Statement - September 2001

Comptroller Rules and Forms

Law Changes Require New and Amended Rules and Forms
During its recent session, the 77th Texas Legislature amended and adopted laws that will require the Comptroller to adopt new property tax rules and forms and amend current ones.
The Comptroller's Property Tax Division (PTD) is drafting these new rules and amendments to comply with the new laws for tax year 2002. The PTD will send copies of the new and proposed changes to rules and forms to county tax assessors and chief appraisers for their comments when the rules are published in the Texas Register. Plans are to adopt and distribute the final rules and forms in early winter.
See the chart below for new legislation that requires new or amended Comptroller rule.

Bill Number Rules and Forms

HB 16 Rule 9.415, Applications for Property Tax Exemptions. Application for Disabled Veterans or Survivor's Exemptions.

HB 394 Requires chief appraiser to send local notices of going out of business sale. Chief appraiser notifies Comptroller for purposes of collecting state taxes. No rule.

HB 612 Central registry in Comptroller's office for reinvestment zones designated under Chapter 311, Tax Code. Comptroller report on reinvestment zones and plans to the legislature and governor not later than December 31 of even-numbered years.

HB 824 Rule 9.415, Applications for Property Tax Exemptions. Miscellaneous Exemption Application for County Fair Associations.

HB 1392 and
HB 3383 Rule 9.415, Applications for Property Tax Exemptions. Application for Community Development Organization Exemption. Change to one-time application, update property, and add contribution requirements.

HB 1689 Comptroller determination letter to exempt organizations engaged primarily in performing charitable functions. Based on a constitutional amendment in 1999, organizations can qualify as a charitable organization for purposes of property tax exemptions if they are "primarily" engaged in charitable functions. Before the amendment, organizations were required to be engaged in "purely" charitable functions. Following adoption of the exemption by the local taxing unit, an organization would be required to obtain a determination letter from the Comptroller stating the organization is engaged primarily in performing charitable functions. The chief appraiser would be required to accept the letter as conclusive evidence as to whether the organization engages primarily in performing charitable functions and is eligible for the exemption. A new determination letter would be required every fifth year after the exemption is granted.

HB 2076
HJR 44 By local option, exemption of travel trailers from property taxes -- contingent on passage of constitutional amendment November 6, 2001. Rule 9.415, Applications for Property Tax Exemptions. New application form.

HB 3123 Rule adopting Texas Parks and Wildlife Department standards for the qualification of open space land used for wildlife management.

HB 3364 Tax Deferral Affidavit to include tax deferral for disabled homeowners.

SB 248 Exempts from property taxation motor vehicles (passenger cars or trucks with a shipping weight of not more than 9,000 pounds) leased for personal use. Personal use would mean using the vehicle more than 50 percent of its use (based on mileage) for activities that do not involve the production of income. The Comptroller by rule will establish exemption application requirements and procedures to determine whether a vehicle qualifies for an exemption. The lessee will be required to complete a Comptroller-adopted form certifying under oath that he or she does not hold the vehicle primarily for the production of income. The owner (lessee) will be required to maintain the lessee executed forms for inspection and copying by the appraisal district. The owner will render non-exempt vehicles for taxation and provide to the chief appraiser a additional list of all leased vehicles. The exemption would apply only to vehicles subject to a lease entered into on or after January 2, 2001. Cities may opt to tax personal leased vehicles.

SB 862 Rule 9.415, Applications for Property Tax Exemptions. Application for Freeport Property Exemption. Update application to provide for late information and late application.

SB 1574
SJR 47 Exempts raw cocoa and green coffee held in Harris County -- contingent on passage of constitutional amendment November 6, 2001. Passage will require amendment to Rule 9.415, Applications for Property Tax Exemptions, and new exemption form.

SJR 6 Passage of constitutional amendment November 6, 2001 authorizes legislature to exempt goods in transit. After holding a public hearing, taxing units may elect to tax goods in transit. This amendment expands freeport exemption--goods, wares merchandise and other personal property--and will not require goods to leave the state to receive the exemption. Items will only be required to be moved within 270 days of being brought into the state or acquired by the owner. No action until enabling legislation is passed.

SB 247 Prescribe model form for Confidential Home Address Information for Peace Officers and Others required for appraisal districts. No Rule.

HB 468 Model form for chief appraiser for any unpaid taxes on manufactured housing. Model form for request by person for notice of any unpaid taxes from chief appraiser. No Rule.

HB 1200 Rule 9.415, Applications for Property Tax Exemptions. New Chapter 313 Economic Development Exemption Application for School Taxes.

SB 1125 Rule 9.105, Tax Refund for Economic Development. Application for Refund of State Taxes Paid by Person Owning Certain Abated Property.

SB 2 Rule 9.415, Applications for Property Tax Exemptions. Exemption Application for Water Conservation Initiatives (to include brush and desalination initiatives).

SB 1095 Model Form for Railroad Rolling Stock Certification. Update for supplemental records.

HB 506 Model Certificate for Transferring School Tax Ceiling. Update current form for surviving spouse 55 or older. No Rule.

HBs 1448 and 3001;
SBs 1710 and 985 Rule 9.415, Applications for Property Tax Exemptions. Application for Property Tax Abatement Exemption. Amend as necessary for abatement law changes.

Bill Number	Rules and Forms
HB 16	Rule 9.415, Applications for Property Tax Exemptions. Application for Disabled Veterans or Survivor's Exemptions.
HB 394	Requires chief appraiser to send local notices of going out of business sale. Chief appraiser notifies Comptroller for purposes of collecting state taxes. No rule.
HB 612	Central registry in Comptroller's office for reinvestment zones designated under Chapter 311, Tax Code. Comptroller report on reinvestment zones and plans to the legislature and governor not later than December 31 of even-numbered years.
HB 824	Rule 9.415, Applications for Property Tax Exemptions. Miscellaneous Exemption Application for County Fair Associations.
HB 1392 and HB 3383	Rule 9.415, Applications for Property Tax Exemptions. Application for Community Development Organization Exemption. Change to one-time application, update property, and add contribution requirements.
HB 1689	Comptroller determination letter to exempt organizations engaged primarily in performing charitable functions. Based on a constitutional amendment in 1999, organizations can qualify as a charitable organization for purposes of property tax exemptions if they are "primarily" engaged in charitable functions. Before the amendment, organizations were required to be engaged in "purely" charitable functions. Following adoption of the exemption by the local taxing unit, an organization would be required to obtain a determination letter from the Comptroller stating the organization is engaged primarily in performing charitable functions. The chief appraiser would be required to accept the letter as conclusive evidence as to whether the organization engages primarily in performing charitable functions and is eligible for the exemption. A new determination letter would be required every fifth year after the exemption is granted.
HB 2076 HJR 44	By local option, exemption of travel trailers from property taxes -- contingent on passage of constitutional amendment November 6, 2001. Rule 9.415, Applications for Property Tax Exemptions. New application form.
HB 3123	Rule adopting Texas Parks and Wildlife Department standards for the qualification of open space land used for wildlife management.
HB 3364	Tax Deferral Affidavit to include tax deferral for disabled homeowners.
SB 248	Exempts from property taxation motor vehicles (passenger cars or trucks with a shipping weight of not more than 9,000 pounds) leased for personal use. Personal use would mean using the vehicle more than 50 percent of its use (based on mileage) for activities that do not involve the production of income. The Comptroller by rule will establish exemption application requirements and procedures to determine whether a vehicle qualifies for an exemption. The lessee will be required to complete a Comptroller-adopted form certifying under oath that he or she does not hold the vehicle primarily for the production of income. The owner (lessee) will be required to maintain the lessee executed forms for inspection and copying by the appraisal district. The owner will render non-exempt vehicles for taxation and provide to the chief appraiser a additional list of all leased vehicles. The exemption would apply only to vehicles subject to a lease entered into on or after January 2, 2001. Cities may opt to tax personal leased vehicles.
SB 862	Rule 9.415, Applications for Property Tax Exemptions. Application for Freeport Property Exemption. Update application to provide for late information and late application.
SB 1574 SJR 47	Exempts raw cocoa and green coffee held in Harris County -- contingent on passage of constitutional amendment November 6, 2001. Passage will require amendment to Rule 9.415, Applications for Property Tax Exemptions, and new exemption form.
SJR 6	Passage of constitutional amendment November 6, 2001 authorizes legislature to exempt goods in transit. After holding a public hearing, taxing units may elect to tax goods in transit. This amendment expands freeport exemption--goods, wares merchandise and other personal property--and will not require goods to leave the state to receive the exemption. Items will only be required to be moved within 270 days of being brought into the state or acquired by the owner. No action until enabling legislation is passed.
SB 247	Prescribe model form for Confidential Home Address Information for Peace Officers and Others required for appraisal districts. No Rule.
HB 468	Model form for chief appraiser for any unpaid taxes on manufactured housing. Model form for request by person for notice of any unpaid taxes from chief appraiser. No Rule.
HB 1200	Rule 9.415, Applications for Property Tax Exemptions. New Chapter 313 Economic Development Exemption Application for School Taxes.
SB 1125	Rule 9.105, Tax Refund for Economic Development. Application for Refund of State Taxes Paid by Person Owning Certain Abated Property.
SB 2	Rule 9.415, Applications for Property Tax Exemptions. Exemption Application for Water Conservation Initiatives (to include brush and desalination initiatives).
SB 1095	Model Form for Railroad Rolling Stock Certification. Update for supplemental records.
HB 506	Model Certificate for Transferring School Tax Ceiling. Update current form for surviving spouse 55 or older. No Rule.
HBs 1448 and 3001; SBs 1710 and 985	Rule 9.415, Applications for Property Tax Exemptions. Application for Property Tax Abatement Exemption. Amend as necessary for abatement law changes.