CHAPTER 42. JUDICIAL REVIEW
TAX CODE
TITLE 1. PROPERTY TAX CODE
SUBTITLE F. REMEDIES
CHAPTER 42. JUDICIAL REVIEW
SUBCHAPTER A. IN GENERAL
Sec. 42.01. RIGHT OF APPEAL BY PROPERTY OWNER. A property owner
is entitled to appeal:
(1) an order of the appraisal review board determining:
(A) a protest by the property owner as provided by Subchapter C
of Chapter 41; or
(B) a determination of an appraisal review board on a motion
filed under Section 25.25; or
(2) an order of the comptroller issued as provided by Subchapter
B, Chapter 24, apportioning among the counties the appraised
value of railroad rolling stock owned by the property owner.
Acts 1979, 66th Leg., p. 2309, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 174, ch. 13,
Sec. 148, eff. Jan. 1, 1982; Acts 1991, 72nd Leg., 2nd C.S., ch.
6, Sec. 53, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1039,
Sec. 41, eff. Jan. 1, 1998.
Sec. 42.015. APPEAL BY PERSON LEASING PROPERTY. (a) A person
leasing property who is contractually obligated to reimburse the
property owner for taxes imposed on the property is entitled to
appeal an order of the appraisal review board determining a
protest brought by the person under Section 41.413.
(b) A person appealing an order of the appraisal review board
under this section is considered the owner of the property for
purposes of the appeal. The chief appraiser shall deliver a copy
of any notice relating to the appeal to the owner of the property
and to the person bringing the appeal.
Added by Acts 1995, 74th Leg., ch. 581, Sec. 2, eff. Aug. 28,
1995.
Sec. 42.02. RIGHT OF APPEAL BY CHIEF APPRAISER. (a) On written
approval of the board of directors of the appraisal district, the
chief appraiser is entitled to appeal an order of the appraisal
review board determining:
(1) a taxpayer protest as provided by Subchapter C, Chapter 41,
subject to Subsection (b); or
(2) a taxpayer's motion to change the appraisal roll filed under
Section 25.25.
(b) Except as provided by Subsection (c), the chief appraiser
may not appeal an order of the appraisal review board determining
a taxpayer protest under Subsection (a)(1) if:
(1) the protest involved a determination of the appraised or
market value of the taxpayer's property and that value according
to the order that is the subject of the appeal is less than $1
million; or
(2) for any other taxpayer protest, the property to which the
protest applies has an appraised value according to the appraisal
roll for the current year of less than $1 million.
(c) On written approval of the board of directors of the
appraisal district, the chief appraiser may appeal an order of
the appraisal review board determining a taxpayer protest
otherwise prohibited by Subsection (b), if the chief appraiser
alleges that the taxpayer or a person acting on behalf of the
taxpayer committed fraud, made a material misrepresentation, or
presented fraudulent evidence in the hearing before the board.
In an appeal under this subsection, the court shall first
consider whether the taxpayer or a person acting on behalf of the
taxpayer committed fraud, made a material misrepresentation, or
presented fraudulent evidence to the appraisal review board. If
the court does not find by a preponderance of the evidence that
the taxpayer or a person acting on behalf of the taxpayer
committed fraud, made a material misrepresentation, or presented
fraudulent evidence to the appraisal review board, the court
shall:
(1) dismiss the appeal; and
(2) award court costs and reasonable attorney's fees to the
taxpayer.
Acts 1979, 66th Leg., p. 2310, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 2001, 77th Leg., ch. 1430, Sec. 32, eff.
Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1033, Sec. 1, eff. June 15, 2007.
Sec. 42.03. RIGHT OF APPEAL BY COUNTY. A county may appeal the
order of the comptroller issued as provided by Subchapter B,
Chapter 24 of this code apportioning among the counties the
appraised value of railroad rolling stock.
Acts 1979, 66th Leg., p. 2310, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 53,
eff. Sept. 1, 1991.
Sec. 42.031. RIGHT OF APPEAL BY TAXING UNIT. (a) A taxing unit
is entitled to appeal an order of the appraisal review board
determining a challenge by the taxing unit.
(b) A taxing unit may not intervene in or in any other manner be
made a party, whether as defendant or otherwise, to an appeal of
an order of the appraisal review board determining a taxpayer
protest under Subchapter C, Chapter 41, if the appeal was brought
by the property owner.
Added by Acts 1981, 67th Leg., 1st C.S., p. 174, ch. 13, Sec.
149, eff. Jan. 1, 1982. Amended by Acts 1989, 71st Leg., ch. 796,
Sec. 41, eff. Sept. 1, 1989; Acts 1999, 76th Leg., ch. 1481, Sec.
34, eff. Jan. 1, 2000.
Sec. 42.04. INTERVENTION BY STATE OR POLITICAL SUBDIVISION
OWNING PROPERTY SUBJECT TO TAXABLE LEASEHOLD. If the challenge
or protest relates to a taxable leasehold or other possessory
interest in real property that is owned by this state or a
political subdivision of this state, the attorney general or a
representative of the state agency that owns the real property,
if the real property is owned by this state, or a person
designated by the political subdivision that owns the real
property, as applicable, may intervene in an appeal of an order
of an appraisal review board determining a challenge by a taxing
unit or a taxpayer protest.
Added by Acts 1999, 76th Leg., ch. 416, Sec. 5, eff. Sept. 1,
1999.
Sec. 42.05. COMPTROLLER AS PARTY. The comptroller is an
opposing party in an appeal by:
(1) a property owner of an order of the comptroller determining
a protest of the appraisal, interstate allocation, or intrastate
apportionment of transportation business intangibles; or
(2) a county or a property owner of an order of the comptroller
apportioning among the counties the appraised value of railroad
rolling stock.
Acts 1979, 66th Leg., p. 2310, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 53,
eff. Sept. 1, 1991.
Sec. 42.06. NOTICE OF APPEAL. (a) To exercise the party's
right to appeal an order of an appraisal review board, a party
other than a property owner must file written notice of appeal
within 15 days after the date the party receives the notice
required by Section 41.47 or, in the case of a taxing unit, by
Section 41.07 that the order appealed has been issued. To
exercise the right to appeal an order of the comptroller, a party
other than a property owner must file written notice of appeal
within 15 days after the date the party receives the
comptroller's order. A property owner is not required to file a
notice of appeal under this section.
(b) A party required to file a notice of appeal under this
section other than a chief appraiser who appeals an order of an
appraisal review board shall file the notice with the chief
appraiser of the appraisal district for which the appraisal
review board is established. A chief appraiser who appeals an
order of an appraisal review board shall file the notice with the
appraisal review board. A party who appeals an order of the
comptroller shall file the notice with the comptroller.
(c) If the chief appraiser, a taxing unit, or a county appeals,
the chief appraiser, if the appeal is of an order of the
appraisal review board, or the comptroller, if the appeal is of
an order of the comptroller, shall deliver a copy of the notice
to the property owner whose property is involved in the appeal
within 10 days after the date the notice is filed.
(d) On the filing of a notice of appeal, the chief appraiser
shall indicate where appropriate those entries on the appraisal
records that are subject to the appeal.
Acts 1979, 66th Leg., p. 2310, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 174, ch. 13,
Sec. 150, eff. Jan. 1, 1982; Acts 1987, 70th Leg., ch. 898, Sec.
1, eff. Jan. 1, 1988; Acts 1989, 71st Leg., ch. 796, Sec. 42,
eff. June 15, 1989; Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec.
53, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1039, Sec. 41,
eff. Jan. 1, 1998.
Sec. 42.07. COSTS OF APPEAL. The reviewing court in its
discretion may charge all or part of the costs of an appeal taken
as provided by this chapter against any of the parties.
Acts 1979, 66th Leg., p. 2310, ch. 841, Sec. 1, eff. Jan. 1,
1982.
Sec. 42.08. FORFEITURE OF REMEDY FOR NONPAYMENT OF TAXES. (a)
The pendency of an appeal as provided by this chapter does not
affect the delinquency date for the taxes on the property subject
to the appeal. However, that delinquency date applies only to the
amount of taxes required to be paid under Subsection (b). If the
property owner complies with Subsection (b), the delinquency date
for any additional amount of taxes due on the property is
determined by Section 42.42(c), and that additional amount is not
delinquent before that date.
(b) Except as provided in Subsection (d), a property owner who
appeals as provided by this chapter must pay taxes on the
property subject to the appeal in the amount required by this
subsection before the delinquency date or the property owner
forfeits the right to proceed to a final determination of the
appeal. The amount of taxes the property owner must pay on the
property before the delinquency date to comply with this
subsection is the lesser of:
(1) the amount of taxes due on the portion of the taxable value
of the property that is not in dispute; or
(2) the amount of taxes due on the property under the order from
which the appeal is taken.
(b-1) This subsection applies only to an appeal in which the
property owner elects to pay the amount of taxes described by
Subsection (b)(1). The appeal filed by the property owner must
be accompanied by a statement in writing of the amount of taxes
the property owner proposes to pay.
(c) A property owner that pays an amount of taxes greater than
that required by Subsection (b) does not forfeit the property
owner's right to a final determination of the appeal by making
the payment. If the property owner files a timely appeal under
this chapter, taxes paid on the property are considered paid
under protest, even if paid before the appeal is filed.
(d) After filing an oath of inability to pay the taxes at issue,
a party may be excused from the requirement of prepayment of tax
as a prerequisite to appeal if the court, after notice and
hearing, finds that such prepayment would constitute an
unreasonable restraint on the party's right of access to the
courts. On the motion of a party and after the movant's
compliance with Subsection (e), the court shall hold a hearing to
review and determine compliance with this section, and the
reviewing court may set such terms and conditions on any grant of
relief as may be reasonably required by the circumstances. If
the court determines that the property owner has not
substantially complied with this section, the court shall dismiss
the pending action. If the court determines that the property
owner has substantially but not fully complied with this section,
the court shall dismiss the pending action unless the property
owner fully complies with the court's determination within 30
days of the determination.
(e) Not later than the 45th day before the date of a hearing to
review and determine compliance with this section, the movant
must mail notice of the hearing by certified mail, return receipt
requested, to the collector for each taxing unit that imposes
taxes on the property.
(f) Regardless of whether the collector for the taxing unit
receives a notice under Subsection (e), a taxing unit that
imposes taxes on the property may intervene in an appeal under
this chapter and participate in the proceedings for the limited
purpose of determining whether the property owner has complied
with this section. The taxing unit is entitled to process for
witnesses and evidence and to be heard by the court.
Acts 1979, 66th Leg., p. 2310, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 5049, ch. 910, Sec. 1,
eff. Aug. 29, 1983; Acts 1985, 69th Leg., ch. 195, Sec. 1, eff.
May 24, 1985; Acts 1989, 71st Leg., ch. 796, Sec. 43, eff. June
15, 1989; Acts 1995, 74th Leg., ch. 579, Sec. 12, eff. Jan. 1,
1996; Acts 1997, 75th Leg., ch. 203, Sec. 1, eff. May 21, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1033, Sec. 2, eff. June 15, 2007.
Acts 2009, 81st Leg., R.S., Ch.
530, Sec. 1, eff. June 19, 2009.
Sec. 42.09. REMEDIES EXCLUSIVE. (a) Except as provided by
Subsection (b) of this section, procedures prescribed by this
title for adjudication of the grounds of protest authorized by
this title are exclusive, and a property owner may not raise any
of those grounds:
(1) in defense to a suit to enforce collection of delinquent
taxes; or
(2) as a basis of a claim for relief in a suit by the property
owner to arrest or prevent the tax collection process or to
obtain a refund of taxes paid.
(b) A person against whom a suit to collect a delinquent
property tax is filed may plead as an affirmative defense:
(1) if the suit is to enforce personal liability for the tax,
that the defendant did not own the property on which the tax was
imposed on January 1 of the year for which the tax was imposed;
or
(2) if the suit is to foreclose a lien securing the payment of a
tax on real property, that the property was not located within
the boundaries of the taxing unit seeking to foreclose the lien
on January 1 of the year for which the tax was imposed.
(c) For purposes of this section, "suit" includes a
counterclaim, cross-claim, or other claim filed in the course of
a lawsuit.
Acts 1979, 66th Leg., p. 2311, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1987, 70th Leg., ch. 53, Sec. 1, eff. May
6, 1987.
SUBCHAPTER B. REVIEW BY DISTRICT COURT
Sec. 42.21. PETITION FOR REVIEW. (a) A party who appeals as
provided by this chapter must file a petition for review with the
district court within 60 days after the party received notice
that a final order has been entered from which an appeal may be
had or at any time after the hearing but before the 60-day
deadline. Failure to timely file a petition bars any appeal
under this chapter.
(b) A petition for review brought under Section 42.02 must be
brought against the owner of the property involved in the appeal.
A petition for review brought under Section 42.031 must be
brought against the appraisal district and against the owner of
the property involved in the appeal. A petition for review
brought under Subdivision (2) or (3) of Section 42.01 or under
Section 42.03 must be brought against the comptroller. Any other
petition for review under this chapter must be brought against
the appraisal district. A petition for review is not required to
be brought against the appraisal review board, but may be brought
against the appraisal review board in addition to any other
required party, if appropriate.
(c) If an appeal under this chapter is pending when the
appraisal review board issues an order in a subsequent year under
a protest by the same property owner and that protest relates to
the same property that is involved in the pending appeal, the
property owner may appeal the subsequent appraisal review board
order by amending the original petition for the pending appeal to
include the grounds for appealing the subsequent order. The
amended petition must be filed with the court in the period
provided by Subsection (a) for filing a petition for review of
the subsequent order. A property owner may appeal the subsequent
appraisal review board order under this subsection or may appeal
the order independently of the pending appeal as otherwise
provided by this section, but may not do both. A property owner
may change the election of remedies provided by this subsection
at any time before the end of the period provided by Subsection
(a) for filing a petition for review.
(d) An appraisal district is served by service on the chief
appraiser at any time or by service on any other officer or
employee of the appraisal district present at the appraisal
office at a time when the appraisal office is open for business
with the public. An appraisal review board is served by service
on the chairman of the appraisal review board. Citation of a
party is issued and served in the manner provided by law for
civil suits generally.
(e) A petition that is timely filed under Subsection (a) or
amended under Subsection (c) may be subsequently amended to:
(1) correct or change the name of a party; or
(2) not later than the 120th day before the date of trial,
identify or describe the property originally involved in the
appeal.
Acts 1979, 66th Leg., p. 2311, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 5344, ch. 981, Sec. 1,
eff. Aug. 29, 1983; Acts 1985, 69th Leg., ch. 760, Sec. 1, eff.
Aug. 26, 1985; Acts 1989, 71st Leg., ch. 796, Sec. 44, eff. June
15, 1989; Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 54, eff.
Sept. 1, 1991; Acts 1999, 76th Leg., ch. 1113, Sec. 1, eff. June
18, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
905, Sec. 1, eff. June 19, 2009.
Text of section as amended by Acts 1993, 73rd Leg., ch. 667, Sec.
1
Sec. 42.22. VENUE. Venue is in the county in which the
appraisal review board that issued the order appealed is located,
except as provided by Section 42.221. Venue is in Travis County
if the order appealed was issued by the comptroller.
Acts 1979, 66th Leg., p. 2311, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 174, ch. 13,
Sec. 151, eff. Jan. 1, 1982; Acts 1991, 72nd Leg., 2nd C.S., ch.
6, Sec. 55, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 667,
Sec. 1, eff. Sept. 1, 1993.
Text of section as amended by Acts 1993, 73rd Leg., ch. 1033,
Sec. 1
Sec. 42.22. VENUE. (a) Except as provided by Subsections (b)
and (c), and by Section 42.221, venue is in the county in which
the appraisal review board that issued the order appealed is
located.
(b) Venue of an action brought under Section 42.01(1) is in the
county in which the property is located or in the county in which
the appraisal review board that issued the order is located.
(c) Venue is in Travis County if the order appealed was issued
by the comptroller.
Acts 1979, 66th Leg., p. 2311, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 174, ch. 13,
Sec. 151, eff. Jan. 1, 1982; Acts 1991, 72nd Leg., 2nd C.S., ch.
6, Sec. 55, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 1033,
Sec. 1, eff. Sept. 1, 1993.
Sec. 42.221. CONSOLIDATED APPEALS FOR MULTICOUNTY PROPERTY. (a)
The owner of property of a telecommunications provider, as
defined by Section 51.002, Utilities Code, or the owner of
property regulated by the Railroad Commission of Texas, the
federal Surface Transportation Board, or the Federal Energy
Regulatory Commission that runs through or operates in more than
one county and is appraised by more than one appraisal district
may appeal an order of an appraisal review board relating to the
property running through or operating in more than one county to
the district court of any county in which a portion of the
property is located or operated if the order relating to that
portion of the property is appealed.
(b) A petition for review of each appraisal review board order
under this section must be filed with the court as provided by
Section 42.21. The fee for filing each additional petition for
review under this section after the first petition for review
relating to the same property is filed for a tax year is $5.
(c) If only one appeal by the owner of property subject to this
section is pending before the court in an appeal from the
decision of an appraisal review board of a district other than
the appraisal district for that county, any party to the suit
may, not earlier than the 30th day before and not later than the
10th day before the date set for the hearing, make a motion to
transfer the suit to a district court of the county in which the
appraisal review board from which the appeal is taken is located.
In the absence of a showing that further appeals under this
section will be filed, the court shall transfer the suit.
(d) When the owner files the first petition for review under
this section for a tax year, the owner shall include with the
petition a list of each appraisal district in which the property
is appraised for taxation in that tax year.
(e) The court shall consolidate all the appeals for a tax year
relating to a single property subject to this section for which a
petition for review is filed with the court and may consolidate
other appeals relating to other property subject to this section
of the same owner if the property is located in one or more of
the counties on the list required by Subsection (d). Except as
provided by this subsection, on the motion of the owner of a
property subject to this section the court shall grant a
continuance to provide the owner with an opportunity to include
in the proceeding appeals of appraisal review board orders from
additional appraisal districts. The court may not grant a
continuance to include an appeal of an appraisal review board
order that relates to a property subject to this section in that
tax year after the time for filing a petition for review of that
order has expired.
(f) This section does not affect the property owner's right to
file a petition for review of an individual appraisal district's
order relating to a property subject to this section in the
district court in the county in which the appraisal review board
is located.
(g) On a joint motion or the separate motions of at least 60
percent of the appraisal districts that are defendants in a
consolidated suit filed before the 45th day after the date on
which the property owner's petitions for review of the appraisal
review board orders relating to a property subject to this
section for that tax year must be filed, the court shall transfer
the suit to a district court of the county named in the motion or
motions if that county is one in which one of the appraisal
review boards from which an appeal was taken is located.
Added by Acts 1993, 73rd Leg., ch. 667, Sec. 2, eff. Sept. 1,
1993 and Acts 1993, 73rd Leg., ch. 1033, Sec. 2, eff. Sept. 1,
1993. Amended by Acts 2003, 78th Leg., ch. 1041, Sec. 3, eff.
Sept. 1, 2003.
Sec. 42.225. PROPERTY OWNER'S RIGHT TO APPEAL THROUGH
ARBITRATION. (a) On motion by a property owner who appeals an
appraisal review board order under this chapter, the court shall
submit the appeal to nonbinding arbitration. The court shall
order the nonbinding arbitration to be conducted in accordance
with Chapter 154, Civil Practice and Remedies Code. If the appeal
proceeds to trial following an arbitration award or finding under
this subsection, either party may introduce the award or finding
into evidence. In addition, the court shall award the property
owner reasonable attorney fees if the trial was not requested by
the property owner and the determination of the appeal results in
an appraised value for the owner's property that is equal to or
less than the appraised value under the arbitration award or
finding. However, the amount of an award of attorney fees under
this subsection is subject to the same limitations as those
provided by Section 42.29.
(b) On motion by the property owner, the court shall order the
parties to an appeal of an appraisal review board order under
this chapter to submit to binding arbitration if the appraisal
district joins in the motion or consents to the arbitration. A
binding arbitration award under this subsection is binding and
enforceable in the same manner as a contract obligation.
(c) The court shall appoint an impartial third party to conduct
an arbitration under this section. The impartial third party is
appointed by the court and serves as provided by Subchapter C,
Chapter 154, Civil Practice and Remedies Code.
(d) Each party or counsel for the party may present the position
of the party before the impartial third party, who must render a
specific arbitration award.
(e) Prior to submission of a case to arbitration the court shall
determine matters related to jurisdiction, venue, and
interpretation of the law.
(f) Except as provided in this section, an arbitration award may
include any remedy or relief that a court could order under this
chapter.
Added by Acts 1991, 72nd Leg., ch. 412, Sec. 1, eff. Aug. 26,
1991. Amended by Acts 1993, 73rd Leg., ch. 1031, Sec. 9, eff.
Sept. 1, 1993.
Sec. 42.23. SCOPE OF REVIEW. (a) Review is by trial de novo.
The district court shall try all issues of fact and law raised by
the pleadings in the manner applicable to civil suits generally.
(b) The court may not admit in evidence the fact of prior action
by the appraisal review board or comptroller, except to the
extent necessary to establish its jurisdiction.
(c) Any party is entitled to trial by jury on demand.
(d) Each party to an appeal is considered a party seeking
affirmative relief for the purpose of discovery regarding expert
witnesses under the Texas Rules of Civil Procedure if, on or
before the 120th day after the date the appeal is filed, the
property owner:
(1) makes a written offer of settlement;
(2) requests alternative dispute resolution; and
(3) designates, in response to an appropriate written discovery
request, which cause of action under this chapter is the basis
for the appeal.
(e) For purposes of Subsection (d), a property owner may
designate a cause of action under Section 42.25 or 42.26 as the
basis for an appeal, but may not designate a cause of action
under both sections as the basis for the appeal. Discovery
regarding a cause of action that is not specifically designated
by the property owner under Subsection (d) shall be conducted as
provided by the Texas Rules of Civil Procedure. The court may
enter a protective order to modify the provisions of this
subsection under Rule 192.6 of the Texas Rules of Civil
Procedure.
Acts 1979, 66th Leg., p. 2311, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 174, ch. 13,
Sec. 152, eff. Jan. 1, 1982; Acts 1991, 72nd Leg., 2nd C.S., ch.
6, Sec. 56, eff. Sept. 1, 1991.
Amended by:
Acts 2005, 79th Leg., Ch.
1126, Sec. 25, eff. September 1, 2005.
Sec. 42.24. ACTION BY COURT. In determining an appeal, the
district court may:
(1) fix the appraised value of property in accordance with the
requirements of law if the appraised value is at issue;
(2) enter the orders necessary to ensure equal treatment under
the law for the appealing property owner if inequality in the
appraisal of his property is at issue; or
(3) enter other orders necessary to preserve rights protected by
and impose duties required by the law.
Acts 1979, 66th Leg., p. 2311, ch. 841, Sec. 1, eff. Jan. 1,
1982.
Sec. 42.25. REMEDY FOR EXCESSIVE APPRAISAL. If the court
determines that the appraised value of property according to the
appraisal roll exceeds the appraised value required by law, the
property owner is entitled to a reduction of the appraised value
on the appraisal roll to the appraised value determined by the
court.
Acts 1979, 66th Leg., p. 2311, ch. 841, Sec. 1, eff. Jan. 1,
1982.
Sec. 42.26. REMEDY FOR UNEQUAL APPRAISAL. (a) The district
court shall grant relief on the ground that a property is
appraised unequally if:
(1) the appraisal ratio of the property exceeds by at least 10
percent the median level of appraisal of a reasonable and
representative sample of other properties in the appraisal
district;
(2) the appraisal ratio of the property exceeds by at least 10
percent the median level of appraisal of a sample of properties
in the appraisal district consisting of a reasonable number of
other properties similarly situated to, or of the same general
kind or character as, the property subject to the appeal; or
(3) the appraised value of the property exceeds the median
appraised value of a reasonable number of comparable properties
appropriately adjusted.
(b) If a property owner is entitled to relief under Subsection
(a)(1), the court shall order the property's appraised value
changed to the value as calculated on the basis of the median
level of appraisal according to Subsection (a)(1). If a property
owner is entitled to relief under Subsection (a)(2), the court
shall order the property's appraised value changed to the value
calculated on the basis of the median level of appraisal
according to Subsection (a)(2). If a property owner is entitled
to relief under Subsection (a)(3), the court shall order the
property's appraised value changed to the value calculated on the
basis of the median appraised value according to Subsection
(a)(3). If a property owner is entitled to relief under more than
one subdivision of Subsection (a), the court shall order the
property's appraised value changed to the value that results in
the lowest appraised value. The court shall determine each
applicable median level of appraisal or median appraised value
according to law, and is not required to adopt the median level
of appraisal or median appraised value proposed by a party to the
appeal. The court may not limit or deny relief to the property
owner entitled to relief under a subdivision of Subsection (a)
because the appraised value determined according to another
subdivision of Subsection (a) results in a higher appraised
value.
(c) For purposes of establishing the median level of appraisal
under Subsection (a)(1), the median level of appraisal in the
appraisal district as determined by the comptroller under Section
5.10 is admissible as evidence of the median level of appraisal
of a reasonable and representative sample of properties in the
appraisal district for the year of the comptroller's
determination, subject to the Texas Rules of Evidence and the
Texas Rules of Civil Procedure.
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or
sample property that is used for comparison must be the market
value determined by the appraisal district when the property is a
residence homestead subject to the limitation on appraised value
imposed by Section 23.23.
Acts 1979, 66th Leg., p. 2311, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 174, ch. 13,
Sec. 153, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 4924, ch.
877, Sec. 3, eff. Jan. 1, 1984; Acts 1985, 69th Leg., ch. 823,
Sec. 3, eff. Jan. 1, 1986; Acts 1989, 71st Leg., ch. 796, Sec.
45, eff. June 15, 1989; Acts 1991, 72nd Leg., ch. 843, Sec. 12,
eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1039, Sec. 42, eff.
Jan. 1, 1998; Acts 2003, 78th Leg., ch. 1041, Sec. 4, eff. Sept.
1, 2003.
Sec. 42.28. APPEAL OF DISTRICT COURT JUDGMENT. A party may
appeal the final judgment of the district court as provided by
law for appeal of civil suits generally, except that an appeal
bond is not required of the chief appraiser, the county, the
comptroller, or the commissioners court.
Acts 1979, 66th Leg., p. 2312, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 6, Sec. 57,
eff. Sept. 1, 1991.
Sec. 42.29. ATTORNEY'S FEES. (a) A property owner who prevails
in an appeal to the court under Section 42.25 or 42.26 or in an
appeal to the court of a determination of an appraisal review
board on a motion filed under Section 25.25 may be awarded
reasonable attorney's fees. The amount of the award may not
exceed the greater of:
(1) $15,000; or
(2) 20 percent of the total amount by which the property owner's
tax liability is reduced as a result of the appeal.
(b) Notwithstanding Subsection (a), the amount of an award of
attorney's fees may not exceed the lesser of:
(1) $100,000; or
(2) the total amount by which the property owner's tax liability
is reduced as a result of the appeal.
Added by Acts 1983, 68th Leg., p. 5033, ch. 905, Sec. 1, eff.
Aug. 29, 1983. Amended by Acts 1991, 72nd Leg., ch. 836, Sec.
4.1, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 203, Sec. 2,
eff. May 21, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1267, Sec. 5, eff. June 19, 2009.
SUBCHAPTER C. POSTAPPEAL ADMINISTRATIVE PROCEDURES
Sec. 42.41. CORRECTION OF ROLLS. (a) Not later than the 45th
day after the date an appeal is finally determined, the chief
appraiser shall:
(1) correct the appraisal roll and other appropriate records as
necessary to reflect the final determination of the appeal; and
(2) certify the change to the assessor for each affected taxing
unit.
(b) The assessor for each affected taxing unit shall correct the
tax roll and other appropriate records for which the assessor is
responsible.
(c) A chief appraiser is irrebutably presumed to have complied
with Subsection (a)(2).
Acts 1979, 66th Leg., p. 2312, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 175, ch. 13,
Sec. 155, eff. Jan. 1, 1982; Acts 2003, 78th Leg., ch. 481, Sec.
1, eff. Sept. 1, 2003.
Sec. 42.42. CORRECTED AND SUPPLEMENTAL TAX BILLS. (a) Except
as provided by Subsection (b) of this section, if the final
determination of an appeal that changes a property owner's tax
liability occurs after the tax bill is mailed, the assessor for
each affected taxing unit shall prepare and mail a corrected tax
bill in the manner provided by Chapter 31 of this code for tax
bills generally. The assessor shall include with the bill a brief
explanation of the reason for and effect of the corrected bill.
(b) If the final determination of an appeal that increases a
property owner's tax liability occurs after the property owner
has paid his taxes, the assessor for each affected taxing unit
shall prepare and mail a supplemental tax bill in the manner
provided by Chapter 31 for tax bills generally. The assessor
shall include with the bill a brief explanation of the reason for
and effect of the supplemental bill. The additional tax is due on
receipt of the supplemental bill and becomes delinquent if not
paid before the delinquency date prescribed by Chapter 31 or
before the first day of the next month after the date of mailing
that will provide at least 21 days for payment of the tax,
whichever is later.
(c) If the final determination of an appeal occurs after the
property owner has paid a portion of the tax finally determined
to be due as required by Section 42.08, the assessor for each
affected taxing unit shall prepare and mail a supplemental tax
bill in the form and manner prescribed by Subsection (b). The
additional tax is due and becomes delinquent as provided by
Subsection (b), but the property owner is liable for penalties
and interest on the tax included in the supplemental bill
calculated as provided by Section 33.01 as if the tax included in
the supplemental bill became delinquent on the original
delinquency date prescribed by Chapter 31.
(d) If the property owner did not pay any portion of the taxes
imposed on the property because the court found that payment
would constitute an unreasonable restraint on the owner's right
of access to the courts as provided by Section 42.08(d), after
the final determination of the appeal the assessor for each
affected taxing unit shall prepare and mail a supplemental tax
bill in the form and manner prescribed by Subsection (b). The
additional tax is due and becomes delinquent as provided by
Subsection (b), but the property owner is liable for interest on
the tax included in the supplemental bill calculated as provided
by Section 33.01 as if the tax included in the supplemental bill
became delinquent on the delinquency date prescribed by Chapter
31.
Acts 1979, 66th Leg., p. 2312, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1997, 75th Leg., ch. 203, Sec. 3, eff. May
21, 1997.
Sec. 42.43. REFUND. (a) If the final determination of an
appeal that decreases a property owner's tax liability occurs
after the property owner has paid his taxes, the taxing unit
shall refund to the property owner the difference between the
amount of taxes paid and amount of taxes for which the property
owner is liable.
(b) For a refund made under this section because an exemption
under Section 11.20 that was denied by the chief appraiser or
appraisal review board is granted, the taxing unit shall include
with the refund interest on the amount refunded calculated at an
annual rate that is equal to the auction average rate quoted on a
bank discount basis for three-month treasury bills issued by the
United States government, as published by the Federal Reserve
Board, for the week in which the taxes became delinquent, but not
more than 10 percent, calculated from the delinquency date for
the taxes until the date the refund is made. For any other refund
made under this section, the taxing unit shall include with the
refund interest on the amount refunded at an annual rate of eight
percent, calculated from the delinquency date for the taxes until
the date the refund is made.
(b-1) A taxing unit may not send a refund made under this
section before the earlier of:
(1) the 21st day after the final determination of the appeal; or
(2) the date the property owner files the form prescribed by
Subsection (i) with the taxing unit.
(c) Notwithstanding Subsection (b), if a taxing unit does not
make a refund, including interest, required by this section
before the 60th day after the date the chief appraiser certifies
a correction to the appraisal roll under Section 42.41, the
taxing unit shall include with the refund interest on the amount
refunded at an annual rate of 12 percent, calculated from the
delinquency date for the taxes until the date the refund is made.
A refund is not considered made under this section until sent to
the proper person as provided by this section.
(d) A property owner who prevails in a suit to compel a refund,
including interest, required by this section that is filed on or
after the 180th day after the date the chief appraiser certifies
a correction to the appraisal roll is entitled to court costs and
reasonable attorney's fees.
(e) Except as provided by Subsection (f) or (g), a taxing unit
shall send a refund made under this section to the property
owner.
(f) The final judgment in an appeal under this chapter may
designate to whom and where a refund is to be sent.
(g) If a form prescribed by the comptroller under Subsection (i)
is filed with a taxing unit before the 21st day after the final
determination of an appeal that requires a refund be made, the
taxing unit shall send the refund to the person and address
designated on the form.
(h) A form filed with a taxing unit under Subsection (g) remains
in effect for all subsequent refunds required by this section
until revoked in a written revocation filed with the taxing unit
by the property owner.
(i) The comptroller shall prescribe the form necessary to allow
a property owner to designate the person to whom a refund must be
sent. The comptroller shall include on the form a space for the
property owner to designate to whom and where the refund must be
sent and provide options to mail the refund to:
(1) the property owner;
(2) the business office of the property owner's attorney of
record in the appeal; or
(3) any other individual and address designated by the property
owner.
Acts 1979, 66th Leg., p. 2313, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1987, 70th Leg., ch. 640, Sec. 4, eff. Aug.
31, 1987; Acts 1989, 71st Leg., ch. 796, Sec. 46, eff. June 15,
1989; Acts 1993, 73rd Leg., ch. 592, Sec. 1, eff. Sept. 1, 1993;
Acts 1997, 75th Leg., ch. 1039, Sec. 43, eff. Jan. 1, 1998; Acts
2001, 77th Leg., ch. 253, Sec. 1, eff. May 22, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
905, Sec. 2, eff. June 19, 2009.