HBA-CBW H.B. 1731 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1731 By: King, Tracy Ways & Means 3/22/2001 Introduced BACKGROUND AND PURPOSE Under current law, a property owner must file an application to receive certain property tax exemptions, such as a freeport exemption, a homestead exemption, and a religious organization exemption. Applications for such exemptions are due before May 1. If an application for a homestead exemption, a religious organization exemption, or another exemption is filed late, the chief appraiser may still grant the exemption for that year. However, a freeport exemption may not be granted under the same conditions. House Bill 1731 requires the chief appraiser to accept and approve or deny a late application for a freeport exemption, extends the deadline for an application for freeport exemption, and imposes a penalty for filing an application late. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1731 amends the Tax Code to require the chief appraiser to accept and approve or deny an application for an exemption for freeport goods after the deadline for filling it has passed if it is filed before the date the appraisal review board approves the appraisal records. The bill extends the deadline for a property owner to deliver information requested by the chief appraiser for a freeport exemption before the 31st day after the date the notice is delivered to the property owner or before the date the appraisal review board approves the appraisal records, whichever is later. The bill provides that if the property owner delivers the requested information before the appraisal review board approves the appraisal records but after the 31st day after the date the notice is delivered and the exemption is allowed or the application is approved the property owner is liable to each taxing unit for a specified penalty. The bill requires the chief appraiser to make an entry on the appraisal records of the property owner's liability and deliver a written notice of imposition of the penalty to the property owner. The bill requires the tax assessor to add the penalty to the property owner's tax bill and collect the penalty at the time and in the manner that taxes are collected. The bill provides that the penalty constitutes a lien against the inventory or property against which the penalty is imposed, as if it were a tax, and accrues penalty and interest in the same manner as a delinquent tax. EFFECTIVE DATE September 1, 2001.