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Bills Passed in the 2007 Session of the Texas Legislature Current as of September 13, 2007 By Robert Mott, Yolanda Humphrey & Jason Bailey Perdue, Brandon, Fielder, Collins & Mott, L.L.P. Bills are organized by subject matter. After each bill summary, there is a comment about the status of the bill and a link to the full text of the law. All references to section numbers are to the Texas Tax Code unless otherwise indicated. Some bills are listed several times because they addressed multiple subjects. Appraisal District Organization & AuthorityCHIEF APPRAISER COMPENSATION MAY NOT BE TIED TO VALUATION INCREASE This bill provides that a chief appraiser's compensation may not be directly or indirectly linked to an increase in the total market, appraised, or taxable value in the appraisal district. Status: Signed by Governor; Effective 5/25/07. LEGISLATOR'S, FEDERAL AND STATE JUDGE'S HOME ADDRESS CONFIDENTIAL This bill adds to the present list in the tax code, making the addresses of current and retired state district judges, state county court at law judges and federal judges (including federal district judges, bankruptcy judges, magistrates) confidential on request. Status: Signed by Governor; Effective 9/1/07. COMMUNITY SUPERVISION & CORRECTIONS OFFICERS HOME ADDRESS PROTECTED FROM DISCLOSURE IN TAX RECORDS AND OTHER GOVERNMENTAL RECORDS This bill protects the home addresses of officers and employees of the county community supervision and corrections department from disclosure. Status: Signed by Governor; Effective 9/1/07 PROSECUTOR'S EMPLOYEES IN CRIMINAL AND CHILD PROTECTION MATTERS HOME ADDRESS CONFIDENTIAL This bill adds to the present list in the tax code, making the addresses of the present and former employees of a district attorney, criminal district attorney, county or municipal attorney confidential on request, if the jurisdiction of the public attorney includes any criminal law or child protective services matters. Also, former peace officers resident addresses are made confidential. Status: Signed by Governor; Effective 6/15/07. CHIEF APPRAISER MAY NOT PRIVATELY COMMUNICATE WITH MEMBERS OF THE BOARD OF DIRECTORS REGARDING VALUATION OF PROPERTIES This bill makes it a misdemeanor for the chief appraiser to communicate with members of the board of directors of the appraisal district concerning appraisals of property unless such communications occur in an open meeting, an executive session of the appraisal district board of directors with the district's attorney concerning pending litigation in which the chief appraiser's presence is necessary for full communication between the board and the attorney, or another public forum.. These offenses are class C misdemeanors. Communications between the chief appraiser and the county tax assessor-collector do not violate this section if the communication relates to the administration of the appraisal roll, including a correction, certification or collection of an account. Status: Signed by the Governor; Effective 9/1/07 COUNTY LINE BECOMES APPRAISAL DISTRICT BOUNDARIES This bill makes the county line the boundary for all appraisal districts. It does not prohibit the operation of two appraisal districts jointly by interlocal contract. The bill requires that when a single real property is split by county boundaries, the two chief appraisers are to cooperate to make certain that the whole property is appraised at market value. Status: Signed by Governor; Effective 1/1/08. **Elections of new board members will be conducted under new boundaries. This means that the voting entitlement for each taxing unit will be calculated only on the taxes imposed by that taxing unit within the county boundaries in 2006. Directors with staggered terms will have their term end 1/1/08 and their replacements will be appointed after 1/1/08 by the board of directors from a slate of nominees from the taxing units. 2008 budgets will be based on levies within the county lines of each appraisal district for 2007. This change in law may conflict with many locally decided systems for selecting board members pursuant to Section 6.031 of the Property Tax Code. SALES INFO RECEIVED BY CAD NOT SUBJECT TO OPEN RECORDS This bill exempts sales information, property descriptions, or related information received from a private entity by an appraisal district or the comptroller from disclosure pursuant to the public information act. The bill is intended to reverse an attorney general's opinion that held that MLS data was not subject to confidentiality. There are two exceptions to confidentiality: one for appraisal district information and one for comptroller information. Appraisal districts are still subject to the requirements of 41.461, which requires production of "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". In addition, however, this new amendment to the open records act adds, "and a copy of each item of information that the chief appraiser took into consideration but does not plan to introduce at the hearing on the protest." Also, a property owner may obtain, "comparable sales data from a reasonable number of sales that is relevant to any matter to be determined by the appraisal review board at the hearing on the property owner's protest." Once an owner or tax agent have this confidential information, it remains confidential and cannot be disclosed or used except at the hearing on the property. This suggests that owners or agents cannot compile confidential information obtained from the appraisal district and use it in other work without violating the confidentiality statute. The other exception is to the confidentiality of information held by the comptroller to perform the school value study. This information, whether confidential or not, must be disclosed to a property owner, school district, appraisal district or an agent of a property owner or a district to assist them in protesting the comptroller's preliminary value findings. Such information in the hands of the requesting party may not be disclosed to a person who is not authorized to receive or inspect the information. Status: Signed by Governor; Effective 6/15/07. CHIEF APPRAISER MUST PROVIDE ESTIMATED VALUES TO CITIES AND COUNTIES AS WELL AS SCHOOLS This bill requires that the chief appraiser provide estimated taxable values to counties and cities as well as schools by June 7. And the chief appraiser shall assist any taxing unit by providing information in support of its budgetary process. However, the city or county may waive the chief appraiser's estimate or assistance. Status: Signed by Governor; Effective 1/1/08. CHIEF APPRAISER CANNOT BE TAXPAYER LIAISON This bill prohibits the chief appraiser or any other person who performs appraisal services for the appraisal district for compensation from serving as the taxpayer liaison. Status: Signed by Governor; Effective 9/1/07. APPRAISAL NOTICES/PROTESTS ON RESIDENCE HOMESTEADS This bill requires the chief appraiser to mail appraisal notices on residence homesteads by April 1 or as soon thereafter as practicable, instead of by May 1. The bill then includes two provisions on the deadline for residence homeowners, but it ends up that they have the same filing deadline as anyone else: before June 1 or 30 days after the notice is delivered. This bill was amended to include two other bills regarding failure of notice protests pursuant to 41.411 and school tax bills. These two topics are treated separately below. Status: Signed by Governor; Effective 1/1/08. BOARD OF DIRECTORS MAY WAIVE LATE PAYMENT PENALTIES FOR TAXING UNITS This bill authorizes the appraisal district to waive penalties and interest on late CAD payments by taxing units for good cause shown. An appraisal district may refund penalties and interest received prior to the effective date of the act if the board of directors acts to waive penalties and interest on that payment . Status: Signed by Governor, 5/14; Effective 5/14/07. APPRAISAL NOTICES MUST INFORM HOMEOWNERS OF RIGHT TO CLAIM HOMESTEAD This bill, as amended, requires that a 25.19 appraisal notice include a statement explaining the individual's right to claim a homestead. This special notice needs to be sent only to those property owners whose residential property address is the mailing address of the property owner and whose property does not have a homestead exemption. A copy of the homestead exemption application must also be included. The statement is a long paragraph and must appear in bold-faced 12 point type. Status: Signed by Governor; Effective 1/1/08. Renditions & Sales Disclosures SAME AS LAST YEARS RENDITION AUTHORIZED This bill authorizes an individual to check a box on the rendition form that states that the information in the previous rendition filed by the property owner is still accurate. This will satisfy the property owner's obligation to render. The comptroller will amend all forms to provide for this item of the rendition forms. Status: Signed by Governor; Effective 1/1/08. ANOTHER SPECIFIC METHODOLOGY FOR APPRAISAL OF OIL AND GAS/SITUS FOR LAND-BASED OIL DRILLING RIGS REVISITED This bill requires that the price used in a forecast of oil and gas revenues be the average monthly price from a property for the previous year times a market condition factor. The market condition factor is the comptroller's current average price forecasted for revenue purposes divided by the current actual state wide average price. Escalation of future prices for the second and subsequent years shall reflect the same increase or decrease projected for that year by the comptroller for revenue estimating purposes. This bill was amended to add a provision addressing the situs of portable land-based drilling rigs for oil and gas. Under the present law, as amended in the school finance special session last year, portable drilling rigs were taxable at their actual location on January 1 if located there for the previous 365 calendar days. If not, then the rigs were taxable at the principal place of business of the owner. This bill creates an exception to the taxation at the principal place of business of the owner if the property owner renders any one drilling rig at its January 1 location when it would have been taxable at the principal place of business, then all the owner's drilling rigs are taxable at their actual location on January 1 of that year. In addition, if an owner does not have a principal place of business in Texas, those drilling rigs are taxable at their actual location on January 1. Status: Signed by Governor; Effective 1/1/08. RESIDENTIAL LAND ADJOINING AG LAND TO BE APPRAISED AS IF SOLD TOGETHER This bill provides that a residence homestead located contiguous to an agricultural tract will be appraised as if both sold together and city sales will not apply. The bill applies this principle by requiring that residence homestead property located contiguous to ag-use property owned by the same person, their spouse, a parent or child or a legal entity affiliated with the owner be appraised as if the related parcels would sell together and total sale price were allocated on the basis of the proportion that the size of the homestead bears to the total combined parcel. If the chief appraiser uses the market data comparison method to value the land, sales of property located within a city limits may not be used. This bill also specifies that land that secures a home equity loan may not be qualified for agricultural use designation. The bill also clarifies that property used for residential purposes or another purpose inconsistent with agricultural use is not included in the definition of agricultural use. This bill was also amended to change the law relating to the notice of appraised value sent to potential residence homesteads and to truth in taxation. Please see the same bill number in Appraisal Districts and Truth in Taxation. Status: Signed by Governor; Effective 1/1/08. LIMITATION ON THE MAXIMUM PERCENTAGE INCREASE IN APPRAISED VALUE OF RESIDENCE HOMESTEAD The number of years since the most recent tax appraisal no longer affects the maximum increase in the appraised value of a residence homestead. The new cap will be 110% of the previous year's value , instead of an additional 10% per year since the last reappraisal. The bill also redefines new value that can be added to the cap to be the amount of a new improvement added since the property was last appraised, instead of the amount since the preceding year. Status: Signed by Governor; Effective 1/1/08 if constitutional amendment passes. ADJUSTMENTS TO OVER 65/DISABLED TAX CEILINGS FOR TAX RATE REDUCTION For 2007, for taxpayers who qualified for the tax ceiling prior to 2006, the 2005 school tax amount is multiplied by a fraction, the numerator of which is the 2006 tax rate and the denominator of which is the 2005 tax rate (or 1, if the fraction is greater than 1). Then add to this the sum of the 2006 tax rate on any new improvements made to the residence during 2005. Then multiply the sum of these two items by a fraction, the numerator of which is the 2007 tax rate and the denominator of which is the 2006 tax rate (or 1, if the fraction is greater than 1). Then add to this sum the 2007 tax rate times any new improvements made during 2006. And voila, you have the 2007 tax ceiling. For all other years, the previous year's freeze amount is to be multiplied by the fraction consisting of the current year's tax rate divided by the previous year's tax rate (or 1, if the fraction is greater than 1), but new improvements are to be added to this amount. Schools will be compensated for the additional revenue lost due to this adjustment by changes made to the comptroller's wealth study. In fact, the comptroller is to treat the 2007 losses in value as though they occurred in 2006. Status: HB 5 signed by Governor; Earliest effective date 5/4/07; SJR passed by the voters, so this is now law. LEASEHOLD INTEREST IN RURAL RAILROAD DISTRICT AND COUNTY OWNED TRANSPORTATION FACILITIES EXEMPTED This bill exemption leasehold interests in a rail facility owned by a rural railroad district established by Article 6550c of the Texas Civil Statutes. As amended, it now also exempts leasehold interests in a public transportation facility owned by a county. Status: Signed by Governor; Effective 1/1/08. EXEMPTION OF TANGIBLE PERSONAL PROPERTY IN TRANSIT This bill started as a bracket bill for El Paso, but now has state-wide implications. This bill implements a constitutional amendment passed several years ago. Taxing entities may tax the "goods-in-transit" that are exempted by the section by passing a resolution making them taxable for the following year. Such action must be taken before December 31, 2007 in order to tax the property for 2008. Without such action by a taxing unit, all such property will be exempt. The bill specifically exempts goods acquired inside or outside the state, detained at a facility in which the owner of the goods has no direct or indirect ownership of the facility, detained for assembling, storing, manufacturing, processing, or fabricating purposes by the person who acquired or imported the property, and then shipped to another location in or out of this state within 175 days. The goods do not include oil, gas or petroleum products or special inventories with special appraisal provisions, such as automobile dealer inventories, etc. This bill otherwise operates exactly like the Freeport statute. Status: Signed by Governor; Effective 1/1/08 PERSONAL VEHICLE USED FOR WORK AND PRODUCTION IS EXEMPT This bill exempts one passenger vehicle or light truck used in a person's occupation or profession and also used for personal activities. It does not apply to vehicles used to transport persons for hire. The bill also removes the language that requires a person to render such property if that person has applied for an exemption or been granted the exemption. The bill did not address the exemption application process, so the general rules apply (11.43) apply and an annual application will be required, since this section was not made an exception to the annual application requirement. For the 2007 year, an individual may apply for exemption for the 2007 year until April 1, 2008. Status: Signed by Governor; Effective for 2007 tax year if constitutional amendment passes in November. MOBILE HOME HOMESTEAD EXEMPTIONS This bill qualifies the requirement that a person's application for a homestead exemption be accompanied by a copy of the statement of ownership and location from the state or a copy of a purchase agreement. If the Texas Department of Housing and Community Affairs web site contains a photostatic copy of the title page for the mobile home, the appraisal district may rely upon the web site for verification of ownership. This bill also states that a property owner is entitled to obtain the homestead exemptions regardless of whether the owner has elected to treat the home as real property or personal property and regardless of whether the home is listed on the tax rolls with the real property to which it is attached or separately. Status: Signed by Governor; Effective 1/1/08 SPECIAL BILL TO RATIFY ABATEMENTS IN DALLAS This bill ratifies some abatements enacted by the Dallas County Utility and Reclamation District and authorizes an abatement of part of the tax rate, up to 60 cents. Status: Signed by Governor; Effective 6/15/07. CHODO EXEMPTION AVAILABLE AFTER FORECLOSURE SALE This bill provides that a CHODO exemption granted under 11.182 does not terminate automatically if the property is sold to another party after a foreclosure sale. To qualify, the new owner must provide evidence to the chief appraiser by the 30th day after the sale date that the property still qualifies pursuant to 11.182 (b)(1), (2), and (4). Status: Sent to Governor, 5/23; Effective upon Governor's signature. EXEMPTION OF LAND BANKS This bill amends the charitable exemption statute to provide for the exemption of property held by an organization acquiring, holding and transferring vacant land for a land bank demonstration program authorized by statute. Status: Signed by Governor; Effective 9/1/07. EXEMPTION OF CERTAIN TRAVEL TRAILERS FROM AD VALOREM TAXATION This bill exempts trailer type units from ad valorem taxing by excluding units designed to be used primarily as temporary living quarters in connection with recreational, camping and seasonal use from the definition of "manufactured home." Status: Signed by Governor; Effective 1/1/08 HB 2087 RESTRICTION ON FREQUENCY OF PETITION-INITIATED ELECTION TO ESTABLISH FREEZE ON COUNTY, MUNICIPAL, OR JUNIOR COLLEGE DISTRICT TAX ON HOMESTEADS OF DISABLED AND ELDERLY This bill prohibits a county, municipality or junior college district that has held at least two petition initiated elections within a 36 month period to establish ceilings on tax increases on residential homesteads of disabled and elderly from holding another election before the third anniversary of the more recent of the two elections. The bill provides that it does not, however, prevent any of these entities from imposing the limitation on their own or holding elections on the initiative of the governing body. Status: Vetoed TIRZ/TIF ZONE MAY BE ESTABLISHED IF LAND USED IN MASS TRANSIT RAIL This bill authorizes a municipality to designate land as blighted without making the customary findings if the land is to be used in a mass transit rail project or as supporting property for such a project. Status: Signed by Governor; Effective 6/15/07. MINOR CHANGES TO WATER AND STEAM PROVIDERS EXEMPTION This bill changes the statute allows a non-profit organization devoted primarily to providing chilled water and steam to medical facilities to qualify for exemption. Status: Signed by Governor; Effective 1/1/08. NUCLEAR POWER PLANTS and Integrated gasification combined cycle technology ELIGIBLE FOR ABATEMENT/SCHOOL VALUE LIMITATION This bill makes nuclear power plants and power plants using integrated gasification combined cycle technology eligible for abatement and the school appraisal value limitation. These changes validate actions already taken by some local governments and also provide for abatements and limitations for nuclear projects that may not begin for up to seven years after the commitment by the local government to abatement or limitation. Status: Signed by Governor; Effective 6/15/07. CHODO EXEMPTION % VARIES WITH RENTALS VS. SALES This bill would exempt CHODO property used to rent at the present 50%, but property used to provide permanent homes for low income persons would be at a 100% exemption. Status: Signed by Governor; Effective 1/1/08. DPS TO PROVIDE NAMES OF PEOPLE TURNING 65 TO CHIEF APPRAISER TO AUTOMATICALLY GRANT OVER 65 HOMESTEAD This bill requires the Texas Department of Public Safety to provide each chief appraiser, without charge, the basic information about everyone who turned 65 years old during the year. This information is to be provided at the end of each year and the chief appraiser is to automatically grant over 65 homestead exemptions. Status; Signed by Governor; Effective 6/15/07. ADVANCED CLEAN ENERGY PROJECTS ARE ELIGIBLE FOR POLLUTION CONTROL EXEMPTION AND FOR SCHOOL TAX LIMITATIONS This bill adds an extensive list of technologies that will become eligible for property tax exemption as pollution control equipment. The bill also authorizes the Texas Commission on Environmental Quality to expand upon this list of emerging technologies. It also provides for rollback protection for the loss of revenue to local governments due to the granting of pollution control exemptions of clean energy projects. This bill also makes advanced clean energy projects subject to school tax limitations. Status: Signed by Governor; Effective 9/1/07.: AUTHORIZATION TO EXEMPT DISABLED VETERAN HOMESTEADS This constitutional amendment authorizes the legislature to exempt all or part of the residence homestead of a disabled veteran. The enabling legislation did not pass. Status: Passed; Effective 1/1/08 if approved by the voters. LAND USED FOR WILDLIFE MANAGEMENT UNDER CONSERVATION EASEMENT Under this bill, land devoted principally to preserve an endangered species or to compensate for environmental damage under a specific federal statute qualifies as open-space land regardless of the manner in which the land was used in the preceding year. Status: Signed by Governor; Effective 1/1/08. SPECIAL REVALUATION OF AG-LAND SUBJECT TO TICK INFESTATION This bill would provide for the revaluation of ag-use property if the property is made subject to a temporary quarantine for ticks by the Texas Animal Health Commission. The property is to be reappraised by the chief appraiser in mid-year and taxes are to be prorated based on the change in value. The chief appraiser is to take into account the impact of the tick infestation on the ag-value of the land. The reduced value is to be the lesser of the market value as determined by the chief appraiser or ½ the previous appraised value. The reappraised value is to be entered on the rolls and the taxes prorated for that year. The owner is to notify the chief appraiser within 30 days after the quarantine is lifted by the TAHC, and the property owner will be penalized for 10% if the owner fails to report the change. Status: Signed by Governor; Effective 6/15/07. TAXPAYER RIGHT TO POSTPONEMENT OF ARB HEARING; STANDARD FOR POSTPONEMENT IS REDUCED; LARGE CAD'S MAY EXTEND ROLL APPROVAL DEADLINE OR PROVIDE FOR APPROVAL AT 90% The board of directors of an appraisal district with a population of at least one million may adopt a resolution extending the date for approval of the appraisal records by the appraisal review board from July 20 to a date not later than August 30; or the board of directors may provide for appraisal review board approval of the records at 90% instead of the current 95%. Furthermore, the 90% is defined as the value of unresolved protests divided by the total appraised value of all properties. This bill gives each property owner, who has not designated a tax agent, the right to one postponement without cause. After that, the property owner is entitled to a postponement for "reasonable" cause instead of "good" cause. A request by a property owner for a postponement under this subsection may be made in writing, including by facsimile transmission or electronic mail, by telephone, or in person to the appraisal review board, a panel of the board, or the chairman of the board. The chairman or the chairman's representative may grant, but may not deny, a postponement under this subsection without the necessity of action by the full board. The granting by the appraisal review board, the chairman, or the chairman's representative of a postponement does not require the delivery of additional written notice to the property owner. If the property owner and the chief appraiser cannot agree to a new date, the board may set the subsequent hearing not less than 5 nor more than 30 days after the original hearing date. Status: Signed by Governor; Effective 1/1/08. HIGHER BURDEN OF PROOF WHEN PROPERTY OWNER PRESENTS PREVIOUSLY PERFORMED FEE APPRAISAL/HIGHER PENALTIES FOR CONTINGENT FEE AGENTS WHO SUBMIT FALSIFIED APPRAISALS This bill provides that if a property owner provides an appraisal of the property by a licensed fee appraiser at least 14 days prior to a hearing, then the chief appraiser must establish the property's value by clear and convincing evidence instead of by a preponderance of the evidence. The appraisal must be submitted with a sworn statement that it's value conclusion was valid for January 1 of the tax year, that it was made incompliance with the appraisal techniques in Chapter 23 of the Tax Code and was made in compliance with USPAP.. The appraisal must have been done at least 180 days before the hearing date. The change in the burden of proof applies only in cases in which the property is less than $1 million dollars in market or appraised value. Otherwise, the burden of proof remains by the preponderance of the evidence. In addition, this bill makes the offence of tampering with a government record (which includes falsified data) a Class B misdemeanor if the person who submits the falsified appraisal report has a contingency interest in the outcome of the ARB hearing. Status: Signed by Governor; Effective 9/1/07. DATE FOR TAX PAYMENT EXTENDED FOR FAILURE OF NOTICE PROTESTS What this bill intends to do is to extend the deadline for filing a 41.411 notice of protest when tax bills have been delivered late. Keep in mind that section 31.01(a) requires that tax bills be sent by October 1 or as soon thereafter as practicable. There are 123 days after October 1 until February 1. A property owner may file a 41.411 protest claiming the failure to receive notice after the date the taxes would have gone delinquent, but within 125 days after the property owner claims to have received written notice of the taxes due on the property. If the property owner files such a late 41.411 protest, the owner is entitled to an ARB hearing solely on the question of whether the taxing units timely delivered a bill. At the hearing the ARB is to determine whether all taxing units failed to timely deliver the tax bill on the protested property or properties. If the ARB determines that all taxing units failed to timely deliver the tax bill, then the ARB will determine the date on which at least one taxing unit first delivered written notice of the taxes on the property. The deadline for compliance with 42.08 (tendering the amount of taxes due) for the 41.411 protest will be 125 days after the date the ARB determines is the first date that any taxing unit sent the property owner a bill. [The law actually states delivers the tax bill, but keep in mind that section 1.07(c) states that a tax notice or bill is presumed delivered on the date it is placed in the mail.] Status: Signed by Governor; Effective 1/1/08. PRIORITY FOR PROPERTY TAX APPEALS IN COUNTIES OF < 657,000 POPULATION This bill would add appraisal district appeals to the list of lawsuits with priority for trial settings in counties with less than 175,000 population. Status: Signed by Governor, 5/11; Effective 9/1/07. CHIEF APPRAISERS CANNOT APPEAL ANYTHING WITH LESS THAN $1 MILLION IN VALUE IN CONTROVERSY This bill prohibits a chief appraiser from appealing any matter in which at least $1 million dollars in value is in controversy. This applies to both value appeals and any other matter. The sole exception is in the case where the taxpayer committed fraud, made a material misrepresentation, or presented fraudulent evidence in the hearing before the board. In such cases, the chief appraiser may appeal, but the court will first determine if such fraud occurred. If the court finds that no fraud was committed, then the lawsuit will be dismissed and the appraisal district will be liable for reasonable attorney fees and costs. The bill also states that when a property owner appeals and tenders less than the full amount of taxes, the owner must accompany the lawsuit with a letter stating how much they are going to pay. Status: Signed by Governor; Effective 6/15/07. TAX BILL NOT REQUIRED TO MORTGAGOR Under this bill, if a tax bill is mailed to the mortgagee of a property, then an additional notice is not required to be sent to the mortgagor or to his/her authorized agent. This applies to bills mailed after the effective date. Status: Signed by Governor; Effective 9/1/07 TAX CERTIFICATE REQUIRED FOR REPLAT/CONDIMINIUM PLAT This bill requires an official tax certificate from each taxing unit prior to the filing of a replat. The bill also provides that a tax certificate must be obtained for a condominium plat to be filed. Status: Signed by Governor; Effective 9/1/07. EXTENSION OF DEADLINE FOR APPLICATION OF REFUND This bill allows the governing body of a taxing unit to extend the time that a taxpayer has to apply for a refund of an overpayment or an erroneous payment of taxes after a showing of good cause. The extension may be up to two years. The bill clarifies that this change in law is not applicable to refunds that are generated by appraisal lawsuits or motions to correct. These refunds are governed by other law. Status: Signed by Governor; Effective 6/15/07. MOBILE HOME HOMESTEAD COLLECTIONS PLUS This bill requires that tax collectors enter into an escrow agreement with any mobile home owner who wants such an agreement for payment of taxes on their mobile home. This bill permits the enforcement of a tax lien against a mobile home for which the lien was properly recorded with the state under the law in existence at the time of recordation. Furthermore, this bill prohibits the enforcement of a properly record lien against a person who purchased the mobile home from a retailer in the ordinary course of business. The bill also forbids the transfer of ownership of a mobile home unless the properly recorded tax liens have been satisfied and released and unless the property taxes on the mobile home that accrued on each January 1 during the 18 months preceding the sale. This bill prohibits the use of tax warrants or seizures of mobile homes unless a tax lien has been properly recorded with the state. The bill states that a taxpayer may designate which year a payment is to be applied to. When a taxpayer has paid a full year, the collector shall issue a receipt for that year. [This change in law is not limited to mobile home owners.] When a mobile home is omitted from the tax roll and is subsequently supplemented, the tax lien may be filed with the state within a 150 day time period following the date the tax becomes delinquent. If a tax has not been imposed on a mobile home at the time of transfer, the tax collector shall estimate the amount of taxes due by multiplying the most recent appraised value for the home by the preceding year's tax rate. The tax collector shall notify the state that an estimate has been made and shall notify the owner at the time of payment that the amount is just an estimate and may be raised once the appraisal rolls have been certified. Status: Signed by Governor; Effective 1/1/08 SPLIT PAYMENTS OF TAXES FOR GALVESTON COUNTY This is a bracket bill, applying only to Galveston County. It permits the taxing units in Galveston County whose taxes are collected by a taxing unit that allows early payment discounts to have the option to not allow early payment discounts. Status: Signed by Governor; Effective 6/15/07. WAIVER OF P&I IF TAX OFFICE MOVES This bill provides that a taxing unit governing body may waive p&i if the property owner can show they mailed the tax payment to the former address for payment of taxes, which had changed addresses in the last year. This bill will apply to circumstances when a taxing unit changes tax offices due to consolidation. Status: Signed by Governor; 6/15/07. FOR 2007, SCHOOL TAX BILLS TO SHOW TAX SAVINGS This bill requires that the tax bill or a separate statement show the amount of M&O taxes that would have been imposed by applying the 2005 school tax rate to the current value, the amount that is imposed by the current rate, and the difference, which must be labeled: ""Estimate of school district maintenance and operations property tax savings attributable to House Bill No. 1, Acts of the 79th Legislature, 3rd Called Session, 2006, and appropriations of state funds by the 80th Legislature." This requirement then self destructs and does not apply to future years. Status: Signed by Governor; Effective generally 1/1/08, but the section regarding 2007 tax bills is effective for 2007 school tax bills and expires 1/1/08. TAX SALES CAN BE CONDUCTED IN SOLIDO This bill applies to the alternative method of foreclosing on abandoned real property. This is now a bracket bill. If for a city of 100,000 population or more in two or more counties having 1 million or more in population, in a subdivision having an average lot size of 1/10 or an acre or more, these parcels now need only be delinquent for 5 years instead of 10 years to qualify for this expedited treatment. Furthermore, if the petition in the tax suit so designates, multiple properties may be sold in solido, or as a whole. Status: Signed by Governor; Effective 9/1/07 PERSONAL PROPERTY MAY BE SEIZED FOR CURRENT TAXES IF ABOUT TO BE SOLD AT LIQUIDATION SALE This bill authorizes the tax collector to seize personal property when it is about to be sold in a liquidation sale in connection with the cessation of business. Presently, personal property may only be sold for current taxes when it is about to leave the county. Status: Signed by Governor; Effective 9/1/07. TAX LIEN TRANSFERS MADE EASIER Changes the requirement that the collector certify the tax lien transfer on a "sworn document" to certifying the transfer on a certified statement. If the transfer is for both current and delinquent years, the collector must certify the transfer of the lien on one document. The collector shall identify the date of the transfer of the tax lien on the property owner's account in a "discrete field." The collector shall be given notice of the release of the tax lien. The property owner must be informed that if they are over 65 that they maybe entitled to a deferral, and provides that the Finance Commission of Texas shall prescribe the form and content of a disclosure statement that must be given to the property owner before the tax lien is transferred. Gives the property owner and the first lien holder additional notice protections and a two year right of redemption. Status: Signed by Governor; Effective 9/1/07. TAX LIEN TRANSFER TO BE LICENSED This bill enacts a process for licensing and regulating those who loan money pursuant to the property tax lien transfer statutes. Status: Signed by Governor; Effective 9/1/07. DEFERRAL AND ABATEMENT NOTICE NOT REQUIRED ON COMMUNICATIONS THAT RELATE TO TAXES THAT ARE EXCLUSIVELY PERSONAL PROPERTY OR A MINERAL INTEREST The notice requirement of entitlement to over-65 and/or disability deferral is required to be sent only to properties that may qualify as a residence homestead. Also, the deferral notice has been modified to state that the person must occupy the residence as their residence homestead. Status: Signed by Governor; Effective 9/1/07 STATEMENT IN NOTICES; SEPARATE VOTE IF BUDGET REQUIRES MORE REVENUE FROM TAXES THAN PRIOR YEAR This bill does not affect Tax Code provisions or truth in taxation, but does very precisely direct how budgets are handled and adopted. This bill requires that all notices of budget hearings for cities and counties contain a statement of the amount and percentage by which property tax revenues exceed the previous year when a budget will raise more revenue from property taxation than in previous year. The bill also clarifies that a vote for a budget that will raise property tax revenues must be separate from the vote to adopt a tax rate. Status: Signed by Governor; Effective 9/1/07. NOTICE OF TAX RATE ADOPTION CHANGED This bill provides that the notice of the meeting at which the vote on the tax rate will be held will be revised to show the total tax revenue to be raised at last year's tax rate, the total tax revenue to be raised at the proposed tax rate if new property is excluded, and the total tax revenue to be raised at the proposed tax rate if new property is included. Status: Signed by Governor; Effective 1/1/08. ALSO TWO HEARINGS HELD FOR TAX RATE; NOTICE OF REVENUE AND OTHER CHANGES This bill was amended to add provisions that will change the notice of public meetings to consider increases in the tax rate, require two meetings on the subject, and revise the notices. The notice of public meeting on tax increase will be totally revised. It will provide the amount of taxes imposed on the average homestead value for the preceding year and the preceding year's tax rate, the amount of taxes that would be imposed on the average homestead value if the district adopted the effective tax rate and the amount of taxes that would be imposed on the average homestead if the proposed tax rate is adopted. All the present requirements will be repealed. The repealed provisions include the comparison of the proposed budget with the previous year's budget, the total appraised value and taxable value, the amount of outstanding debt, etc. In addition, the notice of the meeting at which the vote on the tax rate will be held will be revised to show the total tax revenue to be raised at last year's tax rate, the total tax revenue to be raised at the proposed tax rate if new property is excluded, and the total tax revenue to be raised at the proposed tax rate if new property is included. Status: Signed by Governor; Effective 1/1/08. REMOVAL OF LICENSE PLATES ON USED CARS This bill requires dealers to remove the license plates and registration from any used car they purchase. The bill authorizes persons who are not dealers to remove license plates and registration from any can they sell. The removed license plates may be disposed of or may be transferred to another dealer. The fee for transferring license plates to another vehicle owned by the seller and for obtaining a new registration for the vehicle is $5. The purchaser may obtain a one-trip, five-day permit from TXDOT to drive the vehicle from which the license plate and registration have been removed. Status: Signed by Governor; Effective 1/1/08. CREATION OF HOMESTEAD PRESERVATION DISTRICTS This bill creates homestead preservations districts to promote homes for those who can't afford to rent or own in the open market. These districts will be created by cities and funded by tax increment financing. Status: Signed by Governor; Effective 9/1/07. LIMITATION ON ANNEXATION OF AG OR WILDLIFE AG LAND This bill requires that a city seeking to annex land that is the subject of a development agreement under a state statue and qualifies for ag-use or wildlife-ag use offer an agreement to the landowner which would preserve extraterritorial jurisdiction status and preserve the open space status of the land. If owner refuses, city can annex. Status: Signed by Governor; Effective 5/25/07. AUTHROIZES VOTE ON USE OF TAX FUNDS FOR SPORTS VENUES Adds 34.008 Local Gov't Code This bill authorizes a municipality or county to hold an election on the question of whether to use tax revenue for sports venue financing. Status: S Signed by Governor; Effective 9/1/07. TAX AGENTS MAY WORK FOR ATTORNEYS This bill makes it permissible for a registered property tax consultant to work in association with an attorney who has successfully completed the senior property tax consultant exam in addition to a senior property tax consultant. Status: Signed by Governor; Effective 9/1/07. TAXING UNITS MAY LOAN MONEY TO TAX INCREMENT FINANCING DISTRICTS This bill authorizes taxing units to lend money to TIF/TIRZ boards. Status: Signed by Governor; Effective 5/23/07. SMALL CITIES MAY LIMIT TAXES ON CERTAIN ANNEXED AREAS This bill and constitutional amendment provide that cities with populations of less than 10,000 may call an election to authorize the city to abate increases on values for adjacent acreage to be annexed into the city. The property must be involved in certain Department of Agriculture programs. The abatement on increases in value may be for a period not to exceed five years, however if the owner who received the abatement sells it, the abatement is terminated. Status: Signed by Governor; Effective 1/1/08 if constitutional amendment passes. ADJUST COMPTROLLER'S STUDY FOR INEQUALITY DECISIONS BY ARB This bill states that the comptroller shall appropriately adjust the findings of the ratio studies for appraisal review board decisions based upon inequality of appraisal. Status: Signed by Governor; 6/15/07. EFFECT OF FAILURE OF REQUESTOR TO RESPOND TO REQUEST FOR CLARIFICATION The public information act presently includes a right for government to request clarification of a request or initiate discussion of how to accommodate large requests as a practical matter. This bill states that if the initial requestor does not respond to a request for clarification or discussion within 61 days after the request for clarification was sent, then the government may consider that the request was withdrawn. However, if the requestor provided a physical or mailing address in the initial request, then the request may not be considered withdrawn unless the request for clarification or discussion was sent by certified mail. The request for clarification or discussion must inform the requestor that ignoring the correspondence may result in the request being considered withdrawn. Status: Signed by Governor; Effective 9/1/07. GOVERNING BODY MAY SET LIMITS ON TIME SPENT ON PUBLIC INFORMATION REQUEST FROM ONE PERSON This bill authorizes a governing body to set a limit on the amount of time spent by the agency in responding to a single requestor (and their kids). The time limit must be at least 36 hours per fiscal year of the agency. If the governing body sets a time limit, each response to a requestor must state the amount of personnel time spent responding to that request and the amount of cumulative time for that fiscal year (not including preparing the written statement of time.) When the annual limit is expected to be exceeded by a request, the governing body must send an estimate to the requestor of the estimated expense. (within 10 days of the request). The requestor must then respond in writing within 10 days that he will pay the estimate or the government may consider the request to be withdrawn. Exempted are radio and television stations. Also exempted are newspapers that are authorized to publish legal notices or are free. Also, elected officials are exempted as are legal aid associations. Status: Signed by Governor; 6/15/07. |
