Texas Senate Bill SB1201

Texas 2025 - 89th Regular

• Filed: 2/10/25

Caption

Relating to adjustments in the appraised value of a residence homestead.

Impact

The proposed changes could significantly impact homeowners and the real estate market in Texas. By allowing appraisal offices to adjust appraised values dynamically, the bill seeks to offer better alignment of property taxes with current market values. This could potentially mitigate drastic tax increases for homeowners when property values rise and provide more reasonable tax assessments during market downturns, thereby providing some relief to homeowners experiencing fluctuations in their property values.

Summary

SB1201 focuses on the adjustments in the appraised value of a residence homestead. This legislation aims to amend Section 23.23 of the Texas Tax Code, permitting appraisal offices to adjust the appraised value of residential properties under specific conditions. These adjustments can be made regardless of the office's prior appraisal and are constrained by either the most recent market value or a percentage increase based on the previous year's appraisal, alongside improvements made to the property.

Contention

Notably, while the bill aims to create a balanced approach to property valuation, it could also introduce contentions among stakeholders. Proponents argue that the adjustments will foster fairness in property taxation and support homeowners facing economic challenges. In contrast, critics may express concerns about the potential for varying interpretations and implementations of the law by different appraisal offices, which could lead to inequalities in tax burdens across communities. Additionally, the percentages and criteria set forth for valuations might spark debates regarding their fairness and transparency.

Texas Constitutional Statutes Affected

Tax Code

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