Texas Senate Bill SB42

Texas 2023 - 88th 3rd C.S.

• Filed: 10/9/23

Caption

Relating to the calculation of certain ad valorem tax rates of a taxing unit for a year in which a property owner provides notice that the owner intends to appeal an order of an appraisal review board determining a protest by the owner regarding the appraisal of the owner's property.

Impact

The introduction of SB42 could significantly affect how local governments and appraisal review boards manage the information and data associated with tax appeals. Specifically, if passed, the legislation may lead to changes in local tax revenue streams depending on the timing of appeals and the associated adjustments to tax rates during those disputes. Local taxing units will need to prepare for a potential increase in disputes regarding property valuations, which could raise operational challenges in maintaining budgetary goals and fiscal stability.

Summary

SB42 aims to modify the calculation of certain ad valorem tax rates for taxing units when a property owner notifies their intent to appeal a decision made by an appraisal review board concerning property valuations. This bill seeks to address the process and timeline involving property taxation and appeals, assisting in the resolution of disputes between property owners and appraisal authorities. By adjusting the way tax rates are calculated during the appeal process, the bill hopes to provide fairer treatment of property owners and more clarity within the tax system.

Sentiment

The sentiment surrounding SB42 appears to be cautiously optimistic. Proponents argue that the bill creates a necessary framework for property owners, making the taxing process more equitable and transparent. However, concern has been raised about the implications this will have on local governance and fiscal policies, particularly among those who believe it may inadvertently complicate tax administration. The discussions indicate a recognition of the need for reform in tax rate calculations, yet also an acknowledgment of the potential consequences on local authority and financial planning.

Contention

A notable point of contention pertains to the balance between improving property owners' rights in the appeal process while also maintaining local governments' financial health. Critics argue that altering the ad valorem tax rate calculations might lead to revenue shortfalls for local taxing units, thereby impacting funding for essential services such as education, public safety, and infrastructure. The bill's advocates counter this by asserting that fairness in tax assessments is paramount, potentially leading to long-term benefits for taxpayers and government accountability.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 26. Assessment
  • Section: New Section

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 302