85R11527 CJC-F     By: Schaefer H.B. No. 3928       A BILL TO BE ENTITLED   AN ACT   relating to the appraisal of land for ad valorem tax purposes as   qualified open-space land following a transfer between family   members.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 23.54, Tax Code, is amended by adding   Subsection (e-1) to read as follows:          (e-1)  Notwithstanding Subsection (e), a person is not   required to file a new application for appraisal of land under this   subchapter because of a change in ownership of the land if the   change in ownership results from a transfer of the land from the   former owner to the person and the person is related to the former   owner within the second degree by affinity or third degree by   consanguinity, as determined under Subchapter B, Chapter 573,   Government Code.          SECTION 2.  Section 25.25, Tax Code, is amended by adding   Subsections (d-1), (d-2), and (d-3) and amending Subsections (e)   and (m) to read as follows:          (d-1)  The appraisal review board, on motion of the chief   appraiser or of the property owner, may direct by written order   changes in the appraisal roll as provided by this subsection. The   board may order the appraised value of the owner's land in either of   the two preceding tax years to be changed to the value at which the   land would have been appraised under Subchapter D, Chapter 23, if:                (1)  the chief appraiser or the property owner   demonstrates by clear and convincing evidence that the land was   appraised under Subchapter D, Chapter 23, for three of the five   preceding tax years;                (2)  the land was determined to be ineligible for   appraisal under Subchapter D, Chapter 23, for the applicable tax   year or years for which the change in appraised value is sought   because the property owner failed to file a new application for   appraisal under that subchapter after a change in ownership of the   land occurred;                (3)  the change in ownership was the result of a   transfer of the land from a person to whom the property owner is   related within the second degree by affinity or third degree by   consanguinity, as determined under Subchapter B, Chapter 573,   Government Code; and                (4)  the land continued to be used in a manner that   otherwise qualified the land for appraisal under Subchapter D,   Chapter 23, during the applicable tax year.          (d-2)  If an appraisal roll is changed under Subsection   (d-1), the property owner must pay to each affected taxing unit a   penalty equal to 10 percent of the difference between the amount of   tax imposed on the land and the amount of tax that would have been   imposed had the land been taxed at market value. Payment of the   penalty is secured by the lien that attaches to the land under   Section 32.01 and is subject to enforced collection under Chapter   33.          (d-3)  An appraisal roll may not be changed under Subsection   (d-1) if:                (1)  the land was the subject of a protest brought by   the property owner under Chapter 41, a hearing on the protest was   conducted in which the property owner offered evidence or argument,   and the appraisal review board made a determination of the protest   on the merits; or                (2)  the appraised value of the land was established as   a result of a written agreement between the property owner or the   owner's agent and the appraisal district.          (e)  If the chief appraiser and the property owner do not   agree to the correction before the 15th day after the date the   motion is filed, a party bringing a motion under Subsection (c),   [or] (d), or (d-1) is entitled on request to a hearing on and a   determination of the motion by the appraisal review board. A party   bringing a motion under this section must describe the error or   errors that the motion is seeking to correct under Subsection (c) or   (d) or state the grounds for the change in appraised value sought   under Subsection (d-1). Not later than 15 days before the date of   the hearing, the board shall deliver written notice of the date,   time, and place of the hearing to the chief appraiser, the property   owner, and the presiding officer of the governing body of each   taxing unit in which the property is located. The chief appraiser,   the property owner, and each taxing unit are entitled to present   evidence and argument at the hearing and to receive written notice   of the board's determination of the motion. A property owner who   files the motion must comply with the payment requirements of   Section 25.26 or forfeit the right to a final determination of the   motion.          (m)  The hearing on a motion under Subsection (c), [or] (d),   or (d-1) shall be conducted in the manner provided by Subchapter C,   Chapter 41.          SECTION 3.  This Act takes effect January 1, 2018.