Texas House Bill HB65

Texas 2023 - 88th 2nd C.S.

• Filed: 7/7/23

Caption

Relating to the authority of the chief appraiser of an appraisal district to consider a sale of real property to be a comparable sale when using the market data comparison method of appraisal to determine the market value of real property for ad valorem tax purposes.

Impact

The implementation of HB 65 could have significant implications for property tax assessments in Texas. By allowing for a longer timeframe in which sales can be evaluated as comparable, the bill is expected to create more equitable assessments, particularly in populous counties where market conditions may fluctuate rapidly. This could lead to adjustments in property values that might either increase or decrease based on the new appraisal methods, ultimately affecting both property owners and municipalities reliant on tax revenues.

Summary

House Bill 65 proposes amendments to the Texas Tax Code concerning the authority of the chief appraiser of an appraisal district. The bill aims to refine the criteria under which a sale of real property can be considered a comparable sale in the context of market data comparison for appraisals. Specifically, the amendments suggest extending the time frame for considering sales as comparable from 24 months to 36 months for residential properties in counties with populations exceeding 150,000, providing appraisers with a broader spectrum of sales data to determine market values for ad valorem tax purposes.

Sentiment

The sentiment surrounding this bill appears largely supportive, underscored by a recognition of the need for accurate and representative property assessments. Stakeholders who advocate for the bill emphasize its potential to enhance the fairness of property valuations, helping to ensure that property taxes reflect current market conditions. However, there may be apprehensions regarding the adequacy of the data used for assessments and whether extending the comparison period could introduce inconsistencies.

Contention

While general support exists for improving appraisal practices, some contention may arise regarding the potential challenges of using older sales data. Critics might argue that relying on sales that are up to 36 months old could obscure recent market trends, leading to inaccurate assessments. The balance between ensuring that appraisers have access to sufficient sales data without compromising the timeliness and accuracy of property valuations remains a key point of debate.

Texas Constitutional Statutes Affected

Tax Code

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