Texas House Bill HB154

Texas 2025 - 89th 1st C.S.

• Filed: 7/21/25

Caption

Relating to a requirement that an appraisal review board rely on an appraisal of residential real property prepared by an appraiser and submitted to the board by the property owner to determine a protest regarding the value of the property.

Impact

The enactment of HB 154 will effectively limit the appraisal district's power during hearings by placing a stronger emphasis on independent appraisals submitted by property owners. This is expected to encourage transparency and fairness in the property valuation dispute process, potentially leading to an increase in successful appeals for homeowners. The law will likely foster a sense of trust in the appraisal process and is geared at mitigating feelings of inequity among property owners who wish to challenge appraised values.

Summary

House Bill 154 introduces a statutory requirement for appraisal review boards to rely on appraisals of residential real property that are prepared by independent, certified appraisers and submitted by property owners in the context of value protests. The bill modifies Section 41.43 of the Texas Tax Code to specify that if a property owner submits a conforming appraisal no later than 14 days before the hearing, the appraisal review board must determine the protest in favor of the property owner and adjust the property's appraised value accordingly. This measure aims to empower property owners and streamline the protest process, ensuring they are given due consideration based on third-party evaluations.

Contention

While supporters of the bill commend its intentions to protect property owners, the change has sparked debate among stakeholders in the real estate and appraisal industries. Critics express concern that this requirement could lead to an influx of potentially biased appraisals, especially as property owners may select appraisers with lenient assessments. Moreover, there are fears that this legislation might create inconsistencies in the appraising process and overburden appraisal review boards, which could inadvertently slow down the overall valuation dispute resolution timeline. Thus, opposition centers around the balance between property owner protections and maintaining a robust and impartial appraisal framework.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 41. Local Review
  • Section: New Section

Penal Code

• Chapter 37. Perjury And Other Falsification
  • Section: New Section