The following phrases, words, and terms, when used in this
subchapter shall have the following meanings, unless the context clearly
(1)Agent--An individual, authorized pursuant to Tax
Code, §41A.08(b), and in accordance with §9.4253 of this
title (relating to Agent Representation in Arbitration), to represent
a party in binding arbitration.
(2)Appraisal district--A political subdivision established
in each county responsible for appraising property in the county for
ad valorem tax purposes for each taxing unit that imposes such taxes
on property in the county.
(3)Appraisal review board (ARB)--The board established
in a county's appraisal district pursuant to Tax Code, §6.41,
that issues the order that is the subject of the owner's request for
(4)Appraised value--The value of property determined
under the appraisal methods and procedures of Tax Code, Chapter 23.
(5)Arbitration--A method to appeal an eligible appraisal
review board order a property owner may choose that is governed by
Tax Code, Chapter 41A, and this subchapter. The terms "arbitration"
and "binding arbitration" and "arbitration proceeding" are synonymous
and include the term arbitration "hearing," the specific event at
which evidence is presented to an arbitrator.
(6)Authorized individual--A human being with the legal
authority to act on behalf of the property owner and includes employees
of a property owner or one who holds a valid power of attorney. References
to the property owner include the authorized individual. An individual
appointed as an agent for binding arbitration pursuant to §9.4253
of this title is not included in this definition.
(7)Comptroller or comptroller's office--The Comptroller
of Public Accounts of the State of Texas, the state agency responsible
for the administration of the binding arbitration system, including
the adoption of rules governing the operation of the system pursuant
to Tax Code, Chapter 41A.
(8)Individual--A single human being.
(9)Market value--The price at which a property would
transfer for cash or its equivalent under prevailing market conditions
(A)exposed for sale in the open market with a reasonable
time for the seller to find a purchaser;
(B)both the seller and the purchaser know of all the
uses and purposes to which the property is adapted and for which it
is capable of being used and of the enforceable restrictions on its
(C)both the seller and purchaser seek to maximize
their gains and neither is in a position to take advantage of the
exigencies of the other.
(10)Online arbitration system--A method that is computer
based and partially automated, providing access to the public through
the internet, which the comptroller's office may implement as the
Texas Comptroller Online Arbitration Center, to administer the binding
arbitration system consistent with this subchapter that is in addition
to, or an alternative to, the paper-based method. The terms and conditions
of this subchapter apply with equal force to both methods of administration.
(11)Order--A written determination an appraisal review
board issues pursuant to Tax Code, §41.47, regarding an owner's
protest filed pursuant to Tax Code, §41.41(a)(1), for appraised
or market value, or pursuant to Tax Code, §41.41(a)(2), for unequal
appraisal, regarding a residence homestead or other property of $5
million or less.
(12)Owner or property owner--A person having legal
title to property who has the right to appeal an eligible ARB order
through binding arbitration under Tax Code, Chapter 41A. It does not
include lessees who have the right to protest property valuations
before county appraisal review boards.
(13)Parties--The property owner, authorized individual,
or agent are deemed the filing party or filer and the appraisal district
is deemed the responding party and references to the parties are to
both the filing party and the responding party as a unit.
(14)Person--Includes an individual, corporation, organization,
business trust, estate, trust, partnership, association, and any other
The agency certifies that legal counsel has reviewed
the adoption and found it to be a valid exercise of the agency's
Filed with the Office
of the Secretary of State on May 9, 2018
Chief Counsel, Fiscal and Agency Affairs Legal Services Division
Comptroller of Public Accounts
Effective date: May 29, 2018
Proposal publication date: November 10, 2017
For further information, please call: (512) 475-0387