Texas House Bill HB291

Texas 2025 - 89th Regular

• Filed: 11/12/24

Caption

Relating to the appraisal of real property for ad valorem tax purposes.

Impact

If passed, HB291 would alter the existing processes surrounding the appraisal review in Texas significantly. Specifically, the requirement for a sales price disclosure report could facilitate evaluations that better reflect market values, benefiting state-administered property taxation systems. The bill aims to assist appraisal districts in collecting pertinent sales data that could bolster their assessments, allowing them to present a more accurate representation of property market values during appeals and protests concerning valuations. However, it enforces an additional compliance measure for property buyers, which may be seen as a burden for some.

Summary

House Bill 291 is designed to amend the Tax Code in Texas regarding the appraisal of real property for ad valorem tax purposes. This legislation introduces a requirement for purchasers or grantees of real property to file a sales price disclosure report with the chief appraiser of the appraisal district within ten days of the deed being recorded. The bill outlines specific exemptions where this disclosure is not required, such as sales made under court orders or between family members, ensuring that certain transactions are not burdened by this new obligation. The aim is to increase transparency in property transactions, potentially leading to more accurate property appraisals across the state.

Contention

Discussions around HB291 are expected to involve debates over the balance between transparency and regulatory burden on property transactions. On one side, proponents argue that requiring sales price disclosures will help standardize property assessments and prevent underreporting of sale prices, potentially increasing tax revenue. On the flip side, opponents might express concerns about privacy issues and the potential for double taxation or misinterpretation of sales data, which could adversely affect property owners. Additionally, questions may arise regarding the administrative capacity of appraisal districts to handle the increased volume of sales price data submitted under the new requirements.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 22. Renditions And Other Reports
  • Section: New Section

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

• Chapter 41. Local Review
  • Section: 43

Penal Code

• Chapter 37. Perjury And Other Falsification
  • Section: 10