Relating to the imposition of a penalty for failure to timely file a rendition statement or property report with the chief appraiser of an appraisal district.

Contracts

• NNN Leases (Tenants): Amend lease terms to explicitly exclude reimbursement for "penalties resulting from Landlord’s failure to timely render." You must not pay for the landlord's administrative errors now that they are line-itemized.
• NNN Leases (Landlords): Ensure "Operating Expenses" definitions are broad enough to capture penalties if the tenant is contractually responsible for the filing but fails to perform.
• Tax Consultant MSAs: Update indemnity clauses. If a third-party vendor misses a filing, they must be liable for the 10% penalty, which will now be irrefutably documented on the tax bill.

Hiring/Training

• Accounts Payable: Train AP staff to review tax bills for the specific "Penalty" line item. Do not auto-pay bills containing this line item without Legal/Tax review.
• Mailroom Protocols: Staff must be trained to flag Certified Mail from Appraisal Districts received between May 15 and June 5. This specific mail class indicates the property was omitted from the prior year's roll, signaling a high-risk audit scenario.

Reporting & Record-Keeping

• Proof of Filing: Maintain digital logs or certified mail receipts for all April rendition filings. The automated June 1 notice requirement removes informal leniency; you will need documented proof of timely filing to contest a penalty.

Fees & Costs

• Penalty Structure: 10% of the total tax liability for the year.
• Budget Impact: While the penalty amount is unchanged, the likelihood of assessment is higher due to automated notification requirements.