BILL ANALYSIS
By: Solomons
Local Government Ways & Means
BACKGROUND AND PURPOSE
Local property taxes are based on appraisals which are assigned by the chief appraiser. Although the assurance that the appraisal process is objective and unbiased is crucial, currently there is concern about the accuracy of the appraisals with many citizens believing their appraisals are inflated.
Current statute regulating the appraisal office does not include basic provisions which would eliminate any appearance of incentives for chief appraisers to inappropriately increase appraisals.
H.B. 35 would prohibit a chief appraiser’s compensation from being linked to any increases in the appraisal values of the property in their district.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B 35 amends Section 6.05 of the Tax Code which regulates appraisal offices. Specifically, the bill amends Section 6.05(d) by prohibiting a chief appraiser’s compensation from being directly or indirectly linked to an increase in the total market, appraised, or taxable value of the property in the appraisal district.
This change applies to appraisal district budgets adopted by the board of directors on or after September 1, 2007. A budget adopted prior to the effective date is governed by current law until it expires.
EFFECTIVE DATE
H.B. 35 is effective immediately if it receives a two-thirds majority vote of the Legislature; otherwise it is effective on September 1, 2007.