Part 1. COMPTROLLER OF PUBLIC ACCOUNTS
Subchapter A. GENERAL RULES
The Comptroller of Public Accounts adopts an amendment to §3.9, concerning electronic filing of returns and reports; electronic transfer of certain payments by certain taxpayers, without changes to the proposed text as published in the December 21, 2007, issue of the Texas Register (32 TexReg 9570).
This section is being amended to implement Senate Bill 377, 80th Legislature, 2007, to clarify application of Senate Bill 640, 77th Legislature, 2001, to delete reference to the state treasurer's office and to reflect current agency policy. Pursuant to Senate Bill 377, effective June 15, 2007, Tax Code, §111.0625 is amended to allow the comptroller by rule to require taxpayers who paid $10,000 or more during the preceding fiscal year in specific categories of payments to transfer payments in those categories by means of electronic funds transfer if it is reasonably anticipated that they will pay at least that amount during the current fiscal year. Subsection (b)(2) was added to require payments by electronic funds transfer from taxpayers who paid more than $10,000, but less than $100,000, in a single category of payments or taxes in the preceding fiscal year; to list the categories of payments or taxes to which this requirement applies; to state the comptroller's authority to add or remove a category of payments from this requirement; to indicate the comptroller's authority to specify the methods of electronic funds transfers that may be used; and to provide a means for taxpayers to request waiver of the requirement. Pursuant to Senate Bill 377, effective September 1, 2008, Tax Code, §111.0626 is amended to allow the comptroller by rule to require a taxpayer who paid $50,000 or more during the preceding fiscal year to file reports electronically. Subsection (c)(1) is being amended to reflect this statutory change and to indicate that such reports will be due upon proper notification to taxpayers by the comptroller. Subsection (a)(1) is being amended to reflect agency policy that authorization for electronic filing of returns and reports does not require a written agreement, but requires either registration or a comptroller-issued password or PIN. Subsection (d) is being amended to delete reference to the state treasurer's office, whose functions were absorbed by the comptroller in 1996 pursuant to Senate Bill 20, 74th Legislature, 1995. Subsection (g) is being amended to clarify that Tax Code, §111.063, as amended by Senate Bill 640, 77th Legislature, 2001, allows the comptroller to impose a 5.0% penalty for failure to pay by electronic funds transfer, when required, as well as for failure to electronically report under Tax Code, §111.0626.
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 amendment implements Tax Code, §§111.0625, 111.0626, 111.063.
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 February 4, 2008.
TRD-200800679
Martin Cherry
General Counsel
Comptroller of Public Accounts
Effective date: February 24, 2008
Proposal publication date: December 21, 2007
For further information, please call: (512) 475-0387
Subchapter C. APPRAISAL DISTRICT ADMINISTRATION
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.
§9.415.Applications for Property Tax Exemptions.
(a) With the application for exemption for residence homesteads (Form 50-114), the appraisal office shall:
(1) provide a list of taxing units served by the appraisal district, together with all residential homestead exemptions each offers; or
(2) provide the appraisal district's name and appraisal district's phone number on the form, with an instruction that the property owner may call the appraisal district to determine what homestead exemptions are offered by the property owner's taxing units.
(b) If the chief appraiser learns of the death of a person qualified for over-65 or disabled homestead exemptions (Tax Code, §11.13) and it appears that the person's spouse has acquired ownership of the homestead, the chief appraiser should require the surviving spouse to file a new homestead exemption application. Based on the information provided in the new application, the chief appraiser shall determine whether the surviving spouse qualifies for homestead exemptions, including over-65 or disabled exemptions, and whether the surviving spouse may retain the tax ceiling for school tax purposes established on the homestead by the decedent.
(c) The model forms in paragraphs (1) - (27) 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.
(1) Application for Transitional Housing Property Tax Exemption (Form 50-140);
(2) Application for Residence Homesteads (Form 50-114);
(3) Application for Cemetery Exemption (Form 50-120);
(4) Application for Charitable Organizations (Form 50-115);
(5) Application(s) for Charitable Organization Providing Low-Income Housing (Form 50-242 and Form 50-243);
(6) Application for Youth Spiritual, Mental, and Physical Development Organizations (Form 50-118);
(7) Application for Religious Organizations (Form 50-117);
(8) Application for Privately Owned Schools (Form 50-119);
(9) Application for Disabled Veteran's or Survivor's Exemption (Form 50-135);
(10) Application for Miscellaneous Property Tax Exemptions (Form 50-128);
(11) Application for Theater School Property Tax Exemption (Form 50-125);
(12) Application for Historic Sites Property Tax Exemption (Form 50-122);
(13) Application for Goods Exported from Texas (freeport exemption) (Form 50-113);
(14) Application for Solar and Wind-Powered Energy Device Exemption (Form 50-123);
(15) Application for Property Tax Abatement Exemption (Form 50-116);
(16) Application for Stored Offshore Drilling Rig Exemption (Form 50-124);
(17) Application for Dredge Disposal Site Exemption (Form 50-121);
(18) Application for Nonprofit Water Supply or Wastewater Services Corporation (Form 50-214);
(19) Application for Pollution Control Property (Form 50-248);
(20) Application for Cotton Stored in a Warehouse (Form 50-245);
(21) Application(s) for Community Housing Development Organizations Improving Property for Low-Income and Moderate-Income Housing Tax Exemption Previously Exempt in 2003 (Form 50-263 and Form 50-264);
(22) Application for Water Conservation Initiatives Property Tax Exemption (Form 50-270);
(23) Application for Ambulatory Health Care Center Assistance Exemption (Form 50-282);
(24) Application for Raw Cocoa and Green Coffee Held in Harris County (Form 50-297);
(25) Application for Organizations Constructing or Rehabilitating Low-Income Housing for Property Tax Exemption (Form 50-310);
(26) Application For Exemption of Goods-In-Transit (Form 50-758); and
(27) Application For Property Tax Exemption: For Vehicle Used To Produce Income and Personal Non-Income Producing Activities (Form 50-759).
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 February 6, 2008.
TRD-200800723
Martin Cherry
General Counsel
Comptroller of Public Accounts
Effective date: February 26, 2008
Proposal publication date: November 30, 2007
For further information, please call: (512) 475-0387
The Comptroller of Public Accounts adopts an amendment to §9.3044, concerning appointment of agents for property taxes, without changes to the proposed text as published in the December 21, 2007, issue of the Texas Register (32 TexReg 9587). Tax Code, §1.111 governs the designation of a person to act as the owner's agent for any purpose under Tax Code, Title 1, in connection with the property or the property owner.
Subsection (c) is being amended to clarify that the previous amendments to the rule are not intended to conflict with the provisions of Tax Code, §1.111(b). The rule was recently amended to provide that a person who is required to register as a property tax consultant under Occupations Code, Chapter 1152, may not sign form 50-162-1 or form 50-241-1 on behalf of a property owner, and to specify that when the form for designating an agent conflicts with the form for updating the designation of agent, the form for designating an agent prevails. Some appraisal districts have interpreted these provisions in a manner that conflicts with the provisions of Tax Code, §1.111(b). The amendment clarifies that nothing in the rule is intended to conflict with Tax Code, §1.111(b). Subsection (n) is amended to delete reference to the telephone numbers for Telecommunication Device for the Deaf (TDD).
No comments were received regarding adoption of the amendment.
The amendment is adopted under Tax Code, §1.111(h), which requires that the comptroller adopt rules to facilitate compliance with the law.
The amendment implements Tax Code, §1.111(b).
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 February 4, 2008.
TRD-200800680
Martin Cherry
General Counsel
Comptroller of Public Accounts
Effective date: February 24, 2008
Proposal publication date: December 21, 2007
For further information, please call: (512) 475-0387