Texas Tax Code 22.29 – Penalty for Fraud or Intent to Evade Tax
(a) The chief appraiser shall impose an additional penalty on the person equal to 50 percent of the total amount of taxes imposed on the property for the tax year of the statement or report by the taxing units participating in the appraisal district if it is finally determined by a court that:
(1) the person filed a false statement or report with the intent to commit fraud or to evade the tax; or
(2) the person alters, destroys, or conceals any record, document, or thing, or presents to the chief appraiser any altered or fraudulent record, document, or thing, or otherwise engages in fraudulent conduct, for the purpose of affecting the course or outcome of an inspection, investigation, determination, or other proceeding before the appraisal district.
(b) Enforcement of this section shall be by a proceeding initiated by the district or county attorney of the county in which the appraisal is established, on behalf of the appraisal district.
Terms Used In Texas Tax Code 22.29
- Appraisal: A determination of property value.
- Fraud: Intentional deception resulting in injury to another.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Tax year: means the calendar year. See Texas Tax Code 1.04
- Taxing unit: means a county, an incorporated city or town (including a home-rule city), a school district, a special district or authority (including a junior college district, a hospital district, a district created by or pursuant to the Water Code, a mosquito control district, a fire prevention district, or a noxious weed control district), or any other political unit of this state, whether created by or pursuant to the constitution or a local, special, or general law, that is authorized to impose and is imposing ad valorem taxes on property even if the governing body of another political unit determines the tax rate for the unit or otherwise governs its affairs. See Texas Tax Code 1.04
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) In making a determination of liability under this section, the court shall consider:
(1) the person’s compliance history with respect to paying taxes and filing statements or reports;
(2) the type, nature, and taxability of the specific property involved;
(3) the type, nature, size, and sophistication of the person’s business or other entity for which property is rendered;
(4) the completeness of the person’s records;
(5) the person’s reliance on advice provided by the appraisal district that may have contributed to the violation;
(6) any change in appraisal district policy during the current or preceding tax year that may affect how property is rendered; and
(7) any other factor the court considers relevant.
(d) The chief appraiser may retain a portion of a penalty collected under this section, not to exceed 20 percent of the amount of the penalty, to cover the chief appraiser’s costs of collecting the penalty. The chief appraiser shall distribute the remainder of the penalty to each taxing unit participating in the appraisal district that imposes taxes on the property in proportion to the taxing unit’s share of the total amount of taxes imposed on the property by all taxing units participating in the district.