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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 9PROPERTY TAX ADMINISTRATION
SUBCHAPTER APRACTICE AND PROCEDURE
RULE §9.103Audits of School District Taxable Property Values

(a) Definitions.

  (1) Taxable value audit means an investigation or review made to determine if the certified property value study findings of a school district's taxable property value under Government Code, Chapter 403, should be changed to correct clerical errors in the comptroller's records, and to reflect changes in local tax rolls that occurred after the school district's most recent property value report to the comptroller for the property value study year that is the subject of the audit request.

  (2) Recapitulation means one or more computer-generated summaries of appraisal roll information that:

    (A) are designed for purposes other than this audit;

    (B) are produced by an appraisal district or a taxing unit that collects for the school district; and

    (C) on the effective date show certified values for each type of exemption, other value losses, each property category, and each land class matching the values shown in the amended School District Report of Property Value and Report on Value Lost Because of the School Tax Limitation on Homesteads of the Elderly submitted with the audit request.

  (3) Property value study year means the year for which the comptroller certified the school district's final taxable value that is the subject of the taxable value audit.

  (4) Effective date means the single date for which all values and other reported information subject to the taxable value audit are correct.

(b) Taxable value audit requestors.

  (1) A school district may request an audit of its taxable value finding determined by the comptroller and certified to the commissioner of education under Government Code §403.302(g); or

  (2) the commissioner of education may request an audit of any school district's taxable value finding determined by the comptroller and certified to the commissioner of education under Government Code §403.302(g).

(c) Taxable value audit request. A request for a taxable value audit by a school district must be made to the Manager of the Property Tax Division in writing on the Request for School District Taxable Value Audit (form 50-302). A request for a taxable value audit from the commissioner of education must be made to the Manager of Property Tax Division in any written form and signed by the commissioner. At the time of submission, a school district request must include all documentation necessary for staff to complete the audit. A school district for which an audit is requested by the commissioner of education must submit all documentation that would be required in a school district request within 30 days of notification by the Property Tax Division that a request for audit was made. A complete request must:

  (1) name the school district for which the taxable value audit is requested;

  (2) be signed by the school superintendent;

  (3) name one agent who may be the school superintendent or any person designated by the superintendent or the commissioner of education, as appropriate, who will be the primary point of contact for all correspondence and questions regarding the audit;

  (4) state the property value study year in question;

  (5) state one effective date;

  (6) include an amended School District Report of Property Value, signed by the authorized official or agent, that correctly incorporates each applicable correction, accompanied by a statement summarizing the reasons for the corrections;

  (7) include an amended Report on Value Lost Because of the School Tax Limitation on Homesteads of the Elderly, signed by the chief appraiser or school district agent, that correctly incorporates each applicable correction, accompanied by a statement summarizing the reasons for the corrections;

  (8) include for appraisal districts that store appraisal roll information electronically, a computer-generated recapitulation;

  (9) include for appraisal districts in which a recapitulation is not available, an appraisal review board change order, correction, or supplement for each property changed since the date of the last School District Report of Property Value submitted to the comptroller, accompanied by the certification from the chief appraiser that communicated each change to the taxing unit, along with a copy of the tax record showing the original and amended value for each property changed for the tax year subject to the audit; and

  (10) include a Chief Appraiser Affidavit of Value for School District Audit model form 50- 303 (with the exception of audit requests filed after June 1 of the third year following the property value study year that pertain solely to final determinations in court cases).

(d) Number of requests and request deadline. Up to three separate taxable value audit requests pertaining to the same property value study year may be submitted at any time after the comptroller certifies final values to the commissioner of education, but must be filed before July 1 of the third year following certification. Requests will be timely if received by the comptroller's property tax division manager:

  (1) by personal delivery on or before June 30;

  (2) by United States mail if sent by regular first-class mail, properly addressed with postage prepaid and bearing a post office cancellation mark on or before June 30; or

  (3) by express mail corporation in a properly addressed envelope or wrapper, showing a legible date to prove delivery to the express mail corporation on or before June 30.

(e) Deadline extension. The taxable value audit request deadline provided in subsection (d) of this section may be extended only to reflect:

  (1) final determinations in court cases that occurred after June 1 of the third year following the property value study year for which the school district provides the final judgments with the audit request; or

  (2) appraisal review board actions, and actions taken under Property Tax Code §25.25, that:

    (A) occurred after June 1 of the third year following the property value study year;

    (B) are submitted to the comptroller's property tax division by July 1 of the year following the property value study year in which the actions occurred as part of an audit request that meets all the requirements of this section; and

    (C) total more than $20 million or 2.0% of the most recent taxable value in the school district as determined under Government Code §403.302 or §403.303, for the property value study year in question, whichever is least.

(f) Incomplete requests. A request that omits any item listed in subsection (c) of this section is incomplete. If items described in subsection (c)(7)-(9) of this section, or acreage breakdowns on the School District Report of Property Value, are unavailable to the district, are not material to the corrections requested, and do not result in a materially incorrect taxable value for the district, staff may make corrections based on items in subsection (c) of this section that were provided by the district and may not make corrections for items not provided by the district.

(g) Additional information. Comptroller staff may request additional information from the school district, its appraisal district, or any other source as needed to complete the taxable value audit. If the school district, or its appraisal district does not provide the additional information within 30 days of the staff request, comptroller staff may deny any adjustments related to the additional information without notice. The 30-day period may be extended for an additional 30 days if the school district cannot obtain the information within the original 30 days for reasons outside the school district's control.

(h) Prior proceeding. In conducting a taxable value audit, comptroller staff shall consider whether the matter presented in the taxable value audit request has been finally resolved in a prior audit or audit request, property value study protest, or judicial proceeding. If so, the staff may base its taxable value audit finding on the result of that prior audit or audit request, property value study protest, or judicial proceeding.

(i) Audit conduct. The comptroller's primary goals in conducting the taxable value audit are to update the property value study and make the study more accurate. Consequently, comptroller staff may accept numerical documentation with nominal internal inconsistencies, reject numerical documentation that leads to unreasonable results, and otherwise exercise sound judgment in arriving at the most accurate total taxable value in the school district. Comptroller staff may conduct the taxable value audit by reviewing the required documentation submitted with the audit request, or may include a review of the relevant records by personal inspection at the tax office, appraisal office, or any other public office.

(j) Amending an audit request. An audit request may be amended at any time prior to the date of the issuance of the preliminary finding but may not be amended to change the effective date of the audit. A change in an effective date must be submitted as part of a new audit request.

(k) Withdrawal of audit request. An audit request may be withdrawn at any time before the comptroller issues a preliminary audit finding if the comptroller's property tax division manager determines that the withdrawal will not cause a significant adverse effect on the accuracy of the property value study. After the preliminary audit finding is issued, the audit request may be withdrawn only with the approval of the comptroller's hearing examiner.

(l) Taxable value certification and protest. After considering all the relevant information submitted by the school district and from other reliable sources, comptroller staff shall recalculate the school district's total taxable value and certify a preliminary taxable value audit finding to the commissioner of education. The total taxable value certified in the preliminary taxable value audit finding may be greater than, less than, or the same as the most recent total taxable value certified to the commissioner of education under Government Code §403.302 or §403.303, for the property value study year subject to the taxable value audit, but shall not affect the validity presumption used in that certification. A school district may protest the preliminary taxable value audit finding by following the procedures prescribed in §9.109.

(m) Audit request acceptance. The comptroller may not accept a taxable value audit request, or any part of an audit request, if the audit request:

  (1) does not meet the requirements of this section;

  (2) subject to subsection (f) of this section lacks any material item required in subsection (c) of this section or required by the model forms;

  (3) raises an issue previously determined in a protest of preliminary findings of value;

  (4) asks for corrections that duplicate corrections requested in a previous audit for which the comptroller has issued a final finding; or

  (5) involves a property value study year for which the relevant comptroller records, computer programs, or property value study procedures do not exist or cannot accurately be replicated.

(n) Audit request resubmission. A taxable value audit request that was not accepted may be brought into compliance and resubmitted before the July 1 deadline of the third year following the certification of the property value study year in question.

(o) Effective date. This section applies to all taxable value audit requests submitted after June 30, 2003.

(p) The model forms in paragraph (1) and (2) of this subsection are adopted by reference by the Comptroller of Public Accounts. Copies of these forms are available for inspection at the office of the Texas Register or can be obtained from the Comptroller of Public Accounts, Property Tax Division, P.O. Box 13528, Austin, Texas 78711-3528. Copies may also be requested by calling our toll-free number 1-800-252-9121. In Austin, call (512) 305-9999. From a Telecommunications Device for the Deaf (TDD), call 1-800-248-4099, toll free. In Austin, the local TDD number is (512) 463-4621.

  (1) Request for School District Taxable Value Audit (Form 50-302); and

  (2) Chief Appraiser Affidavit of Value for School District Audit (Form 50-303).


Source Note: The provisions of this §9.103 adopted to be effective May 7, 2003, 28 TexReg 3735

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