Texas Senate Bill SB134

Texas 2021 - 87th Regular

Caption

Relating to the determination of an ad valorem tax protest or appeal on the ground of the unequal appraisal of property on the basis of the appraised value of the property relative to the median appraised value of a reasonable number of comparable properties.

Impact

If passed, SB134 will have significant implications for how property appraisals are conducted and contested in Texas. By introducing a methodology where property appraisals are evaluated against the median values of a reasonable number of comparable properties—not just within the district but potentially from other parts of the state if necessary—it is expected to ease the burden on homeowners disputing their property values. It also aims to create a more standardized approach that could limit the subjective nature of current appraisal practices.

Summary

Senate Bill 134 aims to amend the Texas Tax Code regarding the processes of ad valorem tax protests and appeals based on the unequal appraisal of property. The bill stipulates that protests on the grounds of unequal appraisal will be determined in favor of the protesting party unless the appraisal district can demonstrate that the appraisal ratio of the property in question meets established benchmarks, such as being equal to or less than the median appraisal level of comparable properties within the appraisal district. This legislation seeks to establish clearer guidelines for the appraisal process and ensure fairness in property tax assessments.

Contention

Notably, the bill addresses issues of inequality in property taxation which can arise when properties are appraised inconsistently. This could lead to potential disputes amongst property owners and appraisal districts. While supporters advocate for its potential to promote more equitable tax assessments, there may also be concerns regarding the ability of appraisal districts to effectively measure and compare properties across differing locales, raising questions about the feasibility of implementing such comparisons.