Texas House Bill HB3840

Texas 2009 - 81st Regular

Caption

Relating to limiting the frequency of reappraisals of real property for ad valorem tax purposes.

Impact

The implementation of HB3840 is expected to create a more predictable taxation environment for property owners across Texas. By reducing the frequency of property tax assessments, the bill could lessen the fiscal pressure on individuals and businesses facing rising tax bills due to frequent revaluations. This change may facilitate better long-term financial planning for property holders, as they will have clearer expectations regarding potential tax liabilities. Additionally, local appraisal offices will need to adjust their methods and schedules for conducting appraisals in accordance with the new law, which may lead to operational changes within those departments.

Summary

House Bill 3840 aims to amend the Texas Tax Code by limiting the frequency of real property reappraisals for ad valorem tax purposes. Specifically, it establishes that a parcel of real property cannot be reappraised more than once in a three-year period, except in cases where the property has changed ownership. This measure intends to provide stability for property owners and to mitigate sudden increases in property taxes, which can be particularly challenging for homeowners and small businesses. The protective clause allows appraisals to occur immediately after a sale, ensuring that valuations reflect current market conditions without being excessively burdensome on homeowners.

Contention

While the bill is designed to protect property owners, some critics argue that limiting appraisals could hinder local governments' ability to respond to rapidly changing real estate markets. They express concerns that a three-year limit may prevent municipalities and appraisal districts from accurately reflecting current property values, particularly in areas experiencing significant growth. This could lead to disparities in revenue for local services funded by property taxes. Supporters, however, counter that the bill provides essential protections for taxpayers against arbitrary tax increases, arguing that maintaining a consistent reappraisal cycle is critical for fairness and predictability in the tax system.