84R8262 CJC-D
	By: Raymond	H.B. No. 1464

	A BILL TO BE ENTITLED
	AN ACT
	relating to the procedure for determining that certain land is no
	longer eligible for appraisal for ad valorem tax purposes as
	agricultural or open-space land.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 1.07(d), Tax Code, is amended to read as
	follows:
	(d)  A notice required by Section 11.45(d), 23.44(d),
	23.46(c) or (f), 23.54(e), 23.541(c), 23.55(e), 23.551(a),
	23.57(d), 23.76(e), 23.79(d), or 23.85(d) must be sent by certified
	mail.
	SECTION 2.  Section 23.43(d), Tax Code, is amended to read as
	follows:
	(d)  The 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 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. The form must include a space for the claimant
	to state the claimant's date of birth. Failure to provide the date
	of birth does not affect a claimant's right to an agricultural
	designation under this subchapter.
	SECTION 3.  Section 23.46, Tax Code, is amended by amending
	Subsection (c) and adding Subsection (f) to read as follows:
	(c)  If land that has been designated for agricultural use in
	any year is sold or diverted to a nonagricultural use, the total
	amount of additional taxes for the three years preceding the year in
	which the land is sold or diverted plus interest at the rate
	provided for delinquent taxes becomes due. Subject to Subsection
	(f), a [A] determination that the land has been diverted to a
	nonagricultural use is made by the chief appraiser. For purposes of
	this subsection, the chief appraiser may not consider any period
	during which land is owned by the state in determining whether the
	land has been diverted to a nonagricultural use. The chief
	appraiser shall deliver a notice of the determination to the owner
	of the land as soon as possible after making the determination and
	shall include in the notice an explanation of the owner's right to
	protest the determination. If the owner does not file a timely
	protest or if the final determination of the protest is that the
	additional taxes are due, the assessor for each taxing unit shall
	prepare and deliver a bill for the additional taxes plus interest as
	soon as practicable after the change of use occurs. If the
	additional taxes are due because of a sale of the land, the assessor
	for each taxing unit shall prepare and deliver the bill as soon as
	practicable after the sale occurs. The taxes and interest are due
	and become delinquent and incur penalties and interest as provided
	by law for ad valorem taxes imposed by the taxing unit if not paid
	before the next February 1 that is at least 20 days after the date
	the bill is delivered to the owner of the land.
	(f)  If land designated for agricultural use under this
	subchapter is owned by an individual 65 years of age or older,
	before making a determination that the land has been diverted to a
	nonagricultural use, the chief appraiser shall deliver a written
	notice to the owner stating that the chief appraiser believes the
	land may have been diverted to a nonagricultural use. The notice
	must include a form on which the owner may indicate that the owner
	remains entitled to have the land designated for agricultural use
	and a self-addressed postage prepaid envelope with instructions for
	returning the form to the chief appraiser. The chief appraiser
	shall consider the owner's response on the form in determining
	whether the land has been diverted to a nonagricultural use. If the
	chief appraiser does not receive a response on or before the 60th
	day after the date the notice is mailed, the chief appraiser must
	make a reasonable effort to locate the owner and determine whether
	the owner remains entitled to have the land designated for
	agricultural use before determining that the land has been diverted
	to a nonagricultural use. The comptroller by rule shall adopt
	standards for determining what constitutes a reasonable effort on
	the part of a chief appraiser for purposes of this subsection and
	distribute those rules to each appraisal district.
	SECTION 4.  Sections 23.54(c) and (e), Tax Code, are amended
	to read as follows:
	(c)  The 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
	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. The form must
	include a space for the claimant to state the claimant's date of
	birth. Failure to provide the date of birth does not affect a
	claimant's eligibility to have the claimant's land appraised under
	this subchapter.
	(e)  If a person fails to file a valid application on time,
	the land is ineligible for appraisal as provided by this subchapter
	for that year. Once an application is filed and appraisal under
	this subchapter is allowed, the land is eligible for appraisal
	under this subchapter in subsequent years without a new application
	unless the ownership of the land changes or its eligibility under
	this subchapter ends. However, subject to Section 23.551, if the
	chief appraiser [if he] has good cause to believe that land is no
	longer eligible for appraisal [the land's eligibility] under this
	subchapter [has ended], the chief appraiser may require a person
	allowed appraisal under this subchapter in a prior year to file a
	new application to confirm that the land is currently eligible for
	appraisal under this subchapter by delivering a written notice that
	a new application is required, accompanied by the application form,
	to the person who filed the application that was previously
	allowed.
	SECTION 5.  Section 23.55(e), Tax Code, is amended to read as
	follows:
	(e)  Subject to Section 23.551, a [A] determination that a
	change in use of the land has occurred is made by the chief
	appraiser. The chief appraiser shall deliver a notice of the
	determination to the owner of the land as soon as possible after
	making the determination and shall include in the notice an
	explanation of the owner's right to protest the determination. If
	the owner does not file a timely protest or if the final
	determination of the protest is that the additional taxes are due,
	the assessor for each taxing unit shall prepare and deliver a bill
	for the additional taxes plus interest as soon as practicable. The
	taxes and interest are due and become delinquent and incur
	penalties and interest as provided by law for ad valorem taxes
	imposed by the taxing unit if not paid before the next February 1
	that is at least 20 days after the date the bill is delivered to the
	owner of the land.
	SECTION 6.  Subchapter D, Chapter 23, Tax Code, is amended by
	adding Section 23.551 to read as follows:
	Sec. 23.551.  ADDITIONAL NOTICE TO CERTAIN LANDOWNERS. (a)
	If land appraised as provided by this subchapter is owned by an
	individual 65 years of age or older, before making a determination
	that a change in use of the land has occurred, the chief appraiser
	shall deliver a written notice to the owner stating that the chief
	appraiser believes a change in use of the land may have occurred.
	(b)  The notice must include a form on which the owner may
	indicate that the land remains eligible to be appraised as provided
	by this subchapter and a self-addressed postage prepaid envelope
	with instructions for returning the form to the chief appraiser.
	(c)  The chief appraiser shall consider the owner's response
	on the form in determining whether the land remains eligible for
	appraisal under this subchapter.
	(d)  If the chief appraiser does not receive a response on or
	before the 60th day after the date the notice is mailed, the chief
	appraiser must make a reasonable effort to locate the owner and
	determine whether the land remains eligible to be appraised as
	provided by this subchapter before determining that a change in use
	of the land has occurred.
	(e)  The comptroller by rule shall adopt standards for
	determining what constitutes a reasonable effort on the part of a
	chief appraiser for purposes of this section and distribute those
	rules to each appraisal district.
	SECTION 7.  Section 521.049(d), Transportation Code, is
	amended to read as follows:
	(d)  To assist chief appraisers in determining the
	eligibility of individuals for residence homestead exemptions from
	ad valorem taxation under Section 11.13, Tax Code, and the
	applicability to certain individuals of additional notice
	provisions under Subchapters C and D, Chapter 23, Tax Code, the
	department shall provide, without charge, to the chief appraiser of
	each appraisal district in this state:
	(1)  a copy of each driver's license record or personal
	identification certificate record held by the department; or
	(2)  information relating to the name, date of birth,
	driver's license or personal identification certificate number,
	and most recent address as shown in the records of individuals
	included in the department's driver's license or personal
	identification certificate records.
	SECTION 8.  The change in law made by this Act applies only
	to a determination by a chief appraiser that an individual 65 years
	of age or older is no longer eligible to have land appraised as
	provided by Subchapter C or D, Chapter 23, Tax Code, that is made on
	or after the effective date of this Act. A determination by a chief
	appraiser that an individual 65 years of age or older is no longer
	eligible to have land appraised as provided by Subchapter C or D,
	Chapter 23, Tax Code, that is made before the effective date of this
	Act is governed by the law in effect at the time the determination
	was made, and that law is continued in effect for that purpose.
	SECTION 9.  This Act takes effect September 1, 2015.