The Comptroller of Public Accounts proposes new §§9.4301 - 9.4313, concerning procedures for protesting preliminary findings of taxable value. The proposed new rules will replace §9.109, which sets out the current procedures for protesting the preliminary findings of taxable value. The proposed new rule(s) were developed, in part, because the comptroller will refer hearings on protests of the preliminary findings to the State Office of Administrative Hearings (SOAH), beginning in 2008. The current rule did not provide for such a referral. New procedures were required to conform comptroller procedures with SOAH procedures and processes and ensure a smooth, efficient referral and a fair hearing. The proposed rule clarifies the language and evidence that must be included in a petition to sufficiently state the grounds for objection to preliminary findings. The current rule is difficult for the public to use because it is lengthy and covers several different, but related, topics. The proposed new rules break the longer rule down into shorter rules that each address a specific topic. The proposed new rules govern the entire protest process. Among the matters that are addressed are; how and when to file a petition, extensions of time, what constitutes good cause for submitting evidence after the deadline, the burden of proof, how and when a protest will be referred to SOAH for hearing, the notice of hearing, issuance of a scheduling order, the exchange of evidence after referral to SOAH, the administrative law judge's powers and duties, how the hearing will be conducted, evidentiary rules, notice of the administrative law judge's proposed decision, exceptions to the proposed decision, and when the decisions become final.

John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rules will be in effect, there will be no significant revenue impact on the state or units of local government.

Mr. Heleman also has determined that for each year of the first five years the rules are in effect, the public benefit anticipated as a result of enforcing the rules will be in detailing and clarifying the procedures required to protest preliminary findings of the taxable value of property. The proposed amendment would have no fiscal impact on small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposed rules may be submitted to Buddy Breivogel, Manager, Property Tax Division, P.O. Box 13528, Austin, Texas 78711-3528.

The new rules are proposed under Government Code, §403.303, which requires the comptroller to adopt procedural rules governing the conduct of the protest hearing.

The proposed new rules implement Government Code, §403.303, which concerns protests of the comptroller's preliminary certification of school district total taxable property value.