Bill Caption

Relating to the determination of the appraised value of property for purposes of an ad valorem tax protest or appeal.

Fiscal Notes

A fiscal note dated April 13, 2015 indicates that the higher evidentiary standard of appraisal methods required by HB 2083 could mean that fewer unequal appraisal protests or appeals would be determined in favor of the taxpayer, resulting in a gain to the state through the operation of the school funding formula, but that the bill's proposed use of comparable properties in counties other than the county in which the property is located could mean, in situations in which insufficient comparable properties exist inside the county, that more unequal appraisal protests or appeals would be determined in favor of the taxpayer, resulting in a loss to local taxing units and to the state through the operation of the school funding formula.

Bill Analysis

Vote Recommendation Notes

5/08/15 Update:

The bill has been amended since we reported in it. The provision that would have enabled the use of comparable properties in other counties has been removed, and another provision has been added to allow property owners to offer an opinion of, and present argument and evidence related to, the market and appraised value or the inequality of appraisal of the owner's property, which would offset the gain provided by the evidentiary standard, to the benefit of property owners. Due to these changes, we have moved from neutral to support. Second chamber sponsor is Senator Hancock.

First chamber analysis below:

The requirements that House Bill 2083 aims to establish a common standard for the determination of an appraised value of property by any person in order to comply with equal and uniform application of the property tax. This would mean that appraisal districts, as well as property owners that want to protest the appraised value of their property would have to use the same standard.

It appears that this generally accepted, higher standard could potentially be a problem for property owners, potentially placing an additional burden on their protest. The fiscal note indicates that using this standard could in fact result in fewer unequal appraisal or appeals determined in favor of taxpayers.

It is also unclear what the standard for choosing comparable properties in other counties, should the number of comparable properties in the county where the appraised property is be insufficient, would be. On what basis would other counties be chosen? The choice could play in favor of either side, depending on the county chosen. House Bill 2083 would benefit from a clarification on this point.

Because of the uncertainty regarding the issues stated above, we will remain neutral on this bill.