January 16, 1989
Mr. Sam Ii. Smith Opinion No. JM-1008
Executive Director
.Board of Tax Professional Re: Whether appraisers employed
Examiners by the State Property Tax Board
P. 0. Box 15920 must register with the Board of
Austin, Texas 78761-5920 Tax Professional Examiners
(RQ-1495)
Dear Mr. Smith:
Article 7244b, V.T.C.S., the Property Taxation Profes-
sional Certification Act, creates the Board of Tax Profes-
sional Examiners [hereinafter the BTPE], V.T.C.S. art.
7244b, S 4, and reposes in the BTPE the duty, inter alia, to
"insure strict compliance with and enforce all provisions of
this Act." & 5 7. The act requires certain persons to
register with the BTPE and to proceed toward certification.
You ask whether field appraisers employed by the State
Property Tax Board for the purpose of conducting the annual
property value studies for appraisal districts and school
districts must register with your board. We answer your
question in the negative.
Section 11 of article 7244b, V.T.C.S., lists those
persons who are required to register with the board:
(1) all chief appraisers, appraisal
supervisors and assistants, property tax
appraisers, appraisal engineers, and other
persons with authoritv to render iudcment on,
recommend. or certifv aDDraised values to the
aooraisal review board of an anoraisal
district;
(2) the tax assessor-collector, tax
collector, or other person designated by the
governing body of a taxing unit as the chief
administrator of the unit's assessment
functions, collections functions, or both:
and other persons who perform assessment or
collections functions for the unit whom the
p. 5183
Mr. Sam H. Smith - Page 2
chief~administrator of the unit's tax office
requires to register; and
(3) all oersons enaaaed in aooraisals of
real or oersonal nrovertv for ad valorem tax
puruoses for an avvraisal di~strict or a
faxina unit. (Emphasis added.)1
You point out that the act was passed prior to the
addition of field appraisers to the staff of the State
Property Tax Board and accordingly does not address directly
whether these persons should register. Though you do not
indicate which subsection of section 11 requires, in your
opinion, the registration of the State Property Tax Board's
field appraisers, we assume that you base your request upon
either the underscored language of subsection (1) or subsec-
tion (3).2 In other words, we understand you to assert
1. In addition, section 15 of the act sets forth the
qualifications of applicants and provides:
An applicant must be at least 18 years of
age, a resident of the State of Texas, a
person of good moral character and activelv
enaaaed in aooraisal. assessment. or collec-
tion for a taxina unit. (Emphasis added.)
2. Subchapter A of chapter 24 of the Tax Code confers
on the State Property Tax Board the responsibility of
appraising the intangible value of the transportation
operation in this state of certain listed transportation
businesses. Additionally, subchapter B of chapter 24 of the
Tax Code confers on the State Property Tax Board the
responsibility of appraising railroad rolling stock. The
State Property Tax Board annually certifies to each county
tax assessor-collector the property values, apportioned to
each county, of the~businesses appraised pursuant to chapter
24 that operate in each county. We have been informed that
those employees of the State Property Tax Board who conduct
such appraisals register with the BTPE pursuant to subsec-
tion (1) of section 11 because they are "persons with
authority to render judgment on, recommend, or certify
appraised values to the appraisal review board of an
appraisal district." No other provisions of the code confer
(Footnote Continued)
p. 5184
Mr. Sam H. Smith - Page 3
that, by virtue of the valuation and ratio studies that the
State Property Tax Board annually conducts, the field
appraisers of the State Property Tax Board are either
"persons with authority to render judgment on, recommend, or
certify appraised values to the appraisal review board of an
appraisal district" or "persons engaged in appraisals of
real or personal property for ad valorem tax purposes for an
appraisal district or a taxing unit."
The Tax Code created the State Property Tax Board and
conferred upon it a wide variety of duties, most of which do
not even arguably fall within the ambit of section 11 of
article 7244b, V.T.C.S. We will turn to each Tax Code
provision that does arguably fall within section 11 to
examine whether that section confers authority on .the State
Property Tax Board or its employees to perform duties that
would require persons performing those duties to register
with the BTPE.
First, section 5.08 of the Tax Code authorizes the
State Property Tax Board to provide certain assistance to
appraisal districts and appraisal review boards:
(a) The board may provide professional and
technical assistance on request in appraising
prope~yI installing or updating tax maps,
purchasing equipment, developing record-
keeping systems, or performing other apprais-
al act~ivities. The board may also provide
professional and technical assistance on re-
guest to an appraisal review board. The
board may require reimbursement for the costs
of providing the assistance.
(b) The board may provide information to
and consult with persons actively engaged in
appraising property for tax purposes about
any matter relating to property taxation
without charge.
Next, section 11.86 of the Education Code requires the
State Property Tax Board to conduct an annual study to
(Footnote Continued)
authority on employees of the State Property Tax Board to
appraise property directly for appraisal districts or taxing
units.
p. 5185
Mr. Sam H. Smith - Page 4
determine the total taxable value of property in each school
district in the state. Subsection (a) of section 11.86
provides in part:
(a) The board shall conduct an annual
study using comparable sales and other
generally accepted techniques to determine
the total value of all taxable property in
each school district. The study shall
determine the taxable value of all property
and of each class of property within the
district and the productivity value of all
land that qualifies for appraisal on the
basis of its productive capacity and for
which the owner has applied for and received
;tEa;zctivity appraisal. In conducting the
the board shall use appropriate
standard valuation, statistical compilation,
and analysis techniques.
Section 11.86 'requires the State Property Tax Board to
publish its preliminary findings, listing values by school
district, and to deliver the findings to each school dis-
trict. The section further confers on each school district
a right of administrative appeal of the findings, as well as
a right of appeal to a state district court, of the results
of the administrative appeal. The findings of the State
Property Tax Board are utilized by the Commissioner of
Education in determining the local fund assignment under the
Foundation School Program. m Educ. Code, § 16.252.
Next, section 5.10 of the Tax Code imposes on the State
Property Tax Board the duty to conduct annually what are
termed "ratio studies":
(a) The board shall conduct an annual
study in each appraisal district to determine
the degree of uniformity of and the median
level of appraisals by the appraisal district
within each major kind of property. The
board shall publish a report of the findings
of the study, including in the report the
median levels of appraisal for each major
kind of property, the coefficient of disper-
sion around the median level of appraisal for
each major kind of property, and any other
standard statistical measures that the board
considers appropriate. In conducting the
p. 5186
Mr. Sam H. Smith - Page 5
study, the board shall use appropriate
standard statistical analysis techniques.
(b) The published findings of a ratio
study conducted by the State Property Tax
Board shall be distributed to all members of
the legislature and to all appraisal dis-
tricts.
We note here that chapters 41 and 42 of the Tax Code afford
various remedies to both aggrieved taxpayers and aggrieved
taxing units. For example, section 41.03 of the code
permits a taxing unit to appear before an appraisal review
board and challenge, inter alla the level of appraisals of
any category of property in the'district or in any territory
within the district. Section 41.41 of the Tax Code. permits
a taxpayer to appear before the appraisal review board and
protest, infer lia unequal appraisal of his property in
comparison to Ehe 'median level of appraisals of other
property in the appraisal district.
Finally, section 5.12 of the Tax Code authorizes the
State Property Tax Board, under certain circumstances, to
conduct performance audits of appraisal districts that may
comprise either Itageneral audit of the performance of the
appraisal district" or "an audit of only one or more partic-
ular duties, practices, functions, departments, or other
appraisal district matters," i.e. a limited audit. Tax
Code, 5s 5.12(a), (b)-3 Subsection (a) authorizes either
the governing bodies of a majority of the taxing units
participating in an appraisal district or a majority of the
taxing units entitled to vote on'the appointment of apprais-
al district directors to request an audit. Subsection (b)
authorizes property owners under certain circumstances to
request an audit.
3. Section 5.12 of the Tax Code specifically was made
effective
.. . on January
- _ 1 of the first.._ state- fiscal
__. year for
.
wnicn state funos are appropriatea ror runaing tne
administration of the section. Acts 1987, 70th Leg., ch.
860, § 3, at 2928. The legislature appropr.iated funds for
the implementation of this section in the appropriations act
adopted in 1987. Acts 1987,' 70th Leg., 2d C.S., ch. 78,
art. I, at 504.
p. 5187
Mr. Sam H. Smith - Page 6
Subsection (c) of section 5.12 governs limited audits
and provides in part:
The board may not be required to audit the
financial condition of an appraisal district
or to audit a district's tax collections. If
the request is for an audit limited to one or
more particular matters, the board's audit
must be limited to those matters.
Subsection (d) governs general audits and provides:
In conducting a general audit, the board
shall consider and report on:
(1) The extent to which the. district
complies with applicable law or generally
accepted standards of appraisal or other
relevant practice;
(2) the uniformity and level of appraisal
of major kinds of property and the cause of
any significant deviations from ideal unifor-
mity and equality of appraisal of major kinds
of property;
(3) duplication of effort and efficiency
of operation:
(4) the general efficiency, quality of
service, and qualification of appraisal
district personnel; and
(5) except as otherwise provided by
Subsection (c) of this section, any other
matter included in the request for the audit.
The issue is whether the statutory duties of the State
Property Tax Board fall within the ambit of section 11 of
article 7244b, V.T.C.S.
First, section 2(l) of article 7244b, V.T.C.S., defines
"appraisal" in the following way:
'Appraisal means those functions de-
scribed in Chapters 23 and 25, Tax Code, that
are performed by employees of political
subdivisions or bv versons actina on behalf
of oolitical subdivisions and that involve an
p. 5188
Mr. Sam H. Smith - Page 7
.
estimate or vini n of al of a orovertv
interest. (gmphazis addzd.;
See also & 6 2(2) (definition of "assessment").~ Thus,
subsection ll(3) applies to persons acting on behalf of
political subdivisions who perform those functions described
in chapters 23 and 25 of the Tax Code.
Section 5.08 of the Tax Code provides that employees of
the State Property Tax Board, inter alia, may provide "tech-
nical assistance" to appraisal districts or appraisal review
boards. Section 11.86 of the Education Code requires the
State Property Tax Board to conduct annual ratio studies for
purposes of allocating state and local funds for public
school purposes. Section 5.10 of the Tax Code requires the
State Property Tax Board to conduct ratio studies for each
appraisal district, with the studies used by' either
aggrieved taxing units or aggrieved taxpayers seeking rem-
edies for unlawful taxation. Section 5.12 of the Tax Code
permits the State Property Tax Board to conduct "performance
audits" of appraisal districts at the written request of
either a majority of the taxing units participating in the
appraisal district or a sufficient number of taxpayers in
that district. In each instance, employees of the State
Property Tax Board are required to perform certain services
or conduct certain studies, the purpose of which is to
provide a means for evaluating the professional performance
of the appraisal districts' or the taxing units' employees.
The Tax Code, with the aforementioned exception. set forth in
chapter 24, does not require the employees of the State
Property Tax Board to perform the actual functions of
appraising, assessing, or collecting required by law. &g
Tex. Const. art. VIII, § 23.4 Thus, they are not included
within subsection 11(l) of article 7244b, V.T.C.S.
Second, even if the actual language of section 11
fairly could be said to be ambiguous on this question, the
4. Subsection (a) of section 23 of article VIII
provides:
There shall be no statewide appraisal of
real property for ad valorem tax purposes;
however, this shall not preclude formula
distribution of tax revenues to political
subdivisions of the state.
p. 5189
Mr. Sam H. Smith - Page 8
intent of the legislature in passing article 7244b,
V.T.C.S., could not be more clear. Section 1 of article
724433, V.T.C.S. sets forth the purpose of the act and
provides in perCinent part:
The purpose of the legislature by this Act is
to assure the people of Texas that the
responsibility of assessing property for
taxation is entrusted only to those persons
duly registered and competent according to
the regulations provided by this Act. The
legislature further intends that the assess-
ing of property for taxation be practiced and
regulated as a learned profession and that
the practitioners in this state be account-
able to the public.
The bill analysis for Senate Bill No. 67, which enacted
article 7244b, V.T.C.S., in 1977, declares in its "Back-
ground" section: "This bill would enact new legislation
relating to the registration and certification of persons
engaged in the assessment of property for ad valorem taxa-
tion." Bill Analysis, S.B. 67, 65th Leg. (1977) . The
stated purpose of the bill, in addition to creating the
board, is "to regulate persons engaged in the assessment of
property for taxation purposes." Id. Section 11 was
amended in 1981 to change the definitions of persons re-
quired to register in order 'co conform to language in the
Tax Code. House Bill No. 2189 amended.definitional language
in the act. Acts 1981, 67th Leg., ch. 848, at 3224. The
amendment assures that persons performing certain functions
regardless of the titles by which such persons are designat-
ed register with the board:
(1) Tax assessor means the person respon-
sible for assessing property taxes as set
forth by Chapter 26, Property Tax Code.
(2) Chief appraiser means the chief
administrator' of the appraisal district
office.
(3) Property tax'appraiser means a person
duly registered to engage in all or part of
the appraisal process required to estimate
the appraised value of property.
p. 5190
Mr. Sam H. Smith - Page 9
(4) Practice of assessing means to engage
in any or all phases of the assessing process
including appraisal.
Bill Analysis, H.B. 2189, 67th Leg. (1981).
It is clear that the legislature intended with the
original enactment of article 7244b, V.T.C.S., to require
the registration and certification of tax assessor-collect-
ors in Texas. With its subsequent amendment, it is clear
that the legislature intended those persons to register,
regardless of title, who are engaged in what is now termed
"appraisal," as well as assessing and collecting, as defined
in the code. The purpose of the act is to ensure a suffi-
cient level of competence and professionalism among those
who are involved with the ad valorem taxation system on a
.local level.
We recognize that it may seem anomalous to require
appraisers and collectors who are actually employed by
appraisal districts or taxing units to register with the
BTPE and proceed toward certification, while not requiring
to register the field appraisers of the State Property Tax
Board, whose advice and technical assistance the districts
and taxing units rely upon and whose various ratio studies
are used as a standard in terms of which appraisal dis-
tricts' and taxing units' performances can be evaluated.
Any such anomaly properly is a concern for the legislature.
Accordingly, we conclude that the field appraisers
employed by the State Property Tax Board to perform those
duties imposed upon it by law are not required to register
with and proceed toward certification by the Board of Tax
Professional Examiners.
SUMMARY
The field appraisers employed by the State
Property Tax Board are not required to
register with and to proceed toward certifi-
cation by the Board of Tax Professional
Examiners.
JIM MATTOX
Attorney General of Texas
p. 5191
I
Mr. Sam H. Smith - Page.10
MARYKELLER
First Assistant Attorney General
LOU MCCREARY
Executive Assistant Attorney General
JUDGE ZOLLIE STEAKLEY
Special Assistant Attorney General
RICK GILPIN
Chairman, Opinion Committee
Prepared by Jim Moellinger
Assistant Attorney General
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