TAX CODE
CHAPTER 23. APPRAISAL METHODS AND PROCEDURES
SUBCHAPTER A. APPRAISALS GENERALLY
§ 23.01. APPRAISALS GENERALLY. (a) Except as
otherwise provided by this chapter, all taxable property is
appraised at its market value as of January 1.
(b) The market value of property shall be determined by the
application of generally accepted appraisal methods and
techniques. If the appraisal district determines the appraised
value of a property using mass appraisal standards, the mass
appraisal standards must comply with the Uniform Standards of
Professional Appraisal Practice. The same or similar appraisal
methods and techniques shall be used in appraising the same or
similar kinds of property. However, each property shall be
appraised based upon the individual characteristics that affect the
property's market value.
Acts 1979, 66th Leg., p. 2252, ch. 841, § 1, eff. Jan. 1, 1982.
Amended by Acts 1985, 69th Leg., ch. 823, § 5, eff. Jan. 1, 1986;
Acts 1997, 75th Leg., ch. 1039, § 21, eff. Jan. 1, 1998.
§ 23.0101. CONSIDERATION OF ALTERNATE APPRAISAL
METHODS. In determining the market value of property, the chief
appraiser shall consider the cost, income, and market data
comparison methods of appraisal and use the most appropriate
method.
Added by Acts 1997, 75th Leg., ch. 1039, § 22, eff. Jan. 1, 1998.
Amended by Acts 1999, 76th Leg., ch. 1295, § 1, eff. Jan. 1,
2000.
§ 23.011. COST METHOD OF APPRAISAL. If the chief
appraiser uses the cost method of appraisal to determine the market
value of real property, the chief appraiser shall:
(1) use cost data obtained from generally accepted
sources;
(2) make any appropriate adjustment for physical,
functional, or economic obsolescence;
(3) make available to the public on request cost data
developed and used by the chief appraiser as applied to all
properties within a property category and may charge a reasonable
fee to the public for the data;
(4) clearly state the reason for any variation between
generally accepted cost data and locally produced cost data if the
data vary by more than 10 percent; and
(5) make available to the property owner on request
all applicable market data that demonstrate the difference between
the replacement cost of the improvements to the property and the
depreciated value of the improvements.
Added by Acts 1997, 75th Leg., ch. 1039, § 22, eff. Jan. 1, 1998.
§ 23.012. INCOME METHOD OF APPRAISAL. (a) If the
income method of appraisal is the most appropriate method to use to
determine the market value of real property, the chief appraiser
shall:
(1) analyze comparable rental data available to the
chief appraiser or the potential earnings capacity of the property,
or both, to estimate the gross income potential of the property;
(2) analyze comparable operating expense data
available to the chief appraiser to estimate the operating expenses
of the property;
(3) analyze comparable data available to the chief
appraiser to estimate rates of capitalization or rates of discount;
and
(4) base projections of future rent or income
potential and expenses on reasonably clear and appropriate
evidence.
(b) In developing income and expense statements and
cash-flow projections, the chief appraiser shall consider:
(1) historical information and trends;
(2) current supply and demand factors affecting those
trends; and
(3) anticipated events such as competition from other
similar properties under construction.
Added by Acts 1997, 75th Leg., ch. 1039, § 22, eff. Jan. 1, 1998.
Amended by Acts 2003, 78th Leg., ch. 548, § 1, eff. Jan. 1, 2004.
§ 23.013. MARKET DATA COMPARISON METHOD OF
APPRAISAL. If the chief appraiser uses the market data comparison
method of appraisal to determine the market value of real property,
the chief appraiser shall use comparable sales data and shall
adjust the comparable sales to the subject property.
Added by Acts 1997, 75th Leg., ch. 1039, § 22, eff. Jan. 1, 1998.
Amended by Acts 1999, 76th Leg., ch. 1295, § 2, eff. Jan. 1,
2000.
§ 23.014. EXCLUSION OF PROPERTY AS REAL PROPERTY. In
determining the market value of real property, the chief appraiser
shall analyze the effect on that value of, and exclude from that
value the value of, any:
(1) tangible personal property, including trade
fixtures;
(2) intangible personal property; or
(3) other property that is not subject to appraisal as
real property.
Added by Acts 2003, 78th Leg., ch. 548, § 2, eff. Jan. 1, 2004.
§ 23.02. REAPPRAISAL OF PROPERTY DAMAGED IN NATURAL
DISASTER AREA. (a) The governing body of a taxing unit that is
located partly or entirely inside an area declared to be a natural
disaster area by the governor may authorize reappraisal of all
property damaged in the disaster at its market value immediately
after the disaster.
(b) If a taxing unit authorizes a reappraisal pursuant to
this section, the appraisal office shall complete the reappraisal
as soon as practicable. The appraisal office shall include on the
appraisal records, in addition to other information required or
authorized by law:
(1) the date of the disaster;
(2) the appraised value of the property after the
disaster; and
(3) if the reappraisal is not authorized by all taxing
units in which the property is located, an indication of the taxing
units to which the reappraisal applies.
(c) A taxing unit that authorizes a reappraisal under this
section must pay the appraisal district all the costs of making the
reappraisal. If two or more taxing units provide for the
reappraisal in the same territory, each shall share the costs of the
reappraisal in that territory in the proportion the total dollar
amount of taxes imposed in that territory in the preceding year
bears to the total dollar amount of taxes all units providing for
reappraisal of that territory imposed in the preceding year.
(d) If property damaged in a natural disaster is reappraised
as provided by this section, the governing body shall provide for
prorating the taxes on the property for the year in which the
disaster occurred. If the taxes are prorated, taxes due on the
property are determined as follows: the taxes on the property based
on its value on January 1 of that year are multiplied by a fraction,
the denominator of which is 365 and the numerator of which is the
number of days before the date the disaster occurred; the taxes on
the property based on its reappraised value are multiplied by a
fraction, the denominator of which is 365 and the numerator of which
is the number of days, including the date the disaster occurred,
remaining in the year; and the total of the two amounts is the
amount of taxes on the property for the year.
(e) Repealed by Acts 1983, 68th Leg., p. 4829, ch. 851, §
28, eff. Aug. 29, 1983.
Added by Acts 1981, 67th Leg., 1st C.S., p. 136, ch. 13, § 57,
eff. Jan. 1, 1982. Amended by Acts 1983, 68th Leg., p. 4829, ch.
851, § 28, eff. Aug. 29, 1983.
§ 23.03. COMPILATION OF LARGE PROPERTIES AND PROPERTIES
SUBJECT TO LIMITATION ON APPRAISED VALUE. Each year the chief
appraiser shall compile and send to the Texas Department of
Economic Development a list of properties in the appraisal district
that in that tax year:
(1) have a market value of $100 million or more; or
(2) are subject to a limitation on appraised value
under Chapter 313.
Added by Acts 2001, 77th Leg., ch. 1505, § 2, eff. Jan. 1, 2002.
SUBCHAPTER B. SPECIAL APPRAISAL PROVISIONS
§ 23.11. GOVERNMENTAL ACTION THAT CONSTITUTES
TAKING. In appraising private real property, the effect of a
governmental action on the market value of private real property as
determined in a suit or contested case filed under Chapter 2007,
Government Code, shall be taken into consideration by the chief
appraiser in determining the market value of the property.
Added by Acts 1995, 74th Leg., ch. 517, § 3, eff. Sept. 1, 1995.
§ 23.12. INVENTORY. (a) Except as provided by
Sections 23.121, 23.1241, 23.124, and 23.127, the market value of
an inventory is the price for which it would sell as a unit to a
purchaser who would continue the business. An inventory shall
include residential real property which has never been occupied as
a residence and is held for sale in the ordinary course of a trade or
business, provided that the residential real property remains
unoccupied, is not leased or rented, and produces no income.
(b) The chief appraiser shall establish procedures for the
equitable and uniform appraisal of inventory for taxation. In
conjunction with the establishment of the procedures, the chief
appraiser shall:
(1) establish, publish, and adhere to one procedure
for the determination of the quantity of property held in inventory
without regard to the kind, nature, or character of the property
comprising the inventory; and
(2) apply the same enforcement, verification, and
audit procedures, techniques, and criteria to the discovery,
physical examination, or quantification of all inventories without
regard to the kind, nature, or character of the property comprising
the inventory.
(c) In appraising an inventory, the chief appraiser shall
use the information obtained pursuant to Subsection (b) of this
section and shall apply generally accepted appraisal techniques in
computing the market value as defined in Subsection (a) of this
section.
(d) Subsections (b) and (c) of this section apply only to an
inventory held for sale, lease, or rental.
(e) A person who owns an inventory to which Subsection (b)
of this section applies may bring an action to enjoin the chief
appraiser from certifying to a taxing unit any portion of the
appraisal roll that lists an inventory for which the chief
appraiser has not complied with the requirements of Subsection (b)
of this section.
(f) The owner of an inventory other than a dealer's motor
vehicle inventory as that term is defined by Section 23.121, a
dealer's heavy equipment inventory as that term is defined by
Section 23.1241, or a dealer's vessel and outboard motor inventory
as that term is defined by Section 23.124, or a retail manufactured
housing inventory as that term is defined by Section 23.127 may
elect to have the inventory appraised at its market value as of
September 1 of the year preceding the tax year to which the
appraisal applies by filing an application with the chief appraiser
requesting that the inventory be appraised as of September 1. The
application must clearly describe the inventory to which it applies
and be signed by the owner of the inventory. The application
applies to the appraisal of the inventory in each tax year that
begins after the next August 1 following the date the application is
filed with the chief appraiser unless the owner of the inventory by
written notice filed with the chief appraiser revokes the
application or the ownership of the inventory changes. A notice
revoking the application is effective for each tax year that begins
after the next September following the date the notice of
revocation is filed with the chief appraiser.
(g) Expired.
Acts 1979, 66th Leg., p. 2253, ch. 841, § 1, eff. Jan. 1, 1982.
Amended by Acts 1981, 67th Leg., 1st C.S., p. 137, ch. 13, § 58,
eff. Jan. 1, 1982; Acts 1987, 70th Leg., ch. 590, § 1, eff. Aug.
31, 1987; Acts 1989, 71st Leg., ch. 796, § 16, eff. Sept. 1,
1989; Acts 1993, 73rd Leg., ch. 672, § 1, 2, eff. Jan. 1, 1994;
Acts 1995, 74th Leg., ch. 836, § 1, 2, eff. Jan. 1, 1996; Acts
1995, 74th Leg., ch. 945, § 1, eff. Jan. 1, 1996; Acts 1997, 75th
Leg., ch. 165, § 31.01(73), eff. Sept. 1, 1997; Acts 1997, 75th
Leg., ch. 1112, § 1, eff. Jan. 1, 1998; Acts 1997, 75th Leg., ch.
1184, § 1, eff. Jan. 1, 1998.
§ 23.121. DEALER'S MOTOR VEHICLE INVENTORY;
VALUE. (a) In this section:
(1) "Chief appraiser" means the chief appraiser for
the appraisal district in which a dealer's motor vehicle inventory
is located.
(2) "Collector" means the county tax
assessor-collector in the county in which a dealer's motor vehicle
inventory is located.
(3) "Dealer" means a person who holds a dealer's
general distinguishing number issued by the Texas Department of
Transportation under the authority of Chapter 503, Transportation
Code, or who is legally recognized as a motor vehicle dealer
pursuant to the law of another state and who complies with the terms
of Section 152.063(f). The term does not include:
(A) a person who holds a manufacturer's license
issued by the Motor Vehicle Board of the Texas Department of
Transportation;
(B) an entity that is owned or controlled by a
person who holds a manufacturer's license issued by the Motor
Vehicle Board of the Texas Department of Transportation; or
(C) a dealer whose general distinguishing number
issued by the Texas Department of Transportation under the
authority of Chapter 503, Transportation Code, prohibits the dealer
from selling a vehicle to any person except a dealer.
(4) "Dealer's motor vehicle inventory" means all motor
vehicles held for sale by a dealer.
(5) "Dealer-financed sale" means the sale of a motor
vehicle in which the seller finances the purchase of the vehicle, is
the sole lender in the transaction, and retains exclusively the
right to enforce the terms of the agreement evidencing the sale.
(6) "Declaration" means the dealer's motor vehicle
inventory declaration form promulgated by the comptroller as
required by this section.
(7) "Fleet transaction" means the sale of five or more
motor vehicles from a dealer's motor vehicle inventory to the same
person within one calendar year.
(8) "Motor vehicle" means a towable recreational
vehicle or a fully self-propelled vehicle with at least two wheels
which has as its primary purpose the transport of a person or
persons, or property, whether or not intended for use on a public
street, road, or highway. The term does not include:
(A) a vehicle with respect to which the
certificate of title has been surrendered in exchange for a salvage
certificate in the manner provided by law; or
(B) equipment or machinery designed and intended
to be used for a specific work-related purpose other than the
transporting of a person or property.
(9) "Owner" means a dealer who owes current year
vehicle inventory taxes levied against a dealer's motor vehicle
inventory.
(10) "Person" means a natural person, corporation,
partnership, or other legal entity.
(11) "Sales price" means the total amount of money
paid or to be paid for the purchase of a motor vehicle as set forth
as "sales price" in the form entitled "Application for Texas
Certificate of Title" promulgated by the Texas Department of
Transportation. In a transaction that does not involve the use of
that form, the term means an amount of money that is equivalent, or
substantially equivalent, to the amount that would appear as "sales
price" on the Application for Texas Certificate of Title if that
form were involved.
(12) "Subsequent sale" means a dealer-financed sale of
a motor vehicle that, at the time of the sale, has been the subject
of a dealer-financed sale from the same dealer's motor vehicle
inventory in the same calendar year.
(13) "Total annual sales" means the total of the sales
price from every sale from a dealer's motor vehicle inventory for a
12-month period.
(14) "Towable recreational vehicle" means a
nonmotorized vehicle that is designed for temporary human
habitation for recreational, camping, or seasonal use and:
(A) is titled and registered with the Texas
Department of Transportation through the office of the collector;
(B) is permanently built on a single chassis;
(C) contains one or more life support systems;
and
(D) is designed to be towable by a motor vehicle.
(b) For the purpose of the computation of property tax, the
market value of a dealer's motor vehicle inventory on January 1 is
the total annual sales from the dealer's motor vehicle inventory,
less sales to dealers, fleet transactions, and subsequent sales,
for the 12-month period corresponding to the prior tax year,
divided by 12.
(c) For the purpose of the computation of property tax, the
market value of the dealer's motor vehicle inventory of an owner who
was not a dealer on January 1 of the prior tax year, the chief
appraiser shall estimate the market value of the dealer's motor
vehicle inventory. In making the estimate required by this
subsection the chief appraiser shall extrapolate using sales data,
if any, generated by sales from the dealer's motor vehicle
inventory in the prior tax year.
(d) Except for dealer's motor vehicle inventory, personal
property held by a dealer is appraised as provided by other sections
of this code. In the case of a dealer whose sales from dealer's
motor vehicle inventory are made predominately to dealers, the
chief appraiser shall appraise the dealer's motor vehicle inventory
as provided by Section 23.12 of this code.
(e) A dealer is presumed to be an owner of a dealer's motor
vehicle inventory on January 1 if, in the 12-month period ending on
December 31 of the immediately preceding year, the dealer sold a
motor vehicle to a person other than a dealer. The presumption
created by this subsection is not rebutted by the fact that a dealer
has no motor vehicles physically on hand for sale from dealer's
motor vehicle inventory on January 1.
(f) The comptroller shall promulgate a form entitled
Dealer's Motor Vehicle Inventory Declaration. Except as provided
by Section 23.122(l) of this code, not later than February 1 of each
year, or, in the case of a dealer who was not in business on January
1, not later than 30 days after commencement of business, each
dealer shall file a declaration with the chief appraiser and file a
copy with the collector. For purposes of this subsection, a dealer
is presumed to have commenced business on the date of issuance to
the dealer of a dealer's general distinguishing number as provided
by Chapter 503, Transportation Code. Notwithstanding the
presumption created by this subsection, a chief appraiser may, at
his or her sole discretion, designate as the date on which a dealer
commenced business a date other than the date of issuance to the
dealer of a dealer's general distinguishing number. The
declaration is sufficient to comply with this subsection if it sets
forth the following information:
(1) the name and business address of each location at
which the dealer owner conducts business;
(2) each of the dealer's general distinguishing
numbers issued by the Texas Department of Transportation;
(3) a statement that the dealer owner is the owner of a
dealer's motor vehicle inventory; and
(4) the market value of the dealer's motor vehicle
inventory for the current tax year as computed under Section
23.121(b) of this code.
(g) Under the terms provided by this subsection, the chief
appraiser may examine the books and records of the holder of a
general distinguishing number issued by the Texas Department of
Transportation. A request made under this subsection must be made
in writing, delivered personally to the custodian of the records,
at the location for which the general distinguishing number has
been issued, must provide a period not less than 15 days for the
person to respond to the request, and must state that the person to
whom it is addressed has the right to seek judicial relief from
compliance with the request. In a request made under this section
the chief appraiser may examine:
(1) the document issued by the Texas Department of
Transportation showing the person's general distinguishing number;
(2) documentation appropriate to allow the chief
appraiser to ascertain the applicability of this section and
Section 23.122 of this code to the person;
(3) sales records to substantiate information set
forth in the dealer's declaration filed by the person.
(h) If a dealer fails to file a declaration as required by
this section, or if, on the declaration required by this section, a
dealer reports the sale of fewer than five motor vehicles in the
prior year, the chief appraiser shall report that fact to the Texas
Department of Transportation and the department shall initiate
termination proceedings. The chief appraiser shall include with
the report a copy of a declaration, if any, indicating the sale by a
dealer of fewer than five motor vehicles in the prior year. A
report by a chief appraiser to the Texas Department of
Transportation as provided by this subsection is prima facie
grounds for the cancellation of the dealer's general distinguishing
number under Section 503.038(a)(9), Transportation Code, or for
refusal by the Texas Department of Transportation to renew the
dealer's general distinguishing number.
(i) A dealer who fails to file a declaration required by
this section commits an offense. An offense under this subsection
is a misdemeanor punishable by a fine not to exceed $500. Each day
during which a dealer fails to comply with the terms of this
subsection is a separate violation.
(j) A dealer who violates Subsection (g) of this section
commits an offense. An offense under this subsection is a
misdemeanor punishable by a fine not to exceed $500. Each day
during which a person fails to comply with the terms of Subsection
(g) of this section is a separate violation.
(k) In addition to other penalties provided by law, a dealer
who fails to file a declaration required by this section shall
forfeit a penalty. A tax lien attaches to the dealer's business
personal property to secure payment of the penalty. The
appropriate district attorney, criminal district attorney, county
attorney, chief appraiser, or person designated by the chief
appraiser shall collect the penalty established by this section in
the name of the chief appraiser. Venue of an action brought under
this subsection is in the county in which the violation occurred or
in the county in which the owner maintains his principal place of
business or residence. A penalty forfeited under this subsection
is $1,000 for each month or part of a month in which a declaration is
not filed after it is due.
Added by Acts 1993, 73rd Leg., ch. 672, § 3, eff. Jan. 1, 1994.
Renumbered from V.T.C.A., Tax Code § 23.12A by Acts 1995, 74th
Leg., ch. 76, § 17.01(46), eff. Sept. 1, 1995. Renumbered from
V.T.C.A., Tax Code § 23.12A and amended by Acts 1995, 74th Leg.,
ch. 945, § 2, eff. Jan. 1, 1996; Acts 1997, 75th Leg., ch. 165,
§ 30.249, eff. Sept. 1, 1997; Amended by Acts 1997, 75th Leg.,
ch. 321, § 1 to 3, eff. May 26, 1997; Acts 1999, 76th Leg., ch.
1038, § 1, eff. June 18, 1999.
§ 23.122. PREPAYMENT OF TAXES BY CERTAIN
TAXPAYERS. (a) In this section:
(1) "Aggregate tax rate" means the combined tax rates
of all relevant taxing units authorized by law to levy property
taxes against a dealer's motor vehicle inventory.
(2) "Chief appraiser" has the meaning given it in
Section 23.121 of this code.
(3) "Collector" has the meaning given it in Section
23.121 of this code.
(4) "Dealer's motor vehicle inventory" has the meaning
given it in Section 23.121 of this code.
(5) "Declaration" has the meaning given it in Section
23.121 of this code.
(6) "Owner" has the meaning given it in Section 23.121
of this code.
(7) "Relevant taxing unit" means a taxing unit,
including the county, authorized by law to levy property taxes
against a dealer's motor vehicle inventory.
(8) "Sales price" has the meaning given it in Section
23.121 of this code.
(9) "Statement" means the Dealer's Motor Vehicle
Inventory Tax Statement filed on a form promulgated by the
comptroller as required by this section.
(10) "Subsequent sale" has the meaning given it in
Section 23.121 of this code.
(11) "Total annual sales" has the meaning given it in
Section 23.121 of this code.
(12) "Unit property tax factor" means a number equal
to one-twelfth of the prior year aggregate tax rate at the location
where a dealer's motor vehicle inventory is located on January 1 of
the current year.
(b) Except for a vehicle sold to a dealer, a vehicle
included in a fleet transaction, or a vehicle that is the subject of
a subsequent sale, an owner or a person who has agreed by contract
to pay the owner's current year property taxes levied against the
owner's motor vehicle inventory shall assign a unit property tax to
each motor vehicle sold from a dealer's motor vehicle inventory.
The unit property tax of each motor vehicle is determined by
multiplying the sales price of the motor vehicle by the unit
property tax factor. On or before the 10th day of each month the
owner shall, together with the statement filed by the owner as
provided by this section, deposit with the collector a sum equal to
the total of unit property tax assigned to all motor vehicles sold
from the dealer's motor vehicle inventory in the prior month to
which a unit property tax was assigned. The money shall be
deposited by the collector in or otherwise credited by the
collector to the owner's escrow account for prepayment of property
taxes as provided by this section. An escrow account required by
this section is used to pay property taxes levied against the
dealer's motor vehicle inventory, and the owner shall fund the
escrow account as provided by this subsection.
(c) The collector shall maintain the escrow account for each
owner in the county depository. The collector is not required to
maintain a separate account in the depository for each escrow
account created as provided by this section but shall maintain
separate records for each owner. The collector shall retain any
interest generated by the escrow account to defray the cost of
administration of the prepayment procedure established by this
section. Interest generated by an escrow account created as
provided by this section is the sole property of the collector, and
that interest may be used by no entity other than the collector.
Interest generated by an escrow account may not be used to reduce or
otherwise affect the annual appropriation to the collector that
would otherwise be made.
(d) The owner may not withdraw funds in an escrow account
created pursuant to this section.
(e) The comptroller shall promulgate a form entitled a
Dealer's Motor Vehicle Inventory Tax Statement. A dealer shall
complete the form with respect to each motor vehicle sold. A dealer
may use no other form for that purpose. The statement may include
the information the comptroller deems appropriate but shall include
at least the following:
(1) a description of the motor vehicle sold;
(2) the sales price of the motor vehicle;
(3) the unit property tax of the motor vehicle if any;
and
(4) the reason no unit property tax is assigned if no
unit property tax is assigned.
(f) On or before the 10th day of each month a dealer shall
file with the collector the statement covering the sale of each
motor vehicle sold by the dealer in the prior month. A dealer shall
file a copy of the statement with the chief appraiser and retain
documentation relating to the disposition of each motor vehicle
sold. A chief appraiser or collector may examine documents held by
a dealer as required by this subsection in the same manner, and
subject to the same provisions, as are set forth in Section
23.121(g) of this code.
(g) The requirements of Subsection (f) of this section apply
to all dealers, without regard to whether or not the dealer owes
vehicle inventory tax for the current year. A dealer who owes no
vehicle inventory tax for the current year because he was not in
business on January 1 may neither assign a unit property tax to a
motor vehicle sold by the dealer nor remit money with the statement
unless pursuant to the terms of a contract as provided by Subsection
(l) of this section.
(h) A collector may establish a procedure, voluntary or
mandatory, by which the unit property tax of a vehicle is paid and
deposited into an owner's escrow account at the time of processing
the transfer of title to the motor vehicle.
(i) A relevant taxing unit shall, on its tax bill prepared
for the owner of a dealer's motor vehicle inventory, separately
itemize the taxes levied against the dealer's motor vehicle
inventory. When the tax bill is prepared by a relevant taxing unit
for a dealer's motor vehicle inventory, the assessor for the
relevant taxing unit, or an entity, if any, other than the
collector, that collects taxes on behalf of the taxing unit, shall
provide the collector a true and correct copy of the tax bill sent
to the owner, including taxes levied against the dealer's motor
vehicle inventory. The collector shall apply the money in the
owner's escrow account to the taxes imposed and deliver a tax
receipt to the owner. The collector shall apply the amount to each
relevant taxing unit in proportion to the amount of taxes levied,
and the assessor of each relevant taxing unit shall apply the funds
received from the collector to the taxes owed by the owner.
(j) If the amount in the escrow account is not sufficient to
pay the taxes in full, the collector shall apply the money to the
taxes and deliver to the owner a tax receipt for the partial payment
and a tax bill for the amount of the deficiency together with a
statement that the owner must remit to the collector the balance of
the total tax due.
(k) The collector shall remit to each relevant taxing unit
the total amount collected by the collector in deficiency payments.
The assessor of each relevant taxing unit shall apply those funds to
the taxes owed by the owner. Taxes that are due but not received by
the collector on or before January 31 are delinquent. Not later
than February 15 the collector shall distribute to relevant taxing
units in the manner set forth in this section all funds collected
pursuant to the authority of this section and held in escrow by the
collector as provided by this section. This section does not impose
a duty on a collector to collect delinquent taxes that the collector
is not otherwise obligated by law or contract to collect.
(l) A person who acquires the business or assets of an owner
may, by contract, agree to pay the current year vehicle inventory
taxes owed by the owner. The owner who owes the current year tax and
the person who acquires the business or assets of the owner shall
jointly notify the chief appraiser and the collector of the terms of
the agreement and of the fact that the purchaser has agreed to pay
the current year vehicle inventory taxes owed by the selling
dealer. The chief appraiser and the collector shall adjust their
records accordingly. Notwithstanding the terms of Section 23.121
of this code, a person who agrees to pay current year vehicle
inventory taxes as provided by this subsection is not required to
file a declaration until the year following the acquisition. This
subsection does not relieve the selling owner of tax liability.
(m) A dealer who fails to file a statement as required by
this section commits an offense. An offense under this subsection
is a misdemeanor punishable by a fine not to exceed $100. Each day
during which a dealer fails to comply with the terms of this
subsection is a separate violation.
(n) In addition to other penalties provided by law, a dealer
who fails to file a statement as required by this section shall
forfeit a penalty. A tax lien attaches to the dealer's business
personal property to secure payment of the penalty. The
appropriate district attorney, criminal district attorney, county
attorney, collector, or person designated by the collector shall
collect the penalty established by this section in the name of the
collector. Venue of an action brought under this subsection is in
the county in which the violation occurred or in the county in which
the owner maintains his principal place of business or residence. A
penalty forfeited under this subsection is $500 for each month or
part of a month in which a statement is not filed after it is due.
(o) An owner who fails to remit unit property taxes due as
required by this section shall pay a penalty of five percent of the
amount due. If the amount is not paid within 10 days after the due
date, the owner shall pay an additional penalty of five percent of
the amount due. Notwithstanding the terms of this section, unit
property taxes paid on or before January 31 of the year following
the date on which they are due are not delinquent. The collector,
the collector's designated agent, or the county or district
attorney shall enforce the terms of this subsection. A penalty
under this subsection is in addition to any other penalty provided
by law if the owner's taxes are delinquent.
(p) Fines collected pursuant to the authority of this
section shall be deposited in the county depository to the credit of
the general fund. Penalties collected pursuant to the authority of
this section are the sole property of the collector, may be used by
no entity other than the collector, and may not be used to reduce or
otherwise affect the annual appropriation to the collector that
would otherwise be made.
Added by Acts 1993, 73rd Leg., ch. 672, § 4, eff. Jan. 1, 1994.
Renumbered from V.T.C.A., Tax Code § 23.12B by Acts 1995, 74th
Leg., ch. 76, § 17.01(47), eff. Sept. 1, 1995. Renumbered from
V.T.C.A., Tax Code § 23.12B and amended by Acts 1995, 74th Leg.,
ch. 945, § 3, eff. Jan. 1, 1996; Amended by Acts 1997, 75th Leg.,
ch. 321, § 4 to 7, eff. May 26, 1997.
§ 23.123. DECLARATIONS AND STATEMENTS
CONFIDENTIAL. (a) In this section:
(1) "Collector" has the meaning given it in Section
23.122 of this code.
(2) "Chief appraiser" has the meaning given it in
Section 23.122 of this code.
(3) "Dealer" has the meaning given it in Section
23.121 of this code.
(4) "Declaration" has the meaning given it in Section
23.122 of this code.
(5) "Owner" has the meaning given it in Section 23.121
of this code.
(6) "Statement" has the meaning given it in Section
23.122 of this code.
(b) Except as provided by this section, a declaration or
statement filed with a chief appraiser or collector as required by
Section 23.121 or Section 23.122 of this code is confidential and
not open to public inspection. A declaration or statement and the
information contained in either may not be disclosed to anyone
except an employee of the appraisal office who appraises the
property or to an employee of the county tax assessor-collector
involved in the maintenance of the owner's escrow account.
(c) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the declaration or
statement or to that person's representative authorized by the
person in writing to receive the information;
(3) to the comptroller or an employee of the
comptroller authorized by the comptroller to receive the
information;
(4) to a collector or chief appraiser;
(5) to a district attorney, criminal district attorney
or county attorney involved in the enforcement of a penalty imposed
pursuant to Section 23.121 or Section 23.122 of this code;
(6) for statistical purposes if in a form that does not
identify specific property or a specific property owner;
(7) if and to the extent that the information is
required for inclusion in a public document or record that the
appraisal or collection office is required by law to prepare or
maintain; or
(8) to the Texas Department of Transportation for use
by that department in auditing compliance of its licensees with
appropriate provisions of applicable law.
(d) A person who knowingly permits inspection of a
declaration or statement by a person not authorized to inspect the
declaration or statement or who discloses confidential information
contained in the declaration or statement to a person not
authorized to receive the information commits an offense. An
offense under this subsection is a Class B misdemeanor.
Added by Acts 1995, 74th Leg., ch. 945, § 4, eff. Jan. 1, 1996.
Amended by Acts 1999, 76th Leg., ch. 1038, § 2, eff. June 18,
1999.
§ 23.124. DEALER'S VESSEL AND OUTBOARD MOTOR INVENTORY;
VALUE. (a) In this section:
(1) "Chief appraiser" means the chief appraiser for
the appraisal district in which a dealer's vessel and outboard
motor inventory is located.
(2) "Collector" means the county tax
assessor-collector in the county in which a dealer's vessel and
outboard motor inventory is located.
(3) "Dealer" means a person who holds a dealer's and
manufacturer's number issued by the Parks and Wildlife Department
under the authority of Section 31.041, Parks and Wildlife Code, or
is authorized by law or interstate reciprocity agreement to
purchase vessels or outboard motors in Texas without paying the
sales tax. The term does not include a person who is principally
engaged in manufacturing vessels or outboard motors or an entity
that is owned or controlled by such a person.
(4) "Dealer's vessel and outboard motor inventory"
means all vessels and outboard motors held for sale by a dealer.
(5) "Dealer-financed sale" means the sale of a vessel
or outboard motor in which the seller finances the purchase of the
vessel or outboard motor, is the sole lender in the transaction, and
retains exclusively the right to enforce the terms of the agreement
evidencing the sale.
(6) "Declaration" means the dealer's vessel and
outboard motor inventory declaration form promulgated by the
comptroller as required by this section.
(7) "Fleet transaction" means the sale of five or more
vessels or outboard motors from a dealer's vessel and outboard
motor inventory to the same business entity within one calendar
year.
(8) "Outboard motor" has the meaning given it by
Section 31.003, Parks and Wildlife Code.
(9) "Owner" means a dealer who owes current year
vessel and outboard motor inventory taxes levied against a dealer's
vessel and outboard motor inventory.
(10) "Person" means a natural person, corporation,
partnership, or other legal entity.
(11) "Sales price" means the total amount of money
paid or to be paid for the purchase of:
(A) a vessel, other than a trailer that is
treated as a vessel, as set forth as "sales price" in the form
entitled "Application for Texas Certificate of Number/Title for
Boat/Seller, Donor or Trader's Affidavit" promulgated by the Parks
and Wildlife Department;
(B) an outboard motor as set forth as "sales
price" in the form entitled "Application for Texas Certificate of
Title for an Outboard Motor/Seller, Donor or Trader's Affidavit"
promulgated by the Parks and Wildlife Department; or
(C) a trailer that is treated as a vessel as set
forth as "sales price" in the form entitled "Application for Texas
Certificate of Title" promulgated by the Texas Department of
Transportation.
In a transaction involving a vessel, an outboard motor,
or a trailer that is treated as a vessel that does not involve the
use of one of these forms, the term means an amount of money that is
equivalent, or substantially equivalent, to the amount that would
appear as "sales price" on the Application for Texas Certificate of
Number/Title for Boat/Seller, Donor or Trader's Affidavit, the
Application for Texas Certificate of Title for an Outboard
Motor/Seller, Donor or Trader's Affidavit, or the Application for
Texas Certificate of Title if one of these forms were involved.
(12) "Subsequent sale" means a dealer-financed sale of
a vessel or outboard motor that, at the time of the sale, has been
the subject of a dealer-financed sale from the same dealer's vessel
and outboard motor inventory in the same calendar year.
(13) "Total annual sales" means the total of the sales
price from every sale from a dealer's vessel and outboard motor
inventory for a 12-month period.
(14) "Vessel" has the meaning given it by Section
31.003, Parks and Wildlife Code, except such term shall not
include:
(A) vessels of more than 65 feet in length,
measured from end to end over the deck, excluding sheer; and
(B) canoes, kayaks, punts, rowboats, rubber
rafts, or other vessels under 14 feet in length when paddled, poled,
oared, or windblown.
The term "vessel" also includes trailers that are treated as
vessels as defined in this section.
(15) "Trailer treated as a vessel" means a vehicle
that:
(A) is designed to carry a vessel; and
(B) is either a "trailer" or "semitrailer" as
such terms are defined by Section 501.002, Transportation Code.
(b) For the purpose of the computation of property tax, the
market value of a dealer's vessel and outboard motor inventory on
January 1 is the total annual sales from the dealer's vessel and
outboard motor inventory, less sales to dealers, fleet
transactions, and subsequent sales, for the 12-month period
corresponding to the prior tax year, divided by 12.
(c) For the purpose of the computation of property tax on
the market value of a dealer's vessel and outboard motor inventory
of an owner who was not a dealer on January 1 of the prior tax year,
the chief appraiser shall estimate the market value of the dealer's
vessel and outboard motor inventory. In making the estimate
required by this subsection, the chief appraiser shall extrapolate
using sales data, if any, generated by sales from the dealer's
vessel and outboard motor inventory in the prior tax year.
(d) Except for the dealer's vessel and outboard motor
inventory, personal property held by a dealer is appraised as
provided by other sections of this code. In the case of a dealer
whose sales from the dealer's vessel and outboard motor inventory
are made predominantly to dealers, the chief appraiser shall
appraise the dealer's vessel and outboard motor inventory as
provided by Section 23.12 of this code.
(e) A dealer is presumed to be an owner of a dealer's vessel
and outboard motor inventory on January 1 if, in the 12-month period
ending on December 31 of the immediately preceding year, the dealer
sold a vessel or outboard motor to a person other than a dealer. The
presumption created by this subsection is not rebutted by the fact
that a dealer has no vessels or outboard motors physically on hand
for sale from a dealer's vessel and outboard motor inventory on
January 1.
(f) The comptroller shall promulgate a form entitled
"Dealer's Vessel and Outboard Motor Inventory Declaration." Except
as provided by Section 23.125(l) of this code, not later than
February 1 of each year or, in the case of a dealer who was not in
business on January 1, not later than 30 days after commencement of
business, each dealer shall file a declaration with the chief
appraiser and file a copy with the collector. The declaration is
sufficient to comply with this subsection if it sets forth the
following information:
(1) the name and business address of each location at
which the dealer owner conducts business;
(2) each of the dealer's and manufacturer's numbers
issued by the Parks and Wildlife Department;
(3) a statement that the dealer owner is the owner of a
dealer's vessel and outboard motor inventory; and
(4) the market value of the dealer's vessel and
outboard motor inventory for the current tax year as computed under
Subsection (b) of this section.
(g) Under the terms provided by this subsection, the chief
appraiser may examine the books and records of the holder of a
dealer's and manufacturer's number issued by the Parks and Wildlife
Department. A request made under this subsection must be made in
writing, delivered personally to the custodian of the records, must
provide a period not less than 15 days for the person to respond to
the request, and must state that the person to whom it is addressed
has the right to seek judicial relief from compliance with the
request. In a request made under this section the chief appraiser
may examine:
(1) the document issued by the Parks and Wildlife
Department showing the person's dealer's and manufacturer's number;
(2) documentation appropriate to allow the chief
appraiser to ascertain the applicability of this section and
Section 23.125 of this code to the person;
(3) sales records to substantiate information set
forth in the dealer's declaration filed by the person.
(h) If a dealer fails to file a declaration required by this
section, or if, on the declaration required by this section, a
dealer reports the sale of fewer than five vessels or outboard
motors in the prior year, the chief appraiser shall report that fact
to the Parks and Wildlife Department.
(i) A dealer who fails to file a declaration required by
this section commits an offense. An offense under this subsection
is a misdemeanor punishable by a fine not to exceed $500. Each day
during which a dealer fails to comply with the terms of this
subsection is a separate violation.
(j) A dealer who violates Subsection (g) of this section
commits an offense. An offense under this subsection is a
misdemeanor punishable by a fine not to exceed $500. Each day during
which a dealer fails to comply with the terms of Subsection (g) of
this section is a separate violation.
(k) In addition to other penalties provided by law, a dealer
who fails to file a declaration required by this section shall
forfeit a penalty. A tax lien attaches to the dealer's business
personal property to secure payment of the penalty. The
appropriate district attorney, criminal district attorney, or
county attorney shall collect the penalty established by this
section in the name of the chief appraiser or collector. Venue of
an action brought under this subsection is in the county in which
the violation occurred or in the county in which the owner maintains
his principal place of business or residence. A penalty forfeited
under this subsection is $1,000 for each month or part of a month in
which a declaration is not filed after it is due.
Added by Acts 1995, 74th Leg., ch. 836, § 3, eff. Jan. 1, 1996.
Renumbered from V.T.C.A., Tax Code § 23.12D by Acts 1997, 75th
Leg., ch. 165, § 31.01(73), eff. Sept. 1, 1997. Amended by Acts
1997, 75th Leg., ch. 1052, § 1, 2, eff. Jan. 1, 1998.
§ 23.1241. DEALER'S HEAVY EQUIPMENT INVENTORY;
VALUE. (a) In this section:
(1) "Dealer" means a person engaged in the business in
this state of selling heavy equipment.
(2) "Dealer's heavy equipment inventory" means all
items of heavy equipment that a dealer holds for sale at retail.
The term includes items of heavy equipment that are leased or rented
but subject to a purchase option by the lessee or renter.
(3) "Dealer-financed sale" means the sale at retail of
an item of heavy equipment in which the dealer finances the purchase
of the item, is the sole lender in the transaction, and retains
exclusively the right to enforce the terms of the agreement that
evidences the sale.
(4) "Declaration" means a dealer's heavy equipment
inventory declaration form adopted by the comptroller under this
section.
(5) "Fleet transaction" means the sale of five or more
items of heavy equipment from a dealer's heavy equipment inventory
to the same person in one calendar year.
(6) "Heavy equipment" means self-propelled,
self-powered, or pull-type equipment, including farm equipment or a
diesel engine, that weighs at least 3,000 pounds and is intended to
be used for agricultural, construction, industrial, maritime,
mining, or forestry uses. The term does not include a motor vehicle
that is required by:
(A) Chapter 501, Transportation Code, to be
titled; or
(B) Chapter 502, Transportation Code, to be
registered.
(7) "Sales price" means:
(A) the total amount of money paid or to be paid
to a dealer for the purchase of an item of heavy equipment; or
(B) for a lease or rental with an option to
purchase, the total amount of the lease or rental payments plus any
final consideration, excluding interest.
(8) "Subsequent sale" means a dealer-financed sale of
an item of heavy equipment that, at the time of the sale, has been
the subject of a dealer-financed sale from the same dealer's heavy
equipment inventory in the same calendar year.
(9) "Total annual sales" means the total of the sales
price for each sale from a dealer's heavy equipment inventory in a
12-month period.
(b) For the purpose of the computation of property tax:
(1) the market value of a dealer's heavy equipment
inventory on January 1 is the total annual sales, less sales to
dealers, fleet transactions, and subsequent sales, for the 12-month
period corresponding to the preceding tax year, divided by 12; and
(2) a sale is considered to occur when possession of an
item of heavy equipment is transferred from the dealer to the
purchaser.
(c) For the purpose of the computation of property tax on
the market value of the dealer's heavy equipment inventory of an
owner who was not a dealer on January 1 of the preceding tax year,
the chief appraiser shall estimate the market value of the dealer's
heavy equipment inventory. In making the estimate required by this
subsection, the chief appraiser shall extrapolate using sales data,
if any, generated by sales from the dealer's heavy equipment
inventory in the preceding tax year.
(d) Except for dealer's heavy equipment inventory, personal
property held by a dealer is appraised as provided by the other
sections of this code. In the case of a dealer whose sales from the
dealer's heavy equipment inventory are made predominately to other
dealers, the chief appraiser shall appraise the dealer's heavy
equipment inventory as provided by Section 23.12.
(e) A dealer is presumed to be an owner of a dealer's heavy
equipment inventory on January 1 if, in the 12-month period ending
on December 31 of the preceding year, the dealer sold an item of
heavy equipment to a person other than a dealer. The presumption is
not rebutted by the fact that a dealer has no item of heavy
equipment physically on hand for sale from the dealer's heavy
equipment inventory on January 1.
(f) The comptroller by rule shall adopt a dealer's heavy
equipment inventory declaration form. Except as provided by
Section 23.1242(k), not later than February 1 of each year, or, in
the case of a dealer who was not in business on January 1, not later
than 30 days after commencement of business, each dealer shall file
a declaration with the chief appraiser and file a copy with the
collector. The declaration is sufficient to comply with this
subsection if it sets forth:
(1) the name and business address of each location at
which the declarant conducts business;
(2) a statement that the declarant is the owner of a
dealer's heavy equipment inventory; and
(3) the market value of the declarant's heavy
equipment inventory for the current tax year as computed under
Subsection (b).
(g) As provided by this subsection, the chief appraiser may
examine the books and records of a dealer. A request made under
this subsection must be made in writing, must be delivered
personally to the custodian of the records at a location at which
the dealer conducts business, must provide a period of not less than
15 days for the person to respond to the request, and must state
that the person to whom the request is addressed has the right to
seek judicial relief from compliance with the request. In a request
made under this section, the chief appraiser may examine:
(1) documentation appropriate to allow the chief
appraiser to ascertain the applicability of this section and
Section 23.1242 to the person; and
(2) sales records to substantiate information set
forth in the declaration filed by the dealer.
(h) Repealed by Acts 1999, 76th Leg., ch. 574, § 2(1),
eff. June 18, 1999.
(i) A dealer who fails to file a declaration as required by
Subsection (f) commits an offense. An offense under this
subsection is a misdemeanor punishable by a fine not to exceed $500.
Each day that a person fails to file the declaration as required by
Subsection (f) is a separate violation.
(j) In addition to other penalties provided by law, a dealer
who fails to file a declaration required by Subsection (f) shall
forfeit a penalty. A tax lien attaches to the dealer's business
personal property to secure payment of the penalty. The
appropriate district attorney, criminal district attorney, or
county attorney shall collect the penalty established by this
section in the name of the chief appraiser or collector. Venue of
an action brought under this subsection is in the county in which
the violation occurred or in the county in which the owner maintains
the owner's principal place of business or residence. A penalty
forfeited under this subsection is $1,000 for each month or part of
a month in which a declaration is not filed after it is due.
Added by Acts 1997, 75th Leg., ch. 1184, § 2, eff. Jan. 1, 1998.
Amended by Acts 1999, 76th Leg., ch. 574, § 2(1), eff. June 18,
1999; Acts 1999, 76th Leg., ch. 1550, § 1 to 3, eff. Jan. 1,
2000; .
§ 23.1242. PREPAYMENT OF TAXES BY HEAVY EQUIPMENT
DEALERS. (a) In this section:
(1) "Aggregate tax rate" means the combined tax rates
of all appropriate taxing units authorized by law to levy property
taxes against a dealer's heavy equipment inventory.
(2) "Dealer's heavy equipment inventory,"
"declaration," "dealer," "sales price," "subsequent sale," and
"total annual sales" have the meanings assigned those terms by
Section 23.1241.
(3) "Statement" means the dealer's heavy equipment
inventory tax statement filed on a form adopted by the comptroller
under this section.
(4) "Unit property tax factor" means a number equal to
one-twelfth of the preceding year's aggregate ad valorem tax rate
at the location where a dealer's heavy equipment inventory is
located on January 1 of the current year.
(b) Except for an item of heavy equipment sold to a dealer,
an item of heavy equipment included in a fleet transaction, or an
item of heavy equipment that is the subject of a subsequent sale, an
owner or a person who has agreed by contract to pay the owner's
current year property taxes levied against the owner's heavy
equipment inventory shall assign a unit property tax to each item of
heavy equipment sold from a dealer's heavy equipment inventory.
The unit property tax of each item of heavy equipment is determined
by multiplying the sales price of the item by the unit property tax
factor. On or before the 10th day of each month the owner shall,
together with the statement filed by the owner as provided by this
section, deposit with the collector an amount equal to the total of
unit property tax assigned to all items of heavy equipment sold from
the dealer's heavy equipment inventory in the preceding month to
which a unit property tax was assigned. The money shall be
deposited by the collector to the credit of the owner's escrow
account for prepayment of property taxes as provided by this
section. An escrow account required by this section is used to pay
property taxes levied against the dealer's heavy equipment
inventory, and the owner shall fund the escrow account as provided
by this subsection.
(c) The collector shall maintain the escrow account for each
owner in the county depository. The collector is not required to
maintain a separate account in the depository for each escrow
account created as provided by this section but shall maintain
separate records for each owner. The collector shall retain any
interest generated by the escrow account to defray the cost of
administration of the prepayment procedure established by this
section. Interest generated by an escrow account created as
provided by this section is the sole property of the collector and
that interest may not be used by an entity other than the collector.
Interest generated by an escrow account may not be used to reduce or
otherwise affect the annual appropriation to the collector that
would otherwise be made.
(d) The owner may not withdraw funds in an escrow account
created under this section.
(e) The comptroller by rule shall adopt a dealer's heavy
equipment inventory tax statement form. A dealer shall complete
the form with respect to each item of heavy equipment sold. A
dealer may use no other form for that purpose. The statement may
include the information the comptroller considers appropriate but
shall include at least the following:
(1) a description of the item of heavy equipment sold,
including any unique identification or serial number affixed to the
item by the manufacturer;
(2) the sales price of the item of heavy equipment;
(3) the unit property tax of the item of heavy
equipment, if any; and
(4) the reason no unit property tax is assigned if no
unit property tax is assigned.
(f) On or before the 10th day of each month, a dealer shall
file with the collector the statement covering the sale of each item
of heavy equipment sold by the dealer in the preceding month. A
dealer shall file a copy of the statement with the chief appraiser
and retain documentation relating to the disposition of each item
of heavy equipment sold. A chief appraiser or collector may examine
documents held by a dealer as provided by this subsection in the
same manner, and subject to the same conditions, as provided by
Section 23.1241(g).
(g) Except as provided by this subsection, Subsection (f)
applies to any dealer, regardless of whether a dealer owes heavy
equipment inventory tax for the current year. A dealer who owes no
heavy equipment inventory tax for the current year because the
dealer was not in business on January 1:
(1) shall file the statement required by this section
showing the information required by this section for each month
that the dealer is in business; and
(2) may not assign a unit property tax to an item of
heavy equipment sold by the dealer or remit money with the statement
except in compliance with the terms of a contract as provided by
Subsection (k).
(h) A taxing unit shall, on its tax bill prepared for the
owner of a dealer's heavy equipment inventory, separately itemize
the taxes levied against the dealer's heavy equipment inventory.
When the tax bill is prepared for a dealer's heavy equipment
inventory, the assessor for the taxing unit, or an entity, if any,
other than the collector, that collects taxes on behalf of the
taxing unit, shall provide the collector a true and correct copy of
the tax bill sent to the owner, including taxes levied against the
dealer's heavy equipment inventory. The collector shall apply the
money in the owner's escrow account to the taxes imposed and deliver
a tax receipt to the owner. The collector shall apply the amount to
each appropriate taxing unit in proportion to the amount of taxes
levied, and the assessor of each taxing unit shall apply the funds
received from the collector to the taxes owed by the owner.
(i) If the amount in the escrow account is not sufficient to
pay the taxes in full, the collector shall apply the money to the
taxes and deliver to the owner a tax receipt for the partial payment
and a tax bill for the amount of the deficiency together with a
statement that the owner must remit to the collector the balance of
the total tax due.
(j) The collector shall remit to each appropriate taxing
unit the total amount collected by the collector in deficiency
payments. The assessor of each taxing unit shall apply those funds
to the taxes owed by the owner. Taxes that are due but not received
by the collector on or before January 31 are delinquent. Not later
than February 15, the collector shall distribute to each
appropriate taxing unit in the manner provided by this section all
funds collected under authority of this section and held in escrow
by the collector under this section. This section does not impose a
duty on a collector to collect delinquent taxes that the collector
is not otherwise obligated by law or contract to collect.
(k) A person who acquires the business or assets of an owner
may, by contract, agree to pay the current year heavy equipment
inventory taxes owed by the owner. The owner who owes the current
year tax and the person who acquires the business or assets of the
owner shall jointly notify the chief appraiser and the collector of
the terms of the agreement and of the fact that the other person has
agreed to pay the current year heavy equipment inventory taxes owed
by the dealer. The chief appraiser and the collector shall adjust
their records accordingly. Notwithstanding Section 23.1241, a
person who agrees to pay current year heavy equipment inventory
taxes as provided by this subsection is not required to file a
declaration until the year following the acquisition. This
subsection does not relieve the selling owner of the tax liability.
(l) A dealer who fails to file a statement as required by
this section commits an offense. An offense under this subsection
is a misdemeanor punishable by a fine not to exceed $100. Each day
that a dealer fails to comply with this subsection is a separate
violation.
(m) In addition to other penalties provided by law, a dealer
who fails to file a statement as required by this section shall
forfeit a penalty. A tax lien attaches to the owner's business
personal property to secure payment of the penalty. The
appropriate district attorney, criminal district attorney, or
county attorney shall collect the penalty established by this
section in the name of the chief appraiser or collector. Venue of
an action brought under this subsection is in the county in which
the violation occurred or in the county in which the owner maintains
the owner's principal place of business or residence. A penalty
forfeited under this subsection is $500 for each month or part of a
month in which a statement is not filed after it is due.
(n) An owner who fails to remit unit property taxes due as
required by this section shall pay a penalty of five percent of the
amount due. If the amount is not paid within 10 days after the due
date, the owner shall pay an additional penalty of five percent of
the amount due. Notwithstanding this section, unit property taxes
paid on or before January 31 of the year following the date on which
they are due are not delinquent. The collector, the collector's
designated agent, or the county or district attorney shall enforce
this subsection. A penalty under this subsection is in addition to
any other penalty provided by law if the owner's taxes are
delinquent.
(o) A fine collected under this section shall be deposited
in the county depository to the credit of the general fund. A
penalty collected under this section is the sole property of the
collector, may be used by no entity other than the collector, and
may not be used to reduce or otherwise affect the annual
appropriation to the collector that would otherwise be made.
(p) Section 23.123 applies to a declaration or statement
filed under this section in the same manner in which that section
applies to a statement or declaration filed as required by Section
23.121 or 23.122.
Added by Acts 1997, 75th Leg., ch. 1184, § 2, eff. Jan. 1, 1998.
§ 23.125. PREPAYMENT OF TAXES BY CERTAIN
TAXPAYERS. (a) in this section:
(1) "Aggregate tax rate" means the combined tax rates
of all relevant taxing units authorized by law to levy property
taxes against a dealer's vessel and outboard motor inventory.
(2) "Chief appraiser" has the meaning given it in
Section 23.124 of this code.
(3) "Collector" has the meaning given it in Section
23.124 of this code.
(4) "Dealer's vessel and outboard motor inventory" has
the meaning given it in Section 23.124 of this code.
(5) "Declaration" has the meaning given it in Section
23.124 of this code.
(6) "Owner" has the meaning given it in Section 23.124
of this code.
(7) "Relevant taxing unit" means a taxing unit,
including the county, authorized by law to levy property taxes
against a dealer's vessel and outboard motor inventory.
(8) "Sales price" has the meaning given it in Section
23.124 of this code.
(9) "Statement" means the dealer's vessel and outboard
motor inventory tax statement filed on a form promulgated by the
comptroller as required by this section.
(10) "Subsequent sale" has the meaning given it in
Section 23.124 of this code.
(11) "Total annual sales" has the meaning given it in
Section 23.124 of this code.
(12) "Unit property tax factor" means a number equal
to one-twelfth of the prior year aggregate tax rate at the location
where a dealer's vessel and outboard motor inventory is located on
January 1 of the current year.
(b) Except for a vessel or outboard motor sold to a dealer, a
vessel or outboard motor included in a fleet transaction, or a
vessel or outboard motor that is the subject of a subsequent sale,
an owner or a person who has agreed by contract to pay the owner's
current year property taxes levied against the owner's vessel and
outboard motor inventory shall assign a unit property tax to each
vessel and outboard motor sold from a dealer's vessel and outboard
motor inventory. The unit property tax of each vessel or outboard
motor is determined by multiplying the sales price of the vessel or
outboard motor by the unit property tax factor. On or before the
10th day of each month the owner shall, together with the statement
filed by the owner as provided by this section, deposit with the
collector a sum equal to the total of unit property tax assigned to
all vessels and outboard motors sold from the dealer's vessel and
outboard motor inventory in the prior month to which a unit property
tax was assigned. The money shall be deposited by the collector in
or otherwise credited by the collector to the owner's escrow
account for prepayment of property taxes as provided by this
section. An escrow account required by this section is used to pay
property taxes levied against the dealer's vessel and outboard
motor inventory, and the owner shall fund the escrow account as
provided by this subsection.
(c) The collector shall maintain the escrow account for each
owner in the county depository. The collector is not required to
maintain a separate account in the depository for each escrow
account created as provided by this section but shall maintain
separate records for each owner. The collector shall retain any
interest generated by the escrow account to defray the cost of
administration of the prepayment procedure established by this
section. Interest generated by an escrow account created as
provided by this section is the sole property of the collector, and
that interest may be used by no entity other than the collector.
Interest generated by an escrow account may not be used to reduce or
otherwise affect the annual appropriation to the collector that
would otherwise be made.
(d) The owner may not withdraw funds in an escrow account
created pursuant to this section.
(e) The comptroller shall promulgate a form entitled
"Dealer's Vessel and Outboard Motor Inventory Tax Statement." A
dealer shall complete the form with respect to each vessel and
outboard motor sold. A dealer may use no other form for that
purpose. The statement may include the information the comptroller
deems appropriate but shall include at least the following:
(1) a description of the vessel or outboard motor
sold;
(2) the sales price of the vessel or outboard motor;
(3) the unit property tax of the vessel or outboard
motor, if any; and
(4) the reason no unit property tax is assigned if no
unit property tax is assigned.
(f) On or before the 10th day of each month a dealer shall
file with the collector the statement covering the sale of each
vessel or outboard motor sold by the dealer in the prior month. A
dealer shall file a copy of the statement with the chief appraiser
and retain documentation relating to the disposition of each vessel
and outboard motor sold. A chief appraiser or collector may examine
documents held by a dealer as provided by this subsection in the
same manner, and subject to the same provisions, as are set forth in
Section 23.124(g) of this code.
(g) Except as provided by this subsection, the requirements
of Subsection (f) of this section apply to all dealers, without
regard to whether or not the dealer owes vessel and outboard motor
inventory tax for the current year. A dealer who owes no vessel and
outboard motor inventory tax for the current year because he was not
in business on January 1:
(1) shall file the statement required by this section
showing the information required by this section for each month
during which the dealer is in business; and
(2) may neither assign a unit property tax to a vessel
or outboard motor sold by the dealer nor remit money with the
statement unless pursuant to the terms of a contract as provided by
Subsection (l) of this section.
(h) A collector may establish a procedure, voluntary or
mandatory, by which the unit property tax of a vessel or outboard
motor is paid and deposited into an owner's escrow account at the
time of processing the transfer of title to the vessel or outboard
motor.
(i) A relevant taxing unit shall, on its tax bill prepared
for the owner of a dealer's vessel and outboard motor inventory,
separately itemize the taxes levied against the dealer's vessel and
outboard motor inventory. When the tax bill is prepared by a
relevant taxing unit for a dealer's vessel and outboard motor
inventory, the assessor for the relevant taxing unit, or an entity,
if any, other than the collector, that collects taxes on behalf of
the taxing unit, shall provide the collector a true and correct copy
of the tax bill sent to the owner, including taxes levied against a
dealer's vessel and outboard motor inventory. The collector shall
apply the money in the owner's escrow account to the taxes imposed
and deliver a tax receipt to the owner. The collector shall apply
the amount to each relevant taxing unit in proportion to the amount
of taxes levied, and the assessor of each relevant taxing unit shall
apply the funds received from the collector to the taxes owed by the
owner.
(j) If the amount in the escrow account is not sufficient to
pay the taxes in full, the collector shall apply the money to the
taxes and deliver to the owner a tax receipt for the partial payment
and a tax bill for the amount of the deficiency together with a
statement that the owner must remit to the collector the balance of
the total tax due.
(k) The collector shall remit to each relevant taxing unit
the total amount collected by the collector in deficiency payments.
The assessor of each relevant taxing unit shall apply those funds to
the taxes owed by the owner. Taxes that are due but not received by
the collector on or before January 31 are delinquent. Not later
than February 15, the collector shall distribute to relevant taxing
units in the manner set forth in this section all funds collected
pursuant to the authority of this section and held in escrow by the
collector as provided by this section. This section does not impose
a duty on a collector to collect delinquent taxes that the collector
is not otherwise obligated by law or contract to collect.
(l) A person who acquires the business or assets of an owner
may, by contract, agree to pay the current year vessel and outboard
motor inventory taxes owed by the owner. The owner who owes the
current year tax and the person who acquires the business or assets
of the owner shall jointly notify the chief appraiser and the
collector of the terms of the agreement and of the fact that the
other person has agreed to pay the current year vessel and outboard
motor inventory taxes owed by the dealer. The chief appraiser and
the collector shall adjust their records accordingly.
Notwithstanding the terms of Section 23.124 of this code, a person
who agrees to pay current year vessel and outboard motor inventory
taxes as provided by this subsection is not required to file a
declaration until the year following the acquisition. This
subsection does not relieve the selling owner of the tax liability.
(m) A dealer who fails to file a statement as required by
this section commits an offense. An offense under this subsection
is a misdemeanor punishable by a fine not to exceed $100. Each day
during which a dealer fails to comply with the terms of this
subsection is a separate violation.
(n) In addition to other penalties provided by law, a dealer
who fails to file a statement as required by this section shall
forfeit a penalty. A tax lien attaches to the owner's business
personal property to secure payment of the penalty. The
appropriate district attorney, criminal district attorney, or
county attorney shall collect the penalty established by this
section in the name of the chief appraiser or collector. Venue of
an action brought under this subsection is in the county in which
the violation occurred or in the county in which the owner maintains
his principal place of business or residence. A penalty forfeited
under this subsection is $500 for each month or part of a month in
which a statement is not filed after it is due.
(o) An owner who fails to remit unit property taxes due as
required by this section shall pay a penalty of five percent of the
amount due. If the amount is not paid within 10 days after the due
date, the owner shall pay an additional penalty of five percent of
the amount due. Notwithstanding the terms of this section, unit
property taxes paid on or before January 31 of the year following
the date on which they are due are not delinquent. The collector,
the collector's designated agent, or the county or district
attorney shall enforce the terms of this subsection. A penalty
under this subsection is in addition to any other penalty provided
by law if the owner's taxes are delinquent.
(p) Fines and penalties collected pursuant to the authority
of this section shall be deposited in the county depository to the
credit of the general fund.
Added by Acts 1995, 74th Leg., ch. 836, § 4, eff. Jan. 1, 1996.
Renumbered from V.T.C.A., Tax Code § 23.12E by Acts 1997, 75th
Leg., ch. 165, § 31.01(73), eff. Sept. 1, 1997.
§ 23.126. DECLARATIONS AND STATEMENTS
CONFIDENTIAL. (a) in this section:
(1) "Collector" has the meaning given it in Section
23.124 of this code.
(2) "Chief appraiser" has the meaning given it in
Section 23.124 of this code.
(3) "Dealer" has the meaning given it in Section
23.124 of this code.
(4) "Declaration" has the meaning given it in Section
23.124 of this code.
(5) "Owner" has the meaning given it in Section 23.124
of this code.
(6) "Statement" has the meaning given it in Section
23.124 of this code.
(b) Except as provided by this section, a declaration or
statement filed with a chief appraiser or collector as required by
Section 23.124 or Section 23.125 of this code is confidential and
not open to public inspection. A declaration or statement and the
information contained in either may not be disclosed to anyone
except an employee of the appraisal office who appraises the
property or to an employee of the county tax assessor-collector
involved in the maintenance of the owner's escrow account.
(c) Information made confidential by this section may be
disclosed:
(1) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(2) to the person who filed the declaration or
statement or to that person's representative authorized by the
person in writing to receive the information;
(3) to the comptroller or an employee of the
comptroller authorized by the comptroller to receive the
information;
(4) to a collector or chief appraiser;
(5) to a district attorney, criminal district
attorney, or county attorney involved in the enforcement of a
penalty imposed pursuant to Section 23.124 or Section 23.125 of
this code;
(6) for statistical purposes if in a form that does not
identify specific property or a specific property owner; or
(7) if and to the extent that the information is
required for inclusion in a document or record that the appraisal or
collection office is required by law to prepare or maintain.
(d) A person who knowingly permits inspection of a
declaration or statement by a person not authorized to inspect the
declaration or statement or who discloses confidential information
contained in the declaration or statement to a person not
authorized to receive the information commits an offense. An
offense under this subsection is a Class B misdemeanor.
Added by Acts 1995, 74th Leg., ch. 836, § 5, eff. Jan. 1, 1996.
Renumbered from V.T.C.A., Tax Code § 23.12F by Acts 1997, 75th
Leg., ch. 165, § 31.01(73), eff. Sept. 1, 1997.
§ 23.127. RETAIL MANUFACTURED HOUSING INVENTORY;
VALUE. (a) In this section:
(1) "Chief appraiser" means the chief appraiser for
the appraisal district in which a retailer's retail manufactured
housing inventory is located.
(2) "Collector" means the county tax
assessor-collector for the county in which a retailer's retail
manufactured housing inventory is located.
(3) "Declaration" means a retail manufactured housing
inventory declaration form adopted by the comptroller under this
section.
(4) "Department" means the Texas Department of Housing
and Community Affairs.
(5) "HUD-code manufactured home" has the meaning
assigned by Section 1201.003, Occupations Code.
(6) "Manufactured housing" means:
(A) a HUD-code manufactured home as it would
customarily be held by a retailer in the normal course of business
in a retail manufactured housing inventory; or
(B) a mobile home as it would customarily be held
by a retailer in the normal course of business in a retail
manufactured housing inventory.
(7) "Mobile home" has the meaning assigned by Section
1201.003, Occupations Code.
(8) "Owner" means a retailer who owes current year
inventory taxes imposed on a retailer's retail manufactured housing
inventory.
(9) "Retail manufactured housing inventory" means all
units of manufactured housing that a retailer holds for sale at
retail.
(10) "Retailer" has the meaning assigned by Section
1201.003, Occupations Code.
(11) "Retailer-financed sale" means the sale at retail
of a unit of manufactured housing in which the retailer finances the
purchase of the unit of manufactured housing, is the sole lender in
the transaction, and retains exclusively the right to enforce the
terms of the agreement that evidences the sale.
(12) "Sales price" means the total amount of money
paid or to be paid to a retailer for the purchase of a unit of
manufactured housing, excluding any amount paid for the
installation of the unit.
(13) "Subsequent sale" means a retailer-financed sale
of a unit of manufactured housing that, at the time of the sale, has
been the subject of a retailer-financed sale from the same retail
manufactured housing inventory in the same calendar year.
(14) "Total annual sales" means the total of the sales
price for each sale from a retail manufactured housing inventory in
a 12-month period.
(b) For the purpose of the computation of property taxes,
the market value of a retail manufactured housing inventory on
January 1 is the total annual sales, less sales to retailers and
subsequent sales, for the 12-month period corresponding to the
preceding tax year, divided by 12.
(c) For the purpose of the computation of property taxes on
the market value of the retail manufactured housing inventory of an
owner who was not a retailer on January 1 of the preceding tax year,
the chief appraiser shall estimate the market value of the retail
manufactured housing inventory. In making the estimate required by
this subsection, the chief appraiser shall extrapolate using any
sales data generated by sales from the retail manufactured housing
inventory in the preceding tax year.
(d) Except for a retail manufactured housing inventory,
personal property held by a retailer is appraised as provided by the
other sections of this code. In the case of a retailer whose sales
from the retail manufactured housing inventory are made
predominately to other retailers, the chief appraiser shall
appraise the retail manufactured housing inventory as provided by
Section 23.12.
(e) A retailer is presumed to be an owner of a retail
manufactured housing inventory on January 1 if, in the 12-month
period ending on December 31 of the immediately preceding year, the
retailer sold a unit of manufactured housing to a person other than
a retailer. The presumption created by this subsection is not
rebutted by the fact that a retailer does not have any units of
manufactured housing physically on hand for sale from the retail
manufactured housing inventory on January 1.
(f) The comptroller by rule shall adopt a form entitled
"Retail Manufactured Housing Inventory Declaration." Except as
provided by Section 23.128(k), not later than February 1 of each
year or, in the case of a retailer who was not in business on January
1, not later than the 30th day after the date the retailer commences
business, each retailer shall file a declaration with the chief
appraiser and file a copy with the collector. The declaration is
sufficient to comply with this subsection if it sets forth the
following information:
(1) the name and business address of each location at
which the retailer conducts business;
(2) the retailer's license number issued by the
department;
(3) a statement that the retailer is the owner of a
retail manufactured housing inventory; and
(4) the market value of the retailer's manufactured
housing inventory for the current tax year as computed under
Subsection (b).
(g) The chief appraiser may examine the books and records of
a retailer. A request made under this subsection must be made in
writing, delivered personally to the custodian of the records at a
location at which the retailer conducts business, provide a period
of not less than 15 days for the person to respond to the request,
and state that the person to whom the request is addressed has the
right to seek judicial relief from compliance with the request. In
an examination made under this section, the chief appraiser may
examine:
(1) the document issued by the department showing the
retailer's license number;
(2) documentation appropriate to allow the chief
appraiser to ascertain the applicability of this section and
Section 23.128 to the retailer; and
(3) sales records to substantiate information stated
in a retailer's declaration filed by the person.
(h) If a retailer fails to file a declaration as required by
Subsection (f), or if, on the declaration required by Subsection
(f) a retailer reports the sale of fewer than two units of
manufactured housing in the preceding year, the chief appraiser
shall report that fact to the department.
(i) A retailer who fails to file a declaration as required
by Subsection (f) commits an offense. An offense under this
subsection is a misdemeanor punishable by a fine not to exceed $500.
Each day that a retailer fails to file the declaration as required
by Subsection (f) is a separate violation.
(j) A retailer who violates Subsection (g) commits an
offense. An offense under this subsection is a misdemeanor
punishable by a fine not to exceed $500. Each day that a retailer
fails to comply with Subsection (g) is a separate violation.
(k) In addition to other penalties provided by law, a
retailer who fails to file a declaration required by Subsection (f)
is liable for a penalty in the amount of $1,000 for each month or
part of a month in which a declaration is not filed after it is due.
A lien attaches to the retailer's business personal property to
secure payment of the penalty. The appropriate district attorney,
criminal district attorney, county attorney, chief appraiser, or
person designated by the chief appraiser shall collect the penalty
established by this section in the name of the chief appraiser.
Venue of an action brought under this subsection is in the county in
which the violation occurred or in the county in which the retailer
maintains the retailer's principal place of business or residence.
(l) Section 23.123 applies to a declaration filed under this
section in the same manner in which that section applies to a
declaration filed as required by Section 23.121.
Added by Acts 1997, 75th Leg., ch. 1112, § 2, eff. Jan. 1, 1998.
Amended by Acts 1999, 76th Leg., ch. 1060, § 1, eff. Jan. 1,
2000; Acts 2003, 78th Leg., ch. 1276, § 14A.812, eff. Sept. 1,
2003.
§ 23.128. PREPAYMENT OF TAXES BY MANUFACTURED HOUSING
RETAILERS. (a) In this section:
(1) "Aggregate tax rate" means the combined tax rates
of all appropriate taxing units authorized by law to impose
property taxes on a retail manufactured housing inventory.
(2) "Appropriate taxing unit" means a taxing unit,
including the county, authorized by law to impose property taxes on
a retail manufactured housing inventory.
(3) "Chief appraiser," "collector," "declaration,"
"manufactured housing," "owner," "retail manufactured housing
inventory," "retailer," "sales price," "subsequent sale," and
"total annual sales" have the meanings assigned by Section 23.127.
(4) "Statement" means the retail manufactured housing
inventory tax statement filed on a form adopted by the comptroller
under this section.
(5) "Unit property tax factor" means a number equal to
one-twelfth of the preceding year's aggregate ad valorem tax rate
at the location at which a retail manufactured housing inventory is
located on January 1 of the current year.
(b) Except for a unit of manufactured housing sold to a
retailer or a unit of manufactured housing that is the subject of a
subsequent sale, a retailer or a person who has agreed by contract
to pay the retailer's current year property taxes imposed on the
retailer's manufactured housing inventory shall assign a unit
property tax to each unit of manufactured housing sold from a retail
manufactured housing inventory. The unit property tax of each unit
of manufactured housing is determined by multiplying the sales
price of the unit by the unit property tax factor. On or before the
10th day of each month the retailer shall, together with the
statement filed by the retailer as provided by this section,
deposit with the collector an amount equal to the total of the unit
property tax assigned to all units of manufactured housing sold
from the retail manufactured housing inventory in the preceding
month to which a unit property tax was assigned. The collector
shall deposit the money to the credit of the retailer's escrow
account for prepayment of property taxes as provided by this
section. An escrow account required by this section is used to pay
property taxes imposed on the retail manufactured housing
inventory, and the retailer shall fund the escrow account as
provided by this subsection.
(c) The collector shall maintain the escrow account for each
retailer in the county depository. The collector is not required to
maintain a separate account in the depository for each escrow
account created as provided by this section but shall maintain
separate records for each retailer. The collector shall retain any
interest generated by the escrow account to defray the cost of
administration of the prepayment procedure established by this
section. Interest generated by an escrow account created as
provided by this section is the sole property of the collector and
may not be used by an entity other than the collector. Interest
generated by an escrow account may not be used to reduce or
otherwise affect the annual appropriation to the collector that
would otherwise be made.
(d) The retailer may not withdraw money in an escrow account
created under this section.
(e) The comptroller by rule shall adopt a form entitled
"Retail Manufactured Housing Inventory Tax Statement." A retailer
shall complete the form with respect to each unit of manufactured
housing sold. A retailer may not use another form for that purpose.
The statement shall include:
(1) a description of the unit of manufactured housing
sold, including any unique identification or serial number affixed
to the unit by the manufacturer;
(2) the sales price of the unit of manufactured
housing;
(3) any unit property tax of the unit of manufactured
housing;
(4) the reason a unit property tax is not assigned if
that is the case; and
(5) any other information the comptroller considers
appropriate.
(f) On or before the 10th day of each month, a retailer shall
file with the collector the statement covering the sale of each unit
of manufactured housing sold by the retailer in the preceding
month. A retailer shall file a copy of the statement with the chief
appraiser and retain documentation relating to the disposition of
each unit of manufactured housing sold. A chief appraiser or
collector may examine documents held by a retailer as required by
this subsection in the same manner, and subject to the same
conditions, as in Section 23.127(g).
(g) Subsection (f) applies to a retailer regardless of
whether the retailer owes retail manufactured housing inventory tax
for the current year. A retailer who does not owe any retail
manufactured housing inventory tax for the current year because the
retailer was not in business on January 1 may not assign a unit
property tax to a unit of manufactured housing sold by the retailer
or remit money with the statement unless under the terms of a
contract as provided by Subsection (k).
(h) An appropriate taxing unit shall, on its tax bill
prepared for the owner of a retail manufactured housing inventory,
separately itemize the taxes imposed on the retail manufactured
housing inventory. When the tax bill is prepared for a retail
manufactured housing inventory, the assessor for the taxing unit,
or an entity, if any, other than the collector, that collects taxes
on behalf of the taxing unit, shall provide the collector a true and
correct copy of the tax bill sent to the owner, including taxes
imposed on the retail manufactured housing inventory. The
collector shall apply the money in the owner's escrow account to the
taxes imposed and deliver a tax receipt to the owner. The collector
shall apply the amount to each appropriate taxing unit in
proportion to the amount of taxes imposed, and the assessor of each
taxing unit shall apply the money received from the collector to the
taxes owed by the owner. No penalties or interest shall be assessed
against an owner for property taxes which the owner has previously
paid but which are not delivered to the appropriate taxing unit
before the date on which such taxes become delinquent.
(i) If the amount in the escrow account is not sufficient to
pay the taxes in full, the collector shall apply the money to the
taxes and deliver to the owner a tax receipt for the partial payment
and a tax bill for the amount of the deficiency together with a
statement that the owner must remit to the collector the balance of
the total tax due; however, no penalty or interest shall be
assessed against an owner for that portion of the property taxes
which represents the amount of the partial payment if the amount of
the deficiency is not paid before the date the deficiency is
delinquent.
(j) The collector shall remit to each appropriate taxing
unit the total amount collected by the collector in deficiency
payments. The assessor of each taxing unit shall apply that amount
to the taxes owed by the owner. Taxes that are due but not received
by the collector on or before January 31 are delinquent. Not later
than February 15, the collector shall distribute to each
appropriate taxing unit in the manner provided by this section all
money collected under this section and held in escrow by the
collector under this section. This section does not impose a duty
on a collector to collect delinquent taxes that the collector is not
otherwise obligated by law or contract to collect.
(k) A person who acquires the business or assets of a
retailer may, by contract, agree to pay the current year retail
manufactured housing inventory taxes owed by the retailer. The
retailer who owes the current year tax and the person who acquires
the business or assets of the retailer shall jointly notify the
chief appraiser and the collector of the terms of the agreement and
of the fact that the purchaser has agreed to pay the current year
retail manufactured housing inventory taxes owed by the selling
retailer. The chief appraiser and the collector shall adjust their
records accordingly. Notwithstanding Section 23.127, a person who
agrees to pay current year retail manufactured housing inventory
taxes as provided by this subsection is not required to file a
declaration until the year following the acquisition. This
subsection does not relieve the selling retailer of tax liability.
(l) A retailer who fails to file a statement as required by
this section commits an offense. An offense under this subsection
is a misdemeanor punishable by a fine not to exceed $100. Each day
that a retailer fails to comply with this subsection is a separate
violation.
(m) In addition to other penalties provided by law, a
retailer who fails to file a statement as required by this section
is liable for a penalty in the amount of $500 for each month or part
of a month in which a statement is not filed after it is due. A tax
lien attaches to the retailer's business personal property to
secure payment of the penalty. The appropriate district attorney,
criminal district attorney, county attorney, collector, or person
designated by the collector shall collect the penalty established
by this section in the name of the collector. Venue of an action
brought under this subsection is in the county in which the
violation occurred or in the county in which the retailer maintains
the retailer's principal place of business or residence.
(n) A retailer who fails to remit unit property taxes due as
required by this section shall pay a penalty of five percent of the
amount due. If the amount is not paid within 10 days after the due
date, the retailer shall pay an additional penalty of five percent
of the amount due. Notwithstanding this section, unit property
taxes paid on or before January 31 of the year following the date on
which they are due are not delinquent. The collector, the
collector's designated agent, or the county or district attorney
shall enforce this subsection. A penalty under this subsection is
in addition to any other penalty provided by law if the owner's
taxes are delinquent.
(o) A fine collected under this section shall be deposited
in the county depository to the credit of the general fund. A
penalty collected under this section is the sole property of the
collector and may not be used by an entity other than the collector
or used to reduce or otherwise affect the annual appropriation to
the collector that would otherwise be made.
(p) Section 23.123 applies to a statement filed under this
section in the same manner in which that section applies to a
statement filed as required by Section 23.122.
Added by Acts 1997, 75th Leg., ch. 1112, § 2, eff. Jan. 1, 1998.
Amended by Acts 1999, 76th Leg., ch. 1060, § 2, eff. Jan. 1,
2000; Acts 1999, 76th Leg., ch. 1060, § 3, eff. Sept. 1, 1999.
§ 23.13. TAXABLE LEASEHOLDS. A taxable leasehold or
other possessory interest in real property that is exempt from
taxation to the owner of the estate or interest encumbered by the
possessory interest is appraised at the market value of the
leasehold or other possessory interest. However, the appraised
value may not be less than the total rental paid for the interest
for the current tax year.
Acts 1979, 66th Leg., p. 2253, ch. 841, § 1, eff. Jan. 1, 1982.
§ 23.14. APPRAISAL OF PROPERTY SUBJECT TO ENVIRONMENTAL
RESPONSE REQUIREMENT. (a) In this section, "environmental
response requirement" means remedial action by a property owner to
correct, mitigate, or prevent a present or future air, water, or
land pollution.
(b) In appraising real property that the chief appraiser
knows is subject to an environmental response requirement, the
present value of the estimated cost to the owner of the property of
the environmental response requirement is an appropriate element
that reduces market value and shall be taken into consideration by
the chief appraiser in determining the market value of the
property.
Added by Acts 1993, 73rd Leg., ch. 403, § 1, eff. Aug. 30, 1993.
§ 23.15. INTANGIBLES OF AN INSURANCE
COMPANY. Intangible property owned by an insurance company
incorporated under the laws of this state is appraised as provided
by Article 4.01, Insurance Code.
Acts 1979, 66th Leg., p. 2253, ch. 841, § 1, eff. Jan. 1, 1982.
§ 23.16. INTANGIBLES OF A SAVINGS AND LOAN
ASSOCIATION. Intangible property owned by a savings and loan
association is appraised as provided by Section 89.003, Finance
Code.
Acts 1979, 66th Leg., p. 2253, ch. 841, § 1, eff. Jan. 1, 1982.
Amended by Acts 1999, 76th Leg., ch. 62, § 7.90, eff. Sept. 1,
1999.
§ 23.17. MINERAL INTEREST NOT BEING PRODUCED. An
interest in a mineral that may be removed by surface mining or
quarrying from a deposit and that is not being produced is appraised
at the price for which the interest would sell while the mineral is
in place and not being produced. The appraised value is determined
by applying a per acre value to the number of acres covered by the
interest. The aggregate of the appraised value of the interest and
the appraised value of all other interests that if not under
separate ownership would constitute a fee simple estate in real
property may not exceed the appraised value that would be placed on
the fee estate if the interest in minerals were not owned
separately.
Acts 1979, 66th Leg., p. 2253, ch. 841, § 1, eff. Jan. 1, 1982.
§ 23.175. OIL OR GAS INTEREST. (a) If a real property
interest in oil or gas in place is appraised by a method that takes
into account the future income from the sale of oil or gas to be
produced from the interest, the method must use the average price of
the oil or gas from the interest for the preceding year as the price
at which the oil or gas produced from the interest is projected to
be sold in the current year of the appraisal. The average price for
the preceding year is calculated by dividing the sum of the prices
for which oil and gas from the interest was selling on each day of
the preceding calendar year, excluding February 29, by 365. If
there was no production of oil or gas from the interest on any day
during the preceding calendar year, the average price for which
similar oil and gas from comparable interests was selling on that
day is to be used. If market conditions warrant, the average price
from the preceding year may be increased or decreased in the second
and/or succeeding years of an appraisal that takes into account the
future income from the sale of oil or gas to be produced from the
interest. If the average price from the preceding year is increased
in the second or any succeeding year of an appraisal that takes into
account the future income from the sale of oil or gas from the
interest, the annual percentage rate of increase may be no greater
than the annual percentage rate increase projected for that year by
the comptroller for revenue estimating purposes; however, in no
event may the price used in the second or any succeeding year of an
appraisal exceed 150 percent of the price used in the current year
of the appraisal. The price used in the current year may be
decreased by any amount in the second and succeeding year of an
appraisal.
(b) The comptroller by rule shall develop and distribute to
each appraisal office appraisal manuals that specify methods and
procedures to discount future income from the sale of oil or gas
from the interest to present value.
(c) Each appraisal office shall use the methods and
procedures specified by the appraisal manuals developed under
Subsection (b) of this section.
Added by Acts 1993, 73rd Leg., ch. 998, § 1, eff. Sept. 1, 1993.
§ 23.18. PROPERTY OWNED BY A NONPROFIT HOMEOWNERS'
ORGANIZATION FOR THE BENEFIT OF ITS MEMBERS. (a) Because many
residential subdivisions are developed on the basis of a nonprofit
corporation or association maintaining nominal ownership to
property, such as swimming pools, parks, meeting halls, parking
lots, tennis courts, or other similar property, that is held for the
use, benefit, and enjoyment of the members of the organization,
that nominally owned property is to be appraised as provided by this
section on the basis of a nominal value to avoid double taxation of
the property that would result from taxation on the basis of market
value of both the property of the organization and the residential
units or lots of the members of the organization, whose property
values are enhanced by the right to use the organization's
property.
(b) All property owned by an organization that qualifies as
a nonprofit homeowners' organization under this section is
appraised at a nominal value as provided by this section if:
(1) the property is held for the use, benefit, and
enjoyment of all members of the organization equally;
(2) each member of the organization owns an easement,
license, or other nonrevokable right for the use and enjoyment on an
equal basis of all property held by the organization, even if the
right is subject to a restriction imposed by the instruments
conveying the right or interest or granting the easement or subject
to a rule, regulation, or bylaw imposed by the organization
pursuant to authority granted by articles of incorporation,
declaration of covenants, conditions and restrictions, bylaws, or
articles of association of the organization; and
(3) each member's easement, license, or other
nonrevokable right to the use and enjoyment of the property is
appurtenant to and an integral part of the taxable real property
owned by the member.
(c) The chief appraiser, in appraising property owned by a
member of a qualified nonprofit homeowners' organization who is
entitled to the use and enjoyment of facilities owned by the
organization, shall consider the enhanced value of the property
resulting from the member's right to the use and benefit of those
facilities.
(d) An organization qualifies as a nonprofit homeowners'
organization under this section if:
(1) it engages in residential real estate management;
(2) it is organized and operated to provide for the
acquisition, construction, management, maintenance, and care of
property nominally owned by the organization and held for the use,
benefit, and enjoyment of its members;
(3) 60 percent or more of the gross income of the
organization consists of amounts received as membership dues, fees,
or assessments from owners of residences or residential lots within
an area subject to the jurisdiction and assessment of the
organization;
(4) 90 percent or more of the expenditures of the
organization is made for the purpose of acquiring, constructing,
managing, maintaining, and caring for the property nominally held
by the organization;
(5) each member owns an easement, a license, or other
nonrevokable right for the use and enjoyment on an equal basis of
all property nominally owned by the organization even if the right
is subject to a restriction imposed by the instruments conveying
the right or interest or granting the easement or subject to a rule,
regulation, or bylaw imposed by the organization pursuant to
authority granted by articles of incorporation, declaration of
covenants, conditions and restrictions, the bylaws, or articles of
association of the organization;
(6) net earnings of the organization do not inure to
the benefit of any member of the organization or individual, other
than by acquiring, constructing, or providing management,
maintenance, and care of the organization's property or by a rebate
of excess membership dues, fees, or assessments; and
(7) it qualifies for taxation under Section 1301 of
the Tax Reform Act of 1976, Section 528 of the Internal Revenue Code
of 1954, as amended, entitled "Certain Homeowners Associations."
Added by Acts 1981, 67th Leg., 1st C.S., p. 138, ch. 13, § 59,
eff. Jan. 1, 1982.
§ 23.19. PROPERTY OCCUPIED BY STOCKHOLDERS OF
CORPORATION INCORPORATED UNDER COOPERATIVE ASSOCIATION
ACT. (a) In this section, "cooperative housing corporation"
means a corporation incorporated under the Cooperative Association
Act (Article 1396-50.01, Vernon's Texas Civil Statutes) to provide
dwelling places for its stockholders.
(b) If an appraisal district receives a written request for
the appraisal of real property and improvements of a cooperative
housing corporation according to the separate interests of the
corporation's stockholders, the chief appraiser shall separately
appraise the interests described by Subsection (d) if the
conditions required by Subsections (e) and (f) have been met.
Separate appraisal under this section is for the purposes of
administration of tax exemptions, determination of applicable
limitations of taxes under Section 11.26 or 11.261, and
apportionment by a cooperative housing corporation of property
taxes among its stockholders but is not the basis for determining
value on which a tax is imposed under this title. A stockholder
whose interest is separately appraised under this section may
protest and appeal the appraised value in the manner provided by
this title for protest and appeal of the appraised value of other
property.
(c) An appraisal under this section applies to the tax year
in which a request is made under this section only if the request is
received by the appraisal district before March 1. After the first
separate appr
