34 Tex. Admin. Code § 9.103 - Audit of Total Taxable Value of Property in a School District

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Agent--A duly authorized individual designated to act as agent on behalf of a school district for the purpose of filing a request for audit pursuant to this section.

(2) Commissioner--The Texas Commissioner of Education.

(3) Comptroller--The Texas Comptroller of Public Accounts.

(4) Director--The director of the Property Tax Assistance Division.

(5) Division--The Property Tax Assistance Division of the office of the comptroller.

(6) Effective date--A single date designated in a request for audit for which all values and other reported information are submitted for an audit under Government Code, § 403.302(h) (Determination of School District Property Values).

(7) Property value study or study--A study conducted by the comptroller pursuant to Government Code, § 403.302.

(8) Request for audit or request--A request for an audit filed with the division pursuant to Government Code, § 403.302(h).

(9) Study year--A tax year, as defined by Tax Code, § 1.04(13) (Definitions), for which the comptroller has conducted a study, or is conducting a study.

(10) Taxable value--The "taxable value" as defined by Government Code, § 403.302(d).

(11) Taxable value audit or audit--An examination, inspection and review of the total taxable value of property in a school district conducted pursuant to Government Code, § 403.302(h).

(b) Requests from school districts.

(1) A school district may request an audit of the total taxable value of property in the school district. A school district must make the request for audit by submitting a Request for School District Taxable Value Audit (Form 50-302) to the director, in writing, with a stated effective date and must include the following:

(A) School District Report of Property Value (Form 50-108);

(B) Report of Value Lost Because of the School Tax Limitation on Homesteads of the Elderly/Disabled (Form 50-253);

(C) Report of Value Lost Because of Deferred Tax Collections Under Tax Code, § 33.06 and § 33.065 (Form 50-851);

(D) Report of Value Lost Because of School District Participation in Tax Increment Financing (TIF) (Form 50-755);

(E) Report of Value Lost Because of Value Limitations Under Tax Code, Chapter 313 (Form 50-767); and

(F) An automated or computer-generated summary of appraisal roll information that:

(i) is certified in accordance with Tax Code, § 26.01 (Submission of Rolls to Taxing Units) by the chief appraiser who appraises property for the requesting school district;

(ii) is produced by the certifying chief appraiser or a taxing unit that collects for the school district; and

(iii) reports values with the same effective date as, and matching each value shown as a line item on, the School District Report of Value (Form 50-108).

(2) In lieu of the Report of Value Lost Because of Deferred Tax Collections Under Tax Code § 33.06 and § 33.065 (Form 50-851), or the Report of Value Lost Because of School District Participation in Tax Increment Financing (TIF) (Form 50-755), or the Report of Value Lost Because of Value Limitations Under Tax Code, Chapter 313 (Form 50-767), the school district may provide a written, signed affirmative statement that the school district has $-0- of lost value to report on the form or forms. The statement must list each form by title and be signed by the superintendent of the school district or the school district's properly designated agent.

(c) Requests from the commissioner. The commissioner may request an audit of any school district's total taxable value. The commissioner must make the request for audit in writing, with a stated effective date, and submit the request to the director. The request must be signed by the commissioner. A school district subject to a request for audit from the commissioner must submit all documentation required under subsection (b)(1) - (2) of this section within 30 days of notification by the division that an audit has been requested.

(d) Deadlines for filing requests.

(1) Except as otherwise provided in this subsection, a request for audit must be filed with the division not later than the third anniversary of the date of the final certification of the property value study findings for the study year subject to the request for audit.

(2) If the chief appraiser corrects the appraisal roll under Tax Code, § 25.25 (Correction of Appraisal Roll) or §42.41 (Correction of Rolls), and the change to the appraisal roll results in a material reduction in the total taxable value of property in the school district, then the request for audit may be filed with the division not later than the first anniversary of the date the chief appraiser certified the change to the appraisal roll under Tax Code, § 25.25 or § 42.41. For purposes of this subsection, a reduction in the total taxable value of property in a school district is considered a material reduction if the superintendent, or other individual authorized by the school district with specific knowledge of the school district's finances, signs a written statement certifying that the correction to the appraisal roll results in a material reduction in the total taxable value of property in the school district.

(e) Number of requests. For the purpose of audits subject to the deadline prescribed by subsection (d)(1) of this section, up to three separate requests for audit pertaining to the same school district and study year may be submitted at any time before the deadline.

(f) Methods of delivery for requests. The requestor is responsible for verifying receipt by the division regardless of the method of delivery. A request for audit may be submitted to the division as follows:

(1) by personal delivery at 1711 San Jacinto Blvd., Third Floor, Austin, Texas 78701;

(2) by United States Postal Service, regular first-class mail, properly addressed with postage prepaid and bearing a post office cancellation mark on or before the applicable deadline for a request under subsection (d) of this section;

(3) by common or contract carrier in a properly addressed envelope or package, bearing a receipt mark on or before the applicable deadline for a request for audit under subsection (d) of this section; or

(4) electronically, via email sent to and received by ptad.audit@cpa.texas.gov with the title "AUDIT REQUEST" in the subject line. A file transfer protocol ("FTP") is available if requested in the email.

(g) Rejection of requests. The division may reject a request for audit if:

(1) the request does not meet the requirements of this section;

(2) the request omits or fails to complete any item required in subsection (b) of this section;

(3) the request fails to meet the deadlines prescribed by subsection (d) of this section;

(4) the request raises an issue previously determined in a protest of preliminary findings of value;

(5) the request asks for revisions that duplicate revisions requested in a previous audit for which the comptroller has certified a final audit finding under Government Code, § 403.302(h); or

(6) the request involves a study year for which the relevant comptroller records do not exist or cannot be retrieved or replicated.

(h) Incomplete submissions and resubmissions of requests. A request for an audit submitted to the division which omits a required item listed in subsection (b) of this section is an incomplete submission. A request that is rejected based on an incomplete submission may be brought into compliance and resubmitted before the applicable deadlines prescribed in subsection (d) of this section.

(1) A request that is rejected based on an incomplete submission shall be counted as a request for audit for purposes of subsection (e) of this section.

(2) A request that is resubmitted shall be counted as a new request for audit for the purposes of subsection (e) of this section.

(i) Additional information. The director may require additional information from the school district, its appraisal district, or any other source as needed to complete the taxable value audit. The director shall provide written notice of the requirement for additional information.

(1) If the school district or its appraisal district does not provide the additional information requested by the director within 30 days, plus any applicable period of extension, the director may deny any adjustments related to the additional information.

(2) Upon the written request of the school district or its appraisal district, the 30 day period may be extended for an additional 15 days if the school district or its appraisal district cannot obtain the information for reasons outside of the school district's or its appraisal district's control, and the school district or its appraisal district reports the reasons in the written request for extension.

(j) Conduct of the examination, inspection and review. Division staff may accept numerical documentation with nominal internal inconsistencies, reject numerical documentation that leads to unreasonable results, and otherwise exercise sound judgment in arriving at the most accurate total taxable value for the school district. Division staff may conduct the taxable value audit by examining, inspecting or reviewing the required documentation submitted with the request for audit, or may include an examination, inspection and review of the relevant information in person at the tax office, appraisal office, or any other public office.

(k) Withdrawal of request. A request for audit may be withdrawn at any time before the comptroller certifies the audit findings.

(l) Certification of findings and protest. After considering all the relevant information submitted by the school district and other reliable sources, division staff shall recalculate the school district's total taxable value. Upon the determination of the findings of the audit, the comptroller shall certify the findings to the commissioner in accordance with Government Code, § 403.302(h). A school district, or a property owner whose property is included in the audit under Government Code, § 403.302(h) and whose tax liability on the property is $100,000 or more, may protest the audit findings pursuant to Subchapter L of this chapter.

(m) Forms for audit request. The forms identified in this section are available on the comptroller's website or may be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528. These forms may be revised at the discretion of the comptroller.

Notes

34 Tex. Admin. Code § 9.103

The provisions of this §9.103 adopted to be effective May 7, 2003, 28 TexReg 3735; Adopted by Texas Register, Volume 45, Number 21, May 22, 2020, TexReg 3518, eff. 5/26/2020