CHAPTER 41A. APPEAL THROUGH BINDING ARBITRATION

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TAX CODE

TITLE 1. PROPERTY TAX CODE

SUBTITLE F. REMEDIES

CHAPTER 41A. APPEAL THROUGH BINDING ARBITRATION

Sec. 41A.01. RIGHT OF APPEAL BY PROPERTY OWNER. As an

alternative to filing an appeal under Section 42.01, a property

owner is entitled to appeal through binding arbitration under

this chapter an appraisal review board order determining a

protest filed under Section 41.41(a)(1) concerning the appraised

or market value of property if:

(1) the property qualifies as the owner's residence homestead

under Section 11.13; or

(2) the appraised or market value, as applicable, of the

property as determined by the order is $1 million or less.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1211, Sec. 4, eff. January 1, 2010.

Sec. 41A.02. NOTICE OF RIGHT TO ARBITRATION. An appraisal

review board that delivers notice of issuance of an order

described by Section 41A.01 and a copy of the order to a property

owner as required by Section 41.47 shall include with the notice

and copy:

(1) a notice of the property owner's rights under this chapter;

and

Text of subdivision as added by Acts 2005, 79th Leg., Ch.

912, Sec. 1

(2) a copy of the form prescribed under Section 41A.04.

Text of subdivision as added by Acts 2005, 79th Leg., R.S., Ch.

372, Sec. 1

(2) a copy of the form prescribed under Section 41A.03(a)(1).

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Sec. 41A.03. REQUEST FOR ARBITRATION. (a) To appeal an

appraisal review board order under this chapter, a property owner

must file with the appraisal district not later than the 45th day

after the date the property owner receives notice of the order:

(1) a completed request for binding arbitration under this

chapter in the form prescribed by Section 41A.04; and

(2) an arbitration deposit made payable to the comptroller in

the amount of:

(A) $500; or

(B) $250, if the property owner requests expedited arbitration

under Section 41A.031.

(a-1) If a property owner requests binding arbitration under

this chapter to appeal appraisal review board orders involving

two or more tracts of land that are contiguous to one another, a

single arbitration deposit in the amount provided by Subsection

(a)(2) is sufficient to satisfy the requirement of Subsection

(a)(2).

(b) A property owner who fails to strictly comply with this

section waives the property owner's right to request arbitration

under this chapter. A property owner who appeals an appraisal

review board order determining a protest concerning the appraised

or market value, as applicable, of the owner's property under

Chapter 42 waives the owner's right to request binding

arbitration under this chapter regarding the value of that

property. An arbitrator shall dismiss any pending arbitration

proceeding if the property owner's rights are waived under this

subsection.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1034, Sec. 1, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1211, Sec. 5, eff. January 1, 2010.

Sec. 41A.031. EXPEDITED ARBITRATION. (a) A property owner is

entitled to an expedited arbitration if the property owner

includes a request for expedited arbitration in the request filed

under Section 41A.03 and pays the required deposit.

(b) An expedited arbitration must provide for not more than one

hour of argument and testimony on behalf of the property owner

and not more than one hour of argument and testimony on behalf of

the appraisal district.

the conduct of an expedited arbitration.

Added by Acts 2009, 81st Leg., R.S., Ch.

1211, Sec. 6, eff. January 1, 2010.

Sec. 41A.04. CONTENTS OF REQUEST FORM. The comptroller by rule

shall prescribe the form of a request for binding arbitration

under this chapter. The form must require the property owner to

provide only:

(1) a brief statement that explains the basis for the property

owner's appeal of the appraisal review board order;

(2) a statement of the property owner's opinion of the appraised

or market value, as applicable, of the property that is the

subject of the appeal; and

(3) any other information reasonably necessary for the appraisal

district to request appointment of an arbitrator.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Sec. 41A.05. PROCESSING OF REGISTRATION REQUEST. (a) Not later

than the 10th day after the date an appraisal district receives

from a property owner a completed request for binding arbitration

under this chapter and an arbitration deposit as required by

Section 41A.03, the appraisal district shall:

(1) certify the request;

(2) submit the request and deposit to the comptroller; and

(3) request the comptroller to appoint a qualified arbitrator to

conduct the arbitration.

(b) The comptroller may retain an amount equal to 10 percent of

the deposit to cover the comptroller's administrative costs.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Sec. 41A.06. REGISTRY AND INITIAL QUALIFICATION OF ARBITRATORS.

(a) The comptroller shall maintain a registry listing the

qualified persons who have agreed to serve as arbitrators under

this chapter.

(b) To initially qualify to serve as an arbitrator under this

chapter, a person must:

(1) meet the following requirements, as applicable:

(A) be licensed as an attorney in this state; or

(B) have:

(i) completed at least 30 hours of training in arbitration and

alternative dispute resolution procedures from a university,

college, or legal or real estate trade association; and

(ii) been licensed or certified continuously during the five

years preceding the date the person agrees to serve as an

arbitrator as:

(a) a real estate broker or salesperson under Chapter 1101,

Occupations Code;

(b) a real estate appraiser under Chapter 1103, Occupations Code;

Code; and

(2) agree to conduct an arbitration for a fee that is not more

than 90 percent of the amount of the arbitration deposit required

by Section 41A.03.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1211, Sec. 7, eff. January 1, 2010.

Acts 2009, 81st Leg., R.S., Ch.

1211, Sec. 8, eff. January 1, 2010.

Sec. 41A.061. CONTINUED QUALIFICATION OF ARBITRATOR; RENEWAL OF

AGREEMENT. (a) The comptroller shall include a qualified

arbitrator in the registry until the second anniversary of the

date the person was added to the registry. To continue to be

included in the registry after the second anniversary of the date

the person was added to the registry, the person must renew the

person's agreement with the comptroller to serve as an arbitrator

on or as near as possible to the date on which the person's

license or certification issued under Chapter 901, 1101, or 1103,

Occupations Code, is renewed.

(b) To renew the person's agreement to serve as an arbitrator,

the person must:

(1) file a renewal application with the comptroller at the time

and in the manner prescribed by the comptroller;

(2) continue to meet the requirements provided by Section

41A.06(b); and

(3) during the preceding two years have completed at least eight

hours of continuing education in arbitration and alternative

dispute resolution procedures offered by a university, college,

real estate trade association, or legal association.

the person fails or declines to renew the person's agreement to

serve as an arbitrator in the manner required by this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

1211, Sec. 9, eff. January 1, 2010.

Sec. 41A.07. APPOINTMENT OF ARBITRATOR. (a) On receipt of the

request and deposit under Section 41A.05, the comptroller shall

send the property owner and the appraisal district a copy of the

comptroller's registry of qualified arbitrators and request that

the parties select an arbitrator from the registry. The

comptroller may send a copy of the registry to the parties by

regular mail in paper form or may send the parties written notice

of the Internet address of a website at which the registry is

maintained and may be accessed. The parties shall attempt to

select an arbitrator from the registry.

(b) Not later than the 20th day after the date the parties

receive the copy of the registry or notice of the Internet

address of the registry website, the appraisal district shall

notify the comptroller that:

(1) the parties have selected an arbitrator and request that the

comptroller appoint the selected arbitrator; or

(2) the parties were unable to select an arbitrator and request

the comptroller to appoint an arbitrator.

Subsection (b), the comptroller shall:

(1) appoint:

(A) the arbitrator selected under Subsection (b)(1), if

applicable; or

(B) any arbitrator included in the comptroller's registry, if

Subsection (b)(2) applies; and

(2) send notice to the arbitrator appointed, requesting that the

arbitrator conduct the arbitration.

(d) If the arbitrator appointed is unable or unwilling to

conduct the arbitration for any reason, the arbitrator shall

promptly notify the comptroller that the arbitrator does not

accept the appointment and state the reason. The comptroller

shall appoint a substitute arbitrator promptly after receipt of

the notice.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Sec. 41A.08. NOTICE AND HEARING; REPRESENTATION OF PARTIES. (a)

On acceptance of an appointment to conduct an arbitration under

this chapter, the arbitrator shall set the date, time, and place

of a hearing on the arbitration. The arbitrator shall give

notice of and conduct the hearing in the manner provided by

Subchapter C, Chapter 171, Civil Practice and Remedies Code. The

arbitrator:

(1) shall continue a hearing if both parties agree to the

continuance; and

(2) may continue a hearing for reasonable cause.

(b) The parties to an arbitration proceeding under this chapter

may represent themselves or, at their own cost, may be

represented by:

(1) an employee of the appraisal district;

(2) an attorney who is licensed in this state;

(3) a person who is licensed as a real estate broker or

salesperson under Chapter 1101, Occupations Code, or is licensed

or certified as a real estate appraiser under Chapter 1103,

Occupations Code;

(4) a property tax consultant registered under Chapter 1152,

Occupations Code; or

(5) an individual who is licensed as a certified public

accountant under Chapter 901, Occupations Code.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1211, Sec. 10, eff. January 1, 2010.

Sec. 41A.09. AWARD; PAYMENT OF ARBITRATOR'S FEE. (a) Not later

than the 20th day after the date the hearing under Section 41A.08

is concluded, the arbitrator shall make an arbitration award and

deliver a copy of the award to the property owner, appraisal

district, and comptroller.

(b) An award under this section:

(1) must include a determination of the appraised or market

value, as applicable, of the property that is the subject of the

appeal;

(2) may include any remedy or relief a court may order under

Chapter 42 in an appeal relating to the appraised or market value

of property;

(3) shall specify the arbitrator's fee, which may not exceed the

amount provided by Section 41A.06(b)(2);

(4) is final and may not be appealed except as permitted under

Section 171.088, Civil Practice and Remedies Code, for an award

subject to that section; and

(5) may be enforced in the manner provided by Subchapter D,

Chapter 171, Civil Practice and Remedies Code.

value, as applicable, of the property that is the subject of the

appeal is nearer to the property owner's opinion of the appraised

or market value, as applicable, of the property as stated in the

request for binding arbitration submitted under Section 41A.03

than the value determined by the appraisal review board:

(1) the comptroller, on receipt of a copy of the award, shall

refund the property owner's arbitration deposit, less the amount

retained by the comptroller under Section 41A.05(b);

(2) the appraisal district, on receipt of a copy of the award,

shall pay the arbitrator's fee; and

(3) the chief appraiser shall correct the appraised or market

value, as applicable, of the property as shown in the appraisal

roll to reflect the arbitrator's determination.

(d) If the arbitrator determines that the appraised or market

value, as applicable, of the property that is the subject of the

appeal is not nearer to the property owner's opinion of the

appraised or market value, as applicable, of the property as

stated in the request for binding arbitration submitted under

Section 41A.03 than the value determined by the appraisal review

board:

(1) the comptroller, on receipt of a copy of the award, shall:

(A) pay the arbitrator's fee out of the owner's arbitration

deposit; and

(B) refund to the owner the owner's arbitration deposit, less

the arbitrator's fee and the amount retained by the comptroller

under Section 41A.05(b); and

(2) the chief appraiser shall correct the appraised or market

value, as applicable, of the property as shown in the appraisal

roll to reflect the arbitrator's determination if the value as

determined by the arbitrator is less than the value as determined

by the appraisal review board.

(e) The comptroller by rule may prescribe a standard form for an

award and may require arbitrators to use the award form when

making awards under this chapter.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1211, Sec. 11, eff. January 1, 2010.

Sec. 41A.10. PAYMENT OF TAXES PENDING APPEAL. (a) The pendency

of an appeal under this chapter does not affect the delinquency

date for the taxes on the property subject to the appeal. A

property owner who appeals an appraisal review board order under

this chapter shall pay taxes on the property subject to the

appeal in an amount equal to the amount of taxes due on the

portion of the taxable value of the property that is not in

dispute. If the final determination of an appeal under this

chapter decreases the property owner's tax liability to less than

the amount of taxes paid, the taxing unit shall refund to the

property owner the difference between the amount of taxes paid

and the amount of taxes for which the property owner is liable.

(b) A property owner may not file an appeal under this chapter

if the taxes on the property subject to the appeal are

delinquent. An arbitrator who determines that the taxes on the

property subject to an appeal are delinquent shall dismiss the

pending appeal with prejudice. If an appeal is dismissed under

this subsection, the comptroller shall refund the property

owner's arbitration deposit, less the amount retained by the

comptroller under Section 41A.05(b).

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Sec. 41A.11. POSTAPPEAL ADMINISTRATIVE PROCEDURES. An

arbitration award under this chapter is considered to be a final

determination of an appeal for purposes of Subchapter C, Chapter

42.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Sec. 41A.12. USE OF PROPERTIES AS SAMPLES. An arbitrator's

determination of market value under this chapter is the market

value of the property subject to the appeal for the purposes of

the study conducted under Section 403.302, Government Code.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

288, Sec. 10, eff. January 1, 2010.

Sec. 41A.13. RULES. The comptroller may adopt rules necessary

to implement and administer this chapter.

Added by Acts 2005, 79th Leg., Ch.

372, Sec. 1, eff. September 1, 2005.

Added by Acts 2005, 79th Leg., Ch.

912, Sec. 1, eff. September 1, 2005.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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