Texas 2025 - 89th Regular

Texas House Bill HB4399

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

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 bill introduces significant changes to how property taxes are assessed, particularly for homeowners seeking to correct appraisal discrepancies. By allowing alterations to the appraisal roll based on recent sales data, this legislation aims to provide relief to homeowners whose properties may be overvalued in the eyes of the tax authorities. It also establishes a clear process for property owners to petition for an appraisal review, enhancing their ability to contest perceived inaccuracies in property valuation.

Summary

House Bill 4399 aims to amend the Texas Tax Code, specifically focusing on the powers of appraisal review boards regarding properties that are sold for less than their appraised value. This bill allows an appraisal review board, upon motion from either the chief appraiser or the property owner, to direct changes to the appraisal roll if the sales price is at least 10 percent lower than the appraised value. The intent behind this bill is to ensure that property valuations reflect current market conditions, especially for homesteads where the sale prices may not align with appraised assessments.

Contention

While the bill provides a structured mechanism for property owners, it has also raised some concerns. Some opponents may argue that the bill could lead to inconsistencies in property tax assessments across different regions, potentially complicating matters for local governments reliant on stable tax revenue. Others may highlight that the conditions under which a homeowner can request a change are still relatively restrictive, as the property must meet specific criteria related to sale price and homestead status. Ultimately, these elements lead to a nuanced debate about balancing the rights of property owners with the financial needs of local governments.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 25. Local Appraisal
    • Section: 025

Companion Bills

TX HB360

Duplicate 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.

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