LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 2, 2025 TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1547 by Raymond (Relating to the exclusion from the market value of real property for ad valorem tax purposes of the value of any improvement, or any feature incorporated in an improvement, made to the property if the primary purpose of the improvement or feature is compliance with the requirements of standards that address accessible design of buildings or other facilities.), As Introduced Passage of the bill would exempt from the property tax the value of certain improvements made to comply with the federal requirements under the Americans with Disabilities Act. Contingent on adoption of a constitutional amendment, taxable property values would be reduced and the related costs to the Foundation School Fund would be increased through the operation of the school finance formulas. Contingent on the passage of HJR 83, the bill would require the chief appraiser, when determining the market value of real property, to exclude the value of any improvement or any feature incorporated in an improvement if its primary purpose is to comply with federal requirements under the 2010 Americans with Disabilities Act (ADA) Standards for Accessible Design or any successor standards that address accessible design of buildings or other facilities. The change in law applies to an improvement or a feature if added to the property on or after January 1, 2025.The bill's provisions excluding the value of any improvement, or any feature incorporated in animprovement added after January 1, 2025 to real property - provided its primary purpose is to comply with federal requirements under ADA - would reduce taxable property values. Under provisions of the Education Code, the school district tax revenue loss is partially transferred to the state. The number of properties and corresponding property value that would qualify to be excluded under the bill are unknown. As a result, the fiscal impact of the bill cannot be estimated. Local Government ImpactPassage of the bill would exempt from the property tax the value of certain improvements made to comply with the federal requirements under the Americans with Disabilities Act. Contingent on adoption of a constitutional amendment, taxable property values would be reduced. However, the no-new-revenue and voter-approval tax rates as provided by Section 26.04, Tax Code would be higher as a consequence of the reduced taxable property value proposed by the bill. If cities, counties, and special districts did not adopt higher rates, local levies would be reduced. If those jurisdictions adopted higher tax rates, the initial revenue loss from the exemption would be offset by increased tax levies from owners of non-exempt property and slightly reduced tax savings from owners of exempt property. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 2, 2025
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1547 by Raymond (Relating to the exclusion from the market value of real property for ad valorem tax purposes of the value of any improvement, or any feature incorporated in an improvement, made to the property if the primary purpose of the improvement or feature is compliance with the requirements of standards that address accessible design of buildings or other facilities.), As Introduced
TO: Honorable Morgan Meyer, Chair, House Committee on Ways & Means
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1547 by Raymond (Relating to the exclusion from the market value of real property for ad valorem tax purposes of the value of any improvement, or any feature incorporated in an improvement, made to the property if the primary purpose of the improvement or feature is compliance with the requirements of standards that address accessible design of buildings or other facilities.), 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
HB1547 by Raymond (Relating to the exclusion from the market value of real property for ad valorem tax purposes of the value of any improvement, or any feature incorporated in an improvement, made to the property if the primary purpose of the improvement or feature is compliance with the requirements of standards that address accessible design of buildings or other facilities.), As Introduced
HB1547 by Raymond (Relating to the exclusion from the market value of real property for ad valorem tax purposes of the value of any improvement, or any feature incorporated in an improvement, made to the property if the primary purpose of the improvement or feature is compliance with the requirements of standards that address accessible design of buildings or other facilities.), As Introduced
Passage of the bill would exempt from the property tax the value of certain improvements made to comply with the federal requirements under the Americans with Disabilities Act. Contingent on adoption of a constitutional amendment, taxable property values would be reduced and the related costs to the Foundation School Fund would be increased through the operation of the school finance formulas.
Passage of the bill would exempt from the property tax the value of certain improvements made to comply with the federal requirements under the Americans with Disabilities Act. Contingent on adoption of a constitutional amendment, taxable property values would be reduced and the related costs to the Foundation School Fund would be increased through the operation of the school finance formulas.
Contingent on the passage of HJR 83, the bill would require the chief appraiser, when determining the market value of real property, to exclude the value of any improvement or any feature incorporated in an improvement if its primary purpose is to comply with federal requirements under the 2010 Americans with Disabilities Act (ADA) Standards for Accessible Design or any successor standards that address accessible design of buildings or other facilities. The change in law applies to an improvement or a feature if added to the property on or after January 1, 2025.The bill's provisions excluding the value of any improvement, or any feature incorporated in animprovement added after January 1, 2025 to real property - provided its primary purpose is to comply with federal requirements under ADA - would reduce taxable property values. Under provisions of the Education Code, the school district tax revenue loss is partially transferred to the state. The number of properties and corresponding property value that would qualify to be excluded under the bill are unknown. As a result, the fiscal impact of the bill cannot be estimated.
Local Government Impact
Passage of the bill would exempt from the property tax the value of certain improvements made to comply with the federal requirements under the Americans with Disabilities Act. Contingent on adoption of a constitutional amendment, taxable property values would be reduced. However, the no-new-revenue and voter-approval tax rates as provided by Section 26.04, Tax Code would be higher as a consequence of the reduced taxable property value proposed by the bill. If cities, counties, and special districts did not adopt higher rates, local levies would be reduced. If those jurisdictions adopted higher tax rates, the initial revenue loss from the exemption would be offset by increased tax levies from owners of non-exempt property and slightly reduced tax savings from owners of exempt property.
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