Texas House Bill HB543

Texas 2023 - 88th Regular

• Filed: 11/14/22

Caption

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.

Impact

If enacted, HB 543 would significantly impact how property appraisals are conducted for those who improve accessibility in their buildings. By exempting the value of certain improvements from property assessments, the bill aims to encourage more property owners to invest in accessibility upgrades without worrying about a corresponding increase in their tax liabilities. This change could lead to enhanced accessibility in public spaces and contribute to a greater societal focus on inclusivity for individuals with disabilities.

Summary

House Bill 543 seeks to amend the Texas Tax Code to exclude from the market value of real property the value of improvements made to comply with accessibility standards related to the Americans with Disabilities Act (ADA). This bill specifically incorporates improvements made to ensure compliance with the 2010 ADA Standards for Accessible Design or any updated standards. The intent behind this legislation is to mitigate the financial burden on property owners who make necessary adaptations for accessibility, effectively allowing these improvements to not adversely affect property tax assessments.

Sentiment

The sentiment surrounding HB 543 appears generally positive, particularly among advocates for disability rights, who see it as a step forward in ensuring that individuals with disabilities can access public and commercial spaces without barriers. However, there might be concerns from certain property owners about the broader implications of tax reforms and how such exemptions could affect overall funding for local governments reliant on property tax revenues. Thus, while the bill is likely to be supported by advocates for the disabled, there are nuanced discussions regarding fiscal impacts on local governance.

Contention

Notable points of contention involve the potential financial implications for local governments that depend on property tax revenue levels. Critics may raise concerns about the long-term effects of exempting accessibility-related improvements from market value assessments, arguing that this could lead to funding shortfalls for essential services. Additionally, discussions may also touch on whether the bill aligns with broader tax reform agendas and how it interacts with other ongoing legislative efforts regarding property taxes and local government funding.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 23. Appraisal Methods And Procedures
  • Section: New Section