LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 12, 2025 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2538 by Bettencourt (Relating to the plan required to be adopted by the board of directors of an appraisal district for periodically conducting certain reappraisal activities.), As Introduced No fiscal implication to the State is anticipated. This bill would prohibit the board of directors (board) of an appraisal district from approving and implementing a plan for periodic reappraisal of property that includes a standard or timeline that is inconsistent with or not authorized by law.To the extent that appraisal districts are adopting reappraisal plans that include standards or timelines that are inconsistent with or not authorized by Chapter 25 of the Tax Code, there could be an impact on taxable values and to the state through the operation of the school finance formulas. However, the impact is not expected to be significant. Local Government ImpactTo the extent that appraisal districts are adopting reappraisal plans that include standards or timelines that are inconsistent with or not authorized by Chapter 25 of the Tax Code, there could be some impact. Depending on the condition of the economy and the local real estate market, less frequent appraisals could widely misstate the property value and potentially result in large increases in taxable value when the property comes back up for reappraisal or fail to timely reduce appraisals when market values have declined. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, SZ, SD, BRI
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 12, 2025
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB2538 by Bettencourt (Relating to the plan required to be adopted by the board of directors of an appraisal district for periodically conducting certain reappraisal activities.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB2538 by Bettencourt (Relating to the plan required to be adopted by the board of directors of an appraisal district for periodically conducting certain reappraisal activities.), As Introduced
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB2538 by Bettencourt (Relating to the plan required to be adopted by the board of directors of an appraisal district for periodically conducting certain reappraisal activities.), As Introduced
SB2538 by Bettencourt (Relating to the plan required to be adopted by the board of directors of an appraisal district for periodically conducting certain reappraisal activities.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
This bill would prohibit the board of directors (board) of an appraisal district from approving and implementing a plan for periodic reappraisal of property that includes a standard or timeline that is inconsistent with or not authorized by law.To the extent that appraisal districts are adopting reappraisal plans that include standards or timelines that are inconsistent with or not authorized by Chapter 25 of the Tax Code, there could be an impact on taxable values and to the state through the operation of the school finance formulas. However, the impact is not expected to be significant.
Local Government Impact
To the extent that appraisal districts are adopting reappraisal plans that include standards or timelines that are inconsistent with or not authorized by Chapter 25 of the Tax Code, there could be some impact. Depending on the condition of the economy and the local real estate market, less frequent appraisals could widely misstate the property value and potentially result in large increases in taxable value when the property comes back up for reappraisal or fail to timely reduce appraisals when market values have declined.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, SZ, SD, BRI
JMc, SZ, SD, BRI