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

Chances are that you have noticed recent price increases for groceries and other essentials. In the May issue of Fiscal Notes, my office takes a close look at inflation and its role in the economy. Inflation rose to 8.5 percent in March and 8.3 percent in April this year, the highest year-over-year changes in consumer prices since January 1982. When inflation hovers around 2 percent, as prescribed by the Federal Reserve System, it is beneficial for the economy because it promotes price stability and a healthy employment level. When inflation is too high or too low, it can negatively impact our economy.

Inflation, the COVID-19 pandemic, supply chain issues and turmoil in Eastern Europe have taken an economic toll on Texas, but there’s also reason for optimism. Despite these challenges, Texas has maintained its position as the most appealing state for business expansions and relocations. Numerous companies have moved their headquarters or expanded existing operations here. Texas is known around the country for its business-friendly traits, whether it be the lack of personal income taxes, favorable quality of life or the skilled workforce.

Summer in Texas signals the start of the property tax rate adoption process. This process is guided by a concept in the Texas Constitution known as truth-in-taxation (TNT). The Property Tax Assistance Division (PTAD) subject matter experts worked tirelessly with industry professionals to develop and publish comprehensive TNT information, and in June released new and revised webpages and forms.

PTAD is actively working on School District Property Value Study (SDPVS) protests to develop the final 2021 school district taxable values to be certified to the commissioner of education, appraising property for the 2022 SDPVS, reviewing appraisal districts for the 2022 Methods and Assistance Program (MAP) reviews, as well as preparing for the 2022 arbitration season and the 2023 legislative session. The work in PTAD never slows!

Electronic Appraisal Roll Submission (EARS)

Appraisal districts with fewer than 200,000 taxable parcels but more than 10,000 taxable parcels, excluding Category G parcels, must submit certified appraisal rolls by Aug. 1; the remainder are due by Sept. 1. Appraisal districts should use Category D parcels, not acres, in determining the number of parcels.

EARS requires appraisal districts to provide appraisal roll information in a standard electronic format, accompanied by a signed Form 50-792, Electronic Appraisal Roll Submission Media Information Form (MIF) (PDF) and computer-generated certified recaps (grand totals) that include:

• category values;
• exemptions totals; and
• an agricultural valuation breakdown, timber at productivity breakdown with prior land-use classes for wildlife and timber-in-transition and agriculture cost schedule of all taxing units collecting property taxes.

Appraisal districts must submit all information through the secured EARS file transfer protocol (FTP) site and promptly notify PTAD of the submission by emailing ptad.ears@cpa.texas.gov.

PTAD rejects EARS files with material discrepancies and incomplete submissions. PTAD considers submissions to be incomplete and untimely if they are missing the necessary recap(s), taxing unit(s), MIF and/or EARS (AJR, AUD and TU2) data files. Submission information and guidance is available in the EARS section of PTAD's SDPVS webpage and the EARS Manual (PDF).

Electronic Property Transaction Submission (EPTS)

The deadline for all appraisal districts to submit their EPTS is Aug. 1.

Appraisal districts must submit all property transaction records in their possession, including split school districts, using the record layout and date range specified in the EPTS Manual (PDF) along with a signed Form 50-793, Electronic Property Transaction Submission Media Information and Certification Form (PDF).

PTAD can receive EPTS files by email or via the secured EPTS FTP site. This site requires a registered user and software that supports SFTP protocol for file transfers. Submission information and guidance is available in the EPTS section of PTAD's SDPVS webpage and the EPTS Manual (PDF).

SDPVS Required Information

Tax Code Section 5.09 requires PTAD to collect information to report the total appraised values, taxable values and tax rates of each county, municipality, school district and special district. Tax Code Section 5.09(a-1)(1) authorizes PTAD to prescribe the format and deadlines for the submission of these data. PTAD's EARS Manual (PDF) offers additional information on this process.

Appraisal districts must submit all SDPVS required forms, including the required backup documentation specified on each form by Oct. 15.

Except for the Tax Rate Submission Spreadsheet, indicate N/A on any form that does not apply or provide a statement iden­tifying the form and why it is no longer required. Do not send blank or incomplete forms. The forms may be emailed to ptad.ears@cpa.texas.gov.

Failure to provide completed and signed SDPVS forms and/or required information by the deadline may impact a school district's state funding and the appraisal district's MAP review.

2022 Tax Rate Information

Tax Code Section 5.091 requires appraisal districts to report to the Comptroller's office the total tax rate imposed by each taxing unit within their jurisdiction.

Appraisal districts must provide the information by using Form 50-886-a, Tax Rate Submission Spreadsheet (XLSX) as detailed in the EARS Manual (PDF).

The appraisal district must provide the adopted tax rates by Oct. 15, 2022, indicating those taxing units with pending tax rate elections by placing a Y in the appropriate column of Form 50-886-a. Appraisal districts must provide a subsequent post-election submittal of the spreadsheet with the final tax rates by Nov. 15, 2022.

Truth-in-Taxation

PTAD updated its TNT website for 2022, providing forms and other comprehensive information for taxing units regarding their legal responsibilities to taxpayers and setting tax rates.

Local Government Relief

A city adjacent to a U.S. military installation, or a county in which a U.S. military installation is wholly or partly located, may be entitled to a disabled veteran assistance payment from the state under Local Government Code Section 140.011. The city or county must be a qualified local government for a fiscal year to receive a payment.

The Comptroller's office made payments totaling $8.5 million to qualified cities and counties in fiscal 2022. A breakdown of the amounts of reimbursement requested and the amounts paid to each entity is available on PTAD's Local Government Relief webpage.

Appealing Appraisal Review Board (ARB) Determinations

A property owner dissatisfied with ARB findings has the right to appeal the ARB decision in one of three ways, depending on the facts and type of property.

A property owner may appeal through regular binding arbitration (RBA) if the property is valued at $5 million or less, or if it is a residence homestead (regardless of value). For information regarding filing a request for RBA with the appraisal district, visit PTAD's RBA webpage.

A property owner may appeal ARB orders for real or personal properties with values of more than $1 million to the State Office of Administrative Hearings (SOAH). More information regarding filing a SOAH appeal is located on SOAH's website. Alternatively, a property owner may appeal an ARB decision to the state district court in which the property is located.

Limited Binding Arbitration

Last session, the Legislature passed HB 988, creating the limited binding arbitration (LBA) program under Tax Code Section 41A.05. This program allows a property owner to file a request for LBA to compel the chief appraiser or ARB chair to comply with certain procedural requirements related to protests before the ARB.

To be eligible to file a request for LBA, a property owner must have filed a protest on the property and meet specific notification and filing requirements. More information on how to file a request for LBA, including filing requirements and deadlines, is available on PTAD’s LBA webpage.

Reappraisal Plans

Appraisal district boards of directors should develop and adopt reappraisal plans no later than Sept. 15. The board must distribute copies of the approved plan to the governing body of each taxing unit participating in the appraisal district and to the Comptroller's office within 60 days of the date of approval. You may email the Comptroller's copy to Charlotte Thomas in PTAD.

Farm and Ranch Survey

The Texas Farm and Ranch Survey (FARS) for the 2022 SDPVS becomes available online in September. PTAD also sends the FARS by regular mail to agricultural appraisal advisory board members. The survey requests 2021 data.

PTAD calculates open-space land values for purposes of the SDPVS annually for all counties. Input from chief appraisers, agricultural appraisal advisory board members, agricultural extension office personnel and other individuals involved in agriculture is important as we calculate typical farm and ranch income and expenses for use in the SDPVS. Information provided increases the accuracy of the SDPVS, which results in more equitable state funding of school districts.

PTAD also publishes the Farm and Ranch Survey Instructional Guide (PDF) that provides information to assist individuals in completing the FARS.

Constitutional Amendments

On May 7, 2022, Texas voters approved the following property tax-related amendments to the Texas Constitution:

• 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 Legislature, Regular Session; and
• A proposal to permanently increase the residence homestead exemption for school districts from $25,000 to $40,000.

More information on the election results is available on the Texas Secretary of State's website.

Adopted Rules

Property Tax Administration rule §9.419, Property Tax Exemption for Certain Leased Motor Vehicles, was filed with the Secretary of State for adoption on April 4, 2022; published in the Texas Administrative Code on April 22, 2022; and became effective April 24, 2022.

Proposed Rules

The Comptroller’s office filed the following Property Tax Administration rules with the Secretary of State in May 2022.

• §9.4001, Valuation of Open-Space and Agricultural Lands, was published in the Texas Register on June 3, 2022. The 30-day comment period began when the rule was published and ended July 3, 2022.
• §9.3061, Installment Payments of Taxes on Property Not Directly Damaged in a Disaster or Emergency Area, was published in the Texas Register on June 10, 2022. The 30-day comment period began when the rule was published and ends July 10, 2022.

Comments on rule proposals may be submitted to Shannon Murphy, Director, Property Tax Assistance Division, by mail to P.O. Box 13528, Austin, Texas, 78711-3528, or by email to ptad.rulecomments@cpa.texas.gov

Action Items

Below is a list of action items for the third quarter of 2022. You can find a full list of important property tax law deadlines for appraisal districts, taxing units and property owners on PTAD's website.

• Aug. 1 – Oil and gas submissions due
• Aug. 1 – EARS due for any appraisal district with fewer than 200,000 taxable parcels but more than 10,000 parcels (excluding Category G)
• Aug. 1 – EPTS due for all appraisal districts
• Sept. 1 – Utility data report due
• Sept. 1 – EARS due for any appraisal district with fewer than 10,000 or more than 200,000 taxable parcels (excluding Category G)
• Sept. 15 – Reappraisal plans due