2005 Texas Tax Code CHAPTER 1. GENERAL PROVISIONS

TAX CODE

TITLE 1. PROPERTY TAX CODE

SUBTITLE A. GENERAL PROVISIONS

CHAPTER 1. GENERAL PROVISIONS


	§ 1.01. SHORT TITLE.  This title may be cited as the 
Property Tax Code.   

Acts 1979, 66th Leg., p. 2218, ch. 841, § 1, eff. Jan. 1, 1982.            


	§ 1.02. APPLICABILITY OF TITLE.  This title applies to a 
taxing unit that is created by or pursuant to any general, special, 
or local law enacted before or after the enactment of this title 
unless a law enacted after enactment of this title by or pursuant to 
which the taxing unit is created expressly provides that this title 
does not apply.  This title supersedes any provision of a municipal 
charter or ordinance relating to property taxation.  Nothing in 
this title invalidates or restricts the right of voters to utilize 
municipal-level initiative and referendum to set a tax rate, level 
of spending, or limitation on tax increase for that municipality.

Acts 1979, 66th Leg., p. 2218, ch. 841, § 1, eff. Jan. 1, 1982.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 117, ch. 13, § 1, 
eff. Jan. 1, 1982.


	§ 1.03. CONSTRUCTION OF TITLE.  The Code Construction Act 
(Chapter 311, Government Code) applies to the construction of each 
provision of this title except as otherwise expressly provided by 
this title.

Acts 1979, 66th Leg., p. 2218, ch. 841, § 1, eff. Jan. 1, 1982.  
Amended by Acts 1985, 69th Leg., ch. 479, § 72, eff. Sept. 1, 
1985.


	§ 1.04. DEFINITIONS.  In this title:                                        
		(1)  "Property" means any matter or thing capable of 
private ownership.     
		(2)  "Real property" means:                                                   
			(A)  land;                                                                   
			(B)  an improvement;                                                         
			(C)  a mine or quarry;                                                       
			(D)  a mineral in place;                                                     
			(E)  standing timber;  or                                                    
			(F)  an estate or interest, other than a mortgage 
or deed of trust creating a lien on property or an interest securing 
payment or performance of an obligation, in a property enumerated 
in Paragraphs (A) through (E) of this subdivision.
		(3)  "Improvement" means:                                                     
			(A)  a building, structure, fixture, or fence 
erected on or affixed to land;
			(B)  a transportable structure that is designed to 
be occupied for residential or business purposes, whether or not it 
is affixed to land, if the owner of the structure owns the land on 
which it is located, unless the structure is unoccupied and held for 
sale or normally is located at a particular place only temporarily;  
or
			(C)  for purposes of an entity created under 
Section 52, Article III, or Section 59, Article XVI, Texas 
Constitution, the:
				(i)  subdivision of land by plat;                                           
				(ii)  installation of water, sewer, or 
drainage lines;  or                
				(iii)  paving of undeveloped land.                                          
		(3-a)  Notwithstanding anything contained herein to 
the contrary, a manufactured home is an improvement to real 
property only if the owner of the home has elected to treat the 
manufactured home as real property pursuant to Section 1201.2055, 
Occupations Code, and a certified copy of the statement of 
ownership and location has been filed with the real property 
records of the county in which the home is located as provided in 
Section 1201.2055(d), Occupations Code.
		(4)  "Personal property" means property that is not 
real property.          
		(5)  "Tangible personal property" means personal 
property that can be seen, weighed, measured, felt, or otherwise 
perceived by the senses, but does not include a document or other 
perceptible object that constitutes evidence of a valuable 
interest, claim, or right and has negligible or no intrinsic value.
		(6)  "Intangible personal property" means a claim, 
interest (other than an interest in tangible property), right, or 
other thing that has value but cannot be seen, felt, weighed, 
measured, or otherwise perceived by the senses, although its 
existence may be evidenced by a document.  It includes a stock, 
bond, note or account receivable, franchise, license or permit, 
demand or time deposit, certificate of deposit, share account, 
share certificate account, share deposit account, insurance 
policy, annuity, pension, cause of action, contract, and goodwill.
		(7)  "Market value" means the price at which a property 
would transfer for cash or its equivalent under prevailing market 
conditions if:
			(A)  exposed for sale in the open market with a 
reasonable time for the seller to find a purchaser;
			(B)  both the seller and the purchaser know of all 
the uses and purposes to which the property is adapted and for which 
it is capable of being used and of the enforceable restrictions on 
its use;  and
			(C)  both the seller and purchaser seek to 
maximize their gains and neither is in a position to take advantage 
of the exigencies of the other.
		(8)  "Appraised value" means the value determined as 
provided by Chapter 23 of this code.
		(9)  "Assessed value" means, for the purposes of 
assessment of property for taxation, the amount determined by 
multiplying the appraised value by the applicable assessment ratio, 
but, for the purposes of determining the debt limitation imposed by 
Article III, Section 52, of the Texas Constitution, shall mean the 
market value of the property recorded by the chief appraiser.
		(10)  "Taxable value" means the amount determined by 
deducting from assessed value the amount of any applicable partial 
exemption.
		(11)  "Partial exemption" means an exemption of part of 
the value of taxable property.
		(12)  "Taxing unit" means a county, an incorporated 
city or town (including a home-rule city), a school district, a 
special district or authority (including a junior college district, 
a hospital district, a district created by or pursuant to the Water 
Code, a mosquito control district, a fire prevention district, or a 
noxious weed control district), or any other political unit of this 
state, whether created by or pursuant to the constitution or a 
local, special, or general law, that is authorized to impose and is 
imposing ad valorem taxes on property even if the governing body of 
another political unit determines the tax rate for the unit or 
otherwise governs its affairs.
		(13)  "Tax year" means the calendar year.                                     
		(14)  "Assessor" means the officer or employee 
responsible for assessing property taxes as provided by Chapter 26 
of this code for a taxing unit by whatever title he is designated.
		(15)  "Collector" means the officer or employee 
responsible for collecting property taxes for a taxing unit by 
whatever title he is designated.
		(16)  "Possessory interest" means an interest that 
exists as a result of possession or exclusive use or a right to 
possession or exclusive use of a property and that is unaccompanied 
by ownership of a fee simple or life estate in the property.  
However, "possessory interest" does not include an interest, 
whether of limited or indeterminate duration, that involves a right 
to exhaust a portion of a real property.
		(17)  "Conservation and reclamation district" means a 
district created under Article III, Section 52, or Article XVI, 
Section 59, of the Texas Constitution, or under a statute enacted 
under Article III, Section 52, or Article XVI, Section 59, of the 
Texas Constitution.
		(18)  "Clerical error" means an error:                                        
			(A)  that is or results from a mistake or failure 
in writing, copying, transcribing, entering or retrieving computer 
data, computing, or calculating;  or
			(B)  that prevents an appraisal roll or a tax roll 
from accurately reflecting a finding or determination made by the 
chief appraiser, the appraisal review board, or the assessor;  
however, "clerical error" does not include an error that is or 
results from a mistake in judgment or reasoning in the making of the 
finding or determination.
	(19)  "Comptroller" means the Comptroller of Public Accounts 
of the State of Texas.

Acts 1979, 66th Leg., p. 2218, ch. 841, § 1, eff. Jan. 1, 1982.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 118, ch. 13, § 2, 
eff. Jan. 1, 1982;  Acts 1987, 70th Leg., ch. 984, § 25, eff. June 
19, 1987;  Acts 1989, 71st Leg., ch. 1123, § 1, eff. Jan. 1, 1990;  
Acts 1991, 72nd Leg., ch. 20, § 13, eff. Aug. 26, 1991;  Acts 
1991, 72nd Leg., ch. 393, § 1, eff. June 10, 1991;  Acts 1991, 
72nd Leg., ch. 843, § 6, eff. Sept. 1, 1991;  Acts 1991, 72nd 
Leg., 1st C.S., ch. 14, § 8.01(22), eff. Nov. 12, 1991;  Acts 
1993, 73rd Leg., ch. 347, § 4.04, eff. May 31, 1993;  Acts 1997, 
75th Leg., ch. 1070, § 52, eff. Sept. 1, 1997;  Acts 2005, 79th 
Leg., ch. 1284, § 30, eff. June 18, 2005.


	§ 1.05. CITY FISCAL YEAR.  The governing body of a 
home-rule city may establish by ordinance a fiscal year different 
from that fixed in its charter if a different fiscal year is 
desirable to adapt budgeting and other fiscal activities to the tax 
cycle required by this title.

Acts 1979, 66th Leg., p. 2220, ch. 841, § 1, eff. Jan. 1, 1982.            


	§ 1.06. EFFECT OF WEEKEND OR HOLIDAY.  If the last day for 
the performance of an act is a Saturday, Sunday, or legal state or 
national holiday, the act is timely if performed on the next regular 
business day.

Acts 1979, 66th Leg., p. 2220, ch. 841, § 1, eff. Jan. 1, 1982.            


	§ 1.07. DELIVERY OF NOTICE.  (a) An official or agency 
required by this title to deliver a notice to a property owner may 
deliver the notice by regular first-class mail, with postage 
prepaid, unless this section or another provision of this title 
requires a different method of delivery or the parties agree that 
the notice must be delivered as provided by Section 1.085.
	(b)  The official or agency shall address the notice to the 
property owner, the person designated under Section 1.111(f) to 
receive the notice for the property owner, if that section applies, 
or, if appropriate, the property owner's agent at the agent's 
address according to the most recent record in the possession of the 
official or agency.  However, if a property owner files a written 
request with the appraisal district that notices be sent to a 
particular address, the official or agency shall send the notice to 
the address stated in the request.
	(c)  A notice permitted to be delivered by first-class mail 
by this section is presumed delivered when it is deposited in the 
mail.  This presumption is rebuttable when evidence of failure to 
receive notice is provided.
	(d)  A notice required by Section 11.45(d), 23.44(d), 
23.57(d), 23.79(d), or 23.85(d) must be sent by certified mail.

Acts 1979, 66th Leg., p. 2220, ch. 841, § 1, eff. Jan. 1, 1982.  
Amended by Acts 1983, 68th Leg., p. 4947, ch. 885, § 1, eff. Jan. 
1, 1984;  Acts 1989, 71st Leg., ch. 796, § 1, eff. Sept. 1, 1989;  
Acts 1997, 75th Leg., ch. 1039, § 1, eff. Jan. 1, 1998;  Acts 
1999, 76th Leg., ch. 441, § 1, eff. Sept. 1, 1999;  Acts 2005, 
79th Leg., ch. 1126, § 1, eff. Sept. 1, 2005.


	§ 1.08. TIMELINESS OF ACTION BY MAIL.  When a property 
owner is required by this title to make a payment or to file or 
deliver a report, application, statement, or other document or 
paper by a specified due date, his action is timely if:
		(1)  it is sent by regular first-class mail, properly 
addressed with postage prepaid;  and
		(2)  it bears a post office cancellation mark of a date 
earlier than or on the specified due date and within the specified 
period or the property owner furnishes satisfactory proof that it 
was deposited in the mail on or before the specified due date and 
within the specified period.

Acts 1979, 66th Leg., p. 2220, ch. 841, § 1, eff. Jan. 1, 1982. 
Amended by Acts 2005, 79th Leg., ch. 412, §2, eff. Sept. 1, 2005.


	§ 1.085. COMMUNICATION IN ELECTRONIC FORMAT.  (a) Except 
as provided by Section 1.07(d), any notice, rendition, application 
form, or completed application that is required or permitted by 
this title to be delivered between a chief appraiser and a property 
owner or between a chief appraiser and a person designated by a 
property owner under Section 1.111(f) may be delivered in an 
electronic format if the chief appraiser and the property owner 
agree under this section.
	(b)  An agreement between a chief appraiser and a property 
owner must:       
		(1)  be in writing;                                                           
		(2)  be signed by the chief appraiser and the property 
owner;  and          
		(3)  specify:                                                                 
			(A)  the medium of communication;                                            
			(B)  the type of communication covered;                                      
			(C)  the means for protecting the security of a 
communication;             
			(D)  the means for confirming delivery of a 
communication;  and            
			(E)  the electronic mail address of the property 
owner or person designated to represent the property owner under 
Section 1.111, as applicable.
	(c)  An agreement may address other matters.                                   
	(d)  Unless otherwise provided by an agreement, the delivery 
of any information in an electronic format is effective on receipt 
by a chief appraiser, property owner, or person designated by a 
property owner.
	(e)  The comptroller by rule:                                                  
		(1)  shall prescribe acceptable media, formats, 
content, and methods for the electronic transmission of notices 
required by Section 25.19;  and
		(2)  may prescribe acceptable media, formats, content, 
and methods for the electronic transmission of other notices, 
renditions, and applications.
	(f)  In an agreement entered into under this section, a chief 
appraiser may select the medium, format, content, and method to be 
used by the appraisal district from among those prescribed by the 
comptroller under Subsection (e).
	(g)  Notwithstanding Subsection (a), if a property owner 
whose property is included in 25 or more accounts in the appraisal 
records of the appraisal district requests the chief appraiser to 
enter into an agreement for the delivery of the notice required by 
Section 25.19 in an electronic format, the chief appraiser must 
enter into an agreement under this section for that purpose and 
shall deliver the notice in accordance with an electronic medium, 
format, content, and method prescribed by the comptroller under 
Subsection (e).

Added by Acts 1999, 76th Leg., ch. 441, § 2, eff. Sept. 1, 1999.  
Amended by Acts 2003, 78th Leg., ch. 984, § 1;  Acts 2003, 78th 
Leg., ch. 1173, § 1, eff. Jan. 1, 2005;  Acts 2005, 79th Leg., ch. 
412, § 3, 18(1), eff. Sept. 1, 2005.


	§ 1.09. AVAILABILITY OF FORMS.  When a property owner is 
required by this title to use a form, the office or agency with 
which the form is filed shall make printed and electronic versions 
of the forms readily and timely available and shall furnish a 
property owner a form without charge.

Added by Acts 1979, 66th Leg., p. 2220, ch. 841, § 1, eff. Jan. 1, 
1982.  Amended by Acts 2003, 78th Leg., ch. 984, § 2;  Acts 2003, 
78th Leg., ch. 1173, § 2, eff. Jan. 1, 2005.


	§ 1.10. ROLLS IN ELECTRONIC DATA-PROCESSING RECORDS.  The 
appraisal roll for an appraisal district and the appraisal roll or 
the tax roll for the unit may be retained in electronic 
data-processing equipment.  However, a physical document for each 
must be prepared and made readily available to the public.

Acts 1979, 66th Leg., p. 2220, ch. 841, § 1, eff. Jan. 1, 1982.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 118, ch. 13, § 3, 
eff. Jan. 1, 1982.


	§ 1.11. COMMUNICATIONS TO FIDUCIARY.  (a) On the written 
request of a property owner, an appraisal office or an assessor or 
collector shall deliver all notices, tax bills, and other 
communications relating to the owner's property or taxes to the 
owner's fiduciary.
	(b)  To be effective, a request made under this section must 
be filed with the appraisal district.  A request remains in effect 
until revoked by a written revocation filed with the appraisal 
district by the owner.

Added by Acts 1981, 67th Leg., 1st C.S., p. 118, ch. 13, § 4, eff. 
Jan. 1, 1982.  Amended by Acts 2005, 79th Leg., ch. 1126, § 2, 
eff. Sept. 1, 2005.


	§ 1.111. REPRESENTATION OF PROPERTY OWNER.  (a) A 
property owner may designate a lessee or other person to act as the 
agent of the owner for any purpose under this title in connection 
with the property or the property owner.
	(b)  The designation of an agent must be made by written 
authorization signed by the owner, a property manager authorized to 
designate agents for the owner, or other person authorized to act on 
behalf of the owner, and must clearly indicate that the person is 
authorized to act on behalf of the property owner in property tax 
matters relating to the property or the property owner.  The 
designation may authorize the agent to represent the owner in all 
property tax matters or in specific property tax matters as 
identified in the designation.
	(c)  The designation of an agent under this section remains 
in effect until revoked in a written revocation filed with the 
appraisal district by the property owner.  A designation may be made 
to expire according to its own terms but is still subject to prior 
revocation by the property owner.
	(d)  A property owner may not designate more than one agent 
to represent the property owner in connection with an item of 
property.  The designation of an agent in connection with an item of 
property revokes any previous designation of an agent in connection 
with that item of property.
	(e)  An agreement between a property owner or the owner's 
agent and the chief appraiser is final if the agreement relates to a 
matter:
		(1)  which may be protested to the appraisal review 
board or on which a protest has been filed but not determined by the 
board;  or
		(2)  which may be corrected under Section 25.25 or on 
which a motion for correction under that section has been filed but 
not determined by the board.
	(f)  A property owner in writing filed with the appraisal 
district may direct the appraisal district, appraisal review board, 
and each taxing unit participating in the appraisal district to 
deliver all notices, tax bills, orders, and other communications 
relating to one or more specified items of the owner's property to a 
specified person instead of to the property owner.  The instrument 
must clearly identify the person by name and give the person's 
address to which all notices, tax bills, orders, and other 
communications are to be delivered.  The property owner may but is 
not required to designate the person's agent for other tax matters 
designated under Subsection (a) as the person to receive all 
notices, tax bills, orders, and other communications.  The 
designation of an agent for other tax matters under Subsection (a) 
may also provide that the agent is the person to whom notices, tax 
bills, orders, and other communications are to be delivered under 
this subsection.
	(g)  An appraisal district, appraisal review board, or 
taxing unit may not require a person to designate an agent to 
represent the person in a property tax matter other than as provided 
by this section.
	(h)  The comptroller shall prescribe forms and adopt rules to 
facilitate compliance with this section.  The comptroller shall 
include on any form used for designation of an agent for a 
single-family residential property in which the property owner 
resides the following statement in boldfaced type:

"In some cases, you may want to contact your appraisal district or 
other local taxing units for free information and/or forms 
concerning your case before designating an agent."
	(i)  An appraisal review board shall accept and consider a 
motion or protest filed by an agent of a property owner if an agency 
authorization is filed at or before the hearing on the motion or 
protest.

Added by Acts 1987, 70th Leg., ch. 435, § 1, eff. Jan. 1, 1988.  
Amended by Acts 1989, 71st Leg., ch. 796, § 2, eff. Sept. 1, 
1989;  Acts 1991, 72nd Leg., 2nd C.S., ch. 6, § 1, eff. Sept. 1, 
1991;  Acts 1993, 73rd Leg., ch. 981, § 1, eff. Jan. 1, 1994;  
Acts 1993, 73rd Leg., ch. 1031, § 1, eff. Sept. 1, 1993;  Acts 
1997, 75th Leg., ch. 349, § 1, eff. Sept. 1, 1997.


	§ 1.12. MEDIAN LEVEL OF APPRAISAL.  (a) For purposes of 
this title, the median level of appraisal is the median appraisal 
ratio of a reasonable and representative sample of properties in an 
appraisal district or, for purposes of Section 41.43 or 42.26, of a 
sample of properties specified by that section.
	(b)  An appraisal ratio is the ratio of a property's 
appraised value as determined by the appraisal office or appraisal 
review board, as applicable, to:
		(1)  the appraised value of the property according to 
law if the property qualifies for appraisal for tax purposes 
according to a standard other than market value;  or
		(2)  the market value of the property if Subdivision 
(1) of this subsection does not apply.
	(c)  The median appraisal ratio for a sample of properties 
is, in a numerically ordered list of the appraisal ratios for the 
properties:
		(1)  if the sample contains an odd number of 
properties, the appraisal ratio above and below which there is an 
equal number of appraisal ratios in the list;  or
		(2)  if the sample contains an even number of 
properties, the average of the two consecutive appraisal ratios 
above and below which there is an equal number of appraisal ratios 
in the list.
	(d)  For purposes of this section, the appraisal ratio of a 
homestead to which Section 23.23 applies is the ratio of the 
property's market value as determined by the appraisal district or 
appraisal review board, as applicable, to the market value of the 
property according to law.  The appraisal ratio is not calculated 
according to the appraised value of the property as limited by 
Section 23.23.

Added by Acts 1981, 67th Leg., 1st C.S., p. 118, ch. 13, § 5, eff. 
Jan. 1, 1982.  Amended by Acts 1983, 68th Leg., p. 4924, ch. 877, 
§ 1, eff. Jan. 1, 1984;  Acts 1985, 69th Leg., ch. 823, § 1, 
eff. Jan. 1, 1986;  Acts 1989, 71st Leg., ch. 796, § 3, eff. June 
15, 1989;  Acts 1997, 75th Leg., ch. 1039, § 46, eff. Jan. 1, 
1998.


	§ 1.15. APPRAISERS FOR TAXING UNITS PROHIBITED.  A taxing 
unit may not employ any person for the purpose of appraising 
property for taxation purposes except to the extent necessary to 
perform a contract under Section 6.05(b) of this code.

Added by Acts 1983, 68th Leg., p. 5463, ch. 1028, § 1, eff. Oct. 
1, 1985.  Renumbered from § 1.13 by Acts 1987, 70th Leg., ch. 
167, § 5.01(a)(50) eff. Sept. 1, 1987.