Texas Senate Bill SB1497

Texas 2009 - 81st Regular

• Out of Senate Committee: 5/1/09
• Voted on by Senate: 5/6/09

Caption

Relating to binding arbitration of certain appraisal review board orders.

Impact

The bill significantly affects the rights of property owners, particularly those whose properties are valued at $1 million or less and qualify as a residence homestead. By introducing a binding arbitration option, the bill attempts to simplify the appeal process, giving homeowners a more expedient means to challenge appraisal decisions. It aims to ensure fair treatment in property valuation disputes by providing a clear methodology for arbitrators to determine the legitimacy of property tax assessments, thus potentially decreasing the likelihood of disproportionate appraisals.

Summary

SB1497, known as the 'Binding Arbitration of Appraisal Review Board Orders' Act, proposes new amendments to the existing Texas Tax Code. The bill seeks to establish a more structured process for property owners to appeal decisions made by appraisal review boards regarding property valuations. Specifically, it allows homeowners, under certain conditions, to opt for binding arbitration as an alternative to traditional appeals in court, streamlining the process and potentially reducing costs associated with disputes over property taxes.

Contention

Notable points of contention surrounding SB1497 include concerns about the eligibility of arbitrators and the potential biases in the appraisal process. Critics argue that while the bill's intention is to favor property owners, the requirements for appealing through arbitration may still favor appraisal districts. Additionally, opponents challenge the transparency in the selection of arbitrators and express concerns that maintaining a favorable arbitration environment could still favor local governments over homeowners’ interests. The potential for differing interpretations of property values depending on arbitration outcomes also raises questions about consistency in appraisal practices across Texas.