Texas House Bill HB4703

Texas 2025 - 89th Regular

• Filed: 3/12/25

Caption

Relating to the application of the market data comparison method of appraisal to determine the market value of real property for ad valorem tax purposes.

Impact

The bill is expected to impact the consistency and accuracy of property valuations across Texas, introducing clearer guidelines for appraisers. By mandating that assessment comparisons be based on both property characteristics and location, the bill aims to reduce discrepancies in property valuations that can lead to uneven tax burdens among property owners. This should benefit both taxpayers and tax authorities by promoting fairness in property tax assessments.

Summary

House Bill 4703 pertains to the appraisal of real property for ad valorem tax purposes, specifically addressing the application of the market data comparison method. The bill proposes an amendment to Section 23.013 of the Texas Tax Code, which involves the establishment of new standards by the comptroller for determining comparable properties based on specific characteristics and geographical proximity. This method aims to provide a more standardized approach to property appraisal, ensuring that properties are assessed fairly in relation to similar properties within the same appraisal district.

Contention

While the bill presents measures to improve the appraisal process, there may be contention regarding how the new standards will be implemented and whether they will adequately address the varied real estate markets across different regions of Texas. Stakeholders may raise concerns regarding the balancing of fairness in tax burdens versus the complexity that might arise in applying standardized appraisal methods. Additionally, some property owners may fear that increased scrutiny and standardized assessments could lead to higher property taxes if their properties are appraised at values more in line with comparable properties.

Texas Constitutional Statutes Affected

Tax Code

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