Texas House Bill HB523

Texas 2023 - 88th Regular

• Filed: 11/14/22

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 implications of HB523 are significant for property owners in Texas. By allowing adjustments to appraised values based on actual sales prices, the bill seeks to alleviate financial burdens on homeowners who may find themselves taxed on inflated values, particularly in volatile or declining markets. This could mean lower taxes for residents who have to sell their homes at a loss compared to their appraised values, directly benefiting communities dealing with economic challenges.

Summary

House Bill 523 aims to amend the authority of an appraisal review board concerning property appraisals when a residence homestead is sold for less than its appraised value. This bill enables the appraisal review board, upon motion either from the chief appraiser or the property owner, to adjust the appraisal roll to reflect the sales price. Specifically, if a property’s sales price is at least 10 percent lower than its appraised value, the board can change the appraised value to align with the sales price for the current tax year and up to two preceding years. This legislative change seeks to promote fairness in property taxation as housing markets fluctuate.

Sentiment

The general sentiment surrounding this bill appears to be positive among property owners and advocacy groups like the Texas Appraisal Association, who argue that it brings much-needed relief and equity to the appraisal process. Supporters claim that the ability to adjust appraisals based on market conditions will enhance transparency and accountability. However, concerns persist among local governments regarding the potential loss of revenue from property taxes, which could lead to budgetary constraints for local services.

Contention

Notably, HB523 has raised discussions about the proper balance of authority between local appraisal boards and state regulations. While proponents argue that the bill addresses critical inequities in current appraisal practices, opponents may see it as a diminishing of local control. By centralizing the appraisal authority in response to market conditions, the bill may also lead to debates over how property value adjustments impact broader fiscal policymaking and local governance.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 25. Local Appraisal
  • Section: 25