LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 26, 2023 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4101 by Shine (Relating to the matters that may be the subject of limited binding arbitration to compel compliance with procedural requirements related to protests before appraisal review boards.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB4101, As Introduced : a negative impact of ($766,393) through the biennium ending August 31, 2025. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2024($520,651)2025($245,742)2026($245,742)2027($245,742)2028($245,742)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20232024($520,651)3.02025($245,742)3.02026($245,742)3.02027($245,742)3.02028($245,742)3.0 Fiscal AnalysisThe bill would amend Chapter 41A of the Tax Code, relating to appeal through binding arbitration, to add that a property owner may file a request for limited binding arbitration to compel the appraisal review board or chief appraiser to comply with the Comptroller's model hearing procedures, the applicable Comptroller issued Appraisal Review Board Manual, or any other procedural requirement related to a protest filed under Chapter 41.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
March 26, 2023
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4101 by Shine (Relating to the matters that may be the subject of limited binding arbitration to compel compliance with procedural requirements related to protests before appraisal review boards.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB4101 by Shine (Relating to the matters that may be the subject of limited binding arbitration to compel compliance with procedural requirements related to protests before appraisal review boards.), As Introduced
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Honorable Morgan Meyer, Chair, House Committee on Ways & Means
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4101 by Shine (Relating to the matters that may be the subject of limited binding arbitration to compel compliance with procedural requirements related to protests before appraisal review boards.), As Introduced
HB4101 by Shine (Relating to the matters that may be the subject of limited binding arbitration to compel compliance with procedural requirements related to protests before appraisal review boards.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4101, As Introduced : a negative impact of ($766,393) through the biennium ending August 31, 2025.
Estimated Two-year Net Impact to General Revenue Related Funds for HB4101, As Introduced : a negative impact of ($766,393) through the biennium ending August 31, 2025.
General Revenue-Related Funds, Five- Year Impact:
2024 ($520,651)
2025 ($245,742)
2026 ($245,742)
2027 ($245,742)
2028 ($245,742)
All Funds, Five-Year Impact:
2024 ($520,651) 3.0
2025 ($245,742) 3.0
2026 ($245,742) 3.0
2027 ($245,742) 3.0
2028 ($245,742) 3.0
Fiscal Analysis
The bill would amend Chapter 41A of the Tax Code, relating to appeal through binding arbitration, to add that a property owner may file a request for limited binding arbitration to compel the appraisal review board or chief appraiser to comply with the Comptroller's model hearing procedures, the applicable Comptroller issued Appraisal Review Board Manual, or any other procedural requirement related to a protest filed under Chapter 41.
Methodology
The Comptroller's office anticipates needing to hire three Program Specialists III to administer the provisions in the bill and handle the anticipated increase in the number of requests for limited binding arbitration. The Comptroller's office would be required to update training materials, forms, and letter templates to account for the new causes, as well as provide on-going manual processing of requests and data analysis. This analysis assumes staffing costs of $232,651 in fiscal year 2024 and $245,742 in fiscal year 2025 and each subsequent year. The administrative costs include a one-time technology cost of $288,000 in fiscal year 2024 for 1,920 programming hours to modify the tax systems impacted by this bill.
Technology
The administrative costs include a one-time technology cost of $288,000 in fiscal year 2024 for 1,920 programming hours to modify the tax systems impacted by this bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD, BRI
JMc, KK, SD, BRI