CHAPTER 41A. APPEAL THROUGH BINDING ARBITRATION
TAX CODE
TITLE 1. PROPERTY TAX CODE
SUBTITLE F. REMEDIES
CHAPTER 41A. APPEAL THROUGH BINDING ARBITRATION
Sec. 41A.01. RIGHT OF APPEAL BY PROPERTY OWNER. As an
alternative to filing an appeal under Section 42.01, a property
owner is entitled to appeal through binding arbitration under
this chapter an appraisal review board order determining a
protest filed under Section 41.41(a)(1) concerning the appraised
or market value of property if:
(1) the property qualifies as the owner's residence homestead
under Section 11.13; or
(2) the appraised or market value, as applicable, of the
property as determined by the order is $1 million or less.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1211, Sec. 4, eff. January 1, 2010.
Sec. 41A.02. NOTICE OF RIGHT TO ARBITRATION. An appraisal
review board that delivers notice of issuance of an order
described by Section 41A.01 and a copy of the order to a property
owner as required by Section 41.47 shall include with the notice
and copy:
(1) a notice of the property owner's rights under this chapter;
and
Text of subdivision as added by Acts 2005, 79th Leg., Ch.
912, Sec. 1
(2) a copy of the form prescribed under Section 41A.04.
Text of subdivision as added by Acts 2005, 79th Leg., R.S., Ch.
372, Sec. 1
(2) a copy of the form prescribed under Section 41A.03(a)(1).
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Sec. 41A.03. REQUEST FOR ARBITRATION. (a) To appeal an
appraisal review board order under this chapter, a property owner
must file with the appraisal district not later than the 45th 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) $500; or
(B) $250, if the property owner requests expedited arbitration
under Section 41A.031.
(a-1) If a property owner requests binding arbitration under
this chapter to appeal appraisal review board orders involving
two or more tracts of land that are contiguous to one another, a
single arbitration deposit in the amount provided by Subsection
(a)(2) is sufficient to satisfy the requirement of Subsection
(a)(2).
(b) A property owner who fails to strictly comply with this
section waives the property owner's right to request arbitration
under this chapter. A property owner who appeals an appraisal
review board order determining a protest concerning the appraised
or market value, as applicable, of the owner's property under
Chapter 42 waives the owner's right to request binding
arbitration under this chapter regarding the value of that
property. An arbitrator shall dismiss any pending arbitration
proceeding if the property owner's rights are waived under this
subsection.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1034, Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1211, Sec. 5, eff. January 1, 2010.
Sec. 41A.031. EXPEDITED ARBITRATION. (a) A property owner is
entitled to an expedited arbitration if the property owner
includes a request for expedited arbitration in the request filed
under Section 41A.03 and pays the required deposit.
(b) An expedited arbitration must provide for not more than one
hour of argument and testimony on behalf of the property owner
and not more than one hour of argument and testimony on behalf of
the appraisal district.
(c) The comptroller shall adopt rules and processes to assist in
the conduct of an expedited arbitration.
Added by Acts 2009, 81st Leg., R.S., Ch.
1211, Sec. 6, eff. January 1, 2010.
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 appraisal
district to request appointment of an arbitrator.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Sec. 41A.05. PROCESSING OF REGISTRATION REQUEST. (a) Not later
than the 10th day after the date an appraisal district receives
from a property owner a completed request for binding arbitration
under this chapter and an arbitration deposit as required by
Section 41A.03, the appraisal district shall:
(1) certify the request;
(2) submit the request and deposit to the comptroller; and
(3) request the comptroller to appoint a qualified arbitrator to
conduct the arbitration.
(b) The comptroller may retain an amount equal to 10 percent of
the deposit to cover the comptroller's administrative costs.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Sec. 41A.06. REGISTRY AND INITIAL QUALIFICATION OF ARBITRATORS.
(a) The comptroller shall maintain a registry listing the
qualified persons who have agreed to serve as arbitrators under
this chapter.
(b) To initially qualify to serve as an arbitrator under this
chapter, a person must:
(1) meet the following requirements, as applicable:
(A) be licensed as an attorney in this state; or
(B) have:
(i) completed at least 30 hours of training in arbitration and
alternative dispute resolution procedures from a university,
college, or legal or real estate trade association; and
(ii) been licensed or certified continuously during the five
years preceding the date the person agrees to serve as an
arbitrator as:
(a) a real estate broker or salesperson under Chapter 1101,
Occupations Code;
(b) a real estate appraiser under Chapter 1103, Occupations Code;
or
(c) a certified public accountant under Chapter 901, Occupations
Code; and
(2) agree to conduct an arbitration for a fee that is not more
than 90 percent of the amount of the arbitration deposit required
by Section 41A.03.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1211, Sec. 7, eff. January 1, 2010.
Acts 2009, 81st Leg., R.S., Ch.
1211, Sec. 8, eff. January 1, 2010.
Sec. 41A.061. CONTINUED QUALIFICATION OF ARBITRATOR; RENEWAL OF
AGREEMENT. (a) The comptroller shall include a qualified
arbitrator in the registry until the second anniversary of the
date the person was added to the registry. To continue to be
included in the registry after the second anniversary of the date
the person was added to the registry, the person must renew the
person's agreement with the comptroller to serve as an arbitrator
on or as near as possible to the date on which the person's
license or certification issued under Chapter 901, 1101, or 1103,
Occupations Code, is renewed.
(b) To renew the person's agreement to serve as an arbitrator,
the person must:
(1) file a renewal application with the comptroller at the time
and in the manner prescribed by the comptroller;
(2) continue to meet the requirements provided by Section
41A.06(b); and
(3) during the preceding two years have completed at least eight
hours of continuing education in arbitration and alternative
dispute resolution procedures offered by a university, college,
real estate trade association, or legal association.
(c) The comptroller shall remove a person from the registry if
the person fails or declines to renew the person's agreement to
serve as an arbitrator in the manner required by this section.
Added by Acts 2009, 81st Leg., R.S., Ch.
1211, Sec. 9, eff. January 1, 2010.
Sec. 41A.07. APPOINTMENT OF ARBITRATOR. (a) On receipt of the
request and deposit under Section 41A.05, the comptroller shall
send the property owner and the appraisal district a copy of the
comptroller's registry of qualified arbitrators and request that
the parties select an arbitrator from the registry. The
comptroller may send a copy of the registry to the parties by
regular mail in paper form or may send the parties written notice
of the Internet address of a website at which the registry is
maintained and may be accessed. The parties shall attempt to
select an arbitrator from the registry.
(b) Not later than the 20th day after the date the parties
receive the copy of the registry or notice of the Internet
address of the registry website, the appraisal district shall
notify the comptroller that:
(1) the parties have selected an arbitrator and request that the
comptroller appoint the selected arbitrator; or
(2) the parties were unable to select an arbitrator and request
the comptroller to appoint an arbitrator.
(c) On receipt of notice from the appraisal district under
Subsection (b), the comptroller shall:
(1) appoint:
(A) the arbitrator selected under Subsection (b)(1), if
applicable; or
(B) any arbitrator included in the comptroller's registry, if
Subsection (b)(2) applies; and
(2) send notice to the arbitrator appointed, requesting that the
arbitrator conduct the arbitration.
(d) If the arbitrator appointed is unable or unwilling to
conduct the arbitration for any reason, the arbitrator shall
promptly notify the comptroller that the arbitrator does not
accept the appointment and state the reason. The comptroller
shall appoint a substitute arbitrator promptly after receipt of
the notice.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Sec. 41A.08. NOTICE AND HEARING; REPRESENTATION OF PARTIES. (a)
On acceptance of an appointment to conduct an arbitration under
this chapter, the arbitrator shall set the date, time, and place
of a hearing on the arbitration. The arbitrator shall give
notice of and conduct the hearing in the manner provided by
Subchapter C, Chapter 171, Civil Practice and Remedies Code. The
arbitrator:
(1) shall continue a hearing if both parties agree to the
continuance; and
(2) may continue a hearing for reasonable cause.
(b) The parties to an arbitration proceeding under this chapter
may represent themselves or, at their own cost, may be
represented by:
(1) an employee of the appraisal district;
(2) an attorney who is licensed in this state;
(3) a person who is licensed as a real estate broker or
salesperson under Chapter 1101, Occupations Code, or is licensed
or certified as a real estate appraiser under Chapter 1103,
Occupations Code;
(4) a property tax consultant registered under Chapter 1152,
Occupations Code; or
(5) an individual who is licensed as a certified public
accountant under Chapter 901, Occupations Code.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1211, Sec. 10, eff. January 1, 2010.
Sec. 41A.09. AWARD; PAYMENT OF ARBITRATOR'S FEE. (a) Not later
than the 20th day after the date the hearing under Section 41A.08
is concluded, the arbitrator shall make an arbitration award and
deliver a copy of the award to the property owner, appraisal
district, and comptroller.
(b) An award under this section:
(1) must include a determination of the appraised or market
value, as applicable, of the property that is the subject of the
appeal;
(2) may include any remedy or relief a court may order under
Chapter 42 in an appeal relating to the appraised or market value
of property;
(3) shall specify the arbitrator's fee, which may not exceed the
amount provided by Section 41A.06(b)(2);
(4) is final and may not be appealed except as permitted under
Section 171.088, Civil Practice and Remedies Code, for an award
subject to that section; and
(5) may be enforced in the manner provided by Subchapter D,
Chapter 171, Civil Practice and Remedies Code.
(c) If the arbitrator determines that the appraised or market
value, as applicable, of the property that is the subject of the
appeal is nearer to the property owner's opinion of the appraised
or market value, as applicable, of the property as stated in the
request for binding arbitration submitted under Section 41A.03
than the value determined by the appraisal review board:
(1) the comptroller, on receipt of a copy of the award, shall
refund the property owner's arbitration deposit, less the amount
retained by the comptroller under Section 41A.05(b);
(2) the appraisal district, on receipt of a copy of the award,
shall pay the arbitrator's fee; and
(3) the chief appraiser shall correct the appraised or market
value, as applicable, of the property as shown in the appraisal
roll to reflect the arbitrator's determination.
(d) If the arbitrator determines that the appraised or market
value, as applicable, of the property that is the subject of the
appeal is not nearer to the property owner's opinion of the
appraised or market value, as applicable, of the property as
stated in the request for binding arbitration submitted under
Section 41A.03 than the value determined by the appraisal review
board:
(1) the comptroller, on receipt of a copy of the award, shall:
(A) pay the arbitrator's fee out of the owner's arbitration
deposit; and
(B) refund to the owner the owner's arbitration deposit, less
the arbitrator's fee and the amount retained by the comptroller
under Section 41A.05(b); and
(2) the chief appraiser shall correct the appraised or market
value, as applicable, of the property as shown in the appraisal
roll to reflect the arbitrator's determination if the value as
determined by the arbitrator is less than the value as determined
by the appraisal review board.
(e) The comptroller by rule may prescribe a standard form for an
award and may require arbitrators to use the award form when
making awards under this chapter.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1211, Sec. 11, eff. January 1, 2010.
Sec. 41A.10. PAYMENT OF TAXES PENDING APPEAL. (a) The pendency
of an appeal under this chapter does not affect the delinquency
date for the taxes on the property subject to the appeal. A
property owner who appeals an appraisal review board order under
this chapter shall pay taxes on the property subject to the
appeal in an amount equal to the amount of taxes due on the
portion of the taxable value of the property that is not in
dispute. If the final determination of an appeal under this
chapter decreases the property owner's tax liability to less than
the amount of taxes paid, the taxing unit shall refund to the
property owner the difference between the amount of taxes paid
and the amount of taxes for which the property owner is liable.
(b) A property owner may not file an appeal under this chapter
if the taxes on the property subject to the appeal are
delinquent. An arbitrator who determines that the taxes on the
property subject to an appeal are delinquent shall dismiss the
pending appeal with prejudice. If an appeal is dismissed under
this subsection, the comptroller shall refund the property
owner's arbitration deposit, less the amount retained by the
comptroller under Section 41A.05(b).
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Sec. 41A.11. POSTAPPEAL ADMINISTRATIVE PROCEDURES. An
arbitration award under this chapter is considered to be a final
determination of an appeal for purposes of Subchapter C, Chapter
42.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Sec. 41A.12. USE OF PROPERTIES AS SAMPLES. An arbitrator's
determination of market value under this chapter is the market
value of the property subject to the appeal for the purposes of
the study conducted under Section 403.302, Government Code.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
288, Sec. 10, eff. January 1, 2010.
Sec. 41A.13. RULES. The comptroller may adopt rules necessary
to implement and administer this chapter.
Added by Acts 2005, 79th Leg., Ch.
372, Sec. 1, eff. September 1, 2005.
Added by Acts 2005, 79th Leg., Ch.
912, Sec. 1, eff. September 1, 2005.