Property appraisal is one of the elements that determine tax liability for real property in Texas. However, the appraisal process and local taxing-jurisdictions’ budget processes have become increasingly convoluted and difficult for property owners to understand.
In addition, many commercial and residential property owners believe the processes to appraise property and protest appraisals are not transparent, fair, or uniform across central appraisal districts (CADs). Recent public comment has demonstrated a lack of understanding of CADs’ role, leading many property owners to believe CADs either work for or collude with local taxing jurisdictions. .
What does this mean for the real estate industry?
A transparent and improved appraisal process for commercial and residential property means a more stable and reliable real estate market.
The Texas REALTOR® position
Our association supports:
- More state oversight of central appraisal districts and appraisal review boards;
- The repeal of the “estimated property taxes” statement from the appraisal notice of value; and
- Allowing for expedited discovery in appraisal value lawsuits.
Our association opposes:
- The creation of government programs that will require property owners to disclose the sales price of real property purchases;
- The creation of a new financial penalty on property owners who do not divulge the sales price of a real estate transaction to the government; and
- Any changes to the “equal and uniform” appraisal laws, to ensure property owners are treated fairly during the ad valorem appraisal process
- The election of chief appraisers and appraisal review board (ARB) members.
Several interim hearings were held to address many of the issues property owners in Texas have about the appraisal process. Many reforms in the appraisal process will ensure property owners have more trust in the appraisal process.
Texans’ property tax bills are skyrocketing, and the state is looking at ways to provide relief. The Senate Select Committee on Property Tax Relief and Reform continued to hold public hearings across the state this year to hear from Texans about this critical issue.
The select committee heard many potential solutions, including increasing the state’s share of public education funding, lowering the rollback rate, requiring an automatic election if a taxing entity exceeds the rollback rate, lowering the appraisal cap on residential homesteads, and expanding the appraisal cap to all real property.