Texas House Bill HB2312

Texas 2023 - 88th Regular

• Filed: 2/14/23

Caption

Relating to the authority of the chief appraiser of an appraisal district to consider sales of property to governmental units when using the market data comparison method to determine the market value of real property for ad valorem tax purposes.

Impact

The implementation of HB 2312 is expected to have significant implications for property taxes across the state. By excluding certain governmental sales from being treated as comparables, the bill may prevent inflated market valuations that arise from such sales. This change could result in lower assessed values for properties that would otherwise be influenced by atypical sales transactions, thereby potentially reducing tax burdens for property owners. However, it may also limit the data available for appraisers, which could complicate some valuations in specific scenarios.

Summary

House Bill 2312 addresses how property is appraised for tax purposes, specifically focusing on the role of the chief appraiser within local appraisal districts. The bill stipulates that the chief appraiser cannot consider sales of property to governmental units as comparable sales when determining the market value of real property for ad valorem tax purposes if the sale price exceeds the market value. This legislative change aims to provide clearer guidelines for appraisers and ensure a standardized approach to property valuation, especially concerning governmental sales.

Sentiment

General sentiment surrounding HB 2312 appears to be supportive among those who advocate for fairness and consistency in property appraisal practices. Proponents believe that safeguarding against inflated valuations is essential for maintaining equitable tax assessments across various sectors. Conversely, some stakeholders may express concern regarding the impacts of this bill on local revenue collections and the ability of appraisal districts to make well-informed decisions based on comprehensive market data. The discussions around the bill seem to reflect a balance between protecting taxpayers and ensuring that appraisal protocols remain robust and credible.

Contention

Notable points of contention emerging from discussions about HB 2312 may include the potential for adverse effects on local governments. Critics may argue that eliminating certain sales from consideration could unintentionally distort the understanding of market values in certain areas, particularly where governmental units frequently engage in buying properties. The bill's effectiveness in achieving its intended goals without unintended consequences on local governance and revenue is likely to be a central theme in ongoing debates.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 23. Appraisal Methods And Procedures
  • Section: 013

Civil Practice And Remedies Code

• Chapter 101. Tort Claims
  • Section: New Section