Relating to the correction of an ad valorem tax appraisal roll.
Impact
The enactment of HB 2159 introduces new provisions for late corrections to the appraisal rolls, including a penalty that property owners must pay if they successfully correct their appraisal prior to tax delinquency. This penalty, equal to 10% of the taxes based on the corrected appraised value, underscores the responsibility of property owners to ensure their property values are accurate from the outset. The law also stipulates that motions filed before the law's effective date will adhere to the prior regulations, ensuring a smooth transition for taxpayers.
Summary
House Bill 2159 addresses the processes related to correcting errors in ad valorem tax appraisal rolls. The bill specifically amends Section 25.25 of the Texas Tax Code to allow property owners or chief appraisers to file motions with the appraisal review board to change an appraisal roll before taxes become delinquent. However, it imposes a threshold for corrections, stating that the incorrect appraised value must exceed certain proportions of the correct value for a change to be warranted, with specific rules for residence homesteads versus other types of properties.
Sentiment
The sentiment surrounding HB 2159 appears to be primarily supportive among legislators and stakeholders concerned with property taxation accuracy. Supporters argue that the bill provides a fair mechanism for correcting appraisal errors while also safeguarding the integrity of the tax system. However, there may be some concerns from property owners regarding the implications of penalties and the thresholds for corrections, which could complicate the process of addressing discrepancies in property valuations.
Contention
Notable points of contention may arise concerning the thresholds established for correcting appraisals. Critics of the bill might argue that the specific percentages outlined could hinder property owners from rectifying legitimate appraisal errors, especially in cases where the original appraisal mistakes significantly impact tax liabilities. Furthermore, imposing a penalty for corrections could discourage property owners from contesting their appraisals, leading to a potential inequity where erroneous appraisals remain uncorrected.
Relating to the waiver under certain circumstances of the late-correction penalty if an appraisal roll is changed as a result of the filing of a motion with the appraisal review board to correct an error that resulted in an incorrect appraised value for an owner's property.
Relating to the authority of an appraisal review board to direct changes in the appraisal roll and related appraisal records if a residence homestead is sold for less than the appraised value.