Texas House Bill HB1038

Texas 2009 - 81st Regular

• Out of House Committee: 3/24/09
• Voted on by House: 3/31/09
• Out of Senate Committee: 5/25/09
• Voted on by Senate: 5/26/09
• Governor Action: 6/19/09
• Enrolled: 5/30/09
• Passed: 6/19/09

Caption

Relating to the determination of the market value of a residence homestead for purposes of ad valorem taxation.

Impact

The implications of HB 1038 are notably significant for homeowners who may be affected by fluctuating property values in their neighborhood. By preventing the exclusion of certain properties from the evaluation process, the bill aims to provide a more accurate representation of market conditions which could either benefit or disadvantage property owners, depending on the circumstances in their locality. In a period where economic challenges may impact property values, this could lead to increased scrutiny in tax assessments and might alleviate some of the financial burdens on homeowners situated near foreclosed properties.

Summary

House Bill 1038 focuses on altering the method for determining the market value of a residence homestead for ad valorem taxation purposes in Texas. The bill explicitly states that when appraising a residence homestead, the chief appraiser cannot ignore the values of other residential properties within the same neighborhood, especially those that have been sold through foreclosure within the past three years or those that have seen a decline in market value due to economic downturns. This amendment seeks to ensure a more comprehensive appraisal process, potentially leading to fairer tax assessments for homeowners.

Contention

Discussions surrounding HB 1038 may involve various stakeholders including property owners, tax appraisers, and local government officials. While proponents of the bill argue that it promotes fairness in taxation by considering the neighborhood's economic context, opponents might express concerns related to the potential increase in property taxes for homeowners in declining markets. Critics may argue that the bill could lead to higher property valuations, particularly for residents living in areas that experience high rates of foreclosure, ultimately raising tax burdens during economically challenging times.