Texas 2025 - 89th Regular

Texas House Bill HB3093

Filed
2/20/25  
Out of House Committee
4/8/25  
Voted on by House
4/17/25  
Out of Senate Committee
5/1/25  
Bill Becomes Law
 

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 implementation of HB 3093 will affect the work of appraisal districts and taxing units, particularly those in counties along the Gulf of Mexico with populations under 500,000. It provides clear definitions of 'anticipated substantial litigation' and sets protocols for property owners to submit necessary documentation regarding contested valuations. This change is anticipated to refine how contested taxable values are processed and integrated into tax rate calculations, thereby potentially impacting local budgeting and financial projections relating to property taxes.

Summary

House Bill 3093 addresses the calculation of certain ad valorem tax rates in cases where property owners indicate their intent to appeal decisions made by appraisal review boards regarding property valuations. The bill requires property owners to provide specific notices related to their appeals, which aim to facilitate a more streamlined process for calculating tax rates during litigation. By mandating that certain properties must be reported if involved in anticipated substantial litigation, the intent is to create transparency and help local governments adequately prepare for potential tax disputes.

Sentiment

Discussion around HB 3093 was generally favorable among supporters who argued that the bill would improve the efficiency and clarity of the property tax appeal process. They emphasized that the transparency provisions would help local governments manage their taxation responsibilities better. However, there were concerns from opponents regarding the bill’s implications on property owners' rights and the potential bureaucratic burden imposed on property owners involved in disputes with appraisal districts.

Contention

Key points of contention raised during discussions of HB 3093 included the degree of responsibility placed on property owners to disclose information regarding their appeals and the potential consequences for local taxing units if they failed to comply with the requirements. Critics expressed worry that the bill might disadvantage smaller property owners who could struggle to navigate the new requirements, fearing an imbalanced approach favoring larger entities capable of managing complex tax disputes efficiently.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 5. State Administration
    • Section: 07
    • Section: 07
    • Section: 07
    • Section: 07
    • Section: 07
  • Chapter 26. Assessment
    • Section: New Section
    • Section: 04
    • Section: 16
    • Section: 17
    • Section: New Section
    • Section: 04
    • Section: 16
    • Section: 17
    • Section: New Section
    • Section: 04
    • Section: 16
    • Section: 17
    • Section: New Section
    • Section: 04
    • Section: 16
    • Section: 17
    • Section: New Section
    • Section: New Section
    • Section: 04
    • Section: 16
    • Section: 17
    • Section: New Section
    • Section: 04
    • Section: 16
    • Section: 17
  • Chapter 41. Local Review
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section

Companion Bills

TX SB1052

Same As 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.

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