Property Tax Today features content regarding upcoming deadlines, action items and information releases.

Please let us know what you would like to see in future editions by sending property tax questions and/or suggested topics to Property Tax Communications. We will gladly address property tax matters under our authority.

Message from the Comptroller

In March, I kicked off a statewide broadband listening tour to collect input from Texans to develop the state’s first broadband plan. The state broadband plan will identify challenges, chart goals and encourage investment to expand high-speed internet access to areas most in need. To accomplish this, we want input on the most efficient and effective way to use funding because local residents know better than anyone how to meet the needs of their communities.

The tour events are free, and I encourage Texans to attend and share their thoughts about broadband services in their communities. Please visit Texas Broadband Listening Tour 2022 for details about events near you. Texans who are unable to attend, or who wish to share input before or after an event, are encouraged to do so via online survey by May 5.

In more somber news, February saw Vladimir Putin and Russian forces embark on an unprovoked war against Ukraine. As the world’s ninth largest economy and the nation’s top exporting state, Texas’ role in global events is critical. My staff has reviewed every state contract and procurement in our Statewide Procurement Division and every payment made through the Texas Treasury and found no contracts or payments made to Russian-owned businesses. The Texas Treasury Safekeeping Trust Company, which manages the Treasury Pool, Economic Stabilization Fund and other endowments and investments, has worked swiftly and conducted diligent research and I am pleased to say we have no direct investments tied to Russia.

The Property Tax Assistance Division (PTAD) had an eventful first quarter. We certified the School District Property Value Study (SDPVS) preliminary findings to the commissioner of education; released the final 2021 Methods and Assistance Program (MAP) reports; and continued updating property tax information, publications, forms and videos to reflect law changes from the 87th Legislature that were effective Jan. 1, 2022.

Finally, I would like to note that with the dawning of the second quarter comes numerous property tax deadlines. I encourage you to visit PTAD's Property Tax Laws Deadlines webpage for a full list of important property tax deadlines.

SDPVS Preliminary Findings

We certified the 2021 SDPVS preliminary findings to the commissioner of education on Jan. 31, 2022, and posted the findings to our website. Of the 869 school districts evaluated for the 2021 SDPVS, we certified local values in the preliminary findings for 812 (91 percent), which means we will certify their locally reported appraised values to the Texas Education Agency (TEA) later this year for use in determining local school funding.

Currently, we are working on 293 SDPVS protests to the SDPVS preliminary findings. The protestors include school districts and eligible taxpayers for which we assigned a value other than local value to property. The informal protest process will continue through the spring.

Appraisal District Ratio Study (ADRS)

Tax Code Section 5.10 requires our office to conduct a ratio study in each appraisal district at least once every two years. We conduct this study to determine the degree of uniformity and the median level of appraisals by the appraisal district within each major property category.

We published the ADRS 2021 preliminary results on our Appraisal District Ratio Study Results webpage. We will post the 2021 final results in September.

MAP Results

In January, we released 2021 final MAP reviews and notified chief appraisers whose districts received reviews. You can learn more about MAP reviews and download copies of reports for submission to your boards of trustees by accessing the Methods and Assistance Program webpage. We also referred 25 appraisal districts to the Texas Department of Licensing and Regulation (TDLR) for failure to complete the recommendations included in their 2020 final MAP reviews. TDLR will work with these appraisal districts over the next year on the recommendations.

Depreciation, Trend Factors and Life Expectancy

We typically update our depreciation schedule, trend factors and life expectancy charts in March each year. The 2022 charts are in the resources section on our School District Property Value Study webpage.

• Business Personal Property Depreciation Schedule (PDF)
• Business Personal Property Trend Factors (PDF)
• Common Furniture, Fixture, Machine and Equipment Life Expectancies (PDF)

Rendition Statements and Property Report Deadlines

Rendition statements and property report deadlines depend on property type or location. The statements and reports must be delivered to the chief appraiser after Jan. 1 and no later than the deadline indicated below. Deadline extensions also vary by property type or location as referenced below.

Rendition Statements and Reports	Deadline	Extension(s)
Property generally	April 15	May 15 upon written request Additional 15 days for good cause shown
Property regulated by the Public Utility Commission of Texas, the Railroad Commission of Texas, the federal Surface Transportation Board or the Federal Energy Regulatory Commission. Tax Code Section 22.23(d).	April 30	May 15 upon written request Additional 15 days for good cause shown

ARB Training and Procedures

ARB members must complete the Comptroller’s training course and statement at the conclusion of training to participate in ARB hearings.

We offer a combination of training options that include a limited number of live in-person sessions, a live virtual session over Zoom and online self-paced videos. All virtual training options are free of charge. The live in-person sessions require a registration fee of $50 for all attendees, and space is limited.

Details about training options, live in-person locations, dates, registration and other matters are available on our website.

ARBs are required to hold a public hearing and adopt hearing procedures before May 15 of each year as required by Tax Code Section 41.01(c). The ARB must distribute copies of the adopted hearing procedures to the appraisal district board of directors, the taxpayer liaison officer, the appraisal district and PTAD within 15 days of adopting the hearing procedures.

Tax Code Sections 5.103(d) and (e) require the ARB to adopt hearing procedures that incorporate our model hearing procedures and submit the adopted hearing procedures to our office for review. We will review the hearing procedures to determine if the requirement to incorporate our model hearing procedures has been met.

Adopted hearing procedures may be sent to ptad.arb@cpa.texas.gov.

Exemption and Application Deadlines

The last day for property owners to file most exemption and special appraisal applications is April 30. Certain property owners may late file residence homestead exemption applications, as indicated below:

• A property owner may file an age 65 or older exemption application up to two years after the date on which he or she became age 65.
• A property owner may file a donated residence homestead of a partially disabled veteran exemption application for up to two years after he or she qualifies.
• A property owner may file a residence homestead exemption application up to two years after the date the taxes become delinquent.
• A property owner may file a disabled veteran exemption application up to five years after the date the taxes become delinquent.

A religious organization denied a Tax Code Section 11.20 exemption because of its charter must amend the charter and file a new application by May 31 or before the 60th day after the date of notification of the exemption denial, whichever is later.

A private school denied a Tax Code Section 11.21 exemption because of its charter must amend the charter and file a new application by June 30 or the 60th day after the date of notification of the exemption denial, whichever is later.

New Tax Code and Tax Laws

We received the Texas Property Tax Code 2021 (Code) and unannotated handbook of selected Texas Property Tax Laws 2021 (Laws) books and are accepting orders.

The cost is $10 for the hard copy version of either book or $1 for an electronic copy (CD) of the Code and Laws. To order, mail a completed order form with your check in the exact amount to the Property Tax Assistance Division, Texas Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711-3528.

The 87th Legislature passed two amendments to Tax Code Section 6.41(f) that are not correctly reflected in the hard copy version of the Code book. The publisher has provided a supplemental insert to correct the omission. A PDF version of the insert is available on our website, and a hard copy of the insert will be included with each Code book, together with instructions for adding it to the Code book.

Unannotated, copyrighted versions of the corrected publications are available for free on our Legal Resources webpage.

Arbitrator Registry

Tax Code Sections 41A.06 and 41A.061 require arbitrators to apply for inclusion into the arbitrator registry and to renew their agreement to arbitrate every two years by meeting certain renewal requirements. Our Arbitration Information webpage provides additional information about becoming an arbitrator, including the application and requirements.

Limited Binding Arbitration

Tax Code Section 41A.015 allows a property owner who has filed a protest the option to request limited binding arbitration if the property owner believes the ARB or chief appraiser have violated certain procedural requirements.

A property owner must notify the ARB chair, the chief appraiser and the taxpayer liaison officer of the alleged procedural violation. The ARB chair or chief appraiser has an opportunity to comply with the procedural requirement or cure a failure to comply. If the ARB chair or chief appraiser does not comply or cure a failure to comply, the property owner can file a request for limited binding arbitration.

You can find the Request for Limited Binding Arbitration form and instructions on how to file a request on our Property Tax Forms webpage.

Binding Arbitration Information

Tax Code Chapter 41A gives property owners meeting certain criteria the option to request binding arbitration as an alternative to appealing an ARB decision to district court.

You can find information regarding binding arbitration, including frequently asked questions, forms and a fee schedule on our Arbitration Information webpage.

Limited Binding Arbitration Information

Tax Code Section 41A.015 gives property owners meeting certain criteria the option to request limited binding arbitration (LBA) to compel the ARB or the chief appraiser, as appropriate, to comply with certain procedural requirements related to protests.

You can find information regarding LBA, including forms and a fee schedule, on our Limited Binding Arbitration Information webpage.

Proposed Rule

The following rule proposal was filed with the Texas Register on Feb. 7, 2022; published on Feb. 18, 2022; and the 30-day comment period ended March 20, 2022. You can view the rule proposal using the Texas Register link provided.

§9.419 Property Tax Exemption for Certain Leased Motor Vehicles

Adopted Rules

Proposals to repeal and replace the administrative rule §9.4031, Manual for Discounting Oil and Gas Income, were filed with the Secretary of State for adoption on Feb. 18, 2022; published in the Texas Administrative Code on March 4, 2022; and became effective on March 10, 2022.

The effective rules are available on our Property Tax Rules webpage or as published in the Texas Administrative Code on the Texas Secretary of State's website.

Constitutional Amendments

On May 7, 2022, Texas voters will see two additional property tax-related constitutional amendments on the ballot:

• A proposal to provide an adjustment to the school district tax limitation based on school district tax rate compression provided in HB 3 from the 86th Legislative Session; and
• A proposal to increase the residence homestead exemption for school districts from $25,000 to $40,000.

For more information on proposed constitutional amendments, please refer to the Property Tax Rules webpage or as published in the Texas Administrative Code on the Texas Secretary of State's website.

Action Items

Below is a list of action items for the second quarter of 2022. A full list of important property tax law deadlines for appraisal districts, taxing units and property owners is available on our website.

• May 15 – Deadline for ARBs to adopt ARB hearing procedures; adopted hearing procedures must be submitted to PTAD within 15 days of adoption
• June 1 – EARS test file submissions due

If the last day for one of the deadlines is on Saturday, Sunday or a legal or state holiday, the act is timely if performed on the next regular business day.