Relating to the determination of the value of property for ad valorem tax purposes, including appeals through binding arbitration of appraisal review board orders determining protests of property value determinations; providing penalties.
Impact
The introduction of SB771 is likely to lead to more transparent and reliable property valuations across Texas. By providing a clearer framework for how property appraisals should be conducted, the bill aims to mitigate issues associated with inconsistent valuations that can arise from varying local practices. This uniformity in appraisal standards could also address concerns regarding property tax rates, as property owners may benefit from having their properties appraised in a manner that considers both market conditions and comparable sales data. However, the bill could also lead to an uptick in appeals, as property owners may become more aware of their rights regarding property valuation and the appeals process.
Summary
SB771 is focused on establishing more definite procedures and standards regarding the determination of property values for ad valorem tax purposes in Texas. The bill amends the Texas Tax Code, requiring that property appraisals be conducted using generally accepted appraisal methods and techniques. It emphasizes the need for appraisal districts to apply consistent methods when appraising similar types of properties and mandates that individual property characteristics be properly considered to establish market values accurately. Additionally, it stipulates that mass appraisal standards comply with the Uniform Standards of Professional Appraisal Practice, ensuring a level of professionalism and reliability in the appraisal process.
Contention
Despite its intentions, SB771 may face contention primarily from local appraisal districts and certain taxpayer advocacy groups. Critics might argue that the bill could impose undue restrictions on local appraisal practices, which they claim can be tailored to better suit the specific characteristics of their communities. Another point of contention could be related to the mechanism of binding arbitration for disputes over property values; while intended to offer a resolution path, there may be concerns about its practicality and the potential lack of resources or expertise in local jurisdictions to effectively manage such arbitration processes.
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.
Relating to the authority of the chief appraiser of an appraisal district to consider a sale of real property to be a comparable sale when using the market data comparison method of appraisal to determine the market value of real property for ad valorem tax purposes.
Relating to the authority of the chief appraiser of an appraisal district to consider a sale of real property to be a comparable sale when using the market data comparison method of appraisal to determine the market value of real property for ad valorem tax purposes.