Texas 2023 - 88th Regular

Texas Senate Bill SB2355

Filed
3/10/23  
Out of Senate Committee
3/29/23  
Voted on by Senate
4/4/23  
Out of House Committee
5/8/23  
Voted on by House
5/12/23  
Governor Action
5/27/23  

Caption

Relating to the appeal of certain ad valorem tax determinations through binding arbitration.

Impact

If enacted, SB2355 is expected to significantly improve the mechanisms by which property owners can contest their tax determinations. By specifically mandating that arbitration requests be submitted electronically, the bill will not only speed up the process but might also reduce the administrative burdens on both property owners and appraisal districts. The modernization efforts outlined in this legislation are anticipated to lead to faster resolutions of disputes concerning property valuations, which can be particularly critical for homeowners and businesses alike who may rely on timely decisions regarding their tax liabilities.

Summary

SB2355, relating to the appeal of certain ad valorem tax determinations through binding arbitration, aims to modernize the process of appealing property tax determinations by allowing property owners to file requests through a newly developed online binding arbitration system facilitated by the state Comptroller's office. The bill seeks to alleviate the inefficiencies associated with the existing paper-driven appeal process and is intended to streamline operations for property owners challenging appraisal review board decisions. The overall goal is to enhance the accessibility and efficiency of tax appeals in Texas.

Sentiment

The sentiment surrounding SB2355 appears to be largely positive among legislators and stakeholders involved in the tax and appraisal processes. Supporters argue that the shift to an electronic system is necessary in the modern tax environment, where efficiency and accessibility can greatly benefit the public and the administration of tax laws. During discussions in the legislative committees, there was strong support for the proposed changes, reflecting an understanding of the current challenges faced by property owners in appealing tax determinations.

Contention

Despite the overall support for SB2355, some concerns were raised regarding the transition to an electronic system, particularly for property owners who may be less technologically savvy or lack access to necessary digital resources. Critics argue that while modernization is essential, it should not inadvertently create barriers for certain demographic groups who may find themselves disadvantaged in this new electronic system. Nonetheless, the bill passed unanimously through both the Senate and the House, indicating a strong bipartisan agreement on its merits.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 41. Local Review
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
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Companion Bills

TX HB4980

Identical Relating to the appeal of certain ad valorem tax determinations through binding arbitration.

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