Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB1533 by Button (Relating to the system for appraising property for ad valorem tax purposes.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB1533, As Engrossed: a negative impact of ($770,000) through the biennium ending August 31, 2027.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($385,000)
2027
($385,000)
2028
($385,000)
2029
($385,000)
2030
($385,000)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2025
2026
($385,000)
4.0
2027
($385,000)
4.0
2028
($385,000)
4.0
2029
($385,000)
4.0
2030
($385,000)
4.0
Fiscal Analysis
The bill would require a notice regarding property not on the appraisal roll in the preceding year due to omission be sent by certified mail.
The bill would remove the requirement that a designation of agent form sent electronically contain the internet protocol address of the computer the person used to complete the form.
The bill would require at least one trainer for each appraisal review board (ARB) member training course be a taxpayer representative. The bill would provide trainer qualification criteria.
The bill would require an appraisal district located in a county with a population of 120,000 or more to maintain an Internet website and post the district's appraisal records. The bill requires the website to be continuously updated to include any change in the appraised value of property.
The bill would reduce the notice a property owner is required to give to attend a protest meeting via teleconference or videoconference from the 10th to the 5th day before the hearing date, if the property owner has not designated an agent. If the property owner has designated an agent, they must notify the ARB that with will attend a protest meeting via teleconference or videoconference no later than 10 days before the hearing. The bill would further require the ARB to notify a property owner of its decision to dismiss a protest on jurisdictional grounds by written order and to state in the order the grounds for its determination. The bill increases the time required for the ARB to give notice of a good cause hearing for issuance of a subpoena from 5 to 15 days before the hearing date.
The bill would allow a person leasing property who is contractually obligated to reimburse the property owner for property taxes to file an appeal of an ARB determination of a protest on the appraised or market value of the property through binding arbitration under certain circumstances. The Comptroller must deliver a copy of any notice relating to an appeal to both the property owner and the person appealing.
The bill would add the district court cannot order discovery unless the discovery is requested by a party to the appeal. It cannot impose deadlines for discovery related to an expert witness, including deadlines for designating an expert witness, that fall before the deadlines specified by the Texas Rules of Civil Procedure or otherwise accelerate discovery related to an expert witness, unless agreed to by the parties.
Methodology
The Comptroller's office anticipates administrative costs associated with implementing the provisions of the bill. The administrative cost estimate includes the salary and benefit costs for four Program Specialist IIIs, as well as the expected costs for travel and professional services. The FTEs would assist with the additional requests for regular and limited binding arbitration and the anticipated appeals, since this bill would expand who and the reasons for which a property owner may file for a binding arbitration. The agency cost estimate also includes an annual contract cost of $50,000 to attract a bid from a taxpayer representative who meets the criteria of the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.