Relating to the exclusion from the market value of real property for ad valorem tax purposes of the value of any improvement, or any feature incorporated in an improvement, made to the property if the primary purpose of the improvement or feature is compliance with the requirements of standards that address accessible design of buildings or other facilities.
If enacted, HB 164 would largely benefit property owners who face increased tax assessments due to improvements aimed at accessibility. This change could incentivize more property owners to undertake necessary enhancements, fostering a more inclusive environment for persons with disabilities. The bill, however, is contingent upon approval from voters regarding a constitutional amendment that would allow such exclusions. This means that before the law can take effect, the public must agree to the proposed change.
House Bill 164 proposes an amendment to the Texas Tax Code, specifically adding a provision to exclude the value of certain improvements made to real property for compliance with accessibility standards from ad valorem tax calculations. The primary aim of the bill is to support property owners who make their buildings more accessible according to the 2010 Americans with Disabilities Act Standards for Accessible Design or similar future standards. By excluding the value of these improvements from property assessments, the bill seeks to alleviate the financial burden on individuals and businesses investing in accessibility enhancements.
Overall, HB 164 can be seen as a progressive step towards enhancing accessibility in Texas, aligning with federal mandates for disability access. However, its successful implementation hinges on public support and careful consideration of its fiscal implications for local governments. Should the bill pass both legislative hurdles and a public vote, it would mark a significant shift in how Texas approaches property tax assessments related to accessibility improvements.
While proponents of the bill argue for its necessity in promoting accessibility and inclusivity, some critics may raise concerns about potential loss of tax revenue for local governments. By excluding these improvements from the market value used for tax calculations, local authorities might face challenges in maintaining adequate funding for public services. Additionally, there may be discussions around the effectiveness of relying on tax incentives as a means of promoting accessibility improvements across a diverse range of properties.