Bill Text: TX SB2355 | 2023-2024 | 88th Legislature | Enrolled

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Bill Title: Relating to the appeal of certain ad valorem tax determinations through binding arbitration.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-05-27 - Effective on 1/1/24 [SB2355 Detail]

Download: Texas-2023-SB2355-Enrolled.html

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S.B. No. 2355

AN ACT
relating to the appeal of certain ad valorem tax determinations
through binding arbitration.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 41A.03, Tax Code, is amended by amending
Subsection (a) and adding Subsections (c) and (d) to read as
follows:
(a) To appeal an appraisal review board order under this
chapter, a property owner must file with the comptroller [appraisal
district] not later than the 60th 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
comptroller] in the amount of:
(A) $450, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $500,000 or less,
as determined by the order;
(B) $500, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than
$500,000, as determined by the order;
(C) $500, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $1 million or
less, as determined by the order;
(D) $800, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than $1
million but not more than $2 million, as determined by the order;
(E) $1,050, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $2 million but not more than $3 million, as determined by the
order; or
(F) $1,550, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $3 million but not more than $5 million, as determined by the
order.
(c) If a property owner files a request for binding
arbitration through an electronic system, the property owner must
pay the arbitration deposit required by Subsection (a) through the
electronic system.
(d) If a property owner does not file a request for binding
arbitration through an electronic system, the property owner must
pay the arbitration deposit required by Subsection (a) by check or
money order made payable to the comptroller or by another form of
payment acceptable to the comptroller.
SECTION 2. Section 41A.04, Tax Code, is amended to read as
follows:
Sec. 41A.04. CONTENTS OF REQUEST FORM. The 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
comptroller to process the request and appoint [appraisal district
to request appointment of] an arbitrator.
SECTION 3. Section 41A.05(a), Tax Code, is amended to read
as follows:
(a) Not later than the 10th day after the date an appraisal
district receives notification that a [from a property owner a
completed] request for binding arbitration has been filed [under
this chapter and an arbitration deposit as required by Section
41A.03], the appraisal district shall, in the manner prescribed by
the comptroller, provide to the comptroller any information
reasonably necessary for the comptroller to process the request and
appoint an arbitrator[:
[(1) submit the request and deposit to the
comptroller; and
[(2) request the comptroller to appoint a qualified
arbitrator to conduct the arbitration].
SECTION 4. Section 41A.08, Tax Code, is amended by adding
Subsections (c), (d), and (e) to read as follows:
(c) The designation of an agent by a property owner under
this section must be made by written authorization on a form
prescribed by the comptroller and signed by the property owner or an
authorized individual other than an agent designated under Section
1.111. The designation must authorize the agent to represent the
owner in an arbitration proceeding under this chapter. The
designation takes effect when the property owner or authorized
individual signs the form.
(d) A property owner's agent shall retain the form described
by Subsection (c) and shall produce the form immediately upon
request from:
(1) the property owner or authorized individual
described by Subsection (c);
(2) the appraisal district that is party to the
arbitration under this chapter;
(3) the appraisal review board that is party to the
arbitration under this chapter;
(4) the arbitrator assigned to the arbitration under
this chapter; or
(5) the comptroller.
(e) Notwithstanding any other law, a property owner may
assign to an agent or entity the property owner's right to receive a
refund of an arbitration deposit. An assignment under this
subsection must be made in writing on a form prescribed by the
comptroller.
SECTION 5. Section 41A.11, Tax Code, is amended to read as
follows:
Sec. 41A.11. POSTAPPEAL ADMINISTRATIVE PROCEDURES. An
arbitration award or settlement reached between the parties to an
arbitration under this chapter is considered to be a final
determination of an appeal for purposes of Subchapter C, Chapter
42.
SECTION 6. The change in law made by this Act applies only
to a request for arbitration made on or after the effective date of
this Act.
SECTION 7. This Act takes effect January 1, 2024.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2355 passed the Senate on
April 4, 2023, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2355 passed the House on
May 12, 2023, by the following vote: Yeas 140, Nays 0, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor