TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 1. CENTRAL ADMINISTRATION

Subchapter A. PRACTICE AND PROCEDURES

1. PRACTICE AND PROCEDURES

34 TAC §1.42

The Comptroller of Public Accounts adopts an amendment to §1.42, concerning definitions, without changes to the proposed text as published in the January 23, 2004, issue of the Texas Register (29 TexReg 603).

Paragraph (17) is added to reinstate the definition of "Tax Division" which was deleted from this rule in 2001.

No comments were received regarding adoption of the amendment.

This amendment is adopted under Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

The section implements Tax Code, §111.009 and §111.015.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 5, 2004.

TRD-200401712

Martin Cherry

Chief Deputy General Counsel

Comptroller of Public Accounts

Effective date: March 25, 2004

Proposal publication date: January 23, 2004

For further information, please call: (512) 475-0387


Chapter 9. PROPERTY TAX ADMINISTRATION

Subchapter C. APPRAISAL DISTRICT ADMINISTRATION

34 TAC §9.415

The Comptroller of Public Accounts adopts an amendment to §9.415, concerning applications for property tax exemptions, without changes to the proposed text as published in the December 19, 2003, issue of the Texas Register (28 TexReg 11233).

This rule is amended to adopt one new model application form, delete one model form and revise several existing model forms in response to legislation enacted in the 78th Legislature, 2003. New language was added to all model form regarding confidentiality of driver's license numbers, personal identification numbers, or social security numbers provided on exemption applications except for disclosure to appraisal office employees who appraise property and as authorized by Tax Code §11.48(b).

The comptroller has corrected typographical, formatting and consistency errors, on the existing model forms in Subsections (c)(2), (c)(4)-(11), (c)(13), (c)(15), (c)(17)-(18), (c)(20)-(21), and (c)(23)-(24) of this section.

The comptroller received and considered comments from a Austin law firm on the proposed model form for the Application for Organizations Constructing or Rehabilitating Low-Income Housing for Property Tax Exemption (Form 50-310).

The law firm submitted a comment that language be added to clarify that an organization may apply for the exemption within 30 days of the acquisition of the property as well as the usual application period. The comptroller added the language to the application.

The law firm submitted a comment that because the property owner and the qualifying non-profit organization may be two different entities, Step 1 in the application should be "bifurcated" to provide for identifying information on both. The firm also submitted a similar comment for Step 2. The comptroller added the language to the application to obtain the information on both entities if necessary.

The law firm submitted a comment that since the exemption application is also used for pre-determination of exemption as required by law, there will be no "active construction" or "physical preparation" at the time the application is filed. Because the organization would not have acquired the property, questions pertaining to active construction or physical preparation should be added. The comptroller added the questions to the application.

Another comment submitted by the law firm was that most multifamily properties have a variety of rents, dependent upon family size, unit size, and tenant income, requiring that rent schedules be attached for that type of housing. The comptroller added the request to the application.

Also, the law firm submitted a comment that the question on expenditure of the requisite amount of money would not apply for a pre-determination, because the applicant will not have spent the requisite amount at the time the application is filed. Even if the application is being used for a final exemption, the applicant may have the rehabilitation in progress as permitted by law for exemption eligibility, but may not have spent the requisite amount. The firm also suggested that a copy of the development budget be required to verify the intent to spend the requisite amount and not just a written statement from a certified public account. The comptroller made the changes as requested.

The last comment requested that a line be added for building designation since the application asks for one completed Schedule B for each building so that the applicant can readily identify the property to which the information applies. The comptroller added the line on Schedule B.

This amendment is adopted under Tax Code, §11.43(f), which requires the comptroller to prescribe the contents and form for each kind of property tax exemption.

The amendment implements Tax Code, §§11.111, 11.13, 11.14, 11.17, 11.18, 11.181, 11.19, 11.20, 11.21, 11.22, 11.23(a)-(k), 11.24, 11.251, 11.27, 11.271, 11.28, 11.29, 11.30, 11.31, 11.32, 11.33, 11.437, 11.182, 11.1825 and 11.1826. It repeals Tax Code §11.142.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 8, 2004.

TRD-200401752

Martin Cherry

Chief Deputy General Counsel

Comptroller of Public Accounts

Effective date: March 28, 2004

Proposal publication date: December 19, 2003

For further information, please call: (512) 475-0387


34 TAC §9.419

The Comptroller of Public Accounts adopts amendment to §9.419, concerning property tax exemption for motor vehicles leased for personal use, without changes to the proposed text as published in the January 2, 2004, issue of the Texas Register (29 TexReg 64).

The amendment is adopted to revise the model exemption application form to implement House Bill 500, 78th Legislature, effective September 1, 2003, which requires the chief appraiser to keep confidential the driver's license number, personal identification number, or social security number provided on the exemption application except for disclosure to appraisal office employees who appraise property and as authorized by Tax Code, §11.48(b).

There were no written comments received. However, in a discussion with an Austin attorney, it was pointed out that the preamble of the proposed rule failed to describe the revisions to Lessor's Rendition or Property Report for Leased Automobiles (Form 50-288) regarding implementation of Senate Bill 340, 78th Legislature, Regular Session, effective January 1, 2004. The comptroller added language to this form explaining the change in Tax Code, §22.23(b), that on written request the chief appraiser must extend the filing deadline to May 15 of the tax year and may extend the deadline another 15 days upon good cause shown in writing by the property owner. The comptroller also added language informing taxpayers of the penalties for failure to file a rendition or property report timely required by Texas law pursuant to Tax Code, §22.01(a) and (b).

This section is adopted under Tax Code, §5.03, which requires the comptroller to adopt rules establishing the minimum standards for the administration and operation of an appraisal district, Tax Code, §5.07, which requires the comptroller to prescribe the contents and form for the administration of the property tax system, Tax Code, §11.43(f), which requires the comptroller to prescribe the contents and form for each kind of property tax exemption and Tax Code, §22.24(a), which requires the use of a rendition form or report that is prescribed or approved by the comptroller.

The section implements Tax Code, Chapter 11, Subchapter B, §11.252.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 5, 2004.

TRD-200401717

Martin Cherry

Chief Deputy General Counsel

Comptroller of Public Accounts

Effective date: March 25, 2004

Proposal publication date: January 2, 2004

For further information, please call: (512) 475-0387