections 825.405(h) and (i), Government

Code, are amended to read as follows:

(h) This section does not apply to state contributions for

members employed by a school district in a school year if the

district's effective tax rate for maintenance and operation

revenues for the tax year that ended in the preceding school year

equals or exceeds 125 percent of the statewide average effective

tax rate for school district maintenance and operation revenues for

that tax year. For a tax year, the statewide average effective tax

rate for school district maintenance and operation revenues is the

tax rate that, if applied to the statewide total appraised value of

taxable property for every school district in the state determined

under Section 5.23, Tax Code [~~403.302~~], would produce an amount

equal to the statewide total amount of maintenance and operation

taxes imposed in the tax year for every school district in the

state.

(i) Not later than the seventh day after the final date the

State Property Tax Board [~~comptroller~~] certifies to the

commissioner of education changes to the property value study

conducted under Subchapter B [M], Chapter 5, Tax Code [~~403~~], the

board [~~comptroller~~] shall certify to the Teacher Retirement System

of Texas:

(1) the effective tax rate for school district

maintenance and operation revenues for each school district in the

state for the immediately preceding tax year; and

(2) the statewide average effective tax rate for

school district maintenance and operation revenues for the

immediately preceding tax year.

SECTION 2.143. Section 61.040, Health and Safety Code, is

amended to read as follows:

Sec. 61.040. TAX INFORMATION. The State Property Tax Board

[~~comptroller~~] shall give the department information relating to:

(1) the taxable value of property taxable by each

county and each county's applicable general revenue tax levy for

the relevant period; and

(2) the amount of sales and use tax revenue received by

each county for the relevant period.

SECTION 2.144. Section 1151.1015, Occupations Code, is

amended to read as follows:

Sec. 1151.1015. ASSISTANCE FROM STATE PROPERTY TAX BOARD

[~~COMPTROLLER~~]. The State Property Tax Board [~~comptroller~~] shall

enter into a memorandum of understanding with the department under

which the board [~~comptroller~~] shall provide:

(1) information on the educational needs of and

opportunities for tax professionals;

(2) review and approval of all required educational

courses, examinations, and continuing education programs for

registrants;

(3) a copy of any report issued by the board

[~~comptroller~~] under Section 5.102, Tax Code, and if requested by

the department a copy of any work papers or other documents

collected or created in connection with a report issued under that

section; and

(4) information and assistance regarding

administrative proceedings conducted under the commission's rules

or this chapter.

SECTION 2.145. Sections 1151.1581(b) and (e), Occupations

Code, are amended to read as follows:

(b) The State Property Tax Board [~~comptroller~~] must review

and approve all continuing education programs for registrants.

(e) The State Property Tax Board [~~comptroller~~] may set fees

for continuing education courses and providers of continuing

education courses in amounts reasonable and necessary to cover the

board's [~~comptroller's~~] costs in administering the board's

[~~comptroller's~~] duties under this section.

SECTION 2.146. Section 1151.161(c), Occupations Code, is

amended to read as follows:

examinations required by this section, including the

administration of the examinations. The State Property Tax Board

[~~comptroller~~] must approve the content of an examination accepted,

developed, or contracted for by the department. The department may

require a third-party vendor to collect a fee associated with the

examination directly from examinees.

SECTION 2.147. Section 1151.202(c), Occupations Code, is

amended to read as follows:

Subchapter F, Chapter 51, against a registrant, the department must

consider evidence that the registrant:

(1) attempted in good faith to implement or execute a

law, policy, rule, order, budgetary restriction, or other

regulation provided by the laws of this state, the State Property

Tax Board [~~comptroller~~], or the governing body or the chief

administrator of the appraisal district or taxing jurisdiction that

employs the registrant;

(2) acted on the advice of counsel or the State

Property Tax Board [~~comptroller~~]; or

(3) had discretion over the matter on which the

complaint is based, if the complaint is based solely on grounds that

the registrant decided incorrectly or failed to exercise discretion

in favor of the complainant.

SECTION 2.148. Section 1151.204(c), Occupations Code, is

amended to read as follows:

(1) a matter referred to the department by the State

Property Tax Board [~~comptroller~~] under Section 5.102, Tax Code, or

a successor statute;

(2) a complaint concerning a registrant's failure to

comply with the registration and certification requirements of this

chapter; or

(3) a complaint concerning a newly appointed chief

appraiser's failure to complete the training program described by

Section 1151.164.

SECTION 2.149. Section 1152.204(c), Occupations Code, is

amended to read as follows:

course:

(1) related to property tax consulting services; and

(2) offered or sponsored by a public provider or a

recognized private provider, including:

(A) the State Property Tax Board [~~comptroller~~];

(B) the State Bar of Texas;

(D) an institution of higher education that meets

program and accreditation standards comparable to those for public

institutions of higher education as determined by the Texas Higher

Education Coordinating Board; or

(E) a nonprofit and voluntary trade association,

institute, or organization:

(i) whose membership consists primarily of

persons who represent property owners in property tax or

transactional tax matters;

(ii) that has written experience and

examination requirements for membership or for granting

professional designation to its members; and

(iii) that subscribes to a code of

professional conduct or ethics.

ARTICLE 3. TRANSITION AND EFFECTIVE DATE

SECTION 3.01. (a) On January 1, 2016:

(1) the property tax assistance division of the office

of the comptroller of public accounts is abolished and all powers

and duties of the division are transferred to the State Property Tax

Board;

(2) all obligations, rights, contracts,

appropriations, records, and property of the property tax

assistance division of the office of the comptroller of public

accounts are transferred to the State Property Tax Board;

(3) a rule, policy, procedure, or decision of the

property tax assistance division of the office of the comptroller

of public accounts continues in effect as a rule, policy,

procedure, or decision of the State Property Tax Board, in

accordance with Subdivision (1) of this subsection, until

superseded by a later act of the State Property Tax Board; and

(4) a reference in law to the property tax assistance

division of the office of the comptroller of public accounts or to

the comptroller in a law concerning the former duties of the

division means the State Property Tax Board.

(b) The validity of a form adopted, contract or acquisition

made, proceeding begun, obligation incurred, right accrued, or

other action taken by or in connection with the authority of the

property tax assistance division of the office of the comptroller

of public accounts before it is abolished under Subsection (a) of

this section is not affected by this Act. To the extent those

actions continue to have any effect on or after January 1, 2016,

they are considered to be actions of the State Property Tax Board.

revenue fund with all money received from appraisal districts or

property owners as reimbursement for the board's cost of conducting

performance audits.

(d) All appropriations made to the office of the comptroller

of public accounts to conduct the duties of the property tax

assistance division of that office are transferred to the State

Property Tax Board.

(e) As soon as practicable after the effective date of this

Act, but not later than October 1, 2015, the governor shall make

appointments to the State Property Tax Board. In making those

appointments, the governor shall appoint three members to terms

expiring March 1, 2017, two to terms expiring March 1, 2019, and two

to terms expiring March 1, 2021.

(f) The governor or the person appointed by the governor to

be the chair of the State Property Tax Board may designate a person

to perform ministerial duties necessary for posting notice of and

holding the first meeting of the board.

SECTION 3.02. (a) Not later than November 1, 2015, the

property tax assistance division of the office of the comptroller

of public accounts and the State Property Tax Board shall adopt a

comprehensive transition plan to transfer the powers and duties of

the division to the board under this Act. The comprehensive

transition plan may include an agreement for the provision of

office space, utilities and other facility services, and support

services and for the transfer of information technology as

necessary or appropriate to effect the transfer of the powers and

duties of the division to the board.

(b) Otherwise confidential information shared between the

property tax assistance division of the office of the comptroller

of public accounts and the State Property Tax Board remains subject

to the same confidentiality requirements and legal restrictions on

access to the information that are imposed by law on the entity that

originally obtained or collected the information.

may be shared between the property tax assistance division of the

office of the comptroller of public accounts and the State Property

Tax Board without the consent of the person who is the subject of

the information.

SECTION 3.03. (a) Not later than December 1, 2015, the head

of the property tax assistance division of the office of the

comptroller of public accounts shall meet with the State Property

Tax Board to provide for the transfer of essential personnel to the

board.

(b) The division shall continue, as necessary, to perform

the duties and functions being transferred to the board until the

transfer of agency duties and functions is complete.

SECTION 3.04. The Comptroller's Appraisal Review Board

Manual is renamed the State Property Tax Board's Appraisal Review

Board Manual. Any references to the Comptroller's Appraisal Review

Board Manual mean the State Property Tax Board's Appraisal Review

Board Manual.

SECTION 3.05. This Act applies only to a tax year beginning

on or after the effective date of this Act.

SECTION 3.06. This Act takes effect September 1, 2015.