Bill Caption

Relating to the system for appraising property for ad valorem tax purposes.

Fiscal Notes

Provisions of the bill which authorize a taxing unit in declared disaster area to extend by official action the number of days from 175 to 270, that certain personal property may remain at a defined location before losing eligibility for a goods in transit exemption could result in taxable values being reduced and the related costs to the Foundation School Fund increased through the operation of the school finance formulas. The frequency and location of future disasters and how many taxing units would choose to extend this exemption is unknown; consequently, the cost of this provision cannot be estimated.

Provisions of the bill which provide that a change in the use of land from qualifying open-space land a non-qualifying use in which the physical characteristics of the land during the period for which the land was eligible for special appraisal is not subject to the additional tax penalty and interest as a result of changing the use of the land would be a cost to local taxing units and to the state through the operation of the school funding formula. The number and value of acres that have lost the special appraisal designation or that would lose the designation in the future, but retain certain physical characteristics in unknown. As a result, the cost of this provision cannot be estimated.

Bill Analysis

HB 2014 would exclude members of an appraisal review board from being considered employees of a political subdivision and would stipulate the process for notices to be given with respect to a determination of change of land use for certain land owners.

HB 2014 would allow a taxing unit in a disaster area to extend the time which personal property may remain in one place and still be considered "in transit" for tax purposes from the current 175 days to 270 days. 

HB 2014 would require that appraisal records be assigned a unique record number and would allow contiguous parcels of the owner’s real property to be combined into a single appraisal record at the request of the landowner. 

HB 2014 would give landowners whose land qualifies as open-space land the ability to request in writing that the chief appraiser determine whether a change of use of the land has occurred and the effect of such a determination. The bill would limit the circumstances under which a change in the use of land would be subject to tax penalties. 

The bill would also allow electronic delivery of notice of a determination of a taxpayer's protest.

Vote Recommendation Notes

Texas Action supports HB 2014 which is in alignment with our limited government and property rights principles.