Honorable Paul Bettencourt, Chair, Senate Committee on Property Tax
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB2159 by Meyer (Relating to the correction of an ad valorem tax appraisal roll.), As Engrossed
Passage of the bill would expand the grounds permitted in an error correction motion to include unequal appraisal. As a result, taxable property values could be reduced and the related costs to the Foundation School Fund could be increased through the operation of the school finance formulas.
The bill would amend Tax Code Section 25.25(d) to allow a property owner to file a motion to correct the appraisal roll for an error regarding the unequal appraisal or excessive market value of property if the error resulted in an appraised value of more than one-third of the correct appraised value.
Provisions of this bill that expand the grounds permitted in an error correction motion to include unequal appraisal would create a cost to local taxing units and the state through the school finance formula by providing a greater opportunity for property owners to obtain appraised value reductions. The frequency and value of such errors is unknown; consequently, the bill's fiscal cost cannot be determined.
The bill would take effect immediately upon enactment, assuming it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2019.
Local Government Impact
Passage of the bill would expand the grounds permitted in an error correction motion to include unequal appraisal. As a result, taxable property values and the related ad valorem tax revenue for units of local government could be reduced.