Texas House Bill HB2489

Texas 2021 - 87th Regular

Caption

Relating to a restriction on the authority of an appraisal district to increase the appraised value of a residence homestead for ad valorem tax purposes for a specified period after a tax year in which the appraised value of the property is lowered as a result of an agreement, protest, or appeal.

Impact

The bill will amend existing provisions in Section 23.01 of the Tax Code. Consequently, if a homeowner successfully contests their property's appraised value, the new law sets clear limits on future increases in valuation by the appraisal district. The chief appraiser will face the burden of proof in any attempt to raise the appraised value, thereby enforcing stricter oversight to prevent arbitrary increases, which could otherwise lead to financial strain on homeowners during economic downturns or financial difficulties.

Summary

House Bill 2489 establishes new protections for property owners regarding the appraised value of their residence homesteads in Texas. Specifically, the bill restricts appraisal districts' authority to increase the appraised value of a residence homestead for three years following a tax year in which the property value is reduced due to a successful protest, appeal, or agreement. This legislation is designed to provide stability and predictability for homeowners regarding their property taxes, ensuring that once property values are lowered, they cannot be increased significantly in the subsequent years without substantial evidence.

Contention

While the legislation is aimed at protecting homeowners, the bill's implementation may lead to concerns from appraisal districts about their ability to manage property valuations effectively. Critics may argue that the three-year limitation can hinder the appraisal districts from accurately reflecting market conditions. The necessity of 'clear and convincing' evidence for any valuation increase can also create additional complexities within the property assessment process, potentially resulting in disputes between district officials and property owners regarding what constitutes adequate evidence. This aspect might also lead to an increase in the number of appeals and protests, further burdening the appraisal system as a whole.