Relating to the treatment for ad valorem tax purposes of property that was erroneously omitted from an appraisal roll in a previous year.
The legislation enables the governing body of a taxing unit to decide not to collect all or part of the taxes on properties that were mistakenly excluded from the tax rolls. This provides some flexibility in handling tax obligations for property owners who may face undue financial burdens due to such omissions. Furthermore, the bill allows for the possibility of entering into written agreements for installment payments regarding overdue taxes, penalties, and interest for affected properties.
House Bill 2124 addresses the treatment of property that was erroneously omitted from an appraisal roll in previous years for ad valorem tax purposes. The bill amends Section 25.21 of the Texas Tax Code, detailing the steps that chief appraisers must take when they discover omitted properties. Specifically, it mandates that the chief appraiser must enter the property and its appraised value into the appraisal records as of January 1 of each tax year that the property was omitted.
While the bill aims to rectify issues related to tax assessments, it may lead to discussions among local governments and taxpayers regarding the long-term implications on tax revenue. Some may perceive the leniency in tax collection on erroneously omitted properties as a potential loss of funds for local services. Thus, there may be contention around how this bill could impact fiscal planning for municipalities and the equitable treatment of property owners who do not face such omissions.