The 87th Texas Legislative Session
Tax Code Changes You Can Use Today
By Lee D. Winston | July 19, 2022
The Texas Legislature recently made numerous changes to the Texas Property Tax Code. Our firm has identified and summarized changes from the 87th legislative session that you and your clients can use today. This post concerns new alternative dispute resolution procedures (arbitration) to compel appraisal review boards and central appraisal districts to follow protest procedures.
Limited Arbitration to Compel
ARB & CAD to Follow Procedures
Enacts: Tex. Tax Code § 41A.015. Limited Binding Arbitration to Compel Compliance with Certain Procedural Requirements Related to Protests.
Effective: June 15, 2021.
Summary: This enacts section 41A.015 to enable a property owner who has filed a Chapter 41 protest to request limited binding arbitration to compel the appraisal review board or chief appraiser to take certain action regarding procedural rules. Actions include:
(1) recission of procedural rules adopted by the appraisal review board;
(2) scheduling a hearing on a protest required by section 41.45;
(3) delivery of information to the property owner in the manner required by section 41.461;
(4) compliance with subsections 41.66(b), (i), and (j); and
(5) preclusion of use or offering as evidence information requested by the property owner under section 41.461 that was not delivered at least 14 days before the hearing as required by section 41.67(d).
The failure to comply with the above procedures is not a ground for postponing a protest hearing, except as provided for by Subtitle F of the Texas Property Tax Code (e.g., Tex. Tax Code § 41.66(h) failure to deliver evidence within 14 days). Prior to requesting limited binding arbitration, a property owner must give written notice and opportunity to cure. The notice must detail the procedural requirement sought to be complied with and who has not complied (appraisal review board or chief appraiser). It must be delivered by certified mail, return receipt requested, to the chairman of the appraisal review board, the chief appraiser, and the taxpayer liaison officer for the applicable appraisal district. After receipt of the notice, the chairman of the appraisal review board or chief appraiser, as applicable, is given ten days to deliver a written statement that the procedural requirement will be performed. After notice and opportunity to cure is given, a request for limited binding arbitration can be made so long as it is timely. A request is timely if it is made no earlier than the 11th day and no later than the 30th day after delivering the written notice. The request must be made with the comptroller. It must be in the form prescribed by the comptroller and be accompanied by an arbitration deposit payable to the comptroller. A single limited arbitration may be requested to cover more than one property, more than one protest hearing, or more than one procedural requirement failure. The arbitrator’s fee is the same as if a single property was subject to the arbitration. Following receipt of the request and deposit, the comptroller must appoint an eligible arbitrator. If the arbitrator determines the appraisal review board or chief appraiser failed to comply with a procedural requirement, the arbitrator must direct compliance, refund the deposit to the property owner, and collect the arbitrator fees from appraisal district. If the arbitrator determines the appraisal review board or chief appraiser complied with the procedural requirement, the arbitrator’s fee and other fees must be paid out of the arbitration deposit. An award from this limited binding arbitration does not affect an appeal of a final determination under Chapter 42.
In our identification above, we provide general summaries of the text of newly enacted and/or amended statutes codified from the 87th session. The summaries are for informational purposes only and shouldn’t be relied on as legal advice or as a substitute for the complete text of the referenced statute. Any questions regarding this publication should be directed to an attorney or other appropriate counsel, as necessary.
 To review the text of H.B. 988 click the following link (or copy and past): https://capitol.texas.gov/BillLookup/Text.aspx?LegSess=87R&Bill=HB988.