Part 1.
COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 9.
PROPERTY TAX ADMINISTRATION
Subchapter A. PRACTICE AND PROCEDURE
34 TAC §9.103
The Comptroller of Public Accounts proposes new §9.103,
concerning audits of school district taxable property value. This new section
replaces 34 TAC §9.5071, concerning the same subject matter, which is
being repealed in order that it can be adopted under Title 34, Part I, Chapter
9, Subchapter A. The new section is being proposed to make the rules easier
to use and to make the audit process more efficient.
The new section sets forth how the Comptroller of Public Accounts shall
provide procedures for audits and clerical error corrections of school districts'
taxable property values as provided by Government Code, §403.302(h) in
the manner required by law. It establishes filing deadlines for audit requests,
including extensions, and specifies who may submit requests. The new section
requires the use of model forms and affidavits, as well as the submission
of reports and other documents, with audit requests.
James LeBas, Chief Revenue Estimator, has determined that for the first
five-year period the rule will be in effect, there will be no significant
revenue impact on the state or units of local government. The proposed new
rule would have no significant fiscal impact on small businesses.
Mr. LeBas also has determined that the proposed new rule would benefit
the public by making the audit process more efficient and providing additional
information to taxpayers regarding their tax responsibilities.
Comments on the section may be submitted to Buddy Breivogel, Manager, Property
Tax Division, P.O. Box 13528, Austin, Texas 78711-3528.
This new section is proposed under Tax Code, §111.002 and §111.0022,
which provides the comptroller the authority to adopt rules for the administration
and enforcement of the Tax Code and programs or functions assigned to the
comptroller by law.
The new section implements Government Code, §403.302(h).
§9.103.Audits 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 for all of the values in the reports;
(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)-(10) of this section 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 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).
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on January 27, 2003.
TRD-200300654
Martin Cherry
Deputy General Counsel for Taxation
Comptroller of Public Accounts
Earliest possible date of adoption: March 9, 2003
For further information, please call: (512) 475-0387
Subchapter J. PROCEDURES