HBA-CBW S.B. 862 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 862
By: Staples
Ways & Means
4/24/2001
Engrossed



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. Senate Bill 862 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

Senate Bill 862 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.