(a)An owner or agent may initiate an appeal of an
ARB order determining a protest of property value through binding
arbitration, using either the traditional paper-based arbitration
system or the comptroller's online arbitration system, whichever is
available and subject to §9.4255 of this title (relating to Comptroller
Processing of Request, Online Arbitration System, and 45 Calendar-Day
Settlement Period), under the terms and conditions of this section.
(b)The request for binding arbitration, signed pursuant
to §9.4255(e) of this title, a copy of the ARB order being appealed,
and a deposit in the appropriate amount under subsection (h) of this
section, must be filed with the appraisal district or through the
online arbitration system not later than the 45th calendar day after
the date the owner receives the ARB order determining the protest,
as evidenced by the certified mail receipt showing delivery to the
owner. Property owners and agents using the online arbitration system
to make a request for binding arbitration are referred to as filers
and are required to pay the arbitration deposit online at the time
the request is made. As a property owner or agent filing a paper request
or an online filer may be provided any refund of the arbitration deposit,
one of the following identification numbers associated with the payment
of the deposit is required to be provided to process any refund: Social
Security Number (SSN), Texas Identification Number (TIN) issued by
the comptroller's office, Federal Employer Identification Number (FEIN),
or Individual Taxpayer Identification Number (ITIN) issued by the
Internal Revenue Service to individuals not eligible to obtain an
SSN. If the filer is an agent and wishes to submit an FEIN, only FEINs
for sole proprietorships will be accepted. The request, ARB order
being appealed, and deposit shall be submitted to the appraisal district
by hand delivery, by certified first-class mail, or as provided by
Tax Code, §1.08 or §1.085, or 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, or by submission through
use of the comptroller's online arbitration system if available.
(c)The request for arbitration must be completed on
the comptroller's prescribed Request for Binding Arbitration (Form
AP-219) or through the online arbitration system. The ARB shall provide
a copy of Form AP-219 as well as a notice of the owner's right to
binding arbitration when it sends to the owner the ARB's order determining
a protest filed pursuant to Tax Code, §41.41(a)(1) or (2) if
the value of the property determined by the order is $5 million or
less or the property qualifies as the owner's residence homestead
under Tax Code, §11.13.
(d)If an agent has been appointed to represent the
owner, and the agent signs the Request for Binding Arbitration (Form
AP-219) or initiates the request through the online arbitration system
on behalf of the owner, the comptroller shall deny the request unless
the Appointment of Agent(s) for Binding Arbitration (Form 50-791),
manually signed by the owner or authorized individual as required
by §9.4253(c) of this title (relating to Agent Representation
in Arbitration), is properly completed and either scanned and uploaded
to the online arbitration system or submitted with the request, Form
AP-219.
(e)The property owner or agent must submit a copy
of the ARB order being appealed by including it with the request for
binding arbitration or by scanning and uploading it to the online
arbitration system when filing the request.
(f)A request for binding arbitration on property that
meets the following terms and conditions qualifies for binding arbitration
under Tax Code, Chapter 41A:
(1)The request concerns the appraised or market value
of $5 million or less for the property as determined by the ARB order,
or the property qualifies as the owner's residence homestead under
Tax Code, §11.13.
(2)The request does not involve any matter in dispute
other than the determination of the appraised or market value of the
property pursuant to a protest filed under Tax Code, §41.41(a)(1)
for the appraised or market value or §41.41(a)(2) for unequal
appraisal. Issues not subject to binding arbitration include a protest
regarding the owner's motion for correction of an appraisal roll,
a protest concerning the qualification of property for a tax exemption
or special appraisal, or any other issue outside the scope of Tax
Code, §41.41(a)(1) or (2).
(3)A deposit in the correct amount set forth under
subsection (h) of this section, in the form of a check issued and
guaranteed by a banking institution (such as a cashier's or teller's
check) or by a money order, payable to the Comptroller of Public Accounts,
is included with the request. If the online arbitration system is
used to file the request, additional forms of acceptable payment are
by credit card (with entry of the filer's credit card number and security
code) with an additional processing fee or by electronic check (with
entry of the filer's bank account number and bank routing number)
with an additional processing fee. Personal checks, cash, or other
forms of payment shall not be accepted.
(4)Taxes are not delinquent on the property at issue.
For any prior year, all property taxes due have been paid. For the
year at issue, the undisputed tax amount was paid before the delinquency
date set by Tax Code, Chapter 31, as applicable.
(5)No lawsuit has been filed in district court regarding
the property for the tax year at issue.
(6)The request for binding arbitration is timely filed
pursuant to subsection (b) of this section.
(7)The request is made on the comptroller's paper
Request for Binding Arbitration (Form AP-219) or through the online
arbitration system, and is signed by the property owner or by the
owner's agent, if authorized, as required by §9.4255(e) of this
title.
(8)In all cases in which an agent is initiating the
request for binding arbitration, an original or paper copy of the
Appointment of Agent(s) for Binding Arbitration (Form 50-791) that
meets the requirements of §9.4253 of this title must be submitted
with request Form AP-219 or scanned and uploaded to the online arbitration
system when initiating the request for arbitration. The Form 50-791
must demonstrate that the property owner or authorized individual
granted the agent initiating the request for binding arbitration the
authority to do so on the owner's behalf.
(9)A copy of the ARB order being appealed was submitted
with request Form AP-219 or scanned and uploaded to the online arbitration
system when initiating the request for arbitration as required by
subsection (e) of this section.
(g)If the request involves contiguous tracts of land
pursuant to Tax Code, §41A.03(a-1), each tract of land and ARB
order must separately meet the requirements of subsection (f) of this
section, except that a single arbitration deposit in an amount under
subsection (h) of this section that corresponds to the tract with
the highest appraised or market value of all the contiguous tracts
as reflected on the ARB orders being appealed is sufficient. In the
event two or more tracts are not contiguous, the property owner may
select the one property that will be arbitrated; otherwise, the property
with the highest appraised or market value will be selected for arbitration.
For purposes of this section, two or more tracts of land qualify as
contiguous if:
(1)each tract of land physically touches another tract
of land being appealed;
(2)no intervening area, whether natural or manmade,
that is owned by another person, entity, or governmental unit, separates
the tracts;
(3)the property type of each tract being appealed
is identified on the request for binding arbitration as "Land" or
"Agricultural" or any other category of real property that is not
an improvement; and
(4)all of the tracts of land being appealed are of
the same property type, i.e., all are designated "Land" or all are
designated "Agricultural" or all are designated another category of
real property that is not an improvement.
(h)A deposit is required to be submitted with each
request for binding arbitration in the following amounts, as applicable:
(1)$450 if the property qualifies as the owner's residence
homestead under Tax Code, §11.13, and the appraised or market
value is $500,000 or less as determined by the ARB order;
(2)$500 if the property qualifies as the owner's residence
homestead under Tax Code, §11.13, and the appraised or market
value is more than $500,000 as determined by the ARB order;
(3)$500 if the property does not qualify as the owner's
residence homestead under Tax Code, §11.13, and the appraised
or market value is $1 million or less as determined by the ARB order;
(4)$800 if the property does not qualify as the owner's
residence homestead under Tax Code, §11.13, and the appraised
or market value is more than $1 million but not more than $2 million
as determined by the ARB order;
(5)$1,050 if the property does not qualify as the
owner's residence homestead under Tax Code, §11.13, and the appraised
or market value of the property is more than $2 million but not more
than $3 million as determined by the ARB order; and
(6)$1,550 if the property does not qualify as the
owner's residence homestead under Tax Code, §11.13, and the appraised
or market value of the property is more than $3 million but not more
than $5 million as determined by the ARB order.
The agency certifies that legal counsel has reviewed
the adoption and found it to be a valid exercise of
the agency's legal
authority.
Filed with the Office
of the Secretary of State on May 9, 2018
TRD-201802083 Victoria North
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
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