TO: | Honorable Steve Ogden, Chair, Senate Committee on Finance |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB1062 by Williams (Relating to the authority of an owner of real property to require that ad valorem taxes, other than taxes imposed for public school purposes, be imposed on that real property on the basis of a five-year average of the property's taxable value.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | $0 |
2009 | $0 |
2010 | $0 |
2011 | $0 |
2012 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) from Counties |
Probable Revenue Gain/(Loss) from Cities |
---|---|---|
2008 | $0 | $0 |
2009 | ($1,000,530,000) | ($882,719,000) |
2010 | ($941,953,000) | ($825,687,000) |
2011 | ($886,980,000) | ($772,576,000) |
2012 | ($852,848,000) | ($738,217,000) |
The bill would amend Sections 25.19 and 31.01 and add Section 26.095 to the Tax Code to require, upon request by a property owner, that the property owner's local property taxes be assessed on the basis of a five-year average of the property's taxable value. The bill would apply only to appraisals for taxing units other than school districts.
Property owners could elect to have their property appraised on a five-year average by filing a written request with the chief appraiser.
The bill would take effect January 1, 2008, contingent upon adoption of a constitutional amendment to allow appraisal on the basis of a five-year average.
Contingent on the passage of a constitutional amendment, the bill would allow real property owners (other than qualified agricultural or timberland owners) to elect to have their property taxes determined on the basis of a five-year average taxable value instead of the value required under current law. The bill would apply only to appraisals for taxing units other than school districts. The bill would take effect January 1, 2008, which would affect fiscal year 2009 property taxes.
This analysis assumes that all eligible taxpayers would choose to have their property's taxable value determined under this bill's provisions. Property values for the affected property categories were projected statewide based on a five-year average and compared to the values projected under current law to determine the value loss in each year of the analysis. The appropriate projected city and county tax rates were applied to the projected value losses to determine their losses. Information was not available to estimate special district losses.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, CT, SD, SJS
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