Bill Text: TX HB3493 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to a requirement that a purchaser of commercial real property disclose the sales price of the property to the appraisal district and to the use of that information by the appraisal district; creating a criminal offense.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-18 - Referred to Ways & Means [HB3493 Detail]
Download: Texas-2019-HB3493-Introduced.html
86R8687 SMT-D | ||
By: Talarico | H.B. No. 3493 |
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relating to a requirement that a purchaser of commercial real | ||
property disclose the sales price of the property to the appraisal | ||
district and to the use of that information by the appraisal | ||
district; creating a criminal offense. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Subchapter C, Chapter 22, Tax | ||
Code, is amended to read as follows: | ||
SUBCHAPTER C. [ |
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SECTION 2. Chapter 22, Tax Code, is amended by adding | ||
Subchapter D to read as follows: | ||
SUBCHAPTER D. REPORT OF SALES PRICE | ||
Sec. 22.61. DEFINITION. In this subchapter, "commercial | ||
real property" means real property that is held or used for the | ||
production of income. | ||
Sec. 22.62. SALES PRICE DISCLOSURE REPORT. (a) Except as | ||
provided by Subsection (b), not later than the 10th day after the | ||
date the deed is recorded in the county real property records, the | ||
purchaser or grantee of commercial real property under a recorded | ||
deed conveying an interest in the real property shall file a sales | ||
price disclosure report with the chief appraiser of the appraisal | ||
district established for the county in which the property is | ||
located. | ||
(b) This section does not apply to a sale or other transfer | ||
of commercial real property if: | ||
(1) the sale or other transfer is made: | ||
(A) under a court order; | ||
(B) to or from a trustee in bankruptcy; | ||
(C) under a power of sale under a deed of trust or | ||
other encumbrance secured by the property; | ||
(D) by a deed in lieu of foreclosure; | ||
(E) by one co-owner to one or more other | ||
co-owners; | ||
(F) to a spouse or to a person or persons in the | ||
first degree of lineal consanguinity of one or more of the sellers | ||
or grantors; | ||
(G) to or from a governmental entity; | ||
(H) through the use of eminent domain; or | ||
(I) to a utility company and the real property is | ||
an easement, license, or right-of-way; or | ||
(2) the real property is a severed mineral interest. | ||
(c) A sales price disclosure report must be signed by the | ||
purchaser or grantee of the commercial real property described in | ||
the report. | ||
Sec. 22.63. REPORT FORM. (a) A sales price disclosure | ||
report filed under this subchapter must read as follows, with the | ||
appropriate information included in the blanks: | ||
SALES PRICE DISCLOSURE REPORT | ||
Section 22.62, Tax Code, requires a purchaser or grantee of | ||
commercial real property under a deed to prepare this report, sign | ||
it, and file it with the chief appraiser of the appraisal district | ||
established for the county in which the property is located not | ||
later than the 10th day after the date the deed is recorded. This | ||
report is not required to be filed if the sale or transfer is made: | ||
(1) under a court order; (2) to or from a trustee in bankruptcy; (3) | ||
under a deed of trust or other encumbrance secured by the property; | ||
(4) by a deed in lieu of foreclosure; (5) between co-owners; (6) | ||
between spouses or between family members in the first degree of | ||
lineal consanguinity; (7) to or from a governmental entity; (8) | ||
through the use of eminent domain; or (9) to a utility company and | ||
the property is an easement, license, or right-of-way. In | ||
addition, this report is not required to be filed if the property | ||
being sold or transferred is a severed mineral interest. Knowingly | ||
making a false statement on this form is grounds for prosecution of | ||
a Class A misdemeanor or a state jail felony under Section 37.10, | ||
Penal Code. The chief appraiser may not use the information in this | ||
form as the sole basis on which to increase the market value of the | ||
property. | ||
Seller's or grantor's name: ___________________ | ||
Purchaser's or grantee's name: ________________ | ||
Purchaser's or grantee's address: _____________ | ||
Property description (as stated in deed): _____ | ||
Sales price of or other consideration paid for the property: | ||
________ | ||
The method used to finance the sales price or other | ||
consideration was: □ none (cash sale) □ cash and third-party | ||
financing □ cash and seller financing □ exchange of other | ||
property □ other, describe: _________________________________ | ||
Describe any unusual or extraordinary terms of the sale or | ||
transfer that affected the amount of the sales price or other | ||
consideration: _____________________________ | ||
Provide any additional information relevant to the sale or | ||
transfer, including: | ||
(1) whether the sale or transfer involved property | ||
other than real property and the type of property, whether tangible | ||
or intangible, involved in the sale or transfer; | ||
(2) whether the sale or transfer involved property | ||
located in more than one county and, if so, the portion of the sales | ||
price or other consideration allocated to the portion of the | ||
property located in each county; | ||
(3) in the case of a sale, whether the sale is the sale | ||
of an entire business or business unit; and | ||
(4) any other facts or circumstances that affected the | ||
sales price or other consideration (optional): | ||
_____________________________ | ||
To the best of my knowledge, this statement is true and | ||
accurate. | ||
Purchaser's or grantee's signature: _______________ | ||
Date: ____________ | ||
Return this form to: ______________________________. | ||
(b) The appraisal district shall include at the end of the | ||
form instructions for the filing of the form by mail, hand delivery, | ||
or, if permitted by the chief appraiser, electronic mail or other | ||
electronic means. | ||
(c) Each appraisal district shall prepare and make | ||
available sales price disclosure report forms that conform to the | ||
requirements of this section. Except for instructions for the | ||
filing of the form, no additional information may be required to be | ||
included in a sales price disclosure report form. | ||
Sec. 22.64. FILING AND RECEIPT OF REPORT. (a) A purchaser | ||
or grantee may file a sales price disclosure report with a chief | ||
appraiser by mail, hand delivery, or, if permitted by the chief | ||
appraiser, electronic mail or other electronic means. | ||
(b) On receipt of the completed sales price disclosure | ||
report, the chief appraiser shall provide to the purchaser or | ||
grantee a written acknowledgement that the report has been | ||
received. If the acknowledgement of receipt is mailed, the chief | ||
appraiser shall mail it to the purchaser or grantee at the address | ||
provided in the report. | ||
Sec. 22.65. PREPARATION OF REPORT; IMMUNITY FROM LIABILITY. | ||
(a) A sales price disclosure report must be prepared by the | ||
purchaser or grantee of the property described in the report or by | ||
another person on behalf of the purchaser or grantee. | ||
(b) A person who prepares a sales price disclosure report on | ||
behalf of a purchaser or grantee of the property described in the | ||
report is not liable to any person for preparing the report or for | ||
any unintentional error or omission in the report. | ||
Sec. 22.66. ACTION TO COMPEL COMPLIANCE. The chief | ||
appraiser may bring an action for an injunction to compel a person | ||
to comply with the requirements of this subchapter. If the court | ||
finds that this subchapter applies and that the person has failed to | ||
fully comply with its requirements, the court: | ||
(1) shall order the person to comply; and | ||
(2) may assess costs and reasonable attorney's fees | ||
against the person. | ||
Sec. 22.67. CONFIDENTIAL INFORMATION. (a) A sales price | ||
disclosure report filed with a chief appraiser under this | ||
subchapter is confidential and not open to public inspection. The | ||
report and the information it contains may not be disclosed to | ||
another person other than an employee of the appraisal district who | ||
appraises property, except as provided by Subsection (b). | ||
(b) Information that is confidential under Subsection (a) | ||
may be disclosed: | ||
(1) in a judicial or administrative proceeding under a | ||
lawful subpoena; | ||
(2) to a purchaser, grantee, seller, or grantor named | ||
in the report or in the deed to which the report applies or to a | ||
representative of the purchaser, grantee, seller, or grantor under | ||
a written authorization signed by the purchaser, grantee, seller, | ||
or grantor; | ||
(3) to the comptroller or to an assessor for a taxing | ||
unit in which the property described in the report is located; | ||
(4) in a judicial or administrative proceeding related | ||
to real property taxation: | ||
(A) to which the purchaser, grantee, seller, or | ||
grantor is a party; | ||
(B) to which an owner of the property described | ||
in the report is a party; or | ||
(C) by the appraisal district for the purpose of | ||
establishing a value of the property or of providing evidence of | ||
comparable sales to appraise another property; | ||
(5) for statistical purposes if the information is | ||
provided in a form that does not identify a specific property or | ||
specific purchaser, grantee, seller, or grantor; | ||
(6) if and to the extent that the information is | ||
required to be included in a public document or record that the | ||
appraisal office is required to prepare or maintain; or | ||
(7) to a taxing unit or its legal representative that | ||
is engaged in the collection of delinquent taxes on the property | ||
described in the report. | ||
(c) Information that is disclosed under this section does | ||
not lose its confidential character. | ||
(d) A person, other than the purchaser, grantee, seller, or | ||
grantor, who obtains a sales price disclosure report or information | ||
from the report commits an offense if the person: | ||
(1) discloses the report or information to a person | ||
who is not authorized under this section to receive the report or | ||
information; or | ||
(2) permits the person to whom the report or | ||
information is disclosed to view, read, or copy the report or | ||
information. | ||
(e) An offense under Subsection (d) is a Class B | ||
misdemeanor. | ||
(f) It is a defense to prosecution under Subsection (d) that | ||
the person who received information contained in the sales price | ||
disclosure report obtained the information from: | ||
(1) a purchaser, grantee, seller, or grantor of the | ||
property described in the report; or | ||
(2) a document or record other than the sales price | ||
disclosure report. | ||
SECTION 3. Section 23.013, Tax Code, is amended by adding | ||
Subsection (e) to read as follows: | ||
(e) The chief appraiser may use information contained in a | ||
sales price disclosure report filed under Subchapter D, Chapter 22, | ||
in determining the market value of commercial real property but may | ||
not increase the market value of the real property described in the | ||
report solely on the basis of the information contained in the | ||
report. | ||
SECTION 4. (a) As soon as practicable after the effective | ||
date of this section, but not later than January 1, 2020, each | ||
appraisal district shall prepare and make available sales price | ||
disclosure report forms as provided by Section 22.63, Tax Code, as | ||
added by this Act. | ||
(b) This section takes effect September 1, 2019. | ||
SECTION 5. This Act applies only to a sale or other transfer | ||
of commercial real property that occurs on or after January 1, 2020. | ||
SECTION 6. Except as otherwise provided by this Act, this | ||
Act takes effect January 1, 2020. |