| (a) An arbitration under Tax Code, Chapter 41A, commences
with the initiation of a request for binding arbitration to appeal
a specific order of the appraisal review board. The arbitration may
be concluded, either without or after a hearing, by rejection or denial
of the request for binding arbitration, issuance of the Arbitration
Determination and Award (Form 50-704) which may include dismissal
of the case, or withdrawal of the request for arbitration with or
without execution of a settlement agreement between the parties finally
resolving the matter. Arbitration services shall be provided pursuant
to this section.
(b) Unless the property owner or agent and the appraisal
district both agree to arbitration by submission of written documents
only, the arbitration will be conducted in person or by teleconference.
The arbitrator may decide whether to conduct the arbitration in person
or by teleconference unless the property owner or agent indicates
on the Request for Binding Arbitration (Form AP-219) that the arbitration
be conducted in person or by teleconference only. If the arbitration
is conducted in person, the arbitrator and both parties shall appear
in person for the hearing. If the arbitration is conducted in person,
the hearing must be held in the county where the appraisal district
office is located and from which the appraisal review board order
determining protest was issued, unless the parties agree to another
location. The selected location must be in an office-type setting
generally open to the public or to the arbitrator and includes conference
rooms in an office or residential building.
(c) Upon acceptance of an appointment after the 45
calendar-day settlement period, the arbitrator shall contact promptly
through the online arbitration system, by telephone, or electronic
mail the property owner or agent and the appraisal district to notify
the parties of his or her appointment, to propose one or more dates
for the arbitration hearing, and to request alternate hearing dates
from the parties if the date(s) proposed is not acceptable. The arbitrator
should cooperate with the appraisal district and the owner or agent
in scheduling the arbitration hearing.
(d) The arbitrator shall set the hearing date and serve
written notice of the hearing information required by subsection (e)
of this section as follows:
(1) if the arbitrator, property owner, authorized individual
or agent, and appraisal district have all agreed in writing to the
same hearing date after consultation under subsection (c) of this
section, the arbitrator shall serve the notice of hearing with the
agreed date on the property owner or authorized individual or agent
and the appraisal district by uploading it to the online arbitration
system or by electronic mail and providing a paper copy to the property
owner or authorized individual by first-class mail; or
(2) if no agreement is reached after fourteen (14)
or more calendar days of the arbitrator's initial contact attempt
under subsection (c) of this section, the arbitrator shall set the
hearing date, providing a minimum of 21 calendar-days notice before
the hearing, and shall serve the notice on the property owner or authorized
individual or agent and the appraisal district by uploading it to
the online arbitration system or by electronic mail and providing
a paper copy to the property owner or authorized individual through
the U.S. Postal Service or a private third-party service such as FedEx
or United Parcel Service (UPS) so long as proof of delivery is provided.
(e) The arbitrator shall provide or include in the
written notice of hearing served under subsection (d) of this section,
the following information:
(1) the appraisal-district assigned arbitration number;
(2) the date and time of the arbitration hearing;
(3) the physical address of the hearing location if
the hearing is in person;
(4) the date by which the parties must exchange evidence
before the hearing;
(5) the arbitrator's contact information, including
email address, phone number, and mailing address, as well as a fax
number if available;
(6) a copy of the arbitrator's written procedures for
the hearing;
(7) the methods, including through the online arbitration
system, or by electronic mail, U.S. first-class mail, or overnight
or personal delivery, by which the parties are to communicate and
exchange materials; and
(8) any other matter about which the arbitrator wishes
to advise the parties before the hearing.
(f) The arbitrator may continue a hearing for reasonable
cause. The arbitrator shall continue a hearing if both parties agree
to the continuance. The arbitrator may hear and determine the controversy
on the evidence produced at the hearing even if a party fails to appear
so long as the party has received notice of the hearing pursuant to
subsection (d) of this section. Appearance at the hearing waives any
defect in the notice.
(g) Each party at the hearing is entitled to be heard;
present evidence material to the controversy; and cross-examine any
witness. The arbitrator shall ask each witness testifying to swear
or affirm that the testimony he or she is about to give shall be the
truth, the whole truth, and nothing but the truth. The arbitrator's
decision is required to be based solely on the evidence provided at
the hearing.
(h) The arbitrator shall decide to what extent the
arbitration hearing procedures are formal or informal. The arbitrator
shall have available at the hearing a copy of the written procedures
the arbitrator previously delivered to the parties with the hearing
notice. The parties shall be allowed to record audio of the proceedings,
but may record video only with the consent of the arbitrator.
(i) The parties to an arbitration proceeding may represent
themselves or, at their own cost, may be represented by an agent if
the requirements of §9.4253 of this title (relating to Agent
Representation in Arbitration) have been met.
(j) An arbitrator should behave in a professional manner
at all times in rendering arbitration services. An arbitrator should
treat the parties with respect in the course of the binding arbitration
proceeding. The arbitrator shall not engage in conduct that creates
a conflict of interest.
(k) The confidentiality provisions of Tax Code, §22.27,
concerning information provided to an appraisal office, apply to confidential
information provided to arbitrators. The information may not be disclosed
except as provided by law.
(l) The arbitrator shall not communicate with the owner,
the appraisal district, or an agent, nor shall the owner, the appraisal
district, or an agent communicate with the arbitrator, prior to the
arbitration hearing or after the arbitration hearing and before the
arbitration determination and award is issued, concerning specific
evidence, argument, facts, or the merits, regarding the property subject
to arbitration. Such communications may be grounds for the removal
of the arbitrator from the comptroller's registry of arbitrators.
(m) The arbitrator shall dismiss a pending arbitration
action with prejudice, for lack of jurisdiction, under any one of
the following circumstances:
(1) that taxes on the property subject to the appeal
are delinquent because for any prior year, all property taxes due
have not been paid or because for the year at issue, the undisputed
tax amount was not paid before the delinquency date set by the applicable
section of Tax Code, Chapter 31;
(2) that the ARB order(s) appealed did not determine
a protest filed pursuant to Tax Code, §41.41(a)(1) or (2) concerning
either the appraised or market value of the property or unequal appraisal
of the property;
(3) that the appraised or market value of the property
as determined in the ARB order was either more than $5 million or
the property did not qualify as the owner's residence homestead under
Tax Code, §11.13;
(4) that the request for arbitration was filed with
the appraisal district after the deadline established in Tax Code, §41A.03,
which requires submission by not later than the 60th calendar day
after the date the owner receives the ARB order determining the protest;
(5) that the owner filed an appeal with the district
court under Tax Code, Chapter 42, concerning the value of the property
at issue in the pending arbitration; or
(6) that the owner or agent and appraisal district
have executed a written agreement resolving the matter.
(n) When a binding arbitration proceeding is brought
pursuant to Tax Code, §41A.03(a-1) involving two or more contiguous
tracts of land, the arbitrator shall dismiss from consideration in
the proceeding each tract of land and each appraisal review board
order appealed in which it is determined that any of the circumstances
set forth in subsection (m) of this section apply to the particular
tract or ARB order. However, the combined total value of all ARB orders
appealed may exceed the $5 million threshold so long as each individual
tract meets the $5 million limit.
(o) The arbitrator must complete an arbitration proceeding
in a timely manner and will make every effort to complete the proceeding
within 120 days from his or her acceptance of the appointment. Failure
to comply with the timely completion of arbitration proceedings may
constitute good cause for removal of the arbitrator from the comptroller's
registry of arbitrators pursuant to §9.4262(b) of this title
(relating to Removal of Arbitrator from the Registry of Arbitrators).
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