Texas House Bill HB484

Texas 2019 - 86th Regular

Caption

Relating to the authority of an appraisal review board to direct changes in the appraisal roll and related appraisal records if a residence homestead is sold for less than the appraised value.

Impact

The introduction of HB 484 reflects a significant shift in how property valuations are handled by the state, especially for residential properties. By allowing appraisal review boards to modify appraisals based on actual sales prices, the bill seeks to ensure that property taxes are assessed more equitably and accurately. This change could potentially benefit homeowners, particularly in fluctuating real estate markets where appraised values may not align with actual sale prices.

Summary

House Bill 484 aims to amend the Texas Tax Code concerning the authority of appraisal review boards. Specifically, it permits these boards to direct changes on the appraisal roll and related records for residence homesteads that have been sold for less than their appraised value. The bill proposes that if the sale price of a property is at least 10% less than its appraised value, the board can adjust the appraised value to reflect the sales price for the current and preceding two tax years, provided that the property qualifies as the owner's homestead and reflects market value.

Contention

There may be points of contention surrounding HB 484 related to its implications for revenue generation for local governments that rely on property taxes. Critics might argue that by lowering the assessed value of homes sold at lower prices, local jurisdictions could face budget constraints as tax revenues decrease. Moreover, concerns over the potential administrative burden placed on appraisal review boards as they adapt to these new requirements could arise, along with discussions about the fairness of determining property values post-sale versus pre-sale valuations.