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By Staples

By Travis Gomez,2015-03-23 08:35
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By Staples

By: Staples S.B. No. 1652

    A BILL TO BE ENTITLED

    AN ACT relating to the administration of ad valorem taxation.

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

    SECTION 1. Section 1.08, Tax Code, is amended to read as

    follows:

    Sec. 1.08. TIMELINESS OF ACTION BY MAIL. When a property owner

    is required by this title to make a payment or to file or deliver

    a report, application, statement, or other document or paper by

    [before] a specified due date, his action is timely if:

     (1) it is sent by regular first-class mail, properly

    addressed with postage prepaid; and

     (2) it bears a post office cancellation mark of a date

    earlier than or on the specified due date and within the specified

    period or the property owner furnishes satisfactory proof that it

    was deposited in the mail on or before the specified due date and

    within the specified period.

    SECTION 2. Section 1.085(b), Tax Code, as amended by Chapters

    984 and 1173, Acts of the 78th Legislature, Regular Session, 2003,

    is reenacted to read as follows:

    (b) An agreement between a chief appraiser and a property owner

    must:

     (1) be in writing;

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     (2) be signed by the chief appraiser and the property owner; and

     (3) specify:

     (A) the medium of communication;

     (B) the type of communication covered;

     (C) the means for protecting the security of a communication;

     (D) the means for confirming delivery of a communication; and

     (E) the electronic mail address of the property owner or person designated to represent the property owner under

    Section 1.111, as applicable.

    SECTION 3. Section 6.05, Tax Code, is amended by adding Subsection (i) to read as follows:

    (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 appraisal 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

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    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 comptroller within 60 days of the approval date.

    SECTION 4. Section 11.161, Tax Code, is amended to read as

    follows:

    Sec. 11.161. IMPLEMENTS OF HUSBANDRY. Machinery and equipment

    items [Implements of husbandry] that are used in the production of

    farm or ranch products or of timber, regardless of their primary

    design, are considered to be implements of husbandry and are exempt from ad valorem taxation.

    SECTION 5. Sections 25.18(a) and (b), Tax Code, are amended

    to read as follows:

    (a) Each appraisal office shall implement the [a] plan for periodic reappraisal of property approved by the board of directors

    under Section 6.05(i) [to update appraised values].

    (b) The plan shall provide for the following reappraisal activities for [of] all real and personal property in the district

    at least once every three years:

     (1) identifying properties to be appraised through

    physical inspection or by other reliable means of identification,

    including deeds or other legal documentation, aerial photographs,

    land-based photographs, surveys, maps, and property sketches;

     (2) identifying and updating relevant characteristics

    of each property in the appraisal records;

     (3) defining market areas in the district;

     (4) identifying property characteristics that affect

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    property value in each market area, including:

     (A) the location and market area of property;

     (B) physical attributes or property, such as size,

    age, and condition;

     (C) legal and economic attributes; and

     (D) easements, covenants, leases, reservations,

    contracts, declarations, special assessments, ordinances, or legal

    restrictions;

     (5) developing an appraisal model that reflects the

    relationship among the property characteristics affecting values

    in each market area and determines the contribution of individual

    property characteristics;

     (6) applying the conclusions reflected in the model to

    the characteristics of the properties being appraised; and

     (7) reviewing the appraisal results to determine value.

    SECTION 6. Section 25.19(b), Tax Code, as amended by Chapters

    1358 and 1517, Acts of the 76th Legislature, Regular Session, 1999,

    is reenacted to read as follows:

    (b) The chief appraiser shall separate real from personal

    property and include in the notice for each:

     (1) a list of the taxing units in which the property is

    taxable;

     (2) the appraised value of the property in the preceding

    year;

     (3) the taxable value of the property in the preceding

    year for each taxing unit taxing the property;

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     (4) the appraised value of the property for the current year and the kind and amount of each partial exemption, if any,

    approved for the current year;

     (5) if the appraised value is greater than it was in the preceding year, the amount of tax that would be imposed on the property

    on the basis of the tax rate for the preceding year;

     (6) in italic typeface, the following statement: "The Texas Legislature does not set the amount of your local taxes. Your

    property tax burden is decided by your locally elected officials,

    and all inquiries concerning your taxes should be directed to those

    officials";

     (7) a detailed explanation of the time and procedure for protesting the value;

     (8) the date and place the appraisal review board will begin hearing protests; and

     (9) a brief explanation that the governing body of each taxing unit decides whether or not taxes on the property will increase

    and the appraisal district only determines the value of the property.

    SECTION 7. Section 312.204(a), Tax Code, as amended by Chapters 560, 640, and 1258, Acts of the 77th Legislature, Regular

    Session, 2001, is reenacted to read as follows:

    (a) The governing body of a municipality eligible to enter into tax abatement agreements under Section 312.002 may agree in

    writing with the owner of taxable real property that is located in

    a reinvestment zone, but that is not in an improvement project

    financed by tax increment bonds, to exempt from taxation a portion

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    of the value of the real property or of tangible personal property located on the real property, or both, for a period not to exceed 10 years, on the condition that the owner of the property make specific improvements or repairs to the property. The governing body of an eligible municipality may agree in writing with the owner of a leasehold interest in tax-exempt real property that is located in a reinvestment zone, but that is not in an improvement project financed by tax increment bonds, to exempt a portion of the value of property subject to ad valorem taxation, including the leasehold interest, improvements, or tangible personal property located on the real property, for a period not to exceed 10 years, on the condition that the owner of the leasehold interest make specific improvements or repairs to the real property. A tax abatement agreement under this section is subject to the rights of holders of outstanding bonds of the municipality. An agreement exempting taxable real property or leasehold interests or improvements on tax-exempt real property may provide for the exemption of such taxable interests in each year covered by the agreement only to the extent its value for that year exceeds its value for the year in which the agreement is executed. An agreement exempting tangible personal property located on taxable or tax-exempt real property may provide for the exemption of tangible personal property located on the real property in each year covered by the agreement other than tangible personal property that was located on the real property at any time before the period covered by the agreement with the municipality, including inventory and supplies. In a municipality that has a

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    comprehensive zoning ordinance, an improvement, repair, development,

    or redevelopment taking place under an agreement under this section

    must conform to the comprehensive zoning ordinance.

    SECTION 8. Sections 1.085(e) and (f), as added by Chapter 984, Acts of the 78th Legislature, Regular Session, 2003, are repealed.

    SECTION 9. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2005.

    (b) Section 4 of this Act takes effect January 1, 2006.

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