BILL ANALYSIS

S.B. 2452

By: Hancock

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that current law prohibits the chief appraiser of an appraisal district from having their compensation linked to an increase in the total market, appraised, or taxable value of local property. However, the bill sponsor has informed the committee that the law is not specific about incentives that relate to factors that could lead to an increase in district property values, potentially allowing incentives in their contracts that encourage them to have appraisal values come within a certain percentage of the Property Value Study or other provisions that encourage appraisal values to be kept high. S.B. 2452 seeks to close this apparent loophole in the spirit of the compensation prohibition and encourage chief appraisers to be neutral in their evaluation of residential and commercial property by clarifying that no portion of a chief appraiser's compensation may be tied to any expectation of an increase in property values.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

S.B. 2452 amends the Tax Code to replace the prohibition against a chief appraiser's compensation being directly or indirectly linked to an increase in the total market, appraised, or taxable value of the property in the appraisal district with a provision establishing that no portion of the chief appraiser's compensation may be directly or indirectly linked to the expectation of an increase in the total market, appraised, or taxable value of such property.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.