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Relating to the appraisal for ad valorem tax purposes of property that was erroneously omitted from an appraisal roll in a previous year.
The bill's provisions shortening the time from five years to three years that real property omitted from an appraisal roll can be appraised and added to the appraisal records would reduce taxable value and increase costs to the Foundation School Fund through the operation of the school funding formulas.
The frequency and value of such omissions is unknown; consequently, the bill's fiscal impact cannot be determined.
Currently, if a chief appraiser finds that a property was mistakenly omitted from the appraisal roll at any time in the prior five years, the chief appraiser can retroactively add the property back to the appraisal roll and apply back taxes, penalties, and interest. HB 1090 would reduce that timeframe from five years to three years, reducing the potential for a property owner to be surprised by hefty back taxes, penalties, and interest.
Texas Action supports HB 1090 which is consistent with limited government, individual liberty, and property rights.