TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 4. TREASURY ADMINISTRATION

SUBCHAPTER A. POOLED COLLATERAL PROGRAM

34 TAC §4.121

The Comptroller of Public Accounts adopts the repeal of §4.121, concerning notification, without changes to the proposed text as published in the August 16, 2024, issue of the Texas Register (49 TexReg 6192). The rule will not be republished.

The repeal removes §4.121 from Subchapter A because it is unnecessary for the implementation of Government Code, Chapter 2257, Subchapter F, concerning pooled collateral to secure deposits of certain public funds.

The comptroller did not receive any comments regarding adoption of the repeal.

The repeal is adopted under Government Code, §2257.102(a), which requires the comptroller to adopt rules to administer Government Code, Chapter 2257, Subchapter F, concerning pooled collateral to secure deposits of certain public funds.

The repeal implements Government Code, Chapter 2257, Subchapter F, concerning pooled collateral to secure deposits of certain public funds.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 25, 2024.

TRD-202404624

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Effective date: October 15, 2024

Proposal publication date: August 16, 2024

For further information, please call: (512) 475-2220


CHAPTER 9. PROPERTY TAX ADMINISTRATION

SUBCHAPTER C. APPRAISAL DISTRICT ADMINISTRATION

34 TAC §9.415

The Comptroller of Public Accounts adopts amendments to §9.415, concerning applications for property tax exemptions without changes to the proposed text as published in the August 23, 2024, issue of the Texas Register (49 TexReg 6408). The rule will not be republished. The comptroller adopts the amendments due to changes to Tax Code, §11.43 (Application for Exemption) made by Senate Bill 1381, 88th Legislature, R.S., 2023.

Because Tax Code, §11.43 was amended to require the chief appraiser to allow the surviving spouse of a qualified individual age 65 or older or disabled to continue claiming the residence homestead exemption without requiring the surviving spouse to file a new application under certain circumstances, the amendment removes subsection (b) as unnecessary.

Subsequent subsections are relettered.

The comptroller did not receive any comments regarding adoption of the amendments.

The amendments are adopted under Tax Code, §5.03 (Powers and Duties Generally), which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to establishing minimum standards for the administration and operation of an appraisal district.

The amendments implement Tax Code §11.43 (Application for Exemption).

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 23, 2024.

TRD-202404566

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Effective date: October 13, 2024

Proposal publication date: August 23, 2024

For further information, please call: (512) 475-2220


SUBCHAPTER K. ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS

DIVISION 2. LIMITED BINDING ARBITRATION FOR PROCEDURAL VIOLATIONS

34 TAC §9.4223

The Comptroller of Public Accounts adopts an amendment to §9.4223, concerning dismissal for lack of jurisdiction, without changes to the proposed text as published in the June 21, 2024, issue of the Texas Register (49 TexReg 4575). The rule will not be republished.

The amendment clarifies that dismissals with prejudice for lack of jurisdiction under §9.4223(a)(9) will occur where the individual who files for limited binding arbitration lacks the authority to do so. The amendment also modifies the language of subsection (a)(9) for consistency with §9.4244(a)(7) of this title. The comptroller will modify §9.4244(a)(7) of this title in a separate rulemaking.

The comptroller received a comment regarding dismissal for delinquent taxes under §9.4223(a)(1) from Adam L. Pomerantz, Esq. Mr. Pomerantz states that he believes Rule 9.4223(a)(1) is "invalid to the extent that it requires dismissal when taxes were paid after the Delinquency Date but before the arbitrator is appointed or asked by a CAD to dismiss an appeal." Mr. Pomerantz states that in a recent arbitration the property owner paid the taxes after the delinquency date, but before Mr. Pomerantz was appointed as arbitrator. Mr. Pomerantz states that he interprets Tax Code, §41A.10(b) to allow arbitrators to dismiss an arbitration only when the taxes are still delinquent at the time the arbitrator is asked to dismiss. In contrast, he notes that Rule 9.4223(a)(1) requires dismissal with prejudice if taxes on the property are delinquent because, for the year at issue, the undisputed tax amount was not paid before the delinquency date. Mr. Pomerantz argues that arbitrators are not authorized to dismiss appeals if, when requested by a CAD to dismiss the arbitration, all taxes, interest, and penalties have been paid, even if this took place after the delinquency date.

The comptroller thanks Mr. Pomerantz for submitting this comment, but declines to make a change to the rule. Mr. Pomerantz proposes a change to §9.4223(a)(1) which addresses dismissal for delinquent taxes. This is a very different issue from the proposed amendment to §9.4223(a)(9) which addresses the dismissal of requests filed without authority. The comptroller cannot make the requested change because it is beyond the scope of this rulemaking.

The amendment is adopted under Tax Code, §41A.13, which authorizes the comptroller to adopt rules necessary to implement and administer Tax Code, Chapter 41A, concerning appeal through binding arbitration.

The amendment implements Tax Code, Chapter 41A.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 24, 2024.

TRD-202404593

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Effective date: October 14, 2024

Proposal publication date: June 21, 2024

For further information, please call: (512) 475-2220


DIVISION 3. REGULAR BINDING ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS

34 TAC §9.4244

The Comptroller of Public Accounts adopts an amendment to §9.4244, concerning dismissals for lack of jurisdiction, without changes to the proposed text as published in the June 21, 2024, issue of the Texas Register (49 TexReg 4576). The rule will not be republished.

The amendment clarifies that dismissals with prejudice for lack of jurisdiction under §9.4244(a)(7) will occur where the individual who files for regular binding arbitration lacks the authority to do so. The amendment modifies the name of §9.4244 for consistency with §9.4223 of this title. The amendment also modifies the language of subsection (a)(7) for consistency with §9.4223(a)(9) of this title. The comptroller will modify §9.4223(a)(9) of this title in a separate rulemaking.

The comptroller received a comment regarding dismissal for delinquent taxes under §9.4244(a)(1) from Adam L. Pomerantz, Esq. Mr. Pomerantz states that he believes Rule 9.4244(a)(1) is "invalid to the extent that it requires dismissal when taxes were paid after the Delinquency Date but before the arbitrator is appointed or asked by a CAD to dismiss an appeal." Mr. Pomerantz states that in a recent arbitration the property owner paid the taxes after the delinquency date, but before Mr. Pomerantz was appointed as arbitrator. Mr. Pomerantz states that he interprets Tax Code, §41A.10(b) to allow arbitrators to dismiss an arbitration only when the taxes are still delinquent at the time the arbitrator is asked to dismiss. In contrast, he notes that Rule 9.4244(a)(1) requires dismissal with prejudice if taxes on the property are delinquent because, for the year at issue, the undisputed tax amount was not paid before the delinquency date. Mr. Pomerantz argues that arbitrators are not authorized to dismiss appeals if, when requested by a CAD to dismiss the arbitration, all taxes, interest, and penalties have been paid, even if this took place after the delinquency date.

The comptroller thanks Mr. Pomerantz for submitting this comment, but declines to make a change to the rule. Mr. Pomerantz proposes a change to §9.4244(a)(1) which addresses dismissal for delinquent taxes. This is a very different issue from the proposed amendment to §9.4244(a)(7) which addresses the dismissal of requests filed without authority. The comptroller cannot make the requested change because it is beyond the scope of this rulemaking.

The amendment is adopted under Tax Code, §41A.13, which authorizes the comptroller to adopt rules necessary to implement and administer Tax Code, Chapter 41A, concerning appeal through binding arbitration.

The amendment implements Tax Code, Chapter 41A.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on September 24, 2024.

TRD-202404595

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Effective date: October 14, 2024

Proposal publication date: June 21, 2024

For further information, please call: (512) 475-2220