BILL ANALYSIS

Senate Research Center	H.B. 3273
88R19004 LHC-F	By: Thierry (Bettencourt)
	Local Government
	4/29/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Over the past two legislative sessions, the legislature has worked to enhance transparency measures related to the property tax rate adoption process by requiring appraisal districts to mail postcard notices to all property owners by August 7 stating where relevant property tax information may be found online.

Postcard mailing costs, like all appraisal district operational costs, are funded by property tax revenues. According to the Texas Association of Appraisal Districts, large metropolitan counties spent over $4,000,000 on this item alone last year, $700,000 of which was spent in Harris County alone.

H.B. 3273 seeks to reduce appraisal district costs while furthering the legislature's intent of enhancing transparency with regard to the estimated amount of property taxes imposed on property owners by requiring the same language to be posted prominently on appraisal districts' and taxing units' websites and published in a newspaper of general circulation and by requiring email notifications of database updates to be provided to property owners who register to receive them through email.

H.B. 3273 amends current law relating to public notice of the availability on the Internet of property tax-related information.

RULEMAKING AUTHORITY

Rulemaking authority previously granted to the Comptroller of Public Accounts of the State of Texas is modified in SECTION 3 (Section 26.04, Tax Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Redesignates Section 25.19(m), Tax Code, as added by Chapter 209 (H.B. 2723), Acts of the 87th Legislature, Regular Session, 2021, as Section 25.19(l-1), Tax Code, and amends it to require that a notice required by certain subsections include the notice required by Section 26.04(e-2), rather than include a certain statement.

SECTION 2. (a) Amends Section 26.04(e-2), Tax Code, to require the chief appraiser of each appraisal district, by September 1, rather than by August 7, or as soon thereafter as practicable, to deliver by regular mail or e-mail to each owner of property located in the appraisal district a notice containing certain information.��

(b) Provides that this section applies only to the 2023 tax year.��

(c) Provides that this section takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 13, Article III, Texas Constitution.� Provides that, if this Act does not receive the vote necessary for immediate effect, this section has no effect.��

SECTION 3. Amends Section 26.04, Tax Code, effective January 1, 2024, by amending Subsections (e-2) and (e-4) and adding Subsection (e-6), as follows:

(e-2) Requires the chief appraiser of each appraisal district to post prominently on the appraisal district's Internet website, if the appraisal district maintains an Internet website, and the assessor for each taxing unit that participates in the appraisal district to post prominently on the taxing unit's Internet website a notice informing each owner of property located in the appraisal district that the estimated amount of taxes to be imposed on the owner's property by each taxing unit in which the property is located may be found in the property tax database maintained by the appraisal district under Section 26.17 (Database of Property-Tax Related Information). Requires that the notice include:

(1) a certain statement in bold typeface;

(2)-(3) makes nonsubstantive changes to these subdivisions; and

(4) instructions describing how a property owner may register on the appraisal district's Internet website, if the appraisal district maintains an Internet website, to have notifications regarding updates to the property tax database delivered to the owner by e-mail.

Deletes existing text requiring the chief appraiser of each appraisal district, by August 7 or as soon thereafter as practicable, to deliver by regular mail or e-mail to each owner of property located in the appraisal district a notice that the estimated amount of taxes to be imposed on the owner's property by each taxing unit in which the property is located may be found in the property tax database maintained by the appraisal district under Section 26.17.

(e-4) Authorizes the Comptroller of Public Accounts of the State of Texas to adopt rules regarding the format, posting, and publication, rather than delivery, of the notice.

(e-6) Requires the chief appraiser of each appraisal district, by August 7 or as soon thereafter as practicable, to publish in a newspaper of general circulation in the county for which the appraisal district is established the notice required by Subsection (e-2). Requires that the notice, if there is no newspaper of general circulation in the county for which the appraisal district is established, be posted at the appraisal office for the district.

SECTION 4. Amends Section 26.05(d-1), Tax Code, to make a conforming change.

SECTION 5. Amends Section 26.17, Tax Code, by adding Subsection (g) to require the chief appraiser of each appraisal district that maintains an Internet website to deliver to a property owner by e-mail notifications regarding updates to the property tax database if the owner registers on the website to receive such notifications in that manner.

SECTION 6. Amends Section 41.46(a), Tax Code, to require that the notice to the property owner initiating a protest include certain information and documents, including the notice required by Section 26.04(e-2). Makes nonsubstantive changes.

SECTION 7. Makes application of this Act, except as otherwise provided by this Act, prospective.

SECTION 8. Effective date, except as otherwise provided by this Act: January 1, 2024.