BILL ANALYSIS

Senate Research Center	H.B. 4809
89R22969 CS-F	By: Meyer (West)
	Local Government
	5/18/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Under current law, Texas permits a taxing unit to exempt from property taxation part or all of the assessed value of property designated as a historic site. However, the bill author has informed the committee that the appraisals of such property for property tax purposes do not reflect the significant restrictions placed on these properties due to their historic designation and that such restrictions substantially reduce a historic property's development potential and, therefore, its market value. The bill author has further informed the committee that current appraisal practices often assign land values to historic properties comparable to those of unrestricted neighboring parcels, potentially resulting in disproportionate tax burdens. H.B. 4809 seeks to ensure that appraisals of historic sites for property tax purposes reflect the real-world effect of historic preservation restrictions on market value by entitling a property owner to protest certain determinations relating to the appraised value of a structure or archaeological site that qualifies for a historic or archaeological site property tax exemption and the land necessary to access the structure or site.

H.B. 4809 amends current law relating to the authority of an owner of property that qualifies for an exemption as a historic or archaeological site to protest the allocation of the appraised value of the property between the land and the improvements to the land.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.24, Tax Code, by adding Subsection (c), as follows:

(c) Authorizes the owner of property that qualifies for an exemption as a historic or archaeological site, for purposes of a structure or archeological site and land subject to an exemption under Section 11.24 (Historic Sites), to protest the appraised value of the structure or archeological site and the appraised value of the land separately. Authorizes a property owner to protest the allocation of appraised value between the structure or archeological site and the land.

SECTION 2. Amends Section 41.41(a), Tax Code, as effective until January 1, 2027, as follows:

(a) Provides that a property owner is entitled to protest before the appraisal review board certain actions, including a determination of the appraised value of a structure or archaeological site that qualifies for an exemption under Section 11.24, the appraised value of the land necessary to access the structure or site, and the allocation of the appraised value between the structure or site and the land. Makes nonsubstantive changes.

SECTION 3. Amends Section 41.41(a), Tax Code, as effective January 1, 2027, as follows:

(a) Provides that a property owner is entitled to protest before the appraisal review board certain actions, including a determination of the appraised value of a structure or archaeological site that qualifies for an exemption under Section 11.24, the appraised value of the land necessary to access the structure or site, and the allocation of the appraised value between the structure or site and the land. Makes nonsubstantive changes.

SECTION 4. Makes application of this Act prospective.

SECTION 5. Effective date: upon passage or September 1, 2025.