The Texas Legislature adjourned on June 1st after considering 355 bills related to property taxes and passing 58 of them. It was an extremely active property tax session. The following are some of the more significant changes as well as some basic changes to the every day use of the system. More information may be obtained by contacting Jim Popp at 512.473.2661 or jim.popp@property-tax.com.

Appraisal Review Board & District Board of Directors

Members of the board of directors of the appraisal district in Harris County and in a county next to Harris County with a population greater than 350,000 (presumably Montgomery and Ft Bend) will be appointed by the District Court Administrative Law Judge rather than by the vote of the taxing units. (HB 1030 amends Section 6.41, Tax Code; Effective 1/1/10)

The chairman of the ARB will be selected by the district board of directors rather than by members of the ARB. (HB 2317 amends Section 6.42, Tax Code; Effective 9/1/09)

Designation of Agent

An agent authorization must be signed by a person other than the person being designated. The designation does not take effect until filed but may be filed at the protest hearing (HB 1203 amends Section 1.111; Effective Immediately upon Governor's signature)

Appraisal District Operations

The Comptroller's property value study of school districts will be conducted every two years rather than every year. If an appraisal district does not pass the study, it will be reviewed every year. In addition, the Comptroller will conduct a performance audit of the appraisal methodology and operations of each appraisal district every two years. (HB 8 amends Section 403 Gov. Code; Effective 1/1/10)

The Board of Tax Professional Examiners which licenses appraisal district and taxing unit employees is abolished and its duties are transferred to the Texas Department of Licensing & Regulation.(HB 2447 amends Section 1151 Occupations Code: Effective Immediately upon Governor's signature)

Taxpayer Remedies

A taxpayer may file an appeal from the ARB for properties over $1,000,000 in value to the State Office of Administrative Hearings (SOAH). This is a pilot program in Bexar, Cameron, El Paso, Harris, and Tarrant counties and will be limited to the first 3000 appeals filed. This is an alternative to an appeal to district court with no allowance for appeal from SOAH to district court. It applies only to market value and equal and uniform cases. (HB 3612 amends Chapter 2003 Gov. Code; Effective 1/1/10)

Binding arbitration is changed to allow appeals by all residence homesteads rather than homesteads valued less than $1,000,000 and for personal property. An expedited arbitration costing $250 rather than $500 is also created. (SB 771 amends Chapter 41A, Tax Code; Effective 1/1/10)

The deadline for the filing of a property tax lawsuit is changed from 45 to 60 days after receipt of the ARB order. (HB 986 amends Section 42.21, Tax Code; Effective June 21)

Tax Refunds

Upon resolution of a lawsuit, a taxing unit will be required to send any refund to the owner, or other person designated by the owner, to the address provided to the taxing unit by the owner on a Comptroller created form. The agreed judgment may also direct where the refund is to be sent. (HB 986 amends Section 42.23, Tax code: Effective Immediately upon Governor's signature)

Licensing of Tax Consultants

There were several changes made to the tax consultant licensing act. A tax consultant:

• must have 40 rather than 15 hours of classes and must pass an exam to register as a new consultant; (effective 9/1/09)
• may not serve as a senior for more than 10 consultants who have not been employed full time for more than 6 months; (effective 9/1/09)
• may not file a protest without client approval; (effective 1/1/10)
• may not engage the services of an attorney without client approval. (effective 1/1/10) (Section 1152, Occupation Code. HB 2591)

Valuation

If the value of a property is lowered by agreement, ARB decision or lawsuit, the value may not be increased in the next year unless the chief appraiser has substantial evidence supporting the increase. (SB 771 amends Section 23.01, Tax Code; effective 1/1/10)

If the chief appraiser determines the appraised value of real property using the income approach, the appraised value must include the value of both the real property and the personal property in the account. (SB 771 amends Section 23.24, Tax Code; effective 1/1/10)

Abatements

Chapter 312, Tax Code, which authorizes local governments to abate property taxes for economic development, was extended another 10 years (HB 773) Additionally, the Legislature clarified that property constructed or installed on leased land is eligible for abatement and that a taxing unit and property owner could agree to defer the commencement of the abatement period to a date subsequent to the date the agreement is executed (SB 1458/HB 3896)