The Comptroller of Public Accounts adopts an amendment to §9.415, concerning applications for property tax exemptions, with changes to the proposed text as published in the November 30, 2007, issue of the Texas Register (32 TexReg 8698). Tax Code, §11.43 requires the comptroller to prescribe exemption application forms.

The rule was amended to adopt by reference two new exemption application forms and adopt changes to two currently adopted exemption application forms. A new exemption application for goods in transit is adopted with changes to implement House Bill 621, effective January 1, 2008, which created the new exemption. A new exemption application form for vehicles used to produce income and personal non-income producing activities is adopted with changes to implement House Bill 1022, effective January 1, 2008, which created the new exemption. The amended property tax exemption application form for charitable organizations is adopted without changes to the proposed application form. The application was amended to implement provisions of House Bill 1742, effective September 1, 2007, which created charitable organization exemptions for organizations acquiring, holding, and transferring unimproved real property under an urban land bank demonstration program established under Local Government Code, Chapters 379C and 379E on behalf of a land bank. The exemption application form for a residence homestead property tax exemption is adopted with changes to the proposed application form. The application was amended in part to implement House Bill 1460, which changed the documentation requirements for applicants whose residence homestead is a mobile home. The application was also amended to expand information about the qualification of up to 20 acres of land used in the residential occupancy of the home.

Ms. Debbie Cartwright of Bexar Appraisal District suggested changes to the portion of the application instructions that address the qualification requirements, which paraphrased the statute. The agency changed the instructions to more closely reflect the language used in the statute. The commenter suggested that questions about the transportation of the property state clearly that the property may be transported inside or outside the state of Texas. The agency agreed and made the requested changes.

The commenter requested that the proposed application to exempt a vehicle used for the production of income and for personal non-income producing activities permit an applicant to choose to provide the vehicle's license plate number instead of the vehicle's identification number (VIN). The agency made the suggested change. The commenter noted that the instructions could be expanded, but did not make specific suggestions. In response, the instructions were expanded to include the deadline to apply for the exemption for 2007. The commenter requested that the proposed form should be changed to require the taxpayer to provide the age and cost of the vehicle. The agency declined because Tax Code, §11.43 requires the comptroller to prescribe exemption applications and requires the application to provide the information necessary to verify that the property qualifies. Information about the vehicle's cost and age is not required to identify the vehicle or determine its location for property tax purposes, nor is the information needed to determine if the vehicle's use qualifies it for the exemption.

The chief appraiser of Ellis County Appraisal District, Kathy Rodrigue, requested that the homestead exemption application inform applicants of the documentation that must be provided to qualify for the additional exemption for disabled homeowners. The agency agreed and added information describing the documentation that a disabled applicant must provide to qualify for the additional homestead exemption. The Chief Appraiser of Camp County Appraisal District requested that the homestead application be amended to inform a mobile home owner that the title for the home must be in the owner's name. The agency declined to make the change because the application addresses ownership and the law permits a chief appraiser to require adequate documentation before granting an exemption. Tax Code, §11.45 gives the chief appraiser the authority to deny an application that is inadequately documented or disapprove the application and request additional information. If the additional information is not provided in a timely manner, the chief appraiser may deny the application.

The Chief Appraiser of Runnells County, Patsy Dunn, commented in general that all prescribed property tax forms should be formatted differently. The commenter stated that the forms should place the recipient's address where it will show, when folded, through the "window" of a specific sized envelope. The change was not made because appraisal districts may change the format of comptroller forms to permit this type of use.

The amendment is adopted under Tax Code, §11.43, which requires the comptroller to prescribe the contents of an application for each type of exemption.

The amendment implements Tax Code, §11.43, House Bill 621, House Bill 1022, House Bill 1460, and House Bill 1742, adopted in 2007 by the 80th Legislature.