TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 9. PROPERTY TAX ADMINISTRATION

SUBCHAPTER K. ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS

The Comptroller of Public Accounts proposes amendments to §9.4202, concerning definitions, §9.4209, concerning refund and arbitrator fee processing, §9.4210, concerning revising the RBA request form.

Legislation enacted within the last four years that provides the statutory authority for these sections is House Bill 1533, 89th Legislature, R.S., 2025.

The amendments to §9.4202 add a "lessee" definition, modify the "property owner" definition and renumber subsequent paragraphs. The amendment to §9.4209 updates references to §9.4223, regarding dismissal for lack of jurisdiction and §9.4244 regarding dismissal for lack of jurisdiction, to incorporate changes proposed in separate rule packages. The amendment to §9.4210 adopts by reference a revised RBA request form to include an option for lessees. The proposed form may be viewed at https://comptroller.texas.gov/forms/ap-219.pdf.

Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed amendments are in effect, the amended rules: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy. This proposal amends existing rules.

Mr. Reynolds also has determined that the proposed amendments would have no significant fiscal impact on the state government, on units of local government, or individuals. The proposed amendments would benefit the public by improving the clarity and implementation of the sections. There would be no anticipated significant economic cost to the public. The proposed amendments would have no significant fiscal impact on small businesses or rural communities.

You may submit comments on the proposal or information related to the cost, benefit, or effect of the proposal, including any applicable data, research or analysis, to Shannon Murphy, Director, Property Tax Assistance Division, P.O. Box 13528 Austin, Texas 78711 or to the email address: ptad.rulecomments@cpa.texas.gov. The comptroller must receive your comments or other information no later than 30 days from the date of publication of the proposal in the Texas Register.

The amendments are proposed under Tax Code, §41A.13, which requires the comptroller to adopt rules necessary to implement Tax Code, §41A.011 (Right to Appeal by Person Leasing Property).

The amendments implement Tax Code §41A.011 (Right to Appeal by Person Leasing Property).

§9.4202. Definitions.

The following phrases, words, and terms, when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise.

(1) Agent--An individual, authorized under Tax Code, §41A.08(b) or §41A.015(h), and §9.4205 of this title, as applicable, to represent a party in arbitration.

(2) Appraisal district--A political subdivision established in each county responsible for appraising property in the county for ad valorem tax purposes for each taxing unit that imposes such taxes on property in the county.

(3) Appraisal review board (ARB)--The board established in a county's appraisal district pursuant to Tax Code, §6.41, authorized to hear and resolve disputes between property owners and the appraisal district.

(4) Appraised value--The value of property determined under the appraisal methods and requirements of Tax Code, Chapter 23.

(5) Arbitration--A form of conflict resolution in which all parties agree that an arbitrator will consider the evidence and render a binding decision. This term includes the two types of arbitration governed by this subchapter: regular binding arbitration and limited binding arbitration. The terms "arbitration," "binding arbitration," and "arbitration proceeding" are synonymous as used in this subchapter and include the term "arbitration hearing," the specific event at which evidence is presented to an arbitrator.

(6) ARB order--An ARB's written decision issued under Tax Code, §41.47.

(7) Authorized individual--An individual with the legal authority to act on behalf of the property owner, a legal guardian, or one who holds a valid power of attorney. Where the property owner is a business entity, this term includes the designated employee of that entity. This term does not include an individual appointed as an agent for binding arbitration under §9.4205 of this title or under Tax Code, §1.111.

(8) Chief Appraiser--The chief administrator of the appraisal district.

(9) Comptroller--The Texas Comptroller of Public Accounts and employees and designees of the comptroller.

(10) Division director--The director of the Property Tax Assistance Division of the Texas Comptroller of Public Accounts or the division director's designee.

(11) Individual--A single human being.

(12) Lessee--A person leasing the property who is contractually obligated to reimburse the property owner for taxes imposed on the property.

(13) [~~(12)~~] Limited Binding Arbitration (LBA)--A process that allows a property owner through binding arbitration to request that an arbitrator compel the ARB or the chief appraiser to take certain procedural actions under Tax Code, §41A.015.

(14) [~~(13)~~] LBA award--A final decision rendered by an arbitrator resolving the matter submitted for their consideration in an LBA case.

(15) [~~(14)~~] Market value--Has the meaning assigned by Tax Code, §1.04(7).

(16) [~~(15)~~] Online arbitration system--A web-based software application designed to electronically administer the binding arbitration program consistent with this subchapter.

(17) [~~(16)~~] Party--The property owner, property owner's agent, ARB, or appraisal district.

(18) [~~(17)~~] Property owner--The authorized individual or a person having legal title to property. In the context of rules applicable to Regular Binding Arbitration, the term includes a lessee that is authorized to appeal by Tax Code, §41A.011. [~~The term does not include lessees who have the right to protest property valuations before ARBs~~].

(19) [~~(18)~~] Regular Binding Arbitration (RBA)--A process under Tax Code, §41A.01, that allows a property owner to contest an ARB order determining a protest through binding arbitration.

(20) [~~(19)~~] RBA award--A final decision rendered by an arbitrator resolving the matter submitted for their consideration in an RBA case.

§9.4209. Refund and Arbitrator Fee Processing.

(a) Administrative costs. The comptroller shall retain $50 of every arbitration deposit to cover the comptroller's administrative costs.

(b) Refund recipients. Any deposit refunds will be issued to the refund recipient designated on the request for binding arbitration.

(1) A deposit refund shall be issued to the property owner or property owner's agent in the amount of the deposit less the $50 comptroller administrative fee if:

(A) the request for binding arbitration is closed due to a defect that could not be cured or due to a defect that was not cured;

(B) the request for binding arbitration is timely withdrawn;

(D) the LBA award found a procedural violation in accordance with §9.4226 of this title; or

(E) the RBA award is in favor of the property owner in accordance with §9.4247(b) of this title.

(2) A deposit refund, if any, shall be issued in the amount of the deposit less the arbitrator's fee and the $50 comptroller administrative fee if:

(A) the request for binding arbitration is not timely withdrawn;

(B) the arbitration is dismissed in its entirety for lack of jurisdiction under §9.4223(a)(2)-(10) [~~§9.4223(a)(2)-(9)~~] or §9.4244(a)(2)-(11) [~~§9.4244(a)(2)-(8)~~] of this title;

(D) the RBA award is not in favor of the property owner in accordance with §9.4247(b) of this title.

§9.4210. Forms.

(a) Adoption by reference. The comptroller adopts by reference:

(1) the request for RBA form dated February 2026; and

(2) the RBA award form.

(b) Revision and addition of forms. Except as provided by subsection (a) of this section, all comptroller forms regarding binding arbitration under Tax Code, Chapter 41A, may be revised at the discretion of the comptroller. The comptroller may also prescribe additional forms for the administration of binding arbitration.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 4, 2026.

TRD-202601879

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Earliest possible date of adoption: June 14, 2026

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

DIVISION 2. LIMITED BINDING ARBITRATION FOR PROCEDURAL VIOLATIONS

34 TAC §9.4223

The Comptroller of Public Accounts proposes amendments to §9.4223, concerning dismissal for lack of jurisdiction.

Legislation enacted within the last four years that provides the statutory authority for this section is House Bill 4101, 88th Legislature, R.S., 2023.

The amendment to subsection (a) adds new paragraph (10) with an additional ground for mandatory dismissal of a request for LBA due to lack of jurisdiction.

Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed amendment is in effect, the amended rule: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rule's applicability; and will not positively or adversely affect this state's economy. This proposal amends an existing rule.

Mr. Reynolds also has determined that the proposed amendment would have no fiscal impact on the state government, on units of local government, or individuals. The proposed amendment would benefit the public by improving the clarity and implementation of the section. There would be no anticipated significant economic cost to the public. The proposed amendment would have no significant fiscal impact on small businesses or rural communities.

The amendments are proposed under Tax Code, §41A.13 (Rules), which allows the comptroller to adopt rules necessary to implement Tax Code, §41A.

The amendments implement Tax Code, §41A.015 (Limited Binding Arbitration to Compel Compliance with Procedural Requirements Related to Protests).

§9.4223. Dismissal for Lack of Jurisdiction.

(a) Reasons for dismissal. The arbitrator shall dismiss a pending request for LBA with prejudice, for lack of jurisdiction, if:

(1) except as allowed by Tax Code, §41A.10, taxes on the property subject to the appeal are delinquent because, for any prior year, all property taxes due have not been paid or because, for the year at issue, the undisputed tax amount was not paid before the delinquency date set by the applicable section of Tax Code, Chapter 31;

(2) no notice of protest under Tax Code, Chapter 41, was filed prior to the request for LBA being filed under Tax Code, §41A.015(a);

(3) the requestor seeks to compel the ARB or chief appraiser to take an action that is not authorized by Tax Code, §41A.015(a);

(4) the requestor failed to timely provide written notice to the chair of the ARB, the chief appraiser, and the taxpayer liaison officer for the applicable appraisal district by certified mail, return receipt requested, of the procedural requirement(s) with which the property owner alleges the ARB or chief appraiser was required to comply under Tax Code, §41A.015(b)(1);

(5) the requestor failed to timely file the request for LBA under Tax Code, §41A.015(d), which requires filing it no earlier than the 11th day and no later than the 30th day after the date the property owner delivered the notice required by Tax Code, §41A.015(b)(1);

(6) the chief appraiser or ARB chair delivered a written statement to the property owner on or before the 10th day after the notice described by Tax Code, §41A.015(b)(1), was delivered confirming that the ARB or chief appraiser would comply with the requirement or cure a failure to comply with the requirement;

(7) a lawsuit was filed in district court regarding the same issues, for the same properties, and for the same tax year for which the request was filed;

(8) the property owner or the property owner's agent and the appraisal district have executed a written agreement resolving the matter; [or]

(9) the request for LBA was not filed by the property owner or was filed by an agent without proper authority as described by Tax Code, §41A.08 and §9.4205 of this title; or[.]

(10) a request for LBA was previously determined by an arbitrator for the same property for the same issues and for the same tax year.

(b) An arbitrator shall dismiss any individual properties for which subsection (a) of this section applies and the case will move forward with only the remaining properties.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 4, 2026.

TRD-202601880

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Earliest possible date of adoption: June 14, 2026

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

DIVISION 3. REGULAR BINDING ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS

34 TAC §9.4240, §9.4244

The Comptroller of Public Accounts proposes amendments to §9.4240, concerning request for RBA, and §9.4244, concerning dismissal for lack of jurisdiction.

Legislation enacted within the last four years that provides the statutory authority for these sections is House Bill 1533, 89th Legislature, R.S., 2025.

The amendments to §9.4240 clarify and update the requirements and structure of the process for lessees to appeal an ARB order determining a protest of property value. The amendments to §9.4244 add additional instances where the arbitrator shall dismiss a request for RBA due to lack of jurisdiction.

Tetyana Melnyk, Director of Revenue Estimating Division, has determined that during the first five years that the proposed amendments are in effect, the amended rules: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy. This proposal amends existing rules.

Ms. Melnyk also has determined that the proposed amendments would have no significant fiscal impact on the state government, on units of local government, or individuals. The proposed amendments would benefit the public by improving the clarity and implementation of the sections. There would be no anticipated significant economic cost to the public. The proposed amendments would have no significant fiscal impact on small businesses or rural communities.

The amendments are proposed under Tax Code, §41A.13, which requires the comptroller to adopt rules necessary to implement Tax Code, §41A.011 (Right to Appeal by Person Leasing Property).

The amendments implement Tax Code, §41A.011 (Right to Appeal by Person Leasing Property).

§9.4240. Request for RBA.

(a) Right of appeal in RBA. A property owner, lessee, or the property owner's agent may appeal an ARB order determining a protest of property value through RBA under the terms and conditions of this section. A single ARB order may be appealed to RBA by only one property owner, even if multiple property owners are listed.

(b) Requirements for processing. A request for RBA will be processed for arbitration under Tax Code, §41A.01, if:

(1) The request for RBA concerns a property with an appraised or market value of $5 million or less as determined by the ARB order, or the property qualifies as the property owner's residence homestead under Tax Code, §11.13;

(2) The only matter in dispute is the determination of a protest filed under either Tax Code, §41.41(a)(1), concerning the property's appraised or market value, or under Tax Code, §41.41(a)(2) concerning unequal appraisal of the property;

(3) The deposit meets the requirements of Tax Code, §41A.03(a)(2), and §9.4204 and §9.4241 of this title;

(4) Except as allowed by Tax Code, §41A.10, taxes on the property subject to the appeal are not delinquent because, for any prior year, all property taxes due have not been paid or because, for the year at issue, the undisputed tax amount was not paid before the delinquency date set by the applicable section of Tax Code, Chapter 31;

(5) No lawsuit has been filed in district court regarding the property for the same issue for the same tax year; and

(6) The request for RBA is timely filed pursuant to Tax Code, §41A.03, using the comptroller-prescribed form.

(c) Contiguous tracts. If the request for RBA involves contiguous tracts of land pursuant to Tax Code, §41A.03(a-1), each tract of land and ARB order must separately meet the requirements of subsection (b) of this section, except that a single arbitration deposit is required. The combined total value of all ARB orders appealed may exceed the $5 million threshold requirement in subsection (b)(1) of this section as long as each individual tract is valued at $5 million or less or has a residence homestead exemption. If the appraisal district indicates two or more tracts are not contiguous during its review of the property accounts subject to the request, the property owner may select the single or contiguous tracts that will be arbitrated during the 45-day settlement period. Otherwise, the arbitrator that accepts the appointment will move forward with the single or contiguous tracts that contain the property with the highest appraised or market value.

(d) Requests for in-county or out-of-county arbitrators. A property owner or the property owner's agent may request that the comptroller appoint an arbitrator for RBA who resides in the county in which the property that is the subject of the appeal is located or an arbitrator who resides outside that county. In appointing an initial arbitrator, the comptroller shall comply with the request of the property owner unless there is not an available arbitrator who resides in the county in which the property that is the subject of the request is located. In appointing a substitute arbitrator, the comptroller shall consider but is not required to comply with the request. This does not authorize a property owner to request the appointment of a specific individual as an arbitrator.

(e) Impact of LBA award on RBA request. If a property owner is granted a new ARB hearing as a result of an LBA award and the property owner has a pending request for RBA based on the same ARB proceedings that were at issue in the LBA, the property owner and appraisal district shall promptly notify the comptroller. The pending request for RBA will be considered withdrawn or dismissed for lack of jurisdiction, depending on its current status. The deposit shall be either paid to the arbitrator or refunded according to §9.4209 or §9.4244 of this title. This shall not impact the property owner's ability to file a new request for RBA based on a subsequent ARB order.

(f) Appeal by Lessee. A lessee may appeal only if the property owner does not appeal the ARB order. If both the property owner and the lessee appeal the ARB order, the right of appeal is revoked from the lessee. The deposit refund less the $50 comptroller administrative fee shall be either paid to the arbitrator or refunded according to §9.4209 or §9.4244 of this title.

§9.4244. Dismissal for Lack of Jurisdiction.

(a) Reasons for dismissal. For requests for RBA filed under Tax Code, §41A.01, the arbitrator shall dismiss with prejudice a pending request for RBA for lack of jurisdiction, if:

(1) except as allowed by Tax Code, §41A.10, taxes on the property subject to the appeal are delinquent because for any prior year, all property taxes due have not been paid or because, for the year at issue, the undisputed tax amount was not paid before the delinquency date set by the applicable section of Tax Code, Chapter 31;

(2) an ARB hearing was not held, or an ARB order was not issued, for the property for the indicated tax year;

(3) [~~(2)~~] the ARB order(s) appealed did not determine a protest filed pursuant to Tax Code, §41.41(a)(1), concerning the appraised or market value, or Tax Code, §41.41(a)(2), concerning unequal appraisal of the property;

(4) [~~(3)~~] the appraised or market value of the property as determined in the ARB order was [~~either~~] more than $5 million and [or] the property did not qualify as the property owner's residence homestead under Tax Code, §11.13;

(5) [~~(4)~~] the request for RBA was filed after the deadline established in Tax Code, §41A.03, which requires submission by not later than the 60th calendar day after the date the property owner or the property owner's agent receives the ARB order determining the protest;

(6) [~~(5)~~] the property owner or the property owner's agent filed an appeal with the district court under Tax Code, Chapter 42, concerning the value of the same property in the same tax year that is at issue in the pending RBA;

(7) [~~(6)~~] the property owner or the property owner's agent and appraisal district have executed a written agreement resolving the matter;

(8) [~~(7)~~] the request for RBA was not filed by the property owner or was filed by an agent without proper authority as described by Tax Code, §41A.08 and §9.4205 of this title; [or]

(9) [~~(8)~~] an LBA award rescinded the ARB order(s) under Tax Code, §41A.015(j)(2)(B);[.]

(10) the request for RBA was filed by the lessee and the property owner has an active appeal of the same ARB order; or

(11) the property that is the subject of the request for RBA was previously the subject of a request for RBA that resulted in an award by an arbitrator for the same tax year.

(b) Contiguous tracts. When an RBA proceeding is brought pursuant to Tax Code, §41A.03(a-1), involving two or more contiguous tracts of land, the arbitrator shall dismiss from the proceeding any tract of land for which subsection (a) of this section applies. If, after dismissal, two or more tracts are not contiguous, the property owner may select the single or contiguous tracts that will be arbitrated. Otherwise, the arbitrator will determine the single or contiguous tracts that contain the property with the highest appraised or market value.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 4, 2026.

TRD-202601881

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Earliest possible date of adoption: June 14, 2026

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

CHAPTER 20. STATEWIDE PROCUREMENT AND SUPPORT SERVICES

SUBCHAPTER C. PROCUREMENT METHODS AND CONTRACT FORMATION

DIVISION 3. SPECIAL CONTRACTING METHODS

34 TAC §20.235

The Comptroller of Public Accounts proposes the repeal of §20.235, concerning purchase of motor vehicles.

The comptroller repeals §20.235(a) because it is a restatement of statute that was repealed by Senate Bill 1364, 89th Legislature, 2025, effective September 1, 2025.

The comptroller repeals §20.235(b) - (d) because they are out-of-date and simply restatements of statute that can now be found in Government Code, Chapter 2158.

The comptroller repeals §20.235(e) because the comptroller intends to include this provision in a new rule that will consolidate all rules regarding purchasing preferences.

While Senate Bill 1364, 89th Legislature, 2025 provides statutory authority for the repeal of §20.235(a), no legislation was enacted within the last four years that provides statutory authority for the repeal of §20.235(b) - (e).

Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed repeal is in effect, the repeal: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rule's applicability; and will not positively or adversely affect this state's economy.

Mr. Reynolds also has determined that the proposed rule repeal would have no fiscal impact on the state government, units of local government, or individuals. The proposed repeal would benefit the public by conforming the rule to current statutory authority, eliminating outdated provisions, and improving the clarity and organization of the rule. There would be no anticipated economic cost to the public. The proposed repeal would have no fiscal impact on small businesses or rural communities.

You may submit comments on the proposal or information related to the cost, benefit, or effect of the proposal, including any applicable data, research or analysis, to Gerard MacCrossan P.O. Box 13528 Austin, Texas 78711 or to the email address: Gerard.MacCrossan@cpa.texas.gov. The comptroller must receive your comments or other information no later than 30 days from the date of publication of the proposal in the Texas Register.

A public hearing will be held to receive comments on the proposed repeal. There is no physical location for this meeting. The meeting will be held at 10:00 a.m., Central Time, on Tuesday, May 19, 2026. To access the online public meeting by web browser, please enter the following URL into your browser: https://txcpa.webex.com/txcpa/j.php?MTID=m30690aef2b195a074c61382b70849b9a. To join the meeting by computer or cell phone using the Webex app, use the access code 2496 317 4556 and password SPDRules. Persons interested in providing comments at the public hearing may contact Mr. Gerard MacCrossan, Comptroller of Public Accounts, at Gerard.MacCrossan@cpa.texas.gov or by calling (512) 463-4468 by May 18, 2026.

This repeal is authorized by Government Code, §2158.0012, which authorizes the comptroller to adopt rules to efficiently and effectively administer Government Code, Chapter 2158.

This repeal implements Government Code, Chapter 2158.

§20.235. Purchase of Motor Vehicles.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 30, 2026.

TRD-202601856

Don Neal

General Counsel, Operations and Support Legal Services

Comptroller of Public Accounts

Earliest possible date of adoption: June 14, 2026

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