Property Tax Assistance Division Update. October 6, Property Tax Assistance Division Texas Comptroller of Public Accounts
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1 Presentation to the Texas Association of Property Tax Professionals Property Tax Assistance Division Update October 6, 2017 Presented by: Mike Esparza, Director Property Tax Assistance Division Texas Comptroller of Public Accounts 1
2 85 th Legislature Major Changes SB 526/SB 594 Changes approval procedures for agricultural appraisal manual and timber appraisal manual Streamlines review of manuals from 5 public officials to two had to be approved by Comptroller, AG, Land Commissioner, Ag Commissioner and Governor. Approval process was cumbersome Ag manual had not been revised in 27 years Under new law Ag manual subject to approval by Comptroller with review and counsel of Ag Commissioner
3 85 th Legislature Grants for Veteran s Exemption Increase biennial appropriation from $5 million to $6.5 million for grants to local governmental entities disproportionately affected by veteran s exemption (Sec , LGC) Increase in appropriation still not sufficient to pay 100% of grant funds requested
4 Pre-85th Legislature - Arbitration Alternative to taking ARB appeal to district court Property owner and CAD agree to arbitrator Non-homestead properties limited to $3 million or less Big growth in number of arbitrations In 2015 there were 2,150 arbitrations In 2016 there were 10,692 arbitrations In ,677 arbitrations so far
5 85th Leg. Arbitration SB 731 SB 731 changes eligibility threshold from $3 million to $5 million for non-homestead properties Sets arbitration deposits for these properties at $1,550 Previous increase from $1 million to $3 million by 84 th Leg. 5
6 85th Leg. Arbitration SB 1286 Comptroller now appoints arbitrator without parties first trying to agree on selection of arbitrator Comptroller will use computerized system to distribute appointments as evenly as possible Comptroller shall select first from among those arbitrators who reside in county where property located. Upon refusal of available arbitrators, Comptroller may appoint arbitrator on registry residing in another county in Texas
7 85th Leg. Arbitration SB 1286 Comptroller now must remove a person from registry if Comptroller determines by clear and convincing evidence (CCE) that there s good cause to remove person from registry. CCE means the degree of proof that produces a firm belief or conviction of the truth of the allegations regarding the arbitrator and that the allegations constitute good cause for removal. Arbitrator has engaged in repeated instances of bias or misconduct while acting as an arbitrator.
8 85 th Leg. Arbitration SB 1286 rules Rule Comptroller may accept request to remove an arbitrator if the request is submitted with 30 days of last occurrence Rule Information (includes request and response) related to removal is submitted to the Director. Rule At least one sworn statement from an individual with first-hand knowledge of the conduct complained of that sets forth the facts in detail to support removal. Rules - Arbitrator can respond. Director makes final decision.
9 85 th Legislature SB Arbitration Comptroller may not appoint an arbitrator if good cause not to appoint the arbitrator, including if evidence of repeated bias or misconduct. Person not eligible if during last five years person represented a person in CAD where property is located; served as officer or employee of CAD; or served as member of ARB for that CAD.
10 85 th Leg. SB 1286 Evidence Each person at ARB hearing must provide copy of material in manner and form prescribed by Comptroller rule. Comptroller shall also prescribe manner and form (including security requirements) in which person must provide copies of materials that allows ARB to retain material as part of record; and Establish specifications for the audiovisual equipment provided by CAD for use by property owner or agent. Rule Requirements specified in ARB hearing procedures.
11 Questions? Mike Esparza, Director Property Tax Assistance Division Texas Comptroller of Public Accounts
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