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 Professional Certification Act, creates the Board of Tax Professional 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 subsection (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 collection 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 subsection (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 recordkeeping systems, or performing other appraisal act~ivities. The board may also provide 

professional and technical assistance on reguest 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 district. 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 dispersion 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 districts. 

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 Ita general audit of the performance of the 

appraisal district" or "an audit of only one or more particular 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 appraisal district directors to request an audit. Subsection (b) 

authorizes property owners under certain circumstances to 

request an audit. 

3. Section 5.12 

effective on January 1 . . . - _ 

of the Tax Code specifically was made 

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 uniformity 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 described 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 "technical 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 remedies 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 

Tex. Const. art. VIII, § 23.4 

required by law. &g 

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 assessing of property for taxation be practiced and 

regulated as a learned profession and that 

the practitioners in this state be accountable to the public. 

The bill analysis for Senate Bill No. 67, which enacted 

article 7244b, V.T.C.S., in 1977, declares in its "Background" section: "This bill would enact new legislation 

relating to the registration and certification of persons 

engaged in the assessment of property for ad valorem taxation." 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 required 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 designated register with the board: 

(1) Tax assessor means the person responsible 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-collectors 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 sufficient level of competence and professionalism among those 

who are involved with the ad valorem 

.local level. 

taxation system on a 

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 districts' 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 certification by the Board of Tax Professional 

Examiners. 

JIM MATTOX 

Attorney General of Texas 

p. 5191 
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 

I 

p. 5192