LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 7, 2023 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government 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 Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB4101, As Engrossed : 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 (ARB) or chief appraiser to comply with the hearing procedures adopted by the ARB under section 41.01(c).
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
May 7, 2023
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government 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 Engrossed
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
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 Engrossed
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
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 Engrossed
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 Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB4101, As Engrossed : 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 Engrossed : 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 (ARB) or chief appraiser to comply with the hearing procedures adopted by the ARB under section 41.01(c).
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.
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, AF, BRI, KK, SD
JMc, AF, BRI, KK, SD