The Comptroller of Public Accounts proposes new §9.103 concerning audit of total taxable value of property in a school district. The comptroller repeals existing §9.103, concerning audits of school district taxable property value, in order to reorganize the rule and update the rule to be consistent with statutes. The comptroller proposes the new §9.103 to clarify definitions, identify required submissions, clarify deadlines, update references and remove the requirement to adopt audit forms by rule. The comptroller also proposes this new section to better organize the information in the current section.

The comptroller proposes subsection (a) to define relevant terms and phrases, including clarified definitions from the existing §9.103 and new definitions for terms which appear in the existing section but were not defined therein.

Subsection (b) identifies the procedures and required submissions for a request for audit received from a school district. Paragraphs (1) through (5) list the required forms by name and number and paragraph (6) describes the summary or recapitulation of information from the local appraisal roll for the requesting school district.

Subsection (c) identifies the procedures and required submissions for a request for audit received from the Commissioner of Education.

Subsection (d) identifies the deadlines for submitting a request for audit in accordance with Government Code, §403.302(h). This subsection explains the process for certifying a material reduction in taxable value in response to stakeholder concerns received. This subsection clarifies that the superintendent, or other individual authorized by the school district, makes the determination of a material reduction in the total taxable value of property in a school district.

Subsection (e) provides a maximum number of requests for audit, based on logistical and administrative limits, which may be submitted to the division relating to the same school district and the same study year.

Subsection (f) provides the methods of delivery for requests and the required submissions for taxable value audits. Paragraphs (1) through (4) list the methods specifically.

Subsection (g) states specific circumstances for rejection of a request for audit.

Subsection (h) states the consequences of providing incomplete submissions and the ability to resubmit a request for audit. Paragraphs (1) and (2) detail how the comptroller will count incomplete submissions and resubmissions in calculating the number of requests for audit relating to the same school district for the same study year, under subsection (e).

Subsection (i) provides the ability to require additional information, if necessary, to complete an audit. This subsection clarifies the language found in subsection (g) of the current section, which the comptroller has proposed for repeal. Paragraphs (1) and (2) provide timelines for response, reducing the response and extension time period from 30 days in the current subsection (g) to 15 days.

Subsection (j) addresses the conduct of the audit to include the ability of comptroller staff to accept nominal inconsistencies in numerical documentation, reject numerical documentation that leads to unreasonable results and for the examination, inspection or review of information in person. This subsection clarifies and amends subsection (i) of the current section, which the comptroller has proposed for repeal.

Subsection (k) addresses the ability to withdraw a request for audit. This subsection clarifies language found in subsection (k) of the current section, which the comptroller has proposed for repeal.

Subsection (l) addresses the completion of an audit, certification of the findings of the audit by the comptroller, and the ability to protest the findings. This subsection clarifies language found in subsection (l) of the current section, which the comptroller has proposed for repeal.

Subsection (m) addresses the availability of the forms identified in the section on the comptroller's website, or through the Property Tax Assistance Division of the Comptroller of Public Accounts. Subsection (m) also provides that the forms may be revised at the discretion of the comptroller.

Tom Currah, Chief Revenue Estimator, has determined that during the first five years that the proposed new rule is in effect, the rules: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rule’s applicability; and will not positively or adversely affect this state's economy.

Mr. Currah also has determined that the proposed new rule would have no significant fiscal impact on the state government, units of local government, or individuals. The proposed new rule would benefit the public by improving the clarity, organization and implementation of the section. There would be no significant anticipated economic cost to the public. The proposed new rule would have no fiscal impact on small businesses or rural communities.

You may submit comments on the proposal to Korry Castillo, Director, Property Tax Assistance Division, P.O. Box 13528 Austin, Texas 78711 or to the email address: ptad.rulecomments@cpa.texas.gov. The comptroller must receive your comments no later than 30 days from the date of publication of the proposal in the Texas Register.

The comptroller proposes the new section under Government Code, §403.302, which provides the comptroller with the authority to adopt rules governing the conduct of the property value study after consultation with the Comptroller's Property Tax Administration Advisory Board, and under Government Code, §403.303 (Protests), which provides the comptroller with the authority to adopt rules governing the conduct of protest hearings related to the property value study.

The new section implements Government Code, §403.302 (Determination of School District Property Values) and §403.303 (Protests).