Relating to a restriction on the authority of an appraisal district to increase the appraised value of a residence homestead for ad valorem tax purposes for the tax year following a tax year in which the appraised value of the property is lowered as a result of an agreement, protest, or appeal.
The bill changes provision within Section 23.01 of the Tax Code, introducing new restrictions on how appraisal districts must handle the appraisal of lowered property values. It establishes that the appraised value, once reduced, cannot be increased excessively in subsequent years. This law would affect homeowners, ensuring they are not subjected to steep increases in taxes after successfully disputing their home’s assessed value, thereby potentially making home ownership more affordable in the long term.
House Bill 161 aims to modify the authority of appraisal districts in Texas regarding the appraisal of residential homesteads for ad valorem tax purposes. Specifically, the bill stipulates that if the appraised value of a residence homestead is lowered due to an agreement, protest, or appeal, the chief appraiser cannot increase the appraised value in the following tax year beyond certain limits. This is intended to provide property owners with more security and predictability regarding their property tax assessments, especially after a successful appeal or agreement that lowers their property valuation.
Overall, the legislative discussion around HB 161 underscores the complex balance between protecting homeowners and maintaining the integrity of the property tax system. As this bill progresses, its potential effects on local budgets and property tax equity will remain critical points of consideration among lawmakers and advocacy groups alike.
While HB 161 has been proposed as a consumer protection measure, it has sparked debates among legislators and appraisal district officials who are concerned about its implications. Proponents believe it will protect homeowners from unfair tax increases, while critics argue that it could undermine local appraisal practices and restrict appraisal districts' flexibility in adjusting property values. Some stakeholders fear this could lead to financial shortfalls for school districts and local services that rely on property tax revenues.