CHAPTER 1. GENERAL PROVISIONS
TAX CODE
TITLE 1. PROPERTY TAX CODE
SUBTITLE A. GENERAL PROVISIONS
CHAPTER 1. GENERAL PROVISIONS
Sec. 1.01. SHORT TITLE. This title may be cited as the Property
Tax Code.
Acts 1979, 66th Leg., p. 2218, ch. 841, Sec. 1, eff. Jan. 1,
1982.
Sec. 1.02. APPLICABILITY OF TITLE. This title applies to a
taxing unit that is created by or pursuant to any general,
special, or local law enacted before or after the enactment of
this title unless a law enacted after enactment of this title by
or pursuant to which the taxing unit is created expressly
provides that this title does not apply. This title supersedes
any provision of a municipal charter or ordinance relating to
property taxation. Nothing in this title invalidates or restricts
the right of voters to utilize municipal-level initiative and
referendum to set a tax rate, level of spending, or limitation on
tax increase for that municipality.
Acts 1979, 66th Leg., p. 2218, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 117, ch. 13,
Sec. 1, eff. Jan. 1, 1982.
Sec. 1.03. CONSTRUCTION OF TITLE. The Code Construction Act
(Chapter 311, Government Code) applies to the construction of
each provision of this title except as otherwise expressly
provided by this title.
Acts 1979, 66th Leg., p. 2218, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1985, 69th Leg., ch. 479, Sec. 72, eff.
Sept. 1, 1985.
Sec. 1.04. DEFINITIONS. In this title:
(1) "Property" means any matter or thing capable of private
ownership.
(2) "Real property" means:
(A) land;
(B) an improvement;
(C) a mine or quarry;
(D) a mineral in place;
(E) standing timber; or
(F) an estate or interest, other than a mortgage or deed of
trust creating a lien on property or an interest securing payment
or performance of an obligation, in a property enumerated in
Paragraphs (A) through (E) of this subdivision.
(3) "Improvement" means:
(A) a building, structure, fixture, or fence erected on or
affixed to land;
(B) a transportable structure that is designed to be occupied
for residential or business purposes, whether or not it is
affixed to land, if the owner of the structure owns the land on
which it is located, unless the structure is unoccupied and held
for sale or normally is located at a particular place only
temporarily; or
(C) for purposes of an entity created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, the:
(i) subdivision of land by plat;
(ii) installation of water, sewer, or drainage lines; or
(iii) paving of undeveloped land.
(3-a) Notwithstanding anything contained herein to the contrary,
a manufactured home is an improvement to real property only if
the owner of the home has elected to treat the manufactured home
as real property pursuant to Section 1201.2055, Occupations Code,
and a certified copy of the statement of ownership and location
has been filed with the real property records of the county in
which the home is located as provided in Section 1201.2055(d),
Occupations Code.
(4) "Personal property" means property that is not real
property.
(5) "Tangible personal property" means personal property that
can be seen, weighed, measured, felt, or otherwise perceived by
the senses, but does not include a document or other perceptible
object that constitutes evidence of a valuable interest, claim,
or right and has negligible or no intrinsic value.
(6) "Intangible personal property" means a claim, interest
(other than an interest in tangible property), right, or other
thing that has value but cannot be seen, felt, weighed, measured,
or otherwise perceived by the senses, although its existence may
be evidenced by a document. It includes a stock, bond, note or
account receivable, franchise, license or permit, demand or time
deposit, certificate of deposit, share account, share certificate
account, share deposit account, insurance policy, annuity,
pension, cause of action, contract, and goodwill.
(7) "Market value" means the price at which a property would
transfer for cash or its equivalent under prevailing market
conditions if:
(A) exposed for sale in the open market with a reasonable time
for the seller to find a purchaser;
(B) both the seller and the purchaser know of all the uses and
purposes to which the property is adapted and for which it is
capable of being used and of the enforceable restrictions on its
use; and
(C) both the seller and purchaser seek to maximize their gains
and neither is in a position to take advantage of the exigencies
of the other.
(8) "Appraised value" means the value determined as provided by
Chapter 23 of this code.
(9) "Assessed value" means, for the purposes of assessment of
property for taxation, the amount determined by multiplying the
appraised value by the applicable assessment ratio, but, for the
purposes of determining the debt limitation imposed by Article
III, Section 52, of the Texas Constitution, shall mean the market
value of the property recorded by the chief appraiser.
(10) "Taxable value" means the amount determined by deducting
from assessed value the amount of any applicable partial
exemption.
(11) "Partial exemption" means an exemption of part of the value
of taxable property.
(12) "Taxing unit" means a county, an incorporated city or town
(including a home-rule city), a school district, a special
district or authority (including a junior college district, a
hospital district, a district created by or pursuant to the Water
Code, a mosquito control district, a fire prevention district, or
a noxious weed control district), or any other political unit of
this state, whether created by or pursuant to the constitution or
a local, special, or general law, that is authorized to impose
and is imposing ad valorem taxes on property even if the
governing body of another political unit determines the tax rate
for the unit or otherwise governs its affairs.
(13) "Tax year" means the calendar year.
(14) "Assessor" means the officer or employee responsible for
assessing property taxes as provided by Chapter 26 of this code
for a taxing unit by whatever title he is designated.
(15) "Collector" means the officer or employee responsible for
collecting property taxes for a taxing unit by whatever title he
is designated.
(16) "Possessory interest" means an interest that exists as a
result of possession or exclusive use or a right to possession or
exclusive use of a property and that is unaccompanied by
ownership of a fee simple or life estate in the property.
However, "possessory interest" does not include an interest,
whether of limited or indeterminate duration, that involves a
right to exhaust a portion of a real property.
(17) "Conservation and reclamation district" means a district
created under Article III, Section 52, or Article XVI, Section
59, of the Texas Constitution, or under a statute enacted under
Article III, Section 52, or Article XVI, Section 59, of the Texas
Constitution.
(18) "Clerical error" means an error:
(A) that is or results from a mistake or failure in writing,
copying, transcribing, entering or retrieving computer data,
computing, or calculating; or
(B) that prevents an appraisal roll or a tax roll from
accurately reflecting a finding or determination made by the
chief appraiser, the appraisal review board, or the assessor;
however, "clerical error" does not include an error that is or
results from a mistake in judgment or reasoning in the making of
the finding or determination.
(19) "Comptroller" means the Comptroller of Public Accounts of
the State of Texas.
Acts 1979, 66th Leg., p. 2218, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 118, ch. 13,
Sec. 2, eff. Jan. 1, 1982; Acts 1987, 70th Leg., ch. 984, Sec.
25, eff. June 19, 1987; Acts 1989, 71st Leg., ch. 1123, Sec. 1,
eff. Jan. 1, 1990; Acts 1991, 72nd Leg., ch. 20, Sec. 13, eff.
Aug. 26, 1991; Acts 1991, 72nd Leg., ch. 393, Sec. 1, eff. June
10, 1991; Acts 1991, 72nd Leg., ch. 843, Sec. 6, eff. Sept. 1,
1991; Acts 1991, 72nd Leg., 1st C.S., ch. 14, Sec. 8.01(22), eff.
Nov. 12, 1991; Acts 1993, 73rd Leg., ch. 347, Sec. 4.04, eff. May
31, 1993; Acts 1997, 75th Leg., ch. 1070, Sec. 52, eff. Sept. 1,
1997.
Amended by:
Acts 2005, 79th Leg., Ch.
1284, Sec. 30, eff. June 18, 2005.
Sec. 1.05. CITY FISCAL YEAR. The governing body of a home-rule
city may establish by ordinance a fiscal year different from that
fixed in its charter if a different fiscal year is desirable to
adapt budgeting and other fiscal activities to the tax cycle
required by this title.
Acts 1979, 66th Leg., p. 2220, ch. 841, Sec. 1, eff. Jan. 1,
1982.
Sec. 1.06. EFFECT OF WEEKEND OR HOLIDAY. If the last day for
the performance of an act is a Saturday, Sunday, or legal state
or national holiday, the act is timely if performed on the next
regular business day.
Acts 1979, 66th Leg., p. 2220, ch. 841, Sec. 1, eff. Jan. 1,
1982.
Sec. 1.07. DELIVERY OF NOTICE. (a) An official or agency
required by this title to deliver a notice to a property owner
may deliver the notice by regular first-class mail, with postage
prepaid, unless this section or another provision of this title
requires a different method of delivery or the parties agree that
the notice must be delivered as provided by Section 1.085.
(b) The official or agency shall address the notice to the
property owner, the person designated under Section 1.111(f) to
receive the notice for the property owner, if that section
applies, or, if appropriate, the property owner's agent at the
agent's address according to the most recent record in the
possession of the official or agency. However, if a property
owner files a written request with the appraisal district that
notices be sent to a particular address, the official or agency
shall send the notice to the address stated in the request.
(c) A notice permitted to be delivered by first-class mail by
this section is presumed delivered when it is deposited in the
mail. This presumption is rebuttable when evidence of failure to
receive notice is provided.
(d) A notice required by Section 11.45(d), 23.44(d), 23.57(d),
23.79(d), or 23.85(d) must be sent by certified mail.
Acts 1979, 66th Leg., p. 2220, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 4947, ch. 885, Sec. 1,
eff. Jan. 1, 1984; Acts 1989, 71st Leg., ch. 796, Sec. 1, eff.
Sept. 1, 1989; Acts 1997, 75th Leg., ch. 1039, Sec. 1, eff. Jan.
1, 1998; Acts 1999, 76th Leg., ch. 441, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2005, 79th Leg., Ch.
1126, Sec. 1, eff. September 1, 2005.
Sec. 1.08. TIMELINESS OF ACTION BY MAIL. When a property owner
is required by this title to make a payment or to file or deliver
a report, application, statement, or other document or paper by a
specified due date, his action is timely if:
(1) it is sent by regular first-class mail, properly addressed
with postage prepaid; and
(2) it bears a post office cancellation mark of a date earlier
than or on the specified due date and within the specified period
or the property owner furnishes satisfactory proof that it was
deposited in the mail on or before the specified due date and
within the specified period.
Acts 1979, 66th Leg., p. 2220, ch. 841, Sec. 1, eff. Jan. 1,
1982.
Amended by:
Acts 2005, 79th Leg., Ch.
412, Sec. 2, eff. September 1, 2005.
Sec. 1.085. COMMUNICATION IN ELECTRONIC FORMAT. (a) Except as
provided by Section 1.07(d), any notice, rendition, application
form, or completed application that is required or permitted by
this title to be delivered between a chief appraiser and a
property owner or between a chief appraiser and a person
designated by a property owner under Section 1.111(f) may be
delivered in an electronic format if the chief appraiser and the
property owner agree under this section.
(b) An agreement between a chief appraiser and a property owner
must:
(1) be in writing;
(2) be signed by the chief appraiser and the property owner; and
(3) specify:
(A) the medium of communication;
(B) the type of communication covered;
(C) the means for protecting the security of a communication;
(D) the means for confirming delivery of a communication; and
(E) the electronic mail address of the property owner or person
designated to represent the property owner under Section 1.111,
as applicable.
(c) An agreement may address other matters.
(d) Unless otherwise provided by an agreement, the delivery of
any information in an electronic format is effective on receipt
by a chief appraiser, property owner, or person designated by a
property owner.
(e) The comptroller by rule:
(1) shall prescribe acceptable media, formats, content, and
methods for the electronic transmission of notices required by
Section 25.19; and
(2) may prescribe acceptable media, formats, content, and
methods for the electronic transmission of other notices,
renditions, and applications.
(f) In an agreement entered into under this section, a chief
appraiser may select the medium, format, content, and method to
be used by the appraisal district from among those prescribed by
the comptroller under Subsection (e).
(g) Notwithstanding Subsection (a), if a property owner whose
property is included in 25 or more accounts in the appraisal
records of the appraisal district requests the chief appraiser to
enter into an agreement for the delivery of the notice required
by Section 25.19 in an electronic format, the chief appraiser
must enter into an agreement under this section for that purpose
and shall deliver the notice in accordance with an electronic
medium, format, content, and method prescribed by the comptroller
under Subsection (e).
Added by Acts 1999, 76th Leg., ch. 441, Sec. 2, eff. Sept. 1,
1999. Amended by Acts 2003, 78th Leg., ch. 984, Sec. 1; Acts
2003, 78th Leg., ch. 1173, Sec. 1, eff. Jan. 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
412, Sec. 3, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch.
412, Sec. 18(1), eff. September 1, 2005.
Sec. 1.09. AVAILABILITY OF FORMS. When a property owner is
required by this title to use a form, the office or agency with
which the form is filed shall make printed and electronic
versions of the forms readily and timely available and shall
furnish a property owner a form without charge.
Added by Acts 1979, 66th Leg., p. 2220, ch. 841, Sec. 1, eff.
Jan. 1, 1982. Amended by Acts 2003, 78th Leg., ch. 984, Sec. 2;
Acts 2003, 78th Leg., ch. 1173, Sec. 2, eff. Jan. 1, 2005.
Sec. 1.10. ROLLS IN ELECTRONIC DATA-PROCESSING RECORDS. The
appraisal roll for an appraisal district and the appraisal roll
or the tax roll for the unit may be retained in electronic
data-processing equipment. However, a physical document for each
must be prepared and made readily available to the public.
Acts 1979, 66th Leg., p. 2220, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 118, ch. 13,
Sec. 3, eff. Jan. 1, 1982.
Sec. 1.11. COMMUNICATIONS TO FIDUCIARY. (a) On the written
request of a property owner, an appraisal office or an assessor
or collector shall deliver all notices, tax bills, and other
communications relating to the owner's property or taxes to the
owner's fiduciary.
(b) To be effective, a request made under this section must be
filed with the appraisal district. A request remains in effect
until revoked by a written revocation filed with the appraisal
district by the owner.
Added by Acts 1981, 67th Leg., 1st C.S., p. 118, ch. 13, Sec. 4,
eff. Jan. 1, 1982.
Amended by:
Acts 2005, 79th Leg., Ch.
1126, Sec. 2, eff. September 1, 2005.
Sec. 1.111. REPRESENTATION OF PROPERTY OWNER. (a) A property
owner may designate a lessee or other person to act as the agent
of the owner for any purpose under this title in connection with
the property or the property owner.
(b) The designation of an agent must be made by written
authorization on a form prescribed by the comptroller under
Subsection (h) and signed by the owner, a property manager
authorized to designate agents for the owner, or another person
authorized to act on behalf of the owner other than the person
being designated as agent, and must clearly indicate that the
person is authorized to act on behalf of the property owner in
property tax matters relating to the property or the property
owner. The designation may authorize the agent to represent the
owner in all property tax matters or in specific property tax
matters as identified in the designation. The designation does
not take effect with respect to an appraisal district or a taxing
unit participating in the appraisal district until a copy of the
designation is filed with the appraisal district.
(c) The designation of an agent under this section remains in
effect until revoked in a written revocation filed with the
appraisal district by the property owner. A designation may be
made to expire according to its own terms but is still subject to
prior revocation by the property owner.
(d) A property owner may not designate more than one agent to
represent the property owner in connection with an item of
property. The designation of an agent in connection with an item
of property revokes any previous designation of an agent in
connection with that item of property.
(e) An agreement between a property owner or the owner's agent
and the chief appraiser is final if the agreement relates to a
matter:
(1) which may be protested to the appraisal review board or on
which a protest has been filed but not determined by the board;
or
(2) which may be corrected under Section 25.25 or on which a
motion for correction under that section has been filed but not
determined by the board.
(f) A property owner in writing filed with the appraisal
district may direct the appraisal district, appraisal review
board, and each taxing unit participating in the appraisal
district to deliver all notices, tax bills, orders, and other
communications relating to one or more specified items of the
owner's property to a specified person instead of to the property
owner. The instrument must clearly identify the person by name
and give the person's address to which all notices, tax bills,
orders, and other communications are to be delivered. The
property owner may but is not required to designate the person's
agent for other tax matters designated under Subsection (a) as
the person to receive all notices, tax bills, orders, and other
communications. The designation of an agent for other tax matters
under Subsection (a) may also provide that the agent is the
person to whom notices, tax bills, orders, and other
communications are to be delivered under this subsection.
(g) An appraisal district, appraisal review board, or taxing
unit may not require a person to designate an agent to represent
the person in a property tax matter other than as provided by
this section.
(h) The comptroller shall prescribe forms and adopt rules to
facilitate compliance with this section. The comptroller shall
include on any form used for designation of an agent for a
single-family residential property in which the property owner
resides the following statement in boldfaced type:
"In some cases, you may want to contact your appraisal district
or other local taxing units for free information and/or forms
concerning your case before designating an agent."
(i) An appraisal review board shall accept and consider a motion
or protest filed by an agent of a property owner if an agency
authorization is filed at or before the hearing on the motion or
protest. If an appraisal review board designates a time and
place for appearance before a hearing, an agency authorization is
considered to be filed at or before the hearing if a copy of the
authorization is filed at the time and place designated by the
board.
(j) An individual exempt from registration as a property tax
consultant under Section 1152.002, Occupations Code, who files a
protest with the appraisal review board on behalf of the property
owner is entitled to receive all notices from the appraisal
district regarding the property subject to the protest until the
authority is revoked by the property owner as provided by this
section.
Added by Acts 1987, 70th Leg., ch. 435, Sec. 1, eff. Jan. 1,
1988. Amended by Acts 1989, 71st Leg., ch. 796, Sec. 2, eff.
Sept. 1, 1989; Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 1,
eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 981, Sec. 1, eff.
Jan. 1, 1994; Acts 1993, 73rd Leg., ch. 1031, Sec. 1, eff. Sept.
1, 1993; Acts 1997, 75th Leg., ch. 349, Sec. 1, eff. Sept. 1,
1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
156, Sec. 1, eff. May 26, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1267, Sec. 1, eff. June 19, 2009.
Sec. 1.12. MEDIAN LEVEL OF APPRAISAL. (a) For purposes of this
title, the median level of appraisal is the median appraisal
ratio of a reasonable and representative sample of properties in
an appraisal district or, for purposes of Section 41.43 or 42.26,
of a sample of properties specified by that section.
(b) An appraisal ratio is the ratio of a property's appraised
value as determined by the appraisal office or appraisal review
board, as applicable, to:
(1) the appraised value of the property according to law if the
property qualifies for appraisal for tax purposes according to a
standard other than market value; or
(2) the market value of the property if Subdivision (1) of this
subsection does not apply.
(c) The median appraisal ratio for a sample of properties is, in
a numerically ordered list of the appraisal ratios for the
properties:
(1) if the sample contains an odd number of properties, the
appraisal ratio above and below which there is an equal number of
appraisal ratios in the list; or
(2) if the sample contains an even number of properties, the
average of the two consecutive appraisal ratios above and below
which there is an equal number of appraisal ratios in the list.
(d) For purposes of this section, the appraisal ratio of a
homestead to which Section 23.23 applies is the ratio of the
property's market value as determined by the appraisal district
or appraisal review board, as applicable, to the market value of
the property according to law. The appraisal ratio is not
calculated according to the appraised value of the property as
limited by Section 23.23.
Added by Acts 1981, 67th Leg., 1st C.S., p. 118, ch. 13, Sec. 5,
eff. Jan. 1, 1982. Amended by Acts 1983, 68th Leg., p. 4924, ch.
877, Sec. 1, eff. Jan. 1, 1984; Acts 1985, 69th Leg., ch. 823,
Sec. 1, eff. Jan. 1, 1986; Acts 1989, 71st Leg., ch. 796, Sec. 3,
eff. June 15, 1989; Acts 1997, 75th Leg., ch. 1039, Sec. 46, eff.
Jan. 1, 1998.
Sec. 1.15. APPRAISERS FOR TAXING UNITS PROHIBITED. A taxing
unit may not employ any person for the purpose of appraising
property for taxation purposes except to the extent necessary to
perform a contract under Section 6.05(b) of this code.
Added by Acts 1983, 68th Leg., p. 5463, ch. 1028, Sec. 1, eff.
Oct. 1, 1985. Renumbered from Sec. 1.13 by Acts 1987, 70th Leg.,
ch. 167, Sec. 5.01(a)(50) eff. Sept. 1, 1987.