Appraisal Reforms Taking Effect in the New Year
This week, Governor Rick Perry issued a press release about several new laws that take effect today, January 1, 2010, which relate to important reforms to the appraisal process that will benefit property taxpayers. There were four bills in particular that were passed last legislative session as well as two measures passed by the voters during the last constitutional amendment election in November that Governor Perry highlights in his press release. Below is an overview of each of these efforts to improve the appraisal process.
Governor Perry discusses House Bill 8, House Bill 3612 (both by Representative Otto) and Senate Bill 771 by Senator Williams. All of these bills will improve the appraisal process and include provisions that impose limits on what is considered a comparable sale for appraisal purposes. Additionally, these bills create an expedited arbitration process and require substantial evidence to increase an appraisal after a successful appeal. Finally, these changes will improve the fairness and accuracy of the appraisal process and increase the oversight of appraisal districts to ensure they are following uniform appraisal practices and procedures.
Governor Perry also mentions House Bill 1038, which I authored, to ensure that appraisers consider all comparable properties when appraising a home, including ones that have been recently sold at foreclosure or have decreased in value. HB 1038 is one more solution for providing some property tax relief by prohibiting appraisal districts from overlooking foreclosed properties.
Last November, voters approved Proposition 2, which will ensure that residential property is appraised only based on its use as a homestead rather than on a hypothetical alternate use. Voters also passed Proposition 3, which will allow the Legislature to adopt uniform statewide appraisal standards in the future. Property tax appraisal practices and procedures vary widely across the state. A property located in one county is sometimes appraised differently than a similar property located elsewhere in the state. Proposition 3 will allow the State to create a standard appraisal method for appraisal districts to follow.
The aforementioned measures will provide greater protection for property owners by improving transparency and fairness to the appraisal process. However, there is still much more that we can do. Improving the appraisal process to benefit taxpayers continues to be a priority for me and I look forward to focusing on this issue again next legislative session.
Ken Paxton
State Representative, District 70